Description
Chick-Fil-A is known for its production of chicken products in the chicken restaurant industry. The company has been widely recognized across the southern region of the United States which is promising.
"#$%&$#'(&) *(&)+,#, &(- .&/01$#(2
"$/&$12+
.&/+ .1#,$1/3 455& 6&/01/3 7188 ")&%29$1/3 7&
+( ;(-1/)(
'
Product Life Cycle (PLC)
Chick-Fil-A is in the Growth stage of the Product Life Cycle. One main reason that
Chick-Fil-A is in the Growth stage is because of the company’s continuous growth in sales.
Chick-Fil-A has kept a steady increase in sales since 1967, when the first Chick-Fil-A
restaurant was opened. Over the course of the next 33 years, the company maintained the growth
in sales and reached $1 billion in annual sales in the year 2000. Over the last decade, Chick-Fil-
A has seen a rapid increase in sales, surpassing $2 billion in 2006. In 2009, with an 8.6%
increase from the previous year’s sales, Chick-Fil-A’s annual sales rose to over $3 billion. The
rapid and constant increase of sales shows that Chick-Fil-A is doing well in the Growth stage of
the PLC.
Along with an increase in sales, Chick-Fil-A’s number of restaurants has continued to
rise each year. Chick-Fil-A is a chain restaurant, which can be beneficial in the Growth stage.
Chick-Fil-A offers its food products at reasonable and fair prices, and same-store sales increased
by 2.5% from 2008 to 2009. Also, the Chick-Fil-A company owns most of its restaurants, but
licenses the restaurants out to franchises for a fixed annual income supplemented by a share of
the in-store sale’s profit. This concept allows stores to open at a lower cost and attracts a higher
number of franchises, resulting in the spread and growth of Chick-Fil-A restaurants. By adding
these new stores, Chick-Fil-A can increase reach and frequency, which is a main goal during the
Growth stage.
Chick-Fil-A is steadily expanding and the company is second to KFC in chicken
restaurant market shares. Chick-Fil-A has a strong competition with KFC and Popeye’s, and
must also compete with new companies joining the market. Additionally, Chick-Fil-A faces
competition from restaurants such as Burger King and Sonic in the overall fast-food market. To
maintain growth, Chick-Fil-A must aim to increase market share in both markets. The company
is adding products to the menu and expanding store locations to help increase sales and market
share during the Growth stage of the PLC.
(
Chick-Fil-A: Marketing Strategy
SWOT (Strength, Weakness, Opportunity, and Threat) Analysis
Chick-Fil-A
Strengths
• Chick-Fil-A is very well known for having such a good chicken sandwich, which
differentiates them from competitor’s whose brands are centered on plain chicken.
• The Chick-Fil-A Cow’s advertising campaign has become popular and has built
recognition among chicken restaurants and differentiation compared to fast food
chains that serve beef or burgers.
• Chick-Fil-A has had a continuous increase in annual sales over its entire lifespan.
• Chick-Fil-A holds the second largest market share in the chicken restaurant
market.
Weaknesses
• According to a tradition that started with the first Chick-Fil-A restaurant, Chick-
Fil-A is not open on Sundays. This guarantees that every Chick-Fil-A in the
nation is closed for 52 days out of the year in addition to observed holidays. Not
only does this directly affect sales, but it can potentially decrease brand
acceptance and recognition.
• During lunch-serving hours, every meal is chicken. Chick-Fil-A offers salads and
different sides during the day, and it offers meals that include bacon, ham, and
sausage during breakfast hours. Customers may feel like they are limited in their
choices and those that want something besides chicken are forced to order a side
item or go to another restaurant.
• Chick-Fil-A started and grew in the South. While the company is expanding, it is
still heavily concentrated in the South. Chick-Fil-A’s presence in the western and
and mid-western regions is very little to none at all.
Opportunities
• Chick-Fil-A is a franchise. This means that there are opportunities for individuals
in every part of the nation to open restaurants. This will increase reach and
frequency for the company. Also, because all of Chick-Fil-A’s franchises are still
run under certain rules and restrictions set by Chick-Fil-A, the consistency and
quality of the products can help build brand acceptance and attract new
customers.
• The foundation of Chick-Fil-A’s menu is the chicken sandwich. Chick-Fil-A
recently added to their menu, including the first change to the original chicken
sandwich recipe, the spicy chicken sandwich.
• Chick-Fil-A is heavily involved with the sponsorship of college athletics,
especially college football. The Peach Bowl was recently renamed the Chick-Fil-
A Bowl. Chick-Fil-A will have many successful advertising opportunities during
the college football bowl season.
Threats
• Chick-Fil-A originated in the South, but has begun to spread outwards to reach
more customers. However, Chick-Fil-A’s primary competitors, KFC and
Popeye’s, were also originated in the South. Both of these companies maintain
strong brand loyalty among customers in the southern region. Also, Chick-Fil-A
)
and its primary competitors will likely be expanding in a similar direction, so
there will be increased competition throughout the market.
• Chick-Fil-A’s primary and secondary competitors offer menus that include
chicken, but also offer other options. The expansion of competitor’s menus,
along with the introduction of products that are very similar to Chick-Fil-A could
possibly make Chick-Fil-A’s menu look very limited to consumers.
• If franchise policies are not followed by the franchises, it could devalue the brand
and damage the image of the company.
KFC
Strengths
• They have the most market share of the chicken restaurant market.
• They use many different types of advertising vehicles that many other competitors
do not.
• They are innovative due to their release of new reusable containers.
Weaknesses
• Although it is the top holder of the chicken restaurant market it does not appeal to
all regions of the U.S.
• Its menu is very specific.
Opportunies
• They have grilled chicken and give people healthier options to those who choose
them.
• They can dominate the chicken restaurant industry if they apply advertising
strategies successfully.
Threats
• Other markets recognize their standing in the market and have high competition.
• They utilize too many advertising dollars on too many products at the same time.
Popeyes
Strengths
• Popeyes has different menu items that directly relate to Louisiana, where they
first started.
• According to Figure 1.1, Popeyes utilizes their advertising dollars efficiently.
They have spent the least amount of money for advertising in media outlets but
continue to remain a strong competitor in the market.
• Popeyes has already expanded out of the South and into the mid-western region of
the U.S. and have targeted males and females equally.
Weaknesses
• It still holds the smallest portion of the market share compared to Chick-Fil-A and
KFC.
• KFC is expressed as a very southern regional food. It is harder for them to attract
the general population of the U.S.
Opportunities
*
• A Popeyes offer shrimp po’boys on their menu, something that Chick-Fil-A or
KFC does not which allows them to tap into the seafood market not just the
chicken market.
Threats
• It could be hard for them to expand to other regions of the U.S. because they
advertise themselves as specifically Louisiana food.
• People with brand loyalty to places like KFC are harder to sway since they offer
almost the same products.
Burger King
Strengths
• Burger King offers flame broiled burgers where no other places offer them
including big chain places like McDonalds.
• Their advertising style is very aggressive in order to draw in their target audience.
• They cross advertise with movie studios to promote new and upcoming movies
and have very interactive promotional tools such as sweepstakes, etc.
Weakness
• Burger King is more of a burger oriented place; they do not offer a wide variety of
chicken products like other chicken restaurants do.
• They do not have very much expansion into the western region of the U.S. and
they do not appeal to healthy eaters.
Opportunities
• They have developed a new breakfast menu that may allow their consumer
growth to expand.
• They have room to grow in order to appeal to healthy eaters.
Threats
• McDonalds still controls a huge portion of the market share and are more
sensitive to consumer needs.
• Brand loyalty is an issue because McDonalds is such a dominating market.
Sonic
Strengths
• They are the only real known Drive-In fast food restaurant where food is
delivered by carhops.
• They are only restaurant of the top burger chain competitors that offer hot dogs,
an extensive drink menu and other arrays of items.
• They appeal to every age group, 18-64.
Weakness
• They do not have a trademark menu item. Their menu may be too expensive for
some people.
• They offer minimal dining in areas. Some people may not want to eat in their
cars.
