This report discusses the marketing plan for Chik-fil-A, including an audit of the marketing environment, SMART objectives, STP strategy, and competitor analysis.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Business creation of a marketing plan
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents INTRODUCTION...........................................................................................................................3 MAIN BODY..................................................................................................................................3 An audit of marketing environment............................................................................................3 Statement and Justifications to SMART objectives....................................................................6 STP strategy................................................................................................................................7 A competitors analysis................................................................................................................8 Marketing Strategy......................................................................................................................9 CONCLUSION.............................................................................................................................10 REFERENCES................................................................................................................................1
INTRODUCTION Marketing management is concerned with the application of various methods, techniques, practices in the organisation. This can be done by identifying the potential markets to satisfy the needs of the customers which are not fulfilled. It can be done by formulating various strategies on the basis of market analysis of various factors. Marketing management is related with planning, organising, controlling and implementation of various plans, tactics, strategies etc. This report is based on Chik-fil-A which is an American fast food restaurant chain. It is known for their chicken sandwiches. The company operates in United States with a large number of restaurant in 47 states. In this report the market audit will be done for the company with the help of various macro and micro factors analysis. Apart from this the marketing strategy will be formulated by using 7P's of marketing mix and STP analysis. MAIN BODY An audit of marketing environment Marketing audit is concerned with the comprehensive analysis and systematic evaluation of the marketing environment of the business which includes both the internal and external environment. In marketing audit the analysis of the goals, objectives, principles and strategies will be done which helps the company to identify the opportunities and the problems(Baker, 2016). To conduct the marketing audit the company has to perform analysis of micro and macro factors with the help of SWOT and PESTLE respectively. SWOT Analysis:To analyse the impact of various internal factors of the organisation SWOT analysis will be done for the company in which the strengths, weaknesses, opportunities and threats are identified. StrengthsWeaknesses ï‚·The strengths of the restaurant is their customerserviceastheyhaveself- servicesmodelwhichmakestheir outlet unique. ï‚·Therestaurantsellsandwichesnot ï‚·The weakness of the restaurant is that they do not have presence outside USA whichrestrictthescopeoftheir operations. ï‚·With the faster growth of the fast food
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
burgerwithchickenfilling,which protect the customers from the danger of red meat. ï‚·The employees of the company are paid higher than any other in the industry whichincreasestheirlevelof satisfaction and make them competent in serving the customers. industrythecustomerretentionand loyaltyisamajorweaknessofthe restaurant. ï‚·The innovation is low in context of the supply chain and marketing. OpportunitiesThreats ï‚·The products that is offered by them have chicken filling which make them healthybutstillduetogrowing consciousness they have opportunity to add more healthy options in their menu. ï‚·The Chik-fil-A has the opportunity to expand their business in other countries such as UK where the demand for such product will be high. ï‚·With the help of various advertising and marketing the brand image can be improvedwhichwillhelpthemto increase their customer base. ï‚·Scandals about the chicken has impact onthebusinessasthischangesthe mindsetandtheperceptionofthe people about the products offered by the Chik-fil-A. ï‚·The competition is a major threat on the business which affect the profitability and the sales of the restaurant. ï‚·Theincreaseinpricesoftheraw material affects the supply and the cost of the products of Chik-fil-A. PESTLE Analysis: To analyse the influence of various macro factors the organisation need to undertake the PESTLE analysis with which the favourable and unfavourable impact on various factors of the macro environment are considered on the company(Bhandari, 2018). ï‚·PoliticalFactors: The UK is a constitutional monarchy that runs as per the parliamentary system which makes it fair and stable for all to operate in the country. The political situation in the country are stable due to which the policies will not change in near future and it is an opportunity for the Chik-fil-A to enter into the UK market. But the
uncertainty due to Brexit may have an adverse impact on their operations as this will have impact on the agreements with the suppliers overseas. ï‚·EconomicFactors: The economic condition of UK is comparatively better than any other countries as they have relatively high GDP and a diverse economy(Cacciolatti and Lee, 2016). The economy of UK has a large population which offers an opportunity even for a small business to be profitable so for the Chik-fil-A. But the recovery from the recession of 2008/09 is slow which is why the level of income in hands of public is not much which may have an adverse impact on the demand of the products of the restaurant. ï‚·SocialFactors: The social factors are related with the taste and preference of the customers which is crucial for the restaurant to consider. The UK is densely populated country with an open environment for migration which has a positive impact on the products so offered by theChik-fil-A as the people prefer handy food which is even healthy.The UK has been highly influenced by the concept of social class which can impact the business of the Chik-fil-A as they do not provide any elite services for the upper class or the upper middle class and this can affect the demand for the particular segment of the company. ï‚·TechnologicalFactors: Technological factors has impact on the business and need to be considered efficiently as the technology changes rapidly and influences the business. The quality innovation in the services increases the level of expectations of the customers which the businesses has to deal with(Bhandari, 2018). The Chik-fil-A offers innovative services to the customers as they have self service model in their restaurant. This is efficient to attract the customers. But the frequent changes in the technology increase the cost for the organisation that will impact the financial strategies of the Chik-fil-A. ï‚·LegalFactors: The legal implications affects the organisation as it increases regulation on them which they have to comply with. The implication of the employment law, wage rate etc. increases the regulatory requirement for the Chik-fil-A but it has positive impact on them as it will help them to keep their employees satisfied. The trading barriers restrictstheflowofsuppliessuchaschickenandvariousspecies,itaffectsthe availability of the goods to the customers due to shortage of material etc. This has negative impact on the profitability of the restaurant as their sales will get affected due to interrupted supply of the material(Cacciolatti and Lee, 2016).
ï‚·EnvironmentalFactors: The impact of the business on the environment is crucial to analyse as various laws are imposed to minimise the impact on the environment. The waste management imposition and regulations affects the operations of the Chik-fil-A negatively as they have to formulate various policies which can reduce such impact. This willincreasethecostforthecompanyastheyneedtohaveeitherreusableor environmental friendly products. But various eco-friendly products are used by the restaurant which helps them to reduce the impact of their operation on the environment. Statement and Justifications to SMART objectives Marketing objectives are the goals which are determined by the company which helps them to promote their offerings in the market. They are the marketing strategy which are set with the aim to achieve the organisational objectives of the company(Deepak and Jeyakumar, 2019). The marketing objectives of the company can be to create awareness about the products and services of the company , the features of the products and the values which are provided by them to the customers. The objectives of the Chik-fil-A on the basis of SMART approach are : ï‚·Specific: The objective of the company must be specific which means that it should be clearly defined so that it does not create any confusion among the employees of the company. The objective of the Chik-fil-A is to expand their business which can be done by contributing in the services of the economy. This can be analysed by increase in turnover of the Chik-fil-A due to expansion in UK which they target to be 25%. ï‚·Measurable: The specific objectives so determined by the restaurant must be measurable as on the basis of this the comparison can be done. The objectives of increasing the turnover is specific and can be measured on the basis of last years turnover and the profitability(Festa and et. al., 2016). ï‚·Achievable: The objective so determined by the organisation must be achievable as per the market situations prevailing in the market. Such goals should be achievable so that it does not create any pressure on the employees. The goal of Chik-fil-A is to increase the turnover by 25% and it must not affect the satisfaction level of the employees. ï‚·Realistic: The goal of the company that they have to achieve must be realistic and relevant for the company. The objective of Chik-fil-A is to expand their business in UK which is realistic as they have opportunity to expand in that country.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
