Green Marketing Plan †Nandos Essay

The purpose of this plan is to analyse the environmental efforts of the Nandos Carnegie offset, and to develop strategies that propels them a step closer towards a much than than eco-friendly and sustainable future.Nandos was established in 1987 in Johannesburg, atomic number 16 Africa. It has about 300 terminals in Australia since the brand arrived here in 1990. Nandos has already put one acrossn serve to be more environment on the wholey responsible, with better promotional material designs and fall apartnering with organizations that argon tackling the worlds affectionate problems. The sources of reading for this merchandise plan include websites, articles and the management at the Carnegie branch of Nandos. Since some data is unavailable to us (e.g. the annual costs of the billet), certain assumptions testament incur to be do. Nandos already has a open(a) nidus on reducing its packaging, but zero and water usage have non been intercommunicate as effectively . To lessen their usage of dynamism, they will have to consider their lighting, and the equipment that is mapd in the kitchen. Solar panels will besides be installed to cringe their electricality routine. Water usage will overly be cut down by switching to more efficient equipment in the kitchen and toilets. By employing the strategies that have been outlined, Nandos will be able to target their triple bottom line by reducing cost, lightening their carbon dance step and consequently improving the lives of the throng.Situation AnalysisNandos BackgroundNandos is not the common grammatical case of warm nutriment joint, but is more of a casual dining household. Nandos first began avocation in 1987, in Johannesburg, South Africa. It arrived in Australia in 1990, with its first store opening in Perth. Since then, its popularity has cock-a-hoop in all state in Australia, with clean stores opening all the time. There are approximately 300 stores operating nationally, with plans to expand get on. Nandos is famous for its unique Peri-Peri marinade that is employ for all the moaner items on the menu (Nandos, 2012). This park commercializeing plan is for Nandos Carnegie and how they throne hold in sustainability into their operations.Nandos environmental strategiesNandos does not announce their sustainability efforts much, but hold dearing the environment and doing the right thing has al slipway been a part of their business strategy. They are already raising cognizance for an organisation called United Against Malaria, which is a charity that raises awareness of malaria, and aims to put an end to it (Mumbrella, 2012). Nandos Carnegie has been selling United Against Malaria bracelets to raise funds for the charity. All Nandos restaurants in any case use recyclable packaging for their products (they signed the Australian Packaging Covenant in 2010, which means they must(prenominal) adhere to their guidelines). They have similarly begun selli ng waterbottles which use 35% less plastic than the anterior bottles that were used. Recycle logos and information are also printed onto the packaging to educate consumers (Nandos, 2010). Nandos also makes use of recycling services, which are available at every branch, including Carnegie.Nandos have implemented a musical arrangement of having its suppliers of oil provide oil to each store in monstrous quantities so as to reduce the amount of trips that they need to make. This system also reduces the use of steel drums for containing the oil. Spent oil is then air out to recyclers to produce biodiesel, which Nandos then uses to run its trucks (Nandos, 2010). Analysis of environmental performanceEven though Nandos does undertake all of the above- mentioned activities in their business processes, they are still not realizing their full potential in terms of sustainability. Even though Nandos does try to buy recycled products, they do not have an evident policy that states that the y should buy recycled. Nandos also does not have a policy to encourage their abroad suppliers to rep atmospheric state design to reduce the environmental partake of their packaging (Nandos, 2010). Just by implementing these guidelines, Nandos could improve their environmental performance substantially.However, Nandos does print environmental logos on all its primary and secondary winding packaging to encourage recycling passim its value fibril all the way to consumers. Nandos also discourages consumers to take away the food, and this succors to reduce the use of extra packaging. All Nandos restaurants have a relaxed atmosphere and a homely feel that urges consumers to eat there rather than take the food home (Nandos, 2012)The fast-food chain also uses renewable resources i.e. sugar johne stuff, for most of its packaging. Also, they try to make sure that the packaging is do using no small parts so littering is minimized (Nandos, 2010). A few inefficient business methods tha t are specific to the Carnegie branch include the washing of does and the use of disposable gloves. The bulky dishwashing machine is used even when there are just a few dishes, which resolves in wastage of water. Also, takeers use disposable gloves which are not made ofrenewable resources, and are replaced quite often due to overuse.Evidently, Nandos has integrated sustainability into its organisational plans. However, with a more concentrated focus on the environment, Nandos will be able to reduce their tint further, and could position themselves as the industry standard in terms of environmental impact.Current marketing strategiesNandos main message in its publicize campaigns is the fact that they use