Marketing Management: Chick-fil-a Marketing Audit and Strategy

This marketing management assignment analyzes the macro and micro environment of Chick-fil-a, and proposes a marketing strategy for its expansion into the UK market.

MARKETING MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MARKETING ENVIRONMENT AUDIT......................................................................................1
Macro Analyses...........................................................................................................................1
Micro analyses.............................................................................................................................3
SMART OBJECTIVES AND JUSTIFICATION...........................................................................4
SMART objectives......................................................................................................................4
SEGMENTATION, TARGETING, POSITIONING STRATEGY AND PERCEPTUAL MAP. .5
Segmentation strategy..................................................................................................................5
Targeting strategy........................................................................................................................5
Positioning strategy.....................................................................................................................6
Perceptual map.............................................................................................................................6
COMPETITOR ANALYSES..........................................................................................................7
MARKETING STRATEGY...........................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing is the way of exchanging information and making them aware with the values
that are provided by company to them (Low, Gao and Mohdari, 2016). Chick-fil-a is the private
food chain business that was established in the year 1967. It has branches in America and now
planning to give franchise into UK market in order to expand its business internationally. Current
assignment will conduct marketing audit of firm. It will analyse its macro and micro
environment. Furthermore, report will highlight marketing strategy through which business can
gain success in the UK market.
MARKETING ENVIRONMENT AUDIT
Chick-fil-a is the private fast food company which is planning to open its branch in UK
market, before expanding its business in other location there is need to analyses condition of that
market and its suitability (Rowley, 2016).
Macro Analyses
Pestle analyses tool can be described as strategic management approach that analyses
external market and ensure whether firm will be able to deal with external factors or not.
Political factor
Government of UK is very serious about health issues of population hence continuous
making such policies that can help in keeping the person healthy. Now fast food companies are
required to follow these guidelines in order to meet the hygiene standards (Saura, Palos-Sanchez
and Blanco-González, 2019). UK has easy trade agreement procedure hence it can give
opportunity to Chick-fil-a to enter into UK market successfully. If government of United
Kingdom ban some of the ingredients in order to control over obesity problems, then it can
create problem for Chick-fil-a in sustaining in market for longer duration.
Economic factor
This is another major component that can affect overall working of company to great
extent. UK’s economic condition is very strong, as there is high employment rate that creates
opportunities for Chick-fil-a in gaining more profit and sustaining in market for longer duration.
As people is are able to spend money to get luxurious facilities in restaurants hence this would
help the Chick-fil-a in gaining success in this market (Kotler and et.al., 2015). Changes in
exchange rate and affect the sales and profit of Chick-fil-a, as if government increases exchange
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rate then entity might get fail to over the expenses which will reduce investment and revenues
will be affected (Sharma and Aggarwal, 2018).
Social cultural factors
Taste, preferences, values of customer affect the fast food industry to great extent. UK
people like to spend quality time in fast food. They like to have fast food but they are also
concern towards the health (Gneezy, 2017). There is need to offer them healthy fast food
services so that company can gain trust of people and can make them satisfied towards the
Chick-fil-a. Chick-fil-a needs to provide such products that have low fat items so that people take
interest in it. Youth rate is high in the nation hence Chick-fil-a can get more sales by entering
into this country because youth like to have such kind of meal.
Technological factors
This is the major component that can impact on Chick-fil-a, UK is the developed nation
that is using advance technologies in business. many restaurants and fast food cafes are using
POS machines, robots, AI system in their business. use of such techniques improves working
efficiency and also improve services of the firm as well. Chick-fil-a can also use such
technologies to serve its consumers well in UK market. By this way it will be able to gain
success in this market (Habibi and et.al., 2015).
Environmental factors
UK government is very concern about wastage and ensure recycling of materials so that
wastage can be reduced and natural resources can be kept secure for longer duration. UK has
many suppliers of fast food industry hence Chick-fil-a will not face any kind of trouble there. If
Chick-fil-a ensure its supply chain arrangement then it would be helpful to get more revenues
(Išoraitė, 2016).