• They are not popular in any other region except the South.
Opportunities
• They have the ability to specialize in a category of food such as drinks or desserts.
• They can credit themselves more for being a drive in fast food restaurant.
Threats
"+
• If they decided to expand they would struggle since their brand does not flourish
in other regions of the country besides the South.
Marketing Objectives
We plan to increase Chick-Fil-A’s market share from 20% of the fast food chicken
market to 25% of the market by the end of our expansion to the northeast region of the U.S. We
choose a 5% increase so that Chick-Fil-A has a large lead over Popeye’s in market shares, and
absorbs some of KFC’s market share. Chick-Fil-A has had much success in the South. Chick-
Fil-A must increase reach to attract new customers in new areas of the country. Also, while
increasing reach, Chick-Fil-A must also increase frequency. Chick-Fil-A must increase
frequency to compete with KFC and Popeye’s locally, and to raise brand awareness and try to
build brand loyalty with new customers in the market. To become a primary competitor, for fast
food giants like McDonald’s and Burger Kind, we need to expand our reach out of the South and
into the untapped market of the Northeastern U.S.
Marketing Mix Strategy
Product:
Chick-Fil-A will not undergo any physical changes as part of reaching our market
objectives. Our product performs well in our category of fast food chicken, ranking number two
in the market share. However, we want to place more emphasis on the advertising of our more
nutritional products such as the Chick-Fil-A Chargrilled Salad and Cool Wraps. In addition to
our healthy offerings, we want to place emphasis on the catering services with large trays of
menu items for events such as tailgating, parties, and other social gatherings.
Price:
We decided not to decrease or increase the prices of Chick-Fil-A products. Although our
prices are slightly higher than our competitors, we feel that the price difference separates us from
the other products in the market. We focus on the quality and taste of our food; therefore, the
prices of our products display an accurate representation of what Chick-Fil-A offers its
consumers. If Chick-Fil-A were to decrease its prices, we fear that the consumers will assume
that our quality has also decreased. By keeping our prices the same, we are able to continue to
reach our target audience.
Place:
""
Chick-Fil-A serves its communities through freestanding buildings with drive-through
lanes. Stores are beginning to expand their single drive-through lanes into double drive-through
lanes in an attempt to serve more consumers at a faster rate. Chick-Fil-A can also serve its
communities in malls, schools and airports. We plan to establish more stores, especially in the
Northeast, in order to reach more of our target audience.
Promotion:
We plan to promote our healthier meal options and catering trays by continuing to
advertise through our top media outlet of network television. We want to take a more offensive
approach in our television ads. We plan to compare ourselves to our competitors on a deeper
level by emphasizing some of our distinct features that we think will help place us at the top of
our market. We want to do so by creating more television ads that feature consumers choosing
Chick-Fil-A over our competitors because of our healthier choices, including emphasis on our
removal of all artificial trans fats from our menus and condiments. Our plan to emphasize our
party platters for social events can also be used through the offensive strategy. We can promote
these features while continuing to use our “eat more chikin” award winning -ad campaign. The
cows will incorporate and compare each feature to our competitors in a humorous, yet direct way
that will show consumers why we are better.
We also plan to increase our sponsorship events. We want to promote more sports related
events in hopes of attracting our target audience. Our plan is to increase Chick-Fil-A advertising
during basketball games. Basketball is a commonly liked sport in the northeast. While we
currently sponsor the Big 12 Conference in college football which is primarily Southeastern
based, we can now attract our Northeastern target audience through basketball. By sponsoring
college basketball events and college football events, we can reach a larger audience. Sponsoring
sporting events gives us the opportunity to promote our tailgating and social event catering trays.
Social networking is also essential for our promotion. Chick-Fil-A has a Facebook page
that can be accessed through www.facebook.com/ChickfilA. This social outlet is continuing to
grow in our society, which is why we need to continue our efforts to connect with our consumers
over the web. Chick-Fil-A’s page consists of 3,114,978 people that have become friends with the
company, giving them access to the menu, new-featured menu items and the opportunity to
become a Chick-Fil-A Email Insider. A new feature to the Facebook page offers Chick-Fil-A
online ordering at select locations. Consumers now have the opportunity to order their meal
online. As we continue to promote our online page, the online ordering system will greatly
expand.
