The Chicken Coop Case Essay Example

The Chicken Coop Case Essay Example The Chicken Coop Case Essay The Chicken Coop Case Essay The chicken coop case Facts Since 1974 the Company had registered Increase In 10% In sales per year, Industry has only being growing 5% per year, during the past 5 years. 1994 1) $775,000 average sales per restaurant 58. MM mark In sales 2) 7. 7 billion chicken SIRS segment ? which KEF dominates with 5,000 restaurants and greater that 50% market share. Each week MM consumers make purchase at KEF. 25% of market shares, small and independent stores 1995 sales were down in 20 (6%) of the 76 stores those 20 where the 32% of total sales Owner went to visit the 20 stores Marketing UP and Quality UP recommends three pronged approach 1) Conduct focus group 2) Brand image monitoring survey pilot for a continuous brand tracking program 3) Customers will be paid to visit the coop and the competition and they will not know which Company paid them Turnaround really expensive marketing strategies Executive meeting In order to define: Investment In market research, how much and which programs to fund. 985 24 restaurants By paying more attention to customer the Coop will gain market share. Success of restaurants was quality of food, quality of service, cleanness quality of entire addling experience and good value (price, quality and abundance) for low prices. Focused providing family environment targeting consumers between the ages of 18 to 45 years. Starting price $3. 99 and whole meal for eight people for $24. 95. The CEO of The Chicken Coop, must decide if the company invests in market research, how much money to spend, and which programs to fund Take decision based on What is the size of the loss? What have been attributed to this loss? The loss is 6% of sales in 20 stores that means that $775,000 is the average sale per store, so the 6% ass per store is $46,500, times the 20 stores the total size of the loss will be $930,000. The loss can be attributed by many factors, for example, more competition In the area where the 20 stores less performing are, changes In demographics, people that used to go to those stores moved from that neighborhood and different people came, changes in consumer habits, healthy programs and obesity start concerning parents and people living nearby, the stores werent delivering the value that characterizes The Coop such as quality of food, quality of service, cleanness quality of entire dining experience and good value (price, quality and abundance) for low prices, or the economy was suffering a recession and the first impact are the 20 stores. Analyze the dynamics between Michael and Wallace. Are they looking into the same direction? They are looking into the same direction because they have the same objective that is increase sales and reduce the gap of sales in revenue in the less performing stores, so what they are proposing different ways to close the gap and fulfill the obje ctive. Wallace Is relatively new to the Company but he has great experience In the Industry and he knows what he Is doing and how to be successful In the business, the difference with Michael Is that she Is a loyal employee that shares the core values and beliefs of The Coop well defined. So one is proposing Innovation Ana evolution Ana ten toner one Is proposing quality Ana customer satisfaction, which in this case both ideas and methods are needed. Evaluate the initiatives proposed by Bushmaster Wallace and Michaels Bushmaster is proposing customer feedback cards, this approach is the cheapest one and the information they will get is limited in terms of innovation and attracting new consumers. Wallace is proposing Brand image monitoring survey, this is the most expensive proposition in long term for the company, here is where the Coop will have to start making focus groups and they are worried about not being well equipped for that in their facilities and the outcomes of the results may not be as trustfully as any other method. Michaels is proposing Taste tests, this approach can help to identify where the stores are failing in terms of quality and also it can identify what customers really would like in terms of food and taste but the information may be not accurate customer samples cant be loyal customers because they dont fully represent the whole market.