1. Chick-fil-A Expansion to Stuttgart, Germany
Margaret Desmond
MKG310—Introduction to Marketing
Portfolio Project Option #2
Marketing Plan for an Existing Company; Promotion in a New Country
Colorado State University—Global Campus
Dr. Leon Chickering
November 27, 2016
Copyright Chick-fil-A ® 2016.

2. Executive Summary
Truett Cathy invented Chick-fil-A’s boneless breast
of chicken in 1946 and founded the Chick-fil-A
restaurant chain in the 1960s. In 1967 Mr. Cathy
pioneered the establishment of restaurants in shopping
malls by opening the first Chick-fil-A restaurant in an
Atlanta, Georgia mall. In the past 48 years Chick-fil-A
has grown to more than 2,000 locations in 43 states and
Washington, D.C. Still a privately held company, sales
revenue exceeded $6 billion in 2015 (CFA Properties,
2016).
Our objective is to open a Chick-fil-A freestanding
restaurant in Stuttgart, Germany in order to cater both to
German locals who are not aware of the Chick-fil-A
brand and to U.S. citizens stationed at the four U.S.
military bases in Stuttgart who greatly miss the fare they
have come to enjoy in the United States. Financial
projections include first year sales of $816,667 (June-
December) with a gross margin of 35 percent while
selling each menu item at a profit margin of at least 5.1
percent.
Copyright Chick-fil-A ® 2016.

3. Company Overview
 Truett Cathy created the
Chick-fil-A sandwich in 1946
(CFA Properties, 2016).
 The Chick-fil-A restaurant chain
was founded in the 1960s (CFA
Properties, 2016).
 Chick-fil-A is the eighth largest
fast-food chain in the U.S. with
more than 2,000 stores operating
in 43 states and Washington, D.C.
(CFA Properties, 2016).
 Chick-fil-A is a privately held
company with revenue exceeding
$6 billion in 2015 (CFA
Properties, 2016).
 Chick-fil-A expands through
franchising (CFA Properties,
2016).
Copyright Chick-fil-A ® 2016.
Copyright Chick-fil-A ® 2016.

4. Strengths
 Chick-fil-A’s brand is established in the U.S.
 Chick-fil-A’s “Eat Mor Chikin” cow ad
campaign is extremely successful.
 Chick-fil-A is known for unique chicken and
waffle fries.
 Chick-fil-A is a recognized leader in superior
customer service.
 Even though it’s closed on Sundays, Chick-
fil-A is still dominating national sales charts
and beating a number of restaurants that are
open seven days a week, thanks to its
outstanding customer service (Hatic, 2016).
 Largely due to its superior customer service,
Chick-fil-A is selling three times as much as
KFC even though it’s half the size. For
example, in 2014 Chick-fil-A’s average
restaurant annual sales was $3.1 million
while KFC’s was $960,000 (Taylor, 2016).
Copyright Chick-fil-A ® 2016.
“Customers with Western
cultural backgrounds are more
likely to rely on the tangible
cues from the physical
environment to evaluate service
quality (Furrer, Liu, &
Sudharshan, 2000).”

5. Weaknesses
Stores are closed on
Sundays and certain
holidays thus decreasing
sales potential.
Every meal is chicken
whereas competitors offer
beef and lamb options.
The LGBT community is
angry with Mr. Cathy’s
opposition to same-sex
marriage, leading to
protests and bans on the
restaurant.
Source: qpolitical.com, n.d.
Source: Payne, 2012

6. Opportunities
Nothing quite like Chick-fil-A exists in the
Stuttgart area.
Germans very much enjoy chicken and French
fries but are limited to more expensive full service
restaurants, temporary rotisserie chicken carts,
Burger King, KFC, and McDonald’s.
Businesses in Germany stay closed on Sundays,
thus keeping with the Chick-fil-A corporate
requirement.

