Comparison of Nandos and KRR

KRR is a rotisserie chicken breast restaurant that was founded in 1991 by country music singer Kenny Rogers and former Kentucky CEO John Y. Brown, Jr. More consumers are worried about the healthy lifestyle and foods thus Kenny Rogers used this possibility to set up the first restaurant that served healthy yet delicious foods in Coral Spring and coil, Florida, August of 1991.

As the first mover on the market, KRR had lengthened and franchised over 350 restaurants round the world, such as Middle Eastern countries, Canada, Parts of asia such as China, Philippines and Malaysia. Originally, the menu offered mainly on wood-fired rotisserie hen but down the road had introduced more variety such as turkey, sea food, ribs, home-made muffins, coat potatoes and vegetable salads.

Due to economical downturn in 1999, KRR proceeded to go into bankruptcy. Nathan's Famous Inc. had got it and initiated downsizing of these locations offered. With the words of "consumers see, we localize; consumers don't see, we globalize", KRR now performs entirely over and above the USA and operates mostly in Asia.

The franchise holder for KRR in Malaysia is Berjaya Roasters (M) Sdn. Bhd. In 1994, Berjaya Group Berhad got wholly owned subsidiary and contained. In 2008, Nathan's Famous divested itself and retailing it to Asian franchiser, Berjaya Group Malaysia. At the time, only one wall socket was still working in United States.

The franchise holder of KRR in Malaysia, Berjaya Roasters (M) Sdn. Bhd. operates 60 restaurants in Western world and East Malaysia. Besides that, the professional director of the company decides to expand 6 to 8 new stores in yr 2010.

The eyesight of restaurants is "Roasters means real food and high quality service that bridges the space between quick service restaurants and casual dining".

Nando's

Nando's is a Portuguse-style fowl restaurant that founded in 1987 and originating from South Africa that professional in flame-grilled chicken and hot sauces. Nando's went global and working in more than 30 countries such as Australia, Canada, Indonesia, Pakistan, Israel and Malaysia.

Nando's originally called as Nandie in 1975 after the name of the son of Fernado Duarte, a Portuguese residing in South Africa. He bought a restaurant in Rosettenville, Southern Johannesburg and collaborated with his friend naming it Chickenland in 1987. That was when the first Nando's restaurant came out.

Consumers love Nando's flame-grilled peri-peri poultry and the unique sauces as it is very scrumptious. Nando's offered variety of taste such as lemon and natural herb, mango and lime to fulfill the various needs and wishes of consumers. Peri-peri selections are minor, hot and extra hot peri-peri marinades.

Nando's ensures the demand is obviously available by tailoring their collection of location to suit the consumers. Currently, there are 32 shops in Malaysia situated in Selangor, Melaka, Johor Bahru, Pulau Pinang and Kuala Lumpur.

Their vision is "Our perspective is usually to be the premier specialist of chicken to our consumers with superior product & excellent services", while their objective is "To be the best string on the globe by supplying a world class fowl experience at affordable prices with regular quality, value and dedication to its customer base".

Segmentation and Goal Market

The styles for both companies that are "Peri-peri" and "Less unwanted fat. Less sodium. Less Calorie consumption" have determined their way of segmenting their market. Both have used a few sections to target. Both recognized their consumers' needs and serve them with differentiated food selection. Food is also thought as physiological needs relating to Maslow Hierarchy of Needs.

Nando's

Benefit. Nando's is concentrating on consumers who crave for delightful food. The varieties for consumers who desire for spiciness are extra hot peri-peri, hot peri-peri and gentle peri-peri. On the other hand, the non-spicy consumers are kept with lemon and natural remedies flavour. Besides that, the flame grilled chickens can be found for healthy concern consumers.

Geographic. Nando's retailers are positioned in over 20 countries worldwide including Australia, Malaysia and Canada.

KRR

Benefit. It focuses on targeting consumers who tend to be more health matter, where some consumers insist upon having balanced meals while parents are worried about their children's nourishment. KRR used this chance to serve balanced meals of roasted poultry with low calories, low body fat and less engine oil and other sidelines such as vegetable salad, super fruit salad, mashed potatoes and rice. KRR's idea is weaved on preparing wholesome, hearty and well-balanced meal which mirrors today's discerning consumers' changing frame of mind towards healthy eating lifestyle. KRR also offers daily food guide pyramid which improves their products stability (Appendix I).

Demographic. KRR meal is tailored to consumers of all ages. Senior citizens can enjoy the roasted hen without the fear of high calorie consumption and high cholesterols. Consumers of most income levels can enjoy a well-balanced meal by paying only RM14. 90 for 25 % roasted chicken meals with three sidelines (Appendix II)

Geographic. You'll find so many of KRR situated in 6 countries: Australia, Brunei Darussalam, Malaysia, Philippines and Singapore. It is very obvious they are more concentrated in Asian countries where there are already over 64 stores by themselves covering Western world and East Malaysia. In the metropolitan area of Klang Valley, there are 32 stores because the denseness of people is higher.

