Marketing Plan for Chick-fil-A in UK Market

This marketing plan discusses the PESTEL analysis, SWOT analysis, marketing objectives, STP strategy, perceptual map, and competitive analysis for Chick-fil-A's entry into the UK market.

Marketing Plan

Table of Contents
PESTEL Analysis............................................................................................................................1
SWOT Analysis of Chick-fil-A.......................................................................................................3
Marketing Objectives.......................................................................................................................5
STP Strategy....................................................................................................................................5
Perceptual Map................................................................................................................................6
Competitive Analysis of Chick-Fil-A..............................................................................................6
7 P's of Marketing...........................................................................................................................7
REFERENCES................................................................................................................................9

PESTEL Analysis
This is important for any business organization to collect and evaluate the market
information and data before entering a new market. PESTEL analysis is a strong tool that can be
used by the organization which is effective to provide better analysis of external factors rthat are
present outside the organization and can cause impact on the business activities of the
organization. As Chick-fil-A wants to take their franchise to United Kingdom it is important for
them to perform the external factor analysis in order to prepare better business policy and
strategy for marketing in the UK market.
Political Factor
The political factor are most important for the business organization that can affect and
influence the business of Chick-fil-A in UK market. There are different political factor can affect
the business performance and operation of Chick-fil-A in UK. As the policies used and proposed
by UK government are completely different from the USA. This will force them to make
effective changes in organization in order to meet the requirements of the UK market. There are
some rules are made by government which are need to be followed by the Chick-fil-A But in
previous cases company has made different alternative in their cooking processes to provide
better test to their fast food, which is not according to law (Galati, Bigliardi and Petroni, 2016).
This can cause them major problems to them in UK market. Brexit is also a major condition that
is creating political instability in UK which is also an issue for Chick-fil-A in UK market to
establish new business.
Economical Factor
UK is the 6th largest economy in the world and it can be consider as the advantage for
Chick-fil-A. The GDP of the UK is also a positive factor for organization because it can help
them to earn larger profit and expand their business in the other countries also. From the USA
market they have more opportunities in UK market because the economic policies that are used
by the UK government are comparatively better than other countries. The Tax policy used by the
United Government is too easy and and it will help Chick-fil-A to conduct their business with
higher marginal profit in UK. The economic and financial risk of UK market is comparatively
low than other markets around world (Lin and Lei, 2015). Their is only one issue is there which
can can cause negative impact on Business of Chick-fil-A. This is issue is about the uncertainty
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of the UK market due to Brexit. This can affect the organization be negatively influence the
investors of fast food chain.
Social Factor
The impact of social factor are both positive and negative on the business of Chick-fil-A
in United Kingdom. The population of United Kingdom is highly diverse which is social
characteristics of UK. This is an advantage for country to have high social diversity but in case
of fast food chain it is a big disadvantage for Chick-fil-A in UK because it is really difficult for
them to meet requirements of people who comes from different community. This is a negative
point for Chick-fil-A in UK market. The literacy rate of UK is about 99 % and it has major
impact on the operations of fast food chain. It will provide better employees to organization in
order to grow their business in the UK and European market. Per capital income of people in UK
is high and it is good for business of Chick-fil-A because it will help them to make better
effective pricing policy for their products (Sogari, Mora and Menozzi, 2016). There are many
non governmental organization are following where they are forcing the meat suppliers to
provide better facilities to animals to improve their health. This is restricting many organizations
to conduct their business in UK and European maker that can increase the cost of raw material
for them to prepare their menu board.
Technological Factor
There are different technologies are used in the food industry which are effective to
improve the business practices of organizations that are related to the food and beverages sector.
The technological devices used by the Chick-fil-A are effective for faster data processing which
is good sign to improve the operations of fast food chain. Better and effective data transfer make
them more effective to conduct their business successfully in the market place. Latest
technologies in cooking sector can also improve their operational capabilities in market place to
gain higher profit. The competitors of Chick-fil-A in UK market are McDonald’s, KFC and
Burger King. These organizations are also effective witjh technology in their business which is a
big challenge for Chick-fil-A in UK market. They need to improve their technology to develop
better marketing policies to improve their business..
Environmental Factors
The environmental factors are associated with climate changes and changes in the eco
system. There are so many functions are performed by business organization like Chick-fil-A
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which are not good from the environmental perspective. Main legal factor that may have
influence on the business of Chick-fil-A. The main concern of Chick-fil-A is about how much
they have to spent in order to make right investment in the technology that is based on the
renewable sources. This is how organization can make invest in order to gain competitive
advantages in the market place. The national and international environmental standards can
affect the business of Chick-fil-A in the European market. The agreement like Paris climate
agreement also can affect the business of the organization by forcing them to change their
business operations. As Chick-fil-A is an organization that included in food and beverages sector
so waste management policy also can influence the function of the Chick-fil-A.
