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MBA631 Marketing management - Chick-fil-a

University: London School Of Commerce

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 13 / Words 3212
  • Paper Type: Minor Case Study
  • Course Code: MBA631
  • Downloads: 56
Question :

This assessment will cover following questions:

  • Create an understanding of the theories and concepts that helps in execution of marketing strategies in Chick-fil-a.
  • What are the complexities of the competitive  business environment and its impact on Chick-fil-a.
  • Develop the skills and knowledge that analyse maket situation and challenges and access dynamic nature in business.
Answer :
Organization Selected : Chick-fil-a

INTRODUCTION

Marketing is the action of the organization in which the organization look to sell and promote the product of the company in the market. Chick-fil-a is one of America’s private fast food chains, which was founded in 1967 by  S.Truett Cathy in Atlanta. This report highlights the Macro/micro analysis of the organization. After that the report highlights the SMART objective which organization is looking to achieved in the coming time of period. After that the report goes on to highlights the STP of the organization on the basis of which the organizational will be positioned in UK market (Appelroth., 2015). After that  the report goes on to highlights the Competitor analysis with the help of understanding the Competitor advantage with the help of porters generic force. After that the report goes on to highlights the 7p's of marketing so that on the basis of which how the product will be positioned in UK market. 

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Audit of the marketing environment

SWOT Analysis is a model which used to analyse different internal and the external factor which may have the impact on the performance and Strategies of an organization. Internal factor which are analysed are different strength and weakness which is faced by the organization and the external factor which are analysed are the threat and opportunities which are presented for the organization.

Strength

Financial Position: Biggest strength of Chick-fil-A is the financial position of the company. As Chick-fil-A is operating in the market for more than 50 years and able to build the trust among the customer with the help of high quality of product and the services. Company has earned good profit of the business.  Chick-fil-A are one of the highest selling product in the US market. Good financial position will eventually provide support for the organization  in getting  choice and resources in the market (Calvo-Porral, Medín and Losada-López,  2017).

Restaurant ambiance and Services: This is the another big strength of  Chick-fil-A, as almost all the fast food restaurant used to keep the ambiance of the restaurant as simple as possible so that customer do not spend lot of time. This is not the case with  Chick-fil-A as they used to keep the ambiance of the organization more colourful and attractive. Another big reason of seeing this sort of the success is impeccable customer services. This help the outlet in attracting the customer toward the outlet.

Weaknesses

Geographical Coverage: This is one of the biggest weakness of Chick-fil-A. Organization only used to operate in the US market irrespective of the good outcome from the market. This eventually has cut down the market area coverage of the organization in the long run of the business. Organization used to operate in the 48 state of the US out of the total 50 state but not used to operate in the global market.

Higher Prices: This is the another weakness of the organization as the price of  Chick-fil-A product is very high as compare to that of a competitor in the market (Dib, 2018). This may prove as a obstacles for the organization when they will look to enter the UK market. As customer in the market always look for the value for there spending. As number of competitor in the organization is very high in the UK market, it will create the thousand of the obstacles for the organisation to sell the product of the company.

Opportunities

Expansion: It is the biggest opportunity which is present in front of  Chick-fil-A, as explained in the strength section that organization is having a good financial position with the help of the same the cited firm can plan to enter into the UK market. This eventually increase the   market area coverage of the company and huge number of customer in the market which is weakness of the company. This will help the firm in overcoming the weakness of Geographical coverage and also utilizing the strength of the company in the better way.

Healthy fast food: As there is a good trend of healthy fast food in the UK, there is a good opportunity which is in the front of the Chick-fil-A. Organization can avail the same opportunity by taking help of new technology and developing the product which is good in taste and as well as healthy for the consumer. This will provide a crucial hand for the organization in satisfying the need of the customer in the UK  very efficiently.  Also it may prove crucial for firm in overcoming the difficulties of the higher price in the market as customer will be happy enough to pay organization a sum of money if they are getting the desire quality and able to satisfy the need in the market.

Threat

Legal: This is the biggest threat which is there for the organization as  Chick-fil-A has to compile with the different sort of the legal compliance to operate in the market. This eventually used to affects the efficiency of the organization function as different permission has to be taken by the organization (Lamb and Crompton, 2017). Some of the regulation under which the organization has to compile is the employment law, business law and data theft law.

