Marketing Promotions - Chipotle Case: The red foil burrito

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  1. 1. 5G Advertising Team 8 Chipotle Case Galen Anderson, Cole Ericson, David Jacobberger, Rudy Kovac, Jonathan Toman
  2. 2. Executive Summary Our proposal is to launch a campaign that will allow millennials to take part in the corporate social responsibility efforts of Chipotle. Our strategy will implement a marketing campaign that will raise funds for Chipotles Cultivate Foundation. We will introduce burritos wrapped in red foil. Every time a customer visits Chipotle, they will be offered the opportunity to contribute an additional small upsell to get the red foil. The proceeds from the upsell will go to the Chipotle Cultivate Foundation and help transition Chipotle to a 100 percent free range supply chain. Campaign Overview and Objectives This campaign will focus on three objectives. Build Awareness of Chipotle: This will be accomplished through our specific nationwide integrated marketing campaign that will run from April 2016 to May 2017. We will target specific media geared toward millennials to increase their awareness of Chipotles corporate social responsibility and the red foil campaign. Build Positive Perceptions of Chipotle: Through our campaign, millennials will get to directly participate in Chipotles corporate social responsibility efforts and see the positive impact Chipotles work is having. Increase Consideration of Chipotle: The positive reinforcement that the image the red foil campaign provides creates a positive image of Chipotle. Target Market The target market for this proposal, millennials, have several identifying characteristics that we can utilize to help ensure the success of this campaign. Millennials are young adults, ages 20-34. They have a median income of $25,000, and one in four have a bachelors degree or higher. While their income minimizes their individual impact, together they can have a large impact, so they look for opportunities to contribute to a larger cause. Millennials have a high need for an immediate response, with real-time information sharing critical to them. They search for fulfillment and happiness in everything they do, including their food, and they are also willing to pay more to ensure these expectations are met. Consumer Insights By 2017, millennials will have more spending power than any other age group, making them the most needed demographic for a business to succeed. Critical among our observations of millennials is that they believe it is their responsibility to make a difference in the world, and they look for that authentic and caring approach in the businesses they frequent. