Summary
This document presents research on the Chipotle Mexican Grill and its external
environment. This includes what products it offers, what companies it competes with
and an in depth analysis of its prime prospects. It also offers a SWOT analysis of internal
and external problems and benefits of the company. It then offers recommendations to
how Chipotle can improve its promotional techniques and strategies overall.
Background
External Environment: Market Climate
Chipotle Mexican Grill is a fast food restaurant that sells Mexican food such as
burritos, tacos and similar food. Within the past few years, it has helped develop the
newly formed fast-casual restaurant sector including chains that serve food made to
order. The fast food industry has experienced tremendous growth over the last few
decades with the general population consuming fast food about twice a week.
However, popular opinion of the industry has declined, as fast food has been associated
with the obesity epidemic (Pereiera et al., 2005).
External Environment: Competitive Atmosphere
The fast-casual dining sector maintains growth because they have a healthier
and more upscale image than regular fast food. As a result, fast food restaurants are
attempting to emulate fast-casual ones. Taco Bell released its Cantina Bell menu to
compete more closely with Chipotle (Sanburn, 2012, p. 60-61). Chipotle competes
directly with other restaurants in the $5 billion fast-casual Mexican food restaurants
such as, Qdoba, Moe’s Southwest Grille and Baja Fresh. Indirect competitors include
other fast-casual restaurants such as Panera Bread, Five Guys and Boston Market.
Other less significant indirect competitors include fast food restaurants like McDonalds
and Wendy’s (Sacks, 2012, p. 125). In a poll conducted by Restaurant business, Chipotle
was ranked the third favorite fast food chain among Americans, behind Panera and InN-Out (“Restaurant Business” n.d.). In 2011, Chipotle’s revenue saw $2.2 billion 11.2%
growth. This was significantly greater than Qdoba whose revenue was only $366 million
in 2013. Chipotle employs 27,000 people and opens a new restaurant roughly ever other
day (Sacks, 2012, p. 126).
Internal Environment: Client
Chipotle aims to provide consumers with high-quality raw ingredients with its
program “Food With Integrity.” The restaurant also considers itself environmentally
friendly through the way the company obtains its ingredients and its packaging. Even
though they are a large company, the small amount of ingredients they use keeps the
quality level high (Hochwarth, 2004, p.58-60).
Internal Environment: Product
The unique selling proposition of Chipotle is that customers can see the
ingredients going into their burritos and other made to order food. Chipotle promotes
itself as an environmentally friendly, healthy and ethical business. Chipotle markets
transparency in the way the company obtains ingredients and prepares food. Instead of
sponsoring large-scale concerts, in the fall of 2011 Chipotle staged a 17,000-person
festival in Chicago to educate the public about safe farming practices (Sacks, 2012, p.
126). Chipotle promotes this message through viral videos and messages on the side of
its packages. Its “back to start” video premiered during the 2012 Grammys and
garnered over 150 million impressions through social media and other Internet media
(Jennings, 2012, p. 142).
Prime Prospects: Identification
Chipotle’s target audience is 18-29 year olds or the millennial generation, of any
ethnicity. Chipotle emphasizes healthy food made without harmful chemicals or
preservatives, thus targeting the health-conscious millennials (Jennings, 2012, p. 142).
The millennial generation is frugal with their money because they have a lot of debt
from student loans (Sanburn, 2012, p. 61).
Prime Prospects: Problem
The millennial generation has been characterized as communicative and
technologically savvy. It is idealistic and concerned about social causes with a strong
tolerance for diversity in society. Millennials want products that will be tailored to their
individual wants and needs inexpensive that deliver superior value because most have
accrued because of debt from student loans. They also want easily accessible products
because they are accustomed to the convenience of the Internet (Debevec, Schewe,
Madden, & Diamond, 2013, p. 20-23).
Conclusion
Chipotle Mexican Grill competes in a crowded sector with rapidly changing
consumer habits. As the younger and more technologically advanced part of the
millennial generation moves into their twenties, fast food restaurants must find ways to
appeal to this large market. The broad fast food sector has been partially blamed for
the obesity epidemic, calling restaurants to offer healthy dining options, which Chipotle
has done with their natural ingredients and transparent food preparation processes.
Chipotle has successfully beaten out its competition in terms of revenue and public
opinion. The company obtains its raw ingredients from animals that have been ethically
treated and not injected with hormones. Although it is more costly to obtain chicken
from animals raised on pastures instead of in cages, Chipotle is able to absorb the cost
due to the small amount of ingredients needed to prepare its food. The food at Chipotle
is made in front of the customer; they can choose the ingredients that go into their
meals. Chipotle advertises through videos that promote their safe farming techniques
as well as copy on the side of their packaging. They focus more on the socially and
environmentally conscious image than their actual menu when advertising. The target
demographic for Chipotle includes specifically the millennial generation or those aged
18 to 29. This generation is particularly health-conscious with more concern for the
quality of food they eat than previous generations. They are also reluctant to buy
expensive food because they are plagued with debt. They are connected to Internet
mediums of communication, specifically social media and use them to learn about
products they consume. They buy products personalized to their needs and that
promote environmental and social issues.
SWOT Analysis
Strengths

