Comparison of Nandos and KRR

Comparison of Nandos and KRRKRR is a rotisserie chickenhearted restaurant that was launched in 1991 by country music singer Kenny Rogers and former Kentucky chief executive officer John Y. Brown, Jr. More consumers ar concerned about the healthy lifestyle and foods thus Kenny Rogers employ this opportunity to start up the first restaurant that served healthy yet delicious foods in Coral Spring, Florida, August of 1991.As the first mover in the market, KRR had extended and franchised over 350 restaurants around the world, much(prenominal) as Middle eastmostern countries, Canada, Asian countries such as China, Philippines and Malaysia. Initially, the menu offered mainly on wood-fired rotisserie chicken scarce later on had introduced much variety such as turkey, seafood, ribs, home-made muffins, jacket potatoes and ve trainable salads.Due to economic downturn in 1999, KRR went into bankruptcy. Nathans Famous Inc. had bought it and initiated downsizing of their locations off ered. With the words of consumers see, we localize consumers dont see, we globalize, KRR now operates entirely outside of the ground forces and operates primarily in Asia.The franchise holder for KRR in Malaysia is Berjaya Roasters (M) Sdn. Bhd. In 1994, Berjaya conference Berhad had wholly owned subsidiary and incorporated. In 2008, Nathans Famous divested itself and selling it to Asian franchiser, Berjaya Group Malaysia. At the season, only one outlet was still operating in United States.The franchise holder of KRR in Malaysia, Berjaya Roasters (M) Sdn. Bhd. operates 60 restaurants in West and East Malaysia. Besides that, the executive director of the company decides to expand six to eight new outlets in year 2010.The vision of restaurants is Roasters stands for real food and high bore utility that bridges the gap between quick service restaurants and casual dining.NandosNandos is a Portuguse-style chicken restaurant that founded in 1987 and originating from South Africa tha t specialized in kindle-grilled chicken and hot sauces. Nandos went global and operating in more than 30 countries such as Australia, Canada, Indonesia, Pakistan, Israel and Malaysia.Nandos originally named as Nandie in 1975 after the name of the son of Fernado Duarte, a Portuguese living 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 Nandos restaurant appe ard.Consumers admire Nandos flame-grilled peri-peri chicken and the unique sauces as it is very delicious. Nandos offered variety of flavor such as lemon and herb, mango and lime to satisfy the different needs and wants of consumers. Peri-peri choices argon mild, hot and extra hot peri-peri marinades.Nandos ensures the demand is always available by tailoring their selection of location to suit the consumers. Currently, there are 32 outlets in Malaysia located in Selangor, Melaka, Johor Bahru, Pulau Pinang and Kuala Lumpur.Their vision is Our vision is to be the premier provider of chicken to our consumers with superior product outstanding go, while their mission is To be the scoop out chain in the world by offering a world class chicken experience at affordable charges with consistent quality, value and perpetration to its customer base.Segmentation and Target MarketThe themes for both companies which are Peri-peri and Less fat. Less salt. Less Calories have de circumstanceined their way of segmenting their market. Both have used a few segments to target. Both identified their consumers needs and serve them with differentiated food selection. Food is also defined as physiological needs consort to Maslow Hierarchy of Needs.NandosBenefit. Nandos is targeting consumers who crave for tasty food. The varieties for consumers who crave for spiciness are extra hot peri-peri, hot peri-peri and mild peri-peri. Meanwhile, the non-spicy consumers are left with lemon and herbs flavour. Besides that, the flame grilled chickens are offered for healthy concern consumers.Geographic. Nandos outlets are located in over 20 countries worldwide including Australia, Malaysia and Canada.KRRBenefit. It focuses on targeting consumers who are more health concern, where some(prenominal)(a) consumers insist on having balanced repast while parents are concerned about their childrens nutrition. KRR used this opportunity to serve a balanced meal of roast chicken with low calories, low fats and less oil and other sidelines such as vegetable salad, fruit salad, mashed potatoes and rice. KRRs philosophy is weaved on preparing wholesome, hearty and well-balanced meal which mirrors todays discerning consumers changing attitude towards healthy eating lifestyle. KRR also has daily food guide pyramid which enhances their products reliability (Appendix I).Demographic. KRR meal is tailored to consumers of all ages. sr. citizens passel enjoy the roasted chicken without the fear of high calories a nd high cholesterols. Consumers of all income levels can enjoy a well-balanced meal by paying only RM14.90 for a quarter roasted chicken meal with three sidelines (Appendix II)Geographic. there are numerous of KRR located in 6 countries Australia, Brunei Darussalam, Malaysia, Philippines and Singapore. It is very provable that they are more focused in Asian countries where there are already over 64 stores alone covering West and East Malaysia. In the metropolitan area of Klang Valley, there are 32 stores because the density of population is higher.In-Store AtmosphereSurvey MethodologyIn-store atmosphere observations were conducted at one of the outlets in key Malaysia for each company by two of our members (Appendix III). This method