Chipotle Campaign

When designing advertising campaigns you must not only think of consistency but also the "concept", keep in mind the more Chipotle Campaign

When designing advertising campaigns you must not only think of consistency but also the "concept", keep in mind the more memorable the ad the better chance that your audience will not only relate to the message but they will remember it. A great example is the mexican restaurant, Chipotle, who focuses quite often on their enormous burrito. Chipotle generally implements simplistically designed ads that primarily focus on an image of their well known burrito along side a tag line that always grabs the audience's attention. Use of white space certainly is an effective design element in their advertising. Also majority of their advertising works well in black and white so it also becomes very cost effective.

memorable the ad the better chance that your audience will not only relate to the message but they will remember it. A great example is the mexican restaurant, Chipotle, who focuses quite often on their enormous burrito. Chipotle generally implements simplistically designed ads that primarily focus on an image of their well known burrito along side a tag line that always grabs the audience's attention. Use of white space certainly is an effective design element in their advertising. Also majority of their advertising works well in black and white so it also becomes

very cost effective.

Counter-Intuitive Locations Will Lead to Bluer SeasAn important way to

target groups willing to trade up in price is to locate more stores in

demographic areas that have high concentrations of these buyer groups. 

While this sounds obvious, the tactics of this strategy for Chipotle’s value

proposition are counter-intuitive.  Restaurant industry logic typically

clusters competitor outlets in similar and close proximity. Running counter

to this logic, Chipotle would be better suited near a mid-range restaurant,

rather than near a fast food restaurant. Likewise, it should strategically

positioned and pitched as THE “mid-range” option among fine and upscale

dining establishments, not the “expensive” place passed by the fast-food

strip.

How to Out-Maneuver Three Major Types of RestaurantsFor all three of

these types of restaurants, the Blue Ocean Value Canvas diverges

favorably for Chipotle.  The fast food restaurant will be irrelevant because it

won’t be in proximity, the mid-range restaurant will lose twice on price and

quality, and the fine dining restaurant will be beat via a trificta of

convenience/speed, price, and value.  The trick is that the buyer group

who is willing to trade up price for quality will also act as an enabler to

create a new restaurant categorization and value proposition. 

Winning Through Strategic Day Part OfferingsWithin these

demographically-favorable locations and near these up-scale restaurants,

Chipotle must continue to target the lunch times and early evening/pre-

dinner times. For lunch times, they should stick to their guns of high food

quality/minimum service, and focus on value to retain repeat customers.

This is particularly important for their restaurants located near corporate

corridors and education centers. For evenings, pre-dinner should offer an

indirect “flank” to direct head-to-head competition with the fine dining

establishments.  During this day part, Chipotle can increase offerings – not

necessarily service – by expanding the menu items for higher-end food

and maybe even cocktails (they already offer beer).  Can you think of

some other types of offering which you think Chipotle could do?  How else

do you think Chipotle can expand it Blue Ocean?

I am willing to talk with blog participants live via phone for free

consultations.  I am also available to companies, businesses and

Marketing Analysis Chipotle Mexican Restaurant and Applebee's Restaurant

Marketing ***** Chipotle Mexican Grill and Applebee's Neighborhood Grill & Bar

Introduction:

The following paper compares the marketing strategies employed by two successful restaurants, Chipotle Mexican Grill ***** Applebee's ***** Grill ***** Bar. This analysis will include an overview of each restaurant's business, their current sales trends, and ***** specific target market. In addition, company brands ***** be discussed, as well ***** their manner of distribution, promotion methods, and pricing. With these factors determined, each company's specific advantages and strengths will then be given. From there, a comparison of the two companies ***** strategies will be examined, including an overview of each company website, ***** strengths and weaknesses of ***** sites, and which features I personally preferred.

***** ***** Grill:

Line of Business:

Chiptole Mexican Grill was founded, in 1993, on a very simple ide*****, according to Founder and CEO Steve Ells. "Offer a simple menu of great food prepared fresh ***** day, using many of the same cooking techniques as gourmet restaurants. Then serve the food quickly, in a cool atmosphere."1 ***** and his team took this simple concept and built a quick-serve restaurant, where "customers can build a 1-1/4 pound burrito or t*****cos from a lineup that includes chicken, steak, barbacoa or free-range p*****k, as well as beans, rice, guacamole, and various other veggies qtd. in "Learn: Story." No date. Chipotle Mexi***** *****. 10 May 2004. http://www.chipotle.com/.