7. Threats
Well known on the German economy, Burger
King, McDonald’s, and KFC’s fast food chicken
products provide competition.
Fresh rotisserie chicken carts located throughout
the area offer delicious fare.
Bird related diseases may effect supply costs.
Rising costs of other raw materials negatively
effect revenue.
Copyright KFC® 2016.Copyright McDonald’s® 2016.Copyright Burger King® 2016.

8. Marketing Plan Objectives
 The objective is to open a Chick-fil-A
freestanding restaurant in Stuttgart, Germany in
order to cater to both German locals who are not
aware of the Chick-fil-A brand and to U.S.
citizens stationed at the four U.S. military bases
in Stuttgart who greatly miss the fare they have
come to enjoy in the United States.
 Chick-fil-A will surpass McDonald’s, Burger
King, and KFC’s chicken offerings by providing
a larger selection of better quality, more
appealing chicken options.
 Chick-fil-A will appeal to the German’s love of
French fries by introducing them to waffle fries.
Copyright Chick-fil-A® 2016.
Copyright Chick-fil-A® 2016.

9. Segmentation
Types of segmentation bases include behavioral, demographic,
geographic, and psychographic variables (Tynan & Drayton, 2010).
 Behavioral Segmentation—Stuttgart customers want convenient, reasonably
priced, delicious, quality food products provided by polite, efficient workers.
 Demographic Segmentation—Chick-fil-A products appeals to all ages,
incomes, ethnicities, educations, occupations, and family sizes.
 Geographic Segmentation—Stuttgart is the sixth largest city in Germany, with
a population of 623,738. Konigstrasse (The King’s Road) is Stuttgart’s main
shopping street and one of the busiest shopping streets in Germany with an
average of 12,795 pedestrians walking along the 1.2 km road per hour.
Konigstrasse starts at the Hauptbahnhof (train station) that caters to 220,000
passengers daily (Hahn & Volkman, 2015).
 Psychographic Segmentation—Chick-fil-A products appeal to all: innovators,
thinkers, achievers, experiencers, believers, strivers, and makers (Tanner &
Raymond, 2014).

10. Target Market
Teens Young Adults Adults Seniors U.S. Citizens
14-18 years old 19-25 years old 25-55 years old 55+ years old Teens-Seniors
Have part-time jobs Have full- or part-
time jobs
In careers Fixed incomes Familiar with brand,
want a “little piece
of home”
Looking for good
value
Looking for good
value
Looking for good
value
Looking for good
value
Looking for good
value
Choose not to cook
for themselves
Choose not to cook
for themselves
Choose not to cook
for themselves
Choose not to cook
for themselves
Usually in college Working long hours
Seeking healthy
alternatives to
other fast-food fare
Seeking healthy
alternatives to
other fast-food fare
Seeking healthy
alternatives to
other fast-food fare
In general, Chick-fil-A’s target market is looking for good value and seeking healthy
alternatives to other fast food fare.

11. Positioning Map
Affordable
Pricey
Fast Leisurely
Chick-fil-A
Street VendorsSubway
Burger King
McDonald’s
Cafe Königsbau
Martha's Gastronomiebetriebe
Fritti Bar
Dinea Gastronomie
Maredo SteakhouseAli Baba
Pokkez
Sakura
Ützel Brützel
Thai Cuisine
Terrazza
Beykebab
Pizza Hut
Vineria Tafuro
Ochs'n Willi
Rich-Man
Chick-fil-A should be seen as a fast, affordable, delicious, and healthier alternative to
other fast food.

