Guillermo Alcantar

Seongmin Choi

Spencer Lott

Axel Van Cleve

Zachary Wismer

Chick-fil-A: Chicken-n-Waffle Sandwich

I.Executive Summary

Chick-fil-A’s innovation team Axel Van Cleve, Guillermo Alcantar, Seongmin Choi,

Spencer Lott, and Zachary Wismer have created an innovative product, “Chicken-n-Waffle

Sandwich.” The reason the innovation team chose this specific product is to continue making great

food products while continuing to impact Chick-Fil-A’s relationship with the public and

maintaining the company’s goals and missions. The Chicken-n-Waffle sandwich will be launched

in the third week of August in California franchisees on the West Coast and Georgia franchisees

on the East Coast. The reason we chose California and Georgia as our trial states is because of the

diversity of race and the amount of franchisees Chick-fil-A has. We specifically chose the third

week of August because universities allow students enter the dormitories around that time and the

fall semester typically begins either at the end of August or at the beginning of September. School

cafeterias are likely to be closed, and people will visit Chick-fil-A to try the new product and

ultimately help the company receive test data. After tests, the new Chicken-n-Waffle sandwich

will be implemented in to Chick-fil-a’s lineup of amazing sandwiches and food products and

continue to grow the profits of the company.

II. Company Description

 In 1946, a man named Truett Cathy and his brother decided to open a diner in Atlanta

called The Dwarf House that served fried chicken sandwiches. In 1967, Cathy wanted to

incorporate his religious beliefs as he founded and opened the first Chick-fil-A. Cathy’s purpose

was to glorify God by having a positive influence on every customer. He did this by closing each

store on Sunday, incorporating food donations to the poor, giving scholarships to employees, and

holding local events for the community. The business continued to grow because it was one of a

kind. The different products Chick-fil-A sells include pressure cooked chicken breast sandwiches,

pressure cooked chicken nuggets, pressure cooked chicken fingers, fries, and salads. He made the

value of each product somewhere in the middle so it would be accessible for lower-income families

while keeping prices high enough to be profitable. A regular Chick-fil-A sandwich costs about

$3.65 while all the other items cost around the same amount. These products are unique because

there are not many companies that sell chicken sandwiches, and Chick-fil-A cooks them in a very

different way. There are many possibilities for growth, but one major possibility is bringing new

products like the Chicken-n-Waffle sandwich to market, which would help attract more customers

than it already has.

III. Mission and Goals

Since Chick-fil-A opened their first restaurant in 1946, the franchisees expanded and

Chick-fil-A has made $5.8 billion in 2014, $6 billion in 2015, $7.88 billion in 2016, and $9 billion

in 2017. This year, Chick-fil-A’s financial growth and profit are expected to grow more through

the increase of the franchisees to different states. The launch of a five-story Chick-fil-A restaurant

in the financial district of New York City at the end of March is expected to grow profits even

further. Since NYC is such a popular tourist destination, Chick-fil-A’s research and decision came

about from their desire for profit growth and increased brand recognition. At least $3 million of
revenue is expected. However, at the foundation of their financial goals and strategies lie their

purpose.

Chick-fil-A’s mission statement is “to glorify God by being a faithful steward of all that is

entrusted to us and to have a positive influence on all who come into contact with Chick-fil-A.”

Its goal is to be a part of its customers’ lives and the communities it serves. The reason all Chick-

fil-A stores are closed on Sunday is to give employees a day to rest and worship. Its philosophy is

to devote themselves to others through the time, love, and resources without any expectation in

return. The company also contributes to the society in three different areas: food donations,

providing scholarships to its employees, and holding local events to positively impact the local

community. Chick-fil-A’s focus, as it is a well-known Christian fast-food company, is to show

their love of neighbors through their dedication to help in various ways.

