Marketing Plan: Chick-fil-A, Marketing Management, LSC UoS, 2019

This report presents a marketing plan for Chick-fil-A, a fast-food restaurant chain. It includes a macro analysis using the PESTLE framework, examining the political, economic, social, technological, legal, and environmental factors influencing the business. The micro analysis focuses on market structure, price elasticity, and Porter's Five Forces. The report defines SMART objectives for increasing sales, market share, and profitability. It details an STP strategy, covering segmentation, targeting, and positioning. A competitor analysis compares Chick-fil-A to Subway, and the report concludes with a discussion of the 7Ps of marketing, including product, price, place, and promotion.

Marketing Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Macro analysis............................................................................................................................1
Micro analysis.............................................................................................................................3
Objectives....................................................................................................................................4
STP Strategy...............................................................................................................................4
Competitors analysis...................................................................................................................5
7 P's.............................................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing management refers to an organizational discipline that focuses on practical
application of the marketing orientation, methods and the techniques within an enterprise and on
management of the company's marketing resources and an activities. The present report is based
on chick-fil, an American private fast food restaurant, founded in the year 1967 by S. Truett
Cathy in the Altanta, US. Furthermore, the study involves micro and macro analysis with
framing of SMART objectives and 7Ps marketing strategy. Moreover, it includes application of
the strategic model such as pestle analysis for reviewing the positive and the negative impact of
each factors.
Macro analysis
PESTLE
Political- This factor relates to government instability and the changing regulatory
framework of the government in respect of the fast food industry. In case the government is not
stable then it shows a great impact on the working of the company as with change in
government, their regulations also changes and this in turn creates complexity for the firm to
function in accordance to each and every type of government (Zahari and Romli, 2019). On the
other hand, stable government with compliance of the regulations shows a positive influence as
full support of the government will be achieved and expansion for the industry becomes an easy
task. For example- In order to make and availing an excellent food, Chick Fil A seeks for
altering standards of the food and the beverage manufacturing.
Economical- It reflects the growing disposable income of the people and increase in the
labour cost has highly influenced fast food industry. High income of an individual results in
higher spending on the fast food which in turn increases the revenue of the fast food industry.
This shows a positive effect on the overall profitability of the company. However, cost relating
to hiring the workers increases around all the industries with regards to growing demand for the
employees and also higher level of minimum wages as per the government expectations (Fozer
and et.al., 2018). This results in the negative effect on the firm as labour cost increases, its profit
margins tends to decrease. For instance- Economy of US is seen as growing over the years with
launching of the variable products specifically focusing the on the nutritional food of the kids, so
its a positive sign for Chick Fil A in growing its business.
1

Social- Evolving lifestyle of the people leads to high living standards and more
preference is been given to fast food which seen as the positive measure for an industry as large
customers could be attracted and the profits of the company increases. On other side, health
consciousness and dietary restrictions among the people throws a negative effect on the
functioning of the company smoothly as people will not preferred to consume fast food that
affects their health. For example- Chick Fil A is adopting appropriate process in meeting the
goals in searching of the yummy and the healthy food.
Technological- It is the major factor that relates to the technological advancement that
needs to be adopted by the firm in order to run its business competitively. With more and more
automation within the industry indicates a positive sign as faster delivery and serving of the food
could be made (Aithal, 2016). However, it increases the cost in relation to providing proper
training to the staff in making an appropriate or optimum use of the equipments in processing the
food. For instance- Chick Fill A is seen as top most MNC that invests a large amount of money
within various departments in order to take its product to the next level. Chick Fill A also made a
huge investment in R&D for making its products more and more healthier or nutritious in respect
of offering healthy food to its customers.
Legal- It includes the laws and the legislation that is required to follow by an enterprise
operating in fast food industry. All the legislations that includes health and safety law, safety
food act has to be taken care off within the fast food industry because it shows a positive impact
on the company as it reflects that company is working in consideration with proper safety laws.
However, if such legal laws are not bee followed then company has to pay for a huge penalty and
need to face negative criticism which directly hampers its brand reputation and stake within the
industry. For example- Chick Fill A does not faces any negative impact in terms of the legal
factors as it operates its business functions by following all the guidelines and the laws.
Environmental- This factors relates to an impact of the climatic conditions on the
company. Fast food industry is highly affected by the climate changes as the quality of the food
reduces in rainy season and people prefer to consume very less so it reflected as the negative
impact (Kharub and Sharma, R., 2017). On the other hand, company that is operating its business
in an environmental friendly work environment in consideration with the energy and the
resources. As because of production of the larger variety of an items, there might be the risk if
resources used are been recycled or not.
2

