tag:theconversation.com,2011:/africa/topics/nandos-8941/articlesNando's – The Conversation2021-08-20T15:28:07Ztag:theconversation.com,2011:article/1665212021-08-20T15:28:07Z2021-08-20T15:28:07ZNando’s chicken shortage: how the pandemic has made supply and demand tougher to predict<figure><img src="https://images.theconversation.com/files/417223/original/file-20210820-21-hzemij.jpg?ixlib=rb-1.1.0&rect=88%2C55%2C3007%2C2014&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/londonunited-kingdomdecember-26-2016-chicken-peri-1624518565">Shutterstock/easyknotcoco</a></span></figcaption></figure><p>Peri-peri chicken fans were disappointed and frustrated when Nando’s announced the <a href="https://www.bbc.co.uk/news/business-58249337">temporary closure</a> of nearly 50 restaurants. A chicken shortage has been blamed, and while reactions to the closures were <a href="https://www.capitalxtra.com/news/which-nandos-shut-closed-brexit-chicken-shortage-run-out-reactions/">satirised on social media</a>, the problem is a serious challenge for the company. </p>
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<p>Hungry customers will no doubt be asking whether the supply could have been better managed. Similar questions were more widely raised at the beginning of the pandemic when <a href="https://theconversation.com/coronavirus-why-people-are-panic-buying-loo-roll-and-how-to-stop-it-133115">supermarkets ran out</a>
of toilet roll and flour. </p>
<p>Some blamed poor planning by retailers, but spikes of demand like this had not been seen before. And the pandemic continues to disrupt established supply chains.</p>
<p>A recent <a href="https://www.theguardian.com/business/2021/mar/21/global-shortage-in-computer-chips-reaches-crisis-point">shortage of microchips</a> for example is partly due to increased demand for appliances such as phones and games consoles, and a <a href="https://time.com/5866156/coronavirus-surge-asia-lessons/">resurgence of coronavirus cases</a> in Asia (where most microchips are made). The situation is so serious that Toyota is being forced to temporarily cut <a href="https://www.nytimes.com/2021/08/19/business/toyota-production-slowdown-chip-shortage.html">vehicle production by 40%</a>.</p>
<p>Pandemics aside, patterns in demand for goods generally show fluctuations from day to day and from week to week. Some of these are explainable and predictable, for example because of known periods of high demand, like Bank Holiday weekends. </p>
<p>Other changes defy explanation or prediction and are described in statistical forecasting models as “noise”. And although the nature of the next “noise disturbance” is not known, its impact can be measured and taken into account when setting stock levels. But even this careful approach breaks down when there is a sudden spike in demand, unlike anything that has previously occurred. </p>
<p>The current shortages of chicken at Nando’s are due to disruptions in supply, rather than demand, which could not necessarily have been expected. </p>
<p>From a forecasting perspective, sudden changes in supply are similar to sudden changes in demand. Inventory control systems usually base their stock calculations on a regular lead time (the length of time from placing an order to when the product arrives and is ready for the customer). </p>
<p>If there are occasional minor variations in the lead time, the calculations can be adjusted accordingly. But again, such an approach breaks down if there is a sudden major problem unlike any others that have gone before. </p>
<p>In this situation, we should have some sympathy for Nando’s. It would be incredibly wasteful of them to carry large stocks of raw chicken in anticipation of a possible major disruption. </p>
<h2>Chicken out</h2>
<p>If they were to do this in normal times, a significant proportion of meat would be unused and go off. Clearly, this is not a viable solution. </p>
<p>Instead, the problem of major disruptions calls for a different approach to forecasting, known as scenario planning. The problem at Nando’s seems to have been caused by labour shortages at their suppliers. And while the timing of labour shortages could not have been anticipated, their occurrence – at some point – could have been foreseen. </p>
<p>In a scenario planning exercise, managers imagine major causes of disruption that could happen in the future. This sort of exercise will never be perfect, and some events will remain uncovered, but this should not deter progress being made by thinking through potential supply chain problems and the company’s response. </p>
<p>For example, if an organisation is reliant on a single supplier for a product, then they may consider introducing a second supplier, who will also receive regular orders and can flex to respond to higher order volumes if there are problems at the first supplier. </p>
