Chipotle Pres FINAL 03.17
-
Upload
ayush-singh -
Category
Documents
-
view
82 -
download
1
Transcript of Chipotle Pres FINAL 03.17
THE COMPANY
Est. 1993Originator of “fast-casual” dining
No franchises“Food with Integrity” ie. Non-GMO, antibiotic-free, pasture-raised meat, and local produce.
THE ISSUE:
GOT SICK
THE BIGGER PICTURE:
WHY?
Chipotle’s entire BRAND STRATEGY is broken and tired.
It needs updates and innovation to re-engage and re-build trust with its target market.
BRAND STRATEGY
VISION
TARGET AUDIENCEBRAND PROMISEREASONS TO BELIEVEBRAND PERSONALITY
& KEY INSIGHTS
LIMITED MENU
E. Coli &
Norovirus
VALUE PROPOSITION
Fast-Casual Dining• Distinctive interior
design• Music• Fine dining features
Business Model Strong identity of the
brand First Mover Advantage Unique Supply chain Food is fresh quality Employees Salary No franchises
Supply chain High overhead costs Limited menu Broken brand promise
More Choices on the menu Build on their social media
presence Transparency Expansion Online Delivery
No Franchises Supply chain Criticism Competition – Market
capture
S W
O T
WHAT’S BEEN DONE?External professional restaurant cleaners $50M marketing budgetTransparency & honesty in mediaStaff food safety training day (all
restaurants closed)Free burrito couponsSocial media campaignTransparency in supply chainWebsite updates
WHAT’S MISSING?
We need to:
Increase sales growthContinue rebuilding trustRe-engage MillennialsMaintain competitive advantage in Fast-Casual industry
MARKET RESEARCH
When was the last time you ate at Chipotle?
Did Chipotle’s recent food safety issues change your desire to eat there or feeling about the brand?
Answered: 146 Skipped: 14 Answered: 157 Skipped: 3
Hey Millennials,How much do you care about where fast food restaurants source their ingredients?
70% want to be informed about cooking & food handling processes
“Untrustworthy”
“Disappointed”“Unhealthy”
“Love” “Yummmmmy!!!!!!”
“Delicious!”
“Friends”“Fresh”“Guacamole”
94% really care about where the ingredients came from
6% say ingredients don’t affect their choice
MILLENNIALS LIKE COMMUNITY
LOYALTY PROGRAM
Technology
(app/website/e-statements
)
Rewards identificat
ion
Process
Ongoing customer
justification
Liability of rewards currency
MILLENNIALS NEED TO BE CONNECTED
RESTAURANT UPDATES
Wi-fiCordless phone chargersiPads in line-up to watch the Trace Your Food video
MILLENNIALS ARE HEALTH-CONSCIOUS
But they’re also really into novelty desserts.
PALETAS MEXICANAS
HandcraftedPartnerships available to test the product
Dessert optionGood marginKids & Milliennials attentionHealthy & trendy
MILLENIALS CARE
FOLLOW YOUR FOOD VIDEO
Distribution:• YouTube• In-Store
MILLENNIALS LOVE GUACAMOLE
And the only thing they love more is talking about how it always costs extra.
GUACAMOLE ISN’T EXTRA HAPPY HOUR
Tues. 4-7pm, Guac isn’t extra. Beer & margaritas are $3.50 each
#ItsNotExtraDISTRIBUTION:
Social Media: #ItsNotExtra #GuacMoney EX: @ChipotleTweets: #ItsNotExtra Happy
Hour starts Wednesday! What will u do w ur extra #GuacMoney? TV/YouTube Ads
Quick videos of different people doing crazy things with the money they’ve saved from not paying extra for guacamole #GuacMoney
BUDGET BREAKDOWN
$50M in 2Q2016Advertise-
ments, 34%
Facilities update; 9%
Loyalty Program;
35%
Guac Free; 20%
Paletas; 2%
LOYALTY PROGRAM Costs: $17M
Benefits: Increase in revenue by
11% (industry average) Important source of data
RESTAURANT UPDATES Costs: $4.5M (sunk costs)
Benefits: Customer engagement &
retention Customer awareness of
“Food with Integrity”
PALETAS MEXICANAS Costs:$ 1 M Partnership$ 1.6 M Developing a new product Benefits:
Payback in 2 monthsEasy implementation
FOLLOW YOUR FOOD - VIDEO Costs: YouTube video production: $1M
Benefits: 40% growth in positive
brand perception
#ItsNotExtra
Benefits: Increased number of customers
Increased profits from beer & margarita sales
Cost: $9.75M
APPENDIX – LOYALTY PROGRAM BUDGET FORMULA
BUDGET TO START LOYALTY PROGRAMCOMPONENTS VALUES
Total Sales (Gross Sales) ($) $4,453,000,000.00 Capture Rate (%) 30%Percentage Reward (%) 1.5%Redemption Efficiency (%) 90%Margin on Reward (%) 30%Soft Benefits ($) $2,000,000.00 Admin & Software ($) $3,000,000.00 Loyalty Program (%) 0.40%Total Cost $17,624,255.00
APPENDIX – ASSUMPTIONS RESTAURANT UPDATES
APPENDIX – ASSUMPTIONS PALETA MEXICANA
APPENDIX – ASSUMPTIONS IT’S NOT EXTRA