IV. Core Competencies

Chick-fil-A has four main advantages that stand out amongst the competition. First, Chick-

fil-A offers a superior product. The company spent more than $50 million dollars over 11 years

to develop the recipe for the new grilled chicken sandwich, and this investment is

noticeable. Products can be sold at higher prices compared to other fast-food brands due to the

high quality of the food. Second, Chick-fil-A has a unique franchise model, in which potential

franchisees only need to provide $10,000 up front. Most companies require potential franchisees

to pay hundreds of thousands of dollars or more to begin, but Chick-fil-A’s policy allows them to

choose franchisees based on character rather than minimum capital. Third, Chick-fil-A’s customer

service stands out immensely, and is consistently ranked number one in ratings around the country

for fast-food. Employees undergo training to contribute to a culture of understanding and

happiness, which effectually creates hard-working, cheery staff who go out of the way to make
sure customers are enjoying their dining experiences. Lastly, Chick-fil-A is largely focused on

active involvement in the community. Every store contributes to communities in some way as part

of operations, and Chick-fil-A operators give to countless charities. Although other fast-food

companies do serve the public around them in some way, each and every Chick-fil-A has an active

role in the surrounding area, helping to build relationships and promote the brand.

V. Situation Analysis

Marketing Environment:

1. Internal Environment

Chick-fil-A offers a positive internal environment. From the employee to employee

relationships, and employee to customer relationships, Chick-fil-A is known for its positive energy

and positivity in all of its restaurants. Whenever a customer enters a Chick-fil-A, they are always

warmly greeted by an employee. The internal environment of Chick-fil-A will affect the success

of the Chicken-n-Waffle sandwich. Whether it is executives, the marketing team, or day to day

employees, all of Chick-fil-A needs to be on board with the new product. A collective effort of the

marketing teams and day employees are crucial to the success of the new sandwich. Employees

need to enthusiastically sell this new product and gain a positive following for this sandwich. Just

like how the original chicken sandwich has become so popular, the Chick-fil-A company should

focus their efforts towards the new Chicken-n-Waffle sandwich.

2. Competitive Environment

Competitive environment affects Chick-fil-A because Chick-fil-A is competing with many

different types of fast food chains that may offer more varieties, grocery stores, and sit-down

restaurants. With competitors, Chick-fil-A effects on their controversy. Most consumers aggrieve

about Cathy’s statement: “the availability of substitutes could have been potentially harmful for
Chick-fil-A because that means lost profits” (Lamb, Hair, McDaniel, chapter 4). Chick-fil-A can

make more profits by creating a Chicken-n-Waffle sandwich that customers want to buy. This

sandwich will enable them to earn more profit and to beat out other competitors. Chick-fil-A’s

new product “Chicken-n-Waffle sandwich” needs to reduce price compared to other competitors,

to make it more desirable while still offering great quality. Chick-fil-A can have competition with

KFC because both companies offer customers with its chicken theme.

Macro-environmental PEST analysis:

1. Political/Legal environment

The political and legal environment that affects the new Chicken-n-Waffle sandwich

include food and safety laws as well as complying with other legal terms. In order for Chick-fil-A

to start making their Chicken-n-Waffle sandwiches, they have to pass food and safety laws. This

includes the health standards of the sandwich itself, along with the safety procedures while

preparing the food. When naming the sandwich, Chick-fil-A has to ensure that it is not copying a

trademark name or slogan. The sandwich must be original and cannot use the direct name that

another competitor is using. Along with the name or slogan of the product, Chick-fil-A must

provide ingredients and recipes that are not a copy of other companies similar product. In order to

not get sued, Chick-fil-A must offer an altered version of other competitors’ similar product. The

political and legal environment affects the day to day operations of Chick-fil-A and the way they

introduce new food products.

2. Economic environment

The state of the economy plays a large role in Chick-fil-A’s business. Factors such as

discretionary income, unemployment, and the business cycle can all have drastic effects. 2017 has

been a great year for the US economy; recent statistics reveal that quarter 4 had increased
household income, job growth, increased wages, and high stock prices. People are spending a lot

of money, and Chick-fil-A’s sales are increasing as a result. Now would be a great time to

introduce a new product, because Chick-fil-A is only becoming more popular.

3. Social/Cultural environment

The social and cultural environment surrounding Chick-fil-A is influential in their success

and loyal customer basis. The food trends of American culture also influence Chick-fil-A’s

success. In an article about America's changing diets, DeSilver writes, “Several interesting shifts

are happening within food groups. For the past decade, for instance, chicken has topped beef as

the most-consumed meat. In 2014, Americans ate an average of 47.9 pounds of chicken a year (2.1

ounces a day), versus 39.4 pounds (1.7 ounces a day) of beef. While average chicken consumption

has more than doubled since 1970, beef has fallen by more than a third” (Desilver 2016).

