This marketing plan outlines the expansion of Chick-fil-A's franchise in the UK. It includes a macro and micro environmental analysis, SMART objectives, and segmentation, targeting, and positioning strategies.
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Creation of a Marketing Plan for Chick-fil-A
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Table of Contents INTRODUCTION...........................................................................................................................1 MARKETING PLAN......................................................................................................................1 Overview of the company......................................................................................................1 Products and Services offered by Organisation......................................................................1 Executive Summary................................................................................................................2 Mission and Vision.................................................................................................................2 Macro Environmental Analysis..............................................................................................3 Micro Environmental Analysis...............................................................................................5 SMART Objectives................................................................................................................7 Segmentation, Targeting and Positioning...............................................................................7 Competitor Analysis...............................................................................................................7 Marketing Strategy.................................................................................................................8 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Marketingisanimportantcomponentofeachandeverybusinessenterprise encompassing activities such as advertising, promotion, public relations etc. All of these are cumulatively aimed at creation of strong relations with customers and communication the vision of organisation to them. For this purpose, one of the most effective ways adopted by companies in the modern era is development of a marketing plan. This plan seeks to place the offerings of an organisation among the target audience after carefully scanning the micro as well as macro environment of business. With this, the entity is able to inflate its reach amidst people and improve its global market position. The present project consists of a marketing plan made for Chick-fil-A which is one of the largest fast food chains within the confines of America. The average income earned by its outlet is more than that of any other fast food giant within US. The management of this entity is planning to expand the franchise within United Kingdom as a part of its market expansion. The report consists of micro and macro environmental analysis, SMART marketing objectives, STP and perceptual map. Also, it consists of competitor analysis along with marketing strategy devised by way of marketing mix. MARKETING PLAN Overview of the company Chick-fil-A is recognised to be one of the biggest American chain restaurants within fast foodindustry,havingitsspecialisationaschickensandwich.Thisorganisationhasits headquarters situated within Georgia, USA. The fast food giant operates by way of its 2300 outlets spread across the territory of US alone. Out of the 50 states which constitute USA, Chick- fila-A is present in 47 and is about to open a store in 48thstate named Hawaii. This restaurant offers food and beverage items for breakfast, lunch and dinner. Also, it provides customers with the option of personalisation for special kind of events. Products and Services offered by Organisation The menu of Chick-fil-A consists of chicken sandwiches, chicken nuggets, chick-n-strips, salads and breakfast meals. The restaurant capitalises upon its specialisation in preparation of chicken dishes and emphasizes upon actual white meat chicken. The corporate strategy of this corporation has always been to stipulate a simple menu for customers and shift its focus on 1
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provision of effective as well as timely customer service. The entity has never been reluctant on expansion of its menu options to gain the attention of people but to enhance the quality of its chicken sandwich in order to leverage its specialisation. The “A” in the name of restaurant is for top quality of chicken used to make food items. The leading position of Chick-fil-A within the confines of fast food industry of US owes to the focal point of entity being excellent customer services. Executive Summary LookinguponthesuccessofChick-fil-AwithintheconfinesofAmerica,the management of this entity is opening a new outlet in United Kingdom. The expansion is being carried out with a view to expand the market share of company across the global confines. The entity would be leveraging upon its skilled human resource team, specialisation in chicken items (especially chicken sandwich) and other resources available with the company to build extensive brand image in UK. Mission and Vision Mission: The mission statement of Chick-fil-A is“To be the best quick service restaurant across the globe at gaining customer satisfaction and retaining them” The emphasis hereby is placed upon the leading position that the firm intends to attain in food & beverage sector. The focus is on redefining the brand as well as its services to meet the never ending needs and preferences of customers as well as to outshine the rivals pertaining to concerned sector. Vision: The vision statement laid down by Chick-fil-A is “Toglorify God by being an honest custodian of all that is entrusted to us and to exert affirmative influence upon everyone who comes in contact with Chick-fil-A.” The vision of the entity encompasses religious values as well as principles to improve its services for the betterment of company and customers. The statement portrays the way in which the fast food giant views itself as the steward for consumers as well as society along with its intention to provide services of best quality. 2
