Marketing Strategies for Chick-fil-A: A Detailed Analysis and Report

This report provides a comprehensive marketing analysis of Chick-fil-A, examining its business operations, and strategic marketing approaches. It begins with an introduction to the company, its founding, and financial performance. The report then delves into macro and microeconomic analyses using PEST and SWOT frameworks, evaluating political, economic, social, and technological factors, as well as internal strengths, weaknesses, opportunities, and threats. A detailed competitive analysis compares Chick-fil-A with competitors like McDonald's, Subway, and Taco Bell. The report further explores market segmentation, targeting, and positioning (STP model) and applies the SMART framework to marketing objectives. Finally, it outlines marketing strategies using the 7Ps, including product, price, place, promotion, people, process, and physical evidence, and how these strategies can be applied to the UK market. The report provides a thorough evaluation of Chick-fil-A's market position and potential for growth.

BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
Theories as well as models for the marketing for development as well execution of the
strategies of marketing................................................................................................................3
LO 2 ................................................................................................................................................5
Competition analysis...................................................................................................................5
LO 3.................................................................................................................................................6
Skills of analysing marketing situations as well as problems for adapting dynamic as well as
future which is uncertain.............................................................................................................6
LO 4.................................................................................................................................................8
Marketing strategies....................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business means an organization in which Chick-fil-A is a commercial, professional or
industrial activities are done for the purpose of making sales and making profit. Chick-fil-A was
founded in the year 1946. The founder of the company is S. Truett Cathy having headquarter at
College Park. Dan Cathy is a chairman as well as CEO of the company (Weinstein, 2019). The
company achieved revenue of 10.5 billion USD. The major products the company deals in
Sandwiches and Chicken dishes. SWOT and PESTLE analysis are discussed in detail.
Competition analysis of the company is done in detail in which other companies are taken and at
what factors the company is better at is discussed in detail. STP and SMART analysis of the
company is done and Marketing strategies are studied in which 7 Ps are studied.
LO 1
Theories as well as models for the marketing for development as well execution of the strategies
of marketing.
For doing Macro economical analysis of Chick-fil-A, PEST is used in the study and Micro
economical analysis SWOT analysis is used in the study.
Macro environment consist of surroundings of the economy as a whole, the national factors are
included in the Macro economical analysis which includes inflation, GDP, employment etc.
PEST analysis
Pest is macro environment analysis in which political, economical, social and technological
factors are considered for doing the analysis of the company (Zahari, and. Romli, 2019).
Political factor
For Chick-fil-A the political factor which will impact positively is change in government and the
government is friendly towards the hygienic food and for the same the government is providing
subsidies (Price, 2019.). The negative impact of change in the government will strict rules
against the waste management in which the Chick-fil-A can be charged higher penalty.
Economical factor
Inflation is the factor in which Chick-fil-A can be affected adversely in which the rate of the
products provided can be increased due to which the customer will shift to other competitors
(Nandonde, 2019). The positive affect of economical factor can be deflation in which if the price
of the product decreases the cost will be reduced and more revenue can be made.
Social factor

The positive effect on Chick-fil-A due to social factor is change in taste and preferences of the
audience in which is friendly to Chick-fil-A (Zahari, and. Romli., 2019). The negative effect
over the company is customer preference towards liquid or beverages after the food which is not
available and the same can lead to shifting of the customers.
Technological factor
The positive affect over Chick-fil-A is updated technology used by the company in which the
firm is used auto creation of the bill by scanning the code (Pestle. and et.al., 2019). The negative
affect will be outdated technology used by Chick-fil-A which not using robots for the delivery
this will create negative impact over the company by less accurate work.
Micro environment means environment which consist of small scale environment in which the
micro factors are taken into account.
SWOT analysis
Swot analysis includes internal factors which are affecting the business which includes strength
as well as weakness of the company and also what are the opportunities as well weakness of the
company.
Strength
It is a internal factor at which the Chick-fil-A is better from the competitors. The strength of the
company is its trained employees who are always ready to give professional services to its
customers (Frasson. and et.al., 2019).
Weakness
Weakness of the Chick-fil-A is poor marketing skills of the company in which the company is
still using tradition approach of marketing. If the traditional approach is continued then it will
result in increasing the cost and due to which the profits will fall. Chick-fil-A must correct the
situation by reducing the cost because the profit will increase due to reduction in cost.
Opportunities
The opportunity for Chick-fil-A is the government of UK is providing subsidies for the eco
friendly machines (Garambois. and et.al., 2019). The company should upgrade the machines
with the latest technology because the same will reduce the cost and increase the profitability.
Threat
Threat for Chick-fil-A is the increase in the competition in which new entrance of the
competition in the form of start ups are taking place. Chick-fil-A should focus on reducing the

