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Chick-fil-A IMC Strategy

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EAST ASIA
Enigma, Inc.

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enigma
Solving the mysteries behind your brand, so you don’t have to.

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PROBLEM STATEMENTChick-Fil-A wants to expand by infiltrating into the already
highly competitive fast food market of East A...

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Chick-fil-A IMC Strategy

  1. 1. EAST ASIA Enigma, Inc.
  2. 2. enigma Solving the mysteries behind your brand, so you don’t have to.
  3. 3. PROBLEM STATEMENTChick-Fil-A wants to expand by infiltrating into the already highly competitive fast food market of East Asia.
  4. 4. MARKETING OBJECTIVE Gain a 5% market share for Chick-Fil-A in the Chinese, Japanese and South Korean market for the 2017 fiscal year.
  5. 5. ADVERTISING OBJECTIVE Establish 50 percent brand awareness and increase favorability over competitors in China, Japan and South Korea.
  6. 6. TARGET AUDIENCE 18-49 year olds, middle/upper class individuals
  7. 7. Situation Analysis
  8. 8. Hofsteade analysis Long-term orientation: 118 Uncertainty avoidance: 85 Uncertainty avoidance: 92 Individualism: 20 Uncertainty avoidance: 30 High power distance: 80 Masculinity: 95 Long-term orientation: 80 Individualism: 18 Masculinity: 39 Long-term orientation: 75
  9. 9. BRAND ANALYSIS ➤ Founded by S. Truett Cathy in 1946 in the Atlanta suburbs ➤ 1600 restaurants in 39 states, mostly located in the South due to the traditional Christian values seen throughout the company’s culture and work ethic. ➤ Famous for their slogans ““We Didn’t Invent the Chicken, Just the Chicken Sandwich,”and “Eat Mor Chikin,” which usually feature the company’s mascots- cows. ➤ Wants to expand into highly populated areas of China, Japan and South Korea due to their rapidly growing fast food markets
  10. 10. CHICK-FIL-A STRENGTHS AND WEAKNESSES ➤ Strengths ➤ Distinguished different from other popular US based chicken restaurant, KFC because of way chicken cooked, quality service and chicken sandwich ➤ Growing trend of mascots will encourage brand relatability to the Japanese ➤ Weaknesses ➤ No brand awareness in Asia ➤ Brand philosophy - very religious brand, not open on Sunday (problem because many things are open late or 24/7 in Asia) ➤ Not a very diverse menu
  11. 11. CHINA ➤ Opportunities ➤ LTOs ➤ Competitors like KFC, McDonald’s, and Pizza Hut all had food scares and are losing revenue ➤ New local menu offerings ➤ Devotion to quality may attract consumers who don’t want expired meat in their meal ➤ Upcoming Lunar New Year is the Year of the Rooster - focus more on chicken imagery as opposed to ox imagery (cow) ➤ Threats ➤ KFC as a number one competitor ➤ McDonald’s promising growth ➤ Established presence from other competitors
  12. 12. COMPETITORS ➤ KFC = 肯德基 = (Kěndéjī) ➤ Number one brand in China ➤ Maintains old menu along with new menu ➤ Very high brand awareness ➤ Long and established presence ➤ McDonald’s = 麦当劳 = (Màidāngláo) ➤ Leverages LTOs ➤ Emphasizes coffee and desserts as well as menu items ➤ Very high brand awareness ➤ Attracts families ➤ Pizza Hut = 必胜客 = (Bìshèngkè) “Compelling victory for guests.” ➤ Good at making LTOs, especially seasonal ones (see Lunar New Year) ➤ Huge variety ➤ Very high brand awareness ➤ Attracts the young crowd, offers delivery
