Chick Fil A: Assessing UK Market Entry for Business Expansion

This report provides a comprehensive analysis of Chick Fil A's potential expansion into the United Kingdom. It begins with an introduction outlining the company's current status and the report's objectives. The core of the report includes a SWOT analysis, identifying the company's strengths (customer-oriented strategies, chicken-focused menu), weaknesses (limited international experience, higher prices), opportunities (healthy eating trends in the UK), and threats (animal rights concerns, competition). A PEST analysis examines the political, economic, social, and technological factors influencing the UK market. The report outlines objectives and justification for expansion, followed by a detailed examination of segmentation, targeting, and positioning (STP) strategies. Porter's Five Forces model is applied to assess the competitive landscape. The marketing mix (7 Ps) is then discussed, providing recommendations for adapting the company's approach to the UK market. The report concludes with a summary of findings and recommendations, emphasizing the importance of strategic planning and market adaptation for successful international expansion.

MARKETING
MANAGEMENT

Contents
INTRODUCTION...........................................................................................................................3
SWOT analysis of Chick fil A.....................................................................................................3
Pest analysis of Chick Fil A.........................................................................................................4
Objectives and Justification of Chick Fil A.................................................................................5
Segmentations , Targeting and Positioning (STP) of chick fil A................................................7
Porter's Five forces Model...........................................................................................................8
Marketing Mix.............................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Chick Fil is a very famous fast food company in United States and is thinking to expand
itself in United Kingdom and this report has the analysis that the company should expand itself
in the other countries or not. It is very important for the company to know their analysis so that
the company can know on what steps they need to improve and what is their strength so that they
can also take care of their competitors in the market.
The further report will be on the analysis of the internal and external factors of the
company, Porters 5 forces, the 7 p’s of the company and the market mix of the company. After
getting these analysis the company will be able to make the most from the other countries
wherever this company is thinking of expanding.
SWOT analysis of Chick fil A
Chick Fil A is a major fast food chain in US and is trying to expand its business in UK for
which the company has to analyze all the internal factors so that they can make the effective
strategy in assessing all the challenges and issues in the new market. (Kireev and et.al., 2016) As
Mac Donald is the leading competitors of the company it will be very tough for Chick Fil A to
compete and set their bases in the new market of UK. The company has to determine the
strengths, weaknesses, opportunities and threats so that they can evaluate the potential factors to
expand the company.
Strengths
 The company has the effective services strategy to attract the customers and also it
focuses on the customer satisfactions as all their strategies are customer oriented.
 The company uses the chicken filled sandwiches instead of burgers which are made of
red meat which have many disputes in US.
 Chick Fil A provide a better comfort to the customers in their outlets even though they
are fast food chain they do not differ to satisfy their customers. The company also provides the customer to give their orders directly to the cook in the
outlets which also allow the company to increase the information about the preferences of
the customers.
Weaknesses
 The company do not have any experience since they only operate in US and have their
outlets in the all the states of US to increase the sales of the company.

 Chick fil A is a bit pricey in reference to the competition which give a negative aspect to
the company. The companydo not increase the food quality and also do not research about the
innovative ideas to increase the sales. (Lindgreen and Di Benedetto, 2018)
Opportunities
 As UK population have the tendency to eat healthy and this can be the opportunity for
Chick Fil A to innovate and increase the quality of the food. Due to poor services in the Fast food outlets the customers are shifting to the fast food
restaurant and this will help the company to increase the sales as the company does not
compromise on the services for the customers.
Threats
 The company can sued for the usage of chickens in the large quality which can hurt the
feelings of animal lover in the new market.
 Due to increase in the healthy diet the customers also avoid going to the fast food joints
which serves non vegetarian food like chicken. (Biemans, 2018)
Pest analysis of Chick Fil A
This factor will help the company to understand the external factors of the business
environment of UK market in which the company is interested to invest. (Morschett, Schramm-
Klein and Zentes, 2015)
Political factors
 the company have to analyze the criminal activities in the new market so that they can
reduce the threats by improving the strategies.
 Chick fil A also have to determine that UK is supportive to the company so that they can
establish their base in the country.
 The company also has to analyze all the government policies so that they can make the
effective strategies and perform their operation in ethical manner.
Chick Fil A also has to analyze the different groups and NGO which can oppose the entry in the
country and how the company can resolve the issues. (Bagozzi and et.al., 2018)
Economic factors