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<img alt="A serving of chips on a board." src="https://images.theconversation.com/files/417237/original/file-20210820-19-16yeeir.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/417237/original/file-20210820-19-16yeeir.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/417237/original/file-20210820-19-16yeeir.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/417237/original/file-20210820-19-16yeeir.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/417237/original/file-20210820-19-16yeeir.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/417237/original/file-20210820-19-16yeeir.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/417237/original/file-20210820-19-16yeeir.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">When the chips (and the chicken) are down.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/tasty-french-fries-on-cutting-board-273398612">Shutterstock/Africa Studio</a></span>
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<p>This can also help to address responses to unexpected spikes in demand. And if a problem affects all suppliers, then plans can be put in place to order larger quantities of substitute products. </p>
<p>As a general rule though, the demand forecasting methods embedded in supply chain software should work well in normal times and can be used with confidence as the basis for stock replenishment planning. To anticipate extraordinary times, forecasting needs to shift from a system-based to a human-based activity. </p>
<p>Managers should attempt to foresee the major causes of shocks to their supply chains and put in place policies that will mitigate their effect. This will be beneficial not only to restaurant chains in developed economies, but also to humanitarian supply chains in which food, clothing and medicines are desperately needed.</p><img src="https://counter.theconversation.com/content/166521/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>John Boylan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Shortages of chicken at Nando’s are due to disruptions in supply, rather than demand.John Boylan, Professor of Business Analytics, Lancaster UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/618802016-07-01T14:35:10Z2016-07-01T14:35:10ZEuro 2016 sponsors being ambushed on social media by ‘unofficial’ brands<figure><img src="https://images.theconversation.com/files/128994/original/image-20160701-18317-k68cua.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="http://www.shutterstock.com/pic-409620058/stock-photo-blurred-fans-on-football-stadium-vintage-effect.html?src=pd-photo-320300492-3_KTcVH8711Rc2sFgfsSzA-2">Trybex</a></span></figcaption></figure><p>While the nations at the UEFA Euro 2016 championships have done battle on the pitch, an equally intense battle has been taking place off it between brands that want tournament exposure. Sponsors such as Coca Cola, McDonalds and Carlsberg spend multiple millions to be associated with the Euros, but they have also had to compete with a bunch of mischievous brands seeking to attach themselves in an unofficial capacity. </p>
<p>This so-called <a href="https://theconversation.com/models-messi-and-wacky-races-the-art-of-ambush-marketing-22622">ambush marketing</a> is an established phenomenon, but social media has become the perfect new vehicle for it. We’ve seen this from monitoring marketing activity on these platforms during Euro 2016. UEFA regulations sometimes making it tricky for official sponsors to respond quickly and effectively to events in the campaign, and these ambushers could undermine the value of one of the hottest tickets in advertising – not to mention other major events. </p>
<p>The official sponsors of Euro 2016 are heavily active on social media, of course. Where once 30-second commercials on prime time TV dominated advertising, the likes of Twitter and Facebook <a href="http://www.cuttingedgepr.com/articles/people-trust-media.asp">have become</a> hugely <a href="http://www.techrepublic.com/article/election-tech-why-social-media-is-more-powerful-than-advertising/">important</a> in <a href="https://www.theguardian.com/media-network/2015/oct/01/social-media-solution-online-advertising-challenges">recent years</a>. </p>
<p>Football fans will be familiar with the relentless scrolling of rotational signage at Euro games showing the hashtags of official sponsors like #probably (Carlsberg) and #MakeYourDebut (SOCAR), and that’s only the tip of the iceberg. A wander through the Twitter, Facebook, or Instagram accounts of these sponsors – others include Continental Tyres, Hyundai-Kia and Turkish Airlines – reveals a mix of the usual competitions, promotions and user-generated content. </p>
<h2>The Iceland cometh</h2>
<p>But beyond this closed circle, a world of brands use social media to draw attention to themselves by ambushing their rivals. One of the stars of Euro 2016 is Iceland – the British frozen food chain. When Iceland qualified for Euro 2016 as the unfancied minnows, their supermarket namesake signed a deal to sponsor them. It has been wreaking havoc ever since. </p>
