Chick-Fil-A Marketing Audit Project

Chick-fil-a Marketing Audit Project

Jillian Hunt

06/23/2016

Belhaven University- BUS 320

Introduction
Chick-fil-a is a restaurant chain, more specifically a fast food restaurant chain. They are equipped with all features specific to their business type such as drive-thru windows, shorter turnaround time on orders, a dining area, etc. The company got its start when Truett Cathy, along with his brother, opened a restaurant called The Dwarf House. The notable six day work week was established early on; not only were the Cathy’s a strong Christian family, Truett gave a speech in 1998, stating that partial reasoning behind the six days was pure rest! They were often exhausted and needed a day to relax, as they were open 24

hours in the early days. In 1964 Truett began to experiment with the chicken fillet sandwich. After many tries, he settled on a chicken breast, spiced fried in a pressure cooker with peanut oil, served with pickles. The first “walk up” Chick-fil-a was established in 1967 in Atlanta’s Greenbriar Mall. In 1982, the corporate office opened in Atlanta, GA. The first full service Chick-fil-a, which included a dining area, opened in Jonesboro, GA and was officially named Chick-fil-A Dwarf House. The first restaurant as we know it today was later opened in 1986, also in Atlanta. The ever popular “Eat Mor Chikin” billboard campaign launched in 1995, along with the introduction of chicken strips to restaurants.
Organizational Mission
As quoted from their website, Chick-fil-A’s mission is to “"To glorify God by being a faithful steward of all that is entrusted to us. To have a positive influence on all who come in contact with Chick-fil-A." This is a company who truly embodies the message they are trying to portray. Along with its dedication to a Christian lifestyle, Chick-fil-a has taken many strides to ensure that their public service goes above and beyond. From employee training to corporate giving, they have become the leader in faith based fast food restaurants. They are well known for their dedication to the customer and their ability to act in their best interest. As they continue to be closed on Sundays to allow time for worship and family time, they also invest time, money, and support in their front line staff. This is a vital process because as we know, proper restaurant employee service to patrons in essential for the longevity of any restaurant. Chick-Fil-A has been known to adhere to the request of its customers. In fact, the development of several of its most popular menu items came into fruition after the suggestion from frequent customers. Because they have managed to consistently meet demands, customers feel as though they are valued.
Objectives
Beginning with the establishment of The Rock Ranch, a 1500 working cattle ranch, in 1989, Chick-Fil-A has been dedicated to “growing healthy families”. They chicken comes sourced only from USDA inspected and approved facilities and are frequently routinely inspected. They are committed to high quality ingredients and will only form contracts with chicken suppliers who rise to those standards. Their guidelines are strict when it comes to the treatment of their animals and the proper nutritional practices they follow. Chick-Fil-A’s main objectives have always been quite simple: to serve the customer while also serving God. They have not been shy about this; whether it has been positive or negative, it is much publicized that this company will stand behind its religious values. Simple as it may be, there are many factors that come into play. First, Chick-Fil-A is known for its dedication to customer service. This has served them very well, as service can weigh as much as the food when someone is choosing whether to patronize your establishment or not. Even when they take religious stands against heated and controversial topics, they continue to increase sales. In fact sales seem to go up because customers who share in Chick-Fil-A’s values respect a company who is willing to stand up for what they believe. According to SMART, Chick-Fil-A has been specific in their goals, they have been actionable, they have been realistic and measurable not only by the company but by customers and the public in general. Their commitment and focus on customer satisfaction goes hand and hand with their ability to increase revenue and customer numbers on a consistent basis.
Situation Analysis
Chick-Fil-A’s SWOT analysis has outlined several advantages they have over similar competing franchises:
• They have established themselves as a honest and reputable brand
• Continues revenue growth ( have not been in the red on any financial reports)
• Their stock value steadily increases
• Have solidified their relationship with the public and widely grown their fan base with “Eat mor Chikin” campaign
• High success rates with food taste and introduction of new products
• 2nd largest market share in their Market (chicken restaurant)
These benefits are sustainable for several reasons.

First, Chick-Fil-A is pretty much unrivaled in their signature sandwich. Of course most fast food chains serve some form of a chicken sandwich, but none have been out up against Chick-Fil-A’s and won in any public survey. Second, many competitors simply lack the desire to dedicate themselves to public service as they have. We know as Christians, God requires that we serve our brother with a glad heart. With Chick-Fil-A being a Christian based company, they have a moral commitment to this that other main competitors have not. Very few companies can say that have had a steady rise in both revenue and market share value over the entire history of the company. Their focus on the customer has gained them an immense amount of public loyalty, something that can be very difficult to oppose for competing chains.
Internal Strengths and Weaknesses
Chick-Fil-A has continued to turn a substantial profit every year since they opened their doors. Although the per-store gross fluctuates, Chick-Fil-A has never endured a fiscal year in its history in which they ended in the red. This company has over 6 billion in system wide sales & more than 2000 stores, making it the US’ largest fast food chicken chain. Chick-Fil-A stores located in malls generate average annual sales of $1,200,000 to 1,700,00 , while non mall free standing operations made between $3,600,00 and

4,400,00.