Focus on food made from
Weaknesses

sustainable resources

Marketing programs, viral videos

Growing fast and increasing
working illegally

Limited menu

Lack of awareness of company
revenue

Popular with Millennial Generation

Ethical perception
Scandal involving immigrants
among those that don’t live nearby

Lack of awareness of the “Food
with Integrity” program

Lack of electronic advertising
presence
Opportunities

Threats
Social media presence with

Intense competition
generation Y audience

Labor Cost

Growing foodservice market

Increase in food safety regulations

International expansion

Targeted directly by competitors

Audience is easy to target: Health-
because of having the most
conscious at fitness centers,
profitable business
students at colleges

Partnered promotions with

Low perception of fast food
industry
businesses that target Millennials
Chipotle’s strengths include a focus on foods made from sustainable resources
because it assures the longevity of the company. Its fast growth and high revenue are
attributed to their marketing programs and viral videos. Another strength is the
correlation between what the millennial generation wants and what Chipotle provides.
This is coupled with an ethical perception of the company and its business practices.
Weaknesses include a recent public relations crisis in which many of its employees were
uncovered as illegal immigrants. The company has since committed to stronger
background checks. Also, its limited menu can isolate those who do not like Mexican
food. The reason for a new advertising strategy is lack of awareness of the brand to
those who do not live near a branch and lack of recognition of the unique “Food with
Integrity” initiative. Higher awareness can be achieved through a greater electronic
presence in television and radio. Since Chipotle’s audience includes Generation Y, they
have the opportunity to reach them through a strong social media presence. The
company’s growth and success is attributed to the overall growth of the foodservice
market and can allow the company to expand internationally. The company also
benefits from a target market that can easily be targeted through partner promotions
with health clubs and college students. Its large range of competitors and an increase in
labor and food safety regulations threatens Chipotle’s longevity (Fontecechia, 2013, p.
13). Chipotle is also targeted by most of its competitors because it occupies the largest
market share and is plagued by the low perception of the fast food industry.
Recommendations
Chipotle’s messages resonate with its target demographic, as evidenced by its
sales success. However, if Chipotle wants to widen its reach and secure its longevity, it
can create a stronger media presence, which will make its current and potential
consumers more knowledgeable about its ethical practices. This can be carried out
through encouraging interaction through its Twitter account. For example, asking
viewers to tweet their favorite menu item or suggest a new ingredient to be included in
their burritos, tacos, etc. Chipotle’s advertising strategy could also be widened to
include more visuals of its menu items. This will further associate the company’s
healthy food objective with its actual food. Currently, the two are separated in
communication strategy. From a public relations standpoint, the company should
partner with an environmental organization in order to publicize their environmentally
friendly practices.
Marketing Strategy for Chipotle Mexican Grill
Brian Ackermann
JMA 340W
18 February 2014
Summary
This article outlines the proposed marketing efforts of Chipotle Mexican Grill
with regard to the product, price, place and promotion. The marketing objective is not
increase sales of its burritos by 10% over three months. Developing strong sales
promotion strategies targeting the millennial generation will help Chipotle achieve this
objective. The product will also be made more convenient through developing ways to
supply the consumers with their orders quickly and efficiently. Finally, the promotion of
the product will be backed by a four week advertising campaign, event marketing, sales
promotion strategies and public relations with a focus on further developing the
company’s social media websites.
Marketing Objective
The objective of Chipotle is to increase sales of its burritos by 10% over the course of
three months.
Source of Volume
The source of volume is the emergence of consumption from competitors’ users. The
consumers will use the product with increased frequently by almost entirely
abandoning their previous regular Mexican fast-casual restaurant. Consumers will be
compelled to eat at Chipotle upon learning from marketing about its healthy and
consumer-driven preparation and farming processes.
Target Market
Demographic
The Target group is Millennials aged 18-29 throughout the United States. This includes
males and females ranging from middle class to upper-middle class income. Younger
millennials are still in college or fresh out of college and still working for low wages.
However, due small amount of bills this group generally has they have a moderate
disposable income. The older half of the millennial generation has a larger amount of
bills but usually has more disposable income because of the higher overall income. Both
age brackets are included in the target market as well as people of all ethnicities and
religions.
Psychographic
The millennial generation is characterized by a strong sense of personalization and
individuality and want products tailored to their wants and needs. Most of the target
market is either in college or a recent graduate so they are plagued by debt from
student loans. Therefore, they want inexpensive products with values that reflect their
prices. (Sanburn, 2012, p. 61). They are also health-conscious and live their lifestyles
accordingly. They prefer environmentally friendly products that are natural and free of
harmful ingredients (Jennings, 2012, p. 142). According to PRIZM, the target market
would fall under the categories of “Young Influentials” and “Urban Achievers.” The first
