Marketing Management: Chick-fil-A Case Study

This assignment focuses on the marketing management of Chick-fil-A, including an audit of the marketing environment, SWOT and PESTLE analysis, micro analysis using Porter's Five Forces, SMART objectives, and segmentation, targeting, and positioning.

Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Audit of marketing environment (SWOT and PESTLE)............................................................1
Micro analysis.............................................................................................................................4
SMART Objectives.....................................................................................................................5
Segmentation, targeting and positioning.....................................................................................6
Competitors Analysis..................................................................................................................7
Marketing strategy by using 7P's................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing managements is the procedure of the planning and formulating the conception,
pricing, promotion and distribution of thoughts, goods as well as services in order to develop,
exchange and fulfil individual and organisational objectives. It is essential for the organisation to
meet increasing competition and the need for improved methods of distribution to deduct cost
and to generate profit. Marketing management today is the most important function in a
commercial and business enterprises (Atwal and Williams, 2017). It helps to analysing the
customer demand according to that provided services with modified quality. This assignment
based on the Chick-fil-A which is an American organisation. It is founded in 1967 by S. Truett
Cathy in Atlanta. The company has been performed in well manner and generating revenue
about $4M in the year of 2017. The provide competition to same industry and earned more than
any other fast food which is established in America. Chick-fil-A wants to spread out the business
activities in UK so for this require to conduct audit of marketing environment. Along with set
SMART objectives and STP approach to identify segmentation. Competitors analysis and
marketing strategy will be considered in the particular assignment.
MAIN BODY
Audit of marketing environment (SWOT and PESTLE)
Marketing audit is defined as review of the marketing plan, objectives, strategies and the
business activities that have been formulation in particular area. It is a systematic determination
and analysis can be made for the marketing environment in order to conduct business activities.
Through the analysis focus on the internal as well as external market of the business (Bagozzi
and et. al., 2018). Chick-fil-A wants to expand business in UK for this require to analysis market
conditions in UK. For the micro and macro environment analysis conduct SWOT and PESTLE
analysis.
SWOT Analysis of Chick-fil-A organisation is described as follows-
SWOT analysis is an technique that assess the internal activities in order to analysis
business environment condition of the organisation:
Strength:
 The main strength of the organisation is popular for the chicken sandwiches and other
chicken menu.
1

 The company offered excellent services which is biggest advantage and also provide self
service option to become different in the market (Chernev, 2018).
 It provide good place to spend more time with loving ones and provide good ambiances
that attract to customers.
 Chick-fil-A offer good salary to their employees as compare of other company that attract
talented staff members in the organisation.
Weakness:
 Chick-fil-A poor geographic coverage due to have not conduct business activities at
international level and curtail its consumer market.
 Due to new entrains fast food industry become more competitive so it create problem for
the Chick-fil-A to stay long time in the market.
 The Chick-Fil-A charges high prices from the customer as compare of other fast food
competitors.
 In fast food industry required to innovation that not apply by the Chick-Fil-A so it
presents weakness for influencing to more and more consumer group.
Opportunity:
 In present time people aware for the health so prefer to good food so Chick-fil-A have
chances to grow and develop at global market.
 To set good image in the market against the fast food so for this set a specific customer
segment to increase customer base.
Threat:
 Chick-fil-A conduct business activities in fast food sector where consist of chicken. It is
one of the important ingredients that become threat for the organisation to run business
for long time.
 The main threat for the company of their competitors like MacDonald which is famous
eatery even today.
 Due to continuous changes in the price of the raw material impact on the profitability as
well as productivity of the business.
PESTEL Analysis of Chick-fil-A organisation is described as follows-
PESTLE analysis is a tool which is applied most of the organisation in order to analysis
external activities Through the analysis know the risk factor and assessment based on the
2

