- Develop an understanding of key concepts and theories of marketing in order to have the development and execution the marketing strategies.
- Analyse the complexity of the competitive environment and discuss its impact on developing effective marketing decisions & marketing strategies within an organisation.
- Enhance the skills in order to analyse the marketing situations & problems faced by the company and assess its capacity to adapt to a dynamic and uncertain future.
- Develop, recommend & justify, appropriate and actionable marketing strategies & tactics with the company.
INTRODUCTION
Marketing management relates to managing the activities that are related to marketing so that the changing market demand can be analysed and goods and services that can help in achieving maximum customer satisfaction can be produced. It thus involves the processes and plans which can help the company in attracting more customers by the way of advertising, promotions and sales (Al Fahad and et. al., 2015). In this report Chick-fil-a is taken which is an American fast food chain founded in 1967 by S. Truett Cathy. The company earns average revenue of over $4m and has its existence in 48 states of America out of the 50 states. The company is planning on expanding its market in UK so that a large market can be captured and it can become one of the fastest growing fast food chains. In this report the analysis of internal and external business environment will be done using PESTLE and SWOT. Further Porter five forces will also be done so as to determine the competitiveness of industry along with formulation of business strategy so that company can expand in UK market successfully.
MAIN BODY
It is important to audit the market in which expansion of company has to be done so that the internal and external environmental factors that can affect the business can be systematically analysed. It is important for Chick-fil-a to analyse its internal environment along with external business environment which is given below:
Microanalysis
It relates to the analysis of micro environmental factors which affect the operations and functions of business and which can be change and controlled so that efficient decisions can e made. For analysing the micro environment SWOT analysis is done which is strategic management tool that help in determining the internal strengths and weaknesses of business that can help the company in making strategies so that strengths can be used for its advantage while weaknesses can be minimised (Bhandari, 2018).
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Strengths
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Weaknesses
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Opportunities
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Threats
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Macro Analysis
Macro environmental factors are those which cannot be changed or controlled but affect the efficiency of business and its decision making. In order tr analyse the macro environmental factors PESTLE analysis is done which is a tool that helps businesses in analysing the external business environmental factors which affect the operations and strategies of company. It is thus important to analyse these external factors by Chick-fil-a so that it can expand in UK market.
- Political: These are the factors related to governmental rules and regulations like tax rates, trade tariffs etc. UK is usually politically stable which can help Chick-fil-a in expanding its business in the country. However, the uncertainty in Brexit can create problem in its expansion as the trade barriers can become tighter and the supply of raw materials from UK can become difficult (Deepak and Jeyakumar, 2019).
- Economical: These are related to economic conditions of a country like its GDP, unemployment rate etc. As UK is economically strong and the people have high purchasing power they can easily afford products offered by Chick-fil-a. However, due to Brexit the economic conditions of UK is getting affected which will create problems for Chick-fil-a in arranging funds from the market.
- Social: These are related to people of society of a place like their culture, living standard etc. The people in UK have high living standard that can help Chick-fil-a in selling its products at profitable prices. However the increasing consciousness of people towards unhealthy food means that the company can find it difficult to attract customers.
- Technological: It relates to technological advancements and level of R&D in a country. UK is technologically advanced nation that can help Chick-fil-a in having easy and cheap access to innovative techniques that can make work more efficient. However as the customer tastes and preferences keep on changing the company needs to invest in R&D so that they can continue to increase customer experience.
- Legal: These factors are related to the legal structure of country that are to be followed by businesses so that they can work legally and gain the trust of customers. There is a difference in USA and UK laws which means that the company will have to work under the laws of UK so that it can work legally in market. With Brexit the laws of UK can become strict which can affect its business in the country (Grewal and et. al., 2016).
- Environmental: These factors are related to the environmental conditions of a country like availability of resources, water etc. It is important that the environmental conditions of UK are analysed so that food can be kept safe and secure and healthy and safe raw materials like chicken and bread can be acquired to make final products.