Competition: It is the another threat which is looming on the organization as  Chick-fil-A used to operate in the highly competitive market and also the organization has to face the same amount of the competition in the UK market also. As there are good trend of the fast food in the UK also as a result there are many companies who used to offer the fast food in the UK market.

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SMART Objectives

Smart objective is the statement which used to describes the what an organization is hoping to achieve in the coming period of time. Smart acronym used to specify that the statement must be specific, measurable, achievable, realistic and timely. 

“Enter into the UK market by the mode of franchising in the coming one year

As organization is having the good financial position and also seen the good outcome and result in the domestic market. Chick-fil-A will look to expand into the UK market by the  way of  Franchising form as it is one of the successful business expansion option (McDONALD,  2016). This will also improves the market area coverage of the firm.

“To increase the product line of the company by innovating new product with the help of technology in coming 6 month”

As there is a good trend of the healthy fast food in the new market and there is good opportunity available for the organization to procure the technology in the organization. Organization can develop the good and healthy product in the market. So that the firm will able to  increase the product line of the company and attract the eye of the customer in the market.

“To increases the sales of the company by 20 percent with the help of increasing the market area coverage in coming 1 year”

Expansion is the way through which the company will able to enter into the new market it will eventually increase the market area coverage of the company and also company will see the huge number of the consumer from the market. So the organization will try to increase the sell of the company by offering the service and product in the market.

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Segmentation, Targeting and Positioning (STP) strategy and perceptual map

SEGMENTATION, TARGETING AND POSITIONING (STP)

It is the process of the marketing in which the organization used to take the different step in the organization which is focused toward finding out the best categories of the customer which can be consider for offering the service or the product of the company in the UK market. This process used to go through the three different stage to ascertain the best possible customer base which can be targeted by the organization (Paley,  2017). The process Starts with the Segmentation, goes on to Targeting and used to finish on the Positioning.

Segmentation: Segmentation is the process in which the organization used to split out the bigger market into the small group  on the basis of the different characteristics and factor from the market. Some of the common factors are need of the product, charecterstics of the person, purpose of targeted market etc.. As Chick-fil-A is entering into the market which is new for them and the organization has no experience about the customer in the UK market.  Chick-fil-A will be grouping the different group on the factor of the age and characteristic. This can be done with the help of different agencies and the third parties in the UK as they are having the information about the customer and there characteristic in the market. Chick-fil-A will segmenting the customer on the basis of age, location and preference.

Targeting: It is the second stage in the process in which the organization will be selecting the best segment out of the total segment which is in front of the firm. In this step the organization used to select the segment which can be adversely settled by the organization on the basis of their strength and resources.  Chick-fil-A will be selecting the customer group of 15 to 45 years as this age group customer used to have more eating tendency as compare to the other age group customer in the UK (Robinson and et.al., 2018). Also  Chick-fil-A will also targeting the customer who is looking for more healthy food in the market. As  Chick-fil-A is looking to develop healthy food in the market. Another reason for selecting this category of customer is the growing trend in the market about the healthy fast food.

Positioning: Positioning is the process in which how organization will be showing the feature of the company in the market. Generally, it is the step where the organization decides the promotional tool which can be used by the organization to promote the awareness about the different offering of firm for the consumer.  Chick-fil-A will be using the combination of more than one promotion  tool to promote and positioned the product of the company in the market.  Chick-fil-A will be using the social media marketing as well as the newspaper advertisement to position the product of the company in the market. Social media marketing will help the company in attracting the teenager customer as they are the one who are the one who are more on the social media (Kerin  and Hartley, 2015). Newspaper advertisement will help the company in attracting the other categories of the customer as almost all the customer generally used to go through the newspaper.

Competitor Analysis

As explained in the above section also that there is huge number of the competitor which used to operate in the Fast food industry of the UK market. For understanding the same the organization used to take the variety of the step in the organization. This can be better understand with the help of the Poter's Generic Strategies model. Key principle of Poter's Generic Strategies model are as follows: 

Porter's generic strategies used to describe the different ways through which the organization can able to gain the competitive advantages.  This model used to focus on the lowest cost, differentiated and focus strategy.

