Chick-fil-A's UK Market Entry: A Marketing Management Report

This report offers a detailed marketing analysis for Chick-fil-A's potential entry into the United Kingdom's fast-food market. It begins with an introduction to marketing management and its application to Chick-fil-A, a successful American fast-food chain. The report then conducts a comprehensive audit of the UK's macro-environment using PESTLE analysis, evaluating political, economic, social, technological, environmental, and legal factors impacting the fast-food industry. A thorough competitor analysis follows, comparing Chick-fil-A to key rivals like McDonald's and Burger King, highlighting strengths, weaknesses, and competitive advantages. The report further outlines a clear segmentation, targeting, and positioning (STP) strategy, identifying the target market as families, youths, and kids seeking healthy fast food. Finally, it proposes a marketing strategy using the 7Ps (Product, Price, Place, Promotion, People, Process, Physical Evidence) to gain market entry and establish a strong presence in the UK, emphasizing competitive pricing, healthy food options, and strategic positioning.

Marketing Management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
An audit of the marketing environment; Macro analysis.......................................................3
TASK 2............................................................................................................................................5
A competitor analysis to highlight how the organisation will stand out from the competition. .5
TASK 3............................................................................................................................................7
A clear segmentation, targeting and positioning (STP) strategy and perceptual map to
illustrate firm's potential market position...............................................................................7
TASK 4............................................................................................................................................8
Marketing strategy using the 7P’s to gain an entry into the UK market................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing management refers to the process of planning, decision making, monitoring
and controlling the market aspects of firm in terms of marketing concept within system. It
supports the functions and activities which are included in products and services distribution
(Atwal and Williams, 2017). This report is based on Chick-fil-a which is one of the private fast
food chain of America, established in year 1967 by S.Truett Cathy. The company is looking to
bring its franchise in United Kingdom as a part of market expansion. For entering into new
market, the report emphasize on marketing environment audit in which macro environment of
market is analysed and competitor analysis is done in order to determine how the firm will stand
out from competition. Moreover, segmentation, targeting and positioning strategy for firm will
determine to illustrate its potential market position. At last, 7P's marketing strategy is included
in report to gain firm's entry in United Kindgom's market.
TASK 1
An audit of the marketing environment; Macro analysis
Marketing environment audit refers to a systematic, comprehensive, autonomous and
periodic examination of marketing environment, strategies, activities and objectives of business
with a view to identify opportunities and problem areas and recommending an action plan in
order to improve the performance of organisation. Chick-fil-a is a fast food chain of America that
offers sandwiches and chicken dishes to its customers. The firm operates around 2300 restaurants
in United States and its average sales per outlet is around 4m dollars in year 2017. The company
currently exists in 48 states of America among 50 and is a very popular eatery of today. After
getting success in the American market, now company is looking to bring its franchise in market
of United Kingdom as a part of business expansion. For this, it is necessary for marketing
manager of company to analyse the macro environment and all the factors that may impacts on
its operations and strategies (Bagozzi and et. al., 2018). Analysis of macro factors will help
manger of company in development and implementation of effective marketing strategies that
will facilitate in gaining competitive advantage in market. The macro environment of UK can be
analysed by using PESTLE analysis of fast food industry which is mentioned below:
Political factor: This aspect includes impact of policies and actions of government on
organisations operating in fast food industry. The political regulations related to food quality,

hygiene, food standards etc. required to be follow by companies operating in this sector. The
political environment of United Kingdom is stable which will provide an opportunity to Chick-
fil-a to run its business operations smoothly in the country as the laws and regulations are not
changing frequently. The pressure of government to include healthier items in menus may
impacts the operations of company. So, it will be necessary for company to ensure inclusion of
healthier items in menu (Fast Food Industry PESTEL Analysis, 2019).
Economic factor: This aspect is associated with the impact of trends and conditions of
economy on macro environment of fast food sector. The businesses of fast food industry has
affected by economic recession that may impacts revenues and profits of company while
operating in UK market. However, high quality customer service and involvement of cheaper
options in menu will provides an opportunity to Chick-fil-a to earn high revenues in United
Kingdom's market. Stable economic growth of country also provides an opportunity to it to
increase stability and grow its fast food chain business.
Social factor: This component includes social conditions that limits or supports the
businesses operating in fast food industry. The behaviours of customers are influenced by social
trends that affect business in terms of revenue. Busy lifestyles of people in United Kingdom
increases the likelihood of consumers to dine in restaurants such as Chick-fil-a instead of
cooking food. This will provides an opportunity to company to operate its business in UK market
and earn high revenues. However, increasing trend of healthy lifestyle may create threat for
company as people are now becoming more aware about their health (PESTEL analysis of the
UK, 2019). In order to deal with this situation, company can include healthy and low calorie
food options in its menu to satisfy needs of customers.
Technology factor: This aspect plays crucial role in success of businesses operating in
fast food industry. Innovation and changing technological trends influence the business of fast
food industry. The success of Chick-fil-a will highly rely on its adaptation to increase the
benefits of technological resources and trends. As the people of UK are more techno savvy,
services like online order placement will provide an opportunity to company to reach more
consumers and increasing its sales. Also, use of high end technology in food processing and
manufacturing enable company to provide hygienic food products and develop large consumer
base.

