1. what type of service product is Peri-Peri offering?

The service/product offered and provided by Peri-Peri Original is the fast food chain service.

Peri-Peri Original is a UK-based fast food chain, their main star of their menu is the grilled
chicken, the most demanded by their customers and it served them through various full-
service restaurants where food was their main product, since then, the brand had been
expanding with approximately more than 40 stores operating across the globe, including
Europe, the Middle-east, Africa and Asia

The inspiration behind Peri-Peri was the casual restaurant concept of Nando’s, the
mozambician-themed food brand. However, Peri-Peri and Nando’s were still confused in
consumer’s minds because both brands are providing almost the same menu, for example,
both brands menu items included chicken tenders, chicken pieces, wings, burgers and wraps.

Nevertheless, under tangibility spectrum, all the products offered by Peri-Peri Original are
considered and under at Fast-food Outlets due to the fact of having a balanced mix of tangible
and intangible elements, the various menu items are clearly tangible and the intangible
elements are the use of the facilities.

(Source: Slideshare)
Besides, the core products of Peri-Peri Original are nuggets, chicken pieces, and burgers, which
are already offered by global and local food chains. Therefore, Peri-Peri compete its quality
brands with fast food giants in Pakistan such as McDonald’s and KFC

2. What is the actual brand positioning of Peri-Peri?

In terms of brand positioning, Peri-Peri is offering the food with moderate pricing and high value
strategy. For example, the food price at Peri-Peri is moderate when compared with other food
chains. Besides, the company believed in equality, truthfulness, respect for all and mutual trust.
Therefore, Peri-Peri is having an excellent human resource policy for long-term employees in
order to ensure their happiness as happy employees can provide high quality service in return.
Peri-Peri believes that if an employee is happy, they will provide high quality service in return,
leading to a great customer satisfaction and therefore great revenues, and the way Peri-Peri
achieves this employee happiness is by providing equality and respect for all

Moreover, as a service organization, Peri-Peri believe in the following four core brand values
which significantly make the company different from the others in the marketplace. These four
brand values were related to ambiance, food quality, service and experience. These four core
brand values come from:

1. Ambiance: Where the stores were located in Pakistan, it was mostly in malls and
porches, being safety and easy access for both, customers and employees, the most
important factor in the decision of locating a Peri-Peri store. Internally, the set-up of
the stores and in generally the ambience provided once you are inside the store,
meaning seating plans, cleanliness, fragrance of meals and space, etc. These internal
factors make customers enjoy their time even more, providing a unique experience
and a better and nicer place to work for employees.
2. Service: Since it is considering a fast food restaurant their lead-time must be the
minimum possible, the staff has to be friendly and well-mannered staff and they
have a customer-driven market approach.
3. Food quality: The raw food they use to prepare their famous food is unique, they
bring their products, specially the chicken on a daily basis from Pakistan’s leading
chicken processing brand, Metro stores and other high quality local brands and most
important, their famous peri-peri sauce and various types of sauces offered at Peri-
Peri, such as lemon and herb, mild, hot and extra hot are imported from the United
Kingdom.
4. Experience: Meaning the environment at the stores, it relates a bit to the ambiance
value, but the difference is, experience relates to comfort for customers, several
entertainments to attract families and the cleanliness of the stores.

A big problem that Peri-Peri has in Pakistan is that Pakistanis tend to think that Peri-Peri and its
close competitor Nando's are the same company, or even the same restaurant. Yes, they both
sell the same type of chicken, the famous Peri-Peri chicken but they are not the same restaurant.
In addition to the large fast food competitors that are always in every country, American giants
such as McDonalds, Kentucky Fried Chicken (KFC), among others.

(Peri-Peri Charcoal Chicken and Sauce bar 2013)

In this table above of how the Peri-Peri chicken restaurant see themselves in terms of brand
positioning, we can see how in addition to the four core values seen above (ambiance, food
quality, service and experience), they also consider they are strong in these other five, such as
attributes, meaning their affordable price, their variety in products, their cleanliness, among
others. Second, they consider their restaurant gives the customer the opportunity to share a
meal, giving the customer the perfect environment to strengthen their relationships, their
restaurant is a casual dining, people don’t need to go overly dressed, which makes it more
comfortable, fun, friendly, etc. for customers and last, they say their essence is the taste, their
products are full of taste and flavor, the special and distinctive flavor of the Peri-Peri sauce.
 3. What are the key issues facing Peri-Peri as a brand that can hinder the success of
brand in future?