 The company has to understand the inflation rates, foreign exchanges rates, GDP growth
of the country which will help the company to make the effective monetary policies
according to all the rates.
 The disposable income of the customers is also very essential factor which will help the
company to increase the sales. Chick Fil A also has to analyze the market price flexibility and all the competition in the
market. (Baker and Saren, 2016)
Social Factors
 The education level of the country and the number of births in the country will help to
determine the impact on the marketing strategies.
 Company also has to analyze the attitude, culture, beliefs and behavior of the population
of the new market.
 The company also has to analyze all the social policies which are implemented for the
different social classes so that it can increase the success rate of the company.
Technological Factors
 The company has to analyze the latest market trends in the technology to increase the
efficiency.
 Online stores and high technology payments with the fast deliveries will also help the
company to increase the sales of the company. (Gillespie, 2015)
 It will also lower the cost of the company and increase the profit margins.
Objectives and Justification of Chick Fil A
1. To reach in the UK market and increase the customers base in the country.
To achieve their competitive advantage in the new market by making the effective
strategies and also helping to increase the efficiency of the employees. (Rowley, 2017)
2. To provide the maximum satisfaction to the customers in the new market.
Justifications
1. The company have to analysed that they have to be globalised and expand their business
across the country as they are based in US and are the one of the largest fast food
company. Chick Fil A also have to analyse all the internal and external factors of the Uk
market before they invest into the market as there can be many risks associated with it

and they also have to ensure the intervention of the UK government in the business
operations.
2. The company have to determine that all competitors in the market and also analyse their
strategies and also analyse the current market trends which is followed in the current UK
market to train the employees and also make them efficient to achieve the goals and make
the company achieve the competitive advantage.(Pasquier and Villeneuve, 2017)

Segmentations , Targeting and Positioning (STP) of chick fil A
Chick fil A is the leading fast food company in USA and they have successfully provided
the products to all the customers in USA. The company has also increased the sales with the help
of effective strategies which they have analyzed in the internal and external factors. This will
also have increase the efficiency of the sales and increase the profit margins of the company. The
Segmentation, targeting and positioning is the marketing strategy which the company have
adopted to penetrate in the market and sell all the products effectively. This marketing strategies
include all the factors which are available in the market trends which can increase the efficiency
of the products and services to attract the customers to the company. By this method company
can analyse the best potential market in which they can invest to get the maximum profit
margins.
Segmentation
The company have divided the market customers into different segments so that they can
increase the market penetration of the in the market. The company also need to understand all the
information which the consumer have and they are efficient in the quality of the products. The
customers will be segmented according to the Demography which is age, gender, income,
education, and ethnicity. Psychographics which is the customer behavior the beliefs, cultures and
attitudes which will help to increase marketing strategy. Languages, behaviors, life styles the
market will also be differentiated according to the geographical locations. (Gummesson, 2017)
Targeting
Chick Fil A have to analyse the market in which they have to penetrate their product so
that they can increase the efficiency by promoting and marketing strategy can be applied
effectively. The company has to create an accurate target market in which growth of their food
products is very high and the conditions which will gain them maximum profits. The company
has to analyse the size of the market and create the differentiation in the products so that they can
attract all the types of customers to their food product. (Kerin and Hartley, 2015) The company
have provided with vegetarian and non vegetarian food which also attract both types of
customers. The price is also the major factor and the company has to make sure that they are
effective in increasing the sales.
Positioning

The market positioning is very important aspect in the success f the company as it will help
to increase the sales and provide the better Profit margins. Chick Fil A have ensured the goodwill
of the company so that it would be easily for the two position their product in the new market. As
the company have decided to expand in UK which will help in establishing their company and
proving better response by the customers in UK. The company can use Symbolic positioning
strategy in which the brand image works as the quality and also help to increase the prices of the
products. This strategy will help to focus on the customer satisfaction which is related to the
brand image and goodwill of the company as it will depict that the company will only deliver
the best quality products and services.
Porter's Five forces Model
The company has to analyse all the competitive factors in the UK market before they enter
into it. (Baker, 2016) So that they can increase the efficiency of the products and services. The
analysis of the competitors will also help to increase the better strategic plan which will increase
the productivity of the company so that they can increase the sales and attract more customers in
new market.
Threat of new entry
Chick Fil have to analyze all the factors before entering the new market as there can be
major competitors which can decrease the sales and also decrease the chances of survival in the
market.
Even though the companies have the better products and services but the new market it
will be very hard to attract the customers. This barrier is very effective and the company has to
make the better analysis to increase the rate of success by promotions and advertising it will help
to promote the company and increase the interest in the company.
Buyers power
The company have always made the strategies which are customer oriented so that they
can increase the satisfaction of them. As the customers are major factors of the market and
Chick fil A have to analyze all the factors which can improve their satisfaction and reduce the
bargaining power. The customer have to power to shift to any other fast food company to satisfy
themselves in this case Chick fil A have to increase strategy to increase the customer retention
and loyalty of the customers by discounts and special offers.