serves us the primary survey that allows us to have the direct in-store experience. During the observation the elements of perception are swan into the test such as sensation. In addition, we also had a simple evaluation of the in-store atmosphere (Appendix IV). Schiffman et. al. mentioned that consumers often judge the quality of products base on essential and extrinsic informational cues of the product. Thus, the observation details below are a mixture of both, explained in chorological order of our observation journey.Nandos Nandos Chickenland (M) Sdn. Bhd. (Mid Valley)Entry. At the moment we have arrived to the outlet, there was already a waitress standing by the menu stand. Immediately, she gave a tight-lipped smile and ushered us to our tables after confirmation of number of person dining. There aroma from the unsympathetic kitchen was not ventilated to the dining area.Table. When we were seated on the dining area, the menu is immediately come backn by the waitress. After that, we were left unattended for about quintuple minutes as we were selecting our choices of meal. A simple hand gesture to signal the waitress to take order was acknowledged and the taking order process began. There were not any recommendations o f highlights. The drinks are served within five minutes while the meal is about ten minutes upon ordering.Environment. Although there was not any music during our survey yet our previous experience is vice versa. The lightings were warm and comfy. The hard seats are made of wood. The overall decorations were well blended with their Peri-peri concept. The air is middling ventilated with decent temperature.Exit. The time taken for bill payment services is less satisfied. A simply gratitude was given by the waiter. However, the waitress standing by the menu stand did not.KRR Berjaya Roasters (M) Sdn. Bhd. (Mid Valley)Entry. Despite waiting in-line for 10 minutes at the menu stand, a waitress keeps taking order to reduce the line over-crowding while another ushered the consumers to their available seats. There is a muffin display area located beside the menu stand that gave attraction to us while waiting. We did not order at the stand as there is a two-seated table available.Table. The menu is given as soon as we are seated. We were left a few minutes to decide our order until we signal the waitress to take order. Similarly, there were no recommendations of highlights. However, the menu is rather dinky as it is covered in leather and the overall menu presentation is informative, providing food guide pyramid and nutrition information (Appendix V).Environment. The lightings are too bright and created a warmer environs (Appendix V). The surrounding walls are displaying the photos and album of Kenny Rogers.Exit. The bill payment service is less satisfied as it takes longer time. The entry and exit point are overcrowded with consumers queuing-up. We found it difficult to make an exit from the outlet.Store Image/PositioningBoth the restaurants positioned their store image differently in terms of product selection, interior and outside design, fixtures and fittings, lighting and pricing.Product selection can be further refine for food industry to theme selection. Nand os is using Peri-peri as their theme which is a term describing the African birds-eye chili. Thus, the degree of taste and spiciness of the food are emphasized. The degree includes mild, hot or extra-hot peri-peri for those craving for spiciness whereas lemon and herb are for others. In contrast, KRR used the theme of Less fatLess saltLess calories to attract healthy conscious consumers to consume roasted chicken in a more healthy way.Nandos chose its origin country as the base of its interior and exterior design. It created an African feel throughout the outlet with wooden based furniture and African-like ornaments. Moreover, the music broadcasted is also emitting African environment. Part of their uniform is to wear a scarf which resembles the African scarf. On the other hand, KRR used the theme of its entrepreneur, Kenny Rogers. The interior generally consists of pictures and records of him. Furthermore, the famously homemade muffins are displayed at the entrance of the outlet to further attract consumers. The displaying at the entrance is part of the fixtures and fittings placement strategy as the profile and aroma of tempting foods generated greater consumption (Schiffman, Bednall, OCass, Paladino, Ward, Kanuk, 2008).Through our observations and direct experience, we found that KRR offers more comfortable and family-oriented environment whereas Nandos provide more variety for 3-4 persons with Makan-makan together, riang riang forever. The seatss are the main comparison of comfortable environment Nandos wooden seats and KRRs cushion seats. In terms of family-oriented environment, KRR provides more seating for group consumers (more than 4) in contrast with Nandos seating availability of 2-4 seaters assuming it is static. Although both provide group meals but their target perspectives are slightly different where KRR confined to family while Nandos targeting 3-4 persons.Despite the comparative trim back prices of Nandos with higher prices of KRR yet bot h have distinctive pricing strategy. Take the quarter chicken with sidelines as example Nandos chicken with 2 sidelines is at RM14.95 but KRRs RM15.90 chicken meal comes with 3 sidelines and a muffin (Appendix II). According to Schiffman et. al., if the absence of direct experience or other information, consumers will likely take price as an indicator of quality. However, the store images and brand