Marketing Management: Chick-fil-a Case Study

This assignment provides a detailed analysis of the marketing management strategies of Chick-fil-a, including their SWOT analysis, PESTLE analysis, SMART objectives, STP strategy, competitor analysis, and 7P's analysis. It explores how Chick-fil-a has successfully positioned itself in the fast food industry and discusses their plans for expansion in the UK market.

MARKETING
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
Audit of macro and micro environment of Chick-fil-a...............................................................3
Justifying SMART objectives of Chick-fil-a..............................................................................6
Chick-fil-a STP strategy..............................................................................................................7
Competitor analysis of Chick-fil-a..............................................................................................8
Explaining market strategy of Chick-fil-a by 7 P'S analysis.......................................................8
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing management is a function of facilitating the distribution of products and
services which organisation is offering. It is a process of evaluating, planning, implementing and
controlling the activities which company perform for earning profits. Marketing management is a
very essential process which enables company to meet its required goals, make improvements in
distribution channel if needed and earn better profits. Through marketing management technique
entities also identifies new opportunities and change them into effective ideas to make those
chances profitable(Kotler and et. al., 2018). It is basically, organizing the marketing action
company takes for making sales and achieving its predetermined objectives. In this assignment,
all the essential actions which takes place in marketing management function are discussed in
context of Chick-fil-a. It is an American fast food restaurant chain and one of the largest of its
kind. Company serves several food products to its customers and its speciality is its chicken
sandwiches. Chick-fil-a was founded by S. Truett Cathy initially founded in 1946 as Dwarf Grill
but in 1967 its was rebranded as Chick-fil-a. Organisation have its operations in U.S., Canada
and UK and have its headquarters in College Park, Georgia.
Audit of macro and micro environment of Chick-fil-a
Marketing environment of every organisation is mixture of both internal and external
factors and its audit relates to critical evaluation of all the related elements. These are those
components which can foster or hinder the performance of Chick-fil-a if proper actions in
relation to these factors are not taken. Use of SWOT and PESTLE analysis tools are done for
understanding the internal and external environment of Chick-fil-a.
SWOT analysis
SWOT is acronym for Strengths, Weaknesses, Opportunities and Threat, out of these two
elements are internal to company and other two are external. This tool is used by organisations to
understand their internal strengths and weaknesses for working on them in order to earn better
profits(Atwal and Williams, 2017). Another advantage of this method is it helps company in
exploring new opportunities and taking actions to mitigate the effects of the threats which exist
in external environment of company. Strengths are those elements which highlights those areas in which Chick-fil-a excel and
what gives Chick-fil-a its uniqueness.

 Weaknesses are the factors which stops company from performing its best and working
on its full potential. Opportunities refers to those external components which are favourable for Chick-fil-a
and which enables firm to improve and earn better returns.
 Threats are the factors which can hinder the actions and related performance of Chick-
fil-a, they are basically those elements which can harm organisation.
Strengths Weaknesses
 The biggest strength of Chick-fil-a is
the services they provide to their
consumers. Their customer service is
the biggest reason behind their success.
 Another strength, of Chick-fil-a is the
ambiance in their restaurants. They
have very simple décor in their outlets
which attracts more people.
 Due to rapid growth of fast food
industry, customer retention is
becoming very difficult(Keegan, 2017).
Consumers wants to try new things and
therefore, they are not loyal to any
brand.
 One more weakness of Chick-fil-a is it
do not innovate. With changing
conditions company has to bring
innovative products in their menu.
Opportunities Threats
 People are becoming more health
conscious with every passing day. This
opens new doors for Chick-fil-a they
can introduce new healthy fast food
option in their outlets(Olson and et. al.,
2018).
 Poor customer services which
consumers get from fast food joints
have shifted the attention of public on
Chick-fil-a, which is a huge
opportunity which company can
explore.
 Very obvious threat every company
face in all industries, is threat of new
entrant and aggressively increasing
competition. Chick-fil-a is also in
trouble because many new competitors
are coming in and existing companies
becoming huge threat for Chick-fil-a
day by day.
 Scandals about the quality of chicken
used by fast food restaurant is another
threat which is there in external
environment fo Chick-fil-a.

