Marketing Management: Chick-fil-A Expansion to UK

This document provides an overview of marketing management and focuses on the expansion of Chick-fil-A to the UK market. It includes a SWOT and PESTLE analysis, segmentation, targeting, positioning, and competitors analysis.

Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MIAN BODY...................................................................................................................................1
Audit of marketing environment (SWOT and PESTLE)............................................................1
Segmentation, targeting and positioning.....................................................................................4
Competitors Analysis..................................................................................................................5
Marketing strategy by using 7P's................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing management is a process of planning and executing concept of pricing,
promotion and distribution of ideas, goods and services in order to create, exchange and satisfy
individuals and organisational objectives. Through this method marketing orientation, techniques
and methods inside the enterprise is performed so that various marketing activities can be
managed. Implementation of marketing management is important for each business organisation
as it helps to understand the customer needs. Through this products and services are provided
with improved quality to satisfy customer needs. Through marketing management marketing
conditions can be analysed in advance and effective measures can be taken to avoid uncertain
conditions (Kotler and et. al., 2018).
To apply the concept of marketing management in this report Chick-fil-A an American
organisation is considered. This organisation was founded in the year 1967 by S. Truett Cathy in
Atlanta. This organisation is performing well and earning revenue of approx amount $4M in the
year 2017. the revenue generated by the organisation is more then any other fast food
organisation situated in America. Chick-fil-A is expanding its business to UK and for this audit
of the marketing environment is done. Together with this SMART objective is prepared and STP
for segmentation is introduced. Competitors analysis and marketing strategy will be mentioned
for the organisation in this project report.
MIAN BODY
Audit of marketing environment (SWOT and PESTLE)
Marketing audit is a well defined process through which systematic analysis and
evaluation can be made for the marketing environment in which business is operating. In the
marketing audit report analysis of internal and external market of the business is mentioned. As
Chick-fil-A is expanding to UK market and it is very important to assess marketing conditions in
UK. In this process macro and micro analysis is done for the organisation through SWOT and
PESTEL analysis for assessing the current marketing conditions and making all reasonable
efforts to eliminate uncertainties.
SWOT Analysis of Chick-fil-A organisation is described as follows-
SWOT analysis is an technique that is used to assess internal business environmental
conditions of the organisation.
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Strength-
 Quality of service is termed as one of the biggest strength that becomes one of the
important reason for success of the organisation.
 Ambiance of the outlet is one of the attractive tool that enhances more and more
consumer interest towards business organisation.
 The organisation is famous for its chicken sandwiches and other chicken menu. Employees of Chick-fil-A organisation are paid at much higher rate then industrial
average rate and this leads to attract more and more talent in the business organisation
(SWOT analysis of Chick-fil-A, 2019).
Weaknesses-
 Chick-fil-A organisation do not possess international presence and that restricts its
consumer market.
 Chick-fil-A charges high prices for their goods in comparison to other competitor
businesses.
 Fast food industry is growing at very fast rate and it become very difficult for Chick-fil-A
organisation to retain its consumers for long duration of time. In fast food organisations like Chick-fil-A amount of innovation is less and this also
serves as a weakness for attracting more and more consumer group.
Opportunities-
 In the present time more and more concern is provided to health and serving healthy fast
food by Chick-fil-A organisation serves as an opportunity to grow and develop at
international market. In the present time Chick-fil-A is operating only in US and expending in the international
market is one of the most attractive option to expansion.
Threats-
 As Chick-fil-A organisation is serving fast food that involves chicken as one of the most
important ingredients and quality of chicken can become a threat in long run for success
of the organisation.
 Fluctuation in the price of raw material may hinder the profitability of the organisation
and this will leads to a profitability threat in future.
PESTEL Analysis of Chick-fil-A organisation is described as follows-
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PESTEL analysis is a tool that is used to access external marketing environment.