lifestyle group of people lives in suburban areas, shop at electronic stores like Best Buy,
live active lifestyles and drive sporty cars like the Mitsubishi Eclipse. The second
lifestyle group lives in urban areas, shops at office supply stores and drives economical
cars like the Toyota Yaris.
Product Strategy
Current Strategy
The product is currently a steak or chicken burrito where the consumer can choose from
a variety of ingredients (lettuce, salsa, rice, etc.). The burrito is assembled in front of the
consumer so they can see the ingredients that go in to its preparation.
Strategy Change
Currently, there are enough standard ingredients to satisfy customers’ needs while still
maintaining the healthy lifestyle brand image that resonates with the target audience.
Therefore, the product will not change because in order to increase sales Chipotle must
advertise its excellent product more effectively.
Price Strategy
Current Strategy
The price of a Chipotle burrito ranges from roughly $6-7 depending on what meat the
customer chooses (vegetarian, chicken, steak or pork). Chipotle offers discounts
through mailed coupons and offers a free meal to anybody who buys a $25 or more gift
card. The price of Chipotle burritos is aligned with the value it provides.
Strategy Change
The brand should consider more partnerships with organizations its audience is
involved with. For example, since Chipotle caters to the health conscious, the company
could offer a $2 discount for those who show a gym membership card one weekend
each month. The brand also targets college students so the same could be done for
those who show a student identification card. These events could happen periodically
for months at a time. This would help draw more attention to the target audience
because discounts the price of the product. The target audience will be more likely to
visit Chipotle because the discounts will be personalized the individuals. The millennial
generation is proven to prefer products and promotions tailored to them.
Place Strategy
Current Strategy/Availability
Chipotle burritos are available in any branch of the restaurant at any time throughout
the year. Consumers can order in-store or through an application available in the
Google Play and Apple App Store where customers can place their order and pick it up
at their closest restaurant. Chipotle currently runs 1150 restaurants in 38 states and is
opening in a new location roughly every other day (Kaplan, 2011, p. 135).
Strategy Change
Since it has already delved into the online ordering business, Chipotle should allow
ordering through their website and consider having a drive through window or a section
in their restaurants devoted specifically to pick up orders so customers do not have to
wait in line just to pick up their food. Also, since Chipotle’s target audience includes
college students, Chipotle should open branches on college campuses as an alternative
to traditional campus food. These strategies will make ordering and receiving food
more convenient and position Chipotle as superior to its direct competitors of whom it
is garnering customers from.
Promotion Strategy
Current Strategy
Chipotle relies heavily on event and direct marketing strategies as well as public
relations to sell their products. In the fall of 2011 Chipotle staged a 17,000-person
festival in Chicago to educate the public about safe farming practices (Sacks, 2012, p.
126). Chipotle promotes this message through viral videos and messages on the side of
its packages. Its “back to start” video premiered during the 2012 Grammys and
garnered over 150 million impressions through social media and other Internet media
(Jennings, 2012, p. 142). The company relies little on traditional media such as
television advertising; the “back to start” video was the first commercial Chipotle had
ever created. However, their success in new media has earned them recognition within
the millennial generation.
Strategy Change
However, not every video can go viral so the company should expand its reach into
television advertising. Many people do not know about the convenient ordering
application or the locations of local restaurants. Consumers should be educated on the
healthy food aspect of Chipotle but also on how they can attain it. Event marketing
should not be limited to the one event in Chicago but several similar events should be
held in major cities and promoted with social media.
Length of Strategy
There will be three events, one each month, beginning in March in order to align with
the advertising campaign. Electronic and print media will be the host of an advertising
campaign that communicates Chipotle’s safe farming activities, convenience and sales
promotion strategy. The ad campaign will run for four weeks starting the first week in
March to open the spring season. The print campaign will be distributed through
magazines and billboards and the electronic campaign will comprise of radio and
television commercials. Sales promotions where students and gym members get
discounts will run weekly with students receiving discounts one weekend and gym
members the next so they alternate throughout twelve weeks. Direct marketing will
continue with brand messages being printed on the side of the food packaging. Finally,
social media will become a larger presence while encouraging interaction with the
brand. For example, various gift card contests for creative burrito recipes and posting
them on Facebook and tweeting them. This will help garner attention for the brand and
direct customers to other forms of advertising.
Chipotle Promotion Mix by Effort
Direct Marketing 5%
Advertising 45%
Event Marketing 20%
Public Relations 15%
Sales Promotions 15%
Media Strategy for Chipotle Mexican Grill
Brian Ackermann
18 February 2014
Summary
This document outlines Chipotle Mexican Grill’s objectives in terms of media
outreach. More specifically what types of media it will use to reach its target audience.
This will include a variety of digital, electronic, print and out-of-home advertising. This
document also analyzes the media consumption habits of the target market, which is