Target Selection
"#
Chick-Fil-A holds 20% of the chicken restaurant market share. Our current target
audience reaches females (index 141) who are within the age range of 18-44 (average index 117)
who live in the Southern region of the U.S. Of this group of women are mostly of African
American (index 150), Asian (index 152), and not Black or White (index 118). Those women
who have children are 11% more likely to eat at Chick-Fil-A.
Since it is our goal to now expand into the northeastern region of the U.S., our target
audience is taken under consideration while viewing Chick-Fil-A users who live in this region.
With an index number of 102 for males in the Northeast, and an index number of 98 for females
in the Northeast, we want to reach both genders. These males and females are within the age
range of 25-54 (average index 133). We chose to specify the race of our target audience to
African Americans (index 196), and some other race (index 106) who are not White, Asian, or
not Black or White. In or target audience, those who have children are 28% more likely to buy
Chick-Fil-A.
Our new target audience enjoys spending time with family (index 105). They also buy
from companies who sponsor sports teams (index 155) and agree that lunch is more important
than breakfast or dinner (index 113). Also, this target audience agrees that nutritional value is
most important in a meal (index 115).
Target Audience- Primary Competitors
KFC
KFC currently holds 30% of the chicken restaurant market share. Since it is the top
competitor of this market, KFC is good primary competition for Chick-Fil-A. Choices 3
information shows that KFC’s target audience reaches females (index 110) who are within the
age range of 18-64 (average index 110) and who live in the southern region of the United States
(index 131). In terms of race, females who live in the southern region of the U.S. and are within
the ages of 18-64, are of African American (index 181), Asian (index 130) and not Black or
White (103) descent. Of this group of women those with children are 7% more likely to buy
Chick-Fil-A.
Popeyes
Popeyes holds 10.2% of the chicken restaurant market share. Although Chick-Fil-A has a
higher share than Popeyes, they remain a strong primary competitor since Popeyes has expanded
their market out of the South and into the Midwest, an advantage that Chick-Fil-A has yet to
achieve. Popeyes’ target audience reaches both males (index 100) and females (100) who fall
within the 18-24; 35-54 (average index 115) age range. These males and females are targeted in
the mid-western (index 103) and southern (index 125) Regions of the U.S. Of this group of
people, African Americans (index 221), Asians (index 328) and those not Black or White (index
178) are more likely to buy Popeyes. Those who do not have children are 2% more likely to eat
Popeye’s.
Target Audience- Secondary Competitors
"$
Burger King
Burger King is one of Chick-Fil-A’s secondary competitors. Burger King is a good
secondary competitor because it holds 13.9% of the top burger chains market, making it the
second highest competitor in that market. These statistics are similar to those of Chick-Fil-A’s
which has a market share of 13% and that is also the second largest competitor in its category.
Another reason Burger King is a good secondary competitor is because they have already
expanded into the northeastern region of the U.S., the same region we are interested in expanding
to. Burger King’s target audience includes males (index 111) who are within the ages of 18-24;
35-54 (average index 107), live in the northeastern (index 127) and southern (index 112) regions
of the U.S. and are African American (index 128) and some other race (index 107) that is not
Asian, White, or not Black or White. Of this target audience those who have children are 7%
more likely to buy Burger King.
Sonic
Sonic is another one of Chick-Fil-A’s secondary competitors. Sonic consumes 5.5% of
the top burger chains market, and is the fifth largest competitor in its market. Like Chick-Fil-A,
Sonic targets females (index 123) living in the southern region (index 209) of the U.S. The
females targeted are within the 18-64 (average index 110) age range and are either White (index
105), Asian (index 100), not Black or White (index 100) or some other race (index 100). Those
who have children in this target audience are 5% more likely to eat at Sonic. Sonic also makes a
good secondary competitor because they have potential to expand out of the South since their
index numbers are so high for their current target audience.
doc_350327965.pdf
Chick-Fil-A is known for its production of chicken products in the chicken restaurant industry. The company has been widely recognized across the southern region of the United States which is promising.