Through this method marketing environment assessment is made on the basis of political,
economic, social, technological, environmental and legal factors available in the business
environment. Through this tool Chick-fil-A organisation will assess marketing condition of UK
so that expansion of business can be done in cost effective and risk minimising manner (Keegan,
2017).
Political: Businesses are influenced through rules and regulations implemented by
federal government laws and regulations. When business is expanded to international level then
application of international laws will be their on Chick-fil-A organisation. This will help to
enhance global image of organisation to large consumer base. As before BREXIT political
stability was renounced in UK but in the present time when expansion is made to UK then
Chick-fil-A organisation needs to access the political market.
Economic: When expansion of business is done in the international market then in that
case it will leads to analysis of financial market structure analysis of UK. When business is
expanded at international level then risk related to foreign exchange will be assessed so that
Chick-fil-A organisation can minimise various risk related to economic conditions of UK. Rate
of inflation in the UK market make it risk for each business organisation to sustain and before
expansion a detailed analysis will be made regarding economic conditions of UK market.
Social: Social environment for a business organisation is comprised with consumers that
are targeted to be served. Organisations success is largely depends on the type of product served
by them while match with consumers taste and preference in the country or not. As Chick-fil-A
organisation wants to expand its business in the boundaries of UK then living system of the
consumers needs to be accessed. This will help in serving large number of consumers as per their
taste and preference in the market (Chernev, 2018)..
Technological: Development of technological usage in the organisation has become
mandatory to grow and sustain in the competitive business environment. Chick-fil-A
organisation is one of the well known organisation that invest in adopting new technologies to
take its products to next level. As more and more investment by the organisation is done for
research and development then in that case it will leads to growth and success in international
markets by adopting mots effective technological changes.
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Environmental: Chick-fil-A organisation in relation to ecological effect is dedicated to
operate in environment-friendly environment with conservation of the natural resources and
energy. When operations of organisation is expanded to international level then in that case risk
of resource utilization for recycle purpose will be assessed. Government of UK is paying a
special attention on environmental conditions and while operating or expanding to UK Chick-fil-
A organisation must analyse that whether the operations will be efficient to meet the
requirements of the environmental market (Deepak and Jeyakumar, 2019). To meet the
requirements with environmental conditions of UK renewable technology will be used and waste
management will be applied so that all the environmental requirements can be meet to attain
growth and success in the business.
Legal: In the present time Chick-fil-A organisation is following rules and regulations that
are applicable in US. Expansion of organisation to international markets will leads to applicable
to compliance with various legal requirements that existed to UK markets. In UK legal market is
very complex as it involves rules and regulations that leads to be followed by business
organisation. Requirements in relation to minimum wages, paternity leaves, holiday pay, sick
pay as per Equality and Employment law. All the laws and guidelines prevailing in the legal
system when followed by Chick-fil-A organisation then positive image of business is created.
Segmentation, targeting and positioning
Segmentation is the process of making the particular groups or segments on the basis of
similar interest area and buying pattern of the consumer. This basically assist the firm to focus on
the potential customers who share similar kinds of trait and can be easily build up effective
marketing strategy in order to expand the market size by catering the demand of the particular
groups. These related groups are the prospectus of company for which measures are taken to
convert them, into the loyal ones. In context to the Chick-fil-a which has planned to expand its
operations in the UK need to effectively understand the perspective of the target market and uses
different type of segment. Explanation of the different factors based on which respective
company can conduct the segmentation in the new geographical market are stated below:
Demographic: Here the large market is divided into the subsets based on the income and
age group of the people. In terms of which chick-fil-a targets to the youth as they prefer hanging
out in the restaurants with their friends and spend timer with one other. This can possibly help to
enhance the chances of revenue (Wierenga and Van der Lans, 2017).
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Lifestyle: This involve the purchasing power of the customer and their hobbies for which
chick-fil-a appeal the interest of both middle as well as high income group that prefer have tasty
and healthy stuffs and at desirable prices.