Generation Y.
Media Objectives
We will reach 15% of our target audience and increase sales of Chipotle burritos
by 10% over the course of three months.
Continuity
The audience will be exposed to the advertisement for a continuous four weeks
in the month of March.
Reach
The advertisement will reach 10% of the target audience within four weeks.
Frequency
A prime prospect will see one of the five advertisements at least once over four
weeks.
Throughout the four weeks that the campaign will take place, the target
audience will hear, understand and remember Chipotle’s message. The prime prospects
will have opportunities to interact with the brand.
Audience
Demographic
The Target group is Millennials aged 18-29 throughout the United States. This
includes males or females, income ranging in regards to age. Younger millennials are
still in college or fresh out of college and still working for low wages. However, due to a
small amount of bills this group generally has a moderate disposable income. The older
half of the millennial generation has a larger amount of bills but usually has more
disposable income because their income is higher overall. Both age brackets are
included in the target market as well as people of all ethnicities and religions.
Psychographic
The millennial generation is characterized by a strong sense of personalization
and individuality and want products tailored to their wants and needs. Most of the
target market is either in college or a recent graduate so they are plagued by debt from
student loans. Therefore, they want inexpensive products with values that reflect their
prices. (Sanburn, 2012, p. 61). They are also health-conscious and live their lifestyles
accordingly. They prefer environmentally friendly products that are natural and free of
harmful ingredients (Jennings, 2012, p. 142). According to PRIZM, the target market
would fall under the categories of “Young Influentials” and “Urban Achievers.” The first
lifestyle group of people lives in suburban areas, shop at electronic stores like Best Buy,
live active lifestyles and drive sporty cars like the Mitsubishi Eclipse. The second
lifestyle group lives in urban areas, shops at office supply stores and drives economical
cars like the Toyota Yaris.
Media Usage
The millennial generation uses more digital media than any other age group by
far. Particularly, social media is a significant factor in the media consumption habits of
this generation because they lived through its rise during their significant socializing
years. They are the second-largest consumers of television media next to babyboomers. Studies also show that millennials multi-task more than any generation,
which means they could be on the computer but also watching television so they are
consuming both forms of media. This generation is also the least likely to consume
print media (Voorfield, 2013, p. 292-393). However, according to PRIZM young
professionals continue to read magazines such as the New Yorker.
The Media Strategy
The majority of the media mix will be comprised of electronic, print, digital and
out-of-home media. Digital media will be the most prominent considering the
millennial generation consumes it more than any other type of media. Electronic media
will follow digital because it can garner a large amount of impressions nationwide and
more specifically promote the brand’s message. Print and out-of-home media will
follow and make up a smaller part of the media mix because they are generally
consumed less than digital and electronic media by millennials.
Chipotle Media Mix by Effort
Print- Magazine 10%
Print- Billboard 10%
Digital- Banner Ad 25%
Digital- Soclal Media 25%
Electronic- TV 15%
Electronic- Radio 15%
Digital
The digital media strategy for Chipotle will consist of an online banner display
advertisement, which will be placed on Yahoo.com. Social media contests will be
promoted through Twitter, Facebook and Instagram and an app allowing for ordering
food and locating Chipotle branches will be advertised and expanded. Social media
vehicles are the most prominent form of consumption by millennials and are integral in
garnering their impressions (Voorfield, 2013, p. 292-393).
Electronic
Television commercials will be placed on major television networks such as ABC,
NBC, CBS and Fox. The commercials will air during primetime from 8-10PM because
this is the time when most Americans, including millennials, watch TV. A radio
commercial will air on Pandora Internet Radio because millennials prefer products to be
individualized and Pandora can be tailored to individual music preferences.
Print and Out-of-Home
The Chipotle print advertisement will be distributed through a magazine article
in the New Yorker. According to PRIZM young professionals are likely to read this
magazine. Also, print advertising allows the brand to creatively display their message
through words and pictures unlike with most forms of digital media where copy can be
overlooked. The advertisement will also be displayed on billboards close to college
because it is an easy way to garner impressions from a large group of people. For
example, not every Duquesne Student may use a mobile application or follow Chipotle
on Twitter. However, if there is a billboard visible from the bluff, nearly every student
will see it.
Geographical Considerations
All of the advertising for Chipotle will be distributed throughout the entire
continental United States because Chipotle is a national brand that is rapidly increasing
its footprint. In order to reach the media strategy, Chipotle must advertise nationally to
increase impressions of its target audience. Considering most of its advertising will be
digital, it will not be difficult to attract nationwide attention.
Chipotle Media Budget Table
Media
Vehicle
Media Budget
Print- Magazines
New Yorker
$250,000
Print- Billboard
College Campuses
$50,000
Broadcast- TV
ABC, CBS, NBC, Fox
$500,000
Digital- Banner Ad
Yahoo.com
$100,000
Public Relations- Event
Major Cities
$100,000
Marketing
Competitive Copy Report for Chipotle Mexican Grill
Brian Ackermann
JMA 340W
