Marketing Management: Chick-Fil-A's Expansion in UK

This assignment covers various topics such as macro/ micro analysis, statement and justification of 2/3 SMART objectives, STP strategy and perceptual map etc.

Marketing
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Audit of marketing environment..................................................................................................1
Statements and justifications of 2 / 3 marketing objectives.........................................................4
Clear segmentation, targeting and positioning strategy and perceptual map...............................4
A competitor analysis..................................................................................................................6
Marketing strategy using 7P's......................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Marketing management is a process which is focused by business entities for the purpose
of applying different techniques and tools to market products and services sold by them. In order
to reach the long term business goals it is very important for companies to make sure that they
are managing all the marketing activities properly or not (Aghazadeh, 2015). This report is based
upon Chick-Fil-A which is an American private fast food chain and founded by S. Truett Cathy
in year 1967. Currently the company is planning to franchise its business in UK for the purpose
of market expansion. This assignment covers various topics such as macro/ micro analysis,
statement and justification of 2/3 SMART objectives, STP strategy and perceptual map etc.
Additionally a competitor's analysis along with marketing strategy using 7P's are also covered in
this project.
MAIN BODY
Audit of marketing environment
As Chick-Fil-A is planning to expand its business in UK by opening various franchises
there. For this purpose it is very important for the management to make sure that they are
conducting marketing audit to analyse the macro and micro environment. It will be beneficial to
formulate effective strategies for development of business. There various tools and techniques
which could be used by companies to analyse marketing environment. Description of all of them
is as follows:
Macro environment: It can be defined as the set of different factors which are affecting
functionality of an organisation. For all the companies such as Chick-Fil-A it is very important to
analyse it so that the future plans for expansion could be executed properly. PESTLE analysis is
the most effective method of assessing it. It has six different elements which are analysed in the
context of UK so that management of the company can get aware of external forces that may
influence the expansion of business (Baker and Saren, 2016). All the component of it are
discussed below in context of the company:
 Political: This force of PESTLE analysis consist different components such as political
stability or instability, govern]metal policy, taxation, terrorism etc. In order to open new
franchises in UK it is very important for Chick-Fil-A to analyse political situation of
United Kingdom. Currently, it is dealing with instability due to Brexit as it has affected
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the whole territory and it is affecting the business negatively. For Chick-Fil-A it will be
very tough to establish it self successfully in these situations. For the purpose of dealing
with them the managers are required to gather detailed information of policies which are
changing due to Brexit and then formulate organisational policies for expansion.
 Economic: Interest, wages, inflation, exchange, deflation rates, economic growth etc. are
such factors which may leave impact upon development of such business which are
looking for expansion. As Chick-Fil-A is planning to establish itself in UK therefore it is
very important to analyse the growth of the economy so that opportunities for
development could be analysed. Per worker output in UK is between 10 to 15% which is
very low as compare to other nations (Economic condition of UK, 2019). In order to
expand business there it is very important for the managers of company to formulate
strategy according to it so that organisation can attain growth.
 Social: There are various elements of this force of PESTLE analysis which are age
distribution, customers attitudes, demographics etc. For the purpose of opening new
franchises in UK it is very important for Chick-Fil-A to pay attention towards all of them
in context of the territory. Currently, eating habits of UK's citizens is changing they are
motiving towards healthy and vegetarian food. On the other hand, people in US prefer
non veg food. Therefore it will be essential for the organisation to consider all these
factors while expanding business in UK so that it could be established successfully.
 Technological: Elements such as emerging technology, technological advancement and
enhancement etc. are considered as the part of this component of PESTLE. In order to
open various franchises in UK it is very important for Chick-Fil-A to make sure that it is
paying attention towards all the new trends as can help to increase its demand. The
management can use innovative ways to market itself in UK so that large number of
customers get aware of that new franchises of Chick-Fil-A will be opened in UK (Baker,
2014).