Power of Suppliers
The increase in the market demand will increase the power of the suppliers which will
decrease the profit margin with the increase in the cost of raw materials. the company have to
analyze the different alternative raw materials so that they can also increase the cost efficiency of
the products and increase the profit margins. (Lovelock and Patterson, 2015) The company have
analyzed the best way to decrease the power of suppliers by not getting the support of them and
the products which the company provide are in differentiated which increases the number of
suppliers and not only one suppliers can have that power to increase the rates of their products.
Threat of Substitute
The Chick Fil A also have the risk in the market in which they have loose the customers
due to increase in the substitute foods. The company have to analyse the new strategy by which
they can increase the sales and also make the product different from other products. The
company also can increase the product efficiency with the help of innovating the products and
making the effective strategy which can attract them. The innovation in the food products and
services which will be according to how the customers need and according the behaviour of the
customers will increase the satisfaction of the customers and decrease the threat of substitute
goods.
Rivalry
The chick fil a also have face the huge competition in the market as they the company is
going to invest in the new market and they are going to get completed with the leading
companies. The company also have to understand the policies and factors so that they can
increase the efficiency of the product. (Chernev, 2018) The company also have to make the
effective strategy by increasing the product’s quality and also making new strategy which will
attract the customers to the company. As with the increase in the market demand in the food
industry all the leading fast food business is innovating to increase the market share and provide
their best services and attract the customers to increase the sales and profits margins.
Marketing Mix
Chick Fil A have to analyse the effective marketing strategies so that they can increase the
efficiency of the company and provide the better satisfaction to the customers. As the company is
customer oriented and also have to understand all the factors which can improve the experience

of the customers and increase their satisfactions. This will help time increase the customer
loyalty and retention in the company. The main aspects in which lal the customers can be very
satisfied will be effective only when the company u8ses the better techniques to analyze the
market and understand all the factors which are present in the internal and external business
environment so that it can improve the sales of the company and also provide a competitive
advantage. The 7 marketing p will help the company to make the effective marketing strategies
so that they can penetrate in the market and increase the efficiency of the products and services
effectively.
Product
The company have to analyse the demand and the need of the customers for which they
will be willing to pay and increase their satisfaction. The company have to evaluate the efficient
product which will help to impact the market share and also help to increase the sales of the
company. The company have also increased the product differentiation so that they can increase
the sales of the company.
Place
The company have opened the small outlets where they can focus on the comfort and also
increase the quality of the products. The company have focused on the4 convenient location for
the stores which are feasible in terms of transportations of the raw materials and also decrease
the cost of all fixed and variables. The place should also attract the customers and should be at
the prime locations so according to the buying capacity of the customers in the market.
Promotions
The company have to use the promotional strategies so that they can increase their sales
as the promotions are the process by which they can help to reach to many customers easily. The
company also have adopted the latest technology which will help to increase the market coverage
to reach the customers and attract them to the company.
Price
Chick Fil A is also maintaining their pricing strategies according to the competition and
the market supply. The company have kept the prices of their products high and increased the
quality of their food products which help the company to satisfy their customers and increase the
satisfaction, the company also help increase the sales and profit by making the prices as low
adequate as possible so that it can compete in the market. (Haider and et.al., 2019)

People
The company have to decide the right people as their customers as they are the target of
the company to sell their food products the comp nay need to determine the values, behaviour,
attitudes, beliefs of the people to understand them and make the effective strategies and attract
them to achieve the goals of the company.
Physical Appearances
The physical appearance refers to the image which appears in the mind when the person
listens to the name of Chick Fil A. The company have to make the attractive and catchy brand
image so that every demographic population can understand it easily. The company have to
improve the approaches so that every person can recognize it.
Process
The company have to make the effective process to keep the flow of the marketing smooth and
efficient so that the other entire marketing element can also be productive. The company have to
establish the effective distribution channel and supply chain for their products and services
which will also help the company to increase the market share and also help to increase the sales
of the company by analysing the demand of the customers and making the effective strategies.
(Deepak and Jeyakumar, 2019)
CONCLUSION
This report had brief information about the marketing strategies and all the factors which
can impact the growth of Chick fil A which is US based company. This report had a detailed
explanation about the expansion of the company to UK market and what were the challenges
which the company had analysed in the internal and external business environment. The
company also had to determine all the factors to compete in the market and compare it with the
help of competitor’s analysis. The marketing mix had also been analysed and adopted by the
company to achieve the better success of the company and increase the profit margins.