political, economic, social, environmental, technological and legal factors. To expand business
activities of Chick-fil-A in UK, for this require to analysing the market position for the fast food
industry such as:
Political: In this factor involves all the regulatory practices with the flowing of
international rules and legislation that support to country in order to conduct business activities.
To spread out the business activities at the global level required to followed international
legislation of the fast food industry. So it supports to Chick-fil-A present effective manner at the
global level. After the Brexit political activities change and expansion become easy in the UK
market.
Economical: The particular factor direct influence to business at global level along with
potential attractiveness of the market. There are consisting of GDP growth, inflation rate,
exchange rate etc. To expand business activities at the global level analysis all the economic risk
factor at the initiation stage due to generate capital in respect to increase sales in different
countries.
Social: Social factors mainly based on the demography trends, power of society,
contribution of the women and many others. To enter into UK market Chick-fil-A analysis about
the population and their taste & preferences because in this business they have boundaries and
living system is different from Americans. So it is required to focus on the social activities and
government to become powerful in the UK (Deepak and Jeyakumar, 2019).
Technological: In present time every organisation adopt advance technology to grow in
the competitive market. Chick-fil-A always select new technologies to attract customers and take
its products at next level. Due to further investment company conduct research and development
in order to get success and growth in the business for long period of time.
Environmental: Chick-fil-A is used environment friendly products and recycle wastages
products to in order to create good ecological relation. It is proper utilise the natural resources as
well as energy. To spread out the business operations at global level required to follow of all
environmental act of UK government because they are paying attention for environmental
condition. To meet with the necessities of the environmental condition require to proper utilise
all the resources
Legal: Chick-fil-A follow all the rules and legislation of US to operate different business
activities and operations. Top spread out at international level required to understand all the
3

regulations of UK because UK legal market is very complex. It involves all the rules and
legislation that exist in the UK market. Chick-fil-A followed all the health and safety laws to
provide good quality food and consumer protection laws in which determine the rate of
enforcement, authorised and attitudes that can impact on the legal activities of the business.
Micro analysis
Porters five force model is used for the micro analysis that help the firm to determine
the internal functioning based on which it can make the effective strategy and conduct the
functioning of an organisations effectively (Felix, Rauschnabel and Hinsch, 2017). Explanation
of five forces in context to the organisation are defined below:
Threat of new entrants: The Chick-fil-a company experiences low substitution threat
from the new entrant as it has effective established its brand image and generated huge customer
base. This is the core advantage of the company that they have high recognition and loyalty
value due to which even the customers are less reluctant to switch and compromise in terms of
taste.
Threat of substitutes: Although Chick-fil-a company is one of the emerging fast food
outlets that have explicitly understand the functioning of market. It has build the strong network
within America but still due to the intensive competition the threat of substitution is moderate.
So to retain customer base the company need to differentiate their offering and constantly bring
modification as per the demand of market.
Bargaining power of supplier: Due to the largest size and strong networks of company
the supplier are not in state to bargain this depict their bargaining power is low. This favourably
helps the company to gain the quality profit at desirable prices so to maintain the long term
relationship effective supplier supply relationship need to be maintained in order to gain the
leverage of high profitability and productivity (Gummesson, 2017).
Bargaining power of buyer: Due to the wide number of alternatives available in the
market the bargaining power of buyer is high. To cope up with the competitive pressure Chick-
fil-a company need to constantly bring the alteration in the existing product and cater the
constant changing requirement of the customer. Along with that they can use certain technology
like display screen and adequate sitting area for the convenience and satisfaction of customer.
Competitive Rivalry: It represent the presence of the competitor that can affect the
business processes as well as its functioning affecting the profitability of firm. So the
4

competitive pressure for the Chick-fil-a is relatively high due to which they need to be
competitive enough in terms of securing the existing market and gaining the interest of potential
customer.
SMART Objectives
To expand business in UK, Chick-fil-A introduce new cheese chicken burger to attract
customer in the UK market that supports to increase profitability as well as productivity. For this
required to set SMART objectives as well as goals that helpful for the business that define
underneath: Specific: To introduce new product in the market required to define detailed information
about the product that helpful for the customer to determine the quality and standard of
products (Homburg, Jozić and Kuehnl, 2017). Objective need to be specific if there is
great chance of achieved. To make them specific required to Chick-fil-A should focus on
five “W” like who is involved, what should acquire, when the goals is achieved, when
they want to acquire and why do they want it. Measurable: It is defined as specific area that use to measure the growth of the business
to achieve set goals and objectives. For this required to company set all the goals
according to priority then measure the progress. Objectives are measuring when ask some
question to indicate regarding to growth and how can they achieve it. Achievable: The company set short term as well as long term objectives for this prepare
effective strategies to achieve it. For the short term they are set 7% increment in the sales
as well as profitability and in long term set target about 15%. Realistic: To define the goals and objectives should be realistic that can easily achieve by
the company in certain period of time from the real resources. SMART objectives should
be realistic in respect to achieve. For this required to company focus on every strategy
and take proper time.
 Timely: These objectives can be achieved by the Chick-fil-A in certain period of time.
These objectives define goals should be made as well as achieved in set period time for
short and long term objectives as have their start and end date. If organisation does not
set any time limit for the objectives so it would not be achievable. So for this required to
consist of end date and when it should be achieved.
5