"#$%&$#'(&) *(&)+,#, &(- .&/01$#(2
"$/&$12+
.&/+ .1#,$1/3 455& 6&/01/3 7188 ")&%29$1/3 7&
+( ;(-1/)('
Product Life Cycle (PLC)
Chick-Fil-A is in the Growth stage of the Product Life Cycle. One main reason that
Chick-Fil-A is in the Growth stage is because of the company’s continuous growth in sales.
Chick-Fil-A has kept a steady increase in sales since 1967, when the first Chick-Fil-A
restaurant was opened. Over the course of the next 33 years, the company maintained the growth
in sales and reached $1 billion in annual sales in the year 2000. Over the last decade, Chick-Fil-
A has seen a rapid increase in sales, surpassing $2 billion in 2006. In 2009, with an 8.6%
increase from the previous year’s sales, Chick-Fil-A’s annual sales rose to over $3 billion. The
rapid and constant increase of sales shows that Chick-Fil-A is doing well in the Growth stage of
the PLC.
Along with an increase in sales, Chick-Fil-A’s number of restaurants has continued to
rise each year. Chick-Fil-A is a chain restaurant, which can be beneficial in the Growth stage.
Chick-Fil-A offers its food products at reasonable and fair prices, and same-store sales increased
by 2.5% from 2008 to 2009. Also, the Chick-Fil-A company owns most of its restaurants, but
licenses the restaurants out to franchises for a fixed annual income supplemented by a share of
the in-store sale’s profit. This concept allows stores to open at a lower cost and attracts a higher
number of franchises, resulting in the spread and growth of Chick-Fil-A restaurants. By adding
these new stores, Chick-Fil-A can increase reach and frequency, which is a main goal during the
Growth stage.
Chick-Fil-A is steadily expanding and the company is second to KFC in chicken
restaurant market shares. Chick-Fil-A has a strong competition with KFC and Popeye’s, and
must also compete with new companies joining the market. Additionally, Chick-Fil-A faces
competition from restaurants such as Burger King and Sonic in the overall fast-food market. To
maintain growth, Chick-Fil-A must aim to increase market share in both markets. The company
is adding products to the menu and expanding store locations to help increase sales and market
share during the Growth stage of the PLC.
(
Chick-Fil-A: Marketing Strategy
SWOT (Strength, Weakness, Opportunity, and Threat) Analysis
Chick-Fil-A
Strengths
• Chick-Fil-A is very well known for having such a good chicken sandwich, which
differentiates them from competitor’s whose brands are centered on plain chicken.
• The Chick-Fil-A Cow’s advertising campaign has become popular and has built
recognition among chicken restaurants and differentiation compared to fast food
chains that serve beef or burgers.
• Chick-Fil-A has had a continuous increase in annual sales over its entire lifespan.
• Chick-Fil-A holds the second largest market share in the chicken restaurant
market.
Weaknesses
• According to a tradition that started with the first Chick-Fil-A restaurant, Chick-
Fil-A is not open on Sundays. This guarantees that every Chick-Fil-A in the
nation is closed for 52 days out of the year in addition to observed holidays. Not
only does this directly affect sales, but it can potentially decrease brand
acceptance and recognition.
• During lunch-serving hours, every meal is chicken. Chick-Fil-A offers salads and
different sides during the day, and it offers meals that include bacon, ham, and
sausage during breakfast hours. Customers may feel like they are limited in their
choices and those that want something besides chicken are forced to order a side
item or go to another restaurant.
• Chick-Fil-A started and grew in the South. While the company is expanding, it is
still heavily concentrated in the South. Chick-Fil-A’s presence in the western and
and mid-western regions is very little to none at all.
Opportunities
• Chick-Fil-A is a franchise. This means that there are opportunities for individuals
in every part of the nation to open restaurants. This will increase reach and
frequency for the company. Also, because all of Chick-Fil-A’s franchises are still
run under certain rules and restrictions set by Chick-Fil-A, the consistency and
quality of the products can help build brand acceptance and attract new
customers.
