CHICKEN TEAM Kristina M.

CHICKEN TEAMKristina M. KasicPatrick Johnson

Bernard

Kanjoma

Erik LarsonRob KilliusRaghad KhamouDragan Kosanovic

AgendaOverview – Kristina KasicSituation Analysis – Raghad Khamou / Dragan KosanovicMarketing Strategy – Rob Killius

Marketing Mix – Bernard

Kanjoma

Financials – Erik LarsonControls – Patrick Johnson

Overview

Company OverviewFounded in 1946 by S. Cathy TruettPrivately held companyExpands through franchisingCurrently operates:1700 + locations39 states, including 1 in Michigan

Product MixBreakfastChicken biscuitsChicken, egg and cheese bagelChicken breakfast burritoLunch / DinnerChicken sandwichChargrilled chicken sandwichChicken strips

Product Mix (cont.)SidesWaffle potato friesFruit cupBreast of chicken soupSalads and WrapsGrilled chicken wrapAsian saladGrilled market salad

Healthy AlternativeMost entrees under 500 caloriesLean frying oilsWheat buns grilled sandwichesLight dressings

Franchise Layout OptionsCompany offers various optionsExpressStand-aloneDrive through onlyAvailable in unique locations:High traffic business buildingsCollege campusesHospitals

ProposalOpen 10 Chick-fil-A locations in Southeast Michigan over 5 yearsYear 1 – University of Michigan and Birch RunYear 2 – Michigan State and Genesys Hospital (Grand Blanc)Year 3 – Detroit Metro Airport and Detroit Medical Center

Year 4 –

Ikea

(Canton) and Lakeside Mall (Sterling Heights)Year 5 – Cabela’s (Dundee) and Great Lakes Crossing (Auburn Hills)

Situational Analysis

Chick Competitors

Indirect Competition

Direct Competition

Possible Threats

National Coney Island

McDonald’s

Local restaurants

Subway

Burger King

Pizza Specialties

Jimmy John’s

Wendy’s

Local Grocery Stores

Sonic

Chipotle

Denny’s

Qdoba

White Castle

Baja Fresh

Tim Horton’s

Kentucky Fried Chicken (KFC)

Taco-Bell

Popeye’s

Competitor Graph

Market Growth

Market Growth

Macro EnvironmentTrends and situations impact the successChristian beliefs integrated in business

Competitive fast food environment

Changes in demographics

SWOTStrengthsIndustry recognitionSteady revenue growthOver 1700 locations in 39 statesHealthy alternative to beef and other meatsEstablished online presenceStrong brand

Weaknesses

Fewer locations in Michigan than competitors

Weak presence in MichiganClosed on Sundays

SWOT (cont.)OpportunitiesExpansion of menu offeringsFurther expansion of locations throughout MichiganLeadership Scholarship ProgramsThreats

Competitors with similar menu offerings

Bird related diseases

Rising costs of raw materials

Marketing Strategy

Value PropositionHealthy alternative to beef and other meatsTreat every customer with utmost respectOffer a good value

Financial ObjectivesFinancial ObjectivesFirst year sales In-line / mall – $1.1MStand-alone – $2.1MGross margin of 35%

Marketing ObjectivesMaintain a gross margin of at least 35%Generate a sales average of $4,500 each business dayRealize an annual growth of approximately 10% for each year after the opening year of each store

Target MarketTeens – 14 to 18 years of ageHave part-time jobsLooking for good valueYoung Adults – 19 to 25 years of ageUsually in collegeHave full or part time jobsChoose to not cook for themselvesLooking for good value

Target Market (cont.)Adults – 25 to 55 years of ageIn careersWorking long hoursChoose not to cook for themselves due to time challengesLooking for healthy alternatives to beef and other meatsSeniors – 55 + years of ageFixed incomes

Looking for healthy alternatives to beef and other meats

Target Market (cont.)Travelers – all agesFamilies with childrenTraveling through MichiganLooking for good value

Critical IssuesClosed on SundaysCompetitive chicken productsStrong display of Christian values and beliefs

