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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Rationale Summary:

In following task I have given a brief background of KFC and Nando's. After that I have explained marketing and used the factors involved in marketing to evaluate the marketing strategies of both Franchises. I the compared the Franchises by looking at searched as well as field research and came to a verdict of which franchises has a better marketing strategy.  The less successful franchise I have recommendations on how they can improve their marketing strategy.

Introduction:

The Local fast-food industry acquires more than R300-billion yearly, as indicated by Insight Survey, a South African-based statistical surveying organization. Statistics South Africa recorded pay from the \"takeaway and fast-food outlet\" area as R170-billion in 2015. The rate of grown-ups who purchase fast-food at any rate once every month expanded from 66% in 2009 to over 80% in 2015. One of the main contributors to a company's income is the way it is marketed as marketing is the way a business closes the gap between producer and consumer. Marketing is defined as the on-going activities to reach the target market and the methods the business utilises to connect and engage with its target market.( according to (Meyer and Strydom, 2016)). According to, https://www.magimpact.com, the following are the fundanmental basics to marketing: Offering a valuable product/service, Identifying your target audience, Making your products/services easily accessible, Finding cost-effective communication, Communicating well (and frequently), Delivering the products, services, and benefits you've promised and Repeating and expanding the process. The purpose of marketing is to convince the target market of the quality of the product or service the business offers, with the aim of selling these products and services and making a profit. I will be using this definition and purpose of marketing throughout my task when comparing two Fast Food Enterprises. The enterprises I will be looking at are Nando's and KFC. I will be evaluating their marketing efficiency, which competing is more successful and I will be giving recommendations.

Background

• Nando's

Nando's is a fast food enterprise that proudly serves quality chicken with a Portuguese/Mozambique flavour with their famous peri-peri sauces. Started in 1987 when Robert Brozin and Fernando Duarte, from Portugal but living in South Africa, visited a restaurant in  Rossetenville Johannesburg called Chickenland. They liked the food so much that they proposed to buy the restaurant, which they did for R354,000. Nando's is named after Fernando and his son( whose name is Nando). Nando's has five core values that embody their chicken: pride, passion, courage, integrity and family. These values are what drive them to achieve excellence whilst still creating an environment that everyone from every age group and ethnicity can enjoy. Nando's wasn't always the success story it was today. In some countries it struggled to get started. For example in the UK it struggled to find its foundation, this was until Robby Enthoven took on the struggling restaurants and came up with the idea of ordering at the till and then sitting down to wait for your food. This drew a lot of attention and the public loved this idea almost as much as the chicken. Want Nando's in your country, there are certain things that makes a country appealing to nando's:  A love for chicken and spicy foods, the whole Nando's experience/concept must be able to fit in with the lifestyle of the country, some countries just won't be a fit because og the way the food is made and the way the restaurants are designed. Looking at the the numbers it seems like Nando's is very lenient with their branching as they have 1051 restaurants in 24 countries. We might think that South Africa has the most branches, seeing as Nando's started here, but the United Kingdom has the most branches a whopping 315. Next is Australia with 264 and then only is South Africa with 259( still impressive as S.A is the smallest of the three countries). There are many things most of us don't know about Nando's. Like they have a black card which reads “As a valued friend of Nando's, the person named on this card is entitled to one starter, one combo meal, one dessert and one soft drink- along with up to four friends. Sorry no free alcoholic drinks.” These cards are usually given only to celebrities, but us common folk can also get one, all you have to do is provide evidence that you have visited every Nando's restaurant around the globe.  Seems easy enough. Another interesting fact is that people who work at Nando's are referred to as Nandocas.

• KFC

KFC was established by Harland Sanders in Corbin, Kentucky. Harland Sanders was born on a little farm in Henryville, Indiana, America, in 1890. Sanders wanted to cook and to create new formulas. One day he tried to blend eleven herbs and spices with wheat flour until he had a mystery formula for cooking chicken. Sanders opened the first establishment with a 142 seat restaurant , a motel, and a corner store. Amid the 1930s a picture that would get to be distinctly known all through the world started to form. First Sanders was named a honorary Kentucky Colonel by the state\'s senator; second, he built up a one of a kind, snappy strategy for spicing and pressure –frying chicken.

In 1950s another road was assembled, a large portion of individuals utilized the new road, so; Sander\'s clients diminished. In the long run, Sanders chose to close his restaurant then he invested the first franchise in 1952 and 105 USD with the mystery formula and the technique all through America. Colonel Sanders sold 5 penny for every piece chicken for copyright. Through the guarantee amongst Sanders and accomplice was marked by handshake. In 1963 Sanders\' formula was diversified to more than 600 outlets in the Unified States and Canada.