25 March 2014
Summary
This document analyzes the marketing and advertising strategies of Qdoba
Mexican Grill. The purpose of the document is to benefit the creative strategy of
Chipotle Mexican Grill by differentiating it from its competitors. It identifies Qdoba’s
target audience, brand character, message strategy and its effectiveness. This is all
relative to a commercial released in 2005 promoting the company’s customization.
Overall, Qdoba’s brand character, tone and message strategy differ drastically from
Chipotle even though they are similar restaurants.
Identification
The competitor company is Qdoba and the product is the burrito, which comes
with chicken, steak, pork or beef.
Source
Qdoba released this commercial in 2005 as part of its “What are you going to
love at Qdoba?” campaign. It was released to national and regional networks for a year
(Cebrzynski, 2005, p. 15).
Creative Strategy
Target Audience
Qdoba targets a similar audience as Chipotle, including young men and women
aged 18-29. Qdoba specifies its audience as singles with income in the top 30% and
enjoy high-quality food (Cebrzynski, 2005, p. 15). However, in the commercial, Qdoba
also shows middle-aged adults in their early forties, including Generation X as well.
According to PRIZM, the audience best fits into the Up-and-Comers category. This
group consists primarily of upper middle class individuals who have recently graduated
from college. They lead an active lifestyle and stay current with the latest technology.
Competitors
Qdoba is present in the fast causal Mexican food sector and competes with
Chipotle, Moe’s Southwest Grill and Baja Fresh (Pereiera et al., 2005).
Brand Position
Qdoba positions its product as modern rather than traditional Mexican food. Its
burritos are made with fresh ingredients that the consumer picks (Cebrzynski, 2005).
Qdoba emphasizes the customizable aspect of its burritos with the commercial
featuring various people stating what ingredients they like. The unique selling position
of Qdoba is the promise of quality in its ingredients, which adjusts to the requests of its
target audience.
Consumer Problem/Benefit and Support
The commercial presents a number of everyday people who are overly excited
to eat at Qdoba. They name all of the ingredients they like in a burrito or other menu
item and emphasize the fact that they are made by the consumer. The Qdoba
consumer’s problem is that they want fresh Mexican food that is customizable with a
large amount of ingredients available. Qdoba promises that consumers will love what
they get at its restaurants. This claim is supported by the large amount of items on the
menu. Qdoba features many items other fast-casual items do not, most notably its
queso sauce.
Creative Direction
The commercial has an exaggerated and whimsical tone. The people describing
what they love about Qdoba are speaking in an unusually upbeat tone that implies
exaggeration. The brand character is youthful with the fast-paced nature of the
commercial and the various bright colored backgrounds presented. It can also be
described as fresh and healthy with the pictures of the burritos and salads and the
people in the commercial describing their favorite ingredients as fresh.
Strategy Analysis
Target Audience
The strategy resonates with the target audience because that demographic
prefers fresh and healthy food. The millennial generation as a whole likes individuality
and customizing their products (Sanburn, 2012, p.21). Qdoba pushes customizability
more than any other aspect of its food.
Competitors
Qdoba’s strategy differs from Chipotle’s because it emphasizes the uniqueness
of the product more than the quality of the food. Chipotle, with its “food with integrity”
program advertises itself as health and environmentally conscious while focusing little
on the food itself. However, Qdoba does present a similar strategy to Moe’s Southwest
Grill, which also promotes the uniqueness of each menu item and how customers can
tailor it to their own preferences.
Brand Position
The uniqueness of the Qdoba brand is present in the way they position
themselves in this particular TV commercial. For example, the lightheartedness of the
commercial stands out from Moe's and Chipotle because they both present a more
serious tone. However, the customizability aspect of the product is present in almost
every Mexican fast-casual restaurant and repeated throughout most of their
advertising campaigns.
Consumer Benefit/Promise and Support
The benefit of Qdoba is relevant in encouraging consumers to abandon
traditional fast food restaurants for fresher food. They are promising to provide food
that is not greasy and can be personalized. This is successful in positioning the brand
against McDonald’s or Wendy’s, however it does not differentiate them against
Chipotle or Baja Fresh. The support for this benefit in the commercial is a series of
everyday people talking about what they want in their Qdoba menu item. This form of
advertising is unique to other brads in the sector, which take a more serious approach.
Strengths and Weaknesses
The commercial promotes the unique selling position to the audience successfully. It
lists many of the restaurant’s menu items and ingredients. It also gives visuals to
accompany the claim that the food is fresh. However, it does not address why people
should go to Qdoba over other restaurants in its sector.
Tactics Analysis
Theme/Selling Idea
The theme of the commercial centers on conveying the various ways in which
consumers can construct their own food items. The selling idea relates to the theme in
that the Qdoba is trying to sell the concept of building your own burrito. Consumers can
see the ingredients are fresh and choose the ones they want. This is illustrated by the
characters in the commercial listing their favorite items in an exaggerated tone.
Creative Considerations
The brand character is executed by the fast-paced nature of the commercial and
the rapid change of images. The tone of voice of the characters translates to the tone of
the brand. Both the brand character and tone can be described as lighthearted with