Legal factors
Employment laws of America and UK are slight different hence there is need to have a
look upon employment regulations of UK before entering into this market. This will help Chick-
fil-a in sustaining in market for longer duration and serving consumers well. Wages rate policies,
sick pay laws will help Chick-fil-a in motivating staff and retaining talent in the firm for longer
duration. By this way it will be able to meet the requirement of consumers in UK market
(Hassan, 2019).
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Micro analyses
Chick-fil-a is the American well-known brand that was established in the year 1967. In the
year 2017 it has generated sales of 4million. There is huge competition in fast food industry,
there are many competitors of Chick-fil-a such as McDonalds, KFC etc. Company must have
strong internal positon so that it can enter into UK market successfully and can gain success in
the new market (Banerjee, 2017).
Strength
 It is the most popular brand of USA, this has great brand image in the American market.
 Customer service of Chick-fil-a is amazing, company ensures to offer satisfactory
services to consumers. That is the reason that customer satisfaction is very high.
 Wide range of products is another strength of Chick-fil-a, it offers multiple items such as
burger, sandwiches, drinks etc. that’s why firm is unable to meet needs of wide range of
consumers that help business in raising its revenues to great extent (Bianchi and
Mathews, 2016).
 Chick-fil-a keeps its workers happy by offering them amazing wages, it provides them
lots of career opportunities that is the reason that company is having most talented
workforces those who are serving consumers well.
Weakness
 Chick-fil-a has limited outlets, it has branch in USA America only. Poor geographic
coverage is the major lacking point of company, that’s why firm is unable to meet
productivity target. Other competitors have outlets in different locations that enhances
their productivity (Ton and et.al., 2015).
 Customer retention is another major weakness of Chick-fil-a, its foods are very expensive
hence people generally move to other brand to get quality and affordable products.
 Chick-fil-a is popular brand but it does not really pay emphases on innovation. In the
absence of innovation, it sometimes faces difficulty in competing with big fast food
brands.
Opportunities
 Increasing health awareness can create opportunity for Chick-fil-a, as if Chick-fil-a offers
healthy products to its potential buyers then enterprise can be able to enhance its
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customer base that would be better for business to raise its profitability and sustaining in
UK market for longer duration (Homburg and et.al., 2015).
 Expansion in new markets will create opportunities for Chick-fil-a, as firm can enter into
new market that would help in serving more new consumers and increasing profitability
of business to great extent.
Threats
 Changes in government regulation can create threat for Chick-fil-a because now it will
have to make changes in its procedure which will enhance operational cost of firm to
great extent.
 High competition can also be threat to the firm because it would create problem in
sustaining in market for longer duration (Chong and et.al., 2017).
 Increasing supplier’s cost can be threat to the firm because this will enhance cost of
Chick-fil-a and its profit will get down.
SMART OBJECTIVES AND JUSTIFICATION
SMART objectives
 To increase sales of its chicken burger by 30% till the end of 2020.
 To open three more outlets in UK within 6 months.
 To enhance number of customer of Chick-fil-a by 25% till the end of 2020.
Smart objectives are specific and measurable that help companies in increasing
opportunities to accomplish the organisational goal successfully. As Chick-fil-a has planned to
open its branch in UK now, for that there is need to have clear objectives. This can support
business unit in aligning business activities in systematic manner. Objective of raise sales by
30% is valid because this is achievable target, as if Chick-fil-a open its outlet in United kingdom
then it would be able to attract new buyers which will raise its sales easily by that desired
percentage (Dagevos, 2016). If firm is entering into this market then it will raise its revenues
which will fulfil its financial need, by this way it will be able to open new outlets in new location
easily.
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SEGMENTATION, TARGETING, POSITIONING STRATEGY AND
PERCEPTUAL MAP
Segmentation strategy
This is most essential part of marketing plan, segmentation determines the specific profile
of person to which firms aims to target. There is need to have to clear segmentation strategy so
that Chick-fil-a can offer satisfactory fast food services to its consumers in the UK market in
order to run business in this country successfully (Balmer, 2017).