Environmental factor: This aspect is linked with natural environment and impact of
ecological trends on consumers and business. Today, people are more concerned about
environment and the regulations related to food grew stricter and stiffer which may create threat
for company. However, if company will follow all the environmental regulations made by
government, engage in socially responsible activities and run operations by using techniques like
waste management and green approach, then these will provide opportunity to company for
running its business operations smoothly and effectively within United Kingdom. Engagement in
environment friendly activities helps Chick-fil-a in ensuring its sustainability in market for long
term (Felix, Rauschnabel and Hinsch, 2017).
Legal factor: This component is associated with impact of laws and regulations made by
government on business. Health laws impose limits on availability and accessibility of fast food
at some places. Changing legal requirements and nutritive value and food quality are the main
areas that are affected by law. This may threaten the revenues of Chick-fil-a. Compliance with
food, waste management and employment laws will help company in running its operations
smoothly with the support of government. Compliance with packaging, sales and marketing
regulations will also helps company in conducting business activities appropriately within UK
market.
TASK 2
A competitor analysis to highlight how the organisation will stand out from the competition
Competitor analysis refers to the assessment of strengths, weaknesses, strategies and
objectives of current and potential rivals of company. This analysis administers defensive and
offensive strategic contexts to determine threats and opportunities (Gummesson, 2017).
Competitor analysis is the easiest way to compare Chick-fil-a's products and services with akin
firm in market. In United Kingdom, there are various food chains operating in market such as
McDonald's, Burger King, Subway, KFC, Greggs, Five Guys, Pret etc. which offers similar food
products and services to customers as Chick-fil-a. These organisations will provide tough
competition to company while operating business in UK market. Analysis of competitors will
help Chick-fil-a in competing against existing rivals by having knowledge of product strategy of
competitors. It also assists firm in being flexible as per the changing market situations and learn
about positioning itself in market. The competitor analysis for Chick-fil-a is mentioned below:

Aspect / Feature Chick-fil-a McDonald's Burger King
Strengths Healthy food choices,
high quality and
hygienic food.
Strong brand image,
operates at global level.
Strong consumer
loyalty, high market
share.
Weaknesses Not much social media
presence, Limited
menu.
Unhealthy food menu
and negative publicity.
Scattered marketing
campaign and narrow
target audience.
Pricing strategy Competitive pricing
strategy.
Price bundling with
psychological pricing.
Market oriented pricing
strategy.
Country of origin America America America
Target customers Families, youths and
Kids who like to have
fast food as well as
healthy and hygienic
food.
Families along with kids
who are willing to spend
money in dinning.
Working class people
who are willing to
spend money on high
quality of food.
Industry Fast food franchises Fast food franchises Fast food franchises
Founded in Year 1967 Year 1940 Year 1954
As various competitors are available in market of United Kingdom, Chick-fil-a requires
to differentiate itself from others and offers such products and services to customers that assists
in maintaining its position for long term in market (Homburg, Jozić and Kuehnl, 2017).
McDonald's and Burger King, both companies have strong brand image and loyal consumer base
which will makes it difficult for Chick-fil-a to attain high revenues. However, healthy food
choices and high quality hygienic food will provide an advantage to company over rivals. These
will help company in attracting more number of customers and satisfy them by offering healthy
food choices with low calories. The company will offer food for families, kids and youths who
like to have healthy fast food which will help it in standing out from its competitors. Chick-fil-a
will also offer its fast food on competitive prices which means it sets prices of products as per the
pricing strategy of competitor's products. This will supports in attracting potential customers and