Micro analysis
Market structure- Chick Fill A operates under monopolistic competition as its market
structure where there present a large number of the competitors who offers same products with a
slight difference. This is counted as the most common type of the market structure where Check
Fill A manages in competing with the other monopolies and has there speciality in the fast food.
Price elasticity- The price of the product of this company is seen as highly elastic
because it has large number of competitors and offers similar products so its price tends to
change as demand for the product also changes to a great extent.
Porters five forces
Competitive rivalry- Competition within the firm helps in determining lucrativeness of
the industry where a company is competing for the purpose of maintaining the power in the
industry (Fan, Lau and Zhao, 2015). Chick Fill A faces high level of competition the on the
basis of the diversity, development within the segment and the barriers in relation to the entrance
in market.
New entrant threat- This factor is seen as in favour of company which exists within the
market for creating a barrier for new entrants in preventing from entering in the industry. The
company faces both types of barrier that is industrial and legal barrier. Along with this the
reputation and the size of an entity which are already been operating within market plays a
crucial role. Moreover, cost relating to entry, use of the raw materials, barriers in relation to
culture and the technical standards also plays an important role and could affect decision of new
entrant in market.
Substitute threat- The substitute or alternative of the Chick Fill A are been available in
market at comparatively in better prices. Such type of the products prevails because of the
innovative and the technological advancement (Datta, Ailawadi and Van Heerde, 2017). This is
because the products that are being produced by an enterprise which already exist in market and
make use of the same technology and then replaced by other organization's product which seems
to be better in context of the quality and the price that are being produced from the segments
with the significant amount of profits.
Bargaining power of the buyer- The customers are having strong level of bargaining
power that highly influences profitability of suppliers that are operating within the market by
3

imposing a condition that are not favourable for suppliers in respect of its price, service and
quality. Thus, it becomes critical for the company in avoiding the situation of getting highly
dependent on buyers. The concentration and interest level of buyers towards a product gives very
less power. Chick Fill A buyers are been deemed as strong as it contains negotiating leverage
particularly in case if an industry is price sensitive, this induces a pressure from the buyers on the
suppliers for making more reduction in the prices.
Bargaining power of the supplier- Powerful suppliers contains more and more power in
capturing the significant value for their own through demanding for higher prices at the time of
limiting quantity and the quality of the service and the product. The supplier power of Chick Fill
A is counted as strong as there is high competition level in the market.
Objectives
 To increase sales by 10% at the end of year 2020
 To capture 35% of the market share by the mid of 2020
 To increase profitability by 20% till the beginning of year 2021
STP Strategy
Segmentation- It could be done on the basis of several categories that includes
geographical, demographic, psycho-graphic and behavioural where it focuses on the diversity
and region in terms of the geographical area. Chick Fill A segments its customers based on the
demographic segment that involves classification of the products and services on the basis of
gender, income, age, life-cycle and occupation is considered.
Targeting- It implies for choosing the particular groups as the result of segmentation in
selling the products. Chick Fill A makes use of the differentiated targeting strategy at the time
when the company creates a campaigns which appeal for minimum two market sectors or the
target groups (Liu, Y. and et.al., 2017). This targeting strategy helps the company in
distinguishing itself from their rivalry and targets mainly middle and the high income class
people who are willing to pay and has the high living standard.
Positioning- It relates to creating a unique brand image in the minds of the customers
through differentiated product offerings or by using sales promotional tools. Chick Fill A uses an
adaptive kind of the product positioning and in accordance to it, a entity is been engaged in the
periodical re-positioning of the services and the products as per modifications in a segment.
4

Competitors analysis
Basis of difference Chick Fill A Subway
Product It offers wide variety of the
nutritional biscuits, sausage,
egg and babel along with
beverages.
However, it has not yet fully
expanded its business in the
beverages and only offers
snacks, breads and
sandwiches.
Price It makes use of skimming and
premium pricing strategy
where it charges higher prices
than Subway for offering high
quality products (Stead and
Hastings, 2018).
On the other side, it uses
differential pricing strategy
along with value pricing.
Place The company is having wider
geographic presence in
addition with its outlets across
the world.
It mainly operates its business
through the franchises around
the globe.
Promotion It promotes its products
through online channels from
the public relations, social
media, email-marketing etc.
However, this company makes
use of several promotional
activities such employs the
personnel who sells their
product personally, includes
public relations etc.
7 P's
Product- Chick Fill A provides a wide range of products to its customers that includes
Breakfast items like biscuits, egg frill, sausages etc. In sauces it provides for different flavours
that are mustard, Barbeque, Garlic etc. In the dressings, it involves creamy salsa, chilli lime etc.
It also he serves for drinks, treats, salads and Entrees.
5

