Chipotle has a number of alternatives available for them to pursue in their new venture. The company may need to consider more moderate pricing in order to always provide the best quality to their consumers. The ingredients that they intend to use can be expensive and a nominal menu price increase would not affect most consumer’s intent to purchase, but would be very valuable going forward into this new market.
This higher revenue could also offset the cost of new marketing techniques that need to be evaluated. Currently, Chipotle utilizes word of mouth advertising and selected media campaigns that are designed to be emotionally engaging. These are effective modes of marketing, but they are not reaching all of their intended market. They should continue with their strategic marketing campaigns, but perhaps invest more heavily in social media, increasing their ability to reach younger demographics.
Marketing also needs to allocate resources for the full development of the website. Chipotle has been successful in developing their own website in an interactive, user-friendly way that educates their customers about their healthy food offerings. By educating consumers via their website about the importance of eating healthy, ShopHouse could also be increasing demand. The more
…show more content…
Restaurant site selection is increasingly difficult for companies and is one of the most important indicators for future success. In fact, their success or failure sometimes hinges on this one factor alone. They must heavily research: demographics, demand, location convenience, parking, visibility, and proximity to competitors. And, this is by far not an exhaustive list of all the criteria that needs to be assessed. If Chipotle is to be successful in this extremely competitive environment, they must identify all of the factors that may control their ability to