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.
My high school graduation, state championship banquet, and late night food runs throughout high school were all catered by Chipotle. I’ve been involved in so many delightful conversations and learned so much about my friends and family over a hearty meal from this restaurant. The service is amazing, the atmosphere is great, but the food is what brings everyone together. All the food Chipotle offers mixes together perfectly and you can always finish your meal off with their queso. I cannot think of one time that queso was not smothered all over my burrito bowl since they started serving it.
" This shows that, Chipotle success comes from the use of classic cooking, distinctive food design, and fresh ingredients. Furthermore, Chipotle brought back the Mexican food to the American customers so that can people experience with different food that is not typical of their culture. Moreover, "Today, the chain boasts more than 1,550 units and holds a market capitalization of nearly $16.7 billion... Chipotle is not only the undisputed leader in the growing fast-casual space, but also an increasingly emulated brand (Jennings, L).
Chipotle give experience to customer from entrance of the restaurant until they order their foods. The company allows people customize their own foods. Chipotle make its company differentiate from other by using high quality of ingredients and serving freshest foods. It focuses on people who love delicious healthy foods. Moreover, the company always promotes its products by giving free burrito on some holiday and the first day of grand opening restaurant (Chang, 2014).
Chipotle Mexican Grill STRENGTHS • Green technology • Positive bran image • Fresh and healthy food • Great customer service • Low advertising costs • Great financial performance in recent years WEAKNESSES • Lots of competition • High Price OPPORTUNITIES • Expansion of menu times • Ability to expand advertising costs • Ability to develop a market strategy to increase market share THREATS • Not a lot of menu options • High menu price • Competition is growing Chipotle Mexican Grill is a company that operates in the casual fast food Mexican restaurant market. They mainly operate in the United States but have expanded to Canada, the United Kingdom, France and Germany in recent years.
Having a Twitter, Instagram, Snapchat, and Facebook would make the younger generation come dine in and see how the grill has changed since the E. coli outbreak. Positioning of the Product: Chipotle is a Mexican fast food chain that offers burritos, tacos, chips, and other choices. Two of their biggest competitors are Taco Bell and Qdoba. They all offer around the same type of food, but Chipotle sets its self apart from them.
They’re going to pay for something they feel has the quality they want. What one of our participants loved most about chipotle was getting to control what went in to her burrito vs being forced to select from a pre set menu. 3. In order to keep young people loyal they need to show them more customer appreciation. We found that not many people have the ordering chipotle app downloaded.
When it comes to fast food restaurants, most people tend to think of McDonald, Taco Bell, and KFC. Chipotle, however does not seem to have its name associate with the fast-food industry sector. Chipotle is a very successful Mexican-American chain restaurant that operates in more than 2000 locations world-wide. Its tremendous success results in its exponential growth and rising profit margin despite the scare of E. coli, Salmonella, and Norovirus in a few of its stores.
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.
This provides a valuable tool for molding the kind of success-orientated culture at Chipotle. Instead of wasting time and resources while recruiting new members, they save time, capital, and resources by rewarding and promoting from within. This leads to maximization of profit, reduction of turnover, and improved employee satisfaction and performance through retained knowledge, skills, and experience of long-term employees. The net effect of these communication and management methodologies is to ensure that services offered to customers are of the highest possible quality. For example, 84% of the customers spend less than five minutes waiting to be served.
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
Chipotle’s challenge is to regain their consumer’s trust and provide food and/or services that is unique to their
And achieve as a result, the grow for its brand, market share, and sales revenue. Key Issues for Chipotle Chipotle is quite strongly positioned fast casual segment but it is facing increasing competition from the quick service restaurants such as Taco Bell that are looking to compete for the market share. These quick service restaurants are trying to attract fast casual customers by providing similar products at a lower price which is a threat to
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.