Price- Chick Fill A mainly targets upper and the middle class people that belongs to the
urban families as their target customers who looks for the quick fast food services with the
offering the best quality. The firm had adopted the reasonable pricing strategy that helps in
keeping the pieces of an item in an affordable range (Ramani and Srinivasan, 2019). For the
purpose of dealing with their competitors, company had adopted the competitive pricing strategy
and had keep their products at the par value in consideration with the price maintained by its
competitors.
Place- It operates across the globe and serve its services through its different outlets and
opened for around 2000 restaurant in the US across different states. Chick Fill A had also
opened for franchisee at the the Atlanta in the Georgia. It had opened drive through joints at
mainly 31 locations and majority of its restaurants are been founded at the airports, universities,
malls and hospitals. The company had created a good presence in the online sector and thus
offered an online delivery and the placement orders.
Promotion- An enterprise had opts fro an innovative technique for publicizing its
products and the brands. It had created for the add campaigns that helps in directly dealing with
the mindset of the customers. As the part of the company's promotional activity, it offers free
meal to the people who dressed up as a cow on their celebration of cow appreciation days. It
makes use of the descriptive tag-lines that are very popular and attracts a larger customers in
revisiting and consuming the food on a frequent basis. It has also entered into the various
sponsorship in order to deal with increased visibility of its brand (Marketing mix of Chick Fill A,
2017). The company had actively participated in greater than 700 programs like the children
homes, families in the need and an academic sponsorships.
Process- It relates to the activities that is undertaken in delivering the services to the
customers and the client. Chick Fill A maintains a homogeneity in process of preparation and
processing of the food with managing all the cultural and the legal needs of environment such as
use of the oil components, health issues etc. Thus, it follows a homogeneous process in making
and processing their food items.
People- It means those persons who are been involved in any of the stages and in making
an organization function in a manner that is been setted. Chick Fill A includes the people like
employees, store managers, chefs, staff, marketing manager and other managers.
6

Physical evidence- It referred as the ambience of the store, its name, symbol and
appearance. It would relates to an ambience that seems as comfortable, lively and the fun loving.
Chick Fill A is having large number of restaurant, an attractive name with the logo and online
presence in terms of its physical evidence.
CONCLUSION
By summing up the above report marketing management plays an important role in
developing a better understanding of macro and micro environmental factors which largely
impacts operations of Chick Fill A. It helps in making detailed analysis of the marketing strategy
adopted by the firm and the process of its services and the products that are been introduced and
is promoted to the potential customers. In order to thrive competition, need for developing the
strategies of the distribution for reducing the cost and in increasing the profits has been
obtained.
7

REFERENCES
Books and Journals
Aithal, P. S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. International Journal in Management and Social
Science. 4(1).
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.
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.
Fozer, D. and et.al., Life cycle, PESTLE and multi-criteria decision analysis of CCS process
alternatives. Journal of cleaner production. 147. pp.75-85.
Kharub, M. and Sharma, R., 2017. Comparative analyses of competitive advantage using Porter
diamond model (the case of MSMEs in Himachal Pradesh). Competitiveness Review: An
International Business Journal. 27(2). pp.132-160.
Liu, Y. and et.al., 2017. The effects of products’ aesthetic design on demand and marketing-mix
effectiveness: The role of segment prototypicality and brand consistency. Journal of
Marketing. 81(1). pp.83-102.
Ramani, N. and Srinivasan, R., 2019. Effects of Liberalization on Incumbent Firms’ Marketing-
Mix Responses and Performance: Evidence from a Quasi-Experiment. Journal of
Marketing. 83(5). pp.97-114.
Stead, M. and Hastings, G., 2018. Advertising in the social marketing mix: getting the balance
right. In Social Marketing(pp. 29-43). Psychology Press.
Zahari, A. R. and Romli, F. I., 2019. Analysis of suborbital flight operation using
PESTLE. Journal of Atmospheric and Solar-Terrestrial Physics. 192. p.104901.
Online
Marketing mix of Chick Fill A. 2017. [Online]. Available
through:<https://www.marketing91.com/marketing-mix-of-chick-fil-a/>
8

9