cost because it is the only way by which the company can give competition to the other
companies.
LO 2
Competition analysis
Competitor analysis is the analysis in which current as well as potential competitors are seen in
order to find out what are strengths of the company and what are the weakness of the company.
As per the competition analysis the cost of the franchise fee is lower of Chick-fil-A if
compared with the McDonald's, also the initial investment is lower of Chick-fil-A if compared
with the McDonald's (Dorie. and et.al., 2019). This is a good symbol because the same will be
reflected towards the price of the product and if the cost is less of the product then the price of
Illustration 1: Competition analysis

the product will also be less this will help in attracting more and more customers. The company
can give franchisee at lower cost and which will help in spreading of the business at much larger
extent. The royalty fee is higher of the Chick-fil-A compared with McDonald's. This is not good
for the company as the company is required to pay fix fee of the royalty to the patentee. So if
there are more sales the company is required to pay more fees for the sales (Anderson. and
Gallini, 2019). As per the analysis Chick-fil-A should pay attention to the digital marketing in
which the company can reduce the cost of the marketing and due to which the profit of the
company will increase and also digital marketing is much effective tool. The company will be
able to sales more as there is option which is specifically designed for the targeted audience
which can target age group or lifestyle group more effectively. This will help Chick-fil-A to take
advantage over McDonald's. Chick-fil-A if compared with the other two companies known as
Subway and Taco bell, the firm is in better position in which the franchisee fee is less but the
initial investment is more, but it is good sign as there is more investment than it means the
company is providing better facilities which is must for providing better services (Anderson. and
Gallini, 2019). This will increase the brand name of the company and due to the customers of the
company will increase. These are the top competition of the Chick-fil-A but the company can
give tough competition if effective marketing strategies are used and also if effective discounting
strategies are used in which the company should focus on adopting the discounts on occasions
such as Christmas and new year or any other occasion, because it is the season in which the
company can have profit in bulk because there are more customers available due to holidays and
the same can help in buying more and more products.
LO 3
Skills of analysing marketing situations as well as problems for adapting dynamic as well as
future which is uncertain.
For the purpose of analysing marketing situations STP model is used for Chick-fil-A this will
help in determining what are the clear aspects of the company.
Segmenting
It is a research which include how the customers of the company will be divided. For the
purpose of segmenting the Chick-fil-A will use Demographic segmentation in which the market
will be divided on the basis of age and gender and accordingly the similar products will be
pinched based on the activity of the segmentation when they are online (Kim, Ha. and Park,

