Marketing ; Branding ; Internationalisation ; Fast food industry ; Global business

Josi McKenzie, Marketing Director of fast food chain, Nando's International, considered the development of Nando's International since she had joined the company in June 1992, when there were 12 stores in South Africa, and international exposure was limited to Australia and the United Kingdom. The company had performed extremely well once again in 2003, with the result that Nando's had more than trebled its number of stores over the 16 years since inception. By the end of 2003, there were a total of 450 stores throughout the world, 186 of them being in South Africa. McKenzie felt good about this record, especially because the group had managed to improve market share in an extremely competitive industry and a volatile global economy. However, she felt that there was enough potential in the company to perform even better on a global basis in 2004. Since 1997, when 27% of Nando's stores were located in international markets, that figure had grown to almost 60% by the end of 2003. Nando's ascribed this success to two strategic approaches. Firstly, it had latterly focused on a 'hubbing' growth strategy as opposed to a 'shotgun' strategy. This meant that the company had concentrated on developing existing geographic regions, chiefly the Middle East and Asia, instead of taking any opportunity that presented itself. Secondly, it had placed a greater emphasis on the correct positioning of the Nando's brand in each of its international markets. The critical issue up for debate for 2004 was 'which hub should be developed next'?