fresh chicken that is flame-grilled, not fried. They use this as a point of differentiation to gain an advantage over other fast-food chain, bid McDonalds or KFC (Baker, 2010). With its creative and occasionally controversial marketing campaigns and catchy taglines such as Po rtugasm, Nandos targets an educated, young demographic market.The organization has successfully used social media to connect with their customers, and its website to communicate any new plans, or to inform the public of any events taking place at Nandos.Nandos also uses its store design to complete the brand experience for customers. Wooden tables, soft,fluid lighting and posters showing the history of its unique flavours add an image of relaxation and a natural, friendly appeal to the brand (Nandos, 2012). Even though the target market may be a young demographic, consumers of all ages and backgrounds visit Nandos, presumably because of its uniquely cooked chicken.Industry summaryThe Australian fast food industry has flourished in the last decade, with industry tax income rising by 4.3% to reach $16,007,400,000 per annum. There were approximately 36,730 fast food establishments in Australia in 2010 (RAPS, 2011). With such a large number of fast food organisations, they definitel y have a significant impact on the Australian environment and could make a massive difference if they incorporated sustainability into their business practices. The current macro-environment factors will further examine the current situation and trends in the fast food industry.Political factors All businesses involved in the production and sale of domestic food products must abide by the guidelines set in the food for thought Standards Australia and New Zealand (RAPS, 2011). This ensures that all businesses follow at least the minimum requirements for sustainability. The introduction of the carbon tax has resulted in prices of products like fruits, vegetables, bread and meat will rise (Sebo, 2012), this means all fast food chains including Nandos will have to raise their prices.Social factors Consumers nowadays place more importance on preservation of the environment and healthy eating, so businesses must ensure they must deal with these issues (Price & Lawson, 1992) Fast food i mpacts to be contactn as unhealthy and pollutants of the environment (Price & Lawson, 1992). Fast food businesses are also perceived as litterers by a majority of consumers (Price & Lawson, 1992).Technological factors A new kind of method of utilizing solar power, referred to as solar thermal, means that power can be stored for a longer period of time as the engineering science does not rely on direct sunlight (Sorly, n.d.) Advances in packaging designs so they use less material mean that costs for companies are decreased and they decrease their environmental impact (Joy, 2011). development in the development of water efficient fittings result in reduced water usage for all businesses.Natural factors Water is a major factor influencing all businesses in Australia, as Australia is the driest inhabited clean in the world (White, 2009). Growing population means more demand for food, which places more pressure on the sources of fast food businesses (White, 2009). Depleting sources of fossil fuels, which are the main source of energy in Australia, will result in increased energy prices (White, 2009).Customer analysisThere has been a significant increase of fast food consumption in Australia, with traffic to fast food joints increasing by roughly 7% in 2010 (Markey & Watson, 2011). People of all walks of life come to Nandos, but a majority of them consist of younger people. Majority of consumers who purchase fast food do so for convenience (TheTelegraph, 2007). Therefore, they probably do not consider environmental factors in their purchase decision. However, with the green consumer group growing within Australia, opportunities for press release green for businesses are comme il faut more appealing.In Australia, there are certain trends that define consumers today. Consumers can be divided into certain groups. These include the nourish Consumer, the Busy Consumer and the Green Consumer to name a few (ACRS, 2010)The comfort ConsumerThese are consumers who spe nd their money more wisely, and mostly consider provided what they need. This is mainly a event of the Global Financial Crisis as consumers have become more cautious in their spending habits. This can be evidenced by the fact that consumer spending in Australia has been decreasing steadily, and this trend looks set to continue (Schwarten, 2012). These customers then force businesses to create value, so as to attract them to their brand.The Busy ConsumerThese are consumers who are becoming increasingly time-poor and convenience has a major effect on their purchase decisions. They place more tension on speed, simplicity and convenience (ACRS, 2010). Time is very valuable to them, so fast food is the standard choice for these types of consumers.The Green ConsumerThis has become a growing niche in the market, and identifies those consumers who are more bear on about the environment than other people. They are willing to spend more for products if they know it will help to conserve the environment. They will actively seek out green products or even organic products, and they take into account the environmental practices of thebusiness before choosing to purchase.This consumer market is continuously growing, with an estimated buying power of US$ five hundred billion in 2007 globally (ACRS, 2010). In Australia, consumers spent around AU$12 billion on environmentally-friendly goods in 2009, and the market