  13. 13. JAPAN ➤ Opportunities ➤ Incorporate the Chick-Fil-A mascots into the advertising and IMC efforts ➤ Use large social media based culture and trends to promote Chick-Fil-A ➤ Use holidays like the chicken emphasis at Christmas to have special advertising ➤ Threats ➤ Shared outlets of competition makes it easier for them to expand ➤ KFC has huge following,especially around Christmas that is hard
  14. 14. COMPETITORS ➤ McDonalds ➤ A lot of tourists will eat McDonalds just to try the exclusive menu items ➤ Sells a variety of food, well established, and not going anywhere any times soon ➤ As another American brand, will be be hard to convince people to eat Chick-Fil-A over McDonalds or KFC when thinking of american fast food ➤ Recently had a food scandal that can detract sales ➤ MOS Burger ➤ "Making people happy through food." ➤ Japan’s second largest fast food franchise, only behind McDonalds ➤ Burgers, hotdogs, rice dishes, and their popular rice burger ➤ Have unique burger options that are direct competition to the uniqueness of the chicken sandwich ➤ KFC ➤ “Finger Lickin’ Good” ➤ Japan is the third largest market for KFC, after US and China ➤ While most fast food restaurants in Japan are burger oriented, KFC is chicken ➤ In 1974, KFC Japan began to promote fried chicken as a Christmas meal and now eating KFC as a Christmas time meal is a widely practiced custom in Japan
  15. 15. SOUTH KOREA ➤ Opportunities ➤ Popularity of chicken products ➤ Extremely technology savvy population, power of social media/word-of- mouth ➤ Threats ➤ Market competition is huge ➤ Power of social media/ word-of-mouth
  16. 16. COMPETITORS ➤ McDonald’s ➤ Lotteria ➤ Has been in the market since 1978 ➤ Local version of McDonald’s ➤ Burger King ➤ First store 1984 ➤ 221 stores ➤ KFC ➤ First store 1984 ➤ Over 140 stores ➤ Chicken Franchises ➤ BBQ Chicken ➤ Kyochon ➤ Nene Chicken ➤ Goobne Chicken ➤ Hosigi Chicken
  17. 17. ADVERTISING STRATEGY Use standardization to promote the originality and freshness of Chick-Fil- A while using localized executions.
  18. 18. STANDARDIZED STRATEGY ➤ Keep “Eat Mor Chikin'” but possibly add sub tagline for each company ➤ Emphasis the originality and tradition of Chick-Fil-A chicken sandwich ➤ Lighthearted, fun tone will be kept ➤ Made to order, premium products; takes longer but it's better; sit down and eat restaurant ➤ Authenticity and genuineness ➤ Slogan: “Chikin done right”
  19. 19. Launch cities Shanghai Chongqing Harbin Seoul Tokyo Osaka
  20. 20. Standardization ad — traditional Chicken done right.
  21. 21. “Chikin done right” Singular social media ad featuring a fresh chicken sandwich with copy highlighting the quality of the chicken, and how the meat isn’t processed or expired. Standardization ad — social media
  22. 22. LOCALIZATION OF CHINA OVERVIEW ➤ Emphasize value especially to younger audience ➤ Weibo/Renren ads ➤ TV ad or magazine ad with celebrity advertising a chicken sandwich or something of that sort ➤ Promotional - chicken burger, coffees or ice cream etc ➤ Extra emphasis on quality, real deal, not imitation products ➤ Chick-fil-A Chinese name: 福来鸡 (Fúlái jī) “Fortune comes with chicken” ➤ Year of the rooster is 2017
  23. 23. CHINA BUDGET & MEDIA MIX & IMC ➤ 40 Million total ➤ 10 MM Television ➤ 1 MM Digital/Social Media ➤ 2 MM Publicity ➤ Wang Rong endorsement ➤ 10 MM Guerilla ➤ People in chicken suits interacting with people ➤ 7 MM Print ➤ Magazines and newspapers ➤ 10 MM Event/Promo ➤ Lunar New Year merchandise with rooster/chicken, chicken hats
