Marketing Management Report: Chick-fil-A's Strategic Analysis and Plan

This marketing management report provides a comprehensive analysis of Chick-fil-A's strategic approach. It begins with an introduction to marketing management and its importance, setting the stage for an examination of Chick-fil-A's market environment through SWOT and PESTEL analyses. The report then delves into the company's SMART objectives, outlining specific, measurable, achievable, realistic, and timely goals for its new product launch. Furthermore, it explores Chick-fil-A's segmentation, targeting, and positioning (STP) strategy, identifying its target market and positioning approach. A competitor analysis, utilizing Porter's Five Forces, assesses the competitive landscape. Finally, the report details Chick-fil-A's marketing strategy using the 7Ps framework, offering insights into its product, price, place, promotion, people, process, and physical evidence strategies. The conclusion summarizes key findings, highlighting the effectiveness of Chick-fil-A's marketing efforts. The report emphasizes Chick-fil-A's commitment to customer service, geographic expansion, and product innovation. The report highlights the importance of the marketing strategy in the context of Chick-fil-A.

MARKETING
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY ..................................................................................................................................4
An audit of marketing environment............................................................................................4
SMART objectives......................................................................................................................6
Segmentation, targeting and positioning strategy.......................................................................7
Competitors Analysis..................................................................................................................8
Marketing strategy by using 7P's................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing management is the activity and functions which is involved in the distribution
of the goods and services. It is useful in analysing the market conditions, planning, implementing
and controlling the various programmes of it as it brings desired changes and also targeting the
market in order to achieve the organisational objectives (Kotler and et. al., 2018). It is related
with the chalking out of a definite programme which is useful in analysing and forecasting the
market and its conditions and the execution of plans which helps in achieving the objectives of
an organisation. Marketing management is important because it helps in meeting to the increased
competition and for this they need to improve methods of distribution in order to reduce cost and
increase profits. This report is in the context of Chick-fil-a which is an American fast food
restaurant chain and the largest one who is specialist in chicken sandwiches and headquartered in
college park, Georgia. Company was founded in 1967 and has more outlets than any other fast
food chain in the U.S. This report is going to focus on the audit of market environment,
statements of SMART objectives, justification of STP. Moreover, in the concern of company
competitor analysis is also done and to describe the market strategy 7P's are used in order to gain
an entry in the market.
MAIN BODY
An audit of marketing environment
Marketing audit refers to the systematic evaluation and analysis of the business marketing
environment. It is useful in analysing the both internal and external factors, goals, strategies and
the problems as it helps in the planning of action in order to enhance the marketing performance
of an organisation. In order to conduct the audit of market and its conditions SWOT and
PESTEL analysis is used as these helps in analysing the market conditions and eliminating the
risk of the market.
SWOT Analysis:
Strengths: These are those factors which help in analysing the benefits for company and
also state the advantages of it. For instance, in the context of chick-fil-a its service is the biggest
reason for its success as they provide excellent customer service as they provide self-service in

its some outlets in order to make it different (SWOT analysis of Chick-fil-A, 2019). Moreover, its
restaurant ambiance helps in attracting the customers and makes them to spend lot of time over
there as their interior is simple and formal which helps in inviting more and more people because
of their warm colours. Despite of this, their face to face ordering makes their customers feel that
they are important for them and also impress them.
Weaknesses: It is the area in which businesses need to improve themselves and in the
context of chick-fil-a, their poor geographic coverage as they does not have presence on the other
countries despite from US. Therefore, their presence is limited in comparison to their
competitors which become its weakness in the fast food industry (Keegan, 2017). Moreover, its
high prices will also affect their customer’s base. For chick-fil-a, it becomes quite difficult for
them to retain their customers because of the growth in the fast food industry and it becomes
very difficult for their customers.
Opportunities: It refers to the environment and its surroundings which helps the business
in order to increase its returns. Healthy fast food is its opportunities which help the company in
order to develop its customer base and grow its image in public for against the health risk of
consuming the fast food and company can also open its new segment in order to increase its
customer base.
Threats: These are the factors which can hinder the growth of the business like there are
many scandals which come in front of public as they have many quality and quantity issues
about their chicken which they use in making any fast food dish (Chernev, 2018). Moreover,
their customers can become threat for them like McDonald's is the biggest threat or competitor
and remains a very popular eatery even today.
PESTEL Analysis:
This analysis is used in order to measure the position in the market which is done in order
to analyse the external factors which is useful in order to eliminate the risk factor. Chick-fil-a
also work under the certain guidelines and regulations which is directed by the government and
food authority. These factors are discussed as under:
Political: The regulatory practices which is streamlined with the global rules and
regulations also helped the country in order to improve its ease of business doing. These are the
factors which are influenced by the federal government laws and regulations. This factor put
positive impact as chick-fil-a is alter the standards of food and beverages in its manufacturing.

