company's trademarked slogan-We didn't invent the chicken, just the chicken sandwich-has kept the company on track...
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company's trademarked slogan-"We didn't invent the chicken, just the chicken sandwich"-has kept the company on track for decades. Although it has carefully and strategically added other items to the menu, it's the iconic chicken sandwich in all its varieties that primarily drives the brand's image and the com- pany's revenues. This focus has helped the company give cus- tomers what they want year after year without being tempted to Company Case 1 Chick-fil-A: Getting Better before Getting Bigger Chick-fil-A is dominating the U.S. fast-food market. Whereas develop a new flavor of the month. McDonald's, Subway, Burger King, and Taco Bell trudge along at the top of the heap. Chick-fil-A has quietly grown from a Getting It Right Southeast regional favorite into the largest chicken chain and the eighth-largest quick-service food purveyor in the country. The chain sells significantly more food per restaurant than any of its competitors-three times that of Taco Bell or Wendy's seemingly a tall order to fill, this sentiment permeates every und more than four times what the KFC Colonel fries up. And it does this without even opening its doors on Sundays. With Dan Cathy was deeply affected by a note that his wife taped to annual revenues of S8 billion and annual average growth of their refrigerator. In a recent visit to a local Chick-fil-A store, 16 percent, the chicken champ from Atlanta shows no signs of she had not only received the wrong order, she had been over- slowing down. How does Chick-fil-A do it? By focusing on customers. Since the first Chick-fil-A restaurant opened for business in the late 1960s, the chain's founders have held tenaciously to the philosophy that the most sustainable way to do business is to tomer service. He initiated a program by which all Chick-fil-A provide the best possible customer experience. Also central to Chick-fil-A's mission is to "have a positive in- fluence on all who come in contact with Chick-fil-A." Although aspect of its business. Not long ago, current Chick-fil-A CEO charged. She circled the amount on her receipt, wrote "I'll be back when you get it right" next to it, and posted it on the fridge for her husband to see. That note prompted Dan Catby to double down on cus- employees were retrained to go the "second mile" in provid- ing service to everyone. That "second mile" meant not only meeting basic standards of cleanliness and politeness but going above and beyond by delivering each order to the customer's Applying Some Pressure Chick-fil-A founder S. Truett Cathy was no stranger to the res- table with unexpected touches such as a fresh-cut flower or taurant business. Owning and operating restaurants in Georgia ground pepper for salads. in the 1940s, "50s, and '60s, he was led by his experience to investigate a better (and faster) way to cook chicken. He dis service Chick-fil-A's customers have come to expect as well as covered a pressure fryer that could cook a chicken breast in the innovative spirit that makes such service possible: the same amount of time it took to cook a fast-food burger. Developing the chicken sandwich as a burger alternative, he registered the name "Chick-fil-A. Inc." and opened the first Chick-fil-A restaurant in 1967. The experience of a recent patron illustrates the level of My đaughter and I stopped ut Chick-fil-A on our way home. The purking lot was full, the drive-thru was packed... but the love we have for the chicken sandwiches and waffle potato fries! So we decided it was worth the wait. As we walked up the sidewalk, there were two staff members greeting every car in the drive-thru and taking ceders on littie tablets. A manager was making his rounds around the building outside smiling and waving at cars as they were leaving. When we came inside, the place was packed! We were greeted immediately by the cashiers. Seth happened to take our order. He had a big smile, wonderful manners, spoke clearly and had great energy as a teenager! He gave us a number and said he'd be right out with our drinks. We were able to sit at a table as the other guests were leaving and before we could even pet settled our drinks were on the table While Seth started to walk away, our food was deliv ered by another very friendly person. Both myself and my 15-year- old daughter commented on how fast it all happened. We were so shocked that we started commenting on the large groups arriving behind us, and began watching in amazement, not only inside but cutside! The compuny began expanding immediately, although at a much slower pace than the market leaders. Even today, Chick- fil-A adds only about 100 new stores each year. Although it now has more than 2.200 stores throughout the United States, that number is relatively small compared to KFC's 4,100, McDon- ald's 14.000, and Subway's 27,000. Chick-fil-A's controlled growth ties directly to its "customer first" mantra. As a family- owned operation. the company has never deviated from its core slow-growth strategy has