This assessment will cover following questions:
- Bring knowledge and understanding of important theories, concepts and models in marketing to guide the development and execution of marketing strategies.
- Provide in-depth understanding of the complexity of competitive environment and discuss is effects on developing effective marketing decisions and marketing strategies in organizations
- Critically analyses marketing situations and problems facing organizations and generate its capacity to adapt to a dynamic and uncertain future.
- Develop appropriate and actionable marketing strategies and tactics to an organizational scenario.
Marketing plan can be said as business plan where organization includes all the strategies which required expanding their operations in the international market. So they need to build marketing plan for the successful implementation. Managers of the company have to ensure that they implement all the marketing strategies effectively in order to achieve business goals & objectives (Brown and Bell, 2015). This report based on Chick-Fil-A which is American based Food Chain Company founded in 1967 by S. Truett Cathy in Atlanta. This project report cover various topics such as macro or micro analysis, competitive analysis, SMART objectives, STP strategy and marketing mix for the measurement of customers.
Audit of marketing environment
Macro environment: There are various factors which affect the operational functions of the organizations. In context of Chick-Fil-A, managers use the PESTEL analysis to determine the factors which drive the changes. These are mentioned below:
Political: This includes the various factors such as government policy, political stability, taxation etc. If Chick-Fil-A wanted to open franchise in UK they need evaluate the market condition of UK and make their strategies accordingly. Recently UK faces the various complications due to Brexit which lead the instability in the politics. It became difficult for the Chick-Fil-A company to open franchise in the UK market (Icha and Agwu, 2015).
Economic: It includes the various aspects as inflation, interest rate, exchange, deflation rates, wage, economic growth etc. It affects the overall development of the company so they need to develop their expansion strategy accordingly. Chick-Fil-A thinks to establish their franchise in UK so they need to formulate their strategy which provides them suitable growth or able to maximise their sales as well as revenue. Need Essay help.Talk to my experts!
Social: It includes the distribution of products according to age, consumer attitude, demographic area etc. In context of Chick-Fil-A, if they open franchise then they have to analyse the eating habits of UK’s citizen because they are more focus on healthy food. So these factor need to measure before making any strategies for the expansion of business.
Technological: Use of latest technology provides the various benefits which helps in expanding their business in the UK through opening a franchise (Plassmann and Weber, 2015). Company required focusing on latest trend of market which provides them opportunity to grow. It helps the managers of Chick-Fil-A to formulate their strategies accordingly to expand their operations in the UK.
Legal: It includes the various rules & regulations which required following by the Chick-Fil-A when they open their franchise in the UK. They need to follow Food hygiene legislations because in the UK they are strictly implemented.
Environmental: In context of Chick-Fil-A they need to focus on population, climate change, CSR, weather etc. these factors helps in building their image good in front of public. They need to follow environmental protection law at the time of making strategies for the opening of franchise in the UK.
Micro environment: This analysis will be done with the help of SWOT analysis where organization measure their strength as well as weakness that is important to analyse before making strategy to open new franchise in UK (Prasad and Prasad, 2015).
- Company have huge customer base in US so they wanted for the same in UK.
- Chick-Fil-A has good brand image that is beneficial for them to expand in UK market.
- Offer quality food along with effective customer service.
- Company provide only chicken food item which limit their sales as well as customers.
- They offer their food at higher price which is barrier for the company and influence buying decision of customers.
- They can expand their business in UK through offering healthy fast food which meets their expectation.
- Add the vegetable items in their menu attract new customers which maximise their sales as well as revenue (Smith, 2018).
- In the UK market there are already various competitors available such as KFC, McDonald’s, Popeye's etc.
- Legislation affects the expansion of Chick-Fil-A because territory rules are very strict.
Statements and justifications of 2 / 3 marketing objectives
There are some marketing objectives of Chick-Fil-A in order to expand their business in terms of franchise in UK are as follows:
- In order to attract huge customers this helps in maximising market share by 15% in the next 3 years.
- Chick-Fil-A wanted to increase their profit margin by 12% in next 3 years.
Above mention objectives can be achieved by Chick-Fil-A when they open their franchise in the UK. It helps in achieving their goals or maximise the productivity as well profitability (Staton, 2016).
Clear segmentation, targeting and positioning strategy and perceptual map
STP: STP is known as one of the major components which are used by the managers of Chick-Fil-A in order to focus on franchising their business; it also helped managers to segment its market and target its audience in order to position its product in a market which helps it to achieve its organisational goal. Following are the elements discussed in segmenting, targeting and positioning its product:
Segmentation: It is considered as the main element is STP, in Chick-Fill-A it is used by higher level of management to segment it market for franchising its business. Following are types of segmenting used by an organisation:
- Demographic: In this type various products which are launched by company are segmented on the basis of age, gender, education, marital status and occupation.
- Geographic: In this the market is segmented on the basis of location in which the company wants to expand its business such as city, state, region, etc.
- Psycho-graphic: The Company segments its market on the basis of personality, belief, lifestyle, values and attitudes of its potential customers.
- Behavioural: Under this market segmentation is done by dividing it in small homogeneous products in order to create brand loyalty.
Targeting: Once the market segment is done the marketing mangers starts selecting its target audience to which it will cater its product. In case of Chick-Fil-A the targeted segment is people which fall under the age group of 14 to 40 who more likely to have a taste for fast foods (Whitty, 2015). In this case company targets an audience of the upper middle class as cost of its product is comparatively high.
Positioning: In Chick-Fil-A managers uses different methods to position its product in the minds of its customer. In order to increase its sales company can provide with a free meals to customers which are frequent and also discount points can also be given to its regular customers. Worried for assignment help?Take Experts help!
A competitor analysis
For the competitor analysis of Chick-Fil-A, Porter’s five forces model is used. It is a model which helps the managers to analyse and indentify the different five competitive forces which plays an important role in shaping every industry and understand its strength and weakness (Wiederhold and et.al., 2014). Following is the competitor analysis:
Competitive rivalry: Competition within the industry is very high as organisation such as KFC, subway, Mc Donalds, Burger king are already providing with fast foods. While formulating strategy managers of Chick-Fil-A should pay attention to its existing competitors.
Threat of substitutes: Local fast food vender which are providing with same fast food items in the country UK are the closest substitute of Chick-Fil-A. Big and well recognised brands such as Mc Donald’s, KFC, etc also provide similar fast food at a competitive price.
Threat of new entrant: Due to various entry barriers in this sector threat of new entrants are limited. Chick-Fil-A has to come up with a new and unique product in order to launch itself in UK. In this case company does not feel any threats from new entrants but existing players posses as great threat due to which it may lose its market share.
Bargaining power of buyers: Due to increase in competition bargaining power of the buyers are high. As in case of Chick-Fil-A, price of the fast foods offer by it is comparatively high as it targets upper middle class people maximum consumers tends to shift to its competitor as they also provide the similar fast food with a lesser price.
Bargaining power of suppliers: Suppliers for the raw material in UK are very high which reduces bargaining power of its supplier which can help Chick-Fil-A, to reduce its prices of product and maintain its quality in order to attract various other