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CHICKEN TEAM

CHICKEN TEAM. Kristina M. Kasic Patrick Johnson Bernard Kanjoma Erik Larson Rob Killius Raghad Khamou Dragan Kosanovic. Agenda. Overview – Kristina Kasic Situation Analysis – Raghad Khamou / Dragan Kosanovic Marketing Strategy – Rob Killius Marketing Mix – Bernard Kanjoma

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CHICKEN TEAM

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  1. CHICKEN TEAM Kristina M. Kasic Patrick Johnson Bernard Kanjoma Erik Larson Rob Killius RaghadKhamou DraganKosanovic

  2. Agenda • Overview – Kristina Kasic • Situation Analysis – RaghadKhamou / DraganKosanovic • Marketing Strategy – Rob Killius • Marketing Mix – Bernard Kanjoma • Financials – Erik Larson • Controls – Patrick Johnson

  3. Overview

  4. Company Overview • Founded in 1946 by S. Cathy Truett • Privately held company • Expands through franchising • Currently operates: • 1700 + locations • 39 states, including 1 in Michigan

  5. Product Mix • Breakfast • Chicken biscuits • Chicken, egg and cheese bagel • Chicken breakfast burrito • Lunch / Dinner • Chicken sandwich • Chargrilled chicken sandwich • Chicken strips

  6. Product Mix (cont.) • Sides • Waffle potato fries • Fruit cup • Breast of chicken soup • Salads and Wraps • Grilled chicken wrap • Asian salad • Grilled market salad

  7. Healthy Alternative • Most entrees under 500 calories • Lean frying oils • Wheat buns grilled sandwiches • Light dressings

  8. Franchise Layout Options • Company offers various options • Express • Stand-alone • Drive through only • Available in unique locations: • High traffic business buildings • College campuses • Hospitals

  9. Proposal • Open 10 Chick-fil-A locations in Southeast Michigan over 5 years • Year 1 – University of Michigan and Birch Run • Year 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)

  10. Situational Analysis

  11. Chick Competitors

  12. Competitor Graph

  13. Market Growth

  14. Market Growth

  15. Macro Environment • Trends and situations impact the success • Christian beliefs integrated in business • Competitive fast food environment • Changes in demographics

  16. SWOT • Strengths • Industry recognition • Steady revenue growth • Over 1700 locations in 39 states • Healthy alternative to beef and other meats • Established online presence • Strong brand • Weaknesses • Fewer locations in Michigan than competitors • Weak presence in Michigan • Closed on Sundays

  17. SWOT (cont.) • Opportunities • Expansion of menu offerings • Further expansion of locations throughout Michigan • Leadership Scholarship Programs • Threats • Competitors with similar menu offerings • Bird related diseases • Rising costs of raw materials

  18. Marketing Strategy

  19. Value Proposition • Healthy alternative to beef and other meats • Treat every customer with utmost respect • Offer a good value

  20. Financial Objectives • Financial Objectives • First year sales • In-line / mall – $1.1M • Stand-alone – $2.1M • Gross margin of 35%

  21. Marketing Objectives • Maintain a gross margin of at least 35% • Generate a sales average of $4,500 each business day • Realize an annual growth of approximately 10% for each year after the opening year of each store

  22. Target Market • Teens – 14 to 18 years of age • Have part-time jobs • Looking for good value • Young Adults – 19 to 25 years of age • Usually in college • Have full or part time jobs • Choose to not cook for themselves • Looking for good value

  23. Target Market (cont.) • Adults – 25 to 55 years of age • In careers • Working long hours • Choose not to cook for themselves due to time challenges • Looking for healthy alternatives to beef and other meats • Seniors – 55 + years of age • Fixed incomes • Looking for healthy alternatives to beef and other meats

  24. Target Market (cont.) • Travelers – all ages • Families with children • Traveling through Michigan • Looking for good value

  25. Critical Issues • Closed on Sundays • Competitive chicken products • Strong display of Christian values and beliefs

  26. Marketing Mix

  27. Marketing the Chick Overview • 4 P’s: (product, price, place, and promotion) • 3 P’s: (people, physical evidence, and process) • 4 C’s: (customer value, cost, convenience, and communication)

  28. Chick Menu • Product Marketing: The restaurant only serves chicken no beef or steak Special Menus: Build Your Own Meal Being a Chicken Satellite/Lunch-Counter

  29. Getting the Chick-fil-A Word Out • Pricing • Promotion • Advertising channels (various counties) • Public relations • Direct marketing

  30. More Chicken Marketing • Web planning • Website goals • Service

  31. Marketing Strategy • Introduce healthy menu offerings through: • Social media • Coupons • Loyalty programs • Basic cable advertising

  32. Financials

  33. Income Statement

  34. Balance Sheet

  35. Sales Forecast

  36. Break-Even Analysis

  37. Controls

  38. Keys to Success • Create repeat customers • Generate new customers • Annual sales of $1.1 million at public locations • Uphold the values and traditions • Philanthropic contributor in the community • Host and sponsor community events • Increase profits at each location by 8% annually

  39. Controls • Sell 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

  40. Implementation • Meet daily goals • Monthly meetings with managers and assistant managers • Quarterly ownership and management business plan reviews

  41. Risks • Negative feedback from customers • Nontraditional franchise locations too exclusive for general public • Scholarships and donations are given at a rate that significantly reduce profits • Management does not comply with corporate values

  42. Risk Mitigation • Change management leadership • Lessen donations and scholarships for eligible individuals/organizations. • Close non-revenue generating locations

  43. Marketing Research/CRM • How 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?

  44. Summary • Chick-fil-A: • Healthy option • Good value • Profitable company • Invest in their people and the community

  45. References • Chick-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-Sheets • Folgate, 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#.UbIv8Pm7KBI • National 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/

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