This document analyzes the marketing strategies of Chipotle Mexican Grill. It provides an overview of Chipotle, including its founding, revenues, and "food with integrity" approach. It then performs an environmental scan, noting competitive pressures and Chipotle's commitment to local, sustainable ingredients. Comparative analyses of competitors Qdoba and Moe's Southwest Grill are given. Customer profiles examine Chipotle customers demographically, psychographically, geographically, and behaviorally. A SWOT analysis of Chipotle is presented. The marketing mix of product, price, place, and promotion is explored. Future developments around new products, pricing, store growth, and promotional strategies are outlined.

1. Marketing Analysis: Chipotle
Jon Ajila, Bryce Avila, John Barrasso, Stephen Dierks

2. Introduction
• Chipotle Mexican Grill
• Traded on the NYSE (579.55 closing as of 11/30/15: Yahoo Finance)
• 1993: Denver, Colorado
• “Fast-casual” dining
• “Food with integrity”

3. Introduction
• Revenues - $4.1 Billion (2014 financial report)
-Billion dollar increase from previous year
• Production capabilities - 1783 total restaurants
-Not a franchise

4. Environmental Scan
• Recovery from 2008 recession
• Fast food industry is extremely competitive
• Employee benefits for starting positions
• Set career paths

5. Environmental Scan
• Uses local farmers instead of industrial
agriculture
• Strict farming conditions must be met
-Shortage of carnitas
• No artificial flavors, fillers, or genetically
modified organisms (GMOs)

6. Environmental Scan
• Society wants quality food in a short amount of time
• Desire for healthier food options
-Nationwide obesity is at an all time high
-Better option than competitors

7. Comparative Analysis: Qdoba
• Mexican fast casual restaurant
• Began as Zuma Fresh Mexican Grill in 1995 and became Qdoba in 1999
• Owned by Jack in the Box Inc.
• Over 600 Locations
• Franchise

8. Comparative Analysis: Qdoba
Strengths:
-Widespread presence
-Convenience
-Customizable meal
-Strong customer relationships due to rewards
program
-Breakfast and Kids Menu
Weaknesses:
-“Franchise” limits differentiation amongst
restaurants from location to location
-Must fit one mold
-Limited advertising
Opportunities:
-Offer more healthy meal options
-Increase advertising
-Expand to new markets
Threats:
-Rising food and labor costs
-Direct competition from competitors

9. Comparative Analysis: Moe’s Southwest Grill
• Mexican fast casual restaurant
• Began in December 2000
• Owned by Focus Brands
• Over 600 locations
• Franchise

10. Comparative Analysis: Moe’s Southwest Grill
Strengths:
-Widespread presence
-Convenience
-Customizable meal
-Strong customer relationships due to strong
social media presence
Weaknesses:
-”Franchise” limits differentiation amongst
restaurants from location to location
-Must fit one mold
Opportunities:
-Offer more healthy meal options
-Expand into new markets
Threats:
-Rising food and labor costs
-Direct competition

11. Customer Profile: Geographic
• Over 1,700 locations domestically and internationally
• Densely populated in the southwest and northeast

12. Customer Profile: Demographics
• Economically comfortable consumers
• Young, technologically savvy consumers
-Smartphone App and online ordering
-Generation Gap
• Highly profitable

13. Customer Profile: Psychographics
• Vegetarians
-Only 3.2 percent of American adults
• Environmental Protection
-Form relationships with farmers who do not use antibiotics or synthetic fertilizers for livestock
and crops, respectively
-“Farm to table” initiative reduces transportation emissions

14. Customer Profile: Behavioral
Health conscious individuals who seek nutritional benefits
Use of non-genetically modified organisms in food
Nutrition calculator
NUTRITION CALCULATOR
SELECT A MEAL TO BEGIN YOUR CALCULATION

15. Chipotle SWOT Analysis
Strengths:
-”Food with Integrity”
-Widespread presence
-Convenience
-Customizable meal
Weaknesses:
-Higher prices than competitors
-Less menu items than competitors
-Limited advertising
Opportunities:
-Expand into new markets
-Add new menu items
-Increase advertising
Threats:
-Direct competition
-Rising food and labor costs

16. Marketing Mix: Product
• Chipotle Mexican Grill
• “Fast-casual” Mexican cuisine
• “Food with integrity”
• Simple menu offering
• Risk of imitation by competitors

17. Marketing Mix: Price
• Price at market compared to direct competitors
-Have greater total revenues year over year compared to competitors (CSI Market)
• No value menu compared to indirect competitors
-McDonald’s Dollar Menu
• Different cost associated with choice of meat and premium toppings
• Prices vary by state

18. Marketing Mix: Place
• Denver, Colorado
• Over 1,700 locations domestically
• Over 17 locations internationally
• Small and large cities alike

19. Marketing Mix: Promotion
• Non-traditional marketing strategy to attract millennials
-Online marketing through social media and web-advertising
• Generation gap because of lack of traditional print or television promotion

20. Future Developments: Product
New Products:
-Sofritas
-Chorizo
● Sofritas
○ Shredded tofu infused with Chipotle inspired
ingredients
● Chorizo
○ Mexican Style sausage made from ground pork and
chicken

21. Price Considerations
• Increase in overall market price
• Chipotle is forced to react to change in price
• Trends suggest there will be continued price increases
• Chipotle has increased beef prices 4-6% in August alone

22. Places
• Currently 1,783 locations nationwide
• Expecting to have opened more than 200 new
stores by end of 2015
• More than 17 international locations including 7
in London and another in Frankfurt, Germany

23. Promotional Strategies
Current Strategy:
-Little to no advertising
-Focus on “Food with Integrity”
-Rely heavily on word of mouth
New Strategies:
-Focus on promotional offers
-No need for mass advertising due to popularity
-Multi-platform advertising
-Social Media

24. Thank You!

25. Works Cited
● "Chipotle." Chipotle. Chipotle Mexican Grill, Inc., 2015. Web. 30 Nov. 2015.
● "Chipotle Mexican Grill, Inc." Yahoo! Finance. Yahoo!, 30 Nov. 2015. Web. 30 Nov. 2015
● "Chipotle Mexican Grill Inc's." Chipotle Mexican Grill, Inc Competition Comparisons to Its Competitors, Market Share and
Competitiveness by Segment. CSIMarket Company, 30 Nov. 2015. Web. 30 Nov. 2015.
● "The Scarecrow." YouTube. YouTube, 11 Sept. 2013. Web. 30 Nov. 2015.