Americans are buying more and more meat, as compared to before. With trends of higher chicken

consumption, Chick-fil-A has succeeded with their current popular chicken sandwiches, but need

to continue to find further foods that will satisfy the American diet needs.

Among young fast food consumers, popular food trends lead to increases in consumption

of these foods. Social media has a big role in the spread of food trends and the changing dietary

wants of younger generation consumers. The love for food trends can be traced directly to social

media. In an article about the way that social media changes the way we eat, Tandoh writes, “There

is a big generation gap in this movement, though. According to the Waitrose report, 18- to 24-year

olds are five times more likely to share photos of their food online than the over 55s – and that is

certainly reflected in the types of cuisine, styling and tone that are popular in the online food world”

(Tandoh 2016). There is a clear correlation with the way that social media is affecting the food

trends surrounding the restaurant business. The social and cultural environment surrounding
Chick-fil-A is responsive to food trends, which can be seen in the want for chicken and waffle

sandwiches.

The social and cultural environment around Chick-fil-A is also very influenced by their

religious affiliations. Chick-fil-A is known for being a Christian fast food chain. The restaurant is

closed on Sundays, and plays Christian worship music in all their locations. This Christian

environment has turned some customers away, but has also gained a lot of popularity from many

customers that associate with Christianity.

4. Technology environment

Chick-fil-A currently has two innovation centers, called “Hatch” (2012) and “Test

Kitchen” (2014). They opened the second innovation center on 6,000 square feet in Georgia Tech

to work with engineering and computer science students to improve customer satisfaction. “Hatch”

focuses their research on restaurant designs, train team members, franchise operations,

improvement of the customers’ experience, and generating business. “Test Kitchen” mainly

focuses on Chick-fil-A’s menu improvements.

Chick-fil-A can focus efforts to create a quality Chicken-n-Waffle sandwich. They can use

the “Hatch” innovation center to research how their product’s design can fit with their restaurant

designs, how they will operate on franchise, and how this product can benefit customers. “Test

Kitchen” innovation center will work hard on this product since it is a different form of sandwich.

Since Chick-fil-A does not currently have a chicken and waffle sandwich, they can work on the

waffles to differentiate themselves with competitors as they did for their chicken, unique sauces,

and french fries. Lastly, their new innovation center can research on how a chicken and waffle

sandwich can fit into their food service design.

SWOT Analysis:
 Strengths: Opportunities:

a. Chick-fil-A is reputable for good a. A chicken and waffle sandwich has a

tasting chicken sandwiches. higher potential to make more profits.

b. They have loyal customers who b. Expand the customers who are fan of

will be willing to try their new product. chicken and waffle sandwiches.

c. They are known for using high c. A chicken and waffle combination can be

quality ingredients. used in other forms such as a meal in a plate with

d. Chick-fil-A offers chicken at more vegetables.

reasonable prices then other chicken and

waffle competitors.

Weaknesses: Threats:

a. The restaurant is not known for a. Competitors such as IHOP, Roscoe’s, and

making waffles. Bruxie already have reputation for the product.

b. They have to get waffle makers, b. The risk of a new product line that many

which will bring additional costs for customers may not like.

machinery consumptions. c. Potential to have a higher price than

c. Lost income from not being open regular chick sandwiches ($4.30) and higher

on Sundays calories (480-600).

VI: Competition

Chick-fil-A has two major direct competitors: KFC and Popeyes Chicken. Both of these

companies are well known for selling mostly chicken products. Chick-fil-A has stood out from
KFC and Popeyes through their unique training programs, customer loyalty, and drive-thru

services; they ranked much higher in all three categories in the past year years. In terms of sales

per store, Chick-fil-A averaged $4 million in 2015, as opposed to both KFC and Popeyes Chicken

with $1 million each. KFC is more positioned in the marketplace to sell chicken by itself and

focus less on sandwiches. While both KFC and Chick-fil-a are both unhealthy fast food options,

KFC stands out to be a unhealthier food choice as they have very little salad, or healthy food

options. Popeyes offers more chicken fingers products rather than sandwiches. The target market

at Popeyes is also a lot more different than Chick-fil-a. Popeyes attracts a different demographic

than Chick-fil-a and also has different types of menu options.