  24. 24. CHINA FLOWCHART
  25. 25. China Mockups
  26. 26. LOCALIZATION OF JAPAN OVERVIEW ➤ Use cow mascots in promotions and executions ➤ Incorporate Japanese holiday chicken culture for LTOs ➤ Emphasis chicken because many fast food restaurants are burger oriented
  27. 27. JAPAN BUDGET & MEDIA MIX & IMC ➤ 27 Million total ➤ 12 MM Television ➤ TV spots ➤ 1 MM Digital/Social Media ➤ 2 MM Publicity ➤ 5 MM Guerilla ➤ Running cow mascots in the streets of Tokyo ➤ 2 MM Print ➤ Magazines ➤ 5 MM Event/Promo ➤ Rotating game show filmed live every monday at Midnight, aired on Chick-Fil-A’s website ➤ Winners receive free chick-fil-a for a year
  28. 28. JAPAN FLOWCHART
  29. 29. Japan Mockups
  30. 30. LOCALIZATION OF SOUTH KOREA OVERVIEW ➤ Celebrity endorsements, product placement ➤ Make social media worthy/sharable ➤ Cultural leader amongst East Asian countries ➤ Emphasis price ➤ Midstatus, relatable, funny people endorsements
  31. 31. SOUTH KOREA BUDGET & MEDIA MIX & IMC ➤ 28 Million total ➤ 16 MM Television ➤ TV spots ➤ 2 MM Digital/Social Media ➤ 1 MM Publicity ➤ 3 MM Print ➤ Magazines ➤ 6 MM Event/Promo
  32. 32. SOUTH KOREA FLOWCHART
  33. 33. South Korea Mockups
  34. 34. EVALUATION ➤ $5 MM budget ➤ Surveys ➤ Measuring sales volume ➤ Brand recall ➤ Brand linkage tests ➤ Website impressions ➤ Inquiry tests ➤ Social media engagement ➤ Tracking the hashtag for “Chicken done right” ➤ Tracking shares on the guerrilla videos
  35. 35. RESOURCES http://www.japantimes.co.jp/news/2015/04/08/national/japans-cuddly-yet-costly-mascots-face-extermination/#.VVC-yxeXGL5 http://www.japantoday.com/category/arts-culture/view/why-its-so-important-for-japanese-celebrities-to-star-in-commercials (http://en.rocketnews24.com/2013/09/15/the-top-8-fast-food-chains-in-japan/) (https://www.tofugu.com/japan/japanese-fast-food/ http://www.ft.com/cms/s/0/a3ebd55a-ea47-11e4-a701-00144feab7de.html http://www.ft.com/cms/s/bb2dafc6-0ba4-11e0-a313-00144feabdc0,Authorised=false.html?siteedition=uk&_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2Fbb2dafc6-0ba4-11e0- a313-00144feabdc0.html%3Fsiteedition%3Duk&_i_referer=https%3A%2F%2Fen.wikipedia.org%2F6666cd76f96956469e7be39d750cc7d9&classification=conditional_standard&iab=barrier- app#axzz2XRv8gnig http://www.chinadaily.com.cn/bizchina/2014-07/28/content_17932826.htm http://www.statista.com/statistics/429950/market-share-of-leading-fast-food-brands-china/ http://www.statista.com/statistics/256038/market-share-of-leading-companies-in-china-by-ad-spend/ http://www.statista.com/statistics/274326/big-mac-index-global-prices-for-a-big-mac/ http://luckypeach.com/how-mcdonalds-started-in-china/ https://www.vice.com/en_uk/read/western-fast-food-tasted-even-worse-in-the-far-east http://thinkingchinese.com/index.php?page_id=273 http://www.statista.com/statistics/205784/kentucky-fried-chicken-sales-per-system-unit-since-2006/ http://hbswk.hbs.edu/item/kfcs-explosive-growth-in-china https://hbr.org/2011/11/kfcs-radical-approach-to-china http://www.nytimes.com/2008/05/05/business/worldbusiness/05iht-kfc.1.12567957.html?_r=0 http://articles.baltimoresun.com/1990-09-11/business/1990254110_1_pizza-hut-first-pizza-pizza-restaurant-chain http://thinkingchinese.com/china-pizza-hut-experience http://www.forbes.com/sites/liyanchen/2015/10/22/yum-empire-the-10-year-rise-and-fall-of-kfc-pizza-hut-in-china/#6fe1eb0c60d1 http://clien.net/cs2/bbs/board.php?bo_table=park&wr_id=41451710

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