• The foundation of Chick-Fil-A’s menu is the chicken sandwich. Chick-Fil-A
recently added to their menu, including the first change to the original chicken
sandwich recipe, the spicy chicken sandwich.
• Chick-Fil-A is heavily involved with the sponsorship of college athletics,
especially college football. The Peach Bowl was recently renamed the Chick-Fil-
A Bowl. Chick-Fil-A will have many successful advertising opportunities during
the college football bowl season.
Threats
• Chick-Fil-A originated in the South, but has begun to spread outwards to reach
more customers. However, Chick-Fil-A’s primary competitors, KFC and
Popeye’s, were also originated in the South. Both of these companies maintain
strong brand loyalty among customers in the southern region. Also, Chick-Fil-A
)
and its primary competitors will likely be expanding in a similar direction, so
there will be increased competition throughout the market.
• Chick-Fil-A’s primary and secondary competitors offer menus that include
chicken, but also offer other options. The expansion of competitor’s menus,
along with the introduction of products that are very similar to Chick-Fil-A could
possibly make Chick-Fil-A’s menu look very limited to consumers.
• If franchise policies are not followed by the franchises, it could devalue the brand
and damage the image of the company.
KFC
Strengths
• They have the most market share of the chicken restaurant market.
• They use many different types of advertising vehicles that many other competitors
do not.
• They are innovative due to their release of new reusable containers.
Weaknesses
• Although it is the top holder of the chicken restaurant market it does not appeal to
all regions of the U.S.
• Its menu is very specific.
Opportunies
• They have grilled chicken and give people healthier options to those who choose
them.
• They can dominate the chicken restaurant industry if they apply advertising
strategies successfully.
Threats
• Other markets recognize their standing in the market and have high competition.
• They utilize too many advertising dollars on too many products at the same time.
Popeyes
Strengths
• Popeyes has different menu items that directly relate to Louisiana, where they
first started.
• According to Figure 1.1, Popeyes utilizes their advertising dollars efficiently.
They have spent the least amount of money for advertising in media outlets but
continue to remain a strong competitor in the market.
• Popeyes has already expanded out of the South and into the mid-western region of
the U.S. and have targeted males and females equally.
Weaknesses
• It still holds the smallest portion of the market share compared to Chick-Fil-A and
KFC.
• KFC is expressed as a very southern regional food. It is harder for them to attract
the general population of the U.S.
Opportunities
*
• A Popeyes offer shrimp po’boys on their menu, something that Chick-Fil-A or
KFC does not which allows them to tap into the seafood market not just the
chicken market.
Threats
• It could be hard for them to expand to other regions of the U.S. because they
advertise themselves as specifically Louisiana food.
• People with brand loyalty to places like KFC are harder to sway since they offer
almost the same products.
Burger King
Strengths
• Burger King offers flame broiled burgers where no other places offer them
including big chain places like McDonalds.
• Their advertising style is very aggressive in order to draw in their target audience.
• They cross advertise with movie studios to promote new and upcoming movies
and have very interactive promotional tools such as sweepstakes, etc.
Weakness
• Burger King is more of a burger oriented place; they do not offer a wide variety of
chicken products like other chicken restaurants do.
• They do not have very much expansion into the western region of the U.S. and
they do not appeal to healthy eaters.
Opportunities
• They have developed a new breakfast menu that may allow their consumer
growth to expand.
• They have room to grow in order to appeal to healthy eaters.
Threats
• McDonalds still controls a huge portion of the market share and are more
sensitive to consumer needs.
• Brand loyalty is an issue because McDonalds is such a dominating market.
Sonic
Strengths
• They are the only real known Drive-In fast food restaurant where food is
delivered by carhops.
• They are only restaurant of the top burger chain competitors that offer hot dogs,
an extensive drink menu and other arrays of items.
• They appeal to every age group, 18-64.
Weakness
• They do not have a trademark menu item. Their menu may be too expensive for
some people.
• They offer minimal dining in areas. Some people may not want to eat in their
cars.