12. Product
Chick-fil-A McDonald’s KFC Burger King
*Original Chicken
Sandwich
430 calories
17g fat
28g carbs
30g protein
Crispy Chicken
Sandwich
530 calories
22g fat
59g carbs
25g protein
Original Chicken
Sandwich
450 calories
20g fat
41 g carbs
25g protein
Original Chicken
Sandwich
630 calories
39g fat
46g carbs
24g protein
*Chicken Nuggets
260 calories
12g fat
11g carbs
28g protein
Chicken Nuggets
280 calories
18g fat
18g carbs
13g protein
Chicken Nuggets
620 calories
39g fat
39g carbs
27g protein
Chicken Nuggets
290 calories
17g fat
15g carbs
15g protein
Waffle Fries
270 calories
14g fat
32g carbs
3g protein
*Fries
230 calories
11g fat
29g carbs
3g protein
Potato Wedges
290 calories
15g fat
35g carbs
4g protein
Fries
340 calories
15g fat
49g carbs
4g protein
*Coke 11.3 oz.
120 calories
0g fat
35g carbs
0g protein
Coke 21 oz.
210 calories
0g fat
58g carbs
0g protein
Coke 16 oz.
180 calories
0g fat
51g carbs
0g protein
Coke 20 oz.
190 calories
0g fat
51g carbs
0g protein
Source: Fast Food Nutrition (n.d.)*Category winner in nutritional value.
Chick-fil-A provides more nutritional options that its competitors.

13. Price
Chick-fil-A McDonald’s KFC Burger King
*Original
Chicken
Sandwich
$3.17
Crispy
Chicken
Sandwich
$4.57
Original
Chicken
Sandwich
$5.19
Original
Chicken
Sandwich
$3.99
*Chicken
Nuggets
$3.17
Chicken
Nuggets
$4.67
Chicken
Nuggets
$4.15
Chicken
Nuggets
$2.99
Waffle Fries
$1.61
*Fries
$1.45
Potato Wedges
$2.07
Fries
$1.86
Coke 11.3 oz.
$1.40 (12¢/oz.)
*Coke 21 oz.
$1.04 (5¢/oz.)
Coke 16 oz.
$1.76 (11¢/oz.)
Coke 20 oz.
$1.86 (9¢/oz.)
Source: Fast Food Menu Prices (2016)*Category winner in lowest price.
Chick-fil-A is more reasonably priced than its competitors.

14. Price Strategy
 Chick-fil-A will use everyday low prices in which the price initially set will remain
the same throughout its life cycle (Tanner & Raymond, 2014).
 Bundle pricing, different offerings sold together at a price that’s lower than the total
price (Tanner & Raymond, 2014), will be implemented in the form of combo meals.
Individual Items Combo (fries & drink)
Original Chicken Sandwich $3.17 Sandwich Combo $6.19
Chicken Deluxe Sandwich $3.80 Deluxe Sandwich Combo $6.81
Spicy Chicken Sandwich $3.42 Spicy Chicken Sandwich Combo $6.44
8 pc. Nuggets $3.17 8 pc. Nugget Combo $6.19
Chicken Salad Sandwich $4.15 Chicken Salad Sandwich Combo $7.06
Grilled Chicken Cool Wrap $5.40 Grilled Chicken Cool Wrap Combo $8.48
Chicken Club Sandwich $5.81 Chicken Club Sandwich Combo $8.73
Grilled Chicken Sandwich $4.57 Grilled Chicken Sandwich Combo $7.48
12 pc. Grilled Nuggets $5.98 12 pc. Grilled Nuggets Combo $8.93
Source: Fast Food Menu Prices (2016)

15. Promotional Strategy
Copyright Chick-fil-A ® 2016.
Copyright Chick-fil-A ® 2016.
Source: lifeatthecircus.com
Copyright Chick-fil-A ® 2016.
 Grand opening includes the “First 100 Event” featuring a
free meal every day for one year for the first 100
customers who attend the grand opening.
 Winners (100) x weeks (52) x sandwich combo
price ($6.19) = $32,188 cost spread out over the
year.
 Free breakfast offer features a choice of a chicken biscuit,
chick-n-minis, or an egg white grill when customers
download the Chick-fil-A One app, join Chick-fil-A One,
and create an account.
 Customers (100) x days (6) x chicken biscuit price
($2.19) = $1,314 cost incurred September 9-14.
 Dress Like a Cow day awards free meals to customers
who dress like a cow and visit the restaurant.
 Customers (100) x sandwich combo price ($6.19) =
$619 for June 13.
 Chick-fil-A calendars ($7 cost to customer) feature
monthly coupons.
 Zero cost as calendar fee covers printing and
coupon cost.
 Kids eat free on Tuesdays with a purchase of an adult
meal.
 Customers (100) x weeks (52) average kid’s meal
price ($3.72) = $19,344 cost spread out over the
year.
(CFA Properties, 2016)

