KRR is a rotisserie chicken restaurant that was founded in 1991 by country music performer Kenny Rogers and previous Kentucky CEO John Y. Brown, Jr. More individuals are worried about the healthy lifestyle and foods thus Kenny Rogers used this possibility to set up the first restaurant that offered healthy yet delicious foods in Coral Spring, Florida, August of 1991.
As the first mover in the market, KRR had prolonged and franchised over 350 restaurants about the world, such as Middle Eastern countries, Canada, Parts of asia such as China, Philippines and Malaysia. Primarily, the menu offered mainly on wood-fired rotisserie chicken breast but later on had launched more variety such as turkey, sea food, ribs, home-made muffins, coat potatoes and veg salads.
Due to monetary downturn in 1999, KRR went into individual bankruptcy. Nathan's Famous Inc. got got it and initiated downsizing of their locations offered. With what of "consumers see, we localize; consumers don't see, we globalize", KRR now manages entirely outside 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 experienced wholly possessed subsidiary and incorporated. In 2008, Nathan's Famous divested itself and selling it to Asian franchiser, Berjaya Group Malaysia. At that time, only one store was still operating in United States.
The franchise holder of KRR in Malaysia, Berjaya Roasters (M) Sdn. Bhd. operates 60 restaurants in Western and East Malaysia. Besides that, the professional director of the company decides to increase six to eight new stores in calendar year 2010.
The eye-sight of restaurants is "Roasters means real food and high quality service that bridges the distance between quick service restaurants and casual dining".
Nando's is a Portuguse-style chicken breast restaurant that founded in 1987 and from South Africa that professional in flame-grilled rooster and hot sauces. Nando's travelled global and functioning in more than 30 countries such as Australia, Canada, Indonesia, Pakistan, Israel and Malaysia.
Nando's originally known as as Nandie in 1975 after the name of the son of Fernado Duarte, a Portuguese moving into 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 made an appearance.
Consumers love Nando's flame-grilled peri-peri poultry and the initial sauces as it's very delicious. Nando's offered variety of flavour such as lemon and supplement, mango and lime to fulfill the several needs and wishes of consumers. Peri-peri alternatives are gentle, hot and further hot peri-peri marinades.
Nando's ensures the demand is definitely available by tailoring their selection of location to suit the consumers. Presently, there are 32 shops in Malaysia found in Selangor, Melaka, Johor Bahru, Pulau Pinang and Kuala Lumpur.
Their eye-sight is "Our vision is to be the premier specialist of chicken to our consumers with superior product & outstanding services", while their objective is "To be the best chain on the planet by supplying a world class poultry experience at affordable prices with consistent quality, value and commitment to its customer base".
The topics for both companies that happen to be "Peri-peri" and "Less unwanted fatLess sodiumLess Calories" have determined 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 corresponding to Maslow Hierarchy of Needs.
Benefit. Nando's is focusing on consumers who desire for scrumptious food. The varieties for consumers who crave for spiciness are extra hot peri-peri, hot peri-peri and moderate 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 stores are positioned in over 20 countries worldwide including Australia, Malaysia and Canada.
Benefit. It focuses on concentrating on consumers who are more health matter, where some consumers insist on having balanced food while parents are worried about their children's diet. KRR used this chance to serve balanced meals of roasted fowl with low calorie consumption, low fats and less essential oil and other sidelines such as veg salad, berry salad, mashed potatoes and rice. KRR's idea is weaved on getting ready wholesome, hearty and well-balanced food which mirrors today's discerning consumers' changing attitude towards healthy eating lifestyle. KRR also has daily food guide pyramid which enhances their products trustworthiness (Appendix I).
Demographic. KRR food is customized to consumers of most ages. Senior citizens can enjoy the roasted poultry without the fear of high energy and high cholesterols. Consumers of all income levels can like a well-balanced meal by paying only RM14. 90 for a quarter roasted chicken food with three sidelines (Appendix II)
Geographic. There are numerous of KRR located in 6 countries: Australia, Brunei Darussalam, Malaysia, Philippines and Singapore. It's very obvious they are more concentrated in Asian countries where there are already over 64 stores alone covering West and East Malaysia. In the metropolitan part of Klang Valley, there are 32 stores because the density of human population is higher.