Segmentation, targeting and positioning
Segmentation simply refer to the composition of activity under which the firm identifies
the potential customer based on which the whole market is further divided into the small groups.
This involve the similar cluster of group that include the people who share similar type of
interest, trait as well as needs and build the strategy effectively. In context to Chick-fil-a
company to widespread its fast food chain and function effectively it segment its market with the
objective to coordinate with the needs of customer (Johnsen, 2018). Different types of the
segmentation used by respective company are explained below:
Demographic: Within this type the classification is done on the basis of income, age
group and occupation of people. It terms of these factors it mostly segment the youth as well as
adult that prefer coming out with their love ones such as family and friends and spend quality
time with one other. The fast serving restaurant that is Chick-fil-a company can more favourable
enhance the revenue of firm through this mechanism.
Lifestyle: In terms of lifestyle Chick-fil-a company explicitly understand the changing
requirement of customer and serve them the products effectively. As per lifestyle segmentation
the company successfully involve high and middle end customers that are more willing to
enhance the market share of company.
Behavioural: As per behaviours segmentation precautions are taken by the internal staff
to manage the record of company and understand their perception. This helps the company to
make the brand loyal customers by taking their constructive feedback and strength the
distribution channel to cover the interest of whole market effectively (Keegan, 2017).
Targetting is the method by which the firm determine particular section of the society to
whom they have to cover on the basis of segmentation. This is the most efficient tool that can
help the firm to gain success because they get the opportunity to cater the right audience by
delivering them suitable product. It helps to enhance the profitability of firm due to which Chick-
fil-a company on the basis of market research understand the perception of customer and offer
the quick and desirable services to the different category of people such as youth and adults. It
specifically cover the youth and adults people that fall under the age group of 15 to 35 years of
age. They are more fond to get the area where they can spend quality time and have fast food.
Positioning is simply done to spread the awareness amongst customer by formulating
effective image of the brand in the mind of customer. This appeal the interest of customer and
6

enhance the customer base for the particular brand. In term of Chick-fil-a company makes
significant effort to retain the interest of existing customer in order to gain the advantage of word
of mouth publicity. Along with that it uses social media and email market to approach existing
and potential customer by building significant image.
Competitors Analysis
Chick-fil-A is one of the established brand of United Stated that is highly preferred by the
audience due to which the company adopts Market Diversification strategy. Within this strategy
the company open diverse outlet in different state of the US to deliver the different varieties of
product effectively (Kienzler and Kowalkowski, 2017). Along with that the company extensively
uses advertisement campaigns and sponsor different events of sports in to enhance the brand
recognition value. The company has even established the effective online presence from where
they deliver the value to the customer via online catalogue. This gives diverse options to the
customer based on which they can make the judgement effectively. In terms of competitors
McDonalds is the intensive competition of the respective company as it has strong global
presence. So it is suitable for the company to use the diversification in order to expand services
and gain international presence effectively.
Marketing strategy by using 7P's
Product: Chick -fil- a provide vary range of products to its target consumer . Its a
delivery of fast food , offering from breakfast to dinner , variety of food is delivery to different
segment of consumer aiming and focusing young and adult audience , particular product is
introduced in a market after targeting the custom need and wants . Chick -fil- a offers varieties
of sausage , bag, egg , soft drinks ,coffee.
Price: Chick -fil- a charges slightly higher price than other competitors , chick -fill
believe to have better quality over quality, these price align with their strategy to target
selective higher income groups who are ready for their offering, Chick -fil- a charge higher
prices as compare to their competitive , because they are designated accordion of t raged
consumer (Kotler and et. al., 2018) Prices justification with the quality of product , and consumer
are also ready to pay for such product of chick-fill .
Place: chick -fill has covered varies range of place with its outlets ,and is established in
USA, Canada and south Africa. Chick -fil- a operate in wide geographic presence with a opened
restaurants in cities like new york,Manhattan and Columbia, we can find Chick -fil- a outlet
7