2019). Chick-fil-A will pinch French fries and bit more oil food to the children age group, the
medium oily or bit healthy food will be pinched to the mid age group and health food will be
pinched to the older age group.
Targeting
It involves dividing the market into segments and then focusing on marketing efforts for the
specific market (Men, Kuo and et.al., 2019). For the young age group the Chick-fil-A will use
social media marketing tool, this is because the young generation is active over social media and
due to which more sales can be made. For the mid and elder group the company will use SEO
and email marketing as they are not social site friendly but more friendly towards the official
sites.
Positioning
It includes the specific areas at which the company can outshine and beat the competition
(Ahani. and et.al., 2019). There are areas for Chick-fil-A at which the competition which is
McDonald's can be beaten such as Marketing in which first step of knowing the needs as well as
wants of the customers are known and then strategies are formed for the purpose of satisfying the
needs as well as wants of the customers. The other area is the better service in which the Chick-
fil-A should provide better services for the purpose of increasing the reputation of the company
in the market.
SMART analysis.
SMART analysis includes quantifying the objectives of the company and then articulating them
and then validating the same with the stakeholders (Nahum-Shani, and et.al, 2019). Under the
marketing plan Specific, Measurable, Attainable and Relevant objectives are included and the
same are reflected in the study are as follows:
Specific
It is clear as well as unambiguous in which what is expectected in the future is explained to the
employees (Ahani. and et.al., 2019). The thing which is expected in the future of Chick-fil-A is
increasing sales next year to 20%.
Measurable
Giving concrete towards progress compared with the objectives and then determining what is
met against the objective. For Chick-fil-A it is in qaurter one the sales ahcived are higher then
budgeted but in the next 3 quarter the sales were below the target (Beatty, Frayma. and von

Gravrock, Cujo, 2019). The progress is good but can be improved if selling and marketing team
is given updated knowledge of the softwares.
Attainable
The target set must be achievable and if not the company will fail drastically in achieving the
target (Beatty, Frayman. and von Gravrock, Cujo LLC, 2019). For Chick-fil-A the target made is
based on the previous year sales achievement in which all the factors related to the target is seen
and how much to increase the sales target is analysed on the previous year performance is done.
Relevant
The specified area of setting objective must be relevant, for example if the target is to increase
the sales then sales related data must be seen and not the operation related data should be seen as
its I completely irrelevant (Muangprathub. and et.al., 2019). For Chick-fil-A the Marketing and
sales related data is seen and not the data related to finance or any other department is seen in
framing the target.
LO 4
Marketing strategies
For framing the marketing strategies 7Ps will be used and the same will be applied over the UK
market for the entrance purpose.
Product
The product strategy which will be included in the plan will be product differentiation, the
strategy will be used as variety of product will increase variety of customers and this will lead to
generating more customers which will help in increasing sales of the company (Batzer, 2019).
Price
Pricing strategies used by the Chick-fil-A will be price skimming in which the company will
charge lower price in the initial faces and then the prices will increase (Önegi, Eser. and
Korkmaz, 2019). This will help in gaining more customers and the customers will be ready to
pay high prices if they liked the product afterwards.
Place
The place used for the distribution of the product will be physical as well as online for the Chick-
fil-A (Mols, 2019). The online platform will be used for the purpose of ordering online and
physical place will be used for the purpose of pinching relevant product along with the order
given.

Promotion
The promotional strategy used for boosting the sales of Chick-fil-A will be digital marketing
which is cost effective and more result oriented (Chitty, D'Alessandro. and Gray, 2019). The
strategy will be used in which SEO, SEM and SMM will be used to target the audience.
Packaging
The packing strategy used will be product with the purpose in which if one variant of the product
is delivered then other products will also be pinched along with that product of Chick-fil-A
(Batzer, 2019 ). For example if the packaging of hamburger is done then advertisement of French
fries will also be done.
Positioning
The positioning strategy which will be used by the Chick-fil-A will be cost positioning in which
the cost of the product will be minimised by eliminating wasteful activities (Chitty,
D'Alessandro. and Gray, 2019). As per the straegy the quality of the service will be improved
and all the activities which are causing additional cost will be eliminated.
People
Strategies used for the people by Chick-fil-A will be targeting the audience on the basis of age
and gender in which analysis of the women favourite food will be find out and them the same
product will be pinched to them (Johnson, 2019). In case of age the segmentation will be divided
into three category in which young, mid and old audiences will be made and as per the taste and
preference the similar products will be pinched to them.
CONCLUSION
As per the study it very important to do macro as well as micro analysis in which what
are the factors at which the company is not good and what are factors at which the company is
good at are known. Marketing plan is very important to be made because it gives the direction at
which the company is supposed to go and achieve the targets. STP analysis play a dominant role
in order to find out what are the key elements which are required to be achieved more
effectively. 7Ps analysis helps the company in deciding what strategy should be used for the 7ps.

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