bright colors and modern design. The message is executed in the copy of each
character.
Visuals and Music
The commercial presented a series of visuals with people talking about the
product then a clip showing the actual product. In the end, Qdoba’s logo is shown. The
music is upbeat but does not distract the viewer from the message of the commercial or
the people talking. It successfully blends into the background while reinforcing the
brand character and tone.
Effectiveness Analysis
Communication Objectives and Strategies
Qdoba wants to communicate the ability to personalize its food and the
ingredients it offers to do so. Presenting numerous actors to enthusiastically talk about
their Qdoba experience communicates the message but it becomes garbled by an
abundance of information. The strategy does not explain why consumers should desire
customization in their food because there is no credible evidence and no lasting
impression.
Copy, Design and Production
The copy is presented at a rapid pace by a large amount of different voices.
Therefore, it did not clearly convey the brand’s message. Much of the copy is garbled
and not spoken in a logical sequence. The visuals of the food and the people were
successful in presenting an attractive product. The people were enthusiastic about
eating at Qdoba and successful in being overdramatic, which is the intended audience
perception. However, some of the backgrounds alluded to the fact that the people were
in a studio. Having the people in a more realistic setting would have improved the
credibility of the commercial.
Recommendations
Based on the analysis of Qdoba and a few of Chipotle’s other competitors, it
seems as though the customizability of the food separates the fast-casual sector from
the regular fast food sector, which has been criticized for its unhealthiness. Chipotle
wants to convey the healthiness of its food and to do so it must separate itself from the
fast food industry. Chipotle can also differentiate itself by focusing on its menu along
with its safe farming practices. It seems as though there is not much of a difference
between the menus of Chipotle and its competitors so Chipotle must emphasize why its
burritos are superior to Qdoba’s and other competitors’. Although Chipotle does not
rely on commercial advertising, a more mainstream approach such as commercials and
Internet ads will further awareness of Chipotle’s transparent food production and
quality ingredients.
Creative Work Plan for Chipotle Mexican Grill
Brian Ackermann
JMA 340W
25 March 2014
Summary
This document outlines the creative work plan for Chipotle Mexican Grill. It
combines research with the marketing and media strategies for the brand. It defines
various aspects of the brand’s current strategy and character and suggests how this can
be expanded and translated into promotional tactics. These include advertisements in
the form of print, digital and electronic mediums.
Client: Chipotle Mexican Grille
Product: Custom Burrito
Background
Chipotle Mexican Grill is a fast-casual Mexican food restaurant that sells
burritos, tacos, salads and other Mexican foods. Within the past few years, it has been
moved into the newly formed fast-casual restaurant sector including chains that serve
food made to order (Pereiera et al., 2005). Chipotle was founded in 1993 and bought by
McDonald’s in 1996. In 2006, Chipotle separated from McDonald’s and currently
operates over 1500 restaurants worldwide (Kaplan, 2011, p. 140).
Problem
Since Chipotle has only released one commercial in its lifetime and its overall
promotion is minimal compared to most brands of its size, people that do not live near
a branch are not aware of the company. Also, people that know the Chipotle exists but
are not aware of their “food with integrity” plan. Many people are distrustful of fast
food because of the uncertainty of where it comes from. If those people learn about
Chipotle’s transparent food selection process, they will be more likely to eat there.
Advertising Objective: To increase product awareness by 20% over the course of one
year.
Message Objective: To generate an understanding of and a positive attitude about
Chipotle’s transparent food acquisition process.
Creative Strategy
Prime Prospects
The prime prospects are Millennials aged 18-29 throughout the United States.
This includes males or females. Younger millennials are still in college or fresh out of
college and still working for low wages. The millennial generation is characterized by a
strong sense of personalization and individuality and wants products tailored to their
wants and needs. Most of the target market is either in college or a recent graduate so
they are plagued by debt from student loans. Therefore, they want inexpensive
products with values that reflect their prices. (Sanburn, 2012, p. 61).
Principal Competition
Chipotle competes directly with other restaurants in the $5 billion fast-casual
Mexican food restaurants such as, Qdoba, Moe’s Southwest Grille and Baja Fresh.
Indirect competitors include other fast-casual restaurants such as Panera Bread, Five
Guys and Boston Market. Other less significant indirect competitors include fast food
restaurants like McDonalds and Wendy’s (Sacks, 2012, p. 125).
Brand Position/ Unique Selling Proposition
Chipotle aims to provide consumers with high-quality raw ingredients with its
program “Food With Integrity.” This means that the company has committed to only
obtaining ingredients from free-range farms. This does not spike the price because of
the small amount of ingredients needed for its menu. (Hochwarth, 2004, p.58-60).
Another unique aspect of Chipotle is that customers can see the ingredients going into
their burritos. When customers order their food, the server asks them what ingredients
they would like and all of the food is displayed in front of the customers so they can
witness its freshness.
Support
Chipotle’s commitment to healthy farming is conveyed through the quality and
taste of their food. Consumers can see and taste the healthiness and freshness of the
ingredients that make up their burrito.
