Nando’s Case Study: A Restaurant With Excellent Execution of Basic Marketing Principles (2024)

Nando’s Case Study: A Restaurant With Excellent Execution of Basic Marketing Principles (3)

Since its inception, the highly profitable Nando’s restaurant franchise has grown steadily since a modest beginning in South Africa back in 1987.

Today, the chain boasts over 1,000 outlets globally, trading in over 20 countries.

Strategic marketing and a risqué advertising approach, coupled with its unique Peri-Peri flavouring, have all played a big part in its meteoric rise.

This article will explore the impact of Nando’s marketing strategy.

The application and execution of this fundamental marketing principle is a tactic that Nando’s deploy very well.

Segmentation

Nando’s market segmentation focuses on two key variables:

  1. Demographic Segmentation: Generation Y (18 to 30-year-olds) is the primary focus for the restaurant chain with some overlap in Generation X (30+ years old) consumers.

The sub-demographic segmentation is aligned to target and capture consumers who meet this criterion:

  • Gender: Both male and female.
  • Income: Moderate to high.
  • Occupation: Graduates and young professionals/young family.
  • Social class: Middle to the upper class.

CSO figures also provide supporting evidence as to why this consumer segment is particularly attractive to Nando’s in Ireland.

Nando’s Case Study: A Restaurant With Excellent Execution of Basic Marketing Principles (4)

The average annual earnings for the market segment is highly attractive considering the life cycle earning potential in addition to a strong emotional loyalty/influence within the “young family” consumer profile.

Nando’s Case Study: A Restaurant With Excellent Execution of Basic Marketing Principles (2024)

FAQs

What marketing strategy does Nandos use? ›

Promotion: Regarding their promotion strategy, Nandos uses a lot of online tools to position themselves in the digital sphere. They use direct Marketing on Facebook, Instagram and Twitter (where they have a large following of over 3 million people) with seasonal offers and promotions.

What are the success factors of Nandos? ›

The combination of popularity, good food and loyal customers promoting their brand on various social media platforms, is certainly working well for Nando's, and they look set to grow into an even bigger success story, with many more entertaining advertising campaigns along the way too.

What are the 7 P's of Nandos? ›

7 P's of MARKETING:

7 p's of marketing include physical evidence, place, price, product, process, promotion and people.

How did Nandos become successful? ›

Once dubbed the Mini of the restaurant market, by then M&B marketing director Adam Martin, for being fun, affordable and classless, with its appeal to a wide social and ethnic demographic - Nando's strong connection with the young has perhaps been the key to setting it apart from rivals.

What is the main objective of Nandos? ›

Changing lives, together

But good business is about more than happy customers. It's as much about the communities we operate in – we work hard to spark their creativity and make a positive difference wherever we can. We believe in the people that work for us – our Nandocas – encouraging their growth.

What is Nandos unique selling point? ›

Nando's unique selling point is its flame-grilled peri-peri chicken, which is marinated for 24 hours and cooked to order.

What makes Nandos unique? ›

Each one of our restaurants has its own unique design, but they all have earthy textures and colours that remind us of our sunny Afro-Portuguese roots and feature original, local South African art and unique design touches that make it the perfect place to sit down and enjoy the best food you've ever tasted.

What is Nandos competitive advantage? ›

Nando's competitive advantage, as assessed through Barney's (1991) VRIO framework (Value, Rarity, Imitability, and Organization), becomes evident. Its financial strength empowers risk-taking in global expansion and unique marketing approaches.

What is Nandos weakness? ›

Nando's weaknesses; Nando's has limited options on offer for vegetarians( they focus on chicken ) which reduces customer inflow, customers in South Africa cannot order online.

What is the segmentation of Nandos? ›

Nando's focus is on generation Y whose ages are from 18-30 and generation X of age 30+ customers (Mhlanga, 2018). The gender of customers is both male and female furthermore their income level is medium to high. The customers of Nando's target are graduates, and their occupation is a young professional or young family.

What does Nando's stand for? ›

The restaurant was then named after Fernando himself, and his son, who is also called Nando. Early on Nando's adopted its mantra of not being just about the chicken, but chicken embodying the five core values of pride, passion, courage, integrity and family.

Who is Nandos owned by? ›

Who owns Nando's? South African businessman Dick Enthoven and his family purchased the Nando's restaurant group in 2014. Enthoven's son Robby had taken over running the restaurants in 1993 and was responsible for expanding the chain in the UK.

How profitable is Nandos? ›

Operating profit for the company returned to £17m for the first time since 2020 as margin on returning sales exceeded its fixed operating costs. Nando's has reported that revenues increased to £1.2bn for the year ending February 2023 with sales for the group in excess of pre-pandemic levels.

What makes Nandos chicken so good? ›

PERi-PERi, also known as the African Bird's Eye Chilli, is the key to our legendary, flame-grilled PERi-PERi chicken. It's grown in the African soil, so the magic starts from the ground up. It tastes amazing, but the benefits don't stop there: PERi-PERi chilli seeds are rich in Vitamins A, B, and C.

How does Nandos motivate employees? ›

On top of anniversary gifts, Nando's offers other perks at work such as free meals when employees are on shift and up to 40% off when they're not. These are easy ways a company can show that they care about their employees.

What is the market segmentation of Nandos? ›

Nando's focus is on generation Y whose ages are from 18-30 and generation X of age 30+ customers (Mhlanga, 2018). The gender of customers is both male and female furthermore their income level is medium to high. The customers of Nando's target are graduates, and their occupation is a young professional or young family.

What is Nando's competitive advantage? ›

Nando's competitive advantage, as assessed through Barney's (1991) VRIO framework (Value, Rarity, Imitability, and Organization), becomes evident. Its financial strength empowers risk-taking in global expansion and unique marketing approaches.

How does Nandos communicate with customers? ›

Whether it's across Facebook, X or Instagram, Nando's always delivers punchy and playful social media content. Pithy one-liners or jumping on the news trends where relevant and chancing a laugh with it, Nando's represent social media humour at its best.

What is the best marketing strategy to use? ›

11 best marketing strategies
  • Content marketing.
  • Social media marketing.
  • Search engine optimization (SEO)
  • Email marketing and newsletters.
  • Influencer marketing.
  • Earned media and PR.
  • Landing pages.
  • Advertising.
Aug 2, 2023

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