***** and salsas. It also serves extras such as chips and salsa, beer, and margaritas."2

Sales:

Today, there are approximately 300 Chipotles, in 20 states.3 In addition, they've taken this simple menu and received many accolades for their ***** burritos and tacos. These awards include: Best Burrito, 2003 Readers' Choice Sacramento Magazine, Top Bargain Meal, 2003 ***** Choice Denver's Mile-High Magazine, Best Fast Food, Best of 2003 Austin Chronicle, and Best Dinner Under $10, ***** Reader's Choice The Pitch's

Best of Kansas City.4

These accolades have helped bring about Chiptole's phenomenal growth with $230 million in sales in 2002, up 53.3% ***** 2001.5

Target Market:

Chipotle targets customers in urban *****as who want quick food, but not fast food. These customers aren't look*****g ***** the cheapest meal *****y can purchase, but an inexpensive one, that has a lot ***** value for the price. A younger, hipper clientele is targeted ***** the cool, modern decor of each restaurant, often located in trendy shopping centers. Fresh ***** and fresh atmosphere all help draw their targeted consumer.

*****, Jeff. "Chipotle Mexi***** Grill, Inc." Hoovers. ***** Online database. University of Phoenix, Phoenix, AZ. 10 May *****. http://www.hoovers.com.

3"Chipotle."

4"Learn: Critics." No *****. Chipotle Mexican Restaurant. 10 May 2004. http://www.chipotle.com/.

5"Chipotle."

Brands:

***** ***** level of 'hip' carries through to their brand name - Chipotle. A chipotle is a distinctively flavored smoked jalapeno pepper. Just as a real world chipotle h***** a unique t*****ste, so does its namesake *****. From guacamole made fresh several times daily, ***** their special cilantro-lime rice, the Chipotle brand name means delicious.

http://www.musthavemenusblog.com/2010/10/07/chipotle-good-marketing-independents/

hipotle's New Advertising Gives Us Indigestion, Part One

The big, fat, silver torpedo that is the Chipotle burrito is as

iconic (in this city, anyway) as an Absolut bottle or a Converse

shoe. So what better way to start off a brand new campaign than

to ditch the thing you’re most famous for in favor of a bland, new

Taco Bell-styled menu and some insipid value statements that

are saturating the market in this shitty economy. Oh, and how

about a new logo, too? Something that could sit nicely on the

shelf at Target with the other Archer Farms produce?

Butler, Shine, Stern & Partners have, in one campaign,

unraveled the hard work that so many agencies (including TDA

Advertising & Design in Boulder) have built up over the last

decade. No doubt a knee-jerk reaction to these tough economic

times, the new work has abandoned the pithy wit and “it’s a big

fucking burrito, eat it or sod off” attitude of the Chipotle of old,

and replaced it with the lackluster positioning of “hey, come eat

at Chipotle, because you’re poor and we understand that.” Pass

me a bucket.

What was so great about the Chipotle advertising of the past

what that is had personality and balls. Chipotle wasn’t just a

place to eat, it was an attitude. Some of the ads I had loved in

the past (all featuring the silver burrito) include:

OPEN WIDE. NO, WIDER.

BURRITOS SO BIG, YOU WANNA RIDE ‘EM.

OURS GO TO ELEVEN.

OBJECTS IN MIRROR ARE LARGER THAN THEY APPEAR

(written backwards).

These lines were the heart and soul of the Chipotle brand. They

had the cool factor without trying too hard. They were honest,

and they were memorable. They were a point of differentiation, a

flag stuck firmly in the ground saying “this is who we are, take

us or leave us.” And then along came marketing pussies and

strategists who decided that a unique selling proposition was not

all that valuable. Instead, Chipotle should jump on the

bandwagon of VALUE and dump everything else in the trash.

Oh, and throw away that big, fat, silver burrito, too. People know

what it is, they don’t need to be reminded of it.

Now, I ask you, did you ever hear anyone say “man, I’d love to

eat out tonight but Chipotle is so fucking expensive” in the last

few years. That’s what I thought. Chipotle is fast food, it just

happens to be great fast food. That’s why people lined up around

the block when a new store opened. They wanted the big burrito.

