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Transcript of Nando's IM Term Paper
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Submitted To:
Husna Ara
Lecturer
Department of Business Administration
East West University
Submitted By:
Date of Submission:November 22, 2014
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Fozley Rabbi
2010-3-10-003
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Sabbir Ahmed
2011-2-10-
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F
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ACKNOWLEDGEMENT
We would like to express our gratitude to our honourable teacher Husna Ara, Lecturer of East West
University. Her effiencicy, honesty, kindness and helping behaviour made it possibe to complete the
assignment on time.. Really a big thanks for giving to choose a topic which made us more obidient
and lively to complete the task in a proper or right way. We are really geatful for the instruction she
gave us on every steps.
Special thanks to Md. Azmat Ali, account manager of NANDOS, Tanjim Hossain Musa, Sr.
Sales Executive. for their cooperation during data collection and prviding information with us to
complete this task. Special thanks to all of our friends who help to do this task.
Thanks to every member of the group to work hard to complete the task in time and perfectly.
This term paper was possible to complete because of the blessings of Almighty Allah and our
parents. So, a big thanks goes to them.
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Table of content
Contents Page no.
1.
EXECUTIVE SUMMARY 6
2. INTRODUCTION 7-12
3. SITUATION ANALYSIS 13-16
A. Political & legal environment 13-14
B. Economic environment 14-15
C. Social & cultural environment 15-15
D. Technological environment 15-16
4. THE MARKETING MIX 17-18
A. Product 17
B. Price 17
C. Place 17
D. Promotion 18
5. SWOT ANALYSIS 19-20
6. CONTRASTS 21
7.
RECOMMENDATION 22
8. BIBILIOGRAPHY 23
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1. Executive Summary
NANDOSis a casual dining restaurant group originating from South Africa with a Portuguese
theme. They are well known for their flame grilled peri peri chicken. NANDOS has been
running in Bangladesh since 2007. MGH Group brought NANDOS to Bangladesh in the late2007, and they have been faring well ever since. All of the outlets in Bangladesh sell halal foods.
Currently it is operated in the prominent locations of Dhaka.
As a part of our International Marketing coursework, we were assigned to evaluate the marketing
strategies of NANDOSRestaurants, both in Bangladesh and South Africa. To do that we have
visited there several times and talked to the authority of NANDOS. We tried to evaluate their
overall performance and figured out the gaps in between the two countries strategies.
The result showed that the customers and employees of NANDOSare satisfied, however they
are not completely satisfied at all levels. There are some lacking in the overall performance
which actually arises few gaps such as customer gap and few provider gaps. We have also
comprehended that the management can improve their overall performance through some
improvement in their core strategies learned from RSA.
In order to improve their current performance and satisfy their customers at all levels we have
come with some recommendations at the end of this report about how they can improve their
performance in terms of International Marketing.
We hopeNANDOSovercomes these obstacles, and we wish them all the best for the future.
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An Overview
One of South Africas great success stories in Portuguese chicken chain NANDOS, started off
with a single store in Johannesburgs southern suburbs and now operates in Asia, Europe, the
UK, and the Middle East and across Africa up to Nigeria.
Established in 1987, NANDOSis one of the biggest and most popular brands to emerge from
South Africa, and has spread across the world to operate in 36 countries on five continents. Now
it has 850 branches all over the world.
Because of the quality serviceNANDOShas become the pioneer food chain all over the world.
They become able to prove their good service to the consumer and take a good reputation all
over the world. It's also so popular for the Peri-Peri chicken. People who like the spicy food they
always go for NANDOS. Actually, NANDOS grow on the concept on the past days.
NANDOS specializes in chicken dishes with either lemon or herb, medium, hot or extra hot
Peri-Peri marinades (properly known as Galinha Africana). In some countries, NANDOShas
other flavor options like mango and lime or Mediterranean.
During the 1987 when Robert Brozin and Fernando Duarte bought a restaurant called
Chickenland in Rosettenville, southern Johannesburg NANDOS started its journey. They
renamed the restaurant NANDOS after Duarte. The restaurant incorporated influences from
former Portuguese colonists from Mozambique, many of whom had settled on the south-eastern
side of Johannesburg, after their homeland's independence in 1975.
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NANDOSin Bangladesh
The world famous South African NANDOS has been running in Bangladesh since 2007. It
was launched in Dhaka as the first franchise obtained by MGH Restaurants Private Limited. The
first branch ofNANDOSwas launched in Dhanmondi. Later on another branch was launched in
Gulsan in the late 2008.
In Bangladesh NANDOSprovides halal chicken. The aim of the NANDOSBangladesh is to
provide halal chicken in peri peri taste which is originated in South Africa. The management of
the NANDOSBangladesh is committed to provide the best service to their customer with an
added extra value so that the customer can improve their life style and develop their food habit in
a different Portuguese way.
