Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zaxby's has focused on college sports in its sponsorship strategy to date. Is college sports the best vehicle for Zaxby's to achieve targeted reach? Why
Zaxby's has focused on college sports in its sponsorship strategy to date. Is college sports the best vehicle for Zaxby's to achieve targeted reach? Why or why not? Zaxby's is a quick-service chicken restaurant chain, with locations primarily in the southern United States. Childhood friends Zach McLeroy and Tony Townley opened the first Zaxby's location in 1990 in Statesboro, Georgia. By 2017, Zaxby's had over 800 locations and was the fastest-growing chicken restaurant chain in the United States. Future growth plans for Zaxby's includes expansion into midwest, southwest, and western U.S. states, which will give it more of a national brand footprint. As Zaxby's continues to experience growth and expands into new markets, the company will need to evaluate marketing strategies used to reach customers. Unlike many quick-service restaurants, Zaxby's generally avoids using price-based promotions to attract diners. Zaxby's has also largely avoided another marketing practice used by many of Zaxby's larger competitors: Sponsorship. Sports sponsorships in which Zaxby's has dabbled have associated the brand with college athletics. In 2013, Zaxby's signed sponsorship deals with 25 universities, primarily located in Zaxby's market area, to be "the Official Chicken of College Sports." The deal included Zaxby's brand placement in football and basketball games and commercials during game radio broadcasts for the 25 universities. A Zaxby's executive touted the deal as a way to "keep us true to our roots" as a company that started in a college town. In 2014, Zaxby's signed a deal as title sponsor for the Heart of Dallas college football bowl game. It was a four-year deal with the option to extend for a longer period. The bowl sponsorship deal gave Zaxby's national exposure, creating interest in the brand even in markets that do not have Zaxby's restaurants. Zaxby's entered into its first professional sport sponsorship in 2017 when it signed a five-year deal to be the Official Chicken of the Atlanta Falcons. While the deal included planned activation including sponsorship of the team's Salute to Service Week and presenting sponsor of pre-season training camp, it did not include selling Zaxby's products in Mercedes-Benz Stadium. Chick-fil-A, a competitor in the chicken restaurant category, has a restaurant in Mercedes-Benz Stadium, and it is a more active sports sponsor overall than Zaxby's. As Zaxby's continues to grow, the company must decide how its sponsorship strategy should evolve. Should college athletics continue to be the focus? If yes, what type(s) of sponsorships should be undertakenconferences, teams, events, or some combination? Are there other sports that Zaxby's should target with which to associate the brand? Should sport properties sponsored be national, regional, or local in scope? How can sponsorship be used to support the company's expansion into new geographic markets
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started