Although KFC has more than double the locations of Chick-Fil-A, this mattered very little in gross profit, with Chick-Fil-A grossing 5 billion to KFC’s 4.2. Being one of the top grossing fast food chains, Chick-Fil-A’s finances and assets are definitely among its top primary resources. As a franchised business, they receive thousands of franchise proposals from perspective owners each year to fill only an estimated 140-160 slots The process is rigorous and not as focused on the financial portion as you may think. Of course it is important to have the money available to invest in the franchise, but Chick-Fil-A is also just as concerned with the morality of its operators. They personally sit down with perspectives, their families, and others who may give them insight into your background. They like to ensure their affiliates mirror Chick-Fil-A’s corporate views. The company extends this all the way down to those looking to work in the chains as cashiers, cooks, etc. It would be impossible to maintain the excellent customer service track record.
External Opportunities and Threats
Chick-Fil-A not only encourages its employees to embrace spirituality, they are given a guaranteed day to be able to do so. Although they are a Christian based company, they do not discriminate, hiring employees from all different walks of life. They have worked diligently to obtain their place on almost every top fast food list in a variety of topics Proverbs 6:6-8 says, “Go to the ant, O sluggard, Observe her ways and be wise, Which, having no chief, Officer or ruler, Prepares her food in the summer And gathers her provision in the harvest.” You must be wise and diligent to run a successful business. Chick-Fil-A has equipped its team with the resources they need in order to perform their best. They have invested in their employees and in turn, their employees feel valued and respected. Colossians 3:23 says "And whatsoever ye do, do it heartily, as to the Lord, and not unto men." Titus 2:7 says “Show yourself in all respects to be a model of good works, and in your teaching show integrity, dignity.” Chick-Fil-A incorporates the essence of this scriptures in its own purpose, “"To glorify God by being a faithful steward of all that is entrusted to us.” Not only are we do well while making attempting to make a business profit, we are instructed to be wise in the delegation of those funds.
Marketing Strategy
Chick-Fil-A is a family style restaurant, so you will often find quite a mix of persons inside their establishments. However, research shows that the primary target audience reaches females within the age range of 18-44 who live in the southern region of the U.S. Chick-Fil-A has segmented their market by providing potential franchisers with target areas for their operations. On their website, they have established a map with target areas that have potential markets for Chick-Fil-A and their affiliates. The target markets have been set for the next 12-24 months and are viewable by anyone who may have an interest through the website. This company has taken great strides to meet all segments with quality from those who like the traditional southern fried chicken of their classic sandwich to those who prefer a healthier lifestyle with their salads, grilled chicken, and most recently kale superfood side.
Although there are a host of chains that sell a chicken sandwich, none quite rival Chick-Fil-A. Their selection of ingredients, choice chicken, and seasoning technique has truly set them apart. You may be able to compare other chains with each other and find similarities, but you would be hard pressed to find an establishment with a similar sandwich to them. The company has a strong following and brand loyalist frequent their restaurants, contributing greatly to overall sales. However Chick-Fil-A sees a steady rise in new customers on a regular basis. When asked the survey question “Is this your first time visiting a Chick-Fil-A establishment before?” 10/100 responses were yes, 80 were no, and 10 was a first time in several years. This shows that the chain is bringing in roughly 10% new patrons on average. The media has been very involved in both the success and the controversy of Chick-Fil-A. Most notably, the company took a stance on gay marriage and were met with both support and criticism. In the politically correct age we live in today, you would assume this stance would evoke a decline in market share value and profit overall. However Chick-Fil-A saw increase in sales immediately following the press release. Patrons of the establishment are often those who share in their religious values and they are swift to support Chick-Fil-A in its endeavors.
Marketing Mix
1. Customer Solution - Product
Chick-Fil-A’s main product of course the classic chicken sandwich. They also offer a grilled option and a deluxe which includes lettuce, tomatoes and cheese. They also offer a variety of other chicken products such as nuggets and tenders, along with other misc. items like fruit and salads. The remainder of the menu is made of up drinks, milkshakes, and dessert items. Chick-Fil-A is yet in its growth phase, as it is constantly and consistently rising in profits. Products such as the nuggets or sandwich are established and bring in regular profits. However, products such as the new kale superfood side are yet in the experimental phase as its potential success in the market is still being evaluated. Customer service is Chick-Fil-A’s most notable asset. They are constantly conducting research on the satisfaction of their patrons and making plans to enhance customer experience.
2. Convenience – Place (Distribution)
Chick-Fil-A has a strategic plan when it comes to the locations of its facilities. Research is done on target markets for months before a franchise opportunity is offered in any specific region. As mentions previously, Chick-Fil-A is very open with the public in reference to its potential locations. Prospect regions are being considered currently for up to the next two years. Their main distribution is of course the brick and mortar stores along with mall locations. Chick-Fil-A does however have several other methods of distribution, from catering to several specialty restaurants including a 50s style restaurant.
Chick-Fil-A has held true to its Christian views and have not compromised them nor their integrity for the sake of a profit. This commitment has worked greatly in their behalf, as they are among the small margin of fast food restaurant retailers who has never seen a period in negative sales. Their locations bring a steady and continuous flow on income due to the virtually incomparable consistent care of the customers the sourcing of quality products.

References

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