names are likely to be known to consumers assuming that they have paid their first visit or heard it from their peers. Thus, pricing factor to perceive quality of the products is lowered.SWOT Analysis and Marketing 4 PsBy examining their SWOT (Appendix VI) and 4 Ps, the list of advantages and disadvantages are able to be generated.Marketing 4 PsProductBoth Nandos and KRR are fast food industries. Both of the main courses are served with chicken and some sidelines. Nandos chicken is emphasis on the taste and spices so that consumers can choose the degree of spiciness they want, ranging f rom lemon and herbs, mild peri-peri, hot peri-peri and extra hot peri-peri. part KRR emphasize on healthy concern low on calories, cholesterols, oils and fats. KRR also offers consumers with their famous home cooked muffins. Both restaurants soft drinks are refillable.PromotionThe website of Nandos is more attractive than KRRs. Customer can purchase Nandos peri peri sauces online in Australia, United Kingdom and USA. Those who ate at KRR and spent a total of rm60 above are entitled to get one roasters reward card, which have a chance of winning up from RM2-RM1000. Nandos is a partner of United against Malaria, which raise fund for the malaria victims by create and selling specially-commissioned beaded African bracelets. The sale of each bracelet will be used to help United against Malarias programmes to eradicate malaria in Africa. This is the social responsibility of Nandos. organiseNandos operates more than 26 countries and in five continents Australia, Bahrain, Bangladesh, Bots wana, 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. Nandos is more towards globalization. While KRR only operates in China, Malaysia, Singapore, Indonesia, Brunei, Philippines and Australia, which is almost 4 time lesser than Nandos market.PriceThe overall prices of Nandos are lower than KRRs. However, KRR is providing a noticeable additional proportion than Nandos (Refer to Appendix).Competitive advantages disadvantagesOne of the competitive advantages of Nandos is the homepage of Nandos. It is more interesting and attracting than KRR. Nandos provides a few recipes at the homepage for customer to click and learn, and online purchases for peri-peri sauces while KRR does not provide any recipes and online purchase either. In term of market development, Nandos outlets operate i n more than 27 countries worldwide.The disadvantage of Nandos is not well-known in Malaysia, because there is no advertisement in television, therefore less consumers know about Nandos. Nandos needs to facial expression with different government policies in different countries thus need to go through a lot of agreement and documentation. Adapting to another country cultures and values consumes a lot of time and resources.KRR provides food which low in calories, cholesterol, oils and fats have competitive advantages in capturing healthy conscious consumers, where more and more consumers are more health conscious in the future. This is an opportunities for KRR. The brand name of KRR is more well-known to consumers in Malaysia because of advertisements in the television.In our opinion, the disadvantage of KRR is less youngster local consumers, where they prefer ironlike taste and spicy food.ConclusionWithout proper in-store atmosphere that can compliance with their themes, food alone will not make heighten the brand image. reason the consumers needs and wants provide wagerer information for an improved marketing strategy thus better competitive advantages. The changing trends of needs and wants need to be evaluated from time-to-time so that companies can reposition themselves in the eyes of consumers.RecommendationsThe actual quality of service can vary from day to day (Schiffman et. al., 2008) thus standardization of services is authoritative to improved quality. A daily briefing prior to opening hours can be done to improve the standardization and morale of service employees. As such, mentioning the proverb of Customers are always right can be a healthy way to remind the employees about the quality service should be delivered everyday. A good non-verbal language should also be conveyed such as a warm and shiny smile to greet the consumers.Schiffman et. al. also mentioned that services are normally biodegradable thus it is good to distribute the service m ore equally over time. Assume that consumers will usually have their dinner from 7-8p.m., the seatings will mostly be full. Thus, offering a less expensive early bird dinner at 6p.m. can shift the customers from peak hours. Often during peak hours, the quality of services will decline due to insufficient service employees.KRR excelled at providing positive effect while customers waiting in-line. Whereas, Nandos only provides a menu stand that can be considered insufficient to give positive effect. Therefore, by replicating KRR strategy at the entrance can further enhance the effect such as displaying the peri-peri sauces and give consumers a try on the level of spiciness.Evaluating the delivery services done by Nandos is a must since there are several dissatisfied consumers with the service provided. If the evaluation seems to show that the profit margin generated is less than expected yet it is hurting the image of store by not delivering on time, 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 competitors. A constant feedback form from consumers can tell the restaurant whether they are satisfied or unsatisfied about the food and services. From the feedback generated, the management can focus on specific improvements.