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Chick-Fil-A Marketing Plan
Chick-Fil-A Marketing Plan
Gavin Rossman, Thomas Sampson, Kiara Bryant, Isabella Rosborough, and Lauren
Runkle
Executive Summary for Chick-fil-A
The Selinsgrove area is a fantastic opportunity for corporate Chick-fil-A to extend their
presence in Pennsylvania to the Susquehanna Valley, since one of Chick-fil-A's target markets is
the state of Pennsylvania. In Pennsylvania, seventy-nine locations already exist, fourteen of those
located on college campuses. Yet, the closest Chick-fil-A to the Selinsgrove area, in which
Susquehanna and Bucknell Universities both reside, is thirty miles away in Bloomsburg. Many
students at these universities come from areas with this casual fast food restaurant, and a
majority look to order food or go out at least once a week. This age group fulfills the initial target
market because they make up thirty-five percent, or the majority, of the Selinsgrove area. The
combined population of Susquehanna and Bucknell University students, excluding those abroad
and those that do not consume meat products, is around four thousand, six hundred students. The
Selinsgrove location will be built between the Susquehanna Valley Mall and Monroe
Marketplace on N. Susquehanna Trail, which is about equidistant between both universities.
Since the location is not placed on either campus, food trucks will be utilized to get Chick-fil-A
to both campuses as well as a partnership with DoorDash. The location on N. Susquehanna Trail
and DoorDash will offer a full menu, whereas the food trucks will offer limited menus. To keep
track of the number of students coming to the Selinsgrove location, a student discount will be
offered when students show their Susquehanna or Bucknell I.D. While these students will be the
initial target market, other markets in the area, such as families and Christians, will be targeted
after the market research is collected and analyzed a year after opening.
In the Selinsgrove area, Chick-fil-A's biggest competitors are KFC, McDonald’s, and
Panera Bread. Chick-fil-A will compete with KFC and McDonald’s by being in a more neutral
location between the two universities, as opposed to being closer to Bucknell, and offer higher
quality food. It will compete with Panera Bread through quicker service and a lower price and
will compete with all three through the campus food trucks. Chick-fil-A also provides freshly
sourced food, free from hormones, steroids, or antibiotics. To promote the new location on the
campuses, fliers, coupons, and social media will all be used. As the franchisee, we will provide
ten thousand dollars and will be ready to begin training if this will be provided upfront and
training will commence if the franchise is approved. The average amount needed from corporate
is a little over two million dollars but will be made back through fifteen percent of sales and fifty
percent of pre-tax profit. This is a good investment for Chick-fil-A to make, as the Selinsgrove
area is in great need of some quality fast food.
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Table of Contents
Executive Summary...............................................................................................................Page 1
Current Marketing Situation Analysis...............................................................................Pages 3-4
Target Market Description.........................................................................................Page 3
Product Review..........................................................................................................Page 3
Competitive Review...................................................................................................Page 4
Distribution Review...................................................................................................Page 4
Objectives and Issues.............................................................................................................Page 5
Marketing Strategy............................................................................................................Pages 6-7
Positioning..................................................................................................................Page 6
Marketing Research...................................................................................................Page 6
Product Strategy.........................................................................................................Page 7
Price Strategy.............................................................................................................Page 7
Distribution Strategy..................................................................................................Page 7
Promotion Strategy.....................................................................................................Page 7
Implementation......................................................................................................................Page 8
Action Plan.................................................................................................................Page 8
Budgets.......................................................................................................................Page 8