NANDOShas a target group with an age limit of 17 to 45. As NANDOSis currently located
only in Dhaka city their main customers are all from Metropolitan city. Many types of people
come to NANDOS to enjoy their delicious food like- young people from high schools and
university students visit here with their friends then people comes with their family members.
They offer different exclusive service offerings in different period of time to increase their
service value. Additionally, several of their South African manufactured sauces available in the
general market are supervised Halal by authorities in South Africa
Offered services
Appetizers (they spell appetizers that way)
The menu features such items as five wings, chicken levers with Portuguese roll, Spicy Mixed
Olives and Corn-on-the-cob. All items on this menu section are delicious and didnt prove to be
too much food. People want appetizers that give them a glimpse of what is to come and wets
their appetite. They dont want to buy full and be disappointed that why they spend money on a
main course as well.
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Chillin Drinks
To compensate the hot and spicy food they also offers special drinks. The Soft Drinks section
features Bottomless soft drinks, Fresh Apple Juice, Freshly Squeezed Juice, Fresh Lemonade and
bottled water. This drinks are for consumer of all ages.
Salads
The salad menu is brilliant in its simplicity. Anyone can choose the type of salad they want and
they can choose it with chicken added on it or not. Its truly that simple. The chicken that is
optional is a warm grilled chicken breast. The salads to choose from are Mediterranean and
Portuguese.
Sidelines
The sidelines selection is decent and they really are a lot of food for a side. One can easily put
two of them together and call it a meal. Options include Fries, Spicy Rice, Coleslaw, Peri
Wedges, and Grilled Vegetables etc.
Special offer for Occasions
In every special occasion NANDOSoffers special services. The very special of some of thoseare:
Mothers Day Special: a complementary drink for every mother.
12.12.12: on this special date NANDOSoffered a package in which one could have a special
combo worth tk. 2000 only at 1212tk only.
Iftar special: On this RamadanNANDOSis offering three special packages in lower price than
the regular price with a perfect combination to break the day long fast.
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1 Situation Analysis
A.political and legal environment
NANDOShave faced many political and legal constraints both in Bangladesh and
South Africa which are shown below:
In Bangladesh: As Bangladesh is a democratic country and it follows mixed economy
strategy so here facilities for international marketing is easier. Government of Bangladesh
encourages international trade for growing up the GDP. After the liberation governments
of Bangladesh to encourage the IB reduces the tariff charge for several times. But on the
contrary of recent situation of BangladeshNANDOSfacing some great problem.
Government change:
There are two political parties in Bangladesh. On the perspective of Bangladesh
every companies need to have a good relationship with the parties otherwise the business
faces some problem. Though as a food restaurantNANDOSdoes not feel any kind of
problem because of the political parties. But it future they can have some because both of
the parties follows some rules and regulations. For international business both parties
support some particular countries soNANDOSmight have some problem.
Political instability:
For last few years all the business organizations are facing some problem because
of political instability in Bangladesh. In last few years there were lot of strikes came from
opposition party which hamper the sales ofNANDOS. Because in strike situation people
do not hangout and in those days the customer number ofNANDOSdecreases.
Legal restriction:
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For an international market there are a lot of legal restriction. AsNANDOS
maintain a food chain all over the world so they have to import their recipies from the
host country and while importing something they have to follow some rules and
regulation which increase their product cost. They have to follow the private sector act of
Bangladesh as well as the international company laws for Bangladesh which is slightly
difficult for them. AsNANDOSstart their business in Bangladesh as a franchisee
company so they have to follow the rules and regulation of Franchisee Company.
Vat:
In last budget of Bangladesh the government increase the vat on food for a food
restaurant. For that reasonNANDOSthey have to increase their vat on their foods which
are not easily taken by the customers. It turns out that the numbers of customers of
NANDOSdecreased.
For RSA:
Government:
In South Africa there are 13 political parties who competed in the election.
Though they now follow democracy but the flavor of oligarchy is still remaining in the
present rulling of party of South Africa. For a company it is really bad things to have a lot
of political parties because anyone of these parties can hamper international business. But
NANDOShave some facilities as being the host country.
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Advertisement:
In 2011NANDOSbroadcasted a global advertisement which showed some
thoughts which hampers the honor of a legendary person of Zinbabwe and from
Zimbabwe they got a threat that if they did not stop broadcasting the ad then Zimbabwe
would ban every product of RSA and cut off the relationship of two countries. Initially
they have to stop the ad which go against the legal law of international business.
Tax:
In 2014 in USA an article was being published where written that the present Owner ofNANDOSDick Einthoven did not pay the tax which went against law which could hamper the
situation ofNANDOSall over the world.