16. Place Strategy
 Stuttgart is the sixth largest city in
Germany, with a population of
623,738 (Hahn & Volkman, 2015).
 Konigstrasse (The King’s Road) is
Stuttgart’s main shopping street and
one of the busiest shopping streets
in Germany with an average of
12,795 pedestrians walking along
the 1.2 km road per hour (Hahn &
Volkman, 2015).
 Konigstrasse starts at the
Hauptbahnhof (main train station)
that transports 220,000 passengers
daily (Hahn & Volkman, 2015).
Source: TripAdvisor (2016)
Source: Luventicus (2016)

17. Brand Strategy
 Chick-fil-A’s purpose is to provide delicious, nutritious food
efficiently at a reasonable price while providing excellent customer
service.
 Chick-fil-A strives for consistent quality, taste, and customer
service.
 Chick-fil-A wants to make customers feel a part of the group that
appreciates eating “mor chikin.”
 Chick-fil-A remains flexible by adapting to customer’s needs by
offering different menu choices, such as the healthier grilled
alternative instead of the original chicken sandwich and nuggets.
 Chick-fil-A values its employees and welcomes their input.
 Chick-fil-A rewards repeat customers utilizing the Chick-fil-A One
app.
 Chick-fil-A monitors competitor’s offerings and strives to remain at
the top of the fast food chicken market (Stec, 2015).

18. CSR Strategy
Chick-fil-A will support area
farmers by purchasing locally-
grown food, having a presence
at local farmers’ markets, and
promoting the use of reusable
grocery bags by distributing
them (with the Chick-fil-A
logo) at the local farmers’
markets (Grimmelsman,
2010).
Source: Kokemuller, 2016.
Source: Mr. Takeout Bags, 2016.
Chick-fil-A
Chick-fil-A
Chick-fil-A
The Stuttgart farmers’ market is held three times a week near Konigstrasse.

19. Ethical/Legal Factors
 Chick-fil-A will hire qualified
applicants regardless of race, color,
creed, gender, or religion.
 Chick-fil-A will pay the appropriate
fees/taxes to the German
government including the municipal
trade tax (18%), value added tax
(VAT) (19%), corporate tax (15%),
solidarity surcharge (5.5%), and
church tax (8-9%) of employees
(Emerson, 2016).
 Chick-fil-A will provide excellent
customer service to all customers
regardless of race, color, creed, age,
gender, or religion.
Source: TCIBC, 2012.
Source: Wikimedia Commons, 2016.

20. Financial Projections
Generate a sales average of $4,500 each
business day.
Realize an annual growth of approximately
10% for each year after the grand opening
(Compounding Machines, 2009).
Year Sales
2017 (June – December) $ 816,667
2018 $1,540,000
2019 $1,694,000
2020 $1,863,400

21. Implementation Plan
 January – May 2017: While store is under
construction, advertisement of upcoming
opening and hiring/training of staff will be
conducted.
 June 1, 2017: Open store on Konigstrasse
in the heart of the downtown shopping,
business, and transportation district on the
end of the street closest to the
Hauptbahnhof (Stuttgart’s main
transportation station). Host “First 100”
Event.
 Tuesdays: Host “Kids Eat Free” Day.
 June 13, 2017: Host “Dress Like a Cow”
Day.
 September 9-14, 2017: Host “Breakfast on
Us” promotion.
 November 2017 – February 2018: Sell
Chick-fil-A 2018 calendar.
Source: Wikiwand
Source: Funke, 2012
Konigstrasse, Stuttgart
Hauptbahnhof, Stuttgart

