Executive summary The following marketing plan outlines the basis for the introduction of a late night eatery which is based on the current eatery Nando‟s. The chain of late night eateries will be a part of the Nando‟s cooperation yet have a different name, target audience and marketing approach. The chain will be called „Nando‟s Express‟. It will be open at night and by using the wellknown reputation of Nando‟s it plans to carry on the supplying spicy Portuguese chicken to the UK. There will be 10 stores set up in the main student cities of the UK depending on the first year‟s sales/profits there will then be an extension of the company. Product definition Nando‟s Express is a chain of eateries based in the main cities in the U.K. They will be strategically located outside night clubs and leisure centres where there is a limited choice of late night eateries to lower the competition. Nando‟s Express will be open every day from 22:00 pm – 04.00am which differ from Nando‟s opening times. Nando‟s Express will satisfy the biological and physiological needs according to Maslow‟s hierarchy of needs (1943). As food is a basic survival need it will always be wanted. SMART objectives
To become the number 1. Late night eatery for the age group 18-24 by January 2016. To gain 25% of the late night eatery market in the UK by August 2016.
Possible opportunities The sample menu is limited this could become an opportunity by creating further options such as meal deals and pizzas and offering vegetarian and Halal alternatives. Loyalty cards could also be an incentive for customers to return. An example of a Nandoâ€&#x;s Express serviette.
An example of a loyalty card. 1. Current Situation Political factors
With the Government‟s introduction of the healthy eating campaign „change 4 life‟ launched in 2011/2012 the general public are more aware of the effect unhealthy foods and the importance of exercise. After the horse meat scandal the government may introduce new guidelines on food. This could create problems for an upcoming chain of late night eateries.
The changing exchange rates could affect the prices of exporting meats into the UK. This will have a major impact on the firms cost of capital and potentially the extent to which the business can grow and expand. With the double dip recession many people can no longer afford to eat out, this must be taken into consideration when pricing the products.
The horse meat scandal has changed social attitudes towards meat and where it has been produced. With this in mind using 100% British meat would be best.
Late night eateries particularly kebab shops hardly rely on technology. This could be changed by creating a ticketing service for Nando‟s Express where you know what food has been ordered.
Health and safety laws play a large part in the production of. Sharp objects are used and the cleanliness of them is a potential concern for a customer.
Climate change is becoming more obvious with weather which is ever changing. This will affect how customers travel and ultimately where they will eat. If Nando‟s Express‟s competitors deliver when there is bad weather, Nando‟s Express will obviously suffer. Suppliers
Leaflets/Flyers Interior Signs/Packaging Kitchen equipment Food suppliers
Competitors KFC “Did you know? We're the most popular chicken restaurant in the UK today.” This will be Nando‟s Express‟s main competition as it primarily serves chicken and a low value price. McDonald‟s “McDonald’s is the world’s largest chain of quick service restaurants, serving tens of millions of customers daily worldwide.” McDonald‟s is primarily a fast food chain aimed at families, this differs to Nando‟s Express as at Nando‟s Express has seating which enables its customers to enjoy the product.
Subway “Subway Eat Fresh” Subway is seen as a healthy alternative to fast food restaurants. By using celebrities such as Louis Smith an Olympic gymnast to endorse its products it is targeting a different market to Nando‟s Express.
The target audience for Nando‟s Express is young adults aged 18-24. Nando‟s Express secondary target audience would be middle aged men such as late night drivers such as taxi men. Nando‟s Express aim to serve busy people who do not have time to cook at home.
Internal factors The primary research collected used several different types of scales to collect the information shown. The majority of interviewees where female and aged 18-24, the primary target audience for Nando‟s Express. It was a highly focused group used. Product Is „The bundle of benefits offered by the Organization.‟ According to Jim Blythe (2006)
This shows that creating a Nando‟s Express which offered Kebab‟s and Chips would be the best option.
Price Price is the „consideration given by the customer for the product.‟ Blythe (2006)
By asking this question, you have directly asked your target audience how much they would consider paying. This must be taken into considering when pricing the products for Nando‟s Express.
Promotion Promotion is „The communications about the product which are aimed at the consumers.‟ Blythe (2006) In the research conducted the question “What type of advertising for a late night eatery would make you most aware?”
By using the right channel of communication you can attract the targeted audience; Nando‟s Express must take this into account when promoting the new stores. The answers show that posters and flyers would be the most effective. For example, having posters inside the night clubs it is located near to could be very effective.
Place Place is „the location where the exchange takes place.‟ Blythe (2006) The results show that 40% of interviewees would walk up to 200 meters to get food from a late night eatery. This shows that Nando‟s Express must be in close proximity to their target audience‟s whereabouts. This suggests that the best location for Nando‟s Express would be in wellknown areas which are populated by 18-24 year olds, such as outside student residences / leisure centres and night clubs.
Physical environment Physical environment includes „Advertising, Uniforms, Signboards, Logos‟ according to Blythe (2006) The answers show that the target audience of Nando‟s Express believe that they should have uniforms, signboards and logos.
People „The employees that customers come into contact with‟ are described as people in terms of marketing. The answers show a mixed results meaning that every customer is different and the employees at Nando‟s Express must understand this.
SWOT analysis In the SWOT analysis the strengths and weaknesses are based on internal information and the opportunities and threats external. The weaknesses can be turned into opportunities, for example the limited food choice for vegetarians could become an opportunity by creating a specific vegetarian menu.