reached AU$21 billion by 2010.Australians attitude towards environmental issuesAustralians are doubtless concerned about the environment, but the high costs of going green are stopping them from beingness very eco-friendly. This is confirmed by the fact that 100% of Gen Y and 91% of Gen X believe in the effects of climate change, according to McCrindle Research (n.d.). However, 65% do not want to pay more than 10% for green products, while only 10% are willing to pay any price.Consumers also feel that environmentally friendly products should cost less than oth erproducts so as to encourage people to buy them (McCrindle, n.d.) Consumers nowadays expect business to be trans put up with their activities and to be accountable at every level of business (Davis, 2007). Organizations are also expected to provide accurate information regarding the environmental impact of their products, and to minimize the impact through the use of innovative designs and manufacturing techniques (Savita, 2011).This means a restaurant like Nandos is expected to provide the information about their environmental impact to customers, and do all they can to protect the environment, and provide safe products to customers. The purpose of this marketing plan is to target the growing Green Consumer market, and to inform the Value Customer of the high level of environmentally friendly business practices taking place at Nandos Carnegie so as to give them another reason to eat there.Competitor analysisDirect competitors of Nandos Carnegie include Grilld, McDonalds, KFC, tube -shaped structure and other various dining restaurants due to their geographic proximity to the Nandos branch.McDonaldsStrengths1. Participate in thegovernments EnergiesEfficienciesOpportunities Program.2. Engage in countrywide water rescueprograms.3. McDonalds has fullcontrol over its supplychain, which allows it toincorporate sustainabilityinto its operations easily.4. Conduct extensive look for into reducingthe impact of theirpackaging, and are amember of the AustralianPackaging Covenant.(McDonalds, 2012)Weaknesses1. The strategies they are undertaking havenot changed their greedy, corporate brandimage (Barriaux, M. 2007)2. McDonalds does have a slight perceptionof going green in the minds of consumers, butits actual green performance is much lower(Streeter, 2011)3. McDonalds customers wholly produce 6.35kgs of trash during peak hour.4. McDonalds, due to its large size, issusceptible to being sued by individuals ororganisations that see any weakness in theirsustainability effor ts e.g. the 1986 court case(Archives, 2007)5. Damage the environment extensively fromtheir production techniques(EthicalFootprint,2010)Strategies1. covey Control program helpskeep the restaurant grounds clean.2. Restaurant includes rain watertanks, dual knock toilets and waterrestrictors on taps.3. Use scorecard method forsustainability targets for itssuppliers to make sure the goalsare being met throughout thesupply chain.4. Use recyclable material forpackaging, and continuousresearch is put into finding newways to reduce packagingmaterial.(McDonalds, 2012)KFCStrengthsWeaknessesStrategies1. Benefit from alliancewith coulomb Trust, asthey provide them withideas of greentechnologies.2. Yum Brands, (KFCsparent company) arealways looking for newways for environmentsustainability (YumBrands, 2010). KFCbenefits from this asthey have access to all ofthe green technologiesthat Yum Brandsdevelops.1. KFC has been linked with deforestationactivities in several(prenominal) parts of the worl d(Halladay, 2012).2. KFC has experienced problems with animalrights groups, hygiene problems at certainrestaurants, and poor working conditions forworkers. This has had an adverse effect ontheir brand image.1. Switched to recyclable materialfor packaging in 2009(environmental loss leader, 2009).2. All wrappers for chips, burgers,and cups are put through a dualwaste decant bin, which is thensorted and sent out to recycle(KFC, 2012).3. Dual flush system and waterlessurinals in the restaurant help toconserve water.4. Increased insulation for floor,walls, and ceiling (KFC, 2012)SubwayStrengthsWeaknessesStrategies1. Work withInternational buyCompanies Ltd togenerate ideas forenvironmentsustainability (Subway,2012).2. Subways brand motto,Eat Freshcomplements itssustainability goals(Fitzgerald, Brown &Stewart, 2009).3. Member of theAustralian PackagingCovenant, whichprovides Subway withclear goals for reducingenvironmental impact(Subway, 2012)1. Subway received some bad press for an adv enture involving animal cruelty, which mayhave damaged their brand image in the mindsof a few consumers (Reale, 2011)1. Switched to more energy savinglighting and low flow waterfaucets.2. Furniture and cleaning materialsare made from more sustainablematerials.3. Majority of the paper packagingused is completely recyclable.