Dissertation Sample

HOW THE CUSTOMER RELATIONSHIP MANAGEMENT

(CRM) IS APPLIED IN A MOBILE MARKETING

ENVIRONMENT TO IMPROVE THE CUSTOMER

LOYALTY?

(A CASE STUDY OF NANDO’S RESTAURENT)

Abstract:

The customer relationship management is generated in the business organisations in order to

ensure certain kinds of relationship with the customers of the business organisation. The

customer preference is one of the most significant factors that determine the success of the

organisation in the competitive market thus the business organisations always attempt to

identify the preferences and expectations of the customers of the organisation and attempt to

generate positive perception regarding the organisation and its products and services among

the customers. With the immergence of the mobile marketing as the medium of promotion for

the products and the services, it has become important for the business organisations such as

Nando’s restaurant to generate effective customer relationship management, plan to enforce

the customer loyalty.

In order to gain complete understanding of the issue the researcher segmented the research

study in five chapters. At the introduction the researcher provide a brief description of the

research issue and stated the research aims, objectives, questions and rationale. In the

literature, review theories and models related to the research issue are stated and critically

discussed. In the research methodology, the researcher provided the overview of the methods

applied in the research regarding analysis and data collection. In the data analysis, part the

researcher transformed the data in systematic manner and analysed it. Finally, in the

conclusion the researcher provided the result of the research and recommendations. The

researcher has provided the recommendations in accordance with the smart objectives and

provided the timetable for the required tasks. The researcher has identified the organisation

needs to generate effective customer relationship management plan using the mobile

marketing in order to improve its customer loyalty in effective manner.

Acknowledgement

The author wishes to thank several people. I would like to thank my tutor, Mr. .......... for his

continuous support, knowledge and ideas helpful during the completion of the project. I

would like to thank my parents for their unending love and support. I would also like to thank

my supervisor Mr.................... for his help and for his direction with this project. Last but not

least, I would like to thank the line mangers, marketing managers from Nando’s Restaurant

and customers of Nando’s who helped me continuously in developing knowledge about the

dissertation.

Heartfelt thanks and warmest wishes,

Yours Sincerely,

Table of content

Chapter 1 .................................................................................................................................... 8

Introduction ................................................................................................................................ 8

1.0 Background of the Research ................................................................................................ 8

1.2 Problem Statement ............................................................................................................... 9

1.3 Rationale of the Study .......................................................................................................... 9

1.4 Research Aim ..................................................................................................................... 10

1.5 Research Objectives ........................................................................................................... 10

1.6 Research Questions ............................................................................................................ 11

1.7 Structure of the dissertation: .............................................................................................. 11

1.8 Summary: ........................................................................................................................... 11

Chapter 2 .................................................................................................................................. 13

Literature Review..................................................................................................................... 13

2.1 Introduction: ....................................................................................................................... 13

2.2 Customer Relationship Management (CRM): ................................................................... 13

2.2.1 Principles of Customer relationship management: ......................................................... 14

2.2.2 Customer-centric relationship management: .................................................................. 16

2.3 Customer loyalty: ............................................................................................................... 17

2.3.1 Monogamous loyalty versus the polygamous loyalty:.................................................... 18

2.3.2 Behavioural loyalty versus the attitudinal loyalty: ......................................................... 18

2.3.3 Model of building customer loyalty:............................................................................... 19

2.4 Mobile marketing: .............................................................................................................. 21

2.5 Gap of the literature: .......................................................................................................... 23

2.6 Conceptual framework: ...................................................................................................... 23

2.7 Summary: ........................................................................................................................... 24

Chapter 3 .................................................................................................................................. 25

Research Methodology ............................................................................................................ 25

3.1 Introduction: ....................................................................................................................... 25

3.2 Method Outline: ................................................................................................................. 25

3.3 Research onion: .................................................................................................................. 25

3.4 Research philosophy: ......................................................................................................... 26

3.4.1 Justification for the selection of the chosen research philosophy: .................................. 27

3.5 Research approach: ............................................................................................................ 27

3.5.1 Justification for the selection of the chosen research approach: ..................................... 27

3.6 Research Design: ............................................................................................................... 28

3.6.1 Justification for the selection of the chosen research design: ......................................... 28

3.7 Research purpose: .............................................................................................................. 28

3.8 Research strategy: .............................................................................................................. 29

3.9 Data collection procedure: ................................................................................................. 29

3.9.1 Source of the data: .......................................................................................................... 29

3.9.2 Data collection technique:............................................................................................... 29

3.10 Population and sampling: ................................................................................................. 29

3.11 Data analysis and interpretation: ...................................................................................... 30

3.12 Ethical consideration:....................................................................................................... 30

3.13 Summary: ......................................................................................................................... 30

Chapter 4 .................................................................................................................................. 31

Data collection and Findings ................................................................................................... 31

4.0 Introduction ........................................................................................................................ 31

4.1 Quantitative analysis .......................................................................................................... 31

4.2 Qualitative Data Analysis .................................................................................................. 43

4.3 Conclusion ......................................................................................................................... 45

Chapter 5 .................................................................................................................................. 46

Conclusion and Recommendations .......................................................................................... 46

5.0 Conclusion ......................................................................................................................... 46

5.1 Linking the objectives ........................................................................................................ 46

5.2 Recommendations .............................................................................................................. 48

5.3 Limitations of the research ................................................................................................. 49

5.4 Future Scope for the study ................................................................................................. 50

Reference List .......................................................................................................................... 51

Appendix 1: .............................................................................................................................. 56

Appendix 2: .............................................................................................................................. 57

Appendix 3: .............................................................................................................................. 58

Appendix 4: .............................................................................................................................. 59

Appendix 5: .............................................................................................................................. 60

Appendix 6: .............................................................................................................................. 63

List of figures:

Figure 1: Logo of Nando’s Restaurant....................................................................................... 8

Figure 2: Model of building customer loyalty ......................................................................... 19

Figure 3: Conceptual framework ............................................................................................. 23

Figure 4: Research onion ......................................................................................................... 26

Figure 5: different kinds of research philosophy ..................................................................... 26

Figure 6: Research Design ....................................................................................................... 28

Figure 7: Gender of the respondents ........................................................................................ 32

Figure 8: Age of the respondents ............................................................................................. 33

Figure 9: Tenure of being a Nando’s Customer....................................................................... 35

Figure 10: Response to the getting attracted through SMS from a company .......................... 38

Figure 11: Response to mobile updates as a part of CRM ....................................................... 39

Figure 12: Response to the combination of CRM and Mobile marketing providing extra value

.................................................................................................................................................. 41

Figure 13: Response to the competitor’s customer service ..................................................... 42

List of tables:

Table 1: Gender of the respondents ......................................................................................... 32

Table 2: Response to the gender of the respondents ................................................................ 33

Table 3: Tenure of visiting Nando’s restaurant ....................................................................... 34

Table 4: Response to the best features of CRM strategy of the organisation Analysis ........... 35

Table 4A: Statistical Analysis of Features of CRM................................................................. 36

Table 5: Issues in Nando’s Service .......................................................................................... 37

Table 5A: Strategic Analysis of issue of Nando’s Service ...................................................... 37

Table 6: Response to the getting attracted through SMS from a company ............................. 37

Table 7: Response to mobile updates as a part of CRM .......................................................... 39

Table 8: Response to the fact that Nando’s needs to focus on their Technology Adoption .... 40

Table 8A: Statistical Response to Nando’s needs to focus on Technological adoption .......... 40

Table 9: Response to the Combination of CRM and Mobile marketing provides extra value to

the product ............................................................................................................................... 41

Table 10: Response to the competitor’s customer service ....................................................... 42

Table 11: SMART objective .................................................................................................... 48

Table 12: Gantt chart for the SMART objectives .................................................................... 49

Chapter 1

Introduction

1.0 Background of the Research

As opined by Yan et al. (2013), customers are the biggest external stakeholders for any hotel

or restaurants. This is the reason why every successful restaurant tries to maintain a healthy

relationship with customers so that they can grow their company. CRM plays a vital role in

increasing the brand value of a company. In this research, the researcher will take Nando’s

Restaurant as the case study organisation and will focus on their CRM strategies, which they

have recently modified to increase their business.

Figure 1: Logo of Nando’s Restaurant

(Source: Nandos.co.uk, 2015)

As opined by Degbey (2015), recently fast food chain become very famous and continues to

increase in popularity. Nando’s was established in South Africa in the year 1987 and with

their unique menu have successfully penetrated various international markets. UK has been

one of their most successful ventures as the demand for fast food is extremely high in UK.

Nando mainly focuses on chicken dishes, which is their main strength and always tries to

attract customer and retain them with their CRM strategies.

As the demand of fast food in UK is increasing, day by day more and more international food

chains are penetrating the UK market, hence increasing the competition of the fast food

market of UK. The local street food vendors have also increased which saves time for the

people and they get food at quite a cheap rate (Shim et al. 2012). In this competitive scenario,

retaining and attracting customer has been a major issue for Nando’s. Moreover, they are also

failing to adopt the new technologies in marketing, which is mobile marketing.