If they didn’t, they ordered something else, but the taste and

flavor of the burrito was embedded in all of the other dishes (of

which there weren’t many). Now, we have this LOW ROLLER

MENU, which is a pale attempt to copy the dollar menus and

value menus of the other chains. Why copy McDonald’s, Burger

King and Taco Bell? They suck. Do your own thing.

I, for one, don’t consider myself a low roller. I’m not a high roller

either. I never thought $6 for a 1lb burrito was extravagant or

costly. And now, a few bucks less for a small salad and a taco,

well, that’s not tempting me at all.

This shitty work is a prime example of what happens when

brands get scared and decide to follow the herd. Instead of

zigging when everyone else is zagging, Chipotle has abandoned

their steadfast position and have left it wide open for someone

else with balls. It happened to Airwalk (read The Tipping Point).

It almost happened to Sony. I never thought I’d see the day

when it would happen to a brand like Chipotle. What a crying

fucking shame.

Why Chipotle is a Good Marketing Example for Independentsby AMANDA on OCTOBER 7, 2010

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I’m an advertising junkie - always looking at ads for their

creativity and whether they will work or not. As a former

editor for a PMQ Pizza Magazine, my goal was simple – find

new ideas for selling more pizza and share them with the

readers. That was often hard to do in a market that

depended on “word-of-mouth” advertising.

Now, I know there’s value in word-of-mouth, but in a

saturated market it’s hard to differentiate yourself unless

you do some creative things to let people know about you.

Well, I’m here today to bring you an example of how you can

actually use word-of-mouth to your advantage – Chipotle.

Yes, the burrito chain.

According to Ad Age Magazine, Chipotle has killed off the

advertising agency relationships (other than a media buying

partner) because the agencies didn’t get the way they

approach advertising. Plus, the c0-CEO hates advertising.

And, the $10 million a year or so they’ve spent on marketing

isn’t very effective for a 1,000-unit restaurant chain. See the

financial analysis Jim Edwards over at BNET put together on

how Chipotle may be able to pull off killing major advertising

in exchange for word-of-mouth promos.

The next thing we need to look at is how successful Chipotle

is in sales – up 20 percent for the last quarter. Edwards also

pointed out that the chain wasn’t getting the most bang for

their buck in marketing and stated that it was a wise move

to pull that budget back because “they’re (marketing dollars)

a drag on earnings and they’re not contributing efficiently to

the company’s overall growth.”

Ok, so why will word-of-mouth marketing work for Chipotle

and what can the independent restaurant learn from them?

Chipotle hasn’t changed a menu item in 17 years.They

focus on the same core items and don’t do crazy price

promotions all the time. Hence, one of the main reasons they

ditched the agency.

Independent Lesson No. One: If you focus on making

something really well and create a niche market – such as

organic burritos – you’re going to see success. Where do I

get an awesome burrito? Chipotle. Word-of-mouth works

wonders for this.

Chipotle has raving fans.Seriously, they have 938,869 (at

press time) fans on Facebook. They engage with them.

People are begging them to build a restaurant in their town

on their Facebook wall. They also make themselves part of

the local community by locating near colleges, buying from

local farms and supporting community fundraisers.

Independent Lesson No. Two: How do you think Chipotle

got their reputation? Again, by acting like an independent

restaurant – engaging with their customers, supporting the

community, locating in neighborhoods looking for the fresh

food they offer. All of these are simple strategies to build

word-of-mouth marketing.

Chipotle uses word-of-mouth promotions to drive

sales. Their Halloween special the Boo-Rito has been around

forever – dress up like a burrito and get a free one. This year,

they are changing it up to build their brand awareness

through word-of-mouth. By offering a $2 burrito (of which

proceeds go to Jamie Oliver’s Food Revolution effort), and

asking customers to dress up like processed food, they are

hoping to spread the company message of eating “food with

integrity” to customers. According to Ad Age, they were not

getting this result through mainstream advertising.

Independent Lesson No. Three: Chipotle’s new spin on an old promotion may be risky, but it’s not about completely driving sales – it’s about building the brand through word-of-mouth. This campaign gives them the opportunity to shape the consumers’ perception of their brand by tying the message to something concrete.

