A Comprehensive Marketing Report: Chick-fil-A's Strategies

This report provides a comprehensive marketing analysis of Chick-fil-A, a prominent fast-food chain. It begins with an introduction to marketing management and its significance for businesses, particularly in a competitive environment. The report then conducts a thorough audit of Chick-fil-A's marketing environment, employing both SWOT and PESTEL analyses to identify the company's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, environmental, and legal factors influencing its operations. The report outlines SMART objectives for Chick-fil-A, detailing how the company can achieve its goals. Furthermore, the report explores Chick-fil-A's STP (Segmentation, Targeting, and Positioning) strategies, providing insights into how the company segments its market, targets specific customer groups, and positions its brand. A competitor analysis is also included, assessing the competitive landscape and identifying key rivals. The report concludes by examining Chick-fil-A's marketing strategy through the lens of the 7Ps marketing mix (Product, Price, Place, Promotion, People, Process, and Physical Evidence), offering a holistic view of the company's marketing efforts. The report utilizes information from various sources to provide a well-rounded and detailed analysis of Chick-fil-A's marketing approach.

Marketing management

Contents
INTRODUCTION...........................................................................................................................................3
An audit of marketing environment........................................................................................................3
Objectives:...............................................................................................................................................6
STP Strategies:.........................................................................................................................................6
Perceptual Map:......................................................................................................................................7
A Competitor Analysis:............................................................................................................................7
Marketing strategy using the 7P’s...........................................................................................................8
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
Marketing management is an action and functions by which companies involve in the
distribution of the goods and services. It helps organizations in analyzing and evaluating the market
conditions, make plans and implement those strategies. After implementation marketing management
tool also help in controlling the various programmers of company and brings desired changes. It also
helps in targeting the market in order to achieve the organizational objectives. Marketing management
is a very essential process which is required by organizations for facing the increased competition by
improving the distribution methods and making them according to the changing market conditions. It is
obvious that entities are doing business for earning profits and marketing management techniques
enables them to earn profits. This report is made in context of Chick-fil-a, which is an American fast food
chain. It is the largest of its kind and serves best quality and tasty chicken. Chick-fil-a is specialist in
providing good quality chicken products and its most famous product is chicken sandwiches. It has its
headquarters in college park, Georgia, company was founded in 1967 and has more outlets than any
other fast food chain in the U.S. In this assignment focus is on the audit of marketing environment of
Chick-fil-a, stating its SMART objectives and justifying segmenting, targeting and positioning techniques.
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.
An audit of marketing environment
Marketing audit is a systematic analysis of the firm and its business activities. It’s an
understanding of internal and external factors which influence the business. According these elements
company sets it objective and make plans for better implementation of those strategies. This analysis
also enables organisations to gain understanding about its short coming and help them to face those
problems.With this analysis Chick-fil-a can get proper understanding of its external environment and
make its plan of actions according to it for attaining effective results and obtaining predetermined
objectives. Some tools are present in market in order to understand the market condition and work in
accordance with it. Those methods are PESTLE and SWOT analysis, by these an audit of market is
conducted for knowing all the risks associated and exploring more opportunities (Kotler and et. al.,
2018).
SWOT Analysis
This is a tool which is used by businesses to know its strengths and weaknesses along with its
opportunities which can foster their growth. Also, all threats are determined so that plans can be made
to mitigate its effects.These units are explained in contexts of Chick-fil-a which are as follows:

Strength refers to those units which are helpful for organisation and which states the benefits or
advantages of it. Strengths of chick-fil-a are the service it provides to the customers and it proved to be
its success factor.Chick-fil-a provides the best customer service also they have self-service section for its
guests who all are visiting the restaurants. On the other hand they have great ambiance which helps in
attracting more people towards their food outlets. Their ambiance made their customers stick with
them and spend more time in their restaurants which automatically brought more business. Despite of
this, their face to face ordering makes their customers feel that they are important for them and also
impress them (Keegan, 2017).
Weaknesses are those areas which act as barriers for businesses and where they need to
improve themselves for better performance and earnings. Chick-fil-a weakness is their geographical
coverage, they do not have its restaurants in many locations it do not cover various regions.Chick-fil-a
have limited presence in relation with its competitors who provides similar goods or who are huge
competition for the company. This is their biggest disadvantage and weakness, another disadvantage of
Chick-fil-a is their prices. They charge high prices which affected their customer base and it became very
difficult for them to retain their buyers. As fast food is industry is growing very fast so as the competitors
which is why Chick-fil-a also has make its pricing strategies according to the marketplace for sustaining
and growing (Deepak and Jeyakumar, 2019).
Opportunitiesare those elements which are present in the external environment of business and
exploring them can actually bring better results towards company, giving them effective profits. For
Chick-fil-a offering or adding healthy food options is an opportunity which can help company to gain
attention of more people and increase their sales. It will also result in increasing their customer base
grow their business, improving its image in eyes of public.
Threats are those factors which stops and hinders the growth of company and which brings lots
of disadvantages for businesses. The biggest threat Chick-fil-a is facing currently is same of the scandals
which came out recently in public in relation with the quality of chicken they use. This has hindered the
growth of company and alsoaffected its business financially their sales reduced. Another threat
companies face and Chick-fil-a is facing too is the increasing competition and fast entry of more new
entities in business.
PESTEL Analysis
This analysis is done in order to understand and know the position of business in market by
evaluating the external environment and factors in it.These factors are discussed as under:
Political factors refers to the regulatory practices which is implemented by government by way
of rules and regulation, which helps them to keep the country in order, increasing ease for businesses to