Cost Leadership Strategy: It is the strategy which can be used by  Chick-fil-A for getting the competitive advantages in the market. In this strategy the organization has to implement the different strategy in the organization so that the cost of the company product can be reduced in the market. So that the larger number of the consumer can be attracted toward the product of the company. In this strategy the leader in the organization used to generally focus on the cost of the company and always try to adopt the new technology in the organization so that the large number of the customer can be attracted toward the company. Also  Chick-fil-A can look to adopt the new operational mechanism in the organization to improve the operation of firm (Kotler and et.al., 2015). This will prove crucial for the firm in reducing the manufacturing cost of offering.  Chick-fil-A can eventually increase the profit of the company and also can take the step to improve the market share by charging the lower prices from the customer so that the large number of the customer used to come to the organization.

Differentiation Strategies: Differentiation strategies is the strategies in which the organization used to develop the product which is not developed by any other organization in the past. It is the process in which the organization used to see the market and on the basis of the same used to find out the different need and the preference of the customer in market. By taking the help of the same used to develop the product which was not developed by the company in the past also. Chick-fil-A will require to conduct the market research before entering the new market. Market research should include the research on the different trend which are there in the market. .  Chick-fil-A can develop healthy fact food in the UK as there are many less organization which is doing the same but at the same time there is a good trend of the same in the market.

Focus Strategy: It is the another type of the strategy which can be used by the  Chick-fil-A to get a competitive advantage in the market. As this strategy used to concentrate on the particular market and on the basis of understanding of the particular market the organization has to bring the product which is new in the market The reason behind the success of this strategy is that market segment used to become less attractive for the competitor.

7P’s  of organization

Product: As Chick-fil-A is one of the leading food chain in the US due to high quality of the product and services which is offered by the company in the market. Chick-fil-A used to offer variety of the product in there product line to attract the customer in the market. As Chick-fil-A is looking to enter into the new market of the UK organization has to change some sort of the product line in as In US people love to eat the Beef as a core of the Burger (Keegan, 2017). At the same time in the UK people love to eat chicken more as compare to the beef. So the organization has to make sure that they make some changes. Also the organization will be introducing the healthy fast food in the market.

Price: Chick-fil-A  used  to charge the higher rate of the product in the market as compare to the competitor. Chick-fil-A has to make sure that they offers the product of the company at the lower rate in the UK market or can be said that the organization uses the penetration pricing method to catch the eye and the mind of the customer in the market. As the penetration pricing method will ask the customer to offer the product at the lower rate in the initial stage and after that increases the price very slowly in the market.

Promotion: This feature of marketing mix in which the organization used to focus on how to aware the customer of the market about the different offering of the organization.. Chick-fil-A  will be using the mixture of the promotional method to promote the product of the firm in the nation. Chick-fil-A  has to use the social media marketing to attract the younger customer from the market and newspaper advertisement to attract the eye of the other group of the customer from the market also.

Place: Place element used to explain the market in which the offering  of the firm will be sold and the distribution channel will be used to sold the product of the company. Chick-fil-A  will look to sell the product in the UK market with the help of the direct distribution channel by opening the outlet of own company and will be selling the product with the help of the same in the market (Baker, 2016).

Packaging: As Chick-fil-A  has been associated with the variety of the social responsibility in the past also. Chick-fil-A  will be carrying out some of social responsibility in the UK by using the recycling material to package the product of the company and offering the same in the market. Chick-fil-A will be offering the product in a wrapper along with the container.

Physical evidence: Chick-fil-A  has there name and logo is registered and trademarked. Chick-fil-A  will be using the same in the different marketing activity.

People: The organization has to make sure that they used to hire the talented and skill full employee to carry out the different operation of the organization. Also has to make sure that the organization used to provide the good amount of the incentive and wages to the employee so that they are happy enough to work for the organization.

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CONCLUSION

The report has summarized that Chick-fil-a is doing well in the local market of the USA. As  Chick-fil-a is the outlet which used to have the highest number of the sale. This is the same which is shown in the Micro environment analysis of the organization. After that the report summarized that the organization is looking to expand the business and improve the sells of the company in the market. After that the report goes on to summarized that  Chick-fil-a will be targeting teenage group of the customer and customer with the tendency of eating. After that the report goes on to summarized that there is huge amount of the competitor in the nation. After that the report goes on to summarized the 7 p's of the organization.

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