Marketing Plan Report: Chik-fil-A Business Expansion Strategy

This report presents a comprehensive marketing plan for Chik-fil-A, focusing on its potential expansion. The report begins with an introduction to marketing management and its application to the fast-food chain. It then conducts a thorough market audit, including SWOT and PESTLE analyses to assess the internal and external environments. The report establishes SMART marketing objectives, and outlines the STP strategy for segmentation, targeting, and positioning. A competitor analysis is also included to understand the competitive landscape. Finally, the report formulates a marketing strategy using the 7Ps of the marketing mix. The analysis provides insights into Chik-fil-A's strengths, weaknesses, opportunities, and threats, along with the political, economic, social, technological, legal, and environmental factors influencing its operations. The report concludes by summarizing the key findings and recommendations for Chik-fil-A's marketing efforts.

Business creation of a
marketing plan

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
An audit of marketing environment............................................................................................3
Statement and Justifications to SMART objectives....................................................................6
STP strategy................................................................................................................................7
A competitors analysis................................................................................................................8
Marketing Strategy......................................................................................................................9
CONCLUSION.............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Marketing management is concerned with the application of various methods, techniques,
practices in the organisation. This can be done by identifying the potential markets to satisfy the
needs of the customers which are not fulfilled. It can be done by formulating various strategies
on the basis of market analysis of various factors. Marketing management is related with
planning, organising, controlling and implementation of various plans, tactics, strategies etc. This
report is based on Chik-fil-A which is an American fast food restaurant chain. It is known for
their chicken sandwiches. The company operates in United States with a large number of
restaurant in 47 states. In this report the market audit will be done for the company with the help
of various macro and micro factors analysis. Apart from this the marketing strategy will be
formulated by using 7P's of marketing mix and STP analysis.
MAIN BODY
An audit of marketing environment
Marketing audit is concerned with the comprehensive analysis and systematic evaluation
of the marketing environment of the business which includes both the internal and external
environment. In marketing audit the analysis of the goals, objectives, principles and strategies
will be done which helps the company to identify the opportunities and the problems (Baker,
2016).
To conduct the marketing audit the company has to perform analysis of micro and macro
factors with the help of SWOT and PESTLE respectively.
SWOT Analysis: To analyse the impact of various internal factors of the organisation
SWOT analysis will be done for the company in which the strengths, weaknesses, opportunities
and threats are identified.
Strengths Weaknesses
 The strengths of the restaurant is their
customer service as they have self-
services model which makes their
outlet unique.
 The restaurant sell sandwiches not
 The weakness of the restaurant is that
they do not have presence outside USA
which restrict the scope of their
operations.
 With the faster growth of the fast food

burger with chicken filling, which
protect the customers from the danger
of red meat.
 The employees of the company are paid
higher than any other in the industry
which increases their level of
satisfaction and make them competent
in serving the customers.
industry the customer retention and
loyalty is a major weakness of the
restaurant.
 The innovation is low in context of the
supply chain and marketing.
Opportunities Threats
 The products that is offered by them
have chicken filling which make them
healthy but still due to growing
consciousness they have opportunity to
add more healthy options in their menu.
 The Chik-fil-A has the opportunity to
expand their business in other countries
such as UK where the demand for such
product will be high.
 With the help of various advertising
and marketing the brand image can be
improved which will help them to
increase their customer base.
 Scandals about the chicken has impact
on the business as this changes the
mindset and the perception of the
people about the products offered by
the Chik-fil-A.
 The competition is a major threat on the
business which affect the profitability
and the sales of the restaurant.
 The increase in prices of the raw
material affects the supply and the cost
of the products of Chik-fil-A.
PESTLE Analysis: To analyse the influence of various macro factors the organisation
need to undertake the PESTLE analysis with which the favourable and unfavourable impact on
various factors of the macro environment are considered on the company (Bhandari, 2018).
 Political Factors: The UK is a constitutional monarchy that runs as per the parliamentary
system which makes it fair and stable for all to operate in the country. The political
situation in the country are stable due to which the policies will not change in near future
and it is an opportunity for the Chik-fil-A to enter into the UK market. But the