Demographic segmentation will be used by the Chick-fil-a, as it will target people by
looking at their age, gender, occupation. All these are most essential parameters through which
consumers taste and preferences can be identified effectively. Chick-fil-a will offer different
products to young people and kids. There will be wide range of chicken burger items as per the
requirement of consumers. Apart from this, there will be range of burger, young people can buy
it at lower cost and also costly burgers will also be available here. The main target market will
be young people and children because they like such kind of fast food to great extent. Apart from
this, geographic segmentation will be applied by Chick-fil-a (Wu and Naidoo, 2016). As USA is
the different from UK hence there is difference between consumer behaviour, culture and
believes. Hence enterprise will take care of this element and will serve the products to customers
accordingly.
Targeting strategy
There is very essential for Chick-fil-a to target the right person, if it is not done then
enterprise will not be able to meet its sales target within stipulated period of time.
Chick-fil-a will implement mass targeting strategy; it will target everybody. This would
help business in gaining attention of mass audience and dealing with new consumers in
significant manner. Apart from this, differentiated targeting strategy will also be used by Chick-
fil-a. It will target the large group of people in the UK market. Chick-fil-a can decide to offer
different services to different segment people. As need of children are different from young
people (Liu and Chou, 2016). If Chick-fil-a offers differentiated services to the target consumers
then it would be more likely able to satisfy needs of different consumers. This would help in
generating more sales in UK market and meeting its desired objective in significant manner.
Chick-fil-a is planning to provides several benefits to different group of people, this would help
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the firm in raising satisfaction level of all consumers which will enhance its success rate in the
new market (Babin and Zikmund, 2015).
Behavioural segmentation strategy will also be used, as Chick-fil-a will understand the
behaviour of person and will offer them services accordingly. Hence it is planning to offer
reasonable price chicken items with quality.
Positioning strategy
Positioning can be defined as company’s ability for influencing the perception of
consumers (De Mooij, 2019). Chick-fil-a is planning to implement cost positioning tactic; this is
beneficial for the organisation because by this way consumers will be able to get quality goods at
affordable rates. This would be great tactics in order to raise satisfaction level of buyers. Quality
positioning strategy will also be implemented by Chick-fil-a, people want quality goods and for
that they are ready to pay high prices. If this need is being fulfilled, then customers will take
more interest in the company which will enhances success rate of firm in the UK market. If it
fails to ensure quality of its food items, then it may affect its reputation and firm will not be able
to sustain in the competition market for longer duration (Yasmin, Tasneem and Fatema, 2015).
Perceptual map
This can be defined as graphical representation of consumer perception towards products
characteristics of the firm. By preparing this map Chick-fil-a can analyses its position in the
market as per the consumer’s preferences. By this way firm can makes changes in its products so
that interest or preferences of customers can be raised towards the organisation. Subway,
McDonalds are highly demanded fast food brands. Demand of Chick-fil-a is also high because it
offers affordable products to the wide range of customers that enhances its demand in the market
and help business in growing well in new location as well (Kumar, 2017).
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Figure 1perceptual map
(Source: Successful Brand Positioning: Chick-fil-A, 2014)
COMPETITOR ANALYSES
Competitors are the major stakeholder of business that influence the working of organisation
to great extent. Company always makes effective strategies so that it can show itself better than
its competitors. That gain attention of new buyers and people take interest in products and
services of the organisation (Lam and Harker, 2015). Chick-fil-a has many competitors such as
McDonalds, KFC etc. All these have great positon in the market and always ensure offering
satisfactory goods to its buyers. Chick-fil-a has branch in USA only whereas other competitors
are working globally. This has created huge competition for business.
Chick-fil-a McDonalds Church chicken KFC
Number of
employees
It has 1000
employees.
210000 1800 24000
Locations It has branch in
USA only and has
less presence in
global market. It
has outlets in 48
sates of USA
(Successful Brand
Positioning: Chick-
It has branches
in many
countries and
has around
37855
restaurants.
It has outlets in
around 17796
locations
globally
22621 branches
it has and it is
operating
globally.
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fil-A, 2014).
Profitability 10.5Billion
revenue was
generated by
company in the
year 2018.
It has generated
20.9Billion in
the year 2018
1.2Billion
revenue is
generated by
company
26.2Billion is
generated by
firm.
Product It provides
sandwiches,
chicken dishes to
the many
customers.