In 1964 Sanders sold KFC to a financial specialist group headed by John Y. Cocoa, Jr. what\'s more, Nashville agent John (Jack) Massey Colonel Sanders was the  KFC Goodwill Represetative for aiding and giving suggestions. After 16 January, 1969 KFC Enterprise was enlisted in the New York Stock Exchange and the number of chains grew to 3000.In 1971 Kentucky Browned Chicken converged with Connecticut-based Heublein Inc., a claim to fame sustenance and mixed refreshment Company. In 1982 R.J Reynolds Enterprises, Inc. converged with Heublein Inc. In this way, KFC was shared of R.J Reynolds Businesses, Inc. In 1986 Soda monster PepsiCo, Inc., purchased KFC for $840 million from RJR Nabisco, Inc. Reasons refered to were KFC\'s predominant execution and its 1980-85 increment in overall income and profit. In 1997 PepsiCo arranged to isolate KFC, Pizza Hut, and Taco Time to be another Partnership under name Tricon Worldwide Eateries, Inc which had 30,000 chains in 100 nations around the world.

Today KFC is widely known for its succulent chicken and the Colonel on the logo, but here are some facts you might not have known. In Japan KFC is the Christmas Supper. The first KFC location in Japan opened in 1970. Before long, organization authorities discovered that outsiders in the nation where Christmas isn\'t a national occasion had defaulted to fried chicken when they couldn\'t find turkey, and promotion executives chose to keep running with it. In 1974, KFC had a battle announcing \"Kurisumasu ni wa kentakkii!\" (Kentucky for Christmas!) that was so fruitful it propelled a national custom. Decades later, Japanese families arrange their containers of \"Christmas Chicken\" months ahead of time or face hours-long sits tight for an essence of quintessential \"Americanness.\" \"KFC\" doesn't stand for anything. Not since 1991. Fried chicken never quit being tasty, however in the mid \'90s as awareness healthier eating habits grew, the organization stressed that the \"fried\" in Kentucky Fried Chicken was costing them important business. So they settled on an advertising choice to eliminate the full name and get to be distinctly known only by the acronym.

Comparison

Nando's and marketing :

One way of analysing the marketing strategy of Nando's is to use a swot analysis. We do this by listing the Strengths, Weaknesses, Opportunities and Threats.

Strengths:

•A healthy menu as white meat is healthier than red meat, this attracts health conscious individuals. The food is also grilled which is healthier than fried foods.

•Fast expansion because of their successful franchising program.

•Nando's is a very popular brand is  recognised in many countries including Australia and the UK.

•Selling their famous Peri- Peri sauces directly to customers. Weaknesses:

•Not enough presence in small cities.

•Not enough vegetarian variations.

•The chicken dishes aren't diverse enough.

Opportunities:

•The opportunity to increase vegetarian dishes, like more salads and adding ‘fake chicken'(made from tofu)

•Expanding into smaller suburbs and countries as a healthier option. Threat:

•There are many competitors in the fast food chicken market.

•The risk of chicken related diseases like Avian influenza.

Marketing of KFC:

• Competitive advantage in the Marketing strategy of KFC:

Unique formula of fried chicken with secret mix of 11 herbs and spices has been the main impetus for KFC for 75 years. KFC has an expansive menu with numerous choices for clients and now even Vegan options have been included by KFC which has helped KFC in expanding its client base and am increase in sales. Presence in both developed and developing nations helps the organization in strategizing its future development plans as it is giving them an introduction and experience which is a basic component in the fast food industry\'s prosperity.

• Distribution strategy

With 18000 restaurants conveying finger licking scrumptious fast food over the world, KFC has developed itself and has solid tie-ups or vital organization with the inventory network partners is helping them in serving  clients more effectively. KFC dependably trusts in keeping its outlet in premium regions and in addition in shopping centers and shopping complexes. These KFC outlets can likewise do online requests. Thus, KFC covers both – on the web and disconnected requests.

• Mark value in the Promoting procedure of KFC

KFC is at present positioned 147 in the worldwide brand positioning table. Managed positive brand situating has helped the organization in making top of mind mindfulness (TOMA) . With its presentation of Veg-menu and localisation methodology, it is currently taking into account the left-out fragment which will help in its image building. Another element which unequivocally helps KFC is its nonstop marking activities with over the line and in addition below the line advertising strategies.

• Customer examination in the Promoting methodology of KFC

Client of KFC are the general population from various age groups, all who need to fulfill their taste buds with the finger licking flavorful chicken menu. A large portion of the clients can be characterized as youths or youthful grown-ups who can spend a base measure of cash to have a  feast.

1.a) In order for me to evaluate the marketing of a business I have to look at the Marketing mix. The marketing mix consists of the 4 P's: Product, Price, Promotion, Place (also called distribution). In order to compare the marketing strategies of Nando's and KFC I will compare their marketing Mixes.

KFC Nando's

Product Chicken wrapped in bread crumbs and then fried. KFC uses a range of 11 herbs and spices to make up their secrets formula that makes their chicken so unique. KFC also has vegaetarian options and sells deserts which are also ubique like their “Krushers”. These are sold in many take-away branches globally. Although we classify Nandos in the quick easygoing eating industry, it arranges its system towards a casual eatery climate with an extraordinary outline in each new branch. The primary course served incorporates chicken; nonetheless, the restaurant highlights their items with the flavors and the spices of their items. Clients have the choice to pick between different sorts of flavors, including their popular peri peri sauce.