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<p>Iceland’s 1-1 draw with Portugal on June 14 was a good example. The retailer trolled Nandos, an international restaurant chain with a Portuguese theme, and goaded Portugal striker Cristiano Ronaldo with the offer of chopped onions, to the delight of Twitter users (see below). Though admittedly Iceland <a href="http://www.mirror.co.uk/news/weird-news/iceland-tries-humiliate-nandos-social-8204641">was mocked</a> because Nandos is South African not Portuguese, it still drew attention away from official tournament sponsors while undermining a (non-sponsor) rival in the food and drink business. </p>
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<p>At the same time, the chain <a href="http://corp.ballstreet.co.uk/?page_id=312">ran a prize draw</a> for fans to win a year’s supply of Iceland shopping by tweeting the hashtag #ComeonIceland. Traffic was partly driven by former Premier League player Jimmy Bullard <a href="https://twitter.com/jimmybullard/status/742779404741414912">tweeting himself</a> dancing around wearing an Iceland shopping bag as a “football kit”, which prompted some fans to follow his example. This helped the chain to leverage social media’s potential for getting the public to produce branded content for you. Bullard’s original tweet attracted around 2,500 retweets and 2,200 likes. </p>
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<p>Betting company Paddy Power is another ambusher that is savvy with social media and has been tweeting constantly during the tournament. One strand parodies player heat maps to poke fun at poor performances – one about Belgian international Romelu Lukaku’s performance against Italy attracted nearly 1,000 retweets. Another tweet from the online gambler that joked about the Icelandic team’s support during its game against England on June 27 was retweeted more than 300 times and liked over 450 times. </p>
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<h2>The activation problem</h2>
<p>It is very difficult for official sponsors to compete with this kind of messaging because of the nature of their relationship with the tournament owners. When a brand sponsors a tournament they typically spend twice: once to acquire a legal right of association and then again on promotion around the deal to make sure it works properly – known in the trade as “activation”. Carlsberg is <a href="http://www.bloomberg.com/news/articles/2016-05-17/carlsberg-s-euro-soccer-campaign-said-to-be-worth-90-million">reported to have</a> spent upwards of €80m (£67m) on activation, for example, over and above the €40m it spent to become the tournament’s official beer. </p>
<p>Before an official sponsor can start this activation marketing, it must adhere to UEFA’s strict branding and guidelines. And before they start using hashtags, running competitions or engaging in any other form of activity, they must submit an activation request. </p>
<p>This means companies have to plan their messaging strategy a long way in advance. And because UEFA is concerned with protecting the reputation of the words and images associated with what is one of its marquee events, it can be cautious about what it will allow official sponsors to do. This leads to messaging that tends to be neutral and often lacks the responsiveness and innovative humour of many ambushers, all of which plays badly to the advantages of social media.</p>
<p>It poses a serious challenge for UEFA and the owners of other major sporting events – all of whom tend towards a similar approach. The International Olympic Committee tries to address it <a href="http://www.teresascassa.ca/index.php?option=com_k2&view=item&id=153:ambush-marketing-and-the-olympics&Itemid=84">by obliging</a> host nations to introduce anti-ambush legislation, but arguably this just forces ambushers to become even more creative and eye-catching. Paddy Power for example <a href="http://www.campaignlive.co.uk/article/1142359/paddy-power-sponsors-the-biggest-athletics-event-london">ran a campaign</a> during the London Olympics in 2012 announcing itself official sponsor of an egg and spoon race, saying it was sponsoring the “biggest athletics event in London” – then pointing out it meant in the town of London in the French region of Burgundy. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/128993/original/image-20160701-18325-nzei9y.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/128993/original/image-20160701-18325-nzei9y.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/128993/original/image-20160701-18325-nzei9y.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=395&fit=crop&dpr=1 600w, https://images.theconversation.com/files/128993/original/image-20160701-18325-nzei9y.