Mandatories and Limitations
The advertisement must include the Chipotle’s logo, pictures of its burritos, the
ingredients available and the “food with integrity” program. The ad will not mention
any of its competitors directly.
Media Considerations
The majority of the media mix will be comprised of electronic, print, digital and
out-of-home media. Digital media will be the most prominent considering the
millennial generation consumes it more than any other type of media. Electronic media
will follow digital because it can garner a large amount of impressions nationwide and
more specifically promote the brand’s message. Print and out-of-home media will
follow and make up a smaller part of the media mix because they are generally
consumed less than digital and electronic media by millennials.
Digital
The digital media strategy for Chipotle will consist of an online banner display
advertisement, which will be placed on Yahoo.com. Social media contests will be
promoted through Twitter, Facebook and Instagram and an app allowing for ordering
food and locating Chipotle branches will be improved and promoted. The hash tag
“nomorecheatdays” will be used to emphasize the fact that Chipotle allows customers
to indulge in good food while not feeling guilty because its food is healthy. For
example, a Facebook/Twitter contest where people can win coupons by submitting
their usual “cheat day meals” will further involvement and interaction with consumers.
These media vehicles are the most prominent form of consumption by millennials and
are integral in garnering their impressions (Voorfield, 2013, p. 292-393).
Electronic
Television commercials will be placed on major television networks such as ABC,
NBC, CBS and Fox. The commercials will air during primetime from 8-10PM because
this is the time when most Americans, including millennials, watch TV. A radio
commercial will air on Pandora Internet Radio because millennials prefer products to be
individualized and Pandora can be tailored to individual music preferences.
Print and Out-of-Home
The Chipotle print advertisement will be distributed through a magazine article
in the New Yorker. According to PRIZM young professionals are likely to read this
magazine. Also, print advertising allows the brand to creatively display their message
through words and pictures unlike with most forms of digital media where copy can be
overlooked. The advertisement will also be displayed on billboards close to college
because it is an easy way to garner impressions from a large group of people. For
example, not every Duquesne Student may use a mobile application or follow Chipotle
on Twitter. However, if there is a billboard visible from the bluff, nearly every student
will see it.
Creative Direction
Brand Character
Chipotle’s character is modern and serious. It promotes itself as environmentally
friendly with copy written on its packaging informing customers of the benefits of
recycling. Its restaurants are laden with large windows and contemporary seating.
Tone of Voice
In Chipotle’s only commercial, the tone is serious and concerned. It is an animated
scene showing the differences between safe farming and injecting animals with
hormones and chemicals. This serious tone will continue in all other forms of
advertising but will be coupled with a more lighthearted atmosphere that still promotes
the message strategy of eating healthy food. Although some advertising material is
sarcastic and whimsical, it still maintains the brand character due to the color scheme
and style of copy.
Message Strategy
Chipotle’s competitors focus on the customization of their menu items. Chipotle can go
a step further with promoting its “food with integrity” program. By doing so, it will be
using logical appeals by encouraging consumers to eat its food because it is healthy.
Chipotle will use psychological appeals by instilling fear in the consumer of eating meat
infused with hormones. This will encourage consumers to be more conscious about
where their food comes from.
Tactic
The creative and message strategies will be executed through online banner displays
and social media presenting the product and the healthiness of the ingredients.
Commercials, magazine and print advertisements will also be utilized and will be
present in mediums that will target the millennial generation. The advertising will
promote both the individualization and the safety of the food products.
Client: Chipotle Mexican Grill
Product: Customized Burrito
Background
Chipotle Mexican Grill is a fast-casual restaurant that sells burritos, tacos, salads and
other Mexican foods. It operates over 1500 restaurants worldwide.
Problem
Lacks promotion, people that do not live near a branch are not aware of the company
and people that know Chipotle exists are unaware of the “food with integrity” plan.
Advertising Objective
To increase product awareness by 20% over the course of one year.
Message Objectives
To inform the audience about Chipotle’s transparent food acquisition process.
Creative Strategy
-
Prime Prospect Definition: Millennials aged 18-29 in college or recently
graduated. This includes male or female singles with middle to upper middle
class income.
- Principal Competition: Qdoba, Moe’s Southwest Grille and Baja Fresh. Indirect
competitors are Panera Bread, Five Guys and Boston Market.
- Unique Selling Proposition: Provides consumers with high-quality ingredients
with its program “Food With Integrity.” The company has committed to only
obtaining ingredients from free-range farms.
- Key Benefits: Free-range farming and obtaining ingredients without GMOs
provides healthy food without harmful chemicals and is not cruel to animals.
- Supporting Evidence: Chipotle’s commitment to healthy farming is conveyed
through the quality and taste of their food.
Mandatories
The advertisement must include the Chipotle’s logo, pictures of its burritos, the
ingredients available and the “food with integrity” program.
Media Consideration
Digital media, with a strong emphasis on social media, will be the most prominent.
Electronic media will follow digital because it can garner a large amount of impressions