In-Store Atmosphere

Survey Methodology

In-store atmosphere observations were conducted at one of the retailers in Central Malaysia for every single company by two of our associates (Appendix III). This technique serves us the principal survey which allows us to have the immediate in-store experience. Through the observation the components of perception are put in to the test such as experience. In addition, we also possessed a simple analysis of the in-store atmosphere (Appendix IV). Schiffman et. al. talked about that consumers often judge the quality of products bottom part on intrinsic and extrinsic informational cues of the merchandise. Thus, the observation details below are a mixture of both, discussed in chorological order of your observation quest.

Nando's [Nando's Chickenland (M) Sdn. Bhd. (Mid Valley)]

Entry. At the moment we have appeared to the store, there was already a waitress status by the menu stand. Immediately, she offered a tight-lipped look and ushered us to our tables after confirmation of amount of person eating out. There aroma from the shut kitchen was not ventilated to the dining area.

Table. Whenever we were seated on the eating area, the menu is immediately distributed by the waitress. After that, we were left unattended for about five minutes even as we were selecting our alternatives of meal. A straightforward hands gesture to indicate the waitress to use order was recognized and the taking order process started out. There were not any suggestions of features. The drinks are dished up within 5 minutes while the meals is about ten minutes after ordering.

Environment. Although there was not any music during our review yet our past experience is vice versa. The lightings were warm and comfortable. The hard car seats are made of wood. The entire adornments were well combined with the "Peri-peri" concept. The environment is reasonably ventilated with reasonable temperature.

Exit. The time taken for monthly bill repayment services is less satisfied. A simply appreciation was given by the waiter. However, the waitress status by the menu stand didn't.

KRR [Berjaya Roasters (M) Sdn. Bhd. (Mid Valley)]

Entry. Despite hanging around in-line for ten minutes at the menu stand, a waitress retains taking order to lessen the line congestion while another ushered the consumers with their available seats. There's a muffin display area located beside the menu stand that offered appeal to us while ready. We didn't order at the stand as there's a two-seated stand available.

Table. The menu is given when we are sitting. We were kept a few momemts to choose our order until we indicate the waitress to consider order. Similarly, there have been no advice of highlights. However, the menu is rather attractive as it is covered in leather and the entire menu presentation is informative, providing food guide pyramid and diet information (Appendix V).

Environment. The lightings are too shiny and created a warmer environment (Appendix V). The encompassing walls are showing the images and album of Kenny Rogers.

Exit. The costs payment service is less satisfied as it takes much longer time. The accessibility and leave point are overcrowded with consumers queuing-up. We found it difficult to make an exit from the wall plug.

Store Image/Positioning

Both the restaurants located their store image diversely in conditions of product selection, interior and external design, accessories and fittings, lamps and prices.

Product selection can be further refine for food industry to theme selection. Nando's is using "Peri-peri" as their theme which is a term talking about the African bird's-eye chili. Thus, the amount of style and spiciness of the meals are emphasized. The degree includes gentle, hot or extra-hot peri-peri for those craving for spiciness whereas lemon and supplement are for others. On the other hand, KRR used the theme of "Less excessive fatLess sodiumLess energy" to appeal to healthy mindful consumers to take roasted hen in a far more healthy way.

Nando's decided to go with its origin country as the bottom of its interior and external design. It created an "African feel" throughout the store with wooden based furniture and African-like ornaments. Furthermore, the music broadcasted is also emitting African environment. Element of their standard is to wear a scarf which resembles the African shawl. On the other hand, KRR used the theme of its entrepreneur, Kenny Rogers. The inside mostly contains pictures and documents of him. Furthermore, the famously homemade muffins are shown at the entrance of the store to further entice consumers. The exhibiting at the entry is part of the fixtures and accessories location strategy as the visibility and aroma of luring foods generated higher use (Schiffman, Bednall, O'Cass, Paladino, Ward, & Kanuk, 2008).

Through our observations and direct experience, we discovered that KRR offers convenient and family-oriented environment whereas Nando's provide more variety for 3-4 individuals with "Makan-makan jointly, riang riang forever!". The seatings are the key comparability of comfortable environment: Nando's wooden seating and KRR's cushion seats. In conditions of family-oriented environment, KRR provides more seats for group consumers (more than 4) on the other hand with Nando's seats option of 2-4 seaters presuming it is static. Although both provide group meals but their concentrate on perspectives are slightly different where KRR restricted to family while Nando's concentrating on 3-4 individuals.

Despite the comparative lower prices of Nando's with higher prices of KRR yet both have distinctive costing strategy. Take the 1 / 4 hen with sidelines as example; Nando's ј chicken breast with 2 sidelines reaches RM14. 95 but KRR's RM15. 90 ј chicken breast meal includes 3 sidelines and a muffin (Appendix II). Corresponding to Schiffman et. al. , if the absence of immediate experience or other information, consumers will probably take price as an signal of quality. However, the store images and brand names are likely to be known to consumers assuming that they may have paid their first visit or heard it from their peers. Thus, costs factor to understand quality of the merchandise is lowered.