various places and serving its target consumer , different places have different customer with
different taste regarding Chick -fil- a product. Chick -fil- a can be available on vertical as well as
on horizontal places
Promotion: It include the promotions strategy which used to increase the demand of
products. Chick-fil-a use the online platform to promote their products from email marketing to
TV or radio promotion. They encourage people to visit their restaurant on Cow appropriation day
on every July (Rinallo Bathelt and Golfetto, 2017). These effective marketing strategy help the to
attract more customers which further increase the production as well as profitability.
Physical evidence: Company's products are their physical evidences, in context of Chick-
fil-a restaurants are the physical evidence for them. Along with this, it include the brand name
along with customer services which they offer in order to maximise satisfaction level of the
consumers. In addition, it include the waiters, employees who work their treated as ohysical
evidence of the company.
People: In this marketing mix strategy, company target the people from where they
maximise their earnings. So in context of Chick-fil-a, company target the high income youth it
become their potential customers because these people prefer to eat more outside and ready to
spend more. Company target the young age people who prefer to buy food rather than cooking.
Process: This strategy include the way of performing their operational activities and how to
achieve their target. In context of Chick-fil-a, company build restaurant and offer foods to the
consumers. For the franchisee they need around $ 10000 and further they required to provide
training and done interview process to hire skilled person for the operational activities (Wierenga
and Van der Lans, 2017).
With the help of marketing mic, organization able to make their strategies which make
them capable to achieve their organizational goals & objectives. Along with maximize the
production as well as profitability.
CONCLUSION
From the above report it has been determined that marketing is the core area of
management that help to understand the response of customer and function to cater the interest of
external stakeholders towards company. So to carry out the operations of firm both internal as
well as external factor need to be undertaken by firm which include both SWOT and PESTLE
analysis. This further helps to generate the effective strategy to mitigate the chances of risk and
8

expand the operations effectively. Along with that preparation of SMART objective helps to
determine the objective which needs to attained and helps to gain the advantage of sustainable
development.
9

REFERENCES
Books and Journals
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Bagozzi, R. P. and et. al., 2018. Marketing-Management. Walter de Gruyter GmbH & Co KG.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Deepak, R. K. A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Felix, R., Rauschnabel, P. A. and Hinsch, C., 2017. Elements of strategic social media
marketing: A holistic framework. Journal of Business Research. 70.pp.118-126.
Gummesson, E., 2017. From relationship marketing to total relationship marketing and
beyond. Journal of Services Marketing. 31(1). pp.16-19.
Homburg, C., Jozić, D. and Kuehnl, C., 2017. Customer experience management: toward
implementing an evolving marketing concept. Journal of the Academy of Marketing
Science. 45(3). pp.377-401.
Johnsen, T. E., 2018. Purchasing and supply management in an industrial marketing
perspective. Industrial Marketing Management. 69. pp.91-97.
Keegan, W.J., 2017. Global marketing management. Pearson India.
Kienzler, M. and Kowalkowski, C., 2017. Pricing strategy: A review of 22 years of marketing
research. Journal of Business Research. 78. pp.101-110.
Kotler, P. and et. al., 2018. Marketing management: an Asian perspective. Pearson.
Rinallo, D., Bathelt, H. and Golfetto, F., 2017. Economic geography and industrial marketing
views on trade shows: Collective marketing and knowledge circulation. Industrial
Marketing Management. 61. pp.93-103.
Wierenga, B. and Van der Lans, R. eds., 2017. Handbook of marketing decision models (Vol.
254). Springer.
Ziemba, P., Jankowski, J. and Wątróbski, J., 2018. Dynamic decision support in the internet
marketing management. In Transactions on Computational Collective Intelligence
XXIX(pp. 39-68). Springer, Cham.
Zimmerman, A. and Blythe, J., 2017. Business to business marketing management: A global
perspective. Routledge.
10