Chipotle: A Word of Mouth

Success StoryToday, June 1st is National Chipotle Day: an unofficial Facebook event

hosted by a Chipotle fan (located here) where fans of the restaurant will

eat Chipotle in celebration of what many (including yours truly) have

described as “heavenly goodness.”  The virtual event has 134,000

attendees who have pledged to consume a burrito or two on this day.

Chipotle’s rise to prominence has been a fascinating topic because the

company has grown mainly through word of mouth.  You will see the

occasional billboard and even less frequently hear a radio advertisement,

but you will not see commercials on TV or a robust marketing campaign.  A

grassroots effort to bring a Chipotle location to Athens, OH (Home of Ohio

University, my alma mater) was spearheaded by the Facebook group “OU

for Chipotle,” which had 2500 members at its peak when its eventual

opening was first announced.  The eventual result?  Thousands of hungry

Ohio Bobcats helped set a new record of burritos made in one day (7,085)

and the Athens Chipotle remains wildly popular to this day.  The story of

the Athens Chipotle is not unique; there have been many stories of

Chipotle locations being added purely through fans campaigning for it. 

Chipotle’s amazing growth has occurred purely through word of mouth,

with very little campaigning or marketing dollars.

So, if this is a social media marketing blog, why am I touting the fact that

Chipotle didn’t need a campaign to grow?

1) It’s proof that the conversation is out there, whether your organization

decides to take advantage of it or not.  Why not take advantage of the

conversation by steering it towards what your organization wants to

accomplish?  The fact that “National Chipotle Day” is unofficial is both a

testament to the size and passion of the fan base, but also a sign that

Chipotle could harness their social media marketing power that much

better if they put more effort into it.

2) It’s proof that a great product, above all else, drives sales and returning

business. Social Media can help create positive buzz and goodwill, but that

positive buzz is only sustainable if the product itself is a good product. My

post on the Cleveland Indians from April is an example of this: the Indians

are innovative with their marketing campaigns and provide excellent fan-

friendly attractions and ticket packages, but in the end, the on-field product

is sub-par, which is why ticket sales are more underwhelming in 2010 than

expected.

3) Humanizing your brand, something that Chipotle does well in their

restaurants and limited marketing campaigns. They emphasize

environmental consciousness and using locally-farmed meats, cheeses

and vegetables whenever possible. Social Media helps humanize any

brand when used correctly, or in other words: when effectively

communicating with social media users and not as an RSS feed.

5) Did I mention “good product?”  To emphasize again: the quality of the

product has sparked a passionate fan base that is always on the tip of

everyone’s tongue when suggesting a place to eat.

Chipotle is a great case study in word of mouth marketing offline and how

it transitioned into online purely through a grassroots, fan-driven effort. 

Now, imagine how much bigger Chipotle fandom would be if they actually

ran a robust social media campaign?

Happy National Chipotle Day everyone! Hope you enjoyed your burrito or plan on enjoying one later today, I know I did.

Differentiation

Rather than follow the markdown pricing and constant menu rotation of promotion-driven restaurants, Chipotle makes a conscious decision to focus on sustaining its distinct food quality and customer experience. Their plan is to deliver maximum value for the customer's dollar.

Chipotle has elevated a simple menu of burritos, tacos, and salads into meals that legions of loyal customers find zesty and more sophisticated in flavor

If loving a Burrito is wrong, who would want to be right

• Its what inside that counts. We use a variety of ingredients that we purchase from carefully selected suppliers. We concentrate on where we obtain each ingredient. Some of the ingredients we use include naturally raised chicken, as well as organically grown produce, and we continue to investigate using even more naturally raised, organically grown ingredients, in light of pricing considerations.

• Fast-casual Category of Restaurants: Offer the quickness of fast food but by using many of the same cooking techniques as gourmet restaurants.The fast-casual market pulls together the finer qualities of multiple restaurant sectors. It takes the fast from fast-food, the quality and ambience of casual dining, and adds a focus on health and freshness, all at an average ticket price below $10.

•

• A few things, thousands of ways. We only serve a few things: burritos, burrito bowls (a burrito without the tortilla), tacos and salads. We plan to keep a simple menu, but we'll always consider sensible additions.

Architecturally, all Chipotle restaurants are built using most of the same materials (plywood, corrugated metal, stainless steel, exposed ductwork), although each store is unique.