 Legal: Rules, regulations, acts and legal implications such as health and safety, consumer
right, product safety etc. are these factors. For Chick-Fil-A it will be very important to
comply with all of them while opening its franchises in UK so that business could be
established successfully. Food hygiene legislations in UK are very strict therefore, it is
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vital for Chick-Fil-A to execute business according to it so that the goals of expanding
business there could be accomplished.
 Environmental: Pollution, climate change, CSR, weather etc. are environmental factors
which should be focused by all the companies looking for expanding business as it can
help them to establish a good social image. As Chick-Fil-A is planning to open new
franchises in UK therefore all the environment protection laws of the nation will be
required to be complied by the company. It will help to make sure that business could be
expanded properly in UK by following all the policies related to protection of
environment (Baker, 2016).
Micro environment: It can be defined as the set of different elements of a firm which
can help them to analyse their actual position so that growth in future could be acquired. As
Chick-Fil-A is planning to expand its business in UK so it is very important to assess it micro
environment. SWOT analysis is the best technique which could be adopted for the same purpose.
It will be beneficial or the company to determine all the strengths and weaknesses of it. With the
help of it the managers will be able to form effective strategy for business expansion. All the key
element of it are discussed below in context of Chick-Fil-A:
Strengths Weaknesses
 The ambiance of all its restaurants is
very good and company has planned to
keep it same in UK also so that the
business could be established
successfully.
 Brand image of Chick-Fil-A is very
good which will be beneficial for it to
expand its business in UK successfully.
 It only provides chicken eating items
which are limiting the choices of
customers.
 The price of all the fast food items of
Chick-Fil-A is very high which affects
the buying decision of customers.
Opportunities Threats
 In order to expand its business in UK
the organisation can offer healthy fast
food to the customers so that it can
meet their expectation level.
 There are various strong competitors of
Chick-Fil-A which are KFC, Mc
Donald's Popeye's etc. all of them can
affect the profitability of it by capturing
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 By making changes in the menu the
organisation will be able to attract new
customers.
its market share.
 Law suits of governmental agencies can
affect the expansion of it in UK as the
regulations of the territory are very
strict.
Statements and justifications of 2 / 3 marketing objectives
The main marketing objectives of Chick-Fil-A to expand it business in UK are as
follows:
 To attract large number of customers and increase the market share by 20% in upcoming
two years.
 Fulfil all the requirements of individuals in UK so that profitability of the organisation
can be increased by 10% in upcoming 2 years (Chernev, 2018).
By reaching to both the above described goals the company will be able to expand its
business successfully in UK and increase its profitability. In order to achieve them it is vital for
the entity to make sure that it has analysed the micro and macro environment properly.
Clear segmentation, targeting and positioning strategy and perceptual map
STP: It is one of the major components which are considered by the management while
planning to formulate marketing strategy. With the help of it, business entities can analyse the
targeted and segmented market properly. There are three main elements of it which are required
to be focused by Chick-Fil-A in order to franchise its business in UK. All of them are discussed
below in context of organisation:
Segmentation: It is the main element of STP in which Chick-Fil-A will be required to
select a market segment which will be used it to franchise it business. There are four types of it
which are as follows:
 Demographic: Under this segment all the products and services are launched by
companies in the market on the basis of gender, age, marital status, occupation and
education (Deepak and Jeyakumar, 2019).
 Geographic: While expanding business in a new country, city, region, state etc. this
segment is selected by organisation to achieve growth.
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 Psycho-graphic: When companies take personality, attitude, belief, lifestyle and values
of customers in to consideration while introducing new products or services in the market
then this segment is selected by them.
 Behavioural: Under this element of segmentation market is divided by the companies in
small homogeneous products and the elements which are focused in it are benefits
needed, brand loyalty etc. of customers.
From all the above described segments Chick-Fil-A is adopting geographic segmentation
as it has planned to open franchises in UK which is a new region for its business. With the help
of it, the enterprise will be able to increase its profitability.