22. Evaluation & Control
Metrics
 Chick-fil-A ownership,
management, and
employees will strive to
meet daily goals.
 Ownership and management
will conduct monthly
employee meetings.
 Ownership and management
will conduct quarterly
business plan reviews.
Source: Baker, 2016

23. Conclusion
A Chick-fil-A freestanding restaurant
located in the heart of downtown
Stuttgart, Germany would cater to the
12,795 pedestrians/hour and 220,000
train travelers/day in the area (Hahn &
Volkman, 2015). Financial projections
include first year sales of $816,667
(June-December) with a gross margin of
35 percent while selling each menu item
at a profit margin of at least 5.1 percent
(Compounding Machines, 2009).
Copyright Chick-fil-A ® 2016.

24. References
 CFA Properties. (2016). Company fact sheet. Retrieved from http://www.chick-fil-a.com/Company/Highlights-Fact-Sheets
 Compounding Machines. (2009). The Chick-fil-A owner/operator model. Retrieved from
https://compoundingmachines.wordpress.com/2009/01/31/the-chick-fil-a-owneroperator-model/
 Emerson, C. (2016). Starting a business in Germany. How to Germany. Retrieved from http://www.howtogermany.com/pages/busi-
setup.html#taxes
 Fast Food Menu Prices. (2016). Burger King, Chick-fil-A, KFC, McDonald’s. Retrieved from
http://www.fastfoodmenuprices.com/mcdonalds-prices/
 Fast Food Nutrition. (n.d.) Burger King, Chick-fil-A, KFC, McDonald’s. Retrieved from http://fastfoodnutrition.org/chick-fil-a
 Furrer, O., Liu, B., & Sudharshan, D. (2000). The relationships between culture and service quality perceptions: Basis for cross-
cultural market segmentation and resource allocation. Journal of science research. Retrieved from
http://www.unifr.ch/marketing/assets/files/2000_furrer_liu_sudharshan_journal_service_research.pdf
 Grimmelsman, B. (2010). Chick-fil-A corporate social responsibility plan. Retrieved from
http://www.slideshare.net/BritGrimmelsman/chick-fil-a-corporate-social-responsibility-plan
 Hahn, S. & Volkmann, I. (2015, June 1). Konigstrasse defended its top position. Stuttgarter Zeitung. No. 123 p. 15.
 Hatic, D. (2016). Chick-fil-A is crushing fast food sales, thanks to its service. Eater. Retrieved from
http://www.eater.com/2016/5/11/11658438/chick-fil-a-service-sales
 Meister, M., Parker, E., Slaughter, J., & Underwood, J. (2012). Chick-fil-A situational analysis and marketing strategy. Retrieved
from https://emmabparker.files.wordpress.com/2012/04/chick-fil-a.pdf
 Stec, C. (2015). Introduction to brand strategy: 7 essentials for a strong company brand. Where marketers go to grow. Retrieved
from http://blog.hubspot.com/blog/tabid/6307/bid/31739/7-Components-That-Comprise-a-Comprehensive-Brand-
Strategy.aspx#sm.0000py4c5h1cr4cpyw0db0mjkfg7m
 Taylor, K. (2016). KFC is getting killed by a restaurant half its size—and now it’s making huge changes to get customers back.
Business insider. Retrieved from http://www.businessinsider.com/why-chick-fil-a-is-beating-kfc-2016-5
 Tynan, C. & Drayton, J. (2010). Market segmentation. Journal of marketing management. Retrieved from
http://www.tandfonline.com/doi/abs/10.1080/0267257X.1987.9964020?src=recsys