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Church's

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Submitted By LouDeal
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Introduction
This report is the internet marketing analysis for Church’s Chicken. For over 60 years the franchise has been known for making quality chicken at a reasonable price. Church’s Chicken, which became a billion dollar business back in 2006, expected to reach another billion-dollarindustry. With over 1,500 restaurants worldwide, Church’s Chickenhas grown significantly since its opening in 1952. Church’s Chicken originally intended to be a private owned business. However eventually became a national market in 1969.

“Church’s Chicken started in 1952 by George W. Church Sr., a retired incubator salesman, started his own chicken stand across the street from the Alamo in San Antonio, Texas. (franching.com)” In1955, Church added Jalapeños and French Fries to the menu in it became an instant hit. A year later, Church died, however he already established four franchises. By 1962 the franchise had doubled to eight. By 1967, Church’s Chicken had established five more franchises throughout Texas and by 1969; it reached 100 franchises in seven states. At the end of 1974, there were 487 franchises in with the total revenue of $100 million. Five years later, the franchise started to expand internationally with franchises in Puerto Rico, Indonesia, Canada, and other countries. “Now the franchise has over 1700 franchises in 22 different countries with the revenue of $1.2 Billion (franching.com)”
“In 2003, AFC made a bold decision by changing their slogan from for the last 50 years “Big pieces, little prices” to a more Indirect approach, “Full Flavor, Full Pockets, Full Life” (Mehegan, 2003) The problem with this is during that time, the media-advertising agency was only advertising their campaign through TV and radio and little internet.“Because of this, the changes have come with AFC enterprise, which owns a majority of Church’s Franchise; report the earnings of $36.9 million of revenue of the $900 million the year prior (Marshall & Heffes, 2007)
Strengths
• Church’s has been a steady growing family owned business since its induction in 1952. Since then 30 of the 50 corporate executive has been a restaurant employee. In addition, 5,000 employeeshave promoted managers and assistant manager from the staff. Church’s invested almost$125 million in training its staff.
• They successfully overcome cultural differences. For example, they serve lamb burgers in the Middle East and use separate door for families and single women in India
• Church’s is a global company with over 1,600 restaurants and 500 countries. By being disperse in different regions, it gives franchises the opportunity to overcome the economic fluctuations in which they are localized by country.
Weakness
• Their test market for other food products has not been sufficient. For example, the test for pizza has filed to yield to be substantiated. Leaving them less competitive with other fast food pizza chains (managementparadise.com)
• In the mid 1990’s, Church’s tried to open up a Mexican food products in which it was turn out to be a disaster. In which they discontinued quickly.(managementparadise.com)
• High employee turnover means increase of funds for training
• They have not capitalized on organic foods Opportunities
• In today’s health conscious society, the preparation of health chicken has a good opportunity. They would be on the top of the list for QSR (Quick Service Restaurants) for the FDA approval on low calorie chicken and other alternatives. (
• In the early 2004, the franchise ventured in the breakfast list, for example coffee not only secure sales, also bring in potential customers.
Threats
• They have been sued for contamination of e-coil
• Competition, such as Popeyes and KFC, and many other mid-ranges sit down restaurants.
• Church’s is a global fast food retailer with over 1,600 restaurants and serving more than 10 million people in 500 different countries. More than 40% of the franchise is owned and operated by local residents.
The best way to capitalize the way to use the web is to go mobile by using texting.Over the next five years, Church’s will collaborate with Coca Cola to experiment with SMS to target the youth. “These two companies will launch interactive incentives to reach out to the mature diverse young adults with food, information technology and video games. This form of mobile technology will interact with younger adults.” (Butler, u.d) The two companies will focus on the power of texting. Customers can text the word “Good” to a short code 32954 in order to enter the drawing. The young adults are the second largest and the fastest core of the franchise customers. Since Church’s has limited media funding, one of the biggest challenges is finding the way that the promotion can reach the customers. To overcome these challenges the marketing department is leaning on bringing the awareness to potential customers by mobile texting.
When Church’s celebrated its 50th anniversary back in 2002, the company had 1,500 restaurants, in which there was a significant increase of around 1,000 stores shortly after the Copeland Enterprise bankruptcy. Although Church’s had some setbacks back in the 1990’s, the president Hala Moddelmog presided over the significant changes. In 2004, Church’s was having issues with their parent franchisee AFC Enterprises because of infringement violations. Church’s was at its peak, owned more land than its competitor Popeyes, giving them a better chance to arrange themselves financially.
In conclusion, Church’s goal is to be ahead of the power curve by exploring means of communicating to their target customers, the young adults. Collaborating with Coca Cola, which is one of the biggest game marketers in the business, provides a different and groundbreaking way to engage the target customers in a non-traditional way. Today’s urban youth is technology driven. With the collaboration with Coca Cola, the market can stay relevant. “Embarking on online advertising will be meaningless unless it is used effectively attract potential customers.” (active-domain.com, u.d)

References
Butler, D. (u.d) Church's Chicken, Coca-Cola use SMS to connect with urban youth, Mobile Marketer Article, retrieve June 17, 2013 from http://www.mobilemarketer.com/cms/news/messaging/2532.html
Marshall, J., & Heffes, E. M. (2007). Bpo: Developing market, evolving strategies. Financial Executive, 23(5), 38-40, 42-44. Retrieved from http://search.proquest.com.library.capella.edu/docview/208902168?accountid=27965
Mehegan, S. (2003). THE MEDIA BUSINESS: ADVERTISING; Church's Chicken tried a new approach and disappointed franchise owners. The New York Times, Retrieved from www.lexisnexis.com/hottopics/lnacademic
Online Advertising To Increase Sales retrieved from http://www.active-domain.com/online-advertising/online-advertising-increase-sales.htm
Internet Surpasses TV as Most Essential Media (2010) Retrieved June 18, 2013 from http://www.marketingcharts.com/television/internet-surpasses-tv-as-most-essential-media-12499/
Church's Chicken Business Overview retrieved June 18, 2013 from, http://www.franchising.com/churchschicken/overview.html

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