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=395&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/128993/original/image-20160701-18325-nzei9y.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=395&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/128993/original/image-20160701-18325-nzei9y.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=496&fit=crop&dpr=1 754w, https://images.theconversation.com/files/128993/original/image-20160701-18325-nzei9y.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=496&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/128993/original/image-20160701-18325-nzei9y.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=496&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Paddy Power’s London 2012 ambush.</span>
</figcaption>
</figure>
<p>Social media is now so vital for advertisers, and the current situation <a href="http://www.doz.com/marketing-resources/euro-2016-marketing-worth-it-sponsor">potentially weakens</a> the business case for spending vast amounts of money on sponsoring these events. It’s not as if this is the only question mark against them either. <a href="http://www.businessinsider.com/euro-2016-brand-sponsors-2016-5?IR=T">Reported figures</a> from a spontaneous recognition survey showed, for instance, that while 11% of people correctly identified Adidas as an official sponsor, 9% incorrectly thought that Nike was one, too. MasterCard, another sponsor, had a similar problem with Visa. </p>
<p>If major sports tournaments want to regain the upper hand in this brave new era, they might need to develop an approach suited to the instantaneousness of social media. Until then they risk jeopardising their proposition – an own goal if ever there was one.</p><img src="https://counter.theconversation.com/content/61880/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Simon Chadwick works for UEFA. He helped develop and teaches on its Certificate in Football Management. </span></em></p><p class="fine-print"><em><span>Alex Fenton does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It costs multiple millions to sponsor a global sports event. Why bother when non-sponsors cleverly associate themselves for next to nothing?Simon Chadwick, ‘Class of 92’ Professor of Sports Enterprise, University of SalfordAlex Fenton, Lecturer in Digital Business, University of SalfordLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/230782014-02-11T04:36:19Z2014-02-11T04:36:19ZNando’s plays chicken with Schapelle and wins<figure><img src="https://images.theconversation.com/files/41223/original/7n6s2k59-1392089922.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C979%2C998&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Someone thought it was a peri peri good idea to cash in on Corby. </span> <span class="attribution"><span class="source">monkeyc.net</span></span></figcaption></figure><p>Fast-food chain Nando’s has done it again. While the <a href="http://www.theage.com.au/national/schapelle-corby-released-from-kerobokan-prison-on-parole-arrives-at-luxury-spa-20140210-32avh.html">release of Schapelle Corby</a> on parole was hitting all the Australian news headlines yesterday, Nando’s used a technique known as “topical advertising” to get attention, controversy, and discussion of the ad and brand.</p>
<p>In the ad, that was <a href="https://www.facebook.com/nandosaus">posted as a message on Nando’s Facebook</a> and <a href="https://twitter.com/NandosAUS">Twitter</a>, it said: </p>
<blockquote>
<p>Schapelle, now that you’re out, try our delicious Peri-Peri Chicken … The only bars you’ll see are on our grill.</p>
</blockquote>
<p>While some media <a href="http://www.dailytelegraph.com.au/news/national/nandos-australia-hijacks-schapelle-corby-release-with-push-to-buy-their-chicken-upsets-social-media/story-fni0xqrc-1226822708915">have described</a> it as being in “poor taste” (not so good for a food product), a campaign “backfire” and a “social media fail”, people still talked and joked about it – which, from an advertising point of view, is still a result. </p>
<h2>Nando’s ad strategy</h2>
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<span class="attribution"><span class="source">Facebook</span></span>
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<p>This is not the first time Nando’s has been controversial in its advertising messages. Over the years the company has developed a reputation for controversial advertising to support its international growth. This has included advertisements with <a href="http://www.youtube.com/watch?v=lWcfQceBib4">pole-dancing mums</a>, <a href="http://www.youtube.com/watch?v=e7yzDSgKNU8">big-breasted bimbos</a>, and <a href="http://darrenfishman.com/nandos-topical/">numerous print ads</a> with double entendres about chickens, breasts and celebrities etc. </p>
