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.
Qdoba Mexican Grill is a very well structured company. In this paper we had taken a look at Qdoba’s history and saw how they came to be the company they are today. We also took a look their stock and saw how they are doing in the stock market and are the main provider for Jack In The Box. I talked about what its like to own a franchise, and showed you how much it cost to be an owner of Qdoba Mexican Grill. I explained why I always choose Qdoba over Chipotle, and that there isn’t too much of a difference between the two.
Bargaining Power of Suppliers Not like many other names in the fast food industry, Chipotle's bargaining power of suppliers is higher than most. If you take for instance Mcdonald’s or Taco Bell, their main focus is not how the cow was raised that supplies them with one dollar hamburgers or where the tomatoes were grown that they are larger
If Chipotle is to be successful in this extremely competitive environment, they must identify all of the factors that may control their ability to
Running and making a successful listed company like Chipotle needs the effort of top management officers, board of directors, executive officers and all the employees. Although Chipotle is facing the new entrant threats and intense competition in the fast casual restaurant industry, it has competitive advantages in food quality and taste to capture the market shares. From two analyses of Chipotle, three problems are identified, including problem of high costs, problem of food safety and problem of limited choices on menu. Fortunately, Chipotle set up a food safety department to prevent the food safety problems and it works. Moreover, it held the festivals to promote the products and gained the reputation and profits.
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.
Chipotle also competes with supermarkets, since they give consumers the option to purchase ingredients to cook at home or consumers are able to purchase precooked, frozen meals. Taco Bell, Qdoba and Supermarkets can also be considered substitutes for Chipotles food offerings because they all serve similar food choices in the market. However, Chipotles food quality and ethical buying sets them apart in the market. Due to the intense competition in the market, new entrants are a threat
Since 1993, when its first restaurant was opened in Denver, Colorado, Chipotle proved to its clients that high-quality food can be served fast. By using only fresh ingredients and adding no artificial flavors, Chipotle has managed to create trustful relations with its customers and even expanded its business to other countries. Chipotle has opened its stores in few countries such as the UK, the US, Canada, Germany and France. It is now time for the corporation to follow the lead from other companies like Yum. Brands such as KFC and Taco Bell as well as McDonalds expand their footprint in the Asian market like Japan.
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.
Our two businesses, Taco Bell and Qdoba, both are in the business of selling tacos and mexican foods to their customers and try to ensure quality food. With similar products comes competition. Taco Bell and Qdoba are indirect competitors as Qdoba is more of a sit down restaurant and, isn’t considered fast food. Qdoba doesn’t have a drive thru unlike Taco Bell, and Qdoba serves authentic Mexican foods, also unlike Taco Bell. Qdoba focus on their quality and not their prices of the foods compared to Taco Bell, they don’t advertise their prices as much or have special deals.
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.
Introduction The restaurant industry in the United States had annual sales of $ 631.8 billion and employs 12.9 million people in 2012. Even in times of recession there is little evidence that this industry has seen a decline especially in its fast food and quick service segment. But with a depressed economy with no immediate upward trend in the near future, majority of the customers indicated that they would either curtail their spending on eating or best maintain its current level which is certainly going to affect the future of many restaurants in the industry. Chipotle is part of the fast casual segment of the U.S industry with over 1,600 restaurants.
They plan to slowly convert to full organic and natural ingredient by going in increments to slow adjust their business and customer to change. Bargaining Power of Buyers: High In the restaurant industry the customer has high power because of how saturated the market is. Although they have very little control over the price of products, they have low switching cost that allows them to seek the best price. With the numerous restaurants available to customer, it gives them the power to choose other places to eat besides Chipotle.
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.
With these premium products as inputs, Chipotle maintains its status as an industry leader, and thus, should continue to expand throughout the U.S. and later into the international market. Despite Chipotle’s success in the U.S., it faces challenges to low brand awareness and competitors competing for its markets. However, by reviewing menu and developing marketing strategies through passive marketing strategies and developing to integrate their supply sources than before Chipotle can be as competitive as before and expand at the same
