Chipotle Mexican Grill has been a very successful company since its inception in 1993. One of the biggest reasons for the company’s success is because of its marketing mix. Chipotle’s marketing mix of price, place and promotion will be analyzed to see which has provided success to Chipotle. This analysis will also help identify a marketing mix weakness of Chipotle.
If Chipotle is to be successful in this extremely competitive environment, they must identify all of the factors that may control their ability to
Chipotle is one of the most successful restaurant in the U.S. but every organization got some weakness and problems, today I would like to share with you what is the biggest chipotle’s problem ever that cost this restaurant a lot of money and lose trust from costumers and bad image in the media which is POISONING !! :- The fifth-biggest multistate sustenance harming flare-up of 2015 was the E. coli episode connected to nourishment served at Chipotle eateries in nine states. No less than 52 people were sickened, 20 of them were hospitalized. The episode was one of a few nourishment harming flare-ups connected to Chipotle this year including a Salmonella flare-up that sickened more than 60 individuals in Minnesota.
Chipotle Mexican Grill, Inc. operates in a services sector and restaurants industry. It competes with fast, casual and dining restaurants in the industry based on price, quality, taste, location, services they offer, customer experience, brand reputation, interior, operating costs, management, diverse menu, effective marketing, facilities and safety of food. Chipotle has a lot of competitors in this segment. However, the company’s primary (direct) competitors are the restaurants that produce the goods and services that are very similar to Chipotle’s goods and services, specifically the ones that serve Mexican
As we known, the firm's resources include tangible resources and intangible resources. Intangible resources is more difficult to be imitated by competitors than tangible resources. Therefore, the intangible resources are more valuable and can bring a relatively permanent competitive advantage to the firm(HIH, 2015). Chipotle's overall organizational resources is good. As its mission said, food with integrity.
This vision however is being sorely tested with the recent health crisis. Chipotle is now faced with a severe loss in sales and customer confidence. Also within the framework of this crisis the company’s future and financial bottom line may be severely impacted. Problem
Chipotle is in the fast casual industry where competition is extremely intense since there are so many different dining options. An industry like fast casual restaurants has a very high growth rate therefore there is not just one company that has the market cornered. What sets the restaurants apart is not cost but product differentiation; they position themselves in the market with their slogan of Food with Integrity. Since restaurants in the fast casual industry are priced fairly in the same range Chipotle uses different product features to set themselves apart from the others (parature.com). The first value driver in Chipotle’s differentiation strategy is the product quality; they utilize local farmers who are conscience of the environment.
Chipotle is a very successful company where I could develop my personal and work skills. Since I am in Canada, I got good references of Chipotle as a great workplace. Chipotle is a brand which values its associates. In addition, I am proud of being Mexican and I like so much sharing our culinary culture with others. Upon working in Chipotle, I can accomplish my goal that others know more about Mexico.
Abstract Chipotle Mexican Grill is a well-known company that deals with fast food and has made significant and distinctive progress compared to other companies in the fast food industry. The company not only prepares food in front of customers but also makes sure that food is made with integrity. The integrity is enhanced by finding, evaluating, and choosing the right ingredients, which are from animals, farmers, and the environment (chipotle.com). These are the principles that serve to direct and guide the organization and help position it as a leader in the industry.
Chipotle and ShopHouse both compete in markets within the restaurant industry. The restaurant industry is huge, accounting for $632 billion dollars and 970,000 establishments in 2012 (Thompson et al. c-125). Chipotle, a member of the rapidly growing fast-casual type of restaurant, competes mainly with Qdoba and Moe’s Southwest Grill, two restaurants very similar to Chipotle, as well as Taco Bell (Thompson et al. c-123). ShopHouse’s main competitors are similar to itself in the same way that Chipotle’s competitors are similar to it; they include Pei Wei, Panda Express, and Noodles and Co. ShopHouse also competes with other major fast-casual chains as well, such as Panera Bread.
Chipotle, a Mexican restaurant chain, has developed a distinctive place in the competitive food industry through a tactical merger of branding strategies that connect with consumers. Through their creative brand identity, advertising, sponsorships and unique product packaging, Chipotle shapes the views and interests of consumers in today's sales. The center of Chipotle's branding strategy lies a distinctive brand identity that separates it from today's companies, which is expressed through its logo, slogan, and the overall aesthetic. Chipotle's logo is basically a minimalist style with a pepper icon to represent them using fresh ingredients. To add on, Chipotle's slogan, "Food with Integrity," showcases its dedication to distributing safe food.
-Low threat of new entrant ( High input costs ) Threats -Input costs are increasing and fluctuating (beef price is rising and some ingredients such as wheat price is fluctuating) -All the restaurant’s segments are competitors and are not only competing at their own segment but also with other segments (e.g. Chipotle Competes with meals prepared at home as well as frozen or packaged food items available in supermarkets) -People reduce eating out spending economics recession and this might affect Chipotle -Competitor’s pricing strategy – competitors such as Taco Bell are offering similar products with reduced prices to compete for Chipotle’s market share -High threat of substitute fast food ( variety of choices for consumers) Situational Analysis for Chipotle Alternative Actions and Evaluation of Alternatives Alternatives Pros Cons 1. Differentiation Strategy by “ Food with Integrity” ( current Strategy) -Differentiate from competitors -Get more attraction because of unique style of serving -Rising food prices -Need for more produce as raw material inputs -Low awareness than other brand due to their marketing style of loyalty and word of mouth
In order to be effective, a company must close the gap between the firm’s situations and its stakeholders’ expectations. In this case, the most affected stakeholders in regards to the food poisoning where chipotle customers and employees. Responses The main ethical issues arise from a bad management behavior towards food policies.
Compared Chipotle’s competitive advantages to its competitors in the same industry including Taco Bell, Moe Southwest Grill and Qdoba Mexican Grill, we can see that while there are some competitive advantages are equal and even higher than its rivals’, there are still some competitive advantages are lower such as dealers network * Chipotle does have a net competitive advantage. Firstly, they have a focus menu, along with classic cooking technique, which enhances the taste of the food. Secondly, Chipotle establishes a reputation for using organically high – quality ingredients, which attracts customers because of its consciousness for healthy lifestyle. In addition, Chipotle is famous for its quick and hospitable service.
Chipotle Strategic Profile and Case Analysis Purpose Chipotle Mexican Grill founded in 1993 by Steve Ells became known as the fast-casual dining in the restaurant industry (Hitt, Ireland, & Hoskisson, 2013). It was the first of its kind when Ells first opened his first restaurant and brought the idea of made-to-order burrito. The concept is so simple, and the consumer is in control of what ingredients goes into their burrito. “The immediate success from Ells’ first restaurant allowed him to repay the $80,000 loan that he borrowed from his father within a month of opening” (Hitt, Ireland, & Hoskisson, 2013, p. 71). Furthermore, this gave him the confidence to open his second restaurant in just two years.