PESTLE analysis
This is another framework including six components in it which enables companies to
have enough understanding and gain required knowledge about the external market conditions in
which company is performing its operations. It has several elements which are as follows: Political refers to political conditions and environment in economy in which company is
having its business. It related to all governmental rules and regulations imposed by the
ruling party. Local government plays very influencing role in Chick-fil-a while making
policies for its business and operation. Economical factor refers to those elements which has direct and very potential impact on
the respective markets. Some components which are essential for businesses to analyse
while understanding economical condition of market is inflation rate, GDP growth and
disposable income(Chernev, 2018). Chick-fil-a is affected by the fluctuations taking
place in prices on both local and international level. Also, increasing income and
consumption level of households plays a favourable role for Chick-fil-a. Social element talks about the preference, taste, values, customs and beliefs of population
to which entity is offering their products or services. These can be bifurcated as
demography trends and power structure of economy. These factors are impacting not
only the economy of country but also on the workforce availability and talent. Chick-fil-a
is exploring its opportunities of healthy food options due to changing preferences of
people. Technological component focuses on the advancement and changes taking place due to
introduction of new emerging technology in market on regular basis. Chick-fil-a is taking
steps in development of company in relation with technology, therefore, company is
investing more in R&D activities for making its products more nutritious and
healthy(Keegan, 2017). Also, Chick-fil-a is introducing new technological software for
making processes better and efficient. Legal factors is similar with political but here, specific laws of the country are discussed
and studied to make operations accordingly and ignore any kind of penalties which can
be incurred due to non-compliance with the law. Chick-fil-a is very cautious and attentive

while making company laws and regulations, they are in accordance with the economy.
Therefore, legal factor do not have any huge impact on it as they are already very
attentive in advance.
 Environmental factors are gaining traction really fast because of climate change and
adverse changes in ecosystem(Lambert and Enz, 2017). Therefore, consumers are more
aware and so as the firm, regulators and policy makers. Chick-fil-a is taking actions in
regards with environment and made efforts towards it. It is dedicated towards making its
operations eco-friendly and return a bit to environment off what it is taking from it.
Justifying SMART objectives of Chick-fil-a
SMART objectives are explained as Specific and Measurable objectives brings success to
company. Those aims should be achievable and realistic, this will motivate and engage
individuals for acting accordingly. And the last element is Time-bound goals, this will ensure the
agreement of stakeholders about the duration of task for attaining objectives. Specific- The aims and objectives which Chick-fil-a is setting or wants to obtain should
be specific in nature. Their objective is very specific that by want to expand and increase
their operations in UK, through franchising. Measurable- This factor relates to specific criteria in which progress can be measured
while accomplishing goals. Chick-fil-a objective is enter into UK market through
franchising and to expand its operations their and they are measuring its progress on basis
of the growth of company and sales levels. Chick-fil-a is aiming for attaining at least 20%
raise in their revenue(Moutinho and Vargas-Sanchez, 2018). Achievable- The objectives of Chick-fil-a should be attainable and not impossible in
nature. Chick-fil-a wants to open a branch in UK by seeing raise of 20% in revenue,
which is achievable as Chick-fil-a is very powerful and well known brand. Realistic- Chick-fil-a is planning to grow and expand and that is a very realistic motive.
Also, they want to expand in the relevant marketplace where, population prefer good
chicken fast food restaurant.
 Time-bound- The company is planning this expansion from very long time, therefore
after effective evaluation of external and internal market conditions. Chick-fil-a wants to
enter UK market in another 6 months with effective sales increase of 20% and expansion
of customer base.

Chick-fil-a STP strategy
STP is a process of marketing which is very essential for study and implementation of
marketing plans. It stands of Segmentation, Targeting and Positioning, this function
demonstrates a link amongst the market and organisations methods of competing in their chosen
market. Segmentation refers to splitting up the market in smaller sections with similar needs and
characteristics. This action is taken by organisations to select their target audience and
perform their actions in accordance with their desires. Chick-fil-a have done their
segmenting on the basis of the people who wants chicken in exchange of beef. Basically,
they are approaching to those segment of population who prefer good quality chicken
products in fast foods. Targeting actions are taken by company after segmentation, here entities now have
proper knowledge about the various segments of society(Wierenga and Van der Lans,
2017). Now, out of these segments company will target one or two segments who's
requirements and needs match with offerings or products or services of organisation.
Chick-fil-a always target middle and upper class urban families of society and targeting
same population in UK too.
 Positioning, after segmenting and targeting the desired market company now position
itself in their chosen marketplace. They make strategies and plans to introduce its
competitive product or service in market. Chick-fil-a have positioned itself in markets as
fast food chain, who's speciality is in chicken products and therefore, its menu is chicken
based. They do not support beef products or other meat.
Chick-fil-a basically, made its image as providing customer centric dining, with healthy and
goods quality food plus beverages on affordable prices(Johnsen, 2018). Chick-fil-a is offering
superior food quality along with great customer experience to its targeted audience in UK, which
can become its competitive advantage over other fast food providers in UK.
Competitor analysis of Chick-fil-a
Chick-fil-a offerings are based on one single ingredient that is chicken, which brings it in
exposure with lot of competitors like KFC and Popeyes. Chick-fil-a fast food competitors in UK,
are McDonald's, Burger King. Company has immense competition present in marketplace which
is as follows:

 With McDonald's- Chick-fil-a is facing problems, it is no longer strong enough with its
competitors. McDonald's franchisee's have recently asked company to add a chicken
sandwich in their menu to be competitive with Chick-fil-a. The company is not the only
brand which provides chicken products but its uniqueness is it serves sandwiches and
now McDonald's is planning to introduce its customise chicken sandwich on demand of
its franchise owners.
 With Popeyes- Another competitor of Chick-fil-a is Popeyes Louisiana Kitchen, who is
planning to add its fried chicken sandwich to be competitive with Chick-fil-a. Due to this
news an all out social media war began between both Chick-fil-a and Popeyes Louisiana
Kitchen.
This shows that Chick-fil-a is facing huge competition in market and have to be very competitive
in nature. Organisation has to make its policies according to these situations and work
effectively(Gummesson, 2017). Chick-fil-a has to take protective measures for competing,
surviving, growing and attaining its predetermined objectives.
Explaining market strategy of Chick-fil-a by 7 P'S analysis
Marketing mix or 7P's model is set actions or tactics used by organisation for
promotion of its brand and offerings in market. Earlier their were just four 4P's associated in this
process that is Product, Price, Place and promotion. But, because of changing external and
internal environment company three more P's are added which are People, Process and Physical
Evidence. All these are explained below in context of Chick-fil-a:
 Product represents the offering of company which is produced for satisfying the needs of
targeted market audience. Products can be in tangible and intangible form as its can also
be a service or services which entity is offering. Chick-fil-a is offering chicken
sandwiches in UK, through franchising. They have adapted and made their sandwiches
taste like the way people in UK likes and wants(Felix, Rauschnabel and Hinsch, 2017).
 Price refers to the pricing strategy which firm adopt for its products or services according
to all costs and benefits related to those offerings. Chick-fil-a is applying the same
pricing strategy as it applies in other markets for the UK market also. As its targeted
audience is same that is middle and upper class urban families. Also, because of
competition company cannot raise or decrease its prices.

 Place is the areas, locations and regions in which entities are having its business
operations and making their products available. Chick-fil-a mainly operates in Canada
and U.S., but now planned to expand into UK economy. It is exploring its opportunities
of expansion into other marketplaces too.
 Promotion elements talks about the plans, tools and means companies uses to introduce
and publicise its goods or services in external environment, creating brand image in
public. Chick-fil-a takes very innovative and technical approach for promoting its
products and same is used by it for UK market, with slight changes in it. They are
offering free meals to people who visit them in cow dress. By this they promote their
products and also show their support for anti beef food products(Homburg, Jozić and
Kuehnl, 2017).
 Process are the systematic methods and ways by which entities perform its activities in
order to serve to people and earn profits. These processes vary from company to
company and from industry to industry because of the different structure and operations
of individual firm. Chick-fil-a had to make some changes in their process because of the
geographical change, they made their processes in relation with the requirement of UK
and its atmosphere.
 People here refers to the expertise and skilled staff entities have, they are the one's who
executes all the plans of company, bringing profits to them. For UK franchising Chick-
fil-a have created employment opportunities for the local people in the area where they
are opening their outlet with franchisee. Although, they have gone through very effective
and lengthy hiring process for appointing the best talents.
 Physical Evidence is another very essential and new element added to this tool, in which
those activities are seen which proves the presence of company operations in market.
Chick-fil-a performs several activities for making itself evident like they use their logo on
their tissues, they also made a video called “Running of the Cows” acts as the proof of its
presence.
CONCLUSION
From the above report, it can be concluded that marketing management function of
planning, implementing and controlling all marketing activities is an essential and beneficial
process for company. Marketing management tool enables organisations to study its external and

internal environment for learning all new trends and making improvements in its operations if
needed. It enables company to make effective decisions, set SMART objectives and enables
them achieve their aims along with earning great profits. Marketing management technique also
ensure that the firm is operating in correct place, with appropriate product and with right pricing
and promotional strategies. All these will are possible when company is having proper process to
carry their business action, skilled labour and good presence in public. All this will result in
obtaining effective and efficient results by performing all tasks and duties according to plans and
strategies made.

REFERENCES
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