Marketing Objectives
It is important that marketing objectives are formed by the businesses so that they can clearly define the targets they have to achieve along with the time within which they have to achieve these targets. It also help all the members related to the company to use the company resources and their skills and abilities to achieve these targets on time. SMART objectives can be formulated by company so that the effectiveness and success of company in market can be increased. Smart objectives are specific, measurable, achievable, and relevant and time oriented. Specific: It relates to what company has to exactly achieve so that clarity can be made about these objectives. Measurable: It means that the objectives that are formed must be such that they can be measured so that improvement and progress of company can be known. Achievable: It means that the objectives must be possible to be achieved and must not be arbitrarily set. Relevant: It means that the objectives must be relevant in such a way that they can help in the progress and growth of company. Time oriented: It means that the objectives must be set within a specified deadline so that work can be continuously done towards achieving them on time. Following are the objectives that are to be achieved by Chick-fil-a through its expansion in UK market:
1) Increase the customer base of the company by 30% within 3 months
Justification: From the above SWOT analysis it can be said that the company can expand in UK market and offer its products to the customers which are high in quality and are prepared by using high end technology (Ramanathan and et. al., 2017). Also the employees of company are highly skilled and continuously aim at improving customer satisfaction that can help it in attracting a large number of customers in UK. Also the external business environment the company can reduce its prices so that a large number of customers can be attracted in UK.
2) Increase loyalty of customers towards company by 10% within 3 months
Justification: The company can use various strategies so that the loyalty of customers towards company can be increased. This can be done by displaying the ingredients that are used by company in preparing food so that customer’s trust regarding the quality of food can be achieved. Also with the help of social media platforms and taking the support of sponsorship of famous personalities of UK the company can gain the loyalty of customers. Also with the help of increased promotions and advertising a strong brand image of company can be built that can help it in attracting more number of customers.
3) The company can introduce healthy fast food items in menu within 6 months
Justification: As the people in UK are becoming more conscious about their health and are attracted towards healthy food it means that the company needs to introduce healthy fast food in its menu so that more number of customers can be attracted by company (Soundar, Micro Macro Assets LLC, 2017). This can be done by including vegetable sandwiches, use of whole grain bread etc. so that people can be provided with healthy food that can help in gaining huge customer satisfaction.
STP strategy
In order to strategically expand in the market it is important that the company use this model so that right target customers can be reached at right place and at right time and help in increasing the sales of company. Following are the stages that are involved in this model:
- Segmentation: It is related with the segmentation or division of large market into smaller segments based on certain characteristics so that the target customers can be identified by the company. For Chick-fil-a to expand its market in an efficient manner the demographics and lifestyle of people are the characteristics based on which it should segment the UK market. This helps the company in determining the market area which can be covered by it where it can offer its products so that the target customers can be reached (Stead and Hastings, 2018).
- Targeting: It is important that after segmentation of market the target customers are selected by the company where it can offer its products. This will include targeting the people who can afford high quality of food and are attracted to the chicken meals that are offered by Chick-fil-a. This is important to be done so that the customers that can help it in increasing its sales can be reached efficiently. The targets chosen by company must be easily accessible so that its products can be reached to the customers and also it must be sufficiently large so that profits can be earned by company.
- Positioning: It is related with positioning the products in market so that target customers can be made aware about the products which are offered by it that can help in increasing its sales. Advertising, promotions etc. can be used by Chick-fil-a so that it can reach to a large number of customers and position its brand in the market so that its sales can increase. In UK the company can position its products by offering its products at low prices so that it can also deal with its competitors like McDonalds, Burger King etc.
Competitor analysis
In order to efficiently expand in the market it is important that the competitors of company present in market are efficiently analysed so that the impact they have on the business can be evaluated so that effective strategies can be formulated to deal with competition. Following are the steps which must be followed in order to analyse competition in market:
- Defining the industry: It relates to identifying the industry of the business which for Chick-fil-a is food and beverage industry. The company offers fast food to its customers and give them fast and high quality services so that the experience of customers can be increased. The company takes the order from customers and prepare the means as per their orders and deliver it to them with high efficiency and following high quality standards (Hua, 2019).
- Determining competitors: There are many competitors f Chick-fil-a in the fast food industry in which it deal like Burger King, McDonald’s, KFC etc. All these restaurants aim at increasing the customer satisfaction by increasing the quality of service and providing the customers with efficiency which increase the competition for the company.
- Determining customers: The customers of these industries who are ready to grab their orders quickly and do not come to spend quality time in these restaurants. Also these people majorly belong to the working class people who try to get fast services and get their food on time. It is thus important that Chick-fil-a improve its customer service so that food can be offered to its customers at fast rate.
- Key success factors of business: The key factors that can help the business in being successful are low price of the meals offered by company, fast service, customer satisfaction etc. It is important that Chick-fil-a identifies these factors so that it can work towards improving them which can help in increasing the success ratio of business in UK (Möller and Halinen, 2018).