<p>In the competitive fast-food market, Nando’s advertising has been effective in generating heated discussion. This strategy has resulted in a number of their print, radio and television advertisements creating a stir which has led to much publicity, both positive and negative.</p>
<h2>Topical advertising</h2>
<p>Topical advertising describes the situation whereby advertisers take advantage of a current event or issue to get the attention of potential customers, often using humour – or attempts at humour – as a hook. So while trying to be current and relevant, it can also be quite clever and generate extra publicity.</p>
<p>Nando’s regularly run topical advertisements that mention the economy, competitors, politicians, and even refugees. On June 24 2010, Julia Gillard became Australia’s first female prime minister. While there were thousands of words written about the historic event, in a quickly arranged show by the advertising industry thousands of dollars of politics-related advertising featured in newspapers the following day, including, from Nando’s: “Yes Julia … Chicks Rule”. </p>
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<a href="https://images.theconversation.com/files/41218/original/vhtngyj2-1392087084.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/41218/original/vhtngyj2-1392087084.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/41218/original/vhtngyj2-1392087084.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=229&fit=crop&dpr=1 600w, https://images.theconversation.com/files/41218/original/vhtngyj2-1392087084.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=229&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/41218/original/vhtngyj2-1392087084.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=229&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/41218/original/vhtngyj2-1392087084.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=288&fit=crop&dpr=1 754w, https://images.theconversation.com/files/41218/original/vhtngyj2-1392087084.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=288&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/41218/original/vhtngyj2-1392087084.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=288&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
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<p>Some other examples of the ads run in this vein include: </p>
<ul>
<li><p>“Taking a break?” with a picture of Kevin Rudd (JetStar)</p></li>
<li><p>“The Leader in Cleaning Up Party Spills” (Viva Paper Towels)</p></li>
<li><p>“Kevin, Here’s a Cabinet That Won’t Let You Down” (Ikea)</p></li>
<li><p>“Support For our New Prime Minister” (Nurofen)</p></li>
</ul>
<p>Another occasion that resulted in a number of topical ads being run in newspapers occurred nine months earlier, on September 23 2009. Sydney had thousands of tonnes of dust dumped on it, in a spectacular show of nature. This “once-in-a-lifetime” shrouding of red dust in Sydney was another big event that got the advertising industry moving. The next day’s ads included:</p>
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<li><p>“How do you get red dust out of white pants? Time to call your Mum?” (Telstra)</p></li>
<li><p>“Now that the dust has settled, enjoy a streak free shine” (Windex)</p></li>
<li><p>“A little dirt isn’t the end of the world” (OMO)</p></li>
<li><p>“Great for stains. And dust storms” (Napisan)</p></li>
<li><p>“We see the world in orange. We wanted you to see it that way too. – We’re sorry about the dust” (Bankwest)</p></li>
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<p>There were also ads for Subaru, Viva Glass, Mirror Wipes and Visa that related to the dust storm. Even Tourism NT claimed that it was part of the NT “get ceNTered” campaign “Bringing the red centre to Sydney”. So while many turned up to work late or even took the day off work, creatives at advertising agencies were working over time.</p>
<p>International news has also been a cause of topical advertisements. On the last day of the George Bush administration hair removal company Veet ran an advertisement with the headline “Goodbye Bush”. </p>
<p>So we shouldn’t be so shocked when an ad appears on the same day as Schapelle Corby’s release. And while it is being digitally forwarded or talked about, it should not be seen as a “fail”.</p>
<p>Wherever there is news there are also quick-thinking creative minds – and an advertising buck to be made.</p><img src="https://counter.theconversation.com/content/23078/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>David Waller does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Fast-food chain Nando’s has done it again. While the release of Schapelle Corby on parole was hitting all the Australian news headlines yesterday, Nando’s used a technique known as “topical advertising…David Waller, Senior Lecturer, School of Marketing, University of Technology SydneyLicensed as Creative Commons – attribution, no derivatives.