Marketing Research Decisions in Chic-Chicken Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Marketing Research Decisions in Chic-Chicken Case Study Help

Introduction

Chic-Chicken is a fast-food chain operating in the highly competitive fast-food industry. The fast-food industry is one of the largest and most profitable industries globally, with a market size of approximately $651 billion in 2019 While facing a decline in sales in 2013 due to the higher global competition. The industry is characterized by intense competition, rapid changes in consumer tastes and preferences, and high levels of customer expectations regarding quality, price, and convenience.

The purpose of this report is to present the findings of the marketing research study conducted for Chic-Chicken. The report includes an analysis of the problem statement, identification of alternatives, recommended alternative, implementation plan, and conclusion.

The study identified several key factors contributing to the decline in sales and profits at Chic-Chicken, including increased competition, changing customer preferences, and inadequate marketing efforts. The study recommended a range of alternative marketing strategies, including menu expansion, pricing adjustments, and targeted advertising campaigns.

The recommended alternative strategy is a comprehensive marketing plan that focuses on menu expansion and targeted advertising campaigns. The report concludes with an implementation plan outlining the steps required to implement the recommended alternative strategy. The implementation plan includes a timeline, resource allocation, and a monitoring and evaluation framework to measure the effectiveness of the strategy.

Problem Statement

Chic-Chicken is facing several challenges in its attempt to expand its business in the competitive fast-food industry. The company is struggling to increase its market share and improve its financial performance, as it faces strong competition from established players such as KFC, McDonald's, and Subway. Chic-Chicken needs to make informed marketing research decisions to address its challenges and achieve its business objectives. Some of the key problems that Chic-Chicken is facing include declining sales, lack of brand recognition, and limited market reach.

However, Chic-Chicken's market share has declined from 10% to 7% in the past year, while its competitors have increased their market share. This is a worrying trend for the company, as it may signal a lack of customer satisfaction or loyalty. Additionally, the report shows that Chic-Chicken's brand recognition is low compared to its competitors, indicating that the company needs to work on building its brand image.

Situational analysis

Marketing research findings

We conducted a marketing research study to identify the reasons for Chic-Chicken's declining sales and potential solutions to address these problems. The study surveyed 500 customers in the target market and analyzed the data using statistical techniques. The finding shows that based on the Customer's value of a varied menu around 70% of respondents stated that they would visit Chic-Chicken more often if the restaurant offered a wider range of menu options. Customers expressed a desire for vegetarian or vegan options and new flavors to be added to existing products.

Delivery services are highly valued in the industry and around 60% of respondents stated that they would prefer home delivery options, and 80% of them said they would be willing to pay a delivery fee. However, Chic-Chicken currently only offers delivery services in a limited area. Furthermore, the rewards and incentives are important while 50% of respondents stated that they would be more likely to visit Chic-Chicken if a loyalty program was implemented. They expressed a desire for rewards such as discounts, exclusive offers, and free items.

Alternatives

Based on the research findings, here are three potential alternatives for Chic-Chicken to consider:

Introduction of new menu items

Chic-Chicken can introduce new menu items that cater to different customer preferences. The research found that customers value a varied menu, and introducing new items can attract new customers and retain existing ones. For example, the chain could introduce vegetarian or vegan options, or add new flavors to its existing products.

Pros:

Can attract new customers who are looking for different menu items and can target a wide range of customers.
This approach increases customer satisfaction by providing more variety and catering to different preferences.
It has an effective role in the Chic-chicken brand presence and economic health.

Cons:

May require additional resources for research and development of new menu items.
May not be well-received by existing customers who prefer the current menu.
May require additional training for employees to prepare and serve new menu items............

Marketing Research Decisions in Chic-Chicken Case Study Help