- Ranking the key success factors: The success factors must be ranked based on their importance and contribution towards the success of business so that the most important factors can be emphasised on. For chick-fil-a the ranking of these factors can be done as fast delivery of services, high quality of food, customer engagement and so on. These factors must be considered so that they can help in increasing the sales of company so that profitability of company also gets increased.
- Rating of competitors: It is important that the competitors of company are ranked based on the level of threat they pose to the company. McDonalds, KFC, Burger King etc. which are the competitors of Chick-fil-a must be ranked based on the level to which they create competition for the company.
Marketing-mix strategy of company
In order to efficiently expand the business in market it is important that marketing mix strategy is applied by the company so that it can promote its products and services which can help in attracting customers (Mehmet and Clarke, 2016). This strategy must be applied by Chick-fil-a so that it can strategically expand its business so that the target customers can be offered the products and services that can help in enhancing customer satisfaction. It will also help in gaining a competitive advantage in the market by appropriately determining the 7Ps of the marketing mix strategy:
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Basis |
Definition |
Chick-fil-a strategy |
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Product |
These refer to the items or services which are offered by the companies to their customers so that their needs and wants can be satisfied and company can earn huge profits. |
The company deals in fast food industry and offer chicken sandwiches and burgers to their customers along with beverages. High quality chicken meat is used in the preparation of burgers so that high value can be created for its customers. While its expansion in UK the company can modify its products based on the tastes and preferences of customers like including beef meat or red meat in their sandwiches so that more customers can be attracted by company in UK. |
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Price |
It refers to the amount of money that is to be paid by customers so that the company products and services can be availed. Price of items depends on the pricing strategy which is followed by company in order to attract its customers (Gonzalez-Zapatero, Gonzalez-Benito and Lannelongue, 2016). |
The company offers its products at comparatively high prices which means that the company only focus on the premium class of society. It is thus important that economic pricing is used by Chick-fil-a so that its sakes can increase. As the company is expanding its business in UK it is important that it offer its products at low prices and high quality so that a large market can be captured and also a brand image can be established. |
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Promotion |
These are the policies which help in promoting its products in the market so that a large number of customers can be attracted and profits of company can be increased. |
Chick-fil-a can promote its products through advertising on various platforms like social media, print media, promotions and offers etc. so that the customers can be attracted and sales of company can be increased. In order to promote its products in UK market the company can take help of technologies like online marketing, social media etc. so that the target customers can be reached and also it can help in knowing about their tastes and preferences. |
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Place |
It is the place or areas where products of company can be sold so that the target customers can be reached and the company products and services can be made available (Baker, 2016). |
Chick-fil-a offers its products through well-designed outlets which have perfect ambience for its customers so that they can feel welcomed and refreshed. The company also has online delivery facilities where customers can place their orders through their online app and the orders can be delivered at the place of their customers. In UK the company can use the same places to reach to their customers. The outlets must be opened by company at places which are crowded and the working class society and youngsters can be targeted. |
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People |
These are the employees of company who continuously work towards enhancing customer satisfaction by offering high quality of products and services to customers so that their demands can be effectively satisfied. |
Chick-fil-a can hire local people in UK so that the trust of people can be achieved and company can expand its business successfully. It is also important that employee engagement is given high importance so that better relations can be formed with them and their work performance can be improved. The company must give high remuneration to people in UK so that its reputation can increase in market which is beneficial in reaching to its target customers. |
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Process |
It relates to the process which is followed by the company so that they produce the final products and services and make them available to customers (Chang, Wang and Arnett, 2018). |
Chick-fil-a prepares food as per the orders received from their customers and emphasize on giving efficient and fast delivery servicers so that high value can be created for their customers. While expanding in UK the company can follow the same process and offer its customers better ambience in its outlets so that they can become loyal towards the company. |
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Physical evidence |
It relates to everything that can help the customers in making physical contact with the company. |
The physical evidence which is related with Chick-fil-a are the food, ambience of the outlets where they purchase their orders, bills, carry bags etc. In UK it is important that the physical evidences are strategized based on the customers so that they can be highly satisfied with the company products. |
CONCLUSION
From this report it can be concluded that in order to expand the business of company it is important that proper analysis of the business environment is done so that strategies that can help in attracting customers in new market can be formulated. The objectives of company must be clearly determined and SWOT and PESTLE analysis of business must be done which can help it in analysing its capability to achieve its objectives. Competitor analysis is another tool that can be efficiently used so that the competitors present in market and their impact on business can be evaluated so that effective steps can be taken in order deal with the competition. With the use of STP and 7Ps the company can effectively reach to the target customers and increase its sales in the market.
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