Chipotle is considering expanding globally and analyzing the Australian market. Australia has a growing population with rising incomes and a preference for higher quality ingredients. It has a large food service industry and populations that eats out often. A market analysis shows potential for over 2 million customers annually. Franchising is recommended to enter Australia, adjusting for cultural differences like dining times. Locating stores in major cities near younger demographic targets tourism. With suitable pricing, promotion, and distribution, Chipotle can successfully enter the Australian market.

1. Going Global: Chipotle
Devon Wescott
Kathleen O'Hearn
Asiana Gilchrist
Martin Yany

2. Company Overview
Founded by Steve Ells in 1993 in Denver, Colorado
-opened at an former Dolly Madison ice cream
parlor
Over 1,000 locations in 43 states
-2 locations in Toronto, Canada
-6 locations in London, UK

3. Chipotle the Brand
Mission Statement: "Food with Integrity"
-"fresh is not enough, anymore"
Chipotle Cultivate Foundation
- supporting family foods
- increasing animal welfare and pasturing
-increasing nutrition and reducing obesity in
children
"Back to the Start"
-sustainability

4. What Chipotle Has to Offer
"Fast- casual"
-line- up, self serving
High quality raw ingredients
-naturally raised pork, beef & chicken
-organically grown produce
Distinctive interior design
-working to make each store as sustainable as
possible
Limited menu
-burritos, burrito bowls, tacos and salad

5. Chipotle Expands
Shophouse
-Asian Restaurant
Very Similar to Chipotle
-same mission statement
-uses high quality ingredients
-concise menu
-interactive service format
Currently has 3 locations
-2 in Washington D.C.
-1 in Santa Monica, California

6. Purpose:
To decide on the best overseas market for
Chipotle to consider in order to create and
establish a successful global presence.
-Achieve purpose through market analysis
and country comparisons

7. Module 1: SWOT Analysis

8. Module 2: Determining Global Market Opportunity
Australia vs. New Zealand

9. Module 2: Determining Global Market Opportunity
Australia vs. New Zealand

10. New Zealand
-one of world's fastest growing populations
-72% in urban areas
-growing more modern
-developing a strong
market economy

11. Australia
-population nearing 23 million
-over 17 years of economic growth
-geographically isolated
-lack of real domestic market

12. Country Comparison
-Australia is more promising market to enter
-stronger population
-healthier
-rising incomes

13. Module 3: In- Depth Market Analysis
-Australia
Income: Recent increase leads to
increased discretionary income
Cultural Preferences: Australians have a
tendency to prefer higher quality food as
opposed to food that may be cheaper
- increasing preference for chicken and
red meat

14. Module 3: In-Depth Market Analysis
Population: largest population segments
represent majority of Chipotle's target
market
- age 15-25= 13.5%
- age 25-54= 42.2%
Foreign Direct Investment Policies: ranked as
having fewest restrictions on product market,
and 3rd fastest place in the world to start a

15. Module 3: In-Depth Market Analysis
Industry Growth: food service industry
expected to rapidly grow in next few years
-Australians developing a habit of eating out
for lunch and dinner as opposed to dining in
- 3.8% growth
in fast food
restaurants in
last year alone

16. Module 3: In-Depth Market Analysis
Total Market Potential: 2,116,745,232
-12, 599,674 potential customers purchasing
product 24 times annually (twice a week) at
an average of $7.00 per purchase
Competition:
-Montezuma's and
Taco Bill's
- Taco Bell=Taco No

17. Module 4: Market Entry Strategy
Entry Strategy
Franchise is the best option for Chipotle
- Use cultural differences to adjust their
marketing plan
Ex: Dinnertime in America vs. Australia
- Corporate may not be able to pay attention
to small details, yet owners of certain
locations can

18. Module 4: Product/Market Strategy
Large agricultural market
- do not need to outsource
- cut down prices
Eating out is a growing habit in
Australia
- Balance between healthy eating and eating
out
- 'Grab and go' restaurant vs. what is in
current market

19. Module 4: Pricing Strategy
Pricing of McDonald's should relate to pricing
of Chipotle
- Reflect that 27.9% increase in pricing
Average Chipotle Pricing
- $5.25-$7.25 for a burrito in America
- In Australia: 27.9% increase...
- $6.71-$9.27

20. Module 4: Promotional Strategy
Quality over quantity in advertising methods
- ex: Back to the Start video
In Australia, 'content media'
- Facebook, Twitter, LinkedIn, and YouTube
- Focus in on important aspects in Australia
- ex: Charities, the environment etc...

21. Module 4: Distribution Plan
75% of population live in big
cities in Australia
- Keep in mind the 16-30 age group
- Places such as Perth and Sydney
High tourism in these cities as well
- Americans visiting in Australia may look for
a restaurant that is familiar

22. Conclusion
Chipotle has the opportunity to successfully
enter the market in Australia
- Must adjust and keep in mind the
cultural differences in Australia

23. Sources
http://theinspirationroom.com/daily/2012/chipotle-back-to-the-start/
http://www.cultivatefoundation.org/about
http://www2.qsrmagazine.com/articles/features/138/global_growth-3.phtml
http://www.fool.com/investing/general/2012/11/29/chipotles-shophouse-moves-
into-expansion-mode.aspx
http://www.ausfoodnews.com.au/2012/07/23/australian-consumers-change-
eating-out-habits-in-2011.html
http://www.indexmundi.com/australia/demographics_profile.html
http://en.wikipedia.org/wiki/Median_household_income
http://en.wikipedia.org/wiki/Economy_of_New_Zealand