Controls......................................................................................................................Page 8
Appendices......................................................................................................................Pages 9-11
Market Demand Analysis...........................................................................................Page 9
Break-Even Analysis................................................................................................Page 10
Income Statement.....................................................................................................Page 11
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Current Marketing Situation Analysis
Target Market Description
Target Market Segment:
• Susquehanna University Students
• Bucknell University Students
We chose this market segment because:
• Pennsylvania is a Corporate Target Market
• People aged 15-24 make up 35% of the Selinsgrove population
• Combined student population of Susquehanna and Bucknell Universities is around 5,900
Chick-fil-A will fill a gap in the market because:
• The closest Chick-fil-A is 30 miles away in Bloomsburg, Pennsylvania
• A food truck will directly deliver to campus, unlike the competitors
Chick-fil-A will be sustained because:
• 90% of millennials order food at least once a week
• 60% of millennials go out to eat once a week
Product Review
Chick-fil-A is a Casual Fast Food Restaurant, the Selinsgrove Chick-fil-A will:
• Be located between the Susquehanna Valley Mall and Monroe Marketplace, halfway
between Susquehanna and Bucknell Universities, on N. Susquehanna Trail
• Offer a full menu at Selinsgrove location and on DoorDash
o Sandwiches, salads, sides, desserts, breakfast items, sauces and dressings,
beverages and drinks, and catering
• Have prices that range from $3.75 to $6.55 like other Pennsylvania locations
• Operate campus food trucks with limited menus
Chick-fil-A customers are:
• Millennials
• Families
• Chicken lovers
• Loyal customers
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Competitive Review
McDonald’s Corporation: 2584 N Susquehanna Trail, Shamokin Dam, PA 17876
• Market Positions:
o There are 5 McDonalds within a 30-mile radius
o McDonalds is open 5:00 am to 11:00 pm
o Family atmosphere
o Serves fast and affordable meals
• Market Strategies:
o Provides classic American food
Panera Bread Company: 1563 N Susquehanna Trail, Selinsgrove, PA 17870
• Market Positions:
o There are 3 Panera Breads within a 30-mile radius
o Panera is open 7:00 am to 9:30 pm
o Provides best quality bread and food
o Has an acceptable price to consumers
• Market Strategies:
o Has good quality food at a quality price
Kentucky Fried Chicken (KFC): 3079 N Susquehanna Trail, Shamokin Dam, PA 17876
• Market Positions:
o There are 2 KFCs within a 30-mile radius
o KFC is open 10:30am to 10pm
o Focuses on “superb” chicken products
• Market Strategies:
o Localized menu to fit geographical location
o Undifferentiated strategy for targeting customers
Distribution Review
• Nearly 300 college campuses nationwide serve Chick-fil-A
• 79 total Chick-Fil-A locations are in Pennsylvania
• 14 colleges in Pennsylvania serve Chick-Fil-A on campus
• Chick-Fil-A is looking to expand to more locations in Pennsylvania
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Objectives and Issues
Objective 1:
• Open a Chick-fil-A location in Selinsgrove, PA by the start of the 2020-2021 academic
year (August 2020).
• Issue: Where exactly between the Mall and the Marketplace will the location be built?
How much will the land cost?
Objective 2:
• Reach 70% of students at Susquehanna and Bucknell Universities through food trucks
and/or store sales by the end of the 2021 fall semester.
• Issue: How to partner with the Universities to allow access?
Objective 3:
• To be in the top 50% of fast-casual food chains on the Susquehanna Trail in terms of
revenue and market share by the end of the 2021 fiscal year.
• Issue: How to sustain revenue in the summer when our two target markets leave for three
months?
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Marketing Strategy
Positioning
Selinsgrove KFC and McDonald’s Provide:
• Locations past Monroe Marketplace closer to Bucknell University
• A perceived lower food quality with quicker service
Selinsgrove Panera Bread Provides:
• A location between the Susquehanna Valley Mall and Monroe Marketplace, halfway
between Susquehanna and Bucknell Universities
• A perceived higher food quality with not as quick service
Selinsgrove Chick-fil-A will provide:
• A location in between Susquehanna Valley Mall and Monroe Marketplace to be in a
neutral university location like Panera Bread
• A perceived higher food quality as a corporation to compete with KFC and McDonald’s
• Quicker service to compete with Panera Bread
• Food trucks to deliver Chick-fil-A products to Susquehanna and Bucknell campuses and
compete with all three competitors
Market Research
Chick-fil-A Needs to Find Out through Surveys:
• How many students at Susquehanna and Bucknell Universities would buy Chick-fil-A
over KFC, McDonald’s, and Panera Bread?
• How many students at Susquehanna and Bucknell Universities are vegetarian and vegan?
• How many students at Susquehanna and Bucknell Universities would want a Chick-fil-A
food truck to come to campus?