Legal Factors
the legal factor for Chick-fil-A can be consider the laws that are concerned with the
entering of new company in market place, the policies used by the organization and all other
legal requirements that are important for legal organization. There are some legal issues Chick-
fil-A cn face in conducting business successfully. The legal policy that is made to prevent the
monopoly of other companies that are already established in the market place. This is how this
law can help Chick-fil-A to start their business in the target market. The employment laws of
various countries have some differences that can influence the policies of Chick-fil-A in market
place. There are also some laws that can affect the business of organization which are- Data
protection law and business law. Data protection law is connected to the data security of people
that are working in company. Before entering in a new market this is important for organization
all the laws of UK to start business without any legal troubles.
This is how the external environmental factor can affect the business of Chick-fil-A in the
UK and European market. These all factors are need to be considered by the organization in
order to start new business with high success and profit rate.
SWOT Analysis of Chick-fil-A
The SWOT analysis is a tool that is normally used by the business organization to know
their internal conditions and capabilities for particular organization. By performing SWOT
analysis organization will be able to make proper changes in their business to make proper
changes in their business policies.
Strengths
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There are different strengths Chick-fil-A have that can support them to start new business
in UK market. Some of main strengths of Chick-fil-A are- it has strong establishment in the USA
market so it is big advantage for them because organization have strong financial background.
This can be used by the organization to make investment in UK market to establish strong
foundation in market place (Phadermrod, Crowder and Wills, 2019). The advertisements that are
used by Chick-fil-A are mostlt successful in th national and international market, eat morchikin
is one of their advertisement which is used by them to improve their consumer base. There are
many sports events are sponsored by Chick-fil-A so this is also good for their global image in the
market scenario. The menu board have some dishes which are famous in the consumers. So, it is
advantage for Chick-fil-A in UK market. The online presence of Chick-fil-A is too good and it is
used by them to attract more people towards their restaurants. These all policies can be used by
them in UK market to establish their business successfully in market.
Weaknesses
There are some weaknesses of Chick-fil-A which are need to be considered to make
effective changes in their policy to avoid the losses the are possible with current business and
marketing strategy. The main issue with Chick-fil-A is about their limited presence in USA. This
limited presence in UK market is not effective for their business (Lurati and Zamparini, 2018). It
is also resulting as less experience of the international market. This will be big challenge for
them to enter a European market with limited experience of current market. The main
competitors of Chick-fil-A are McDonald’s and KFC in the international market and both have
good international presence do it is big challenge for them to avoid the consequences of these big
gap between competitors and Chick-fil-A
Opportunities
As Chick-fil-A is trying to enter a new market they have some opportunities in the
international market that can be used in order to gain higher profit in the international market.
The main opportunities Chick-fil-A have are- As organization have huge consumer base in
USA , it is opportunity for them to enter the UK and European market to generate higher profit
and develop high consumer base. Current menu of Chick-fil-A have limited dishes but by
increasing innovative and creative changes in their menu board can help them to attract more
consumers in the UK market.
Threats
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There are different challenges are faced by business organization in national and
international market (Sarsby, 2016). Most of challenges are manageable but some of them are
big threat to the organization which are- the stiff competition in the local market is big threat to
them in UK market. The main competitor of in UK market are KFC, McDonald’s and other local
restaurants. Rise in cost of raw material is also a threat to organization. The reason behind this is
associated with limited number of suppliers.
This is how Chick-fil-A need to consider their internal capacities in order to make proper
strategies and policies to enter a new market.
Marketing Objectives
1. To implement social media marketing in expansion plan to gain relevant consumer base
with establishment of business.
2. To implement sustainable technology in operations to reduce operational cost to
company.
STP Strategy
Segmentation
As the organization is entering a new market it is important for them to select distinct
groups them to perform their business. As Chick-fil-A is entering in the United Kingdom market
they can focus on the consumer on the basis of lifestyle. Chick-fil-A can select people from
lifestyle background to get higher amount of profit. There is no specific group of people can be
segmented in order to conduct business but on general basis organization can select segment of
people who prefers vegetarian food for fast meal. By selecting this segment Chick-fil-A can earn
efficient profit.
Targeting
As there are various people comes in the category of the lifestyle group but to be specific
in the marketing plan Chick-fil-A can target people of age group between 15 to 50 year. People
of these age prefer to at vegetarian food. For more business Chick-fil-A can also target the
corporate and college student as target audience. In the marketing plan organization can target
the local corporate workers and students as consumer, who can easily access the local restaurants
of Chick-fil-A.