In-store atmosphere observations were conducted at one of the retailers in Central Malaysia for each company by two of our people (Appendix III). This technique serves us the primary survey which allows us to have the immediate in-store experience. Through the observation the components of perception are placed in to the test such as discomfort. In addition, we also acquired a simple analysis of the in-store atmosphere (Appendix IV). Schiffman et. al. pointed out that consumers often assess the grade of products base on intrinsic and extrinsic informational cues of the product. Thus, the observation details below are a mixture of both, described in chorological order of the observation trip.
Entry. At this time we have arrived to the outlet, there is already a waitress standing by the menu stand. Immediately, she offered a tight-lipped laugh and ushered us to your tables after verification of range of person eating. There aroma from the shut kitchen was not ventilated to the eating area.
Table. When we were seated on the eating area, the menu is immediately distributed by the waitress. After that, we were kept unattended for about five minutes even as we were selecting our selections of meal. A simple hands gesture to indicate the waitress to have order was acknowledged and the taking order process started. There have been not any tips of highlights. The drinks are dished up within five minutes while the food is approximately ten minutes after ordering.
Environment. Although there was no music during our study yet our prior experience is vice versa. The lightings were warm and comfy. The hard seats are constructed of wood. The overall decorations were well blended with their "Peri-peri" concept. Mid-air is moderately ventilated with respectable temperature.
Exit. Enough time taken for bill repayment services is less satisfied. A simply appreciation was presented with by the waiter. However, the waitress ranking by the menu stand did not.
Entry. Despite waiting in-line for 10 minutes at the menu stand, a waitress will keep taking order to reduce the series congestion while another ushered the consumers with their available seats. There is a muffin screen area located beside the menu stand that offered interest to us while hanging around. We didn't order at the stand as there's a two-seated desk available.
Table. The menu is given as soon as we are sitting. We were still left a few momemts to decide our order until we indicate the waitress to take order. Similarly, there were no tips of features. However, the menu is quite attractive as it is covered in leather and the entire menu demonstration is interesting, providing food guide pyramid and nourishment information (Appendix V).
Environment. The lightings are too dazzling and created a warmer environment (Appendix V). The surrounding walls are showing the photographs and recording of Kenny Rogers.
Exit. The charge payment service is less satisfied as it takes longer time. The admittance and leave point are overcrowded with consumers queuing-up. We found it difficult to make an leave from the store.
Both the restaurants located their store image in another way in conditions of product selection, interior and outside design, fittings and fittings, lighting and rates.
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 explaining the African bird's-eye chilli. Thus, the amount of tastes 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 herb are for others. In contrast, KRR used the theme of "Less fatsLess sodiumLess calorie consumption" to appeal to healthy conscious consumers to take roasted chicken in a far more healthy way.
Nando's decided its source country as the base of its interior and outside design. It created an "African feel" throughout the outlet with wooden structured furniture and African-like ornaments. Moreover, the music broadcasted is also emitting African environment. A part of their even is to wear a scarf which resembles the African scarf. On the other hand, KRR used the theme of its businessman, Kenny Rogers. The interior mostly involves pictures and data of him. Furthermore, the famously homemade muffins are shown at the access of the wall plug to further catch the attention of consumers. The exhibiting at the access is area of the fixtures and fixtures location strategy as the visibility and aroma of appealing foods generated higher usage (Schiffman, Bednall, O'Cass, Paladino, Ward, & Kanuk, 2008).
Through our observations and direct experience, we discovered that KRR offers more comfortable and family-oriented environment whereas Nando's provide more variety for 3-4 persons with "Makan-makan mutually, riang riang forever!". The seatings are the primary comparability of comfortable environment: Nando's wooden chairs and KRR's pillow seats. In conditions of family-oriented environment, KRR provides more seating for group consumers (more than 4) on the other hand with Nando's seats availability of 2-4 seaters presuming it is static. Although both provide group meals but their goal perspectives are just a little different where KRR limited to family while Nando's concentrating on 3-4 people.
Despite the comparative lower prices of Nando's with higher prices of KRR yet both have distinctive charges strategy. Take the one fourth fowl with sidelines as example; Nando's fowl with 2 sidelines is at RM14. 95 but KRR's 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 probably take price as an indicator 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 been told it from their peers. Thus, rates factor to perceive quality of the merchandise is lowered.
