Company:
For my business
model, I will be analyzing the company Chick-fil-A. From humble beginnings
as an in-mall restaurant in Atlanta to surpassing $4 billion in system-wide
sales in 2012, Chick-fil-A has redefined the chicken sandwich and fast food quality.
This privately held and family owned company actually started in 1946, when
owner Truett Cathy opened his first restaurant in Hapeville, George called Dwarf
Grill. In 1967, this transitioned to what is currently known as Chick-fil-A. The
industry category for this company is fast food. They have a variety of products
that they sell, including unmatched customer service. The products include an
assortment of breakfast, lunch, and dinner chicken-based options. Some of their
most notable products include: their famous chicken sandwiches, chicken wraps,
salads, waffle fries, and fresh squeezed lemonade. In the marketplace,
Chick-fil-A has grown to the second largest quick-service chicken restaurant
chain, behind KFC, with 1,700 locations in 39 states across America.
Interest:
Chick-fil-A to me is nothing less than an
obsession. It’s the only restaurant that I would weekly drive 15 minutes to, in order
to get the “in-store” experience. This is a ritual for me and has
literally become apart of my college schedule. I use this eating adventure every week to clear my head
and escape campus, get some good car dancing in (vital for my stress relief),
and most importantly eat some delicious food. During my internship in New York
City this summer, I was not aware that Chick-fil-A was nonexistent in the area
until my weekly craving began. Upon this startling and rather life-changing
news, I went through stages of withdrawal and depression. This is when I
realized how far my obsession had come. I know it’s crazy that something as
trivial as a fast food restaurant can have such a big impact on you. To me,
their customer service is unmatchable and I look forward to the “my pleasure”
that I receive as part of the "in-store" experience. I love that they stand true
to their values. Though they lose business, they continue to close their doors
every Sunday and use it as a “day of rest.” To me, Chick-fil-A is more than a
fast food restaurant. It’ s a part
of me and this is why I’m interested in analyzing their business model and
discovering what makes this company so loved and successful.
Customer Segments:
Customer Segments:
When analyzing
the mass market of Chick-fil-A, three strong customer segments came to mind.
The first, is religious people. With strong religious values such as closing
operations on Sundays, playing Christian music in most stores, and standing
behind the moral principles that they believe in, Chick-fil-A attracts a strong
religious following. The second customer segment is college students. With
multiple locations spread throughout college campus’ in America, Chick-fil-A’s
great taste and convenience has been attracting masses of college students. To
prove this customer segment, I decided to walk into the Texas Union on campus
around lunchtime and took a picture of the long line that had formed in front
of Chick-fil-A. The third and last customer segment that comes to mind is that
of families. Beyond the great quality food, the cow mascot and fun-filled playgrounds help provide entertainment for the whole family.
Value Proposition:
For each of
these three customer segments, there are different products and services that create
value. When analyzing the things that create value for the religious customer
segment, customization comes to mind. From the small things like playing
Christian music in the restaurant to a larger scale such as closing on Sundays,
Chick-fil-A is customizing their company to fit their values and the religious
segment appreciates these attributes. When evaluating the college student value
proposition, I feel like I have insight advantage due to my current status.
This segments value proposition is accessibility. With busy schedules and
limited time to eat, college students are looking for quick accessibility and
Chick-fil-A offers that with multiple college campus locations. On our college
campus alone, we have 3 Chick-fil-A restaurants on or near campus. Lastly, I
analyzed the value proposition for the family customer segment. Their values
focus on design, especially those that have young kids. The design of
Chick-fil-A is strongly centered around their open in-store atmosphere, kid-loving cow
mascot, and entertaining playgrounds. This strongly appeals to families. Chick-fil-A
is one of those companies that have had much success with many different
customer segments, by providing the values that they want and need in a fast
food environment. I find this company very interesting and that is why I want
to focus and research more in-depth on their business model.
Works Cited:
"Company Fact Sheet." Chick-fil-A. N.p., n.d. Web. 9 Oct. 2013.
<http://www.chick-fil-a.com/Company/Highlights-Fact-Sheets>.
McConnell, Alaina, and Kim Bhasin. "RANKED:
The Most Popular Fast Food
Restaurants In
America." Business Insider. N.p., n.d. Web. 9 Oct. 2013.
<http://www.businessinsider.com/
the-most-popular-fast-food-restaurants-in-america-2012-7?op=1>.
Hi Conrad - Wow, you are obsessed. :-) I used to live by Chik-Fil-A in the summers, growing up, spending all of my time at the mall. Loved those waffle fries! It's actually amazing how little they have changed over the years and, yet, how relevant they still seem. I'm glad to see you get to at least a page, but I still want to encourage you to continue to push and explore your thoughts on these. I think you've identified 3 good customer segments, along with a good start for the value propositions. I'd be curious to know, as you build your paper, if you think that their religious roots and the recent comments and efforts by their CEO affect their ability to build relationships with other customer segments. It's a tightrope that I know the people in the company have struggled with recently. If you don't want to address that, it's ok - I was just curious to hear your thoughts on it.
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