B. Economic environment
For Bangladesh
In Bangladesh the economic condition is very poor. Its a developing country and
its GDP is too low. The people of Bangladesh are too much cost conscious and they
always try to find out good quality product in a low price and have tendency of switching
products. by analyzing these issuesNANDOSprovide quality product with a reasonable
price which customers wants. Their pricing range is very moderate for the people of
Bangladesh.
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For RSA
Economic condition of Africa is very good. They are the second highest GDP
earner in the African nations. Though most of their country people are poor but
NANDOSselect their pricing by keeping the fact in head. Most importantly for the
target customers ofNANDOSthe price ofNANDOSfood is good.
C. Social and cultural environment
For Bangladesh
In Bangladesh the most important part is the religion soNANDOScooked and serve
their foods in halal way. They provide halal food in Bangladesh. In other Bengali occasions they
offer some excited offers buy 1 get 1 free in pahela baishkh, valentine day etc,
In Bangladesh female workers are not welcomed in corporate life which have a social
restriction thoughNANDOShave some female workers. In BD the power distance index is very
high. The relation between boss and subordinators are not good.
For South Africa
There are no restriction about religion. In RSA they also they celebrate the important
occasions with exciting offers. In RSA female workers are welcome in work andNANDOS
have lots of female workers in their outlets. They do not believe in power distance index. They
all maintain a good relationship with each other from top to bottom they enjoy their work
together.
D. Technological environment
For Bangladesh
Bangladesh is not a technologically high country. Here the technological advancement is
very slow. As a international marketerNANDOSfacing some data problem to operate their
organization because of low technological advancement.
For RSA
RSA is very much strong in technological environment than BD. From getting the
ingredients to customer feedback they are running business with best technological support.
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4. MARKETING MIX
4Ps of NANDOS
PRODUCT
As a food restaurant currently NANDOSis offering different peri peri chicken, grilled chicken
and garlic chicken. They are also offering supplementary benefits like parking facility, different
environment with traditional look, music, interior decoration, environment in front of the
restaurant, high level of services etc. They are also adding value by providing a proper delivery
service to their customer.
PRICING
Pricing is one of the most important factors for any kind of business. Price also shows the
quality. The pricing ofNANDOSis quite high.NANDOSalways try to keep their promises by
providing quality service to their customer. That is why they charge a little higher price. They are
providing the service comparatively at higher but price difference is not huge than the
competitors. There price range starts from 330(taka) to 1500(taka).There customers are upper
middle class people and they serve high quality foods so they have to charge this much.
PROMOTION
Promotion always plays a vital role in business. It not only gives the information but also
educates the consumers. NANDOS does its promotion through television, newspapers, Radio
and magazines participate in fairs related to foods and also conduct promotional activities from
time to time or some special discount rates offered during certain times for certain customers.
They usually use informative advertisement which can inform customer about their services.
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PLACE
CurrentlyNANDOSis providing their services in only Dhaka city. They have three branches;
two is at Gulshan and other is at Dhanmondi. They place their outlet at Gulshan and Dhanmondi
as they have a target group from upper middle class. They place their restaurant is such places
where people can go easily.
Comparison ofNANDOSbetween the host country and the home country:
Components of marketing
mix
Home country
(Bangladesh)
Host country (RSA)
1. product 1. In BangladeshNANDOSis offering
different varieties ofproducts at a lower price by
providing the best quality.Because in Bangladesh
price actually matters.
1. In RSANANDOSis
offering different varieties of
products at a higher price byproviding the best quality.
Because in RSA price doesntmatter. Product quality is the
first priority among most of
the US consumers.
2. price 2. The economic conditionof the people here is not too
good. So, whenever people
here goes toNANDOSthey buy one or two rather
than buying in a largevolume. Here, the prices of
the products are very lowbecause of the economic
condition of the people of
this country.
2. The economic condition ofthe people here is very high.
So, whenever people here
goes to NANDO S, theyusually buy in large volumes.
Here, the prices of theproducts are very high because
of the economic condition ofthe people of this country.
3. place 3.NANDOShas a poordistribution channel in
Bangladesh.
3. NNDOS RSA has a wide
distribution channel.
4. promotion 4.NANDOSBangladeshhas a very moderate
promotional activity.
4. In RSANANDOSuses
billboards, local news, media
and coverage, famouscelebrity models, distributionof samples, discounts and
raising public consciousness
for their promotional
activities.
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5. SWOT Analysis
Host Country Bangladesh
Strength:
NANDOS has a very wide range of products to offer.
The parent company of NANDOS has helped in establishing a strong supply and
distribution network.
NANDOS possesses a very strong brand image in the market.
The focus of NANDOS is going strong on Food segment.