• They are not popular in any other region except the South.
Opportunities
• They have the ability to specialize in a category of food such as drinks or desserts.
• They can credit themselves more for being a drive in fast food restaurant.
Threats
"+
• If they decided to expand they would struggle since their brand does not flourish
in other regions of the country besides the South.
Marketing Objectives
We plan to increase Chick-Fil-A’s market share from 20% of the fast food chicken
market to 25% of the market by the end of our expansion to the northeast region of the U.S. We
choose a 5% increase so that Chick-Fil-A has a large lead over Popeye’s in market shares, and
absorbs some of KFC’s market share. Chick-Fil-A has had much success in the South. Chick-
Fil-A must increase reach to attract new customers in new areas of the country. Also, while
increasing reach, Chick-Fil-A must also increase frequency. Chick-Fil-A must increase
frequency to compete with KFC and Popeye’s locally, and to raise brand awareness and try to
build brand loyalty with new customers in the market. To become a primary competitor, for fast
food giants like McDonald’s and Burger Kind, we need to expand our reach out of the South and
into the untapped market of the Northeastern U.S.
Marketing Mix Strategy
Product:
Chick-Fil-A will not undergo any physical changes as part of reaching our market
objectives. Our product performs well in our category of fast food chicken, ranking number two
in the market share. However, we want to place more emphasis on the advertising of our more
nutritional products such as the Chick-Fil-A Chargrilled Salad and Cool Wraps. In addition to
our healthy offerings, we want to place emphasis on the catering services with large trays of
menu items for events such as tailgating, parties, and other social gatherings.
Price:
We decided not to decrease or increase the prices of Chick-Fil-A products. Although our
prices are slightly higher than our competitors, we feel that the price difference separates us from
the other products in the market. We focus on the quality and taste of our food; therefore, the
prices of our products display an accurate representation of what Chick-Fil-A offers its
consumers. If Chick-Fil-A were to decrease its prices, we fear that the consumers will assume
that our quality has also decreased. By keeping our prices the same, we are able to continue to
reach our target audience.
Place:
""
Chick-Fil-A serves its communities through freestanding buildings with drive-through
lanes. Stores are beginning to expand their single drive-through lanes into double drive-through
lanes in an attempt to serve more consumers at a faster rate. Chick-Fil-A can also serve its
communities in malls, schools and airports. We plan to establish more stores, especially in the
Northeast, in order to reach more of our target audience.
Promotion:
We plan to promote our healthier meal options and catering trays by continuing to
advertise through our top media outlet of network television. We want to take a more offensive
approach in our television ads. We plan to compare ourselves to our competitors on a deeper
level by emphasizing some of our distinct features that we think will help place us at the top of
our market. We want to do so by creating more television ads that feature consumers choosing
Chick-Fil-A over our competitors because of our healthier choices, including emphasis on our
removal of all artificial trans fats from our menus and condiments. Our plan to emphasize our
party platters for social events can also be used through the offensive strategy. We can promote
these features while continuing to use our “eat more chikin” award winning -ad campaign. The
cows will incorporate and compare each feature to our competitors in a humorous, yet direct way
that will show consumers why we are better.
We also plan to increase our sponsorship events. We want to promote more sports related
events in hopes of attracting our target audience. Our plan is to increase Chick-Fil-A advertising
during basketball games. Basketball is a commonly liked sport in the northeast. While we
currently sponsor the Big 12 Conference in college football which is primarily Southeastern
based, we can now attract our Northeastern target audience through basketball. By sponsoring
college basketball events and college football events, we can reach a larger audience. Sponsoring
sporting events gives us the opportunity to promote our tailgating and social event catering trays.
Social networking is also essential for our promotion. Chick-Fil-A has a Facebook page
that can be accessed through www.facebook.com/ChickfilA. This social outlet is continuing to
grow in our society, which is why we need to continue our efforts to connect with our consumers
over the web. Chick-Fil-A’s page consists of 3,114,978 people that have become friends with the
company, giving them access to the menu, new-featured menu items and the opportunity to
become a Chick-Fil-A Email Insider. A new feature to the Facebook page offers Chick-Fil-A
online ordering at select locations. Consumers now have the opportunity to order their meal
online. As we continue to promote our online page, the online ordering system will greatly
expand.