uncertainty due to Brexit may have an adverse impact on their operations as this will
have impact on the agreements with the suppliers overseas.
 Economic Factors: The economic condition of UK is comparatively better than any
other countries as they have relatively high GDP and a diverse economy (Cacciolatti and
Lee, 2016). The economy of UK has a large population which offers an opportunity even
for a small business to be profitable so for the Chik-fil-A. But the recovery from the
recession of 2008/09 is slow which is why the level of income in hands of public is not
much which may have an adverse impact on the demand of the products of the restaurant.
 Social Factors: The social factors are related with the taste and preference of the
customers which is crucial for the restaurant to consider. The UK is densely populated
country with an open environment for migration which has a positive impact on the
products so offered by the Chik-fil-A as the people prefer handy food which is even
healthy. The UK has been highly influenced by the concept of social class which can
impact the business of the Chik-fil-A as they do not provide any elite services for the
upper class or the upper middle class and this can affect the demand for the particular
segment of the company.
 Technological Factors: Technological factors has impact on the business and need to be
considered efficiently as the technology changes rapidly and influences the business. The
quality innovation in the services increases the level of expectations of the customers
which the businesses has to deal with (Bhandari, 2018). The Chik-fil-A offers innovative
services to the customers as they have self service model in their restaurant. This is
efficient to attract the customers. But the frequent changes in the technology increase the
cost for the organisation that will impact the financial strategies of the Chik-fil-A.
 Legal Factors: The legal implications affects the organisation as it increases regulation
on them which they have to comply with. The implication of the employment law, wage
rate etc. increases the regulatory requirement for the Chik-fil-A but it has positive impact
on them as it will help them to keep their employees satisfied. The trading barriers
restricts the flow of supplies such as chicken and various species, it affects the
availability of the goods to the customers due to shortage of material etc. This has
negative impact on the profitability of the restaurant as their sales will get affected due to
interrupted supply of the material (Cacciolatti and Lee, 2016).

 Environmental Factors: The impact of the business on the environment is crucial to
analyse as various laws are imposed to minimise the impact on the environment. The
waste management imposition and regulations affects the operations of the Chik-fil-A
negatively as they have to formulate various policies which can reduce such impact. This
will increase the cost for the company as they need to have either reusable or
environmental friendly products. But various eco-friendly products are used by the
restaurant which helps them to reduce the impact of their operation on the environment.
Statement and Justifications to SMART objectives
Marketing objectives are the goals which are determined by the company which helps
them to promote their offerings in the market. They are the marketing strategy which are set with
the aim to achieve the organisational objectives of the company (Deepak and Jeyakumar, 2019).
The marketing objectives of the company can be to create awareness about the products and
services of the company , the features of the products and the values which are provided by them
to the customers. The objectives of the Chik-fil-A on the basis of SMART approach are :
 Specific: The objective of the company must be specific which means that it should be
clearly defined so that it does not create any confusion among the employees of the
company. The objective of the Chik-fil-A is to expand their business which can be done
by contributing in the services of the economy. This can be analysed by increase in
turnover of the Chik-fil-A due to expansion in UK which they target to be 25%.
 Measurable: The specific objectives so determined by the restaurant must be measurable
as on the basis of this the comparison can be done. The objectives of increasing the
turnover is specific and can be measured on the basis of last years turnover and the
profitability (Festa and et. al., 2016).
 Achievable: The objective so determined by the organisation must be achievable as per
the market situations prevailing in the market. Such goals should be achievable so that it
does not create any pressure on the employees. The goal of Chik-fil-A is to increase the
turnover by 25% and it must not affect the satisfaction level of the employees.
 Realistic: The goal of the company that they have to achieve must be realistic and
relevant for the company. The objective of Chik-fil-A is to expand their business in UK
which is realistic as they have opportunity to expand in that country.

 Time-bound: The objective of the company must always be time bounded which can
help them to motivate their employees. The time limit which they have taken to achieve
the objectives is 12 months, this will make their employees to be consistent and focussed
towards the objectives in that time period.
The objectives of Chik-fil-A can efficiently be achieved as it is a SMART objectives
prepared on the basis of opportunities present in the market.
STP strategy
STP strategy helps the company in targeting the right customers, at the right place and at
the right time. With the help of this strategy the Chik-fil-A can easily compete in the market as
they can develop specific strategy as per the characteristics of the targeted customers (STP
process , 2019).
 Segmentation: The strategy of segmentation helps the company to identify the market
segment which they can target on the basis of common characteristics possessed by
them. The segmentation can be done on the basis of the demographic characteristics,
behavioural characteristics, lifestyle and the geographical factors (Grewal and et. al.,
2016). Chik-fil-A can segment the target market on the basis of the demographics and
lifestyle as they consider the taste and preference of the customers, their age, the group
they belongs to. UK has been chosen by the company as the location where they can
expand their business.
 Targeting: Once the market segment is identified the company need to consider the one
which they haver to target. The target market of the company can be decided on the basis
of the evaluation of all the segment. Chik-fil-A can identify the potential and commercial
attractiveness of all the segments which are identified by them. Out of all the segments,
the Chik-fil-A has selected the college going students and the children as they are the one
prefers the fast food the most.
 Positioning: The strategy of positioning is related with creating the image of the
company in the minds of the targeted customers about the values and the benefits of the
products and services to the customers. Chik-fil-A can position their products in the
minds of the customers with the help various promotional techniques such as
advertisement through radio, newspaper etc. Also they can distribute various platelets and

