Chipotle - Marketing Strategy
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This document outlines a marketing plan for Chipotle to expand in France. The objectives are to reach young consumers and enter new cities. Currently, Chipotle only has 4 locations in Paris. The plan proposes using food trucks to introduce the brand and menu in new cities. Marketing tactics include maintaining social media strategy, value-based pricing, and hybrid marketing channels. Implementation would involve food truck tasting events over 3 months to generate interest, followed by opening stores in 2 years in the most successful locations based on feedback. Evaluation metrics are sales, customers reached, feedback, and meeting strategic goals.
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Chipotle - Marketing Strategy
- 1. Chipotle Louise Quillard & Julie Kromar
- 2. Table of content Marketing plan : 1/ Executive summary 2/ Situation analysis 3/ Marketing goals and objectives 4/ Overarching strategic approach 5/ Marketing tactics 6/ Implementation 7/ Evaluation and control
- 4. 1/ Executive summary ● Objectives: reach young consumers, enter new cities ● Immature Mexican food market in France - only Paris ● Mission statement : “Food with integrity” ● Vision: Cultivating a better world with “every burrito we roll” ● Expand channel usage ● Utilize social media as quick feedback and free advertising
- 6. 2/ Situation analysis - Internal environment ● Mission : ○ Mission statement : “Food with integrity” ○ Naturally-grown ingredients and meat, dishes prepared by hand ○ Fast casual dining restaurants ● Vision : ○ Cultivating a better world with “every burrito we roll” ○ Giving the clients healthy food, taking care of their suppliers ○ Fast food restaurants, with real ingredient truly tasty
- 7. Chipotle in France ● Four french locations ● Social media presence - available, not strong ● Don’t have the customer base like the states ● Need to expand further in France - open opportunity ● Tastes different than US - need consistency
- 8. 2/ Situation analysis - Internal environment 4P implementation : ● Products : ○ Humanely raised meat, fresh vegetables. Assembled after the order ○ Unique burrito sauce, more than 65 000 combinations for burritos ● Price : ○ More than 10 euros for a menu : more expensive than other fast food chain ○ Raise of prices due to the increase in costs of meat, vegetable and cheese ○ Price as a proof of quality, real value for money ● Place : ○ 5 restaurants in Paris : in business areas, close to metro stations ○ Delivery partnerships with Tok Tok Tok and Take it Easy ● Promotion : ○ Focus on the natural behaviour ○ Advertisement on social medias to get the attention on the client’s experience ○ Word of mouth strategy : cheap, with a real dialogue with the customer ○ French website not really developed yet : just the main information
- 9. 2/ Situation analysis - Internal environment Product portfolio : In the main dishes we can add meat, rice, beans, sauce, cheese, lettuce... Main dishes Burrito Plate Tacos Salad Side food Chips tortilla and guacamole Chips tortilla and sauce Drinks Margarita Fruit juice Water Soda Beer
- 10. 2/ Situation Analysis - External environment PESTEL Analysis : ● Political : ○ Complies with government regulations regarding food and hygiene. ● Economic : ○ Economic changes have impact on the disposable income ○ Products’ scarcity and price inflation (food prices increase and potential consumers loss) ○ Interest rates, unemployment rate, price fluctuation… ● Socio-cultural : ○ Health-conscious customers ○ Fads and popularity : increasing number of restaurants, pricey but continues to thrive ○ Most popular segmented market are the millennials, baby-boomers are not the target ● Technological : ○ Digital marketing tactics, apps for smartphones ● Ecological : ○ Environmental friendly company, based on providing organic products to customers ● Legal : ○ More and more regulations regarding food safety that make harder selling the products
- 11. 2/ Situation Analysis - External environment PORTER’s 5 forces :
- 12. 2/ Situation Analysis - SWOT Analysis ● Strengths : ○ High quality products ○ Innovative and low-cost advertisement ○ Strong relation with suppliers ● Weaknesses : ○ High-priced menu ○ Major presence in the US but just 4 restaurants in France ○ High-dependency on word-of-mouth with the advertising through social media ● Opportunities : ○ Expansion to new countries (with the franchise model) ○ Addition of new menus ○ Direct mail invite ● Threats : ○ Competition on price from the other chains ○ Economic instability, volatility of price ○ Growing bargaining power of suppliers
- 13. 3/ Marketing goals and objectives
- 14. 3/ Marketing goals and objectives GOALS OBJECTIVES Reaching young clients ● Offers with students ID ● Be present at student events, fairs, concerts ● Creating partnerships with schools Entering new cities ● Making market studies in potential cities ● Sending food trucks serving free samples in these cities ● Offers on social networks to promote the new restaurants
- 16. 4/ Overarching marketing approach ANSOFF Matrix ● If they enter new cities in France, other than Paris, it would be a market expansion ● If they expand their menus, it would be a market penetration
- 17. 4/ Overarching marketing approach Chipotle should follow a market expansion strategy ● Market expansion : “the process of offering a product or service to a wider section of an existing market or into a new demographic, psychographic or geographic market” It should offer its products to teenagers and young adults : ● They are an environment-friendly generation ● They are the main consumers of fast-food ● They use a lot social media, which is the principal source of advertisement for Chipotle It should enter new cities : ● To have a strong customers networks all around France ● To enter in a real competition with the other fast-food chains
- 18. Channel Usage ● Cross channel usage ○ Mobile ○ Website ○ Retail in store ○ Immature: direct mail, email ○ Ordering online to pick up in store ● Multi-channel plan ○ Distribution ○ Communication ■ Gaps in French communication to consumers
- 20. 5/ Marketing tactics ● Keep their social networks strategy ● They should follow a value-based pricing : ○ Asset customer needs : low prices ○ Set target price to match customer perceived value ○ Determine costs that can be incurred ○ Design product to deliver desired value at target price ● Premium strategie : higher price and quality than the competitors, at lower price than now ● Hybrid marketing channel : ○ Producer - Retailer - Consumer ○ Producer - Retailer - Delivery - Consumer ● Selective distribution : ○ Few stores, owned by the company : control ○ Consumer : see product, receive sales help, personalized service The goal is to retain the consumers : the longer they stay, the more profitable they are
- 22. How Will It Work ● Before opening stores, have tasting events with trucks ● Trucks will be placed in large French cities, event will be publicized over social media, through email and around the city ● Trucks will have interactive online feedback, in addition to social media use ● Download chipotle app for specials, SMS text option ● Measure success/failure with the feedback and general success of the event ● Planning: 1-2 months ● Action: 3 months ● Eval: 2 months ● Implementation: 2 years
- 23. Process ● Design overall plan, secure trucks, build necessary media components (1 month) ● Advertise, promote and invite people (1 month) ● Social media interaction invite/direct mail invite (1 week) ● Actual events (span over 1 month period) ● Social media & feedback dialogue (right after event - no end point) ● Evaluation & implementation of stores in most successful areas (2 years)
- 25. Control & Evaluation ● Quantifiable metrics: ○ numbers of sales leads obtained ○ customers reached ○ dollar amounts achieved ○ Impressions / interactions on social media ● Qualitative factors: ○ Customer satisfaction & feedback ○ Examining strategic objectives from the implementation phase ● Controls: ○ Overall budget ○ Market share
- 26. References