enabled that ability to "get better." As another way to perfect its business, the company has also stuck to a limited menu. The original breaded chicken sandwich remains at the core of Chick-fil-A's menu today- "a boneless breast of chicken seasoned to perfection, hand- breaded, pressure cooked in 100% refined peanut oil and served on a toasted, buttered bun with dill pickle chips." In fact, the Everyone behind the counter worked together, used manners, and smiled. The teamwork was amazing! Then Ron, a gray headed friendly man, mad his way from table to table, checking on guests, giving drink sefills, and trading coloring books for small ice cream cones with sprinkles for linle kids. He checked an us twice and Every year, as the accolades roll in, it is apparent that Chick- fil-A's customer-centric culture is more than just talk. Among the many competitors, Chick-nl-A was ranked number one in cus- tomer service in the most recent American Customer Service Sat- isfaction Index (ACSI) for fast-food chains. Chick-fil-A took the filled our drinks once. Recently, the company instituted the parent's valet service." inviting parents juggling small children to go through the drive- through, place their order, park, and make their way inside the store. By the time the family gets inside, its meal is waiting on placemats at a table with high chairs in place. But beyond the tactics that are taught as a matter of standard policy, Chick-fil-A also trains employees to look for special ways to serve-such as retrieving dental appliances from dumpsters or delivering smart- phones and wallets that customers have left behind. same top spot in surveys by the Temkin Group and Consumer Reports. The most cited reason for these achievements was em- ployees described as having a "pleasant demeanor," making eye contact, and saying "please" and "thank you." After decades of phenomenal growth and success, Chick- fil-A is giving the cows a break, "The cows are an integral part of the brand. They're our mascot, if you will," says Jon Bridges, chief marketing officer for Chick-fil-A. "But they aren't the brand. The brand is bigger than that." The cows haven't disap- peared, they've just changed pastures as the brand's promotion- al messages have shifted to tell engaging stories about the food, people, and service that make the brand so special. It's a risky move. With Chick-fil-A growing faster than any other major fast-food chain, it begs the question as to whether such a drastic change in the brand's symbolism will sustain its current growth for years to come or send customers out cow tipping. Give Them Something to Do Beyond high levels of in-store service, Chick-fil-A has focused on other brand-building elements that enhance the customer experience. The brand got a big boost when the Chick-fil-A cows made their promotional debut as three-dimensional char- acters on billbourds with the now famous slogan "EAT MORE CHIKIN." The beloved bovines and their self-preservation message have been a constant across Chick-fil-A promotional materials for more than 23 years. They've also been the lynch- pin for another Chick-fil-A customer experience enhancing strategy-engage customers by giving them something to do. When it comes to giving customers "something to do," Chick-fil-A doesn't fool around. For starters, there's "Cow Ap- preciation Day"-a day set aside every July when customers who go to any Chick-fil-A store dressed as a cow get a free en- tree. Last year, the 12th anniversary of this annual event, about 1.8 million cow-clad customers cashed in on the offer. Another tradition for brand loyalists is to camp out prior to the opening of a new restaurant. Chick-fil-A encourages this ar- dent activity with its "First 100" promotion-un officially sanc- tioned event in which the company presents vouchers for a full year's worth of Chick-fil-A meals to the first 100 people in line for each new restaurant opening. Dan Cathy himself has been known to camp out with customers, signing T-shirts, posing for pictures, and personally handing coupons to the winners. And whereas some customer-centric giveaways are regular events, others pop up randomly. Take the most recent "family chal- lenge." which awards free ice cream cones to any dine-in cus- tomers who relinquish their smartphones to a "cell phone coop" for the duration of their meals. To keep customers engaged when they aren't in the stores, Chick-fil-A has become an expert in social and digital media. It's app, Chick-fil-A One, jumped to the number one spot on iTunes only hours after being announced. Nine days later, more than a million customers had downloaded the app, giving them the abil- ity to place and customize their orders, pay in advance, and skip the lines at the register. And in a recent survey by social media tracker Engagement Labs, Chick-fl-A was ranked number one and erowned the favorite American brand on all major social me- dia platforms, including Facebook. Twitter, and Instagrum. Prior to this recent announcement, one estimate has Chick- fil-A on track to leapfrog Dunkin". Taco Bell. Burger King. Wendy's, and Subway to become the thind-largest fast-food chain in the United States, by 2020. At that point, Chick-fil- A will trail only Starbucks and McDonald's, Clearly. all this growth is no accident. As one food industry analyst states, "It's about trying to maintain high levels of service, high quality, not deviating dramatically, and giving customers an idea of what to expect." As long as Chick-fil-A continues to make customers the number one priority, we can expect to find more and more access to those serumptious chicken sandwiches. Soanves: Cheyenne Buckingham, "Fast Food Chains with the Best (and Worst) Service." 