Targetting: Identifying potential customer to whom the company targets in terms of
selling the particular goods as well as services. It simply helps to deliver the right product to the
right customer which is preferable for both parties. In terms of chick-fil-a target those people
who prefer coming out with their friends and family and avail the quick services of the quality
items. Specifically it mainly focuses to the young and adult people belonging to age group 18 to
30 years who prefer to explore the new food outlet (Bagozzi and et. al., 2018).
Positioning: This is the useful method that help to set unique image of product in the
mind of customer which appeal them to avail the services fro particular brand. As Chick-fil-a is
more keen to diversify its brand and gain the wide customer base for which it can uses digital
platform to appeal the interest and share all the finite details of their offering. Within this method
social media and SEO can be used to share the valuable content and broadcast bteh customised
advertisement to the audience. Thus, repetitive advertisement can set the positioning of company
that can help the customer while making final decision.
Competitors Analysis
Competitors analysis is strategic plan that manage marketing activities in respect to
determine the current and future rivalry. To analysis about the competitors apply the both types
of strategies such as offensive and defensive to recognise the opportunities as well as threats. It is
required to evaluation to know different features of the corporate strategy that recognise that
various firms does not conduct particular analysis that affect the success, growth as well as
profitability. In the contest of the Chick-fil-a apply the porters five forces that is utilised to use
according to micro environmental factors and capability of the organisation. It will support to
raise the profitability of the organisation. In the porters five forces consist of threat of new
entrants, threat of substitutes, bargaining power of suppliers & customers and competitive
rivalry. From the 5 forces three related with the horizontal competition ans two related with the
vertical competition which is discussed underneath:
Threat of new entrants: According to this factor identify the threat of the new entrants
due to low brand image and repetition in the food products. It is creating barriers for the new
entrants and foreclose them from the entering into the industry. There are different types of
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barriers for the new entrants because every one not getting success easily in the food chain
industry. The new entrants means new company for the existing company who already provide
services in same sector. For this purpose they are planning to change the business at the market
in respect to acquire growth in successfully manner. The particular factor become barrier can be
the both type of industry and legal as both can influence on the size and image of the
organization and its functional activities plays significant role to survive at the market place.
Such as chick-fil-a, have low danger to enter in this circulation on world wide controlling with
well reputed image (Zimmerman and Blythe, 2017).
Threat of Substitute: The substitute of product for the chick-fil-a is its options that
provided b the company at the market in order to cover large market in the better prices. When
these products offered by the competitors in the same price so it become threat for the company.
To reduce the danger required to apply advanced technology and better services to as compare
with the other competitors. There has been different tariff risk of the substitutes that replace to
competitors products like Nestle product such as boiled water and pasteurized milk. It is actually
claim for the particular food items that are not safe to use as resulting to deduct sales. Therefore,
it is required to Chick-fil-a focus on the health benefits and their products and related with the
options. So the particular factor consider as the high for the restaurant due to high thread from
substitute leads to low profitability so for this required to decrease the amount of the product.
Bargaining power of suppliers: The power of suppliers are the one who can develop
monopoly at the market to demand of high prices in the set quality as well as quantity of the
product. In this factor mainly focused on the production activities as well as production cost. In
the case of food industry company have limited suppliers that supply different item or the food.
As a result they are increasing price of the products. In the food and beverage market, chick-fil-a
have highest share of the market where required to higher number of supply chains
(Gummesson, 2017). In order to chick-fil-a has actually likewise been worried for the suppliers
as believe in long term relations. Due to increase prices of the supplier company compromise
with the quality. Many suppliers are not communicate about the profit of the industry in order to
produce products that are provided by its suppliers different.
Bargaining power of customers: In present time customer keep on high and try to fulfil
the demand on time so it become the reason that bargaining power of the customer is high. That
direct impact on the productivity as well as profitability. Due to conduct different operating
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activities of company regarding to this factor is not much favourable for both the suppliers as
well as company. According to this factor chick-fil-a can introduce the products and providing
according to demand of the customers.
