Malaysian Media Awards Winners Showcase

2022 | |

Nando’s Grocery gets Peri-Peri Spicy: Fast forwarding Nando’s E-commerce 400% in Face of Adversity

Advertiser: Nando's Malaysia
Brand: Nando's Malaysia
Creative Agency: D Group, Sinma Digital
Credits: Mandy Chan - Ampersand Advisory, Head Performance Chan Mei Yun - Ampersand Advisory, Media Manager

Objective & Challenge
Objective and Challenge Nando’s has been operating its restaurant chain in Malaysia for 20+ years. It had 80 outlets across Malaysia, while it is not as large as KFC, McDonald’s it has a core set of loyalists, Nando’s sauces are seen as key differentiator. Nando’s has been looking to widen its sales outside of restaurant’s make its famous sauces available in hypermarkets. This strategy is for increasing its sales from its loyal user based and grow loyalists. Nando’s dine-in constituted 82% of overall sales and was biggest driver of revenue. Significant portion of business was lost during pandemic. Nando’s had to reduce number stores forced to reduce headcount from 1800 to 1000. It needed to strengthen its sales in retail channels ensuring alternate revenue source and widen its retail reach by tapping into growing power of e-commerce platforms. Nando’s portfolio on retail channels ran the risk of being seen as jaded: launching new product innovations via e-commerce was expected to revitalise retail channel sales.

Insight & Strategy
Insight and Strategy Food category is extremely competitive within retail, especially within e-commerce. Nando’s sauces not staple purchase like bread so chance of consumers discovering them are low. Inability to get noticed quickly would increase time to achieve revenue, it was essential Nando’s reaches critical mass quickly and starts generating revenue. Unlike hypermarket where it is possible to block aisle space, e-commerce has low barriers of entry. Nando’s was competing against host of small manufacturers and global players. Losing a prospect is just one swipe away. Our Spicy Strategy: It became essential to drive consumers directly to transaction, ensuring media investment maximisation and fast forwarded sales.

Execution : Key drivers a> Leverage E-commerce platform Strategy to tap existing platform due to their high organic traffic and ease of operationalisation. However they also have high levels of competition and clutter, was essential that Nando’s cut thru the clutter. Unlike supermarket shelves with constraints in number of stock keeping units, e-commerce platform is potentially infinite in clutter. b> Breaking the clutter Organic traffic on e-commerce platforms take time to build, targeted digital campaign was launched to drive Nando’s relevant audience directly to e-commerce store. Targeting was on audience interest – people who eat out, have shown interest in Nando’s…Initial visitors were used for look alike targeting, increasing relevant reach efficiently. Creatives linked to innovative recipes with new lines of sauces and product innovations like bag&bake was used to widen interest and cut thru food content clutter on social media. CPAS (Collaborative Performance Advertising Solution) inventory on social media allowed for showcasing product offers directly e-commerce platform on social channels. Video content generated higher level of engagement and desire. c> Influencers to widen Reach Availability e-commerce allowed for widening audience, Influencers with strong fan following were chosen using our selection algorithms. Using education and personal recipes with new sauce variants allowed increasing engagement and reach. Tapping into visual appeal of Instagram for driving more spicy desire.

Due to business urgency the campaign was planned for only December’21-Jan 2022. During the campaign visitors to e-commerce platforms grew at average of 150% month on month. Social media buzz saw 50% increase vs. the past. Promotional efforts for e-commerce had halo effect also on the hypermarket sales channel. Comparison of sales of sauces pre the campaign vs. post saw the following : Reduction on dependence on restaurant as sales channel to the growth from hypermarket sales by 4% point increase. Newly set up e-commerce channel now represented a significant 5% of the overall sales, reflecting a 400% growth. The campaign ensured continuation of the brand’s omnichannel strategy and increased the accessibility of Nando’s brand to wider audience via e-commerce. Despite the short duration and smaller budget of the campaign, it delivered well on all key campaign metrics : Campaign for the sauces and spices in the two months achieved an unique reach of almost 5 million The high engagement of the content on social media allowed for achieving CPLC (Cost per Link Click) at 80% lower vs similar other e-commerce projects, resulting in a huge jump in e-commerce sales for Nando’s. Resultant increase in retail sales was seen as a means to reduce the gap in revenue due to reduced dine-in. The presence in retail channels, including e-commerce site was a means to grow the core Nando’s user base. Beyond immediate sales impact the Nando’s Brand Equity gained. On-going brand equity showed increase in key metrics : “Readily Available Wherever you Want” increased in 6% point, while “Affordable” associations went up 7% point after the campaign. Indicating long term impact. The single campaign, like all good spices, left a memorable impact!