24/7 Wall St., July 26, 2018, htps://247wallst.com/ special-report/2017/07/26/fast-food-chains-with-the-best-and- worst-service/2/: "The QSR 50," www.asmagacine.com/content /gsr50-2017-top-50-chart, accessed June 2018: Jessica Wohl, "Chick-fil-A Drops the Richards Group after 22 Years." Advertising Age, July 21. 2016. http://adage.com/article/emo-strategylchick- fil-a-drops-richards-group-after-22-years/30S057/: Michael Bur- tiromo, "Chick-fil-A to Become Nation's Third-Largest Fast Food Restaurant by 2020, Analysts Say," Fur News. April 3. 2018, www. foxnews.com/food-drink/2018/04/03/chick-fil-to-become-nations- third-largest-fast-food-restaurant-by-2020-analysts-say.html: BUS 230 Principles of Marketing Case #4 (30 points) – This assignment is an individual effort and your work should be carefully edited before submitting it. • To carn maximum points, you need to correctly and completely answer all of the questions. Specifically include the appropriate marketing terminology to support your answers. This assignment is to be completed within the "Closed Universe" of our classroom. All you need to complete this assignment is the case, your Study Guide, textbook and class notes. Other sources are not permitted. Should you choose to use other sources, you will receive a zero for the assignment. Chick-fil-A Each question is worth 10 points. 1. Consumer Product Classes: A. Describe a situation when a Chick-fil-A customer is demonstrating the behavior associated with the purchase of a shopping product. B. Describe a situation (different from your previous answer) when a Chick-fil- A customer is demonstrating the behavior associated with the purchase of a specialty product. 2. The "product' associated with Chick-fil-A is more than chicken sandwiches and waffle fries. Think about the consumer experience at a Chick-fil-A location and select two (2) characteristics of services and evaluate how Chick-fil-A has used these characteristics to its advantage. 3. Using case specifics, explain how Chick-fil-A created brand equity for its business. company's trademarked slogan-"We didn't invent the chicken, just the chicken sandwich"-has kept the company on track for decades. Although it has carefully and strategically added other items to the menu, it's the iconic chicken sandwich in all its varieties that primarily drives the brand's image and the com- pany's revenues. This focus has helped the company give cus- tomers what they want year after year without being tempted to Company Case 1 Chick-fil-A: Getting Better before Getting Bigger Chick-fil-A is dominating the U.S. fast-food market. Whereas develop a new flavor of the month. McDonald's, Subway, Burger King, and Taco Bell trudge along at the top of the heap. Chick-fil-A has quietly grown from a Getting It Right Southeast regional favorite into the largest chicken chain and the eighth-largest quick-service food purveyor in the country. The chain sells significantly more food per restaurant than any of its competitors-three times that of Taco Bell or Wendy's seemingly a tall order to fill, this sentiment permeates every und more than four times what the KFC Colonel fries up. And it does this without even opening its doors on Sundays. With Dan Cathy was deeply affected by a note that his wife taped to annual revenues of S8 billion and annual average growth of their refrigerator. In a recent visit to a local Chick-fil-A store, 16 percent, the chicken champ from Atlanta shows no signs of she had not only received the wrong order, she had been over- slowing down. How does Chick-fil-A do it? By focusing on customers. Since the first Chick-fil-A restaurant opened for business in the late 1960s, the chain's founders have held tenaciously to the philosophy that the most sustainable way to do business is to tomer service. He initiated a program by which all Chick-fil-A provide the best possible customer experience. Also central to Chick-fil-A's mission is to "have a positive in- fluence on all who come in contact with Chick-fil-A." Although aspect of its business. Not long ago, current Chick-fil-A CEO charged. She circled the amount on her receipt, wrote "I'll be back when you get it right" next to it, and posted it on the fridge for her husband to see. That note prompted Dan Catby to double down on cus- employees were retrained to go the "second mile" in provid- ing service to everyone. That "second mile" meant not only meeting basic standards of cleanliness and politeness but going above and beyond by delivering each order to the customer's Applying Some Pressure Chick-fil-A