Target Selection
"#
Chick-Fil-A holds 20% of the chicken restaurant market share. Our current target
audience reaches females (index 141) who are within the age range of 18-44 (average index 117)
who live in the Southern region of the U.S. Of this group of women are mostly of African
American (index 150), Asian (index 152), and not Black or White (index 118). Those women
who have children are 11% more likely to eat at Chick-Fil-A.
Since it is our goal to now expand into the northeastern region of the U.S., our target
audience is taken under consideration while viewing Chick-Fil-A users who live in this region.
With an index number of 102 for males in the Northeast, and an index number of 98 for females
in the Northeast, we want to reach both genders. These males and females are within the age
range of 25-54 (average index 133). We chose to specify the race of our target audience to
African Americans (index 196), and some other race (index 106) who are not White, Asian, or
not Black or White. In or target audience, those who have children are 28% more likely to buy
Chick-Fil-A.
Our new target audience enjoys spending time with family (index 105). They also buy
from companies who sponsor sports teams (index 155) and agree that lunch is more important
than breakfast or dinner (index 113). Also, this target audience agrees that nutritional value is
most important in a meal (index 115).
Target Audience- Primary Competitors
KFC
KFC currently holds 30% of the chicken restaurant market share. Since it is the top
competitor of this market, KFC is good primary competition for Chick-Fil-A. Choices 3
information shows that KFC’s target audience reaches females (index 110) who are within the
age range of 18-64 (average index 110) and who live in the southern region of the United States
(index 131). In terms of race, females who live in the southern region of the U.S. and are within
the ages of 18-64, are of African American (index 181), Asian (index 130) and not Black or
White (103) descent. Of this group of women those with children are 7% more likely to buy
Chick-Fil-A.
Popeyes
Popeyes holds 10.2% of the chicken restaurant market share. Although Chick-Fil-A has a
higher share than Popeyes, they remain a strong primary competitor since Popeyes has expanded
their market out of the South and into the Midwest, an advantage that Chick-Fil-A has yet to
achieve. Popeyes’ target audience reaches both males (index 100) and females (100) who fall
within the 18-24; 35-54 (average index 115) age range. These males and females are targeted in
the mid-western (index 103) and southern (index 125) Regions of the U.S. Of this group of
people, African Americans (index 221), Asians (index 328) and those not Black or White (index
178) are more likely to buy Popeyes. Those who do not have children are 2% more likely to eat
Popeye’s.
Target Audience- Secondary Competitors
"$
Burger King
Burger King is one of Chick-Fil-A’s secondary competitors. Burger King is a good
secondary competitor because it holds 13.9% of the top burger chains market, making it the
second highest competitor in that market. These statistics are similar to those of Chick-Fil-A’s
which has a market share of 13% and that is also the second largest competitor in its category.
Another reason Burger King is a good secondary competitor is because they have already
expanded into the northeastern region of the U.S., the same region we are interested in expanding
to. Burger King’s target audience includes males (index 111) who are within the ages of 18-24;
35-54 (average index 107), live in the northeastern (index 127) and southern (index 112) regions
of the U.S. and are African American (index 128) and some other race (index 107) that is not
Asian, White, or not Black or White. Of this target audience those who have children are 7%
more likely to buy Burger King.
Sonic
Sonic is another one of Chick-Fil-A’s secondary competitors. Sonic consumes 5.5% of
the top burger chains market, and is the fifth largest competitor in its market. Like Chick-Fil-A,
Sonic targets females (index 123) living in the southern region (index 209) of the U.S. The
females targeted are within the 18-64 (average index 110) age range and are either White (index
105), Asian (index 100), not Black or White (index 100) or some other race (index 100). Those
who have children in this target audience are 5% more likely to eat at Sonic. Sonic also makes a
good secondary competitor because they have potential to expand out of the South since their
index numbers are so high for their current target audience.
doc_350327965.pdf