SWOT Examination and Marketing 4 P's

By examining their SWOT (Appendix VI) and 4 P's, the set of advantages and disadvantages are able to be generated.

Marketing 4 P's

Product

Both Nando's and KRR are junk food establishments. Both of the key courses are dished up with chicken plus some sidelines. Nando's rooster is focus on the preference and spices so that consumers can pick the degree of spiciness they want, ranging from lemon and natural herbs, mild peri-peri, hot peri-peri and further hot peri-peri. While KRR highlight on healthy concern; low on calorie consumption, cholesterols, oils and body fat. KRR offers consumers with their famous home prepared muffins. Both restaurants' carbonated drinks are refillable.

Promotion

The website of Nando's is more attractive than KRR's. Customer can buy Nando's peri peri sauces online in Australia, United Kingdom and USA. Those who ate at KRR and spent a total of rm60 above have entitlement to get one roasters pay back card, which have a chance of receiving up from RM2-RM1000. Nando's is a partner of United against Malaria, which increase account for the malaria patients by create and retailing specially-commissioned beaded African bracelets. The deal of every bracelet will be used to help United against Malaria's programs to eliminate malaria in Africa. This is the cultural responsibility of Nando's.

Place

Nando's operates more than 26 countries and in five continents - Australia, Bahrain, Bangladesh, Botswana, Canada, Cyprus, Fiji, India, Ireland, Kuwait, Lebanon, Lesotho, Malawi, Malaysia, Mauritius, Namibia, New Zealand, Nigeria, Oman, Pakistan, Qatar, South Africa, Swaziland, Turkey, UAE, United Kingdom, USA, Zimbabwe, Portugal, Saudi Arabia and others more. Nando's is more towards globalization. While KRR only manages in China, Malaysia, Singapore, Indonesia, Brunei, Philippines and Australia, which is almost 4 time lesser than Nando's market.

Price

The overall prices of Nando's are lower than KRR's. However, KRR is providing a recognizable additional percentage than Nando's (Refer to Appendix).

Competitive advantages & disadvantages

One of the competitive benefits of Nando's is the homepage of Nando's. It really is more interesting and attracting than KRR. Nando's provides a few quality recipes at the homepage for customer to click and find out, and online purchases for peri-peri sauces; while KRR does not provide any formulas and online purchase either. In term of market development, Nando's stores operate in more than 27 countries worldwide.

The disadvantage of Nando's is not well-known in Malaysia, because there is no ad in television, therefore less consumers know about Nando's. Nando's must face with different administration policies in different countries thus need to go through a whole lot of arrangement and documentation. Adapting overseas cultures and values consumes lots of time and resources.

KRR provides food which lower in calories, cholesterol, oils and fatty acids have competitive advantages in taking healthy mindful consumers, where increasingly more consumers are more health conscious in the foreseeable future. That is an opportunities for KRR. The brand of KRR is more well-known to consumers in Malaysia because of adverts in the tv screen.

In our judgment, the drawback of KRR is less youngster local consumers, where they choose strong preference and spicy food.

Conclusion

Without proper in-store atmosphere that can compliance with their themes, food exclusively won't make heighten the brand image. Understanding the consumers needs and would like provide better information for an improved marketing strategy thus better competitive advantages. The changing trends of needs and wants need to be examined from time-to-time so that companies can reposition themselves in the sight of consumers.

Recommendations

"The exact quality of service can vary from day to day" (Schiffman et. al. , 2008) thus standardization of services is important to better quality. A regular briefing prior to opening time can be done to enhance the standardization and morale of service employees. Consequently, mentioning the motto of "Customers are always right" can be a good way to remind the employees about the quality service should be shipped everyday. A good non-verbal language should also be conveyed such as a warm and glistening teeth to greet the consumers.

Schiffman et. al. also pointed out that services are normally perishable thus it is good to disperse the service more evenly over time. Assume that consumers will most likely have their supper from 7-8p. m. , the seatings will mostly be full. Thus, offering a less expensive early bird meal at 6p. m. can alter the customers from peak hours. Often during peak hours, the quality of services will decrease due to insufficient service employees.

KRR excelled at providing positive impact while customers longing in-line. Whereas, Nando's only provides a menu stand that can be considered insufficient to give positive effect. Therefore, by replicating KRR strategy at the entry can further enhance the impact such as showing the peri-peri sauces and give consumers a try on the level of spiciness.

Evaluating the delivery services done by Nando's is crucial since there are several dissatisfied consumers with the service provided. In the event the evaluation appears to show that the profit margin generated is significantly less than expected yet it is harming the image of store by not delivering promptly, then it is better off to focus on the restaurant rather than providing this services.

Since food industry is a mixture of products and services thus food quality and image must be improved in differentiating the service from rivals. A constant opinions form from consumers can notify the restaurant whether they are satisfied or unsatisfied about the meals and services. From your feedback made, the management can focus on specific improvements.

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