founder S. Truett Cathy was no stranger to the res- table with unexpected touches such as a fresh-cut flower or taurant business. Owning and operating restaurants in Georgia ground pepper for salads. in the 1940s, "50s, and '60s, he was led by his experience to investigate a better (and faster) way to cook chicken. He dis service Chick-fil-A's customers have come to expect as well as covered a pressure fryer that could cook a chicken breast in the innovative spirit that makes such service possible: the same amount of time it took to cook a fast-food burger. Developing the chicken sandwich as a burger alternative, he registered the name "Chick-fil-A. Inc." and opened the first Chick-fil-A restaurant in 1967. The experience of a recent patron illustrates the level of My đaughter and I stopped ut Chick-fil-A on our way home. The purking lot was full, the drive-thru was packed... but the love we have for the chicken sandwiches and waffle potato fries! So we decided it was worth the wait. As we walked up the sidewalk, there were two staff members greeting every car in the drive-thru and taking ceders on littie tablets. A manager was making his rounds around the building outside smiling and waving at cars as they were leaving. When we came inside, the place was packed! We were greeted immediately by the cashiers. Seth happened to take our order. He had a big smile, wonderful manners, spoke clearly and had great energy as a teenager! He gave us a number and said he'd be right out with our drinks. We were able to sit at a table as the other guests were leaving and before we could even pet settled our drinks were on the table While Seth started to walk away, our food was deliv ered by another very friendly person. Both myself and my 15-year- old daughter commented on how fast it all happened. We were so shocked that we started commenting on the large groups arriving behind us, and began watching in amazement, not only inside but cutside! The compuny began expanding immediately, although at a much slower pace than the market leaders. Even today, Chick- fil-A adds only about 100 new stores each year. Although it now has more than 2.200 stores throughout the United States, that number is relatively small compared to KFC's 4,100, McDon- ald's 14.000, and Subway's 27,000. Chick-fil-A's controlled growth ties directly to its "customer first" mantra. As a family- owned operation. the company has never deviated from its core slow-growth strategy has enabled that ability to "get better." As another way to perfect its business, the company has also stuck to a limited menu. The original breaded chicken sandwich remains at the core of Chick-fil-A's menu today- "a boneless breast of chicken seasoned to perfection, hand- breaded, pressure cooked in 100% refined peanut oil and served on a toasted, buttered bun with dill pickle chips." In fact, the Everyone behind the counter worked together, used manners, and smiled. The teamwork was amazing! Then Ron, a gray headed friendly man, mad his way from table to table, checking on guests, giving drink sefills, and trading coloring books for small ice cream cones with sprinkles for linle kids. He checked an us twice and Every year, as the accolades roll in, it is apparent that Chick- fil-A's customer-centric culture is more than just talk. Among the many competitors, Chick-nl-A was ranked number one in cus- tomer service in the most recent American Customer Service Sat- isfaction Index (ACSI) for fast-food chains. Chick-fil-A took the filled our drinks once. Recently, the company instituted the parent's valet service." inviting parents juggling small children to go through the drive- through, place their order, park, and make their way inside the store. By the time the family gets inside, its meal is waiting on placemats at a table with high chairs in place. But beyond the tactics that are taught as a matter of standard policy, Chick-fil-A also trains employees to look for special ways to serve-such as retrieving dental appliances from dumpsters or delivering smart- phones and wallets that customers have left behind. same top spot in surveys by the Temkin Group and Consumer Reports. The most cited reason for these achievements was em- ployees described as having a "pleasant demeanor," making eye contact, and saying "please" and "thank you." After decades of phenomenal growth and success, Chick- fil-A is giving the cows a break, "The cows are an integral part of the brand. They're our mascot, if you will," says Jon Bridges, chief marketing officer for Chick-fil-A. "But they aren't the brand. The brand is bigger than that." The cows haven't disap- peared, they've just changed pastures as the brand's promotion- al messages have shifted to tell engaging stories about the food, people, and service that make the brand so special. It's a risky move. With Chick-fil-A growing faster than any other major fast-food chain, it begs the question as to whether such a drastic change in the brand's symbolism will sustain its current growth for years to come or send customers out cow tipping. Give Them Something to Do Beyond high levels of in-store service, Chick-fil-A has focused