Economic: These are the factors of a company who put direct impact on the potential
attractiveness of the market and it include various factors such as inflation rate, GDP growth rate
and many more. At the initiation stage of company where the capital earn by the company
matters a lot in order to increase its sales as it varies from country to country. As this factor put
negative impact on the mind of customers as it provide chicken items which are quite unhygienic
for this they need to launch nutritional food for its vegetarian customers.
Social: These are the factors which is depends on the demography trends, power of
society, involvement of women in workforce and many more. For this factor, before entering
into the market company need to understand the nature of its social contract which is between the
government and society as by analysing this it can become strength for company.
Technological: These are the factors which involve development of AI, use of machines
by analysing data and many more (Deepak and Jeyakumar, 2019). E-commerce become critical
for the chick-fil-a as food services cannot complete on the online market and for this, company
need to evaluate the whole infrastructure and technology before entering into the new market.
Environmental: These are the factors which revolve around the consumers and also
analyse their needs and policies. It include climate, ecosystem and many more and often the
environment policies which can be different and it helps the company in various ways in
decision making such as plant location, pricing strategy, product development and many more.
Legal: These factors govern on the basis of government, laws and procedure which helps
in resolving any dispute with their stakeholders etc. Chick-fil-a follow health and safety laws
which can improve the quality of their products and consumer protection laws in which they can
easily analyse the rate of enforcement, attitude and authorities and other factors which can affect
the legal terms of company (Wierenga and Van der Lans, 2017).
.
SMART objectives
As per the current situation, company is introducing its new product which is cheese
chicken burger in order to acquire the market of its customers and also helpful in order to
achieve profitability and productivity. To achieve this, company need to set specific objectives
and goals which is useful for them and its objectives are discussed as under:
 Specific: Before launching the new product in the market they need to clearly define each
and every detail about their product which is helpful for their customers to analyse the

quality and goodness of it. Objectives need to be specific if they have great chance in
order to be accomplished (Bagozzi and et. al., 2018). To make them specific chick-fil-a
should consider five “W” such as who is involved, what should accomplish, when the
goal is achieved, when do they want to achieve the goal and why do they want it.
 Measurable: It defines that which specific criteria will measure the progress of the goal
in order to accomplish its goals and objectives. Company need to set those goals which
need to be accomplish and can be measurable in terms of tracking the progress. Goals
become measurable when they ask some questions to themselves like what are their
indicators of progress and how can they achieve it.
 Achievable: These goals should be achievable as company set short and long term
objective. In short term they set 7% increment in the sales and profitability and in long
term they target it to 15%.
 Realistic: It describes that goals and objectives should be realistic as for this they can be
achieved from the real sources on time. SMART objectives should be realistic in order to
accomplish. For this, company take proper time and resources.
 Timely: This objective defines that goals should be made or achieved in the time bound
manner as they have their start and end date (Zimmerman and Blythe, 2017). If company
does not set deadline for it would not be achievable and it in this context it include the
end date and when it should be achieved.
Segmentation, targeting and positioning strategy
Segmentation: It is a process of dividing the market into the small groups with the same
product which needs to be categorised and selecting the purpose of target markets (Gummesson,
2017). It includes the identification of specific needs and market in order to find new customers
which helps in effective marketing of products. These factors are divided on the basis of many
segments:
 Demographic: It is a factor which include the many factors such as age, income,
education, size and many more. These defines the target market of company by
considering these factors. For this, company can aim the young or youth audience as it
helps them in increasing their sales and revenues.

 Lifestyle: These factors describe the hobbies, vacations, entertainment and many more.
As per this factor chick-fil-a can launch its products by considering the lifestyle of their
respective customers.
 Behaviour: According to this factor, it describes the brand loyalty, distribution channels
and its reaction on the marketing factors. As per this element company take the customers
feedback serious and introduce new product on the basis of their feedback.
Targeting: As per this strategy, the targeted customers of chick-fil-a is those people who
are interested in the fast food and for this, company target the customers of age between 15 to 30
as they can easily consume the fast food and like it.
Positioning: It describes those products which needs to place at a right place and right
time according to the demand of their customers. In the context of chick-fil-a, they sell their
products on their restaurant which needs to be analysed in order to increase their sales and
revenues of them. Moreover, they also provide take away and home delivery service as it helps
in increasing their sales (Homburg, Jozić and Kuehnl, 2017).
.
Competitors Analysis
Competitor analysis is a strategic and marketing management which is used in order to
analysis the current and potential competitors. It provides both kind of strategies which is
offensive and defensive in order to identify the opportunities and threats. This analysis is
important in order to analyse the various components of corporate strategy and it is also
identifies that many firms does not conduct this analysis which can impact their success, growth
and profitability. In order to analyse the competitive forces in the context of Chick-fil-a, porter’s
five forces is used as it is useful in order to analyse the micro environmental factors and ability
of company which helps in increasing the profitability of company. This factor includes five
forces in which three are from horizontal competition and two are from vertical competition
which is discussed as under:
Threat of new entrants: As per the this factor the threat from new entrants is low because
of its brand image and repetition which helps in creating barriers for the new entrants and
prevent them from entering into the industry (Atwal and Williams, 2017). The new entrants can
be the new company for the existing one who is planning to diversify its business in the market
in order to achieve success in growth for itself. In this factor barrier can be both the industry and