Price KFC takes after both discretionary estimating and blended pricing. A buyer can purchase dishes from the essential menu and go for additional items (Discretionary estimating) and there are combo offers which include a blend of items. KFC has assortment of alternatives in every class, For e.g.: In Basin, there are menus with 8pcs, 12pcs and furthermore 12pcs assortment bucket(Hot and Firm Unique Formula and Chicken fingers). Prices range from R10 to R100 plus(for buckets) Regarding price, Nandos is very moderate. The main chicken course goes from R60 to R150. The price varies from country to country according to the currency strength and availability of resources. They offer set suppers at more reasonable costs keeping in mind the end goal to allure clients to spend less for more.

Promotion KFC does promotions by offering additional items to the current menu,  coupons, Shirts, Kids feast and so forth. KFC advances its items through LCD shows kept inside its outlets which advances their items and encourages desire among customers.

Regarding their promotion stategy, Nandos utilizes a considerable measure of online apparatuses to position themselves in the computerized circle. They use Marketing on Facebook, Instagram and Twitter (where they have more than 3000 followers) with occasional offers and prmotions. They also strive in giving their clients a one of a kind experience with each visit. In rundown, they separate themselves from contenders by advancing brand character.

Place(Distribution) KFC at first opened its outlets in metros and Level I urban communities, now it has step by step moved to Level II urban communities where the purchasing force is one of quick urbanization. KFC has its outlets in all significant urban areas and has surpassed Pizza Hut in Brisk administration restaurants.

As previously mentioned Nando's has expanded into 24 different countries. Before opening a new branch they analyse the populace, exposure and neighbourhood to decide whether it will be profitable to open a new branch there or not.  Although Nando's is a mostly sit in fast food franchise, there are several branches that have take-away windows.

1.b) Analyses of the Marketting mixes

Product

We can see that both KFC and Nando's have their own unique product with its own unique flavour. Bothe KFC and Nando's sell chicken, but this is where the similarities stop. KFC sells fried chicken whereas Nando's sells grilled chicken. KFC restaurants are mainly used for the purpose of ordering food and taking It home, whereas Nando's focusses on creating an environment where customers will want to finish and enjoy their food.

Price

As the above table proves, KFC is more for the affordability of the lower class( but also middle and upper class) whereas Nando's accommodates for the middle and upper class. KFC has specialised in cheaper foods with their R10 and R20 menu which makes it very affordable for the lower income customers.  KFC also has regular promotions with reduced prices.

Promotion

In this Category Nando's and KFC have totally different approaches. I will explain this by using an advertisement from both franchises.

   

As we can see in the above examples KFC focusses on their product information and appearance. They make their product as delicious as possible and give a lot of information regarding the price, playing here and their strength as a desire by low income groups. Nando's on the other hand uses comedy to attract its audiences, but no information is given about the product.

Place/Distribution

This is where KFC and Nando's is similar in terms of the type of areas they are established in. Both franchises can be found in low to high income areas, but Nando's is more common in the latter. The big difference is that Nando's is a locally grown franchises which is spreading acroos the globe, whereas KFC is and International franchise which has spread into South Africa. This gives KFC an advantage internationally as it is an established brand, Nando's is still emerging. But in south Africa the competition is equal.

Field Reserch

In order to further compare the marketing of Nando's and KFC I made a questionnaire wich I handed out to several student in order to get a unbiased answer to the question of who does Marketing beter KFC or Nando's?(see index for Questionaire position)

One of my questions was if the person knew what the colour of the logo was and what image is used. Not one Person could give a clear indication of what colour the Nando's logo was and many asked what the image actually could be, whereas all the people I questioned knew what colour the KFC logo is and what image is used. This is an important question as your business's logo is the outward representation of the business and is how it will be recognised. If consumers cannot recognise your business they cannot become customers. 80% of the people said that comedy is an important aspect in marketing and 60% included that presentation is just as important. 80% said that where in favour of Nando's as the best advertiser and 20% where in favour of KFC.

My Verdict

Looking at the information I have gathered through extensive research I conclude that KFC is the better Marketer. The reason being that KFC's Advertisements contain information, are presented well and cause the desire in the consumer to purchase the product, whereas Nandos's marketing is only humorous. Another factor to take into consideration is the Marketing mix. KFC has a lot of experience in this area and the amount of branches worldwide supports my idea that KFC is a specialist in highlighting its target market and luring consumers in order to get the maximum profits.

Recommendations to Nando's

Nando's has already succeeded in grabbing the attention of the consumer, but there are a few areas where they can improve, namely:

• Information: Nando's should add more information into their marketing regarding the price of their products and the locations of their branches.

• Presentation: yes Nando's grabs attention, but know they have to add their product into their marketing. This can be done by adding pictures of the food so consumers relate the pleasant felling of laughter to their food.

• Lastly Nando's should have more promos. Consumers are always looking for the cheapest option. If Nando's markets more promos mit will attract more consumers who are looking for the best price.

Conclusion

In conclusion. In order for a business to have a successful marketing strategy it must grab the consumer's attention, but also have eth relevant information on the product so the consumer will know where, how and when they can buy the product.

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