Chick-fil-A’s indirect competitors include any other fast food options like McDonald’s,

Burger King, Wendy’s, etc. While these options are not direct competitors since their main food

focus is not just chicken, they do offer similar food products to Chick-fil-a. These indirect

competitors are also food places that consumers may choose to eat at over Chick-fil-a.

VII: Target Market

Potential customer based on demographics:

Target Audience 1: Young male and female customers between age of 14-28

1. Description of market segment

Kids in high school and college. The youth will be a very important potential customer for the

Chicken-n-Waffle sandwich. Younger generations are more likely and willing to try new products

and services and will likely want to try the new sandwich. They are not very concerned with eating

healthy choices.

2. Percentage of sales they represent

35-40% of total sales

3. What they want/value

Younger generations want to be part of a new trend and will want to buy the new product.

4. How they would use the product

A youthful generation will want to use the product for obvious consumption, but also for posting

on social media. Kids these days are always sharing the new food they are trying on social media

platforms like Snapchat.

5. How to best reach them

The best way to reach this target market will be through social media and promotional strategies

6. Price sensitivity

Younger customers will be slightly sensitive to the price of the product, but many kids are already

spending a lot of money at Chick-fil-A on other food items.

Target Audience 2: Family audience, parents between ages 25-50 with younger kids

1. Description of market segment

Family groups that are going to Chick-fil-A will be ordering multiple different types of food items

for them and their kids. These families can usually range from 3-7 people.

2. Percentage of sales they represent

20-28% of total sales

3. What they want/value

Families want food products that are easy for them and their children to eat. Families also want to

offer food that their children think is fun. The Chicken-n-Waffle sandwich is an item that is both

delicious, fun, and easy for all family members to eat.

4. How they would use the product

Families will use this product at family events, or after sports practices. The Chicken-n-Waffle

sandwich will often be ordered to go along with many other items in drive through

5. How to best reach them

The best way to reach this target audience is by offering promotional deals with current Chick-fil-

A sandwiches to let families and kids try the new sandwich. Buy one get one offers or free

Chicken-n-Waffle sandwich gift cards will help the new product reach many more customers. By

offering a fun theme with the Chicken-n-Waffle sandwich, the product will attract the attention of

kids.

6. Price sensitivity

While the price of the new Chicken-n-Waffle sandwich will be more than just buying a regular

chicken sandwich, the average customer that goes to Chick-fil-A is not always concerned with

price. Chick-fil-A customers do not go to the restaurant to get budget deals on food, but rather go

for the quality of the product.

Potential customer based geographically:

 Urban, Suburban areas with middle income to higher income

 Big popularity in South and West Coast, specific areas include Southern California,

Alabama, Louisiana, Mississippi, Georgia

 While the sandwich is going to be released in all areas across America, these areas will

have especially high sales due to the popularity of fried chicken diet, and the already

existing chicken and waffle sandwich.

 Southern California already has some places like Bruxie and Roscoe’s that have very

popular chicken and waffle sandwiches. The already popular trend will increase the

popularity of Chick-fil-A’s new product.

Potential customer based on psychographics:

 Customer not concerned with health or eating low calorie choices

 Tends to favor quality food over economy price

 Values time with family or friends

 Enjoys trying new products and experimenting with food

 Post on social media outlets of food they eat

VIII: Marketing Mix

1. Product Strategy

The core advantage of Chicken-n-Waffle sandwich is that not only it is already a known

fusion food throughout the U.S, but the combination of chicken and waffle is actually considered

as one of the soul foods of the United States. Restaurants such as IHOP and Roscoe’s have made

chicken and waffle combination either as a sandwich or a meal and have shown that this

combination has been successful. In addition, Chick-fil-A’s reputation for its chicken patty and

different types of sauces is known throughout the U.S. When people want to save time and eat

healthy food, one of the places they think is Chick-fil-A, and our company can build the

relationship more deeply with our customers through Chicken-n-Waffle sandwiches.