the legal as both can impact the size and reputation of the company and its operational activities
in the market which plays an important role for its survival. In the context of chick-fil-a, they do
not face threat from new entrants because of their good image and market share.
Threat of substitute: The substitute product for chick-fil-a is its alternative which are
present in the market in order to occupy it in the better prices. These products are provided by
their competitors and become threat for them and they a aa prevail because of the technology and
innovative advancement in it. This factor is high in the context of chick-fil-a because high thread
from substitute leads to low profitability which reduces the price of their product.
Bargaining power of suppliers: Powerful suppliers are the one who can develop
Monopoly in the market bi demanding high prices and provide the Limited quality and quantity
of the product as this factor can affect the manufacturing and production cost of company. In
terms of food industries company has limited number of suppliers which can increase their prices
and for this they need to compromise with their quality and quantity. Many suppliers does not
rely on the profit of industry and also the products which are offered by its suppliers different.
Bargaining power of customers: The bargaining power of customers is high which
influences the profitability of suppliers and also the operating activities of company this factor is
not much favourable for both the suppliers and Company (Johnsen, 2018). As per this factor
chick-fil-a should introduce its products and offerings by considering the demand need
requirement price and quality of their customers. This factor is useful in order to avoid the
crucial situations for the company as for this they are depending on their buyers. In terms of
suppliers they have number of wires who can purchase large quantity of the products and the
products which are offered by company are standardized.
Competitive rivalry: This factor is immense in the food industry as it is identified that
many companies are competing with their competitors in a very tough manner in order to
maintain their power and position in the industry. In the context of chick-fil-a the competitive
rivalry is high in nature it has many competitors substance McDonald’s, Sainsbury and many
more which can become barrier in order to achieve the success for it.
Marketing strategy by using 7P's
Chick-fil-a is a company which deals in food and beverages and is a private company
original America and founded in the year 1946. The marketing mix is done in the context of

company as it helps it in analysing and adapting the best tool in order to make entry in the
market.
Product: It is a restaurant chain which is specialised in fast food in which they offer
sandwiches which are made from chicken. They serve breakfast lunch and dinner with their
menu and also provide catering services for the special events (Felix, Rauschnabel and Hinsch,
2017). Moreover, it also provide impressive product portfolio which includes fresh and healthy
items like in breakfast at offer buttered biscuit fruit cup hash Browns chicken biscuit and many
more.
Place: This factor include the location of the venue from which the products are being
provided to their respective customers. In the context of chick-fil-a, they mainly operate from
Canada and US. It has its headquarter in Atlanta and also opened its approximately 2200
restaurants which are spread over from its home country and cover 46 States. Company believes
in franchise system as it officer its franchise to other operators who can operate or Run its
business at other place as it helps in expanding its business and covering the more customer base.
Price: It is a factor which influences the profitability and sales of company. Currently
company targeted the middle and upper middle class people as fast food is there basic need and
they also offer quick and qualitative service in order to retain their customers (Kienzler and
Kowalkowski, 2017). Moreover, company also uses penetration pricing policy which helps in
retaining more and more customers with it as it justify that at first prices should be kept at very
low in order to achieve the competitive advantage.
Promotion: It is a factor which helps in advertising and promoting its product in the
market and it also advertise the various techniques inequality it is used in the ingredients of its
food item. Promotion is important is it helps in in achieving the sustainability and profitability in
the market. Fir this chick-fil-a, create many campaigns which put direct impact on the mindset of
customer and attract them in order to purchase its product.
People: This strategy include the staff of the company and the targeted customers is both
of these factors helps in achieving the success and expanding business in the new market
(Ziemba, Jankowski and Wątróbski, 2018). Because of good stuff they can provide better
services to their customers which helps in satisfying them and because of satisfied customers
they can expand themselves in new market on the basis of the existing customers feedback.

Physical appearance: It is the factor which helps in attracting the customer towards
itself. The strategy of factor influences the purchasing power of customer as it helps in attracting
them. In the context of chick-fil-a, the attract their customers on the basis of its physical
appearance such as By showing them the interior of their Store and decorating their offerings
which helps in attracting their customers.
Process: This factor is very important in the marketing as it describes the whole process of
product from its making to the consuming which includes the production manufacturing supply
chain till it reaches to the customer (Rinallo, Bathelt and Golfetto, 2017). In the terms of chick-
fil-a, it identifies the capability of the product to the supply i n demand of the consumers.
CONCLUSION
From the above discussion it is concluded that marketing is an activity which includes the
exchange of goods and services in order to get the huge amount of return. In order to analyse the
condition of market, PESTLE and SWOT analysis is conducted which helps in analysing those
factors which influences the business and its operations and also useful in order to reduce the
risk. Moreover, SMART objectives are discussed which helps in launching the product in the
market. In addition to this, their targeted market is discussed which helps in discussing their
target customers and age group and also analyse its competitors in the external market from the
competitor analysis model which is useful in the marketing management in order to assess their
current competitors. Moreover, marketing strategy is explained which describe that which tool is
used in order to take entry in the market.

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