maintaining large consumer base. All this will assist in attaining competitive advantage over
rivals and stand out from the rivalry in market (Johnsen, 2018).
Strategies and decisions related to marketing are impacted by complexity of competitive
environment. As the competition is much high in fast food industry of United Kingdom, the
manager of Chick-fil-a requires to determine the most appropriate way to position its products in
market against rivals. The decisions regarding positioning have high implications for product and
sales. While expanding business in United Kingdom, firm requires to gather market and
competitive data in order to determine the most appropriate marketing strategy and taking
effective decisions regarding to its implementation. Formulating strategies and taking decisions
by considering the strategies of rival companies will help manager of Chick-fil-a in attaining
competitive advantage in market (Kienzler and Kowalkowski, 2017).
TASK 3
A clear segmentation, targeting and positioning (STP) strategy and perceptual map to illustrate
firm's potential market position
Market segmentation is characterised as the process of segmenting market of potential
consumers into small homogeneous groups. It will makes it easy for marketers of Chick-fil-a to
personalize marketing campaigns. Grouping consumers with similar characteristics will allow
marketers of company to target specific consumers in cost effective way. Segmentation also
minimises the risk of ineffective or unsuccessful marketing campaign. When the market is
divided on the basis of key characteristics and the strategies are personalized on the basis of that
information, then the chances of success is much higher. There are four types of market
segmentation on the basis of which marketers can divide their market. These includes
demographic, geographic, Psychographic and behavioural segmentation (Kotler and et. al.,
2018). As Chick-fil-a is a fast food company and wants to bring its franchise into United
Kingdom, firm will segment its market on the basis of Demographic and behavioural
segmentation. In demographic segmentation, firm will divides its market on the basis of age,
gender, income and occupation.
In behavioural segmentation, the division is based on personality and user status of consumers.
Target market refers to the selection of group of potential customers to whom company
wants to sell its products and services. The target market of Chick-fil-a will be family, youths

and kids who are aged between 3 to 45 years and belongs to middle and high income level
groups. They should be easygoing and are potential and regular eaters of fast food.
Positioning refers to the strategy that determines the place that a brand acquires in mind
of customers. It is the ability of an organisation to influence perception of consumers and
distinguish itself from the competitors. Chick-fil-a will position itself in market by providing
high quality hygienic fast food to customers at competitive prices. The company will a include
healthy food options in menu in order to attract large group of customers (Rinallo, Bathelt and
Golfetto, 2017).
Perceptual Map:
Perceptual map is defined as the visual representation of potential customer's perception
regarding particular attributes of a company, product, brand, idea or service (Zimmerman and
Blythe, 2017). This map will allow marketers of Chick-fil-a to understand the competitive
position of their brand and how customers are view and feel about the brand. The perceptual
map for refereed organisation is mentioned below:

TASK 4
Marketing strategy using the 7P’s to gain an entry into the UK market
The main objectives of company includes:
 To expand business and increase market share by 20% within 2 years.
 To increase profit ratios of firm by 15% within 1 year.
Marketing strategy refers to the approaches to plan with the fundamental aim of attaining
sustainable competitive advantage in market. It includes marketing mix elements that helps to
understand what service or product can be offer to customer and how to plan a successful
product offering (Wierenga and Van der Lans, R. eds., 2017). It is a tool that includes set of
actions that a firm utilize to promote its brand into market. As Chick-fil-a wants to enter into
United Kingdom, the marketing mix elements will employ by the organisation in following way:
Product: It is an item or object that is made available for the use of consumer. Chick-fil-a
will offer sandwiches and chicken dishes to customers which are of high quality and hygienic.
It will also offer healthy food options in its menu.
Price: It refers to the value that an individual is willing to pay in return of a product or
service. Chick-fil-a will use competitive pricing strategy and offer products to customers at less
price from the competitors.
Place: It is defined as the area where the product is actually sold. Chick-fil-a will expand
its business in United Kingdom and offer its product in market of London.
Promotion: It refers to the way through which an organisation will promote its products
and services. Chick-fil-a will promote its brand in market of UK by using social media tools and
television advertisements.
People: It involves the individuals who are accountable for each element of marketing
strategies, sales and activities. Company will provide training to employees so that they enable
to deal with customers in more proper way (Ziemba, Jankowski and Wątróbski, 2018).
Process: It refers to the processes through which products and services are deliver to
customers. Chick-fil-a will use high end technological machineries for preparing high quality
food products and offer them to customers.
Physical Evidence: It involves everything that an individual see when interacting with a
firm. Chick-fil-a will maintain good interiors in its outlets that provides physical evidence to its
customers.

CONCLUSION
As per the above mentioned report, it has been concluded that in order to enter into new
market, it is very essential for organisation to conduct environmental audit by analysing macro
and micro environment of firm. It is also necessary to analyse macro environment carefully and
the impact of various factors on operations and activities of business. Organisation requires to
consider needs of customers and offer them products accordingly in order to get success in
market. In fast food industry of UK, various competitors are available that provides tough
competition company. Competitor analysis helps company in gaining competitive advantage in
market. STP strategies assists in dividing market and determining target audience. For gaining
entry into UK market, 7P's of marketing will be very helpful to be employed by company.

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Online
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<https://notesmatic.com/2016/09/fast-food-industry-pestel-analysis/>
PESTEL analysis of the UK, 2019. [Online]. Available through:
<https://www.howandwhat.net/pestel-analysis-uk/>