By evaluating their SWOT (Appendix VI) and 4 P's, the list of advantages and disadvantages are able to be generated.
Both Nando's and KRR are fast food business. Both of the key courses are dished up with chicken and some sidelines. Nando's fowl is emphasis on the tastes and spices so that consumers can pick the degree of spiciness they need, which range from lemon and herbs, minor peri-peri, hot peri-peri and extra hot peri-peri. While KRR emphasize on healthy matter; low on calories, cholesterols, oils and excess fat. KRR also offers consumers using their famous home cooked properly muffins. Both restaurants' soft drinks are refillable.
The website of Nando's is more appealing than KRR's. Customer can purchase Nando's peri-peri sauces online in Australia, United Kingdom and USA. Those who ate at KRR and put in a complete of rm60 above are entitled to get one roasters praise card, that have a chance of earning up from RM2-RM1000. Nando's is a partner of United against Malaria, which raise account for the malaria victims by create and selling specially-commissioned beaded African bracelets. The deal of every bracelet will be utilized to help United against Malaria's programmes to eradicate malaria in Africa. This is the communal responsibility of Nando's.
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, UK, USA, Zimbabwe, Portugal, Saudi Arabia as well as others more. Nando's is more towards globalization. While KRR only operates in China, Malaysia, Singapore, Indonesia, Brunei, Philippines and Australia, which is nearly 4 time less than Nando's market.
The overall prices of Nando's are less than KRR's. However, KRR offers a apparent additional proportion than Nando's (Refer to Appendix).
One of the competitive advantages of Nando's is the homepage of Nando's. It is more interesting and attracting than KRR. Nando's provides a few formulas at the homepage for customer to click and learn, and online acquisitions for peri-peri sauces; while KRR does not provide any recipes and online purchase either. In term of market development, Nando's outlets operate in more than 27 countries worldwide.
The drawback of Nando's is not well-known in Malaysia, because there is no advertising campaign in tv, therefore fewer consumers know about Nando's. Nando's needs to face with different federal policies in several countries thus need to undergo a lot of agreement and documents. Adapting to another country cultures and values consumes lots of time and resources.
KRR provides food which lower in calories, cholesterol, oils and excess fat have competitive advantages in recording healthy conscious consumers, where increasingly more individuals are more health mindful in the 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 thoughts and opinions, the drawback of KRR is less youngster local consumers, where they prefer strong style and spicy food.
Without proper in-store atmosphere that can compliance using their themes, food only won't make heighten the brand image. Understanding the consumers needs and desires provide better information for a better online marketing strategy thus better competitive advantages. The changing trends of needs and would like have to be examined from time-to-time so that companies can reposition themselves in the sight of consumers.
"Some of the quality of service may differ from daily" (Schiffman et. al. , 2008) thus standardization of services is important to much better quality. A daily briefing prior to opening time can be carried out to increase the standardization and morale of service employees. As such, talking about the motto of "Customers are always right" can be considered a great way to remind the employees about the product quality service should be supplied everyday. An excellent non-verbal language also needs to be conveyed such as a warm and sparkly teeth to greet the consumers.
Schiffman et. al. also talked about that services are usually perishable thus it is good to disperse the service more evenly over time. Presume that consumers will usually have their meal from 7-8p. m. , the seatings will mostly be full. Thus, supplying a less expensive early on bird evening meal at 6p. m. can shift the clients from peak time. Often during peak hours, the quality of services will drop due to inadequate service employees.
KRR excelled at providing positive result while customers hanging around in-line. Whereas, Nando's only offers a menu stand that can be considered insufficient to give positive impact. Therefore, by replicating KRR strategy at the entrance can further improve the effect such as showing the peri-peri sauces and present consumers a go on the amount of spiciness.
Evaluating the delivery services done by Nando's is a must since there are several dissatisfied consumers with the service provided. In the event the evaluation appears 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 concentrate 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 increased in differentiating the service from opponents. A constant opinions form from consumers can tell the restaurant if they are satisfied or unsatisfied about the food and services. From the feedback produced, the management can concentrate on specific improvements.