ï‚·Time-bound: The objective of the company must always be time bounded which can help them to motivate their employees. The time limit which they have taken to achieve the objectives is 12 months, this will make their employees to be consistent and focussed towards the objectives in that time period. The objectives of Chik-fil-A can efficiently be achieved as it is a SMART objectives prepared on the basis of opportunities present in the market. STP strategy STP strategy helps the company in targeting the right customers, at the right place and at the right time. With the help of this strategy the Chik-fil-A can easily compete in the market as they can develop specific strategy as per the characteristics of the targeted customers(STP process , 2019). ï‚·Segmentation: The strategy of segmentation helps the company to identify the market segment which they can target on the basis of common characteristics possessedby them. The segmentation can be done on the basis of the demographic characteristics, behavioural characteristics, lifestyle and the geographical factors(Grewal and et. al., 2016). Chik-fil-A can segment the target market on the basis of the demographics and lifestyle as they consider the taste and preference of the customers, their age, the group they belongs to. UK has been chosen by the company as the location where they can expand their business. ï‚·Targeting: Once the market segment is identified the company need to consider the one which they haver to target. The target market of the company can be decided on the basis of the evaluation of all the segment. Chik-fil-A can identify the potential and commercial attractiveness of all the segments which are identified by them. Out of all the segments, the Chik-fil-A has selected the college going students and the children as they are the one prefers the fast food the most. ï‚·Positioning: The strategy of positioning is related with creating the image of the company in the minds of the targeted customers about the values and the benefits of the products and services to the customers. Chik-fil-A can position their products in the mindsofthecustomerswiththehelpvariouspromotionaltechniquessuchas advertisement through radio, newspaper etc. Also they can distribute various platelets and
brochures with which they can target a large number of customers. This helps them to take the competitive advantage over the competitors(Kerin and Hartley, 2015). With the strategy of segmentation, targeting and positioning the Chik-fil-A can efficiently achieve their objectives. On the basis of this they can effectively plan their marketing mix as they have their target market and they know about their taste and preference. This further helps them to analyse the demands of the customers on the basis of their characteristics which the Chik-fil-A has targeted. Perpetual maps can be used by the Chik-fil-A to identify and understand the perceptions of the customers on the basis various attributes such as brand, product, services etc. This will help the Chik-fil-A to compare the image of the brand with their competitors and on the basis of this they formulate various strategies. A competitors analysis For analysing the competitors the organisation need to apply various models which can facilitate them to analyse the position of the market. To analyse the market position the Porters generic model can effectively used by the Chik-fil-A. This model suggest four strategies which can help the organisation to identify the impact of competition in the business environment (Kotler and et. al., 2015). These four strategies are : ï‚·Cost leadership: As per this strategy the objectives of the company is to be the cost leaders by proving the products at the lower cost. This can be done by the organisation with the help of mass production by effectively utilising the capability and the capacity of the production. The production at the large scale reduces the per unit cost of the products. Also it can effectively be utilised by negotiating with the suppliers about the prices of the goods. Chik-fil-A can use this strategy by procuring goods in bulk and then producing their products. This will help them to reduce their overall cost and thus will reduce the per unit cost of the products(Morgan and et. al., 2019). ï‚·Differentiation: As per this strategy, the objective of the companies to attain the competitive advantage. This can be done by proving the differentiated products and services to the customers. The differentiation in the product and the services can be done with the help of improving the quality of the products or by introducing innovative features in the products(Soundar, Micro Macro Assets LLC, 2017). Along with that the
differentiation can be created by branding, channel of distribution etc. Chik-fil-A can use this strategy as this will help them to get create their image in the market. ï‚·CostFocus: As per this strategy the company can focus on lowering the cost of the company but the focus is on the narrow market segment of the company. The product so offered by them are quite similar to those products which are available at the higher prices but they can be availed by a large number of people. This strategy can effectively be used by the Chik-fil-A. In which they can provide the product similar to those which are offered by premium restaurant but at economic rate. This will help them to target a large number of customer. ï‚·DifferentiationFocus: According to this strategy the objective of the company is to provide the products and services with differentiation but to a narrow market segment. With the help