on other brand-building elements that enhance the customer experience. The brand got a big boost when the Chick-fil-A cows made their promotional debut as three-dimensional char- acters on billbourds with the now famous slogan "EAT MORE CHIKIN." The beloved bovines and their self-preservation message have been a constant across Chick-fil-A promotional materials for more than 23 years. They've also been the lynch- pin for another Chick-fil-A customer experience enhancing strategy-engage customers by giving them something to do. When it comes to giving customers "something to do," Chick-fil-A doesn't fool around. For starters, there's "Cow Ap- preciation Day"-a day set aside every July when customers who go to any Chick-fil-A store dressed as a cow get a free en- tree. Last year, the 12th anniversary of this annual event, about 1.8 million cow-clad customers cashed in on the offer. Another tradition for brand loyalists is to camp out prior to the opening of a new restaurant. Chick-fil-A encourages this ar- dent activity with its "First 100" promotion-un officially sanc- tioned event in which the company presents vouchers for a full year's worth of Chick-fil-A meals to the first 100 people in line for each new restaurant opening. Dan Cathy himself has been known to camp out with customers, signing T-shirts, posing for pictures, and personally handing coupons to the winners. And whereas some customer-centric giveaways are regular events, others pop up randomly. Take the most recent "family chal- lenge." which awards free ice cream cones to any dine-in cus- tomers who relinquish their smartphones to a "cell phone coop" for the duration of their meals. To keep customers engaged when they aren't in the stores, Chick-fil-A has become an expert in social and digital media. It's app, Chick-fil-A One, jumped to the number one spot on iTunes only hours after being announced. Nine days later, more than a million customers had downloaded the app, giving them the abil- ity to place and customize their orders, pay in advance, and skip the lines at the register. And in a recent survey by social media tracker Engagement Labs, Chick-fl-A was ranked number one and erowned the favorite American brand on all major social me- dia platforms, including Facebook. Twitter, and Instagrum. Prior to this recent announcement, one estimate has Chick- fil-A on track to leapfrog Dunkin". Taco Bell. Burger King. Wendy's, and Subway to become the thind-largest fast-food chain in the United States, by 2020. At that point, Chick-fil- A will trail only Starbucks and McDonald's, Clearly. all this growth is no accident. As one food industry analyst states, "It's about trying to maintain high levels of service, high quality, not deviating dramatically, and giving customers an idea of what to expect." As long as Chick-fil-A continues to make customers the number one priority, we can expect to find more and more access to those serumptious chicken sandwiches. Soanves: Cheyenne Buckingham, "Fast Food Chains with the Best (and Worst) Service." 24/7 Wall St., July 26, 2018, htps://247wallst.com/ special-report/2017/07/26/fast-food-chains-with-the-best-and- worst-service/2/: "The QSR 50," www.asmagacine.com/content /gsr50-2017-top-50-chart, accessed June 2018: Jessica Wohl, "Chick-fil-A Drops the Richards Group after 22 Years." Advertising Age, July 21. 2016. http://adage.com/article/emo-strategylchick- fil-a-drops-richards-group-after-22-years/30S057/: Michael Bur- tiromo, "Chick-fil-A to Become Nation's Third-Largest Fast Food Restaurant by 2020, Analysts Say," Fur News. April 3. 2018, www. foxnews.com/food-drink/2018/04/03/chick-fil-to-become-nations- third-largest-fast-food-restaurant-by-2020-analysts-say.html: BUS 230 Principles of Marketing Case #4 (30 points) – This assignment is an individual effort and your work should be carefully edited before submitting it. • To carn maximum points, you need to correctly and completely answer all of the questions. Specifically include the appropriate marketing terminology to support your answers. This assignment is to be completed within the "Closed Universe" of our classroom. All you need to complete this assignment is the case, your Study Guide, textbook and class notes. Other sources are not permitted. Should you choose to use other sources, you will receive a zero for the assignment. Chick-fil-A Each question is worth 10 points. 1. Consumer Product Classes: A. Describe a situation when a Chick-fil-A customer is demonstrating the behavior associated with the purchase of a shopping product. B. Describe a situation (different from your previous answer) when a Chick-fil- A customer is demonstrating the behavior associated with the purchase of a specialty product. 2. The "product' associated with Chick-fil-A is more than chicken sandwiches and waffle fries. Think about the consumer experience at a Chick-fil-A location and select two (2) characteristics of services and evaluate how Chick-fil-A has used these characteristics to its advantage. 3. Using case specifics, explain how Chick-fil-A created brand equity for its business.
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