Chick Fil A Marketing Analysis

This report analyzes Chick Fil A's expansion plans in the UK market. It includes a marketing environment audit, SMART objectives, STP analysis, competitor analysis, and marketing strategy. The report also discusses the challenges and opportunities in the UK market.

REPORT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Audit of Marketing Environment................................................................................................3
SMART Objectives of Chick Fil A.............................................................................................5
STP Analysis...............................................................................................................................6
Competitor Analysis....................................................................................................................8
Marketing Strategy......................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing can be defined as those activities that a company adopts in order to promote
and market their products and services in the intended i.e. targeted market so that they can
generate profits form the market (Mullakhmetov and et.al., 2016). Chick Fil A Company is a
prominent fast food retail giant which is based solely in USA. They are a top fast food brand and
their revenue levels are extremely high. In the current report, the company’s option to venture in
the UK’s market as an expansion process has been analysed and evaluated. The report will
analyse the internal and external environment in which the company intends to expand i.e. in UK
followed by the development of smart objectives to facilitate the process of the achieving success
in UK. This is followed by the competitive analysis of the fast food industry in UK and further
these reports will also marketing strategy has been formulated for the company which they can
follow in order to expand themselves in UK. The report will also conduct a STP analysis so that
the company can position themselves successfully in UK. Lastly, the report will present an
appropriate conclusion.
MAIN BODY
Audit of Marketing Environment
Micro Analysis: In order to analyse the micro environment in which Chick Fil A is currently
operating, the best tool that can be used is SWOT Analysis. Currently Chick Fil A is only
operating in USA and therefore, the scope of the company is limited.
Strengths
 The excellent customer service and
ambience given by the company is one
if it score strengths and amidst all other
outlets following the trend of self-
service, this is something unique and
attracting for customers since they are
being served by the people.
 Smart marketing is being used by the
company where they do not sell burgers
which are used synonymously with
beef and rather use the term sandwich,
Weaknesses
 The geographic coverage of the
company is extremely poor and is only
limited to America which is restricting
their growth.
 Customer Retention is also increasingly
becoming a problem since the higher
prices of Chick Fil A are not preferred
by lower or middle class customers
who have other feasible and better
options.
 Lower Innovation in the menu and not

although it is burger only. This
represents the smart knowledge that
company has about the culture of the
economy or country in which it
operates.
 The employees of the company are
extremely satisfied with the kind of pay
and treatment that they receive form the
company and this has increased the
goodwill of the company.
spicing it up regularly has led to the
reduction in the lustre in the brand
image of the company (Hult, and
Ketchen, 2017).
 Further, the marketing of the company
is also getting redundant and in this
aspect the other bigger brands are
excelling since it is easier for them to
incorporate innovation easily as they
are operating on a global level.
Opportunities
 The company can divulge into the latest
trend of providing healthier fast food
since the public is increasingly
becoming conscious of the risks that
junk food has on the health of the
company. This can help in including
innovation and also increasing the
customer base.
 Since the service provided by other fast
food restaurants is poor, it has
presented an opportunity for the
company to capitalize on their still
prevalent approach of people serving
other people.
Threats
 There are a variety of scandals that are
regularly being emerging in the fast
food sector and industry and are usually
related to chicken where the quality or
primary ingredient used in chicken is
usually argued about. This has created a
lot of apprehension in customer’s mind
where increasing number of customers
are choosing to opt out of eating in
such fast food giants.
Macro Analysis: In order to analyse the external environment of the company, the best tool that
can be used is Pestle Analysis which will assist in analysing the macro environment surrounding
the company.
Political Factor: The political environment of USA is currently stable and supports the business
activities carried out by Chick Fil A and therefore, the company can easily carry out its
operations however, there has been political unrest in the UK after the Brexit and this can led to