brochures with which they can target a large number of customers. This helps them to
take the competitive advantage over the competitors (Kerin and Hartley, 2015).
With the strategy of segmentation, targeting and positioning the Chik-fil-A can efficiently
achieve their objectives. On the basis of this they can effectively plan their marketing mix as
they have their target market and they know about their taste and preference. This further helps
them to analyse the demands of the customers on the basis of their characteristics which the
Chik-fil-A has targeted.
Perpetual maps can be used by the Chik-fil-A to identify and understand the perceptions
of the customers on the basis various attributes such as brand, product, services etc. This will
help the Chik-fil-A to compare the image of the brand with their competitors and on the basis of
this they formulate various strategies.
A competitors analysis
For analysing the competitors the organisation need to apply various models which can
facilitate them to analyse the position of the market. To analyse the market position the Porters
generic model can effectively used by the Chik-fil-A. This model suggest four strategies which
can help the organisation to identify the impact of competition in the business environment
(Kotler and et. al., 2015). These four strategies are :
 Cost leadership : As per this strategy the objectives of the company is to be the cost
leaders by proving the products at the lower cost. This can be done by the organisation
with the help of mass production by effectively utilising the capability and the capacity of
the production. The production at the large scale reduces the per unit cost of the products.
Also it can effectively be utilised by negotiating with the suppliers about the prices of the
goods. Chik-fil-A can use this strategy by procuring goods in bulk and then producing
their products. This will help them to reduce their overall cost and thus will reduce the
per unit cost of the products (Morgan and et. al., 2019).
 Differentiation: As per this strategy, the objective of the companies to attain the
competitive advantage. This can be done by proving the differentiated products and
services to the customers. The differentiation in the product and the services can be done
with the help of improving the quality of the products or by introducing innovative
features in the products (Soundar, Micro Macro Assets LLC, 2017). Along with that the

differentiation can be created by branding, channel of distribution etc. Chik-fil-A can use
this strategy as this will help them to get create their image in the market.
 Cost Focus: As per this strategy the company can focus on lowering the cost of the
company but the focus is on the narrow market segment of the company. The product so
offered by them are quite similar to those products which are available at the higher
prices but they can be availed by a large number of people. This strategy can effectively
be used by the Chik-fil-A. In which they can provide the product similar to those which
are offered by premium restaurant but at economic rate. This will help them to target a
large number of customer.
 Differentiation Focus: According to this strategy the objective of the company is to
provide the products and services with differentiation but to a narrow market segment.
With the help of this strategy they can target a specific group of people who are willing to
use differentiated products irrespective of the prices. Chik-fil-A can use this strategy if
they wish to cater to a specific group of people which wants unique products
(Ramanathan and et. al., 2017).
Chik-fil-A can efficient use all the strategy to take the competitive advantage but the
most suitable strategy which can be used by them for expansion is cost leadership. With the help
of this strategy they can serve a large number of people which will help them to expand their
market share easily and effectively. This will help them to take the competitive advantage over
others and to serve a large number of people with the healthy product.
Marketing Strategy
Marketing Strategy is the tool which help the company to successfully achieve the
objectives of the companies as it helps to formulate various strategies (Sharma, 2018). With the
help of 7P's of the Chik-fil-A can efficiently expand their business in UK.
Basis Chik-fil-A
Product The products which are offered by the Chik-fil-A is
sandwiches that are made up of chicken. Along with this
they provides various breakfast, lunch and dinner
options. While expanding their business they will enter
with the similar products.

Price The prices of the sandwiches and other menu are
economic as they have target middle and upper class
people. In UK also they will target the same class of
people.
Promotion The company promotes their products by developing
various campaigns with attractive tag lines. Similarly in
UK also they can do the same. But along with this they
can advertise their product through radio, newspaper,
brochures etc.
Place Chik-fil-A provides their products through their
restaurant which are located in various cities. In UK also
they will open their restaurant in London, Greenwich
etc. as the crowd of students in these cities are higher.
People The target customers of the Chik-fil-A are the children
and college going students. In UK also they will target
the same as the product which offer can attract them
easily (Stead and Hastings, 2018).
Process The Chik-fil-A provides their products through the
channel of marketing and by managing their relations
with the suppliers. They manages the inventory well
which ensures their timely production.
Physical evidence The retail stores of the company will be the physical
evidence. Along with this the products which are
provided by them and the bags, invoice are considered
as their physical evidence.
CONCLUSION
It is concluded from the above report that the company can successfully survive in the
competitive environment but for this they have to conduct various market research. With the help
of SWOT and PESTLE macro and micro factors are analysed. For analysing the competitive

position the generic model of the competitive analysis is used which help the company to
determine various strategies that can help them in taking the competitive advantage. With the
help of all the analysis SMART objectives are prepared. Also it is concluded that with the help of
various marketing mix the strategies can be formulated which help them to achieve their
objectives.