conduct their functions or activities. This factor put positive impact as chick-fil-a as it alters the
standards of food and beverages in its manufacturing.
Economic elements are those which are affected by the situation of the economy in which
company is doing business and from which they are going to earn their revenue. These factors are the
inflation rate of current economy, tax policies and growth rate in the respective economy.Chick-fil-a is
having its operations in a very effective economy ad that has positive impact on company and its
operations (Chernev, 2018).
Social factorsare those which depend 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. This will result in a very positive manner for Chick-fil-
a as it will give effective results to it.
Technological elements are those which involve development of AI, use of machines by
analysing data and many more. E-commerce is an opportunity for chick-fil-a as technology is becoming
part of day to day life of people and by using it organisation can increase it sales by providing online
food services to consumers. This will give ease and comfort to people and this will help company in
attracting more and more crowd changing them into customers. Environmental factors are those which
revolve around the consumers and also analyse their needs, customs, beliefs and beliefs. 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 factors depend on the more specific rules, laws and regulations which are present in
economy for which are there for resolving any disputes amongst businesses. Chick-fil-a is very particular
about the health and safety laws by which they improve their quality of their food products (Wierenga,
and Van der Lans, 2017).
Objectives:
In order to expand their business successfully the Chick-fil-a company is trying to adopt
SMART objectives so as to attain the higher success and growth within the limited period of
time.

Specific: This respective company has determined a specific goal in which they have decided to
compete with their competitors within the limited period of time by executing most appropriate
strategies and plans (Pasquier and Villeneuve, 2017).
Measurable: The organization is seeking to cover a huge market place from 60% to
80%.
Achievable: This firm is trying to get higher success and growth in marketplace within
the 5 months by bringing franchise.
Relevancy: Main focus of this organization is to get a leading position in market as
comparison to competitors.
Time bound: The business manager has decided to achieve its organizational goals and
objectives within the 5 months of time period.
STP Strategies:
Segmentation: This process is very helpful for the business organization of Chick-fil-a
Company as it will help them in identifying about the customers perception and market segments
toward their products and services which enables them to ascertain the success of their
organization in marketplace. As company is trying to expand their business so in this case they
are mainly consider income level and behavior of the people.
Targeting: Herein, manager of this business organization will determine their target market that
for which they are undertaking all the activities as Chick-fil-a is coming up with franchise with
the motive of target the food loving people.
Positioning: As this respective organization is able to attract a range of customers towards their
products and services due to which there are huge chances for them to attain higher position in
marketplace within a limited period of time (Gummesson, 2017). (Homburg, Jozić and Kuehnl,
2017). (Atwal and Williams, 2017). (Olson and et. al., 2018).
Perceptual Map:
A perceptual map refers to a chart which is used by market researcher of an organization to
identify that how target customers feel and view towards the new establishment or new service.
It is also seen as product positioning maps which will help the business manager of Chick-fil-a in
understanding competitive positioning. It also allows them to ascertain that their products and

services are able to satisfy the customers’ needs or not so that require changes can be
implemented successfully.
A Competitor Analysis:
In order to operate all the business activities smoothly it is essential for the business
organization of Chick-fil-a in to ascertain the competitiveness in marketplace (Keegan, 2017). As
this respective company is facing the cut-throat competition in the marketplace from various
competitors like one the main example is McDonald’s. Due to which it become more essential
for them to first ascertain the competitiveness in market and then formulate effective decisions
for their business. In this aspect, they can use Porter’s five force model as this will help them in
taking all the decision by undertaking future outcomes not only giving their focus on considering
present situations. It comprises five factors which are defining below:
 Threat of new entrants: Threats of new entrants are higher for Chick-fil-a as because it
is listed in the most well recognized organizations due to which they generally have to
face this issue. But they have invested a huge amount of funds in their business activities
which makes it impossible for other rivals to beat them easily. Due to this significance,
other organizations are not able to beat Chick-fil-a on the basis of their profitability level,
customer base, market share and introducing new standardized products in the
marketplace.
 Bargaining power of suppliers: As in the present market scenario, various firms are
leading their business in fast food service industry due to which the bargaining power of
supplier is constantly is at increasing level. In the situation if any other organization like
McDonald’s will give higher amount to supplier then it will become issue for Chick-fil-a
in accomplishing the requirement of essential resources and raw material which will lead
direct negative impact on their productivity and profitability.
 Bargaining power of buyers: This power remains at higher level for Chick-fil-a as
because a range of competitors for them is available in marketplace. As in case, if the
organization will decide premium price of their products without giving their focus on
providing higher satisfaction to the customers then in this situation customers will not
think to change their perception as many other options are available in marketplace.
 Threat of substitutes: Substitutes are mainly concern for Chick-fil-a as various
substitutes are available in market such as products from local bakeries and artisanal food