It offers
hamburger,
French fries, soft
drinks, salads,
coffees etc.
many items
It offers
breakfast,
burgers, chicken
products,
desserts to
consumers
across the world.
Fried chicken,
soft drink,
milkshakes,
sandwiches etc.
Rank score 84/100 94/100 81/100 93/100
MARKETING STRATEGY
Marketing is the tool that is used by business to gain success in the market. If companies fail
to manage marketing process in effective manner, then its sales may get affected badly.
Products
Recently Chick-fil-a has chicken products which is liked by consumers. But it will also
offer coke, waffle fries, nuggets to the customers in order to raise their interest towards Chick-
fil-a. Firm will ensure to conduct market research so that needs of customer of UK can be
analysed (Babin and Zikmund, 2015). This strategy will be helpful in making necessary changes
in production so that satisfactory goods and services can be offered to UK consumers.
Furthermore, firm will ensure quality hence it will follow all the regulation to deliver high
quality fast food to the customers. Packaging of the fast-food items will be so amazing that will
help the organisation in gaining attention of buyers in new location. This tactic will support
business in sustaining in new market for longer duration successfully.
Price
This is the major factor that always influence choice of person to great extent. As the
target person of the company is children and young people hence it will offer them quality food
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at affordable prices. It will use penetration pricing strategy, in this enterprise would be able to
provide most quality food at most reasonable prices. This would be better strategy in order to
attract new buyers and gaining competitive advantage as well. Bundle pricing strategy will also
be used by Chick-fil-a, it will offer combo items to the buyers so that they take more interest in
this outlet (Homburg and et.al., 2015).
Place
Firm will use direct distribution tactic and will also sell its items through franchise
technique. It will give its franchise to the firm that has strong reputation in market. By using both
these strategies enterprise will be able to attract more consumers and make them contact directly.
Promotion
UK is the developing country where people use social networking sites mostly hence
Chick-fil-a is planning to use social sites option to promote the brand in UK market. This is the
great strategy because cost of promoting through these sits are affordable and by this way entity
can make contact with mass audience. This is the strategy that can support organisation in raising
its sales in the UK market by 30% till the end of 2020 and also it will be able to establish itself in
new market successfully (Bianchi and Mathews, 2016).
People
Employees are the stakeholders those who have high influence over business
performance. If employees are happy then firm can gain success in the market. Chick-fil-a will
ensure that its workers will feel satisfied in UK market. For that entity will provide them high
wages and will also provide them incentives if they achieve the required target. This would
motivate them and will retain talent for longer duration. In addition, Chick-fil-a will also provide
necessary leaves to its workers on time. It will provide them flexible working hour facilities. All
these strategies will support business unit in retaining skilled staff members and improving their
productivity. This would be better for business to meet the demand which will help in established
in the new market successfully (Išoraitė, 2016).
Process
Chick-fil-a will have its own website to make connection with consumers. It will
circulate necessary information on its website and will allow its buyers to raise their problem on
its website. Customer care executive will call the person on immediate bases and issue of that
individual will be resolved within 24hours. This strategy will make the person satisfied and
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happy (Bianchi and Mathews, 2016). By this way people will like to have its chicken items on
regular bases. This will support firm in raising its profit in the new market.
Physical evidence
UK has many big brands such as KFC, McDonalds. All these outlets are well structured
and have great facilities for customers. Chick-fil-a will have great logo and will have great
tagline to gain attention of potential buyers. Apart from this, there will be proper space for kids
and families (De Mooij, 2019). This strategy will make them feel good and they will think to
come to this outlet again in near future.
CONCLUSION
Study can be summarised as marketing process works as strategic tool that help business to
establish in new location successfully and raise its brand awareness globally. Companies need to
make proper strategic marketing plan so that it can sustain in market and can gain competitive
advantage. Advertisements, promotions support business in raising number of consumers and
also aid the organisation in raising its sales to great extent. Great quality food, effective
promotions and effective pricing strategy are helpful to gain success in the new market.
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Online
Successful Brand Positioning: Chick-fil-A. 2014. [Online]. Available through <
https://crisismanagementsolutions.wordpress.com/2014/03/13/successful-brand-
positioning-chick-fil-a/ >
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