Using the work you completed for Parts, I, II, and III with your CLC group to inform your analysis for the following in a paper (500 words). Summarize how the various bu

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Marketing Expenses Vs. Rivals

Gregory Dayes, Chelsea Krems, Jodie Lockwood, and Jackson Speece

Grand Canyon University

MGT 660

Dr. Richard Henderson

June 18, 2023

Marketing Expenses Vs. Rivals

Comparative Data Table

Companies	Chick-fil-A	McDonald's	Popeyes
National TV	$2 M	$334.5 M	$130 M
Digital Ads	$4 M	$63.8 M	$31.3 M
Total Spent	$6 M	$398.3 M	$161.3 M

Report

Chick-fil-A has less advertising spend than its rivals, McDonald's and Popeyes. Less than 1% of Chick-fil-A's $5.8 billion in yearly revenue, or $6 million, was spent on advertising in 2021. The business primarily uses national TV and digital advertisements to promote its brand, goods, and services. It is clear from a comparison of the three businesses that McDonald's devotes a substantially higher proportion of its resources to advertising. McDonald's spent $398.3 million on advertising in 2022, much more than Chick-fil-A and Popeyes combined. Although McDonald's advertising spending has fallen recently, it is significant to remember that $702 million will be spent in 2020.

Popeyes, on the other hand, has increased its marketing initiatives to compete in the fiercely competitive fast-food industry, sometimes known as the "Chicken Wars." Over the years, Popeyes has grown its advertising spending, which as of year-to-date (YTD) in 2021, was $31.3 million on national TV ads, a 32% increase over the same period in 2020—a few crucial things to consider while analyzing the effects on Chick-fil-A's future marketing and advertising expenditures.

First, Chick-fil-A's current advertising expenditure appears relatively small compared to other fast-food franchises. The company has established a solid brand and client base, but it might increase its reach and market share by raising its advertising budget. With expected revenue of $5.8 billion in 2021, Chick-fil-A has plenty of room to expand its marketing and advertising efforts. Second, Chick-fil-A may be able to appeal to a wider audience through digital advertising. The company has invested in digital advertising, but it may invest more in the future to boost its online presence. Chick-fil-A can effectively reach its crucial target demographics of Gen Z and millennials using social media, online video platforms, and targeted display advertising.

Chick-fil-A can increase its brand awareness and get new consumers by working with influential people and content producers. Marketing films shared on social media platforms like Instagram and TikTok can go viral and increase brand awareness. Finally, Chick-fil-A can maintain its commitment to advertising that sticks out in people's minds. The Chick-fil-A cows have become an instantly recognizable symbol of the company's "Eat Mor Chikin" advertising campaign. Chick-fil-A can stay at the top of its fast-food sector game if it keeps releasing creative and exciting marketing strategies.

In conclusion, Chick-fil-A has room to grow by increasing its marketing and advertising budget, even though it currently spends a tiny amount on advertising compared to its competitors. Chick-fil-A can retain its success in the cutthroat fast food industry by emphasizing digital advertising, the appropriate demographics, and keeping a creative approach to promotions.

References

Chick-fil-A 10k Report

McDonald's 10k Report

Popeyes 10k Report

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			high price
excellent customer service		poor customer service
			low price

Perceptual Map Resources:

Bondareko, V. (2022). People Still Value Chick-Fil-A's Service Above All Other Chains. The  

Street. https://www.thestreet.com/investing/chick-fil-best-service-survey 

 

Cutolo, M. (2022). This Fast-Food Chain Has the Best Customer Service in America. Reader’s  

Digest.  https://www.rd.com/article/chick-fil-a-best-customer-service/  

 

Comparably. (2023). KFC vs Popeyes Louisiana Kitchen. 

  https://www.c