Nando's Singapore Restaurant: Brand Positioning Case Study Analysis

This case study analyzes the brand positioning strategies of Nando's Restaurant in Singapore. The report examines the restaurant's approach as a functional brand, its globalization efforts, brand equity, and communication strategies. It delves into the points of difference and parity between Nando's and its competitors, particularly KFC. The analysis highlights the use of the Peri-Peri sauce, the loyalty program, and the Firestarters community as key elements of Nando's brand building. The report assesses the strengths and weaknesses of each strategy, including the impact of the loyalty program and the reliance on the Firestarters community. It also evaluates the effectiveness of Nando's brand communication efforts, considering both traditional and digital media. The study concludes with recommendations for improving Nando's brand positioning and addressing potential challenges in the competitive Singaporean market, providing a comprehensive overview of Nando's brand management approach in the region.

NANDO’S 0
NANDO’S SINGAPORE
RESTAURANT
8/3/2018

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EXECUTIVE SUMMARY
This report focuses on the brand positioning strategies used by Nando’s Restaurant,
Singapore and includes proper assessment and evaluation of strengths and
weaknesses of their brand promotion strategies. In addition, to what extent they have
successful or not in implementing their brand promotion techniques and whether
these techniques have given them positive and favorable results or not. A detailed
analysis of this restaurant has been done via various sources and based on that this
report is prepared.

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Table of contents
Introduction..........................................................................................................................................3
Points of difference and Points of parity..........................................................................................4
Strategies for brand positioning Nando’s Singapore .....................................................................4
Strategy 1: Nando’s - A functional brand.....................................................................................5
Strategy 2: Globalization of brand Nando is divergence...........................................................6
Strategy 3: Brand equity................................................................................................................8
Strategy 4: Brand Communication................................................................................................9
Conclusion.........................................................................................................................................11
References........................................................................................................................................14

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Introduction
Nando’s is a famous fine dining restaurant with its branches all over the globe. This
restaurant has made its significant place in world’s best food chain restaurants. It
was founded in the year 1987 in Johannesburg, South Africa by Fernando Duarte
and Robert Brozin It operates around 1000 outlets in 30 countries with its
headquarter in Johannesburg, South Africa. Rooster of Barcelos is the logo of this
fine dining restaurant. The specialty of PERI-PERI sauce of this restaurant
distinguishes it from that of others and helps in making a special place in world’s
best food chain. In Singapore, it was first opened in the year 2010 on May 9. Later
on they expanded their branch in Singapore and it was recorded that in the year
2015 there were 11 outlets of Nando’s in Singapore. Today this restaurant is located
in five continents and it has established a well-known brand name in best fine dining
restaurant all over the world (Nando’s 2018).

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Points of difference and Points of parity
NANDO’S KFC
POINTS OF PARITY Serves chicken based dishes.
Targets same age group of people that lies between
18-35 years.
Same pricing.
Similar dine in facilities.
Global brand operates all over the world.
Use of fresh chicken.
POINTS OF
DIFFERENCE
Use Peri-Peri sauce.
Use Peri- meter to adjust
the taste of chilies from
mild to wild.
Enhances creativity of its
menu via Firestarters
community.
Use herbs and spices.
Do not use any meter to
adjust the taste.
No focus on creativity in its
menu.
Strategies for brand positioning Nando’s Singapore
Strategy 1: Nando’s - A functional brand
Functional brands are low involvement brands. They influence behavior pattern
through promotion, advertising, simplified choice, simplified associations through

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somatic markers and other peripheral cues like color, shape, size, texture, semantics
and habituation and incentivisation. These brands are used to satisfy functional
needs. Nando’s is a functional brand that uses promotion, advertising and many
more as a tool to influence the audience (Meisel, 2008).
In order to promote and manage a brand, advertising plays a significant role. It is a
non-personal form of communication can be performed by different sources of
media. It can be via television, magazine, newspaper, website and many more
(Guinn, 2018). Nando’s comes under top 30 hottest brands. All thanks to advertising.
Nando is a functional brand rather than symbolic brand that is low involvement
brands and in order to attract its customer’s uses behavior pattern through
promotion, advertising and many more. Nando’s has introduced a PERI- VILEGE
LOYALTY PROGRAMME in Singapore to attract its customers. What a customer
has to do is to eat chicken and collect chilly. With every visit, a customer will get a
chilly. Further, on their third, sixth, and ninth visit they will see real rewards
(Marketingweek, 2013). Nando has launched an advertising campaign in Singapore
via radio in order to promote loyalty card. The tagline used by Nando’s in order to
promote this campaign was ‘it only works in Nando’s’ (The Drum, 2013). These
loyalty cards help to give boost to the restaurant’s sale and attract potential
customers. Registered cardholders enjoy special privilege and get rewards. No
physical card is given to the customer instead of that they have to download Nando’s
app from Android store and get membership number. Nando’s uses various
promotion and advertising strategies to attract the public.
Strength: These loyalty cards attracts customer as they offer rewards to their loyal
and regular customer and at the same time they encourage the customers to visit