Macro Environmental Analysis Chick-fil-A is planning to expand the franchise operations within the confines of United Kingdom. To facilitate this in an effective manner, the management of this entity is conducting a macro environmental analysis of UK as it will provide assistance to the fast food giant in leveraging the market opportunities and overcoming the threats in a timely manner. For scanning the external environment, PESTLE Analysis is undertaken by the organisation. PESTLE This is an effective framework that is applied by business entities across the globe with a view to gain comprehensibility of certain factors pertaining to the environment in which it carries out its operations. The aspects constituting this framework are explained in context of UK, the new target market for Chick-fil-A, as follows:- VariableConstruct PoliticalThe politically stable and strong state of UK would foster the growth of restaurant operations of Chick-fil-A. The European, local and central government have laid down a number of grants and schemes such as Better Broadband Subsidy Scheme, Better Business Finance, Innovate UK and many more, the advantage of which can be availed by Chick-fil-A (Finance and support for your business,2019). Terrorist attacks, international war, political instability, changes in rules and regulations are some of the factors that may negatively impact upon the functioning of Chick-fil-A in UK. EconomicalThe developed nature of economy of United Kingdom would act as opportunity for Chick-fil-A. The respective fast food giant would be able to capitalise upon the infrastructural development of this nation and thereby inflate its revenues after the expansion. The nature of consumers of UK is price sensitive which may impactinfavouroragainstChick-fil-Adependinguponthe circumstances. British exit from EU (BREXIT) is one of the most significant 3
factors that have been negatively impacting upon the operations of businesses functioning within the confines of UK. The disposable income of people pertaining to the respective country is high, which creates opportunity for the restaurant to appeal to a large base of customers and satisfy their needs for retaining them in the long run. SocialThequantumofindividualsstrickenbyDiabetesinUnited Kingdom is 4.7 million as per the reports of 2019 (Number of people with diabetes reaches 4.7 million,2019). Further, 1/3rd people of this place have the issue of Obese (Obesity: Disease or just plain greed? The number of obese Britons has doubled in 25 years,2019).Boththesediseasestendtobuildthehealth conscious nature of residents of this nation. This decreases the demand for fast food products within UK, acting as a major threat for Chick-fil-A. The online shopping trend is on a boom nowadays. Thus, the entity can leverage the option of entering into partnership with food delivery apps like Uber Eats to reach out to a large base of audience and enhance its popularity at a rapid pace within UK. TechnologicalThe technologically advanced state of United Kingdom would provide opportunity to Chick-fil-A to conduct its operations in an effective manner by leveraging new technologies to appeal to people. Chick-fil-A would capitalise upon social media marketing which is one of the most prominent technological trends in today’s modern era. Further, the firm would also leverage influencer marketing so as to gain the attention of people within the new target market and satisfy their needs appropriately for their long term retention. Online ordering via company’s website is a trend that would work 4
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in the favour of Chick-fil-A to inflate its revenues and profits in near future. LegalThere are a number of laws that need to be followed by Chick-fil- A to ensure its sustainability within market place of UK for a long period of time. Such legislations comprise of health and safety regulations,employmentlaws,hygiene,foodsafetyand management etc. An incidence of non compliance with any of the laws pertaining to Food & Beverage sector would result in imposition of fine or penalty and / or public prosecution. EnvironmentalThere is a constant pressure inflicted upon the organisations to act in the interest of environment so as to gain support from public as well as government. This would lead to an increment in overall cost of operations. Chick-fil-A would invest in CSR activities after expanding into the market of UK to build a positive image in the minds of customers and appear to them as an eco-friendly brand. Further, the respective fast food giant would make sure that the carbonfootprintsarereducedtoalargeextentthroughthe utilisation of new technologies as well as sustainable practices. Micro Environmental Analysis Apart from macro environmental analysis, it is important for a firm to carry out examination of internal aspects of company. One of the most effective frameworks undertaken by companies in this regard is SWOT Analysis. SWOT This is an analytical framework that is being applied by management of Chick-fil-A to gain knowledge of the internal aspects that are advantageous for entity to gain access into UK market and the ones that need to be enhanced for inflating its competitive edge. The SWOT analysis of Chick-fil-A is presented as follows:- 5
Strengths: The biggest strength of the respective fast food organisation is its impeccable customer services. This provides aid to the entity in retaining its loyal base of customers for long term. The specialization of the entity lies in chicken sandwiches which are best within the Food & Beverage industry. A large proportion of its customers visit the outlet daily just to have this item. The ambiance of the outlets of Chick-fil-A is warm as well as captivating for customers as many vibrant colours are used in interiors. The walls of outlets even contain pictures of staff members. Chick-fil-A pays compensation to its employees more than the industry average. Also, the entity provides the individuals with career advancement opportunities which motivate them to a great extent. The restaurant outlets of Chick-fil-A do not operate on the premise of self service and emphasize on serving customers through attendants. This is done with a view to develop healthy relation with customers