Positioning
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For the positioning of organization in the target market organization can use symbolic
positioning in order to gain loyal consumer base that can be associated with organization for long
term. This is possible by promoting the brand value of Chick-fil-A in target market by social
media marketing. Along with symbolic positioning Chick-fil-A can also use experimental
positioning to attract more consumer with innovative and creative menu board.
Perceptual Map
As per the above mapping is can be said that the nutritious value of Chick-Fill-A is higher then
both KFC and McDonald’s. The test of the Chick-Fill-A is better than McDonald’s but not as
good as KFC. There is perfect combination of Test and Nutritious value has been used by Chick-
Fill-A. According to this map position of Chick-Fill-A is comparatively good from McDonald’s
and KFC.
Competitive Analysis of Chick-Fil-A
Porter Five force model can be used by the organization to evaluate their performance in the
United Kingdom market.
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New Entrant
As a new entrant in UK market the threat for Chick-Fill-A is high. This threat is high
because there are many pre-established organizations are their in UK market. For Example
McDonald’s and KFC are already performing their business market in UK so this will be
difficult for Chick-Fill-A to enter new market.
Bargaining power of Consumer
The bargaining power of consumer is also high and it is disadvantage for Chick-Fill-A.
There are many options available for consumer in the restaurant sector (Fleisher and Bensoussan,
2015). To reduce the power of consumer, organization need to make changes in their menu board
and marketing policy.
Bargaining power of Supplier
There are limited number of raw material supplier in UK and European market so, this
will be a trouble for Chick-Fill-A (Yuan, Wang and Zeng, 2017). This threat can be reduced by
improving number of supplier in nearby market.
Threat of Substitute
The restaurant business threat of substitute product is too high for Chick-Fill-A. This
threat can be reduced by improving the test of the menu board dishes and effective change in the
pricing policy.
Rivalry Among Existing Competitors
The competition among the rivalry is high in UK market for Chick-Fill-A (Ma, Simchi-
Levi and Zhao, 2019). Because of high number of competitors in the current market this will be
difficult for Chick-Fill-A to full fill their business goals effectively.
7 P's of Marketing
Product
Chick-Fill-A can introduce new and innovative dishes in menu board in order to improve
the nutritious value and test of food products they provide to consumers. In this process they also
can add non Vegetarian food to attract new consumers.
Promotion
There are different marketing strategies can be used by chick-fill-a to improve the
number of targeted audience (Basta, 2015). For example Chick-Fill-A can use social media
marketing and digital marketing to address more people with higher cost effectiveness.
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Price
There are different competitors of Chick-Fill-A in UK market so, organization can use
low marginal policy in order to attract more people to use the services of Chick-Fill -A.
People
By proper segmentation and targeting process Chick-Fill -A can improve their consumer
base with in short time (Datta, Ailawadi and Van Heerde, 2017). Skills of employees also can be
improved by training development process to gain better profit and performance.
Process
By using sustainable and innovative technology organization can improve their
operations in the target market. This is how better efficiency can be gained with implementation
of latest technology in the business.
Physical Evidence
There are many ways are there which can be used in order to improve the visibility of
Chick-Fill -A in the UK market (Fan, Lau and Zhao, 2015.). They can acquire more assets to
present organization in market with digital technology.
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REFERENCES
Books and Journals
Galati, F., Bigliardi, B. and Petroni, A., 2016. Open innovation in food firms: Implementation
strategies, drivers and enabling factors. International Journal of Innovation
Management. 20(03). p.1650042.
Lin, B. and Lei, X., 2015. Carbon emissions reduction in China's food industry. Energy Policy.
86. pp.483-492.
Sogari, G., Mora, C. and Menozzi, D., 2016. Factors driving sustainable choice: the case of
wine. British Food Journal. 118(3). pp.632-646.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Lurati, F. and Zamparini, A., 2018. Communication SWOT Analysis. The International
Encyclopedia of Strategic Communication, pp.1-8.
Sarsby, A., 2016. SWOT analysis. Lulu. Com.
Fleisher, C.S. and Bensoussan, B.E., 2015. Business and competitive analysis: effective
application of new and classic methods. FT Press.
Ma, W., Simchi-Levi, D. and Zhao, J., 2019. A Competitive Analysis of Online Knapsack
Problems with Unit Density. arXiv preprint arXiv:1907.08735.
Yuan, Y., Wang, F.Y. and Zeng, D., 2017. Competitive analysis of bidding behavior on
sponsored search advertising markets. IEEE Transactions on Computational Social
Systems, 4(3), pp.179-190.
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research, 2(1), pp.28-32.
Datta, H., Ailawadi, K.L. and Van Heerde, H.J., 2017. How well does consumer-based brand
equity align with sales-based brand equity and marketing-mix response?. Journal of
Marketing, 81(3), pp.1-20.
Basta, D., 2015. Fundamentos de marketing. Editora FGV.
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