(Subway, 2012) Grilld is also a competitor of the Nandos Carnegie branch. They have a brand image that promotes healthy living and their supply consists of only fresh ingredients. Their Local Matters initiative, which is used to support local charities, is a fundamental part of their corporate social responsibility program (Grilld, 2012)Internal analysisHuman ResourcesThe management at Nandos Carnegie has had experience with Nandos for quite some time, so they know how to implement any new operations into the business effectively. Also, this Carnegie branch is family-owned so they would be enthusiastic about any positive innovations or advancements.Marketing capabi litiesNandos uses several mediums to reach its consumers. It uses social media such as its own Facebook page and Twitter account. They also re-designed their website to give it a more informal, fun look. Nandos also advertises in-store with a variety of posters and brochures. Nandos also utilises TV advertising but not as intensely as the other fast food franchises. Nandos is know for its somewhat cheeky advertising, and this has improved brand awareness since it first moved to Australia (Squidoo,n.d).Financial ResourcesAverage revenue daily for the Nandos Carnegie branch is approximately$2,200. So average annual revenue is approximately $791,720.ObjectivesTo incorporate sustainability into Nandos accounting framework, the Triple Bottom downslope will be used. This means that objectives will be formed so as to address business, society and environmental factors. The TBL framework considers people, planet and profit at the core of the business.Objective 1 Reduce overall environmenta l impact by intensifying focus on water usage, energy usage and packaging material. By doing this, Nandos Carnegie will aim to grasp a 50% reducing in costs.Objective 2 Increase awareness of Nandos Carnegies environmental efforts by 50% among consumers by December 2014.Green Marketing strategyObjective 1 Reduce overall environmental impact by intensifying focus on water usage, energy usage and packaging material. By doing this, Nandos Carnegie will aim to achieve a 50% lessening in costs.StrategyReduce water usage by50% by December 2014.StrategyReduce energy use by 50%by December 2014.Actions1. flip existingdish washer withdishwasher that has 4Star Water Efficiencyrating.2. Ensure all employeesuse the dishwasher onlyfor a full load.3. throw in time flow tapsand dual flush toilets.Actions1. Replace fryer withenergy-efficient fryerthat has earned the nada STAR.2. install ENERGYSTAR convection oven.3. Add strip curtains and machine-controlled door closersto the walk-inrefrigerato r to keepinside temperature low.4. Install CFL bulbs inevery part of therestaurant.5. Install demand basedexhaust control. Thisregulates the exhaust fanspeed in the kitchen tomeet ventilation needs.6. Install energyefficient Reverse CycleAir Conditioner.7. Install 7 solar panelson pileus of building.Cost$3000- $6000.Time flow taps- $300 eachDual flush toilets- $500Cost$950- electric$4,400- gas$1,800- electric$ 3,400- gas$5 per bulb. (Times approximately 25bulbs for the restaurant = $125)$cl0 $2000$3000- $4000Through the implementation of these strategies, Nandos will be able to reduce their overall operating cost. The investment in green technology might have a high initial investment, but will definitely be utile in the future. For exampleEnergy-efficient fryers can save up to $100 for electricity or $470 for gas annually. ENERGY STAR electric ovens can save up to $190 annuallyCFL bulbs can reduce energy consumption by 75%Cutting down on idle time for the combination oven can sa ve up to $800 annually. By turning down the central cooling by 3 F, air conditioning costs can be reduced by 12-15 percent.The solar panels could help save up to $400 in electricity costs. (Energy Star, 2012)Clearly, these cost savings are quite significant, and a 50% reduction in costs is therefore perfectly realistic.Strategy 4 Nandos is already committed to eco-friendly packaging practices, as they follow the strict guidelines under the Australian Packaging Covenant. However, Nandos does not currently work with third-party organizations to improve design and recycling of packaging, they must begin doing so in order to benefit from specialist knowledge that those firms (e.g. The Cardboard Pallet Company) have acquired.Objective 2 Increase awareness by 50% of Nandos Carnegies environmental efforts among consumers by December 2014.StrategyActionsIncrease communication effortsof eco-friendly changes takingplace through a range ofmediums and creative tactics.1. Change in-store poster designto a green base of operations to emphasizethe changes taking place.N/ACost2. Advertise in local CaulfieldGlen Eira Leader newspaperand The Daily Green websiteabout the restaurants greenefforts.3. Use outdoor banners toadvertise sustainabilitypractices.4. Distribute brochures insidestore to raise awareness of theshift to sustainability atNandos.$500 (approximately)$300 ($150 for each banner)$2000Other strategies that Nandos could undertake involveUsing their food waste and turn it into compost to use it to grow plants. They could do this by having their own compost recycling operation or send their food waste to a compost facility.Encouraging more eat-ins by providing facts about the environmental impact of packaging to consumers.Using the strategies listed, Nandos will be able to affect its Triple Bottom Line positively. Through the implementation of the strategies, they will be able to minimise their environmental impact, reduce their costs significantly and improve the st ore environment for the people who visit the store (i.e. through improved design and having more decorative plants in the store). The achievement of these objectives will show Nandos devotion to sustainability.ReferencesArchives (2007, April 11). McDonalds, Environmental McNasty? Retrieved 27 phratry, 2012 from http//theconcordian.com/Baker, R. (2010, June 30). Nandos has lipsmackin giveaway plan. Marketing Week. Retrieved from http//www.marketingweek.co.uk/nandos-has-lipsmackin-giveawayplan/3015217.article Barriaux, M. (2007, July 05). McDonalds goes green, but not all customers are lovin it. The Guardian. Retrieved from http//www.guardian.co.uk/Davis, P. (2007, November 13). Is your company naughty or mincing? Consumers want to know before buying. 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