and to ensure that they do not any kind of issue within the organisational premises. Weaknesses: Chick-fil-A does not carry out its operations in countries other than USA. Thus, it can be said the market presence of this entity is restricted. The prices of food & beverage items sold by Chick-fil-A are high. Although the prices are justified looking upon the quality of meals however, it makes the offerings of company unpopular amidst middle and lower income sections of society. The fast food giant does not much come up with innovation in food production techniques or menu options. This limits the reach of entity among customers. Opportunities: Looking upon the constantly growing health conscious nature of people, Chick-fil-A can leverage the options of introducing healthy fast food items to the menu. This would provide aid to the enterprise in appealing to customers affected by diabetes or obese. Chick-fil-A can gain access into other countries to build an extensive goodwill across the globe and thereby enhance its overall market standing. 6
Threats McDonald’s, Burger King and Subway are the major players in fast food industry which pose threat to the market position and sustainability of Chick-fil-A at market place. There are a number of scandals centring fast food organisation that make use of chicken as their main ingredient, in relation to quantity and quality of chicken used by them. This tends to create apprehension in consumer mindsets and a large proportion has even decided to neglect such outlets. SMART Objectives Stipulation of marketing objectives is an important element of marketing plan. While carrying out expansion within the confines of UK, the management would ensure the attainment of below mentioned SMART objectives:- “To increase the revenues of company by 12.5% by the end of 1 year by leveraging extensive marketing in UK” “To inflate the market share of entity across by globe by 4.25% by next 6 months by capitalising upon social media marketing” “To enhance the profits of corporation by 7.25% within next 1 year by launch of marketing campaigns in UK” Segmentation, Targeting and Positioning STP model is being applied by the management of Chick-fil-A to determine its target audience in the confines of United Kingdom. Segmentation:Chick-fil-Awouldsegmentthemarketgeographicallyaswellas demographically (on the basis of age). Targeting:The fast food giant would be entering UK and targeting people pertaining to age group of 22-36 years. Positioning:Chick-fil-A would position its offerings among citizens of United Kingdom by making use of social media marketing. The platforms that would be leveraged by the fast food restaurant would be Instagram, Facebook and Snapchat. Competitor Analysis A number of rival companies would serve as direct competition for Chick-fil-A within UK.Inthisregard,someoftheexamplesofcompetitorswhowouldposerisktothe 7
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sustainability of enterprise are McDonald’s, Dunkin’ Donuts, Chipotle Mexican Grill, Burger King, Subway, Yum! Brands, Church’s Chicken. All of these are direct rivals for the respective fast food giant and enhance the risk of substitution for the firm. However, the due emphasis put upon customer service by the firm and its strong chicken product segment would together prove to be advantageous to deal with such rivalry in UK. Marketing Strategy Marketing strategy can be referred to as the long term as well as forward looking approach towards planning which is aimed at attainment of competitive advantage by a firm. The marketing strategy that would be adopted by Chick-fil-A within the confines of United Kingdom is explained with the help of marketing mix, as follows:- ElementDescription ProductChick-fil-A would be offering the same product range in UK as it offered in US. However, the firm would add sugar free product range for those stricken by obese and diabetes looking upon the health conscious nature of people of the new market. PlaceThe fast food giant would be entering UK which is an excellent business location for organisations intending to expand their market share as well as goodwill.Theexcellentinfrastructural,logistics,supplychainand communication facilitates makes it a suitable place for doing market expansion. PriceIn the initial phase of setup, the pricing strategy of Chick-fil-A would be to keep the prices of product moderate so as to be easily affordable for all sections of society. With the passage of time, the entity would shift to premium pricing strategy as it offers high quality products and would also have a range of sugar free products. PromotionThe marketing of Chick-fil-A within the confines of UK would be done by way of social media platforms as well as launch of effective marketing campaigns. Both of them would provide aid to the entity in inflating its overall reach among the customers. ProcessThe production process of Chick-fil-A would be executed making sure that 8
the customers’ needs as well as wants are satisfied. PeopleThe staff within the confines of United Kingdom would be provided with adequate training opportunities so that they can produce food items as per the needs and preferences of customers. Physical Evidence The physical evidence would be witnessed in the form of satisfaction that will be gained from customers post the consumption of food & beverage items. CONCLUSION On the basis of above discussion, it can be said that marketing plan is an effective strategy that can be used by enterprises to gain the attention of people and carry out market expansion. Further, it can be acknowledged that environmental scanning is crucial for an entity trying to gain access into a new market. Further, target audience is determined with the help of STP analysis. In this relation, marketing strategy is devised by a corporation through the usage of 7 P’s of marketing. 9
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Obesity: Disease or just plain greed? The number of obese Britons has doubled in 25 years. 2019. [Online]. Available Through:<https://www.msn.com/en-gb/news/uknews/obesity- disease-or-just-plain-greed-the-number-of-obese-britons-has-doubled-in-25-years-but- experts-are-torn-over-how-to-battle-the-bulge-here-two-leading-doctors-weigh-in-with- very-different-views/ar-AAFHV9G>. 11