V. Marketing Strategy
Chipotle has a marketing strategy that is unlike any company we have seen in the food service industry. They have strived to reach their audience in a unique and effective way. By achieving this, it is strengthening the company as well as multiplying the consumer base. In the section of the Chipotle’s marketing plan we will analyze how exactly they market their product by showing what has been proven a success for Chipotle as they continue to grow across the globe.
Chipotle is known for its unconventional marketing strategy. The industry of food service is known for having hundreds of millions of dollars invested into its marketing plan and strategy in ...view middle of the document...
Chipotle sells high quality Mexican fast food. As in their market strategy, they keep things simple offering three options: burritos, burrito bowls (Salads), and tacos. Their meets consist of steak, chicken, shredded steak, pork with toppings of salsa’s, cheese, sour cream, and guacamole, also offering the options of chips and beverages on the side. It is the healthiness of their product that pushes their product strategy. They strive to support humane food sourcing and organic farming, providing only the best ingredients of its customers.
Chipotle’s prices are higher than your average burrito restaurant due to the high quality of its food. Since gaining popular notice over the past few years, its prices have not fluctuated. In the recent past months, Chipotle noticed a decline in its fourth quarter profits as well as a decline in its price of stock. This has led Chipotle to being adding new meats to its line-up in order to stay competitive. Chipotle also has another pricing strategy for stores in high volume areas. When customers pay with cash for their food, the computer will automatically round the price down thus adding a few extra cents into the customer pocket. This method is only used on cash transactions at high volume stores.
The distribution method of chipotle is very smart. They began in Denver Colorado and since then have expanded all over the world. Their choice of expansion in the United States is not what draws them apart. Instead, it is their international strategy that separates them from the rest. Chipotle is very quick to expand domestically, however very strategic when expanding internationally. They have chosen to only build in very high volume cities. They currently have only two locations in Europe: London, England and Paris, France. They only went with one location so that they can build a customer base and increase its popularity across the globe. They also have locations across Canada, with a bulk of their locations in the US.
Chipotle has recently opened a fast casual Asian concept restaurant called ShopHouse which is only found in Washington D.C. There are plans for a ShopHouse to be built in Los Angeles later this year.
E. Marketing Communication
Their communications is not relying upon its advertisements in the media. Rather, their communication strategy is to push its good reputation of high quality ingredients among its consumers. This alone will bring in the customers. More recently they have been putting out more and more advertisements advocating their support for using meat from animals raised without antibiotics and growth hormones. Their ads are playing against their own ads in a way that directly tells the reader that they use meats without hormones, or that they are firm supports in organic farming. Chipotle’s ads are done is a humorous way. Their marketing is all done in-house, meaning they do not pay an agency to market for them. Their ads, in a way,...