producers. As in case if this respective organization will not offer high quality products
then customers can easily shift from other company due to the low switching cost.
Rivalry among existing competitors : There are a range of food service industries are operating their
activities like McDonald’s, KFC, Jack in the box and many others which hindrance the chances of getting
higher recognition and successfully expanding the business. This factor of this model help the firm is
tackling impact of competing organizations in industry environment (Lambert and Enz, 2017).
Marketing strategy using the 7P’s
Marketing strategy refers to that strategies or methods which are using by an organization
in order to promote their products and services in marketplace. As the Chick-fil-a is mainly
concern for expanding their business through franchise then it is essential for them to espouse a
most effective mareting strategy so as to enhance their market value and to attain higher success.
In this aspect they can 7Ps of marketing mix which contains various tools which will help the
business organization in promoting their products effectively. These are as follow:
Product: This refers to items in which are offering to the customers in terms to satisfy their
needs. The business organization of Chick-fil-a is based on fast food joint chain which is offering
from breakfast to dinner. It offers various varieties like egg, sausage, nutritional biscuits and also
offering several beverages. Within their restaurants they also have separate section for kids and
health conscious people where they are catering them as per their requirements and demand.
Price: Due to offer higher quality products to the customers their items prices are slightly higher
as compare to their rivals. Their prices are determining by them as per their strategy to target
higher level of income people who is able to pay a certain amount for products and services.
Along with this, they are offering higher amount of salary to their employees as compare to
contemporaries. But as in the present scenario, company wants to expand their business then in
this case it is essential for them adopt economy pricing strategy so that they can attract a range of
customers towards their products and services (Johnsen, 2018).
Place: Chick-fil-a is huge in size which can be seen by its geographical presence across the
world. Their outlets are situated at various countries like USA, Canada, New York, South Africa
and many others. Although they have huge presence in marketplace but still they wants to
expand their business through franchise in order to cover a big marketplace and attain leading
position.

Promotion: This refers to the promotional strategies which are adopting by an organization to
create awareness among customers towards the company’s products. As Chick-fil-a is able to
attain higher customers’ attention through its online presence. Other, they are also using email
marketing, billboards, public relations etc. to increase its reach. As company is currently
focusing towards expansion of the business then in this case it is necessary for them to consider
social media so as to enhance the awareness among their customers for their products (Aarikka-
Stenroos and Ritala, 2017).
People: Chick-fil-a is targeting higher income level people due to their higher pricing strategy
and qualitative offerings. But now they need to give their focus on targeting every aspect of
people so as to enhance their market value and profitability as well.
Process: This process is generally defines that how an organization is deliver products and
services t their customers. As franchise is required approx $ 10000 investment at initial level due
to which it is essential for them to stay focused towards providing rigorous training and
development programs to their employees so that best services can be provided to the customers’
and enhance their satisfaction level as well as organizational profitability.
Physical evidence: The outlets and restaurants of Chick-fil-a are its huge physical evidence.
The most impressive think which attract more and more customers towards this organization is
its ambiance and customer service. The serving way of employees is most attractive and the
overall ambiance of the restaurants in every location is remarkable which enables them to attract
a range of customers. In their entire franchises uniformity factor is greatly take place which
direct lead impact on their performance, profitability and sustainability as well.
Hence, these are all the factors of marketing mix which needs to be considered by the manager of
Chick-fil-a before making the decision regarding expand their business as this will enables them
to go through from their current business position and also help them in determining best for
their organization so that higher success and growth can attained in the limited period of time
(Felix, Rauschnabel and Hinsch, 2017)

CONCLUSION
From the above file, it can be concluded that before making a marketing plan is very essential
for the business organization in order to come up with the best ideas related to expand the business. As
it will help the association in ascertaining their external and internal environment of the business so that
they can ascertain their impact on the performance and can reduce negative impact of these factors.
Along with this, it will also help them in effective marketing strategies related to achieve their
organizational goal and objectives in a significant manner so as to attain higher success and recognition
in marketplace.

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