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Product Strategy
Taking Great Care in How Food is Made:
• Food safety and quality commitment
• Freshly sourced produce
• Sources 100% real, whole, boneless breast of chicken that has never been ground or
separated, and that contains no fillers or added steroids or hormones
• Chicken is raised in barns (not cages), on farms in the United States, in accordance with
the Animal Wellbeing Standards, and with No Antibiotics Ever (since May 2019)
Price Strategy
Premium Pricing:
• Delicious and well-prepared quality ingredients in food, which make the higher prices
worth it
o The average price for a classic Chick-fil-A sandwich costs $3.99, whereas
McDonald’s “McChicken” costs $1.39 and a KFC chicken sandwich costs $3.75
• Do not include additional costs for items such as extra sauces or whipped cream
Distribution Strategy
Distributing to Students:
• Prime location halfway between the universities on N. Susquehanna Trail
• Campus food trucks
• Partnership with DoorDash
Promotion Strategy
Susquehanna and Bucknell Campus Promotion:
• Flyers around campus
• Handing out coupon's and other discounts to students
• Promoting on the universities’ social media pages
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Implementation
Action Plan
Things to do Now:
• Apply for franchise through Corporate Chick-fil-A
• Begin Chick-fil-A franchisee training
• Obtain contracts and licenses for location, food, and more
Things to do in 6 Months:
• Begin construction for new Chick-fil-A location
• Advertise new Chick-fil-A location on Susquehanna and Bucknell Universities campuses
• Begin hiring Chick-fil-A staff
Things to do in 1 Year:
• Open and operate new Chick-fil-A location
• Buy and begin food truck visits to Susquehanna and Bucknell Universities
• Start outreach programs with Susquehanna and Bucknell Universities’ students
Budgets
Money Needed:
• Franchisee pays $10,000
• The average cost to Corporate Chick-fil-A would be $1,152,596 start-up plus a
$1,181,500 building cost = $2,334,096 which they make back through 15% of sales 50%
pre-tax profit.
Expected Revenue:
• Chick-fil-A makes $4.6 million on average per location per year
First Year Expenses:
• Initial Franchise Fee: $10,000
• Opening Inventory: ~ $39,282
Controls
Three tests to check progress:
• Track amount of student buyers through student I.D. discount
• Track amount of revenue at Selinsgrove location after one year
• Conduct a customer survey at six months and one year
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Appendices
Market Demand Analysis
Estimate:
• The total number of students at Susquehanna University and Bucknell University willing
to pay for Chick-fil-A is 4,600.
Why This Estimate?
• The size of the student body at Susquehanna University is about 2,300 students.
• The size of the student body at Bucknell University is about 3,600 students.
o The combined size of the student bodies is about 5,900 students.
• The amount of Susquehanna University students studying abroad is about 300 students.
• The amount of Bucknell University students studying abroad is about 250 students.
o The combined number of students studying abroad is about 550 students.
o They will not be counted as part of the market due to them not being on campus
to purchase Chick-fil-A products at this location.
• The average amount of college students who consume a Vegetarian or Vegan Diet is
around 14%.
o Therefore, the average amount of combined students from Susquehanna
University and Bucknell University who consume a Vegetarian or Vegan Diet is
around 750 of the 5,350 students on campus.
o They will not be counted as part of the market due to them not consuming most of
the meat products on the menu, although they can still consume non-meat and
dairy-free options.
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Break-Even Analysis
Breakdown:
• $4,600,000 average sales per location per year
• Chick-fil-A takes 15% of sales
• Chick-fil-A takes 50% pre-tax profit
• Expenses over the course of a year
• Employee wages and salaries
• Inventory cost
• Food truck cost
• Divided by 12 months in a year
• Franchisee investment is $10,000
Equations:
$4,600,000 – $690,000 = $3,910,000
$3,910,000- $1,955,000 = $1,955,000
$1,955,000 - $583,442 = $1,371,558
$1,371,558 - $545,400 = $826,158
$826,158 - $471,390 = $354,768
$354,768 - $76,000 = $278,768 profit per year
$278,768/12 = $23,230 profit per month
Conclusion:
• Franchisee is estimated to breakeven in less than a month as the $23,230 is additional
profit after all cost have been paid and all employees are paid. This money would be used
for additional cost not accounted for and to reinvest in the restaurant.
Income Statement
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Chick-fil-A
Estimated Income Statement
For the year ended 30 September 2021
Revenue
Sales $4,600,000
Cost of Goods Sold
Inventory $471,390
Gross Profit $4,128,610
Other Operating Revenues
Food Truck $65,000
Operating Cost of food truck $11,000
Total Revenue $4,052,610
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