The quality of Chick-fil-A’s food and the professional spirit are proven to be one of the best

among the customers compared to other fast-food restaurants. Regarding how they are going to

make waffles, they have an innovation center called “Test Chicken” which works to figure out

how to make and improve their products. The recommended waffle maker company is called Oster,

a flip nonstick Belgian waffle maker. The reason we chose to suggest to partner with Oster is that

they are known to be the most effective waffle maker that makes a waffle that is crispy on the

outside and soft on the inside. Besides the waffle maker, Chick-fil-A has all the needs to make
their new products. A bun and a waffle require similar ingredients: flour, yeast, sugar, butter, and

egg. The only difference is that a bun needs water and a waffle needs milk.

The new product will be called “Chicken-n-Waffle Sandwich.” We chose this particular name

to stay with Chick-fil-A’s philosophy of naming the products. The packaging will be the same as

its regular sandwich with different length adjusted to the waffle’s size. Regarding the scope of the

product line, the project team decided to come out with four products: Chicken-n-Waffle sandwich,

Chick-fil-A deluxe waffle sandwich, Spicy waffle sandwich, and Spicy deluxe waffle sandwich.

The reason the project team chose the basic product line is that chicken and waffle sandwiches

generally have fried chicken.

Our segmented target audience is people between 14 and 45 years old. The number of focus

groups will be around five, with 200 people in each group. This project will proceed in California

(107 franchisees) in the west coast and in Georgia (214 franchisees) in the east coast because they

have the most franchisees on each side. Before launching the product, we will test the product with

people aged between 14 and 45 years old as they are segmented targets. Each person will put on a

blindfold and try various chicken and waffle sandwich. There will be a special sauce made

specifically for the Chicken-n-Waffle sandwich. Our goal of making a new sauce is to distinguish

Chick-fil-A’s Chicken-n-Waffle sandwich by keeping the promise of good quality and taste. The

goal is to make the customers say, “So good!”

The key benefits and function are to better serve people. The founder of Chick-fil-A, S. Truett

Cathy, said, “We should be about more than just selling chicken. We should be a part of our

customers’ lives and the communities in which we serve.” Chick-fil-A has kept its word and

contributed to its philosophy by making a gluten-free bun in 2017. It is another year and is time

for Chick-fil-A to show another innovation through the Chicken-n-Waffle sandwich.

2. Distribution Strategy

Since Chick-fil-A is such a large company, they work with many different channels of

distribution. They partner with many different distribution centers to send their food to its many

locations. To start, the process begins with producers of chicken, who send to companies who

package the meat and create cleaner cuts. After this, large trucks carry the finished products to

locations to sell to customers. Most of Chick-fil-A’s other ingredients are grown on natural

plantations that are guaranteed to be processed safely. Customer safety is a top priority for Chick-

fil-A, and they check each stage of the distribution process to make sure that they meet standards

of safety and are processed correctly.

The Chicken-n-Waffle sandwich should not be distributed all at once to every location but

should be tested in a few select stores at the beginning. As mentioned earlier, the product will first

be tested in California and Georgia to gather data on success rates and customer feedback. After

adjusting for customer opinion, we will roll out the final product to the rest of the country.

3. Promotion Strategy

Chick-fil-A will be making advertising campaigns in which they create TV commercials

that attract customers to try out their new Chicken-n-Waffle sandwich. They will focus on creating

TV commercials that will reach large audiences. Chick-fil-A will also focus on their target

audience, which is young families, adults, and the youth, and specialize the commercials to these

audiences. They will make TV commercials that attract the attention of these target audience, and

entice them to try out the new product. Chick-fil-A will be advertising at large sporting events and

TV viewings that they already currently sponsor in order to attract more attention to the new

sandwich. Another promotional strategy that Chick-fil-A will use to their advantage is social

media. The social media channels will be Instagram, Facebook, Twitter, and commercials through
Snapchat. Before advertising, Chick-fil-A will also encourage customer feedback and marketing

analysis to ensure that commercials are reaching their audience well. Chick-fil-A wants to present

itself in a way that is reliable, helpful, and friendly through their social media. By interacting with

customers on the feedback of the new Chicken-n-Waffle product, the company will be able to

understand what things they are doing well and what they could change with the product.

