Dec 14, 2007

Behind the scenes: How Maybank helped Nando’s fast food chain reverse rapidly decreasing sales

Launched in Malaysia in September 1998, Nando’s restaurant specializes in chicken-based menu items. At the beginning of 2006, it was hit by a severe drop in sales sparked by two key factors: the threat of bird flu and the oil crisis. Malaysians became reluctant to travel by car to eat the famous Nando’s Peri-peri chicken. Maybank saw an opportunity to help Nando’s.

"Maybank created a promotion for the Nando’s outlet in the Mid-valley mall, one of the largest in Kuala Lumpur," says Welcome's Pierre Boces. "It involved 12 awarding merchants located in the mall, including GNC, Dockers, Hush Puppies, and others. Nando’s was the unique redeeming merchant."

For every 50 ringgits (Malaysian dollars) spent with a Maybank card, in a single transaction, at one of the 12 awarding merchants, the Maybank cardholder received a coupon entitling him/her to enjoy a ¼ peri-peri chicken for only 99 sen (cents). The coupon could only be redeemed in Nando’s outlet at the mall. The promotion lasted two months, starting May 1st 2006. Tent cards were set up on tables and counters at Nando’s and each of the 12 awarding merchants. Maybank cardholders received fliers with their monthly statements and a billboard was displayed in the mall.

"The promotion was a success for Nando’s and the 12 awarding merchants," says Pierre. "Although Maybank cardholders had to spend 50 ringgits at any of the awarding merchants, they got a ¼ peri-peri chicken for only 99 sen– a saving of 14 ringgits. Customers came with their families and spent more than just 99 sen on a ¼ chicken. The average ticket size by Maybank cardholders at the 12 awarding merchants during the promotion was 50 ringgits – 42% higher than the average ticket size of 35 ringgits prior to the promotion."

"The promotion was a real win for Maybank," says Pierre. "Maybank was contacted by many other merchants at the mall, asking to take part in the promotion, either as an awarding or a redeeming merchant."

The average spend on Maybank cards at Nando’s climbed from 73 ringgits six months before the promotion to 101 ringgits during the promotion. It continued growing, thanks to the momentum of the campaign, and eventually reached 121 ringgits six months after the end of the promotion.

The case study can be downloaded here.

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