According to the case study, there are main two main key issues that can hinder the
success of Peri-Peri brand in the future namely:
a) Service Marketing
b) Corporate growth

Service marketing is marketing based on relationship and value as it may be used to market
a service or a product. Marketing a service-base business is different from marketing a
product-base business.
Types of service that Peri-Peri offers in terms of service marketing:
 Core Services is the service that is the primary purpose of the transaction as
for example: Peri-Peri believed in the following four core brand values:
ambiance, food quality, service and experience.
 Supplementary Service is the services that are rendered as corollary to the
scale of a tangible product.
Peri-Peri is taking into consideration the seven Ps as shown as in the Figure “The 7 Ps of
Service Marketing” as they are more focus on place, people, product and process as they
wanted to expand their business and these 4 Ps as stated above are the main key issues of
the service marketing for Peri-Peri as for example: places is not effective when they expand
to other location, people and process will be affected.
Because this 7 Ps of service marketing help Peri-Peri to compete with other business rivals
but mostly Nando follow the same.
In terms of service marketing, due to the expansion strategy, the core values of Peri-Peri
will be affected as “ambiance” describes the location of stores in Pakistan were in porches
and safe areas with an access for customer and provided a unique experience for customers
to enjoy their time and “service” referred to customer-centric market vision, friendly and
well-mannered staff and minimum lead-time as stated in the article. By expanding, Peri-
Peri will have to look for a new unique location where people love to hang out in groups
and family which will be more costly for the brand in terms of rental of premises, research
about the areas, provide training for the new staffs, wages and many more that’s to an
operating cost in a business. The second main core problem will be the services as Peri-Peri
wants its customers to experience a customer-centric market vision and just to the
expansion, Peri-Peri must be able to provide a unique experience to its staff in such a way
that customers will be happier when they are being served and this is very costly in the
views of the brand Peri-Peri as if the service is bad, no customers would come again with
their friends or family to experience Peri-Peri and the brand is very conscious about that
and that’s why Peri-Peri invests a lot in the training of its staff as well as buying them
higher salary and providing them a lot of facilitates.
Corporate growth is described as a company is growing can be highly ambiguous as when a
company experience strong sales growth but simultaneously be losing market share and
experience financial losses due to its competitors which is in the case of Peri-Peri. Due to
McDonald and KFC, Peri-Peri finds it essential to expand its business in other places as
both competitors are catering to the needs of children-catered products because the youth
market is very attractive as they can easily influenced to buy burgers and because of
McDonald and KFC, Peri-Peri will have look for new strategy to attract the youth. As
Nando is the main competitor, Peri-Peri will have to adapt a new product category its
business in order to be successful, profitable and competitive.
There is a problem of obesity as well because doctors, parents and social activists are
raising their voice to counter the problem of obesity caused by junk food such as Peri-Peri,
Nando, McDonald and KFC as Pakistan is the 9th most obese nation in the world and
according to a survey, 89% of people said that fast food is preferred over traditional food
when they go out with friends and family but on the other side 70% people believed that
fast food leads to obesity and fast food is used as taste and convenience.
4. What should be the decision and why?
Brand Extension is the use of an established brand name in new product categories
as this category to which the brand is extended can be related or unrelated to the
existing product categories. A successful brand such as Peri-Peri will benefit more
the launching product in new categories more easily as Peri-Peri will give rise to a
brand extension is referred to as parent brand. If the customer of Peri-Peri has
values and aspirations matching those of the core business.
Extending a brand outside its core product category can be beneficial in a sense
that it helps evaluating product category, identifies resources requirement, lowers
risk and measures brand’s relevance and appeal.

The advantages of brand extension will help Peri-Peri to make acceptance of new
product as it increases the brand image and the risk perceived by the customers
reduces as the likelihood of gaining distribution and trial increases because Per-
Peri is an established brand name origin from UK which increases consumer
interest and willingness to try new product having the established brand name.
The efficiency of promotional expenditure increases where advertising, selling and
promotional costs are reduced as there are economics of scale as advertising for
core brand and its extension reinforces each other and cost of developing new
brand is saved. Peri-Peri’ existing customers can now seek for a variety as there are
packaging and labeling efficiencies.

However, brand extension in unrelated market may lead to loss of reliability if a

brand name is extended too far as Peri-Peri must research the product categories
in which Peri-Peri brand name will work and there is a risk that the new product
may generate implications that damage the image of the core brand. There are
chances of less awareness and trial because the management may not provide
enough investment for the introduction of new product assuming that the spin-off
effects from the brand name will compensate and if the brand extensions have no
advantage over competitive brands in the new category, then it will fail.

Peri-Peri should go ahead with the youth segment because since it’s planning to
expand the business to other locations. It should open to unique location specially
in food court where there is university near as students will love to hang over in
groups in the Peri-Peri during class breaks as they will experience the unique
services of Peri-Peri. They will recommend the brand to other friends which will
help the brand to be successful and profitable as students will order the food and
sometimes, they might prefer takeover as well.
Not only students that will come to eat, staffs also from the university will come to
eat and enjoy themselves.
They should also open in parks where youth loves to eat and enjoy with their
partners as well.