To focus on their long term overall goals, the company needs to create more discounts and

promotions to improve their competitive environment. Some of the sales promotions, including

free sandwich gift cards, should get customers to try the new product and decide if they like it.

Chick-fil-A could save customers money by mailing coupons and sending printable coupons via

email that customers will use to get lower prices on the new sandwich. The coupons that Chick-

fil-A sends to all customers will feature monthly coupons. Chick-fil-A will offer customers free

food such as Chicken-n-Waffle sandwiches through the year. Chick-fil-A will offer customers free

lunch features of two Chicken-n-Waffle sandwiches when customers download the Chick-fil-A

app, join Chick-fil-A One, and create an account. Events like “Dress like a Cow day” can also

attract customers and award them free Chicken-n-Waffle sandwiches. Kids could receive free

items on every Tuesday with a purchase of Chicken-n-Waffle sandwiches. Chick-fil-A will create

a new discount promotion program, “School and Church Fundraiser”, where they will earn more

money from customers if they used their coupons to buy Chicken-n-Waffle sandwiches. “School

and Church Fundraiser” created by Chick-fil-A, is a partnership with schools and churches to help

them improve their goals by donating money to their programs. This is a way for customers to

save money on food but also donate money to fundraising. The fundraises would be helping Chick-

fil-a gain awareness among consumers and help their brand image among their target audience of

families and younger generations. Chick-fil-A can give back to the communities by having
fundraisers with schools and churches and donate some of sales to raise money for scholarships,

school programs, and college tuition expenses.

4. Pricing Strategy

List Price:

New Chicken-n-Waffle Sandwich will include chicken strips in mini waffles and will be available

throughout the day.

-$5.00 Regular Chicken-n-Waffle Sandwich (Spicy or Regular) (2 Chicken Strips and Waffle

Sandwich and syrup) (Standard) *

(Compare to $3.85 regular)

-$6.25 Deluxe Chicken-n-Waffle Sandwich (Spicy or Regular) (2 Chicken Strips and Waffle

Sandwich with premium coleslaw, tomato, etc.) *

(Compare to $4.45)

Pricing Strategy:

Chick-fil-A will be using promotional pricing strategy when first implementing the Chicken-n-

Waffle sandwich and will then move into physiological pricing. Through promotional pricing,

Chick-fil-A will offer special promotions on the food to get customers to start buying the product.

After customers have gotten hooked on the food item, Chick-fil-A will be able to charge a

relatively high price for sandwiches. Through physiological pricing, the price that Chick-fil-A

charges offers a value to the item. The more expensive an item may be, customers may be feeling

like they are getting a more special item.

Discounts/Promotions:

In the early introduction stage of the Chicken-n-Waffle sandwich, Chick-fil-A should offer

special discounts and promotions to get customers to try the new product. In the past, Chick-fil-A
has offered free item gift cards or buy one get one free promotions on new items. The company

has to be careful to not offer too many discounts or promotions to remove interest in the product.

Bundling with other products:

The Chicken-n-Waffle sandwich will be a bundle product offered in a meal form with a

drink and small waffle fries. Being available all day, the item will be offered for breakfast with

coffee or orange. At later times in the day it will also be offered with coffee or a regular drink.

Meal Pricing:

-$7.25 (Regular Chicken-n-Waffle Sandwich, Fries, Drink)

(Compare regular Chicken sandwich combo $5.95)

-$8.25 (Deluxe Chicken-n-Waffle Sandwich, Fries, and Drink) *

(Compare deluxe Chicken sandwich combo $6.55)

Payment Terms/Financing Option:

There will be regular payment terms through debit or credit or cash payments. While the

price of the chicken and waffles will stay generally consistent, it will vary with some locations.

Locations that may have higher priced items include airports, high traffic areas, and downtown

city locations. In these locations, Chick-fil-A will be able to charge higher prices because of the

high demand of products in these locations.