of this strategy they can target a specific group of people who are willing to use differentiated products irrespective of the prices. Chik-fil-A can use this strategy if theywishtocatertoaspecificgroupofpeoplewhichwantsuniqueproducts (Ramanathan and et. al., 2017). Chik-fil-A can efficient use all the strategy to take the competitive advantage but the most suitable strategy which can be used by them for expansion is cost leadership. With the help of this strategy they can serve a large number of people which will help them to expand their market share easily and effectively. This will help them to take the competitive advantage over others and to serve a large number of people with the healthy product. Marketing Strategy Marketing Strategy is the tool which help the company to successfully achieve the objectives of the companies as it helps to formulate various strategies(Sharma, 2018). With the help of 7P's of the Chik-fil-A can efficiently expand their business in UK. BasisChik-fil-A ProductThe products which are offered by theChik-fil-A is sandwiches that are made up of chicken. Along with this theyprovidesvariousbreakfast,lunchanddinner options. While expanding their business they will enter with the similar products.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
PriceThepricesofthesandwichesandothermenuare economic as they have target middle and upper class people. In UK also they will target the same class of people. PromotionThe company promotes their products by developing various campaigns with attractive tag lines. Similarly in UK also they can do the same. But along with this they can advertise their product through radio, newspaper, brochures etc. PlaceChik-fil-Aprovidestheirproductsthroughtheir restaurant which are located in various cities. In UK also they will open their restaurant in London, Greenwich etc. as the crowd of students in these cities are higher. PeopleThe target customers of theChik-fil-A are the children and college going students. In UK also they will target the same as the product which offer can attract them easily(Stead and Hastings, 2018). ProcessTheChik-fil-A provides their products through the channel of marketing and by managing their relations with the suppliers. They manages the inventory well which ensures their timely production. Physical evidenceThe retail stores of the company will be the physical evidence.Alongwiththistheproductswhichare provided by them and the bags, invoice are considered as their physical evidence. CONCLUSION It is concluded from the above report that the company can successfully survive in the competitive environment but for this they have to conduct various market research. With the help of SWOT and PESTLE macro and micro factors are analysed. For analysing the competitive
position the generic model of the competitive analysis is used which help the company to determine various strategies that can help them in taking the competitive advantage. With the help of all the analysis SMART objectives are prepared. Also it is concluded that with the help of variousmarketing mix the strategies can be formulated which help them to achieve their objectives.
REFERENCES Books and Journals Al Fahad, A. and et. al., 2015. Marketing audit: A systematic and comprehensive marketing examination.International journal of scientific & Technology research, pp.215-221. Bhandari, M., 2018.Competitive Analysis of Canali v/s Intra Organisation Competitor Brands at Genesis Luxury Pvt. Ltd. NIFT. Deepak, R.K.A. and Jeyakumar, S., 2019.Marketing management. Educreation Publishing. Grewal, D. and et. al., 2016. Evaluation of Subsidiary Marketing Performance: Combining Process and Outcome Performance Metrics. InData Envelopment Analysis(pp. 491- 513). Springer, Boston, MA. Kotler, P. and et. al., 2015.Marketing. Pearson Higher Education AU. Ramanathan, U. and et. al., 2017. Role of social media in retail network operations and marketing to enhance customer satisfaction.International Journal of Operations & Production Management .37(1). pp.105-123. Soundar, S., Micro Macro Assets LLC, 2017.Comprehensive system and method for providing sales and marketing acceleration and effectiveness. U.S. Patent 9,674,364. Tortorella, G.L. and et. al., 2015. Learning organisation and human resources management practices: an exploratory research in medium-sized enterprises undergoing a lean implementation.International Journal of Production Research .53(13). pp.3989-4000. Baker, M.J., 2016. What is marketing?. InThe Marketing Book(pp. 25-42). Routledge. Cacciolatti, L. and Lee, S.H., 2016. Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power.Journal of Business Research .69(12). pp.5597-5610. Festa, G. and et. al., 2016. The (r) evolution of wine marketing mix: From the 4Ps to the 4Es. Journal of Business Research.69(5). pp.1550-1555. Kerin, R. and Hartley, S., 2015.Marketing: the core. McGraw-Hill.Morgan, N.A and et. al., 2019.Researchinmarketingstrategy.JournaloftheAcademyofMarketing Science .47(1). pp.4-29. Sharma, I., 2018.Impact of Digital Marketing on Consumer Buying Behaviour for the brand Satya Paul, Genesis Colors Pvt Ltd. NIFT. Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance right. InSocial Marketing(pp. 29-43). Psychology Press. Online STP process .2019. [Online]. Available through:<https://www.segmentationstudyguide.com/stp- process/what-is-the-stp-process/> 1