Targetting: When segment is being selected the it is the next responsibility of managers
to select targeted customers in the segment. The targeted segment of Chick-Fil-A is people
between 14 to 40 who prefer to have fast food. The company is targetting upper class clients
because the price of all its food items is very high (Keegan, 2017).
Positioning: In order to be the first choice of customers it is very important for business
entities to position a positive image of the organisation in their mind. There are various method
which could be used by Chick-Fil-A for the purpose of positioning itself in the mind of its
customers. The management can offer a free meal to its regular customers, discount points could
also be provided to them on regular visits etc. With the help of these strategies the company will
be able to meet expectation level of clients and position itself in their mind.
Perceptual map: It is a visual presentation of perceptions of customers or potentials
about different attributes such as product, service, idea etc. of brand. A perceptual map in context
of Chick-Fil-A is as follows:
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Illustration 1: Perceptual map of Chick-Fil-A, 2019
(Source: Perceptual map of Chick-Fil-A, 2019)
From the above chart it has been analysed that according to customers all the products
which are sold by Chick-Fil-A are unhealthy and all of them are fast food. As most of the people
in UK prefer healthy food therefore it is very important for the organisation to change the
perception of clients (Perceptual map of Chick-Fil-A, 2019).
A competitor analysis
For this purpose, Porter's five force analysis could be used. All the elements of it are
discussed below in context of the organisation:
 Competitive rivalry: It is one of the main element which can guide the managers of
Chick-Fil-A to analyse existing competition within the industry so that decisions for
future could be formulated on the basis of current situation. There are various
organisations in the food and beverage sector which are selling fast food to the
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customers. These are KFC, Mc Donald's, Five Guys, Burger King, Subway, Worst etc. It
shows that the level of competitive rivalry for Chick-Fil-A in UK is very high. While
expanding business in the territory it will be very important for marketers of company to
pay attention towards competition and then formulate strategy (Kerin and Hartley, 2015).
 Threat of substitutes: All the products which are providing same benefits to customers
are known as substitutes. There are various local sellers of fast food in UK which are
selling the eating items same as Chick-Fil-A's. Due to this threat of substitute for the
organisation is very high. In order to deal with it, it is very important for the organisation
to make sure that it is offering something unique to the customers.
 Threat of new entrant: Food and beverage industry of UK is very large and to attain
competitive advantage in it, it is very important for the sellers to offer unique items and
spend very large amount in the business. Chick-Fil-A is going to introduce it self in UK
and threat for new entrant in the industry is low for it as there are entry barriers in the
sector.
 Bargaining power of buyers: High level of competition results in bargaining power of
customers. There are various sellers of fast food in UK which are affecting the power of
bargaining of clients because the price of eating items of Chick-Fil-A is very high and
others are selling their products on lower price. It is resulting in higher influence of
purchasers on the sales of the organisation.
 Bargaining power of suppliers: The food industry of UK is very big and the number of
suppliers in it is very large. There are various external parties which may deliver food
production material to Chick-Fil-A there are the bargaining power of them for the
organisation is low (Londhe, 2014).
Competitive advantage: It is an element which is required for all the companies to reach
the desired success. As Chick-Fil-A is planning to expand its busines sin UK therefore it is very
important for it to use specific framework for it. For this purpose Porter's generic model could be
implemented that may direct the managers to adopt the best strategic direction for business to
grow. All the elements of it are discussed below in context of the organisation:
 Cost leadership: With the help of this strategy Chick-Fil-A can become the lowest cost
producer in the industry and establish the business successfully in UK. For this purpose
the organisation will require to exploit all its resources properly.
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 Differentiation: Under this strategy the companies such as Chick-Fil-A are required to
launch unique products or services in the market to attract large number of customers. It
can help to increase the market share.
 Cost focus: With the help of this strategy the management of Chick-Fil-A can launch its
fast food in a small market area in lower price. It will be beneficial for the enterprise to
analyse that it is able to sustain in the market or not (Moutinho and Vargas-Sanchez,
2018).