IX. Budget, Schedule, and Monitoring - Budget

Chick-fil-A is one of the most successful fast-food businesses thus far and one of the

cheapest to open as well. The different strategies they use, like pricing strategy as an example,

have helped greatly with their success. Chick-fil-A will continue to grow if they create a new

product like the Chicken-n-Waffle sandwich. After looking at certain statistics, measurements, and
prices, the overall cost for the marketing product would be around $5.00 for just the sandwich and

it would be around $7.25 for a sandwich combo. Since it only costs $10,000 to open a new

restaurant without a threshold for net worth and liquid assets, Chick-fil-A’s budget will be

somewhat cheap compared to other fast-food chains. The yearly budget including the fixed costs

and the variable costs for Chick-fil-A while introducing the new product would be around

$169,648. Though $169,648 seems very high, it is a lot cheaper compared to other fast-food

restaurants. The break-even analysis shows all the total costs that Chick-fil-A needs to incorporate

so the Chicken-n-Waffle sandwich can be a success. By selling an estimated $30,000 worth of

sandwiches per year, the sales revenue would be around $196,500 at the end of the year. There are

many additional costs while trying to promote a new product, such as shipping costs, cost of

ingredients, and advertising costs. When introducing a new product there are many fixed and

variable costs involved. The fixed costs would consist of salary expense (chicken waffle shift)

which is minimum wage at $10.50 per year with a 17 hour day (annually) totaling at $65,152.50.

Fixed costs also consist of salary tax expense at $8,469.83, if taxes were deducted the total fixed

costs would be $56,682.67. The variable costs would consist of shipping costs at $10,000,

advertising costs at $10,000, waffle ingredients at $30,150, chicken ingredients at $45,675, and

maple syrup including per fl. Oz at $8,671.88, which would make the total variable costs sit at

$104,496.88. After incorporating all the additional costs, it is important to subtract fixed costs and

variable costs from sales revenue making the total revenue sit at $26,850.62. Since the Chicken-

n-Waffle sandwich is very different from other products that are sold at Chick-fil-A, their revenue

should increase because more customers will be buying their new product. Chick-fil-A’s regular

estimated revenue per year in 2014 was around $3.1 million. Chick-fil-A’s competition keeps

getting harder, but the new product they would be trying to sell would even it out. As a group, we
have decided that the expected/estimated revenue per year including projected results of any

promotional programs would be a little greater than usual at $4 million because the Chicken-n-

Waffle sandwich would become such a hit.

One of the most important things to do when promoting a new product is efficient

scheduling. A roll-out schedule consists of the things that a company needs to focus on for the the

weeks before and after the product has been introduced. For example, during week 1 the marketing

team brainstorms an idea, prepares a budget and costs for new product, and finally the board

discusses the decision that will be made. During week 2, the board approves of the new product,

publishes recipe and works on the exact budget, tests the new product, spreads information to other

stores, prepares shipping and purchases, all while preparing advertisements and promotions. In

week 3, recipes should be confirmed, ingredients should be processed and distributed, and stores

begin to sell item. By week 4, sales should begin while advertisements and promotions are being

released. The weeks to follow all Chick-fil-A locations should be incorporating the new Chicken-

n-Waffle sandwich into their work as a company. The timeline for the first 3 years should look

like this:

Year 1- New stores added: 5

Menu items: 119

Total employees: 7,500-10,000

Year 2- New stores added: 10

Menu items: 122

Total employees: 8,100-10,600

Year 3- New stores added: 15

Menu items: 123

 Total employees: 7,800-10,300

There are many ways to monitor if you are on track with the budgeting and scheduling of

a new product. The way to monitor if sales for Chick-fil-A are on track is by making sure the

budget is efficient to what the overall strategy. We can do this by making sure sales budget is

efficient while searching the market to see if the economy is reliable. The use of statistics in the

market is another good way to monitor that products are being sold and are able to compete with

the market. It is also important to make sure that you track your competitors in the market so you

can compete with other companies. We can monitor scheduling by focusing on specific dates and

times that products were sold.

There are many different types of ways a company can evaluate the performance of a

product. One way is using the PMEX method which helps managers evaluate performance

measurement systems that are currently being used to find areas they can improve. PMEX can

help evaluate the performance efficiency of time, cost, and quality. The other way to evaluate
performance is by using the PDOPM which develops the performances perception by relating the

uncertainty, efficiency, and effectiveness. Both of these can improve the evaluation of

performance. Other ways you can evaluate performance of a product is by focusing on revenue

intake and customer reviews. By evaluating the revenue intake and the reviews from each

customer, you can determine whether the performance has succeeded or if the performance

continues to increase.

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