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their restaurant again. The membership given to its customer is lifetime. This helps in
enhancing sales and revenue of a restaurant (The Guardian, 2015).
Weakness: To claim Nando’s card reward one must be above the age of 18 years
and resident of Malaysia it can only be claimed if an individual’s card is registered in
case it is not then only chilies can be earned no rewards can be claimed. Therefore,
this may not sound good to a customer. One can get stamp only when he/she has
order food no stamp is given on when an individual buys a gift card
(Rateyournando’s, 2013). The membership card is non-transferable and employees
of Nando’s cannot participate in this programme. In addition, if a member wants to
terminate its membership all the remaining awards in membership account will get
forfeited.
Recommendation: Though loyalty cards provides customer with many benefits but
if they can give stamp on a gift card too then this will be an additional advantage and
can attract more customers positively. The restaurant should give focus to liberal its
terms and conditions of membership (Dahlan, et al., 2016).
Strategy 2: Globalization of brand Nando is divergence
Expanding and spreading of brand across the globe or all over the world refers to
globalization of brand. Globalization of brands helps in enhancing its goodwill and
brand image. For example: Coca-Cola, apple, McDonalds, and many more brands,
which operate not only in single country but in many other countries, also are truly
universally global brand. The key stages in brand globalization includes defining
brand equity, choosing a country, access to the market, choose brand architecture
and choosing of global campaign (Clifton, 2010).
Nando’s is a global, divergence and universal brand. It is not only operated in one
country but in many other countries also. It was first started in South Africa then
spread across the world. This Portuguese theme restaurant chain operates all over
the globe. Nando spreads its brand by keeping in mind the country, carefully
chooses brand architecture and its access to market. This restaurant adopts strategy
according to the culture and eating habits of the people of the country. Like all over

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the world it is famous for its chicken specialty but when it was opened in India due to
its vegetarian population the focus here was given for non-veg dishes as well. To
promote it is all over the globe Nando has taken assistance of Firestarters
community. Nando’s was able to develop its menu not only in Singapore but also all
over the world with creativity with the help of Firestarters community. This community
helps in knowing what a customer exactly wants from them, helps in understanding
and satisfying their customer better, and provides them with best customer service.
The new menu designed by Nando’s has a positive impact in increasing sales. The
dine in sale as well as take away sales of Singapore was increased of this
restaurant. In creating their new menu, they adopted the combination of fast food as
well as fast casual dining services. This community favorably helps the restaurant in
increasing brand awareness among the people (The Tab, 2017).
Strength: This move of the restaurant helps in developing menu of the restaurant
attractively all over the world and thereby helps in understanding their customer
better and provides them with best possible service so that they can give them a
positive feedback.
Weakness: They are dependent on Firestarters community for the development of
its menu. If any kind of differences takes place between them then they may face
repercussions.
Recommendation: Chances are there that Nando’s may face severe competition
from other food chain restaurants so they must be updated about their surroundings
and strategies of rivals prevailing in the market.
Strategy 3: Brand equity

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Brand equity refers to the value of a company that it generates from its product with
recognizable name. It can be created by making products more recognizable,
memorable superior in quality and reliable. Brand equity is further classified as firm
based brand equity (value of brands created by firm), consumer based brand equity
(value of brand created by consumers) and society based brand equity (value of
brand created by society).Firm based brand equity consider brand as financial asset
and also brand equity is measurable in terms of intangible assets (goodwill).
Consumer based brand equity measure the brand awareness, knowledge, loyalty,
and recognition (Aaker and Biel, 2013).
Nando’s has created its brand equity due to its logo Rooster of Barcelos and its
specialty in chicken dishes. In addition, use of Peri-Peri sauce in their dishes
enhances their brand equity. Nando’s focuses on maintaining its brand value and
equity with the use of PERI-PERI sauce. No other restaurant operating globally
makes use of this sauce in their chicken dishes. The PERI-PERI Sauce used by this
restaurant distinguishes it from that of others. They marinate their fresh chicken for
24 hours in this sauce and framed-in with customers choice of spice from the PERI-
meter. According to this meter, a customer can choose wild or mild taste accordingly.
This African bird’s eye chilies are grown in dark soil under the burning South African
sun. Nando’s uses only fresh chicken and not frozen chicken to make chicken-based
dishes. Nando’s has enhances it brand value by using Peri-Peri sauce which helps
to maintain loyalty of customers. Here it can be seen that Nando’s brand equity is in
use of Peri-Peri sauce along with Peri meter where taste of chilly can also be
adjusted. Consumer based brand equity is their loyalty and preference towards
Nando’s.