Competitive rivalry: In this force large in the food industry that is recognised by the
different companies in order to compete with the other rivalry in complex manner. To maintain
the power as well as reputation at the market place required to prepare effective strategy against
the competitors. Such as Chick-fil-a competitive rivalry is high due to exist many competitors in
the UK such as MacDonald, KFC and many others that become barrier for the company to
accomplish success effectively (Homburg, Jozić and Kuehnl, 2017).
Marketing strategy by using 7P's
To compete in the UK market required to conduct marketing analysis that helps to
prepare effective strategy and chick-fil-a easily establish their business at new place. The
particular company mainly dealing into the food and beverages sector which is a private food
restaurant and wants to expand business activities from US to UK. In order to develop effective
marketing strategy conduct market mix that provide all the information in the detailed manner
such as:
Product: it is a food chain where consider main products are food items such as chicken
sandwiches, breakfast, launch and dinner with their set menu and also offer the catering services
to the people for the special events. Furthermore, it also offers different drinks and selected food
items for the product portfolio where consist of fresh and healthy food product such as breakfast
at offer buttered biscuit fruit cup hash Browns chicken biscuit and many more.
decrease of sales. In present time the food chain mainly target to middle class people who
can not afford food in the expensive restaurant. To fulfil the need and requirement provide easy
and quality based services that attract them arrive in the food restaurant. Furthermore, the
particular organisation can utilise the market penetration strategy that supports to connect with
customer for long time. So it is understanding that the company must focus on the price at low
level to get competitive advantages (Atwal and Williams, 2017).
Place: To establish business in the UK required to right place where people easily arrive
and other food restaurant are not there. In the case of Chick-fil-a provide its services at the
Canada and US. The headquarter of the restaurant situated at Atlanta and also opened about 2200
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restaurants to expand the business activities across the other countries. The restaurant tries to
open franchise system after providing training to their customers.
Promotion: To promote their products effectively required to use different types of
promotion tool effectively that helps to increase the sales and attract customer for the restaurants.
People know about the new food chain so for this apply the advertising and social media which
is mostly utilised by the people. Promotion is important factor to achieve their set objectives due
to sustainability and profitability at the market place. For this purpose chick-fil-a develop
different campaigns where set mind regarding to customers and impress to order again fr the
food product (Johnsen, 2018).
People: In the particular strategy consist of the staff of the organisation and target to
audience to get the success the new place. There are both factors impact on the spread out
business activity at the new market place. Due to provide good quality of the food and services to
their customers that supports to fulfil the demand as per the expectation after taking the feedback
from the different types of customers.
Process: The particular factor is essential in the marketing mix due to describe the
procedure of the product and making to the consuming which consist of the production
manufacturing supply chain till it reaches to the customer. In the context of chick-fil-a
recognising the ability of the product to provides supply & demand of customers.
Physical Evidence: The particular factor used by the company to impress of the
customer regarding to particular food chain. As per the strategy different approaches affect of the
purchasing power of the customers. Such as chick-fil-a provide good physical evidence in the
restaurant through good atmosphere, interior and decorations to attract the customers (Felix,
Rauschnabel and Hinsch, 2017).
CONCLUSION
From the above report it has been concluded that marketing is the core function of the
management that help to generate the profitability of company. For this it involve couple of
activities like doing market research, conduct product planning, branding, promotion,
determining distribution channel as well as customer support services. Along with this there are
different internal factors for which SWOT analysis is used to strength the capabilities of firm.
Similarly, external factors with the help of PESTLE analysis are identified to make the viable
strategy for the dynamic environment, mitigate the chances of risk as well as help firm to gain
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long terms success. Moreover, preparation of SMART objective helps the employee to
collectively attain the predetermined objective. Further, marketing mix is the effective tool that
encompasses firm to prepare effective strategy for the new or modified product in order to
suitable deliver the right product at right market for right customers and at right place. Therefore,
it is an effective tool that help to successfully cover the market and gain the advantage of
sustainable advantage.
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REFERENCES
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