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Nando: International Marketing Mix Strategy
Recently, marketing has proven to be a key function for the continuity and success of any business regardless of the size or scale of its operations. As a result, businesses that want to survive and thrive in todays market must focus most of their efforts on marketing their products both locally and internationally. Therefore, multinational businesses such as Nando need to apply the 4Ps, product, price place, and promotion, when entering and marketing their food products internationally. Proper application of marketing mix components will enable Nando to launch and sell its food products competitively in the international markets.
Product as one of the components of the market mix refers to goods or services that a business offers to existing and prospective customers. As a result, Nandos needs to have a deep understanding of the products to enable them to succeed in launching and selling in the new and existing international markets (Thabit and Raewf, 2018, 103). There are several aspects of a product that Nandos should endeavor to understand before entering into the market to assess whether it will meet the customers expectations.
Assessing the quality of the product helps Nandos to ascertain its ability to satisfy its customers needs in new and existing markets both locally and internationally. When Nandos establishes the right quality standards for products and services for its international markets, the organization should integrate them into the policy and organizational culture. Further, Nandos understands the nature of their products as perishable and thus does not offer their customers any warranties related to food products (Bhatti, and Hassan, 2019, 103). Therefore, Nandos expects customers to consume food products they buy from their restaurants immediately or store them under the necessary conditions (Bhatti, and Hassan, 2019, 104). Additionally, Nandos design of packaging the takeaway food products appeals to the customers as it communicates various messages such as boldness, simplicity, and nature.
Price is another significant component included in Nandos marketing mix strategy as it helps the organization to the monetary value that customers attach to their products or services. In addition, Nandos uses the pricing component to assess and forecast its profit and revenue margins in various international markets. Pricing strategy also determines the ease with which Nandos penetrates new international markets competitively (Bhatti, and Hassan, 2019, 102). Various aspects of pricing strategy such as offering discounts to customers help Nandos to retain its existing customers and attract new ones. In addition, providing customers and stakeholders with several payment methods such as cash, digital transfers, and credit cards, increases supply chain flexibility and efficiency and also enhances competitiveness in new and existing international markets.
Applying introductory prices to their goods and services is an essential strategy that helps Nandos succeed when selling its goods and services in new markets or launching new products in the existing markets. Moreover, Nandos can use penetrative pricing to increase the affordability of its products in new markets and build a substantial customer base (Bhatti, and Hassan, 2019, 103). After assessing the market, they want to penetrate, Nandos can apply an aggressive pricing strategy to enable them to beat the existing competition and remain competitive.
Place as a marketing mix component, plays a significant role in determining the appropriate locations where Nandos can locate its international ventures. Additionally, understanding the elements of place enables a business to know the suitable products and services to stock in various international markets (Wichmann, 2022, 506). While strategizing about the place, Nandos should consider factors such as ease of access by customers which will automatically lead to high sales volume. The place component also determines the available physical space that the business can use to expand its premises in the future. Currently, Nandos has over 1200 establishments globally to increase the accessibility of products and services to its customers (Wichmann, 2022, 503). In addition, Nandos also operates online retail stores which help customers easily locate restaurants near them and visit or place orders for home deliveries. These online retailing shops help Nandos to easily penetrate the global markets as they provide the company with real demographic data of customers tastes and preferences (Al Badi, K. 2018, 3). Nandos also has its website from where it manages and controls its orders and inventory in all its outlets.
To increase its market reach Nandos also relies on aggregators who stock and sell the restaurants products. This enables customers to access Nandos products even in areas without Nandos restaurants. In addition, Nandos has established several specialty stores located in prime areas where customers can purchase peri-peri chicken. Nandos has well-trained salespeople who help the company in availing the organizations products to B2C and B2B customers in most locations globally (Gelderblom, 2019, 27). Regarding transportation, Nandos should use cost-effective means of transport during material handling and order delivery. As a result, Nandos outsource transportation services from third parties and also uses its means of transport for inbound logistics. A cost-effective transportation ensures that Nandos provides quality products and services to its customers at affordable prices.
Promotion forms an important part of the entire Nandos marketing mix strategy. Nandos relies on promotion to spread information about its products and service to its existing and prospective customers in both local and international markets. Through promotion, customers become aware of new products, the location of new and existing ventures globally, and food prices at each premise. To effectively market their products to various customers, Nandos leverages sending personalized to customers through several communication channels such as emails. Additionally, Nandos also performs in-store promotion activities such as offering dishes at discounted prices and awarding customers loyalty points. Social media also plays a significant role in helping Nandos to promote its products and services to a wide range of customers (Wichmann et al., 2022, 504). Promotion of products and services through platforms such as Facebook, Twitter, Instagram, and TikTok can enable Nandos to reach more customers at low marketing costs. Nandos also pays for both prints (Khatab et al., 2019, 4847). TV and radio adverts to promote its products which ensures the successful launching and marketing of its products in local and international markets. To obtain optimum benefits of promotion, Nandos uses mixed communication media which integrates social media, print, and audio and visual platforms to create awareness of its products and reach all types of customers.
In conclusion, the proper application of the marketing mix strategy is essential in ensuring a successful launch and competitive continuity of business for Nandos. As a result, the marketing mix strategy helps Nandos to understand its products and services and assess its ability to meet the demands of its customers. Nandos should include pricing as a component of its marketing mix strategy to enable its customers to obtain products and services at affordable prices as well remain competitively profitable. Additionally, Nandos should use the component of place, to choose the appropriate locations where to locate their restaurants and products for easy access by customers. Lastly, the component of promotion plays a significant role in ensuring information about products and services reaches prospective, new, and existing customers globally.
Reference List
Al Badi, K.S. (2018) The impact of marketing mix on the competitive advantage of the SME sector in the al buraimi governorate in Oman, SAGE Open, 8(3), p. 215824401880083. Web.
Bhatti, H.S. and Hassan, T., 2019. The influence of customer experience on customer loyalty for the mobile telecommunication services. In CONF-IRM (p. 8).
Gelderblom, H., 2019. The role of public relations in building a South African brand in the UK (Doctoral dissertation, Cape Peninsula University of Technology).
Khatab, J.J., Esmaeel, E.S. and Othman, B., 2019. Dimensions of service marketing mix and its effects on customer satisfaction: a case study of international Kurdistan Bankin Erbil City-Iraq. TEST Engineering & Management, 4846, pp.4846-4855.
Thabit, T.H. and Raewf, M.B. (2018) The evaluation of Marketing Mix Elements: A case study, International Journal of Social Sciences & Educational Studies, 4(4), pp. 100109. Web.
Wichmann, J.R.K. et al. (2022) A global perspective on the marketing mix across time and space, International Journal of Research in Marketing, 39(2), pp. 502521. Web.
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