Nando's IM Term Paper

8/10/2019 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/

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