Sales and profit trends by product According to Baines et al (2008) the product life cycle is a concept that believes “products move through a sequential, predetermined pattern of development.” Consumers perceptions will change implying marketing strategies will vary. For example when the product enters the stage of decline, Nando‟s Express may add new products such as meal deals / pizzas to add more interest to its product. Market size and trends The main trend in this market is food served quickly at a good value for money price. However Nando‟s Express has an advantage as it offers the option of different spice levels and is using the well-known reputation of Nando‟s to create a dynamic environment for its customers. Market share and trends own company Nando‟s Express will aim to gain 10% of the market share in this very competitive market after the first 6 months of the launch.
2. Marketing objectives Sales Sales value is a “key performance measure” according to Baines et al (2008) For example if Nando‟s Express was to measure the units sold of a certain product it could calculate the sales volume which has several benefits one being you can calculate how successful a certain product is and compare it to the same product in a different territory. Market share By measuring Nando‟s Express against the market leaders you can determine Nando‟s Express performance and it will see how competitive Nando‟s Express is in comparison. Brand awareness “Brand awareness is a very useful metric for determining whether your marketing communications activity is entering your customers consciousness more generally” Baines et al (2008) If more 18-24year old students can recognize Nando‟s Express the more likely they will become purchasers of it. New products There is an opportunity to create new products as the Nando‟s Express menu is very limited such as vegetarian and Halal meat alternatives. Profitability objectives
To achieve a 25% return on capital employed by August 2016. To achieve a 30% return on capital employed by August 2018.
Market share objectives
To gain 25% of the late night eatery market in the UK by August 2016.
To increase awareness of Nando‟s Express in the UK from 0% to 70% by January 2015.
Objectives for survival
To survive the double-dip and potential triple dip recession.
Objectives for growth
To increase the number of stores by 10% by January 2017
Objectives for branding
To make Nando‟s Express the preferred late night eatery in the UK for students aged 18 – 24 by January 2016.
3. Marketing strategies Ansoff matrix
By using the Ansoff Matrix it will help Nando‟s Express create a successful marketing strategy. It will help Nando‟s Express see where they are in the existing market and where they can penetrate the market further, this also makes Nando‟s Express proactive by continuously accessing what they can do to be better than the competition. Nando‟s Express is an example of an existing market with a new product. Branding “Branding is a method through which manufactures and retailers help customers to differentiate between the various offerings in the market. If this differentiation can be achieved and sustained, then a brand is considered to have a competitive advantage.” Baines et al (2008)It will be imperative that Nando‟s Express can create this differentiation between its competitors and of course Nando‟s so that customers‟ can learn and understand the difference and then invest in the products Nando‟s Express has to offer.
Price The pricing strategy used is “competition-based pricing‟‟ Blythe 2006 as this doesn‟t necessarily mean that Nando‟s Express will be cheaper than the competition as it wishes to be seen as in a higher market compared to its competitors. Positioning map
In relation to the competition Nando‟s Express should be seen as an alternative to the usual late night eateries as it offers different levels of spices and toppings. As positioning is core to strategy Nando‟s Express is placed higher in quality to its competition yet it is also higher in price as the customers are paying for better quality of food. PR approach Festinger‟s (1957) theory of cognitive dissonance is applicable to Nando‟s Express as there may be prejudice as just a „chicken shop‟ but by changing reputation and extending the menu it will change this prejudice. Overcoming of prejudice can be accomplished by having a
crafted promotion strategy. By measuring the effect of the PR it will show what type of PR is most effective for the targeted audience.
Marketing mix strategies Baines et al (2008) describes the use of “slice of life” technique to target an audience by using audiences of similar attributes in adverts and messages. If Nando‟s Express uses this technique it would attract the wanted target audience. Effective promotion follows the AIDA model as seen in Strong (1925) by creating an attention seeking promotional campaign it will show the potential customers how proactive Nando‟s Express is and what it has to offer.
The first part of the AIDA model is attention according to Strong (1925). By gaining the attention of the target audience of Nando‟s Express through promotion such as flyers and social media events it would lead them creating an interest in the product. By using celebrity endorsements alongside promotional tactics it will create a desire for the product. Once the potential customer has desire for Nando‟s Express it will act on this and by the product. Employees Using the current Nando‟s employee recruiting system would help lower costs and keep in line with the current staff members. The employees must understand the ethos of the eatery.
4. Marketing tactics To show the plans for the launch and events of Nandoâ€&#x;s Express a detailed Gantt chart has been created. All of the events have the same target audience â€“ students aged 18 -24.
5. Sales / profit forecasts and budgets The main aim is to have 25% of sales in the late night eatery market in 12 months this is shown in the graph below.
The jump in sales in the second month is expected due to the rigorous promotion tactics in place.
Budgets According to Baines et al (2008) the most recommended type of budget setting methodology is objective and task. â€œThis approach attempts to determine the resources required to achieve each marketing objective.â€? By breaking down this approach into sections for the marketing expenditure budget breakdown, marketing research budgets, sales force budgets and promotional budget it would be much more efficient for Nandoâ€&#x;s Express.
References Books Blythe (2006) Marketing Jim Blythe 2006 SAGE publications Baines et al (2008) Marketing Paul Baines Chris Fill Kelly Paige Oxford University Press, Incorporated, 14 Oct 2008 Festinger (1957) A theory of cognitive dissonance Leon Festinger Stanford University Press, 1962 Maslow (1943) "A Theory of Human Motivation". Abraham Maslow Strong (1925) Does Your Marketing Sell?: The Secret Of Effective Marketing Communications Ian Moore 27 Jan 2005 Websites http://www.nandos.co.uk/ http://www.kfc.co.uk/about-kfc/kfc-history http://www.mcdonalds.co.uk/ukhome/Aboutus/Development.html http://www.subway.co.uk/media/history.aspx http://www.ukcities.co.uk/populations/ Date accessed /04/05/2013