the company being either successful or not so successful and the trade restriction will also make
it difficult to expand in UK’s economy.
Economic Factor: The economy of USA is currently experiencing a situation of crisis where the
entire economy is falling down and this has impacted the business of Chick Fil A as well since
the currency has heavily depreciated and there are chances of high inflation rates in the economy
(Haider and et.al., 2019). However, while expanding in UK, although the economy is currently
dwindling after the Brexit, yet it is going strong and company can launch their stores in UK’s
economy.
Social Factor: In USA, the societal norms and hierarchy tend to be in favour of the fast
companies and the trends set by them which have led to a boost in the business of the country.
The gender quotient is also fairly and adequately distributed in US, however, while expanding in
UK the male female ratio is being taken into consideration and also, the clients are served
accordingly since UK’s clientele is very particular about the kind of service that they have
received.
Technological Factor: In USA, the technological aspect is highly integrated amongst the people
which has led to its impact being high in the manner in which the organisation operates and the
technology implemented by the. However, in UK as well, technology is highly advanced and
well integrated and therefore, it will not be a problem for the company to expand internationally.
Legal Factor: In USA as well as UK, the judiciary and legal compliance is of extreme
importance since the company has always operated within the legal boundaries as formulated by
the system of the country.
Environmental Factor: In USA it is mandatory to spend a portion of their income in improving
the sustainability and renewable energies of the company. Therefore, the CSR duties need to be
complied with extremely closely (Deepak and Jeyakumar, 2019). In UK as well, the society and
people are extremely conscious about their environmental practices.
SMART Objectives of Chick Fil A
Specific:
 The Company Chick Fil A intends to establish themselves in UK as a fast food retail
giant and achieve the same level of success as they have in US.
 The health as well as nutritional level of the company’s products should not be
compromised.

Measurable:
 The company will first open restaurant and fast food joints in the franchisee mode in 7
prominent location across the entire UK and they intend to generate a revenue of 10
million pounds.
 This will be followed by next phase where more stores will be opened across UK in 10
more location and subsequently based on the success of the product.
Achievable:
 The resources will be allotted in a limited manner and the targets have to be achieved
within the allotted resources.
 The technological resources are also limited and these have to be utilised to its full
capacity in order to achieve the measurable goal of 7 million pounds.
Realistic:
 The targets that have been set are achievable and the company has the necessary skills
and resources to achieve them.
 The sources from which funds can be generated are reliable and therefore, this can be
used to achieve the goals in a realistic manner.
Time-Bound:
 The first phase is planned to be achieved and completed within next one year followed by
subsequent phases based in the success of the product in UK which will be measured and
evaluated regularly.
The above SMART objectives will help the company in establishing themselves successfully in
UK economy and garner the required levels of profit in a timely manner (Cacciolatti and Lee,
2016).
STP Analysis
STP Analysis involves three different aspects of marketing that need to be analysed and
evaluated and this can be done is following manner:
Segmentation: Segmentation involves segregating the customer base into various segments
based on their characteristics and dimensions and the four major dimensions are on a
demographic, behavioural, psychographic and geographic. In order to expand in UK, the major
segments that can be targeted based on the age factor where they will target the age group of 8
years to 35 years because the demographic study of UK shows that after a certain age, UK’s

people avoid eating at fast food joints except occasionally. Further, the company will also target
segments based on the psychographic tendencies where they can identify and target the
consumers based on their psychographic characteristics such as tendency to eat readymade food
after a long day or giving yourself and your family treats etc. (Indris and Primiana, 2015).
Therefore, segmentation in this manner will help in targeting the customers in a better manner so
that the company Chick Fil A can establish themselves in UK in a better manner and success in
their activities like they are in US.
Targeting: The targeting of the customers is done after it is identified that which customers
segments are to be targeted. For the company Chick Fil A, the identified segments that are to be
targeted are people lying in the age group of 8 years to 35 years and another targeted segments is
targeted on the basis of their behavioural characteristics where the consumers are motivated to
choose an easier and tastier option when they want to relax. These segments will be targeted in
the entire marketing campaign and the marketing strategies will be formulated accordingly so
that customers can be attracted directly towards the new fast food chain in UK as well.
Positioning: After successfully segmenting and targeting the market, a company should plan the
manner in which they will now position their product i.e. the pricing technique is ascertained in
this aspect (Jaworski, 2018). The Chick Fil A Company, in order to establish themselves
successfully in UK can target the customers on the basis of two perceptions and determinants
that can be categorised as follows:

Figure 1: Perception Mapping
As per this perceptual mapping, it can be ascertained that there are two basic determinants in
which the four quadrants are being categorised on the basis of Nutritional Value and the taste
associated with it. The nutritional value is used to determine the health quotient which is being
included in the manufacturing of the product i.e. the food in the case of Chick Fil A Company
and Taste on the other hand helps in determining that what is the level of flavours which are to
be included in the food product. In the current case, the Chick Fil A Company is planning to
position the product in the first quadrant where the nutritional value is also high and the taste
quotient is also high (Kotler and et.al., 2018). This can be possible due to the extensive publicity
of the company in UK and the work that they are performing has helped them in generating
revenues and profits that can be used to establish the business in UK as well.
Competitor Analysis
The best manner in which the competition of the company can be analysed is by implementing
the Porter’s Five Force Analysis and for analysing the competitive environment that Chick Fil A
company will face in UK, following method can be implemented:
Existing Rivalry (Moderate to High): In the existing fast food market in UK, there are quite a lot
of competitors that are operating at a global level and present a huge challenged before the
company. However, the company has a brand reputation and established image in US, due to
which, although initially the company might experience resistance, later on they can succeed if

