Chick-fil-A IMC Strategy
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Client: Chick-fil-A Objective: To expand Chick-fil-A's market into East Asia.
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Chick-fil-A IMC Strategy
- 3. enigma Solving the mysteries behind your brand, so you don’t have to.
- 4. PROBLEM STATEMENTChick-Fil-A wants to expand by infiltrating into the already highly competitive fast food market of East Asia.
- 5. MARKETING OBJECTIVE Gain a 5% market share for Chick-Fil-A in the Chinese, Japanese and South Korean market for the 2017 fiscal year.
- 6. ADVERTISING OBJECTIVE Establish 50 percent brand awareness and increase favorability over competitors in China, Japan and South Korea.
- 7. TARGET AUDIENCE 18-49 year olds, middle/upper class individuals
- 9. 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
- 10. 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
- 11. 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
- 12. 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
- 13. 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
- 14. 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
- 15. 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
- 16. 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
- 17. 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
- 18. ADVERTISING STRATEGY Use standardization to promote the originality and freshness of Chick-Fil- A while using localized executions.
- 19. 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”
- 21. Standardization ad — traditional Chicken done right.
- 22. “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
- 23. 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
- 24. 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
- 25. CHINA FLOWCHART
- 26. China Mockups
- 27. 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
- 28. 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
- 29. JAPAN FLOWCHART
- 30. Japan Mockups
- 31. 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
- 32. 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
- 35. 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