Marketing Mix

Marketing the Chick Overview4 P’s: (product, price, place, and promotion)3 P’s: (people, physical

evidence, and

process)

4 C’s: (customer value, cost, convenience, and communication)

Chick MenuProduct Marketing: The restaurant only serves chicken no beef or steakSpecial Menus:

Build

Your Own Meal

Being a ChickenSatellite/Lunch-Counter

Getting the Chick-fil-A Word Out

Pricing

Promotion

Advertising channels (various counties)Public relationsDirect marketing

More Chicken MarketingWeb planningWebsite goalsService

Marketing StrategyIntroduce healthy menu offerings through:Social mediaCouponsLoyalty programsBasic cable advertising

Financials

Income Statement

Balance Sheet

Sales Forecast

Break-Even Analysis

Controls

Keys to SuccessCreate repeat customersGenerate

new

customers

Annual sales of $1.1 million at public locationsUphold the values and

traditionsPhilanthropic

contributor in the

community

Host and sponsor community

events

Increase profits at each location by 8% annually

ControlsSell each item at a profit margin of at least 5.1%

Annual income for stand alone restaurants of

$2.1 million

Annual income for mall/in line restaurants of $1.1 million

Continue to pay down the lines of credit by $40,000 per year

Provide at least 3 $1,000 scholarships per year per location for employees to further

education

Employees participation in profit sharing at each

location

Locations will be closed on Sundays to allow staff to spend time with their families and observe Christian

Sabbath

ImplementationMeet daily goalsMonthly meetings with managers and assistant managers

Quarterly ownership

and

management business plan reviews

RisksNegative feedback from customers

Nontraditional

franchise

locations too exclusive for general publicScholarships and donations are given at a rate that significantly reduce profits

Management does not comply with corporate values

Risk MitigationChange management leadershipLessen donations and scholarships for eligible individuals/organizations.Close non-revenue generating locations

Marketing Research/CRMHow did you hear about Chick-fil-A

?

How frequently do you/your family eat out in a month?

On a scale of 1-10 (1 lowest, 10 highest):How was your overall experience at

Chick-fil-A?

How

would you rate the cleanliness of the

restaurant

?

How

was the service provided at

Chick-

fil

-A

?

Do you have any suggestions

for improvements

that can be made to

Chick-

fil

-A

?

SummaryChick-fil-A:Healthy optionGood valueProfitable companyInvest in their people and the community

ReferencesChick-Fil-A 2013524 Company Fact Sheet)Chick-fil-A. (n.d.). Company Fact Sheet. Retrieved May 24, 2013, from http://www.Chick-fil-A.com/Company/Highlights-Fact-SheetsFolgate, E. (n.d

.). Eating Healthy for Cheap at Chick-

fil

-A. Retrieved June 8, 2013, from Money Crashers Web site: http://www.moneycrashers.com/eating-healthy-for-cheap-at-chick-fil-a/Grantham R 28 Chick-fil-A model helps it lead)Grantham, R. (28). Chick-fil-A model helps it lead. Retrieved May 24, 2013, from http://www.ajc.com/news/business/Chick-fil-A-model-helps-itlead/nQPpn/Hayden Stewart. (2012, May 26). United States Department of Agriculture. Retrieved June 7, 2013, from United States Department of Agriculture: http://www.ers.usda.gov/topics/food-markets-prices/food-service-industry/market-segments.aspx#.UbIv8Pm7KBINational Health Council. (2012, June 28). Retrieved May 7, 2013, from American Heart Association: http://www.heart.org/HEARTORG/GettingHealthy/WeightManagement/LosingWeight/EatMore-Chicken-Fish-and-Beans-than-Red-Meat_UCM_320278_Article.jsp

SDIinvest 31 Chick-Fil-A Owner/Operator Model)SDIinvest. (31). The Chick-fil

-A Owner/Operator Model. Retrieved May 24, 2013, from http://compoundingmachines.wordpress.com/2009/01/31/theChick-fil-A-owneroperator-model/