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MARKETING Chick Fil-A
Transcript of MARKETING Chick Fil-A
Chick-fil-A is starting to bridge the gap between the fast-food and fast-casual segments of the industry. The Industry and Competitive Environment The Industry and Competitive Environment The Industry and Competitive Environment History of the Company Truett and Ben Cathy open the Dwarf Grill in May of 1946.
Truett starts experimenting with chicken and eventually creates the chicken sandwich.
Chick+fillet+A=Chick-fil-A History of the Company The Organization Each unit is a joint-venture between the company and independent operators.
Headquarters is located in Atlanta, Georgia
The company is still owned privately by the Cathy family.
Winshape Camps The chicken sandwich became a licensed product in 1964.
First Chick-fil-A unit opens in the Greenbriar Mall in 1967.
In 1986, Chick-fil-A opens its first freestanding store unit. The Products The Chick-fil-A chicken sandwich.
Healthier sides: fruit cup and salad.
Some new menu items include the milkshakes and chocolate chip cookies. Fast-food industry evolved from the drive-ins started in the late 1940s.
People started becoming more mobile and demanding food that would service this new lifestyle.
Two brothers, Richard and Maurice McDonald started using the assembly-line process to supply food at a faster rate. Today there are 200,000 fast food restaurants in America alone.
While fast food has been extremely successful, it has also added severely to a decrease in peoples' health.
In recent years, the exploitation of fast-food's negative effects has had people demanding healthier options. Menus are now offering healthier options for kids and adults, and some restaurants even show calorie content.
Fast-Casual restaurants are also including healthier options, but with a more relaxed atmosphere; creating a higher dining experience.
Chick-fil-A is bridging the gap between fast-food and fast-casual in that it offers quality food quickly, but with that overall higher dining experience. Industry and the Competitive Environment SWOT Analysis Strengths Gentility to its customers
"Courtesy is cheap, but pays great dividends" -Truett Cathy
Build strong consumer relationships through listening
Owner and Operator Relationship Weaknesses Corporate Marketing budget
McDonald's advertising budget: $2 billion
Lack of focus on public relations
Advertisement blunder Opportunities Conclusions and Recommendations Conclusions Chick-fil-A is a successful company that has maintained strong consumer relationships and built a loyal and respected brand.
Chick-fil-A is a company that has held on to its morals and values since its inception. Recommendations Be more aware of the effect of social media.
Stay consistent despite the challenges they will face in the next few decades. Threats Competition
"Anybody that sells food is a competitor"
Brand may be linked to a political issue
"Nobody is talking about the food" Chick-fil-A’s Marketing Program Unlike most of its competitors, Chick-fil-A focuses on one type of product: chicken
“Keeping it simple allows you to focus on getting it right.” Products Chick-fil-A works hard to maintain a clear image.
Look and feel of the stores
Consistent, modern store layout/design
Always clean and well-maintained
Better job satisfaction Branding Original chicken sandwich: $2.95
What consumers think the products are worth
No “dollar menu”
Such low prices cheapen the product.
Higher prices help support the added quality of Chick-fil-A. Pricing Limited locations
Just over 1,600 locations in the U.S.
More heavily concentrated in the Southeast
Chick-fil-A is very selective of store operators
About 20,000 inquiries each year
Only 65-70 new locations Distribution Closed on Sunday
Fast food is moving towards 24/7
Chick-fil-A is closed on Sunday to give employees time with their families.
Revenue is still above the average. Distribution (cont.) Advertising: Cow campaign
Designed in 1995 by The Richards Group in Dallas, Texas.
Same marketing company used by The Home Depot and The Salvation Army
“Eat mor chikin”
Chick-fil-A can focus on a long-term advertising plan because it does not have to worry about reporting to stockholders. Promotional Mix Advertising: Cow campaign
Calendars Promotional Mix Public Relations
Dan Cathy’s statement about traditional family values created a variety of opinions about the company.
Mike Huckabee: “Chick-fil-A Appreciation Day”
Some respected Cathy’s decision to disclose his beliefs.
Others decided to boycott Chick-fil-A, accusing the entire company of hate.
Tensions should die down in the near future. Promotional Mix Social Networks:
Facebook: 6 million likes
Additional page dedicated to cows
Twitter: 690,000 followers
Official video advertisements
Fan-generated videos (songs) Promotional Mix Social Networks:
Asks fans for suggestions of ways to give during the holiday season.
Shares these ideas and stories with fans on Facebook and Twitter. Promotional Mix Personal Selling
Be Our Guest (BOG) cards
Distributed by management
Provide the recipient with a free sandwich
Voluntary subscription that keeps customers up to date with Chick-fil-A news
Occasional exclusive promotions Promotional Mix "Be Our Guest Cards"
Allows customers to redeem a free menu item
Room to Expand
No Chick-fil-A in 11 states
only 1 in 9 states Truett and his wife Jeannette http://www.personal.psu.edu/users/k/m/kmf5336/essay2.html Original Dwarf House in Hapeville http://www.georgiaencyclopedia.org/nge/Multimedia.jsp?id=m-8298 The Chick-fil-A chicken sandwich http://southernbite.com/2010/06/03/spicy-chicken-sandwich-taste-drive/ Source: http://www.chick-fil-a.com/Press/Map Chargrilled Chicken Sandwich Source: http://www.chick-fil-a.com Chicken Nuggets Source: http://www.chick-fil-a.com Waffle Fries Source: http://www.chick-fil-a.com