The brand has innovative sales promotions tactics that spread across through Facebook
Operating more than 1000 outlets in 30 countries
Customer satisfaction with special products
Weakness:
Take a long time to serve the food
Too much customer oriented
Promotional activities only through Facebook
Lake of well qualified stuff
Opportunity:
Uprising food restaurant of Bangladesh To be the number one restaurant in Bangladesh
Threats:
Opening of new restaurants
Threat of new entrants of another world best food restaurant
Customers mindset is changeable
Its tough to get sustainable customer for NANDOSas it is a food restaurant.
Political instability causes decrease of sales.
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Home Country South Africa
Strength:
They Cost advantage Effective communication
High R&D
The customer of NANDOS shows the loyalty of their product. Strong brand equity
NANDOS gets a advantage in RSA as a home country though some part of the country
still run by oligarchy system
Weakness:
No variation in product category for home country
Opportunity:
Opportunity to increase the brand value.
Opening outlets in more other countries
Opening more outlets in RSA
Increase the number of distribution channel
Threats:
Shutdown threat because of oligarchy system
Problems created by ruling parties
Most of the people lives in the rural area who are very poor and they are unserved for
NANDOS
Threat of new entrants of international best food restaurants
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6. CONTRASTS
Marketing activities For Bangladesh For South Africa
Promotion Only through online portal Through online portal as wellas have some tvc.
Product variation Product variation is same Product variation is same
Cultural aspects Halal food being served All kind of food being served
Occasions In various Bengali and Islamicoccasions they offer different
types of discounts.
Occasional offers are beingprovided
Price of the product Quality product with moderateprice
Quality product with high price
Technological support In BD they dont get a goodsupport of technology
In RSA they get a goodtechnological support
opportunity Ratio of getting foods fromrestaurants is increasing
Its already been established
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7. RECOMMENDATION
Food serving time
NANDOS takes 20 minutes time to serve food to customer. They should be more productive
and efficient in this point. They should improve the timing to serve food.
Customer oriented
NANDOS management should be more customer oriented. They should design their service
according to customer expectation. They even can ask customer participation in their service
improvement process. Through taking interview from customer they can minimize their gap and
improve their service.
Informative activities
NANDOS can increase the experience of NANDOSby providing more physical evidence to
the customers. They can use more informative advertisement to attract a new customer pole. As
in international market they broadcasted some advertisement but in Bangladesh they mainly
communicate with their Facebook page. So they should go for other promotional activities like
as TV commercial, billboards etc.
Improve the parking system
Even though there are no major complaints about the parking space, but the inadequate parking
space does leave the customers quite disgruntled which cannot see in the other countries of the
world.
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Increase the number of qualified employees
In Bangladesh the employees of NANDOSare not that qualified. They are looking for stuffs in
low prices. Rather doing this they should go for qualified employees who can serve perfectly to
the customer queries.
Technological advancement
They should go for some high technical equipment while customer service through which they
can get the attraction of the customers and retain those customers for future
8. BIBILIOGRAPHY
Web links for theoretical support
http://www.nandos.com/
www.wikipedia.com
http://www.managementstudyguide.com/building-strong-brand-equity.htm
http://www.b2bmarketingblog.co.uk/strategies/10-ways-to-improve-your-brand-image/
http://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL10_0110.htm&locatio
n=all
http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy_2.htm
http://www.agmrc.org/business_development/operating_a_business/
http://www.marketing-made-simple.com/articles/
http://www.wikipedia.com/http://www.managementstudyguide.com/building-strong-brand-equity.htmhttp://www.b2bmarketingblog.co.uk/strategies/10-ways-to-improve-your-brand-image/http://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL10_0110.htm&location=allhttp://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL10_0110.htm&location=allhttp://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL10_0110.htm&location=allhttp://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL10_0110.htm&location=allhttp://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy_2.htmhttp://www.agmrc.org/business_development/operating_a_business/promotion/publicity-and-public-relations/http://www.marketing-made-simple.com/articles/push-pull-strategy.htm#.UU_GkhdTD0dhttp://www.marketing-made-simple.com/articles/push-pull-strategy.htm#.UU_GkhdTD0dhttp://www.agmrc.org/business_development/operating_a_business/promotion/publicity-and-public-relations/http://entrepreneurs.about.com/od/salesmarketing/a/pricingstrategy_2.htmhttp://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL10_0110.htm&location=allhttp://www.esmalloffice.com/SBR_template.cfm?DocNumber=PL10_0110.htm&location=allhttp://www.b2bmarketingblog.co.uk/strategies/10-ways-to-improve-your-brand-image/http://www.managementstudyguide.com/building-strong-brand-equity.htmhttp://www.wikipedia.com/