1.2 Problem Statement

The main problem that the organisation is facing is because the adopting the concept of new

technique of marketing which is mobile marketing.

1.3 Rationale of the Study

What is the research issue?

According to Xu and Yang (2013), around 2.4 billion people of UK uses mobile phones and

statistics says that 350 billion text messages are exchanged across the world’s mobile

networks every month. This shows that how mobile has become one of the most important

medium of transferring messages. All the famous fast food chains like KFC, Dominos asks

for customer’s mobile number when they visit their stores and they keep on updating them

about their new products and offers. With this the customers also feels that the organisation

feels for them and gives value and this way a positive perception gets generated about the

organisation and the customers visits the stores again. This is the area where the case study

organisation Nando’s is lacking behind. This the main research issue of this dissertation.

Why is it an issue?

As opined by Behera (2011), it is an issue because in spite of providing quality foods and

delicacies the company is losing customer base. They are failing to identify their potential

customers because the customers who are coming to their store are having a normal

experience that they can have by visiting any of the local store. Nothing special is there in it

like the CRM strategies that the companies like KFC and Dominos provides to their

customers. In this competitive market where customers have a lot of options it has become

extremely important for companies like Nando’s to provide something extra value to their

customers. Pricing of the products is also a factor for the restaurant. Many customers feel that

the price of the items offered by the brand is extremely high as compared to KFC whose main

product is also chicken.

Why is it an issue now?

Due to the above-mentioned issues, the company has lost 35% of their customer base. It is a

huge matter of concern for the company, as they want to extend their market more by

opening outlets in other countries and places within UK also. According to Ellsworth (2010),

when the restaurant penetrated the UK market first penetrated the UK market they got huge

market response as it already had a brand image and the menus that the company offered was

suited to the culture and taste of the UK people. However, as the time went on many more

restaurants opened in the UK and looking at the demand of fast food many street food

vendors were also opened. At those street food vendors, a person can easily get their lunch at

a low price and quite quickly, whereas going to a restaurant is extremely 5 times more costly

and takes huge time. Hence, as per the scenario of the UK’s fast food, market the only

options that have been left for case study organisation is to retain their customers through

CRM strategies and using mobile as the mode of updating the information to their customers

(Greenberg, 2010).

What could this research shed light on?

This research will help Nando’s to know the exact reason for losing business and with the

recommendations provided by the researcher dealing with the issue will become easier for the

restaurant.

1.4 Research Aim

The aim of the research is to investigate that how the famous restaurant Nando can grow their

business through CRM strategies in a mobile marketing environment.

1.5 Research Objectives

 To identify the issues that arises during adoptions of the various CRM methods and

techniques

 To understand the importance of the adapted CRM methods on solving the issues

 To investigate the loopholes of the CRM strategies of Nando’s Restaurant

 To provide some relevant recommendations to the loopholes of their CRM policies in

the current mobile marketing scenario

1.6 Research Questions

As per the objectives, the research questions will be-

 What are the key issues in the customer management system of the company Nando?

 What are the effective standardisation and the adaptations policy of the business

management?

 What are the issues faced by the company in the adoption of the CRM strategies in the

current mobile marketing scenario?

 How the standardising and the adaptation techniques influence the Nandos’

performance?

1.7 Structure of the dissertation:

Chapter 1: The research aims, objectives, structure of the research and rationale will be

provided here.

Chapter 2: In this particular chapter, the researcher would identify the various theories,

models and concepts that are relevant to the research issues.

Chapter 3: The research methodology enables the researcher to identify the most appropriate

method for the research study.

Chapter 4: here the researcher interacts with the customers of Nando’s who has been the

customer of the restaurant for a long period.

Chapter 5: This chapter of dissertation sums up the research findings, analysis and various

interpretations.

1.8 Summary:

In this chapter, the researcher has provided an overview of the entire dissertation that will

enable the observer to gain a preliminary understanding of the aims, objectives and rationale

of the research study. in the following chapter the researcher will provide the details of the

theories and models that are relevant to the research.

Chapter 2

Literature Review

2.1 Introduction:

The explanation of the theories, concepts and the models will enable the researcher to gain

detailed knowledge regarding the various variables of the research issues. The research issue

concerns with the impact of the application of customer relationship management in the

mobile marketing environment on the customer loyalty (Andrews et al. 2012). In this

particular chapter of the research study, the researcher will study the various theories, models

and the concepts regarding the variables such as the customer relationship management,

customer loyalty and the mobile marketing environment.

The identification of the theories and the models regarding these variables will enable the

researcher to gain generalised conception of the research issue, which will be applied to gain

the more specific issues concerning the topic in context of the Nando’s restaurant. The

identification of the theories, concepts and the models will also enhance the quality of the

research study, as it will provide the researcher an opportunity to compare the outcome of the

primary data with the generalised secondary information that is gathered from secondary

sources such as the books, journals, websites, case studies and the articles.

2.2 Customer Relationship Management (CRM):

The customer relationship management of the CRM is identified as the system that enables

the business organisation to generate certain kinds of communication with the present as well

as the possible customers of the business organisation in order to generate relationship with

the customers in accordance with the organisational objectives and the organisational culture

(Chen and Hsu, 2013). The customer relationship management is crucial for the business

organisation in order to ensure the development as well as sustainability of the business

organisation in the competitive market.

El-Gohary et al. (2013) is of the opinion the business organisations apply various kinds of

strategies in order to establish the intended kind of relationship with the customers to improve

the business and the sustainability of the business organisation in the competitive market. The

organisations may apply various kinds of technology in the customer relationship

management, strategies in order to organise the interactive activities of the organisation. The

customer relationship management, strategies are applied in the marketing of the product,

customer service, the synchronisation of the sales and technical support section of the

organisation (Faase, R, et al. 2011). The customer relationship management strategies of the

organisation are designed in accordance with the need of the organisation and the

circumstances that raised the need of the customer relationship management (Jisc.cetis.ac.uk,

2015).

The customer’s preference is identified as the determinant factor of the success of a business

in the competitive market. Thus, the business organisation apply various kinds of strategies in

order to make the customer aware of the qualities of the products that they offer and also

generate positive perception among the products or the services of the organisation, which

may prove to be profitable for the organisation. As argued by Fraering and Minor (2013), the

customer’s perception on the other hand depends upon various factors such as the quality of

the product that the organisation offers to the market.

The value that the customers perceives in using the product, the opinion and the influence of

the peer, the society and the family of the customer as well as the organisation’s approach

towards the customer. Thus, the business organisations need to work on all these factors in

order to generate positive perception of the customer regarding the products of the

organisation. And the customer relationship management strategies prove to be one of the

most significant factors in the determination of the customer perception as well as customer

preference towards the brand as well as the product and the services availed by the

organisation (Jiscinfonet.ac.uk, 2015).

2.2.1 Principles of Customer relationship management:

The principles of the customer relationship management are generated based on the three

different kinds of the customer relationship management within the business organisation

such as the Collaborative customer relationship management, analytical customer relationship

management and the operative customer relationship management (Gurgul, 2012). These

different types of the customer relationship management determine the overall approach of

the organisation towards the management of the customer relation (refer to appendix 1).

Collaborative Customer relationship management: The collaborative customer

relationship management approach is identified as the approach that enables the organisation

to spread the information that are collected from the customers of the organisation among the

various departments of the organisation, such as the sales, technical support and the

marketing. The sharing of the information may enable the organisation to enhance the

outcome of all these department of the organisation as well as establish coordination among

the departments as it would enable the departments or the sections to work in order to meet a

single goal (Ha and Park, 2013). The interaction with the customers of the organisation can

be generated with the help of the web page, automated voice response, email, social network

or the direct interaction with the customer. The organisation attempts to generate its strategies

in accordance with the feedbacks that have been gained from the customers of the

organisation in order to meet the needs of the customers in better manner in the future

(Www2.le.ac.uk, 2015).

On the other hand, Helm and Tolsdorf (2013) argued that the gathering of the information

from the customers or the future customers of the organisation enables the business

organisation to identify the customer’s current perception of the organisation as well as its

products, which is essential in order to identify the effectiveness of the existing strategies of

the organisation. For example, the feedback that the organisation may gather from the tech

support session may enable the its employees of the organisation as well as the management

of the organisation to identify the kinds of products or the services the customer will like to

consume in future. This may enable the organisation to develop its products or the services in

accordance with the preferences of the customers.

Operative customer relationship management: The operative customer relationship

management enables the business organisation to bestow the entire job of the customer

communication upon a single person. As the process will enable the person or the employee

to identify the entire, history of the customer, which will prove to be profitable for the

organisation to identify the changing preferences of the customers in accordance with the

changing, circumstances (Hovančáková, 2011). This will also enable the organisation to

identify the various steps of the process of the communication with the present as well as the

prospective customers of the organisation through a single perspective. This will be profitable

to establish a link between the behaviours of the customers in the various steps of the process

of the customer interaction or the customer communication (Jacob and Bruns, 2014). In this

process, the responsibility of the analysis incorporates the identification of the different kinds

of customers in terms of their choices of the products.