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Strength: Use of this special sauce is the main strength of this restaurant. As the
use of it distinguish Nando’s from other popular food chains and use of only fresh
chicken not frozen while preparing their dish attracts many customers.
Weakness: The restaurant serves mainly its specialty non-veg dishes in Singapore
outlet its vegetarian variety is quite limited.
Recommendation: They should also give focus on including various vegetarian
variety foods also so that it can attract vegetarian customers also (Jan-Benedict, et
al., 2013).
Strategy 4: Brand Communication
Brand communication involves transmission of information using various media
sources such as newspaper, magazine, social media, blogs, websites, television,
radio and many more. In order to gain consumer attention it is important to
communicate brand to others. The purpose of brand communication is to create
brand awareness, brand preference, and knowledge among customers. This
strategy needs to be plan in media neutral and multi- media integrated manner
(Jothi, Neelamalar, and Prasad, 2011). However if a brand is not communicated
properly then it can lead to serious repercussions also. Therefore, it is important to
communicate brand carefully by keeping several important things in mind like it may
not hurt the sentiments of any person or community. If a brand communication is
taking place through social media then following points need to keep in mind by the
promoter:
 Always double-check everything before posting anything online.
 Invest in better security measures if you want your brand to be communicated
with the help of social media.
 Use strong passwords and strong security system.
 Deploy elementary security measures two-factor authentication so that no one
can take undue advantage.
 In case if a mistake is done on your part then you should accept it and admit it
in front of public to maintain the image and goodwill of brand.

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 If any kind of rumor is spread due to the hacking of account by the hackers
then the respective organization should come forward and give an apt
justification for that.
One of the biggest examples of social media failures was In march 2017 a tweet
comes from the famous global food chain McDonald’s that was actually disgracing
the president of America Donald Trump. In the tweet, it was written that trump is
actually a disgusting president, his hands are tiny, and of course, they would love to
welcome President Barack Obama back. This incident clearly shows how risky
corporate accounts could be. It was not McDonald that was responsible for the tweet
rather it was the hacker who try to criticize the president of America by hacking the
account of MC Donald’s. From this, it can be said that this may have affected the
goodwill of the restaurant and lead to reputational damage (Entrepreneur, 2017).
For any kind of promotion, it is necessary to attract the audience. Any strategy can
be used in order to get attention of the audience. In order to create an identity
distinguishes from its other competitors Nando’s has launched a campaign in
Singapore to promote its restaurant by the way of public gathering for the festive
period. The title of the campaign was The Diversity Platter- uniting everyone with the
taste of Peri-Peri. The campaign had got its advertising done via class 95 FM and
encouraged their customers to post their pictures while enjoying diversity platter in
social media. This particular campaign took place in Singapore from 12 November to
3 January 2012. This campaign not only brought the people of Singapore together
but also gains publicity via social media. This particular campaign has encouraged
the social media sharing (Marketing, 2012). Until now, Nando’s has no such brand
communication failure strategy used in the past. However, to prevent it in future
Nando’s have to be careful about its brand communication strategy that need to be
communicate among the public after keeping proper security measures in mind.

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Strength: These kinds of campaigns promotes public gathering and encourages
unity and brother hood via this campaign. In addition, promote their brand through
social media by encouraging their customers to post their pictures and give reviews
(Digitaltrainingacademy, 2014).
Weakness: These kinds of campaign are not organized on regular basis by Nando’s
Singapore. In case if any kind of negative and unfavorable reviews are posted or
hackers may attack Nando’s site and may viral information any information which is
irrelevant and may damage the reputation of the restaurant then Nando’s may face
dire consequences of it.
Recommendation: In order to get the audience hook to Nando it is important to
organize such events and campaign on regular basis. If Nando’s will organize such
kinds of campaign with different themes then large number of audience will keep
hook to this restaurant (Schultz and Peltier, 2013). In addition the restaurant have to
keep in mind if they want to get promoted through social media then proper security
measures need to be taken by them and in case of any mistake committed by them
then they have to make public appearance to justify them rather than just covering
up the matter.
Conclusion
Nando’s has made its significant place in the field of fine dining restaurants in
Singapore. They came out with excellence. The marketing strategies adopted by this
restaurant to attract customers in Singapore affected positively towards the sale of
the restaurant and attracts a large number of customers towards them. This