The Coop Case Analysis: We Are Chicken
The Coop Case Analysis
Opinion By –
Arkesh Sharma (EPGP-06-158)
Radhesh PV (EPGP-06-051)
Abhishek Bansal (EPGP-06-167)
Tanvi Chandra (EPGP-06-143)
Case Summary:
The Coop is a Quick Service Restaurant (QSR) which serves chicken. It was opened in 1974. It is growing at a steady rate of 10%. The primary motto of the Coop was “We are Chicken” which worked on a simple philosophy – “To provide the Best tasting meal around by specializing in the preparation and delivery of Chicken”. The side dishes include French fries, baked potatoes, corn on the cob and two types of chicken sandwiches.
The sales of the company reached $58.9 million in 1994. The Coop was competing against KFC neck-to-neck.
In 1995, company sales were suddenly
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Customer Experience Study (CES)
Buckmeister believed that the not only the quality of food mattered but the entire dining experience.
Soon after Trevor was hired, he came up with a new dish called “chick-pizza”. Even though there were concerns with this new type of product, it shot up the sales of the company. Trevor also had another suggestion up his sleeve i.e. Co-Branding. The Co-Branding will help solve a classic problem of smooth usage of facilities across day parts. But Buckmeister thought that there was high risk of diluting the brand image of Coop.
Meanwhile, McMichael was working on the Home Delivery Model and devising different ways in which the products can be packaged so as to provide the same quality and taste for people ordering food at home.
Other Buckmeister’s managers had suggested him for Price promotions but he resisted it because The Coop’s strategy had been built by bundling food items to create value priced meals and he hated to depart from it. After Buckmeister’s visit to various stores, he observed that two of his stores showed significant deviations from the standard processes. He concluded that the new staff was inadequately trained. He also spoke to few of the customers. The common feedback he received was on the price and the competition offerings. Another area to look for was the Coop’s marketing spending. He concluded that The Coop was overlooking promotions as a way to encourage alternate daypart usage and to cross-sell high margin meal configurations and large
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