Nando's SWOT analysis

Analysis, Pages 4 (993 words)

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1. SWOT analysis of Nadon
a) Strength
1. Renowned Global chain with over 750 restaurants in over 40 countries 2. Nandos’ Flame Grilled Peri Peri Chicken is believed to be unique and the best in the world. Can choose spicy level. 3. Nando’s chicken are considered as healthy along with the superior taste as well 4. Franchisee model has allowed Nando’s to expand rapidly in global markets 5. Reasonable pricing for quality product

b) Weakness
1. Lack of marketing activities and since that a low local recognition. Low brand visibility 2.

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Absolute focus on Chicken reduces the inflow of old customer. Weak R&D. 3. Parent company IRL’s financial trouble reduces the expansion plans of Nando’s across Indian Market

c) Opportunity
1. Innovate with new items and market them as well along with Chicken 2. Hotel Industry is forecasted to grow in double digit figures, which presents a significant opportunity to Nandos 3. Online Market

d) Threat
1. Intense competition from other international player in Singapore market. 2. Growth in number of players is more than the growth of the demand itself and it will lead to further competition and reduce overall profitability of the industry

Speaking of best grilled chicken in the world, Nando’s Peri-Peri chicken must be one of the strongest competitors.

After the company was founded in 1987, Nando’s has already operated 1000 outlets in 24 countries across 5 continents and contributed US$650 million of profit in 2012. With its global reputation and experience operating franchise in overseas, the company can easily copy and introduce their idea into Singapore market. To be believed the world’s best and unique grilled chicken dish, Nando’s signature dish Peri-Peri chicken is well recognized by its special variety of chili sauce including lemon and herb, Mango and Lime, medium, hot and extra hot.

All Nando's chicken is Red Tractor assured, having met high standards of food safety, animal welfare and environmental protection. This means the chicken is not only tasty, but also safe and healthy. Not only chicken dishes are popular in Nando’s, a variety of new food will be also frequently updated with burgers, pitas, salads, wings and wraps (espetada as example). Famous “Corn on the cob” is not only naturally tasty but also satisfied with a surprised low pricing. In a nutshell, Nando’s product is considered as healthy along with the superior taste and the reasonable pricing, which usually costs S$20-30 per meal per person, makes their product very much affordable to median-low income customer who contributes to the majority of the society.

Comparing the company’s scale of international network, however, the marketing activities are seemed not as strong as it should be in Singapore local market. According to a survey conducted by NUS students in 2013, the local recognition of branding of Nando’s is much lower than its general competitors including Aston Catering, TCC café. Some of the surveyor even thought Nando’s was a Mexico food brand that sells tacos. Also talking about Nando’s dishes, focusing on chicken as its only signature and lacking of innovation in production line will finally result in loss of interest from customer.

Even though efforts were put in for new product development, the outcome still remains doubtful in whether new signature can reach the current level where the chicken dishes are holding. Besides making chicken as the main course in only 4 choices – quarter, half, whole chicken and chicken breast, the Research and Development Department – R&D has surprisingly not contributed any new signature dishes among so many choices that are available – beef, fish or pork. The wear R&D performance will in the end lead to out-dated production line and customer’s expectation will not be satisfied which in terms of loss in business.

Nevertheless, it is never too late to change and get into the right direction. Innovation can be made among several of meat and fish; even the vegetable could be a great choice and turn into “Must-order” items for vegi-lovers. Make sure the menu is updated with new items in certain period and elimination of unsuccessful dishes which can help in saving unnecessary costs. As a result, the company will be able to attract new customer as well as maintain return business. What’s more, with the booming of online business and more advance technology, online booking will be definitely a new opportunity to step in. According to a new study from Nielsen, a leading global provider of information and insights into what consumers watch and buy, global consumers’ intent to buy food and beverages online increased 44 percent in two years, with more than one-quarter (26%) of global respondents reporting they planned to purchase food and beverage products by way of a device with Internet access, such as a computer, mobile phone or tablet, in the next three to six months. Hence, Online Delivery benefits both customer’s convenient experience and the online market share as well.

At the same time though, a lot of fast diners has already stepped into online markets like Pizza Hut, KFC, PastaMania and YOSHINOYA. Working years with local online food delivery platform, the competitors seem to have a stronger coverage and connectivity to the local online shoppers. Moreover, the growth in number of players in Singapore is more than the growth of the demand itself and it will lead to further competition and reduce overall profitability of the industry.

In a nutshell, Nando’s has a very strong branding and product value which will lead to profits only once the correct marketing approaches is proceeded. And the company must understand the importance of keeping their product innovated in order to keep up the new as well as return business. With the booming of online business, Nando’s now is able to channel their product to customer in a more convenient and favorable way. At the same time, the company needs to realize that the competition has never been easier to outrun those existed company that provided online delivery service since years ago.