Objectives of the case
Daryl Buckmeister, the CEO of The Chicken Coop, a Quick Service Restaurant (QSR) is faced with the problem of declining sales in 20 of the firm’s 76 stores for the first time in the history of the firm. These stores constitute 32% of the company’s revenues and this problem had to be addressed immediately in order to avoid further aggravation. The Chicken Coop, with the motto “We are chicken”, was started with the objective of providing the best-tasting meal around by specializing in the preparation and delivery of chicken. Two of the top managers of the firm, Anita McMichael and Trevor Wallace pointed out the lack of formal market research by the company and emphasised on its immediate implementation. However, they failed to agree on the methods of implementation of this. The CEO must now decide on a. whether to invest in formal market research methods or not, b. which all programs (suggested by the two top managers) to invest in and c. how much to invest in each.
Major marketing problem
a. Dilution of brand image – The introduction of new items like “chick pizza” may have resulted in dilution of the brand image and mission of the company.
b. Customer dissatisfaction – with prices and menu items as compared to competitors’ offerings (due to deviations from performance standards in the kitchen and inadequately trained staff).
c. Marketing spending – uncertainty regarding the message coop’s advertisements were conveying; need to introduce something beyond the “me too” approach.
d. Positioning – introduction of co-branding, introduction of breakfast items or home delivery as potential growth opportunities
e. No sales strategy – Lack of focus on a strategy like low prices or high degree of product differentiation, product diversification etc
How the company is addressing the problem, limitations of the outcomes proposed
a. BUCKMEISTER’S IDEA –
Idea – introduction of postcard-sized customer feedback cards which would be placed at the...