The Chicken Coop Case Analysis

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The Chicken Coop Case Analysis

Problem Statement

Daryl Buckmeister, CEO of The Chicken Coop, must decide whether to invest in market research, how much money to spend, and which programs to fund. His two vice presidents (of quality and marketing) have presented very different proposals.

Decline in sales

For the first time ever, the "Coop" is experiencing a decline in sales by 6% in 20 of 76 "Coop" restaurants even though the overall growth rate was steady for the chain. These same stores were carrying about 32% of the company's retail sales.

Weak to no Market Research

The CEO of the company has maintained a steady visit to some of his stores but this was not really any type of market research. These visits were more of an internal quality assurance program. He did speak with customers and received valuable feedback during his visits which certainly can be market research.

Deviating from Mission

Trevor Wallace has led the company away from the "We are chicken" campaign into other areas that may not reflect the image of what Buckmeister intended. Even though the "chick-pizza" is successful, this could also be the reason why sales are declining in many of the outlets. They could be diluting the brand image

Lackluster Performance of 4 P's

The Coop has no major market research to go off of in order to effectively position them in a changing market. R&D doesn't seem to be supported by good research in the market segments.

No Competitor insights

The Coop is depending on a marketing VP with experience in the hotel industry and not any real experience in fast food. They have no current research so they have no way of knowing the effects that their competitors are having on the retail sales.

Poor Sales Strategy...

... middle of paper ...

...enses could be very high

Pro's & Con's Alternative 3

Pro's Con's

1 Minimal cost going into it. Only costs are associated with printing the cards 1 Not much detail – marketing will still need to do competitor research so it doesn't help much in that area

2 Customer convenience - easy for the customer to simply circle a few things and drop in a box or hand to an employee 2 Managers can skew the data by not handing cards in just as employees may not hand over to management if it is a bad reflection on the service.

3 Time conscious/quick turnaround on info – results can be picked up daily, weekly, monthly 3 Employees can skew data by filling cards out themselves

4 Recurring/continuous stream of data – always able to respond quickly to customer complaints 4 Would only target customers of the COOP and not potential customers therefore no competitor information

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