the policies are being implemented correctly and the marketing strategies can be implemented
properly in order to attract the customers (Martín-de Castro, 2015).
Threat of New Entrants (Moderate): The current global competitors such as Mc’D, Burger
King, KFC etc. are posing as a major threat for the entry of new companies especially in the new
target market. Since the company is already established in US, they know and understand how to
penetrate the market of UK and therefore this factor’s risk can be diminished since Chick Fil A is
no new entrant in this industry.
Threat of Substitutes (High): Since the fast food industry is an extremely wide spread and large
industry, it is difficult for them to compete at a global level and therefore the substitutes are high
of the company. Consumers can easily switch from one brand to another and since options are
too much in this industry, the Chick Fil A Company might face a bigger challenge then they
might expect and this factor can solely determine the success or failure of the company in its
venture i.e. expansion in UK (Mullakhmetov and et.al., 2016).
Bargaining power of suppliers (Low): When the suppliers of the company or an industry are
concentrated together and have a high command or power over the retailers in that particular
industry. Since there a multiple fast food retailers and giants in this industry, there is easily
availability of the raw material and its suppliers, the companies can easily shift form one supplier
to another supplier. Therefore the bargaining power of suppliers in the industry is extremely low
and the company can easily switch over.
Bargaining Power of Customers: The bargaining power of customers is also extremely high in
this industry since the fast food industry is very wide. Therefore, customers in this industry can
easily switch over form one company to another (Pucciarelli and Kaplan, 2016). Therefore, it is
extremely competitive in this industry and therefore it is difficult to maintain the competiveness
and innovation in this industry. Therefore, the bargaining power is high of customers.
Marketing Strategy
Marketing Mix will assist in analysing the different marketing techniques that can be
implemented in the market and in order to enter UK, analysis can be done in following manner:
Marketing Mix Particulars
Product The fast food company has a wide range from breakfast, lunch and dinner
where they offer a variety of products and increases their nutritional value
of the consumers by offering a variety of appealing food items.

Price The price of the products are averagely priced where they are able to
generate a heft amount of revenue and this can be applied in UK as well
and therefore, the company if it prices the products moderately can earn a
wider range of profits (Samiee and Chirapanda, 2019).
Place Although the company is currently located in US only, however the
company needs to expand itself in other geographical locations as well and
therefore the company can expand themselves currently in UK where there
is a favourable market for the growth of the company.
Promotion In order to proomo0te their products in UK, the company can utilise online
and social media platforms which are the quickest publicity mediums
currently and apart from this , billboards, TV ads, magazines and poster
etc. can be used by the company to create awareness regarding the product
of the company.
Physical Evidence In order to establish themselves in UK successfully, the company can
position themselves in the market successfully by opening outlets sin a
phased manner where in the first phase, they target all the prime location
and cities in UK, and subsequently in other cities as well so that a
customer’s base can be established in an appropriate manner.
Process The company can opt for the franchisee option in order to expand their
business in UK, where they can open their own food corners or stores and
although it will take a considerable time as well as investment, it is the best
mode of establishing their own brand (Zhao, 2016).
People The working professionals employed by the company should be those
people who have experience of working in this industry and know how to
target the customers in an efficient manner and this can be done only when
the recruitment process is taken care of so that company can establish
themselves in UK in a strong manner.
CONCLUSION
The research conducted in the report helps in concluding that marketing is an extremely
important concept in the expansion of the company on a global level. This report helped in

concluding that macro as well as micro environment needs to be analysed properly and Pestle as
well as Swot analysis was used in this report. Further in this report, a competitor analysis was
conducted using Porters Five Force Analysis and the report also conducted a STP analysis which
helped in identifying the targeted market segment. The SMART objectives helped in identifying
that a phased manner of expansion was the best method that can be used by the company in order
to penetrate the fast food industry established in UK and lastly in this report an appropriate
marketing mix analysis has been conducted in this report so that they can expand themselves
appropriately in UK. The tools implemented in the marketing analysis of Chick Fil A company
has helped in identifying that currently the UK’s economy is stable and therefore, they can
expand in UK so that they can expand the business in a timely and correct manner which will
help in achieving the goals of earning a designated revenue level.

REFERENCES
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Online
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