nationwide. Print and out-of-home media will follow in the form of magazines and
billboards.
Creative Direction
-
Brand Character: Chipotle’s character is modern and serious. It promotes itself
as environmentally friendly with copy written on its packaging informing
customers of the benefits of recycling.
Tone of voice: The tone of promotional material is serious and concerned.
-
Message strategies: Chipotle will use logical appeals by encouraging consumers
to eat its food because it is healthy. Chipotle will use psychological appeals by
instilling fear in the consumer of eating meat infused with hormones.
Radio
Chipotle Mexican Grille
Chicken Burrito
30 seconds
Pandora Internet Radio
April 15, 2014
Setting: A young woman with a soft and inviting voice is informing consumers about
Chipotle’s “Food with Integrity” program and what it means for their food to have
integrity.
ANNCR: Somber and serious with a slow tempo. (Concerned, Serious) At Chipotle
Mexican Grill, we care about the food you put in your body. Our food with integrity
program gives you the highest quality food in the most humane way possible, while still
maintaining an affordable price. (Forceful) Integrity means, animals are free to roam in
open pastures and grow naturally without the use of hormones. Builds in intensity,
tempo increases. (Forcefulness builds) Integrity means, every worker is treated with
respect. Integrity means that when you taste a Chipotle burrito (0.05” pause) it’s the
best thing you’ve ever had. Continues. Eat with integrity. Try Chipotle.
Television
Client: Chipotle Mexican Grill
Project: Burrito Commercial
Script name: “Cheat Day”
Duration: 60 seconds
Treatment: (brief description of script): Mike and Greg are both dieting in hopes of
losing weight, but they allow themselves one “cheat day” each month. Greg indulges
on fast food and regrets it the next day when he is too sick to work out the next day.
Mike introduces him to Chipotle and informs him of the benefits of “Food with
Integrity.”
Video
Time
SETTING: THE LIVING ROOM OF A
00:05
MESSY APARTMENT.
(MS) MIKE AND GREG ARE SITTING
ON A COUCH WEARING WORKOUT
CLOTHES. GREG IS EATING
EXCESSIVE AMOUNTS OF FAST
FOOD. (MCU) MIKE ROLLS HIS
EYES.
(MS Pan Right) THE NEXT DAY MIKE 10:00
WALKS PAST GREG’S ROOM. (LS)
HE IS LAYING ON HIS STOMACH
ON AN UNMADE BED IN DISTRESS.
(LS) OUTSIDE OF A CHIPOTLE
RESTAURANT.
(MS) MIKE AND GREG ARE IN LINE
WHILE THE SERVER MAKES MIKE A
BURRITO IN A FRIENDLY MANNER.
21:80
(MCU) MIKE IS EATING HIS
BURRITO SLOPPILY.
34:03
23:00
Audio
Music: Playful and low-pitched,
sets lighthearted mood and blends
in with background.
Mike: Hey, why don’t you take it
easy over there?
Greg: Cheat day only comes once
a month (with mouth full). (…) I
gotta eat as much as I can.
Mike: (Shout) Hey! Are you
coming to the gym today?
Greg: (moans)
Mike: I told you to take it easy
with those fries. Try Chipotle next
time.
Mike: This is the good stuff right
here.
Mike: A little chicken, some salsa,
a little bit of rice and finish it off
with some lime chips.
Greg: But how is this (points at
burrito) healthier than a burger?
Mike: (With mouth full) It’s not
greasy, it’s made with real meat
and it doesn’t make you feel like
death the next day.
(MS) BOTH GUYS ARE SITTING IN A
BOOTH TALKING TO EACH OTHER.
ONLY MIKE IS EATING.
41:01
Greg: Yeah right.
Mike: No really. They get all of
their ingredients from small farms
that don’t give their animals
chemicals to make them grow
faster. (Takes bite) Come on try it,
stop worrying about cheat days.
(MCU) GREG TAKES A BITE OF
MIKE’S BURRITO.
50:70
ALL WHITE BACKGROUND WITH
THE CHIPOTLE LOGO IN THE
MIDDLE OF THE PAGE AND THE
WORDS “#NOMORECHEATDAYS”
ON THE BOTTOM.
55:00
Greg: Hmm, Chipotle instead of
cheat day. (…) I like the sound of
that.
ANNCR: Try Chipotle and you
won’t need a chat day. Come visit
us after your workout.
Digital Media
Twitter
What do you eat on your cheat day? Try #Chipotle and you won’t need one.
#nomorecheatdays
PPC Advertisement
Headline: Eat with Integrity I Chipotle
Descriptive Line 1: In a hurry? Don’t fill up on fatty food.
Descriptive Line 2: Personalize your burrito and witness the freshness.
URL: www.eatwithintegrity.com
Facebook News Feed Advertisement
Headline: Eat with Integrity (boldface type)
Sub headline: What do you eat on your cheat day? Send us a picture and we’ll send you
a coupon for a free burrito!
Image: The side of a Chipotle bag holding a burrito that reads, “Thank YOU for giving
me the day off. A few weeks ago, I had to work a twelve-hour day to get rid of all the
bad stuff you put inside me. All of the fresh vegetables and healthy chicken brought me
back to working order. After all, a guy needs a break once in awhile. Sincerely, your
body. PS. Try the spicy salsa next time; it gets boring in here.”
Chipotle often personifies objects by writing whimsical letters from those objects to its
consumers on the side of its bags. This letter is written from a person’s body to the
consumer about the healthiness of Chipotle’s food and the impact of unhealthy food on
the body. The advertisement is interactive because it encourages people to submit
photos and offers them sales promotion in return.
References
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Restaurant News, 39(18), 15.
Fontevecchia, A. (2013). Chipotle Defies The Short-Sellers As Rising Sales And
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88(4), 58-64.
In-N-Out, Panera Ranked Best of Breed. (2004). Restaurant Business, 103(6), 10-12.
Jennings, L. (2012). Advertising with integrity at Chipotle. Nation's Restaurant News,
46(10), 42.
Kaplan, D. A. (2011). Chipotle’s Growth Machine. Fortune, 164(5), 134-144.
Pereira, M. A., Kartashov, A. I., Ebbeling, C. B., Van Horn, L., Slattery, M. L., Jacobs Jr.,
D. R., & Ludwig, D. S. (2005). Fast-food habits, weight gain, and insulin
resistance (the CARDIA study): 15-year prospective analysis. Lancet, 365(9453),
36-42.
SACKS, D. (2012). Chipotle: FOR EXPLODING ALL THE RULES OF FAST FOOD. Fast
Company, (163), 124-126.
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doi:10.1080/08838151.2013.816709