 Differentiation focus: Under this type of strategy unique fast food items could be
launched by Chick-Fil-A in a niche market of UK. With the help of it, the organisation
can attract large number of customers.
In order to achieve competitive advantage Chick-Fil-A can adopt the strategy of cost
leadership as it is a large company and introducing all the fast food items on lower cost in
broader market will help it to attract large number of customers.
Marketing strategy using 7P's
Marketing mix: It is a combination of seven different elements of marketing which are
required to be focused by all the organisations to market the products. As Chick-Fil-A is
planning to expand the business in UK therefore it is very important for it to take all the elements
of it in to consideration. Description of all of them in context of the organisation is as follows:
 Product: In order to be the first choice of the customers it is very important for Chick-
Fil-A to offer such fast food items to the clients which can fulfil their requirements. The
restaurant can add healthy eatables in its menu to expand business in United Kingdom
Successfully.
 Price: For organisations such as Chick-Fil-A it is very important to set appropriate price
for all the products and services offered to customers so that they could be retained for
long period. As it is a large brand in food and beverage sector therefore the management
of the organisation should adopt competitive pricing strategy to respond competition in
the industry (Vitouladiti, 2014).
 Place: It is very important for Chick-Fil-A to select such type of place for its restaurant
which is easy to reach for customers and at a good location. It plays a vital role in setting
a good image of organisation in mind of clients.
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 Promotion: The markers of Chick-Fil-A are required to formulate effective promotional
strategies so that it can attract large number of customers from UK. The organisation
have decided to offer one plus one meal to the regular clients of it.
 People: Behaviour of staff members is the main element which attracts customers. For
this purpose Chick-Fil-A can guide all the employees to be friendly and familiar with
customers so that they can become comfortable with them (Weinstein and Pohlman,
2015).
 Process: In order to retain the customers for a long period in future with the organisation
it is very important for managers of Chick-Fil-A to make sure that they are paying
attention towards the ordering process. They have planned to implement self service at
restaurant to that customers do not have to wait for so long to have their meal.
 Physical evidence: While expanding business in UK managers of Chick-Fil-A have
decided to give a good environment to the clients who visit their restaurant. The layout of
it will be based upon latest theme which is like a gaming zone (Wierenga and Van der
Lans, 2017).
CONCLUSION
From the above project report it has been concluded that marketing management is the
process of managing all the activities which are performed by the companies to market the
products and services. There are various techniques such as PESTLE, SWOT, Porter,s five
forces, Porter's generic, marketing mix etc. which are used by organisations to perform the
marketing functions properly.
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REFERENCES
Books and Journals:
Aghazadeh, H., 2015. Strategic marketing management: Achieving superior business
performance through intelligent marketing strategy. Procedia-Social and Behavioral
Sciences. 207. pp.125-134.
Baker, M. J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Baker, M. J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Baker, M. J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Deepak, R. K. A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Keegan, W. J., 2017. Global marketing management. Pearson India.
Kerin, R. and Hartley, S., 2015. Marketing: the core. McGraw-Hill.
Londhe, B. R., 2014. Marketing mix for next generation marketing. Procedia Economics and
Finance. 11. pp.335-340.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
Vitouladiti, O., 2014. Content analysis as a research tool for marketing, management and
development strategies in tourism. Procedia Economics and Finance. 9. pp.278-287.
Weinstein, A. and Pohlman, R. A., 2015. Customer value: a new paradigm for marketing
management. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual
Conference (pp. 132-133). Springer, Cham.
Wierenga, B. and Van der Lans, R. eds., 2017. Handbook of marketing decision models (Vol.
254). Springer.
Online
Economic condition of UK. 2019. [Online]. Available through:
<https://www.pwc.co.uk/services/economics-policy/insights/uk-economic-
outlook.html>
Perceptual map of Chick-Fil-A. 2019. [Online]. Available through:
<https://katespacesite.wordpress.com/2016/01/19/a-perceptual-map-about-restaurants/>
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