This will enable the organisation to be able to access the history of the customers of the

organisation by enabling the person to conduct the entire process of the communication that

begins from marketing of the product or the brand incorporates the sales. This also includes

after sales activities and finally the collection of the feedbacks form the customers of the

organisation (Kaplan, 2012). The entire process would be helpful in identifying the

customer’s purchases behaviour as well as the perception of the customer regarding the

products of the organisation in accordance with which the organisation may determine its

future-plans as well as the strategies.

Analytical Customer relationship management:

The analytical Customer relationship management enables the organisation to support the

back office operations as well as the analysis of the customer data of the organisation

(Khodakarami and Chan, 2014). This enables the organisation to analyse the information that

is collected through the operative CRM in order to utilise the feedbacks of the customers in

the data analysis process of the organisation that is essential to determine the organisational

approach towards the customers in order to reach the customer relationship in accordance

with the organisational objective and the organisational culture.

2.2.2 Customer-centric relationship management:

The customer centric relationship management refers the distinctive approach of the customer

relationship management in which the preferences of the customers are given the utmost

importance. In this strategy, the customer’s preferences are given more importance than the

customer “leverage”. This strategy has been generated in order to make use of the gradual

advancement of the communication technology in the business of the organisation (Makasi,

2014). The advancement of the communication technology has enabled the business

organisation to reach its customers in considerable manner; this has also provided the

organisation opportunity to identify the preferences of the customers in easier as well as

systematic manner.

Thus, the business organisations intended to generate complete understanding of the

preferences as well as expectations of the customers to generate competitive advantage in the

market. This also ensures the organisation of the repurchase of the customers, which is an

essential part of the generation of the customer loyalty. The customer centric relationship

management enable the organisation to identify the preferences of the individual customers,

which also help the organisation to generate customer centric services. The customer centric

relationship management also attempts to enable the customers to take the decision of

purchase in order to meet their needs in better manner by enabling them to identify their

needs in ways that are more specific. Mao (2010) argued against the effectiveness of the

customer centric relationship management and said that the theory puts undue emphasis on

the customer’s preferences and overlooks the other factors like the quality and the

authenticity of the product.

2.3 Customer loyalty:

The customer loyalty refers to the attitudinal behaviour of the customers that is performed in

favour of a single brand or product. That is to say, the customers of the organisation would be

identified as loyal if the customers repeat the act of purchase of same product or from the

same brand instead of opting for some other brand. The customer loyalty may be generated

due to various reasons such as the satisfaction that the customer derives from the use of the

product or the service provided by the organisation, the convenience in reaching or gaining

the product or the experience that that product avails to the customer.

This may also include the sense of familiarity or the sense of belonging that the customer

generates for the product. The customer loyalty enables the customer to repeat the purchase

of a product or from a single brand (Winters and Ha, 2012). The customer loyalty ensures the

business organisation of a certain amount of sale, which ensures the organisation its existence

in the competitive market. It has been identified that the business organisations need put a lot

more effort in convincing a new customer to purchase their product than in retaining the

existing customers (reefer to appendix 2).

Thus the business organisation emphasise on retaining the customers and generating the

customer loyalty to ensure the sustainability of the business in the competitive market. The

business organisations engage into various kinds of activities in order to retain the loyalty of

their customers, such as the generation of the loyalty schemes and customer relationship

management. In terms of the level of the loyalty of the customer, the customer loyalty can be

classified in different patterns such as the monogamous loyalty and the polygamous loyalty

(Interactive, B. 2015).

2.3.1 Monogamous loyalty versus the polygamous loyalty:

Monogamous loyalty refers to the kind of loyalty in which the customer is identified as 100%

loyal to a single brand, this kind of loyalty is also identified as the hard-core loyalty. The

business organisations generate various kinds of schemes in order to generate hard-core

loyalty among the customers of the organisation. The monogamous loyalty not only ensures

the organisation of the repeated purchase of the customer, it also comes with certain extra

advantages. For example, the monogamous customer tends to influence the purchase decision

of the other customers as well in favour of the business organisation. Tirkey (2012) argued

that the monogamous loyalty is rare in the present scenario as the existence of the various

options for the purchase decisions enable the customers to opt for different brands in order to

identify their features as well as their advantages.

Another reason for the polygamous behaviour among the customers is that majority of the

business organisations apply some of the loyalty schemes in order to maintain the loyalty of

the customers and the customers may intend to gain advantage of the loyalty schemes of all

these organisations. Polygamous loyalty refers to the purchase behaviour of the customer in

which the customers tend to show their loyalty to more than one organisation in the market.

For example, the customer may perform repeated purchase from three different competitors

existing in the market unfailingly. This makes the customer partially loyal to three of the

organisations but not 100% loyal to any of these organisations. Such kinds of loyalty are

more common in the present scenario. The business organisations profit from these kinds of

loyalty as well thus the organisations generate strategies to gain more share of the loyalty of

the customers by introducing strategies such as the customer relationship management

(Marketing Donut, 2015).

2.3.2 Behavioural loyalty versus the attitudinal loyalty:

Various scholars defined the concept of the customer loyalty towards the brand or the product

of the business organisation in terms of the behavioural aspects. According the behavioural

aspect of the brand loyalty if a customer performs the act of purchase several time of a single

product or from a single brand in spite of the reasons then the customer is identified as loyal

towards the product or the brand. The majority of the loyalty programmes developed in the

business organisation is generated in order to ensure the further loyalty of the customers

rewards the behavioural loyalty of the customers. On the other hand, the attitudinal loyalty

emphasises more on the psychological attachment of the customers of the organisation with

the product or the brand. This particular loyalty is measured in terms of the customer’s

emotional or psychological bonding with the product or the brand; in case of such loyalty, the

customers often identify the product or the brand as a part of their being. This enables the

customers to not only repeat the purchase decision but also influence the other customers to

perform the purchase in favour of the brand, which they are loyal to (Sharp, 2009). It has

been identified that the behavioural loyalty focuses more on the repetition of the purchase

while the attitudinal loyalty emphasises more on the psychological belonging highest level of

which often generates monogamous loyalty.

2.3.3 Model of building customer loyalty:

The business organisations apply various kinds of processes in order to generate loyalty

among the customers of the organisation (Tsao et al. 2009). The organisations apply various

kinds of loyalty sachems in order to retain the loyal customer and to influence the purchase

decision of the future customers of the organisation. The business organisation attempts to

generate the customer loyalty by performing various activities to retain as well as develop the

preferences of the customers in order to enable them to generate highest level of the loyalty

with the product as well as the brand. The following figure provides an understanding of the

process of the brand loyalty building:

Figure 2: Model of building customer loyalty

(Source: Roberts-Lombard, 2012, pp. 234)

Loyalty

Incentives

Making the customers

feel special

Givin them more than

expected/ reward

Customer satisfaction

The first step of the model of building customer loyalty contains the customer satisfaction.

This enables the business organisation to generate their product or the services in accordance

with the expectation as well as preferences of the customers. In order to do so the

organisation needs to identify the expectation and the preferences of the customers through

market research. This will enable the organisation to generate customer satisfaction, which is

to enable the customer to remain loyal with the organisation (Roach, 2009). Once the

organisation becomes able to generate the customer satisfaction then the organisation

attempts to ensure the repeated purchase of the customer, by availing some reward to the

customer or availing something more to the customers through the loyalty cards or the loyalty

schemes. This enables the customers to develop their preference further towards the product

or the service or the brand (Nguyen and Mutum, 2012). Then the organisation attempts to

identify the preferences of the customers by gathering their feedbacks and attempts to deliver

to the customers in accordance with their needs and the preferences.

This informs the customers that the organisation perceive them to be important or special.

Such activities contribute highly to the customer loyalty as the customers always identify

more with the organisations that make them feel important and that seem to value tem as the

customers. Incentive is another important strategy that enables the organisation to motivate

customers in various other ways. As has been stated by Berney (2010) and opposed by Krum

(2010), The business organisations engage into different kind of activities in this stage such

as the reward of direct interaction with the customers of the organisation, providing them,

special discounts and merchandises as well as socialising with them. As opposed by

Goldsmith, (2010), economic benefit provided to the customers during the process of the

purchase seems to be more of a weak strategy that is engaged at the earlier stages of the

loyalty programmes in order to generate preliminary interest among the customers regarding

the organisation.

Meyer‐Waarden et al. (2013) argued that the more socio-cultural involvement with the

customers through the arrangement of the dinner with the loyal customers, special seminars

to inform the loyal and valued customers about the future plans of the organisation and

gathering their feedbacks, arrangement of the cricket tournament and tree plantation

programmes. Such kinds of social interaction with the customers in part of the organisation

enable the organisation to generate comparatively stronger customer loyalty (Buttle, 2009).

As the social involvement of the organisation with the customers, enable the customers to

generate certain sense belonging with the organisation and generates positive perception in

the customers regarding the organisation and its activities. Witkowska (2010) argued against

that model and stated that even though the model provides an impressive perspective of the

loyalty development it fails to present the complete perspective of it (for further details refer

to appendix 2).

2.4 Mobile marketing:

In the last few decades the mobile marketing has immerged as one of the most popular as

well as effective means of communication in part of the business organisations in order to

promote their brand as well as their product directly to the possible customers of the

organisation. The mobile marketing can be described as the marketing activity that utilises

the mobile devices such as the smart phones in order to reach the customers in better manner

(Buttle and Maklan, 2015). The mobile marketing has been able to provide the opportunity of

addressing the customers at the most convenient way which enables the organisation to

generate time as well as location sensitive promotional strategies to market their product or

the services. As opposed by Dushinski and Marriott (2009), the mobile devices are identified

as one of those devices that the customers are constantly connected and personally associated.

Thus, through the generation of the marketing activities that are designed in order to reach the

possible customers through mobile devices enable the business organisation to reach the

customers at any time and at any place (Marketing-schools.org, 2015) (refer to appendix 3).

This also enables the business organisation to gain the information regarding the preferences

of the customers in much easier as well as efficient way. Another important reason why the

business organisations tend to prefer the mobile marketing is that the mobile marketing of the

product enable the business organisations to reach various kinds of customers through a

single marketing strategy (Harden and Heyman, 2009). In case of the mobile marketing the

business organisation gains an opportunity to reach various market segments with the help of

single marketing strategy. This also enables the business organisation to reach the customers

personally and gather information regarding their preferences and expectations, which plays

significant role in the generation of an effective customer relationship management,

programme, which is essential in order to improve the customer loyalty towards the products

of the organisation as well as the brand (Kumar and Petersen, 2012). Some of the mobile

channels through which the business organisations enable their advertisements as well as

promotions to reach the customers are given bellow:

SMS Marketing- Short Message Services or the SMS is identified as one of the simplest as

well as the most primitive way of marketing that is applied in the mobile marketing

strategies. Yet, Okazaki (2012) opposed this conception and stated it has been identified as

one of the most wide spread processes. Statistics show that around 100 million promotional

SMSs are sent in the Europe every month. This engages the customer to search for the details

regarding the offerings of the organisation.

MMS Marketing- the organisations generate MMS marketing in order to provide some

details about the product or the brand to the customers (Okazaki, 2012). The MMS may

include advertising videos or slideshows including text, images, audio and video.

In-game mobile marketing- the business organisations deliver promotional messages

between the mobile games as well, which enables the organisation to generate awareness

regarding their product among the people that prefer to play mobile games (Pasqua and Elkin,

2013). On the other hand, Pearson (2012) stated that the organisations might sponsor the

mobile games, as such kinds of promotional strategies are also known as the mobile

advergaming.

App-based Marketing- the app based marketing enables the business organisations to

engage into the marketing process in more direct manner (Pousttchi and Wiedemann, 2010).

The app based mobile marketing allows the organisation to generate direct engagement with

the customers and perform the process of mobile transaction and payment; this also enables

the organisation to generate target advertising. Adalikwu, (2012) added that with the

immergence of the smart phones the use of the mobile apps for the shopping has also

increased, thus the organisations generate marketing strategies in accordance with this notion.

QR Codes- the quick response codes or the RQ codes enable the customers to scan the 2D

images through the web cameras and use those RQ codes to enter a website instead of

entering the URL that is the Uniform Resource Location, manually (Collado Agudo et al.

2012). The business organisations avail certain RQ codes to the customer through television

or printed advertisements in order to encourage the customers to search for the

advertisements of the their products. Denk (2010) argued that the uniqueness of the

advertisement through the RQ codes encourage the customers to search for details of the

advertisements (Smspromotions.org, 2015) (for further details refer to appendix 4).

2.5 Gap of the literature:

Even though the theories and the models presented in the chapter provide an over view of the

research issue yet they fail to provide the complete understanding of the relationship between

the different variables f the research, for which the researcher will gather the primary data.

2.6 Conceptual framework:

Figure 3: Conceptual framework

(Source: Created by the author)

Mobile marketing

environment

Effect

Customer Relationship

Management (CRM)

Principles of Customer

relationship

management

Collaborative CRM

Operative CRM

Analytical CRM

Customer-centric

relationship

management

Customer loyalty

Monogamous loyalty

versus the polygamous

loyalty

Behavioural loyalty

versus the attitudinal

loyalty

Model of building

customer loyalty

2.7 Summary:

Through the study of the theories, concepts as well as the models concerning the different

variables of the research issue it has been identified that the immergence of the mobile

marketing has generated various kinds of new processes following which the business

organisations can generate an effective customer relationship management strategy. The

customer relationship management has always be an effective as well as significant means to

ensure the customer loyalty, yet with the emergence of the various new competitors in the

market the customers tend to be more polygamous than the monogamous, as the advancement

of the technology has enabled the customers to reach the various options easily. Thus, it has

become very essential for the business organisation in the mobile marketing environment to

generate an effective customer relationship management to ensure the customer loyalty.

Further understanding of the research issue will be gained with the help of the collected

primary data and the research methodology as well as data collection process will be

presented in the following chapter.

Chapter 3

Research Methodology

3.1 Introduction:

The research methodology enables the researcher to identify the most appropriate method for

the research study that may contribute to the researcher’s understanding of the research issue

as well as the completion of the research in a systematic manner. Yet the research

methodology does not ensure the researcher of the result or the outcome of the research,

instead the research methodology enables the researcher to identify the appropriate approach

to the research issue following which the researcher to gain the appropriate result of the

research study.

3.2 Method Outline:

For the completion of the research study, the researcher has identified the positivism as the

appropriate research philosophy for the research study while the researcher has identified the

deductive research approach to be appropriate. More over the researcher has identified the

descriptive research design to be suitable research design for the completion of the research

study. The research has chosen feedbacks from 50 customers of Nando’s restaurant of the

organisation following the probability sampling method for the sampling quantitative data

collection process. The researcher for the qualitative data collection process has chosen 5

managers of the Nando’s restaurant following the probability sampling method.

3.3 Research onion:

The research onion is one of the most popular tools that are used in order to gain the result of

the research study in a gradual manner. The research onion is not a single process, rather it

consists of six different layers of processes following each of which the researcher progresses

each step closer to the result of the research study. The six layers of the research onion are the

research philosophy, research approach, research strategies, choices, time horizons,

techniques and processes.

Figure 4: Research onion

(Source: Saunders et al. 2009, pp. 52)

3.4 Research philosophy:

The research philosophy can be identifies as the guideline for the research study. The

research philosophy helps to determine the nature of the research study with the help of the

concepts such as the epistemology and the ontology. Based on the nature of the research issue

the research philosophy can be of four different types.

Figure 5: different kinds of research philosophy

(Source: Salkind, 2010, pp. 42)

Research

philosophy

interpretivism realism positivism post-positivism

By following the interpretivism research philosophy the researcher gains the understanding

of the social reasons that stimulated the research study. In case of realism research,

philosophy the researcher gains the opportunity to identify the direct reasons behind the

research study while the positivism research philosophy enables the researcher to apply

various kinds of experimental processes in order to identify the research issue and to gain the

result of the research study. On the other hand, the post-positivism enables the researcher to

identify that even though there is existence of the reality, yet the reality cannot be reached.

Thus, the propositions that are identified, as realities are human conjures that are supported

by the human warrants in accordance with the commonly believed notions.

3.4.1 Justification for the selection of the chosen research philosophy:

The researcher has identified the positivism as the appropriate research philosophy for the

research study, which will enable the researcher to apply various kinds of experimental

processes in order to gain the result of the research study. The result of the research study

may be enhanced with the help of the implementation of the experimental processes.

3.5 Research approach:

The research approach enables the research to rearrange the gathered information in different

manners in accordance with the needs of the research issue. Thus, the research approach

guides the analysis of the different kinds of data that are gathered by the researcher in order

to provide the intended result of the research study (Van Berlo et al. 2014). The inductive

research approach enables the researcher to transform the specific information into the

generalised statement and theories while the deductive research approach enables the

researcher to deduce from the generalised theories. That is to say, the deductive approach

enables the researcher to gather specific knowledge of the research issue with the help of the

generalised theories and models.

3.5.1 Justification for the selection of the chosen research approach:

The approach that has been identified as appropriate for this particular research study is the

deductive research approach. Throughout the research the researcher has not introduced any

new theory or any generalised as well as theoretical outcome has been gained during the

research thus the inductive research approach cannot be applicable in this study. On the other

hand, the researcher has utilised the theories, concepts and models in order to gain

understanding of the research study.

3.6 Research Design:

Based on the research issue the research designs are of four different types.

Figure 6: Research Design

(Source: Grand and Jonas, 2012, pp. 37)

The researcher opts for the exploratory research design when the researcher is uncertain of

the research issue while the researcher opts for the explanatory research design when the

researcher possessed limited number of theories and concepts concerning the research issue.

The researcher applies descriptive research design when the researcher possesses significant

awareness of the research issue as well as has considerable idea regarding the research

process. The researcher applies the correlation research design when the researcher

possesses ample amount theories and the models to gain the knowledge regarding the

research issue.

3.6.1 Justification for the selection of the chosen research design:

The researcher possesses considerable theories, concepts as well as models regarding the

research issue and has identified proper guideline for the completion of the research study

thus the appropriate research design that has been identified for the research study is

descriptive research design.

3.7 Research purpose:

In this particular research study, the researcher the researcher will attempt to analyse the

collected primary data with the help of the secondary data thus the purpose of the research

identified by the researcher is analytical.

Research

Design

exploratory explanatory descriptive correlation

3.8 Research strategy:

The research study provides the plan of action following which the researcher conducts the

research study. As the researcher will attempt to gather quantitative as well as qualitative

information through questionnaires and interviews from the informants in order to gain

complete understanding of the research issue the appropriate strategy for the research study

will be survey.

3.9 Data collection procedure:

The data collection process consists of two various kinds of methods, which enables the

researcher to gather data with the help of which the researcher gains the result of the research.

3.9.1 Source of the data:

The data are collected from two different kinds of sources. The theories and models that

provide generalised understanding of the research issue are gathered from secondary sources

such as books, journals, websites and case studies while the primary data are collected from

the feedbacks of the customers and the managers of Nando’s restaurant.

3.9.2 Data collection technique:

The researcher has applied two different techniques for the collection of the primary data for

the research study. The quantitative data collection technique enabled the researcher to gain

numerical data from the customers of the organisation. For the quantitative data, the

researcher distributed survey questionnaire among 50 customers of the organisation through

social network fan page of the organisation among which 30 feedbacks were properly filled

thus the researcher used only the 30 properly filled questionnaires for the data analysis. On

the other hand, for the qualitative data collection process the researcher approached

marketing and line managers of the organisation among which 3 marketing managers and 2

liner managers agreed to participate in the process. Thus, the researcher gathered their

feedback through telephonic interview.

3.10 Population and sampling:

The population of the data collection process could have included all the stakeholders of the

organisation such as the employees, owners, suppliers, investors and distributers that could

have enhanced the quality of the study. Yet due to the limited time and budget, the researcher

had to limit the study in 30 customers for quantitative data and 5 managers for the qualitative

data of the organisation. The selection of the sample has been done according to the

probability sampling method. Thus, the total sample size of the research is 35 including 30

customers, 3 marketing managers and 2 line managers.

3.11 Data analysis and interpretation:

The researcher followed mixed data analysis and interpretation process to analyse the

qualitative as well as quantitative data that have been collected from the managers and the

customers of the organisation respectively.

3.12 Ethical consideration:

In order to avoid any ethical obligation the researcher gained written permission from the

authority of Nando’s restaurant. On the other hand, the researcher also ensured the

confidentiality of the information and assured the informants that they may leave the process

at any stage of the research. The researcher has also ensured that the information gathered

from the data collection process is used for academic purpose only.

3.13 Summary:

In this particular chapter, the researcher provided the information regarding the various

methodologies and approaches that are followed during the process of the research study and

collection of the data. The data that has been collected following the process will be

transformed into table forms for systematic analysis in the following chapter.

Chapter 4

Data collection and Findings

4.0 Introduction

This section is one of the most important sections of this dissertation as here the researcher

interacts with the customers of Nando’s who has been the customer of the restaurant for a

long period. The tables and charts that will be presented in this will show the Data collection

of this chapter. In this chapter, the researcher will also interact with 5 managers of the food

chain. Out of them 3 is the restaurant manager and 2 will be the marketing manager.

4.1 Quantitative analysis

Quantitative data in the particular study is the perception of the regular customers who visits

at least once in a week in Nando’s restaurant.

Q 1) What is your Gender?

Options

No of Respondents

Total number of

Respondents

Response %

Male

46%

Female

54%

Transsexual

No comments

Table 1: Gender of the respondents

Figure 7: Gender of the respondents

Findings and analysis

In the above figure and diagram, it can be seen that 46% of the respondents are male and 54%

of the respondents are female.

In can be seen that majority of the population is female from this it can be interpreted that

women loves more the chicken items provided by the restaurants than a male. Though 46% of

male is not a poor percentage, hence it can be interpreted that people from any gender loves

the lip smacking treats that the restaurant offers to their customers.

2) Which age group do you belong to?

20%

40%

60%

Male

Female

Transexxual

No Comments

Options

No of Respondents

Total number of

Respondents

Response %

Less than 18 years

10%

From 18 years to

25 years

30%

From 26 years to

35 years

20%

From 36 years to

30%

Table 2: Response to the gender of the respondents

Figure 8: Age of the respondents

Findings and Analysis

This is one of the major question as from here it is seen that age is no bar from visiting

Nando’s. Though the people below 18 years has received the low percentage because they

prefer eating from a street food stall rather than going to a restaurants. 30% of the age

category belongs to the age category of 18-25 years. This shows that the youth loves to have

the chicken items offered by Nando’s. Even it is seen that 30% of the respondents also

belongs to the age group this is also justified as the majority of people falling under the age

group of 36-45. This section is working somewhere because of which they have a purchasing

power and on weekends, family dinner is a wonderful option for them to spend their time

with families. It is also seen that 10% of the population belongs to the age category of more

than 45 years.

Q3) For how long you have been coming to Nando’s?

Less than 18

years

From 18 years to

25 years

From 26 years to

35 years

From 36 years to

45 years

More than 45

years

10%

30%

20%

30%

10%

Respondents’ Age

45 years

More than 45 years

10%

Table 3: Tenure of visiting Nando’s restaurant

10%

15%

20%

25%

30%

35%

40%

Less than 1

year

From 1 year

to 3 years

From 4 years

to 7 years

8 to 10 years

More than 10

years

Options

No of Respondents

Total number of

Respondents

Response %

Less than 1 year

From 1 year to 3

years

From 4 years to 7

years

From 8 year to 10

years

More than 10 years

Figure 9: Tenure of being a Nando’s Customer

Findings and Analysis

In this particular question it is seen that none of the respondent is having tenure of less than 1

year the majority of the respondents is having coca-cola for more than 8 to 10 years and the

least percentage of people having the brand is from 1 to 3 years. This proves that people loves

the foods provided by the restaurant. The brand is operating decades in UK since 1992 and

still growing strong. This is the reason why in this question the researcher has also found out

responses of visiting the restaurants for more than 10 years which is rare for a survey on

restaurant.

Q 4) In the last 2 years the restaurants has modified their CRM strategies and included many

features in their CRM strategy. Out of those strategies which are the one that is the best for

satisfying service?

Table 4: Response to the best features of CRM strategy of the organisation Analysis

Mean

Median

Mode

Options

No of Respondents

Total number of

Respondents

Response %

Special Discounts for

family dinners

Club Card scheme

Sending Greetings

on special Days of

the customer

Providing Feedback

form

Special Discounts for

aged customers

3.48

Table 4A: Statistical Analysis of Features of CRM

Findings and Analysis

In this question it can be seen that the mean is 3.48 which is close to 4 that suggests that

majority of the respondents has voted for the 4

option that is providing the feedback form

for the customers to fill so that they can give their own opinions regarding the food quality,

service quality and other various aspects. The mean and Mode is also similar which is 4

which means that majority of the population has voted for the 4

and 5

option that is special

discounts to the aged people and providing the feedback form. The other options like special

discounts for family diner and sending greetings via phone or letting people to know about

the various offers of has got very less votes which means these strategies has been applied but

not executed properly, hence the organisation has to look on this factor.

Q. 5 What is the prime issue you encountered with the service of Nando’s Restaurant?

Choices

No. of participants

Total no. of

participants

Response %

Poor customer

service

Poor

communication

Low standard

technology

Inefficient query

and compliant

management

Short range of food

items

Table 5: Issues in Nando’s Service

Mean

Median

Mode

S.D

1.106567

Table 5A: Strategic Analysis of issue of Nando’s Service

Findings and Analysis

From the above tables and findings it can be seen that 10% of the people believes that the

restaurant have a bad customer service. 20% believes that the restaurants have a poor

communication system. 40% believes that they have extremely low standard of technology,

20% of the student believes that they do not respond much to the complaint only 5% have

shown objection on their short range of foods.

This is the reason mean, median and mode has come 3 and S.D is 1 which is a big difference

from other options. This shows that the organisation has to work on their technology

adaption. This also gives an idea that why the organisation has failed to do effective mobile

marketing.

Q 6) Do you agree that getting sms from any organisations regarding their product and

service appeals you?

Table 6: Response to the getting attracted through SMS from a company

Options

No of Respondents

Total number of

Respondents

Response %

Strongly agree

20%

Agree

28%

Neutral

12%

Disagree

20%

Strongly Disagree

20%

Figure 10: Response to the getting attracted through SMS from a company

Finding and Analysis

From the above table and figure it can be seen that majority of the population that is 48% has

agreed with the fact that customer retention strategies does make an impact on their purchase

making decision as they get to know about the latest offers. 12% of the population has

remained neutral on this and around 40% of the total population completely disagrees with

the fact that these factors actually appeal them. Still it can be seen that as majority of the

population believes that this process of sending sms to their mobiles from organisations

appeals them they should look at this issue firmly.

Q 7) How far do you agree that giving updates about latest recipes and menus is an

effective way of giving value to customers like you?

10%

20%

30%

Strongly

Agree

Neutral

Disagree

Strongly

Disagree

Options

No of Respondents

Total number of

Respondents

Response %

Strongly Agree

30%

Agree

40%

Neutral

10%

Disagree

20%

Strongly Disagree

Table 7: Response to mobile updates as a part of CRM

Figure 11: Response to mobile updates as a part of CRM

Findings and Analysis

It is seen that majority of the population agrees that receiving updates is definitely an

effective CRM process as they feel that it makes them feel that the organisation actually gives

them values and makes them feel good and the positive image about the organisations also

gets generated in the eyes of the customers. This is the reason 70% of the customer feels that

receiving sms is an effective CRM strategies. 5% of the population has remained neutral on

this and 20% of the population has completely disagreed with this fact.

Q 8) How far do you agree that the Nando’s needs to focus on their technology

adoption?

Strongly Agree Agree Neutral Disagree Strongly disagree

Series 1

Options

No of Respondents

Total number of

Respondents

Response %

Strongly Agree

60%

Agree

30%

Table 8: Response to the fact that Nando’s needs to focus on their Technology Adoption

Mean

Median

Mode

S.D

2.064516

1.09935

Table 8A: Statistical Response to Nando’s needs to focus on Technological adoption

Findings and Analysis

From both the tables it can be seen that 90% of the respondents feels that the organisation

really needs to focus on their Technology adoption. According to them their CRM process

are quite good but in this aspect they are lacking behind. This is the reason the mean is 2.06

and the median is also 1 and the mode is also 1 and S.D is close to 2. This proofs that

majority of the population has voted for option 1 and 2.

Q9) How far do you agree that the combination of both CRM and Mobile marketing

gives value added service?

Options

Number of

respondent

Total respondents

% of respondents

Strongly Agree

48%

Agree

20%

Neutral

Disagree

12%

Strongly Disagree

20%

Neutral

Disagree

Strongly Disagree

Table 9: Response to the Combination of CRM and Mobile marketing provides extra

value to the product

Figure 12: Response to the combination of CRM and Mobile marketing providing extra

value

Findings and Analysis

From the above findings, it can be seen that around 48% of the population strongly agrees

with the fact the combination of CRM and Mobile marketing is an effective way for

providing values to the customers. 20% also agrees with this fact, 0% of the population has

remained neutral on this case, and 12 and 20% of the population disagrees and strongly

disagrees with this fact.

This makes it more clear that how important the CRM strategies and mobile marketing has

become to retain customers.

Q 10) Apart from Nando’s whose customer service do you prefer?

Options

Number of

respondent

Total respondents

% of respondents

KFC

20%

Burger King

30%

Strongly Agree

48%

Agree

20%

Neutral

Disagree

12%

Strongly Disagree

20%

Mc Donald’s

30%

Dominos

20%

Table 10: Response to the competitor’s customer service

Figure 13: Response to the competitor’s customer service

Findings and Analysis

From the above figure and findings, it can be seen that Nando’s has a huge threat from its

competitors on the aspect of customer service or CRM strategy. It is seen that 20% of the

population prefers the customer service of KFC, 30% loves the customer service of Burger

King, another 30% loves the service of Mc Donald’s and the last 20% of the customers loves

the customer service of Dominos. This proves that if the CRM issues are not solved properly

then the organisation will lose more customer base as Nando’s is still lacking pretty much

from the these organisation in terms of customer service. Some had objections against their

relationship, which they maintain with the customers. Many feel that while visiting their

store, they did not have a good experience.

KFC Burger King Mc Donalds Dominos

4.2 Qualitative Data Analysis

This particular section will describe the viewpoints of the managers of Nando’s. It will be

impossible to reach the manager of extreme higher designation as they do not have time

because of their busy schedule. Therefore, the researcher will interact with 3 marketing

managers and 2 line managers of Nando’s.

Q 1) In spite of having such and lip smacking menu list what has been the reason for

decline in market share of Nando’s?

As per the first marketing manager when Nando’s came in the UK market in the year 1992

there were hardly any competitors in the fast food market of UK. As the time want on more

and more international franchise like KFC came in the UK market and many local competitor

following the menu style of Nando’s also came in. These factors created more options for

their customers. According to the third marketing manager all those new restaurants provides

low price on their foods. He also told that he has a firm doubt on their product quality but as

people find it is cheap, they are shifting to those restaurants. According to the 1

line

manager Nando’s has also some policies that need to be upgraded and modified. According

to him he has heard many people saying that Nando’s service and process of customer

relationships needs to be upgraded. According to the second line manger they are looking at

this issue seriously and hopefully within few months there will be some solution to the

problem.

So it can be interpreted from the opinion of the 2

line manger that they are thinking of some

strategies and those strategies will be put into action shortly.

Q 2) What are your views on the concept of mobile marketing as CRM strategy?

According to the 2

marketing manager mobile has definitely become one of the most

effective medium of communication. Since Smart Phone came in the scene the job of

marketers have become easy as they can easily send key information is regarding their

products and services via SMS. Initially they used to think that it is effective only for those

who are new in the market but gradually they realised that they were wrong and sending SMS

does not means that the customer gets updated, sending SMS also means that making the

customer realise that how much they value to a organisation. The 2

marketing manager also

supported this fact and told that this mistake of ignoring the concept of mobile marketing has

been realised by us and now the company has decided some more innovative and outstanding

strategies that will come as a surprise to all the rivals of Nando’s.

According to the 1

line manager Nando’s is a brand and has always satisfied each and every

person who came in to any outlets to try some exclusive Parsi dishes. According to him their

chickens with vegetables is still a item that every food lovers crave for. Hence it is just about

time and soon the brand will return with a bang with some exclusive CRM strategies which

will be totally technology oriented and will make sure that no one can even reach up to that

technology.

Q 3) What are the exact areas that the organisation needs to focus on to gain maximum

competitive advantage?

On this question, the first marketing manager commented that definitely the mobile

marketing strategies are one of the areas where the company will be focussing to gain

competitive advantage. According to the second marketing manager, the organisation is in a

talk with some of the worlds famous chefs because they are want to launch some new

varieties of menus that the British people have never tasted before; a brief research behind

this is going on so that the people of UK like the taste. The second Line manager stated that

the organisation is also looking for some of the changes in their pricing strategies but it will

take some time as quality cannot be put into considerations for profit.

Q 4) What is the main objective of the company? Is it the customer satisfaction of

increase in profitability?

According to the 1

line manager of Nando’s customer is the heart of their business. So

customer satisfaction is definitely the primary objective of the company. As per as profit is

concerned, it will come by default if they are being satisfy the customers and successfully

retain them. As per the viewpoint of the 2

line manager lots of things have been included in

the CRM policies in last 2 or 3 years. Now customers can easily give their orders online and

the food will be delivered within 30 minutes as per the location of the order. The environment

of the outlets has also been changed as on every evening some of the quality singers of UK

comes and entertains the customers The restaurant has a plan to increase the rate of such

music events and make it more frequent so that music also becomes a part of the brand value

of Nando’s.

The 2

marketing manager stated that the main reason behind their legendary success has

been the ability of the company to satisfy the customers with food quality and customer

service. “Now due to a bit of change of scenario competitive companies are providing extra

value added service and investing a lot on advertising and promotions and new concepts like

mobile marketing are successfully adopted by the competitors. It’s sad that customers are

overlooking these factors and giving importance to other factors like different value added

service that those companies are providing”.

4.3 Conclusion

The knowledge gained through this chapter about the importance of mobile marketing as a

CRM strategy is remarkable. It can be concluded that the CRM strategies of Nando’s has got

mixed perception in the eyes of the customer and it is also found that the managers of the

organisation have also realised the issue and soon some new steps will be taken by the

organisation to deal with the issue.

Chapter 5

Conclusion and Recommendations

5.0 Conclusion

This chapter of dissertation sums up the research findings, analysis and various

interpretations that have been provided by conducting the primary and secondary research.

Every finding that has been obtained is to make sure to be discussed in context of the CRM

strategies of Nando’s and the mobile marketing is also included. This chapter attempts to link

the research objectives with the findings that have been obtained through the research. At the

end of the chapter, there are some recommendations made by the researcher and along with

those recommendations some research limitations and the scope of further research is also

mentioned by the researcher.

5.1 Linking the objectives

Linking with objectives is an extremely important for the research as it determines the

success or failure of research work and as per the research topic. The findings that are

obtained are analysed which will give a clear picture of the success or failure of the

dissertation.

Linking objective 1: To identify the issues that arises during adoptions of the various

CRM methods and techniques

This objective clearly is fulfilled in all the three portions of the dissertations. Those portions

are literature review, quantitative and qualitative research. In the literature review, the

concept of CRM has been clearly identified. There are various strategies given on CRM

adoption process. In chapter 4, quantitative analysis section Question 8 directly relates with

this issue. It can be seen that 90% of the respondents feels that the organisation Nando’s has

some problem regarding the adoption of technology and the company needs to look at the

factor precisely. In the Qualitative portion the researcher has found that how important the

medium mobile has become and they have realised adoption of these new kinds of

technological issues, which are directly related to CRM has been a problem for the

organisation.

Linking Objective 2: To understand the importance of the adapted CRM methods on

solving the issues

This objective has also been made understood in all the three sections, which are the literature

review, qualitative and quantitative portion of chapter 4.

In the literature review, it is found through various types of CRM process that how important

it has become for the various organisations including a restaurant like Nando’s in retaining

their customers and make them loyal to the company through providing quality and value

added service. In chap 4, quantitative portions there are questions 5, 6, 7 and 8 are the

questions that relates with the above objective. It is seen that many customers feels that they

when they get SMS from various company where they have visited recently a positive

perception regarding that organisation is automatically created.

Linking Objective 3: To investigate the loopholes of the CRM strategies of Nando’s

Restaurant

This objective has been clearly analysed in the chapter 4 in both quantitative and qualitative

section. In the quantitative analysis section there are questions asked to the customers of

Nando’s restaurant CRM strategies in Q 4, Q5 and Q 8. In all those questions, it has been

seen that they are somehow satisfied with the product quality and taste and pricing also but

the major problem is their recognizing customer ability which they find in other restaurants

like KFC. It is seen that almost 90% of the respondents have agreed with the fact that the

Organisation needs to work on technology adoption techniques. This is one of the major

loopholes of their CRM strategies specially the mobile marketing strategy and hence this

objective has been clearly identified by the learner.

In Q2 and Q3 of the qualitative section, the managers have also told the importance of

mobile marketing - how important it has become in the context of Customer relationship

management. They have accepted that, it is a big loophole in their CRM strategy, hence they

also want to work it and their managerial department is looking at the issue very seriously. In

Q 8 of chapter 4 quantitative parts and Q 2 of qualitative part, this topic is discussed briefly.

In the quantitative portion, it is clearly seen that a large number of population believes that

The managers have also accepted this fact.

Linking Objective 4: To provide some relevant recommendations to the loopholes of

their CRM policies in the current mobile marketing scenario

In the chapter 4 and chapter 2 the researcher has discussed about various challenges regarding

CRM strategy in context of mobile marketing. Now as per those challenges, some

recommendations will be provided.

5.2 Recommendations

The recommendation are provided within smart objective because it is unnecessary for the

organisation

Specific

The specific objective that Nando’s needs to follow are to use mobile as a medium of

marketing. They need to provide information about their various menus and discounts and

they can also send greetings on the customers special days like birthday, anniversaries and

other days.

Measurable

After applying this strategy they need to check regularly need to measure that how this new

strategy is increasing their growth in business.

Achievable

As the brand already is famous for its extraordinary cuisines so applying this strategy won’t

be a problem for them. So it should be achievable and if they want to increase their business

then this is must.

Relevant

This is very relevant to the organisation because it is seen while interacting with the

customer that they are not satisfied with the Technology adoption in CRM strategy of the

company. Hence adopting this strategy is definitely relevant to them

Time-Based

To achieve the objective there should be a time limit. After a time interval a periodic review

should be there to judge the effectiveness of it. Then only they will successful in attracting

huge number of customers through Mobile Marketing.

Table 11: SMART objective

(As created by the author)

This recommended objective will should take not more than one year for getting applied. The

time table for the application of the objective is given below.

Actions

Month

1-3

Month

4-6

Month

6-7

Month

7-9

Month

10-12

End of

the year

Table 12: Gantt chart for the SMART objectives

(Source: As created by the author)

It is not necessary that to apply this strategy the organisation should take more than 1 year.

Hence, the steps that the management of Nando’s should take are broken into various parts

and accordingly it should be applied by the restaurants.

5.3 Limitations of the research

The biggest limitations of this research are the restricted timeframe provided for this research.

Apart from this, the budget allotted for this research is not high because of which in-depth

primary data collection has not been possible by the researcher. The sample size selected for

this research is also very less which consists of 5 managers and 30 customers of Nando’s

restaurant. This reduces the scope of collecting quality quantitative data as well as

quantitative data. The time constraints increase a huge pressure on the researcher and

submission of other assignments also distracted the researcher from concentrating on this

research work. For the quantitative research making the customers agree in participating the

research is a real matter of concern.

Taking personal details (Mobile

Number, Birthday, Anniversaries) of the

customers visiting the restaurants

(recommendation 1)



Analysing and putting hose data on the

restaurants operating system

(recommendation 2)



Sending Greetings on their special days

and providing information about new

dishes. (recommendation 3)



Receiving customers feedback

(recommendation 4)



Revise and review



5.4 Future Scope for the study

Although the researcher prepares the current dissertation under strict restrictions, it does have

certain positive aspects, thereby providing directions for future research. The research

findings in chapter 4 can be definitely used as the secondary source for future studies. The

future researcher can definitely conduct a research work on a similar topic by using the

information that will be gained after going through this research work. In addition, future

researchers can also work on a comparative study of the other organisations similar to

Nando’s in order to compare and contrast the customer retention strategies that they develop.

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Appendix 1:

CRM principles

(Source: http://www.opf.slu.cz/aak/2011/04/heczkova.pdf)

Appendix 2:

(Available at: http://blog.cibmp.org/?p=37)

If there was a perfect model for customer loyalty within a firm, what would it be? Or,

what should companies strive to achieve within the loyalty domain? People often ask

me these questions, and others like it. I thought it would be a good continuation from

my last blog to share with you what a good benchmark for loyalty would be.

First of all, there is not such thing as a perfect loyalty model. In a perfect world, all of

your customers would be emotionally loyal. However, it is only in text books that we

have a perfect economy, a perfect monopoly, or perfect competition. Such things do not

exist in the real world. Thus there is no need to aspire to create a perfect loyalty

model. Instead, we should aspire to achieve an optimal, or preferred model.

Before I begin to talk about a preferred loyalty model, I wanted to discuss what most

companies look like in terms of loyalty.

From a loyalty perspective, most of the customers are behaviorally loyal. They are

there because they are ‘stuck’ to the company due to barriers. These barriers are price,

location, convenience, etc. A smaller percentage of customers is made up of the

attitudinally loyal customers. These customers like the company, and prefer it, but are

willing to switch. Yet even a smaller percentage of customers are the emotionally

attached. These customers are the most profitable, but they form a very small

percentage of the total customers a firm has. Most of the organizations, I would guess

around 99.99% of the companies across the globe, would fall somewhere in this

model. However, this is not the best model.

Companies need to aspire to improve to a ‘greener pasture’. The preferred model looks

something like this:

Notice, in this preferred state, all of the loyal customers are not emotionally

attached. The main reason for this is that it would be impossible to achieve

that. Moreover, no company would want all of their customers to become emotionally

attached. For instance, high servicing customers may not be profitable for a firm, and

hence they would not want them to become emotionally attached.

Interestingly there are organizations that would be classified in this state at the

moment. These would include sports fans, music fans, and people who donate to not

for profit organizations. The only catch is, all of these organizations are not, what we

would consider as ‘normal’ businesses. However there are some companies that are

pretty close to this. As Jack, mentioned in the comments to my last blog, Apple is one

company, which may fall under this. However, I would add that it would be Apple,

before the launch of ipod. After the launch of ipod, Apple has gained many new

customers, and I believe that the percentage of emotionally attached would have gone

down considerably. Despite that fact, Apple still has a large percentage of emotionally

attached customers. Harley-Davidson would be another example of a company that

would be close to this model.

From a B2B perspective, even in the preferred state, the emotionally attached customers

would be much smaller. Instead, the attitudinally loyal segment would be the biggest

one. If you read my past blogs, you will understand that its much harder to get B2B

companies to become emotionally attached.

Appendix 3:

(Available at: http://www.marketing-schools.org/types-of-marketing/mobile-marketing.html)

For what kinds of customers is mobile marketing effective?

As of April 2012, mobile devices were in use by some 234 million Americans (out of a total

population of 312+ million), with 107 million of these using smartphones. The class of

smartphone users—about a third of the U.S. population now, and projected to be more than half

of the population by 2015—are not defined by demographics (age, race, or class), but by shared

behaviors.

At the top of shared behaviors is media “snacking”—users tune in frequently for short periods of

time (such as while waiting in a line), and are quick to change from one usage to another

whenever there’s a dull moment. This pursuit of instant gratification (not just for entertainment,

but also for completing practical tasks, such as getting information on a product) results in an

increased consumption of content—and therefore, more points of contact for marketers.

Facts About Mobile Phone Users: 74.1% use text messaging, 50.2% download apps, 49% use a

web browser, 36% access social networking, 33.1% play games, 25.8% listen to music on phone.

Meanwhile, iPad users number some 50 million. The most common age group of users is 25-44,

divided nearly evenly between men and women. Additionally, iPad users tend to make somewhat

more money than the average population, and those users tend to be regular travelers who often

use their iPads on airlines, trains, and buses.

Smartphone and iPad users respond differently to mobile advertising. For most mobile device

users, being informative was perceived to be the most important quality in an ad, followed by

relevance. In contrast, iPad tablet users are more likely to pay attention to interactive ads with

striking colors and place less emphasis on content..

How is a mobile marketing campaign developed?

When developing a mobile marketing campaign, marketers should develop multiple channels,

while keeping their message consistent throughout (See also Integrated Marketing). The easiest

channel to start with is short message service (SMS)—basically, texting customers. SMS—and its

souped-up companion, multimedia message service (MMS)—is an opt-in service, so companies

already know their marketing messages are viewed by a receptive audience.

About 98 percent of all SMS messages are read (95 percent within 15 minutes), so this is a very

receptive market. But SMS messages must be extremely targeted and brief to meet text size limits

(usually 160 characters). Copy must communicate:

What is the product/service?

What is the benefit for the consumer?

How does the customer take action?

In order to keep an audience receptive, businesses typically make the message interactive. For

example, you can take a poll on upcoming products or offers, to find out what the customer is

most interested in—and customers like providing feedback. Also, keep track of your opt-out

rates: opt-outs may be a signal that you’re messaging too often (or conversely, an absence of opt-

outs is a signal that you can increase your message frequency). Start with two to four messages

each month, and then adjust according to customer response.

A QR code

Outside of SMS messages, mobile marketing has also begun to incorporate newer technoloqies.

QR codes (an example of which is featured to your right) are symbols that can be scanned by

mobile devices to take them to specific content. Such content can be primarily informational

(perhaps describing the features of the product), but can also include a persuasive call to action.

Remember, if the customer has scanned the QR code, he or she is already interested in the

product.

Appendix 4:

(Available at: http://www.smspromotions.org/advantages.html)

Disadvantages of mobile marketing:

For most mobile phone marketing, the advantages far outweigh any disadvantages compared

to standard web based advertising. Mobile phone marketing is cheaper, faster, portable,

advertising is personalized, it has a good customer relationship model and even has its own

built in payment networks. Mobile devices have everything that a business could wish for to

make customers and products come together strategically.

The disadvantages of mobile phone marketing are simple, but still have reasonable limitations

that are yet to be overcome. There are four main areas that cause problems with the public

for businesses and are due to these disadvantages in mobile phone marketing. Each is

something that most users have expressed in a majority and globally to degrees.

The first area is a problem with the development of mobile devices and the associated

technologies. Lack of standardization in mobile device technologies is a continuing problem.

Mobile phones are even less standardized than personal computers before them were.

Mobile phones are as varied in screen sizes, operating systems and browsers that it makes

mobile phone marketing options a nightmare in some ways. This area must be addressed for

the public to ever be truly satisfied with the current technological advances

The next area has been an issue since the invention of the computer itself. Lower privacy

standards than are acceptable to the public on the whole, are a major issue. Privacy is always

a question when it comes to mobile devices. For the mobile phone marketing sector, this

must be overcome every time a new campaign of mobile advertising is launched. The

disadvantages from this stigma are crucial to the further development of mobile phone

marketing in the future.

There has long been a problem in technology, from as far back as the automobile with

navigation. Navigation is problematic at best for most newer technologies. Since the average

mobile devices are small, so are the keypad and screens. This is a continual exercise in

patience for most users and an absolute source of fury for others. This must be addressed,

beyond the touch screen and QWERTY keypad advancements. Perhaps in the coming decades

this will become a priority for the current innovators globally. It is a disadvantage to mobile

phone marketing, for if the user does not like driving then it is hard to sell them a car.

Appendix 5:

Survey Questionnaire

Name:

Location:

Contact No. Email ID:

Dear participant,

You are sincerely requested to complete the questionnaire to the best of your knowledge and

belief. Your response is extremely important for this survey and of great help. I assure you

that your personal details and response will be kept confidential.

Your participation is solemnly solicited

Q 1) What is your Gender?

 Male

 Female

 Transsexual

 No comments

Q 2) Which age group do you belong to?

 Less than 18 years

 From 18 years to 25 years

 From 26 years to 35 years

 From 36 years to 45 years

 More than 45 years

Q3) For how long you have been coming to Nando’s?

 Less than 1 year

 From 1 year to 3 years

 From 4 years to 7 years

 From 8 year to 10 years

 More than 10 years

Q 4) In the last 2 years the restaurants has modified their CRM strategies and included

many features in their CRM strategy. Out of those strategies which are the one that is

the best for satisfying service?

 Special Discounts for family dinners

 Club Card scheme

 Sending Greetings on special Days of the customer

 Providing Feedback form

 Special Discounts for aged customers

Q. 5 What is the prime issue you encountered with the service of Nando’s Restaurant?

 Poor customer service

 Poor communication

 Low standard technology

 Inefficient query and compliant management

 Short range of food items

Q 6) Do you agree that getting sms from any organisations regarding their product and

service appeals you?

 Strongly agree

 Agree

 Neutral

 Disagree

 Strongly Disagree

Q 7) How far do you agree that giving updates about latest recipes and menus is an

effective way of giving value to customers like you?

 Strongly agree

 Agree

 Neutral

 Disagree

 Strongly Disagree

Q 8) How far do you agree that the Nando’s needs to focus on their technology

adoption?

 Strongly agree

 Agree

 Neutral

 Disagree

 Strongly Disagree

Q9) How far do you agree that the combination of both CRM and Mobile marketing

gives value added service?

 Strongly agree

 Agree

 Neutral

 Disagree

 Strongly Disagree

Q 10) Apart from Nando’s whose customer service do you prefer?

 KFC

 Burger King

 Mc Donald’s

 Dominos

Appendix 6:

Transcripts:

Q 1) In spite of having such and lip smacking menu list what has been the reason for

decline in market share of Nando’s?

marketing Manger: “when Nando’s came in the UK market in the year 1992 there were

hardly any competitors in the fast food market of UK. As the time went on more and more

international franchise like KFC came in the UK market and many local competitor following

the menu style of Nando’s also came in. These factors created more options for their

customers”

Marketing Manger: “all those new restaurants provides low price on their foods. I have a

firm doubt on their product quality but as people find it’s cheap they are shifting to those

restaurants.”

line manager: “Nando’s has also some policies that need to be upgraded and modified.

According to him he has heard many people saying that Nando’s service and process of

customer relationships needs to be upgraded”

Line Manager: “We are looking at this issue seriously and hopefully within few months

there will be some solution to the problem”.

Q 2) What are your views on the concept of mobile marketing as CRM strategy?

marketing manager: “mobile has definitely become one of the most effective medium of

communication. Since Smart Phone came in the scene the job of marketers have become easy

as they can easily send key information’s regarding their products and services via SMS.

Initially we used to think that it is effective only for those who are new in the market but

gradually we realised that we were wrong and sending SMS does not means that the customer

gets updated, sending SMS also means that making the customer realise that how much they

value to a organisation”

marketing manager: “this mistake of ignoring the concept of mobile marketing has been

realised by us and now the company has decided some more innovative and outstanding

strategies that will come as a surprise to all the rivals of Nando’s.”

line manager: “Nando’s is a brand and has always satisfied each and every person who

came in to any outlets to try some exclusive Parsi dishes, our chickens with vegetables is still

a item that every food lovers crave for. Hence it is just about time and soon we will return

with a bang with some exclusive CRM strategies which will be totally technology oriented

and will make sure that no one can even reach up to that technology.”

Q 3) What are the exact areas that the organisation needs to focus on to gain maximum

competitive advantage?

marketing manager: “definitely the mobile marketing strategies are one of the areas where

we will be focussing to gain competitive advantage”

marketing manager: “ We are in a talk with some of the worlds famous chefs because we

are want to launch some new varieties of menus that the British people have never tasted

before, a brief research behind this is going on so that the people of UK like the taste.”

Line manager: “the organisation is also looking for some of the changes in their pricing

strategies but it will take some time as quality cannot be put into considerations for profit”.

Q 4) What is the main objective of the company? Is it the customer satisfaction of

increase in profitability?

line manager: “customer is the heart of our business. So customer satisfaction is definitely

the primary objective of the company. As per as profit is concerned, it will come by default if

they are being satisfy the customers and successfully retain them.”

line manager: “lots of things have been included in the CRM policies in last 2 or 3 years.

Now customers can easily give their orders online and the food will be delivered within 30

minutes as per the location of the order. The environment of the outlets has also been

changed as on every evening some of the quality singers of UK comes and entertains the

customers The restaurant has a plan to increase the rate of such music events and make it

more frequent so that music also becomes a part of the brand value of Nando’s”.

marketing manager: “the main reason behind our legendary success has been the ability of

our company to satisfy the customers with food quality and customer service. Now due to a

bit of change of scenario competitive companies are providing extra value added service and

investing a lot on advertising and promotions and new concepts like mobile marketing are

successfully adopted by the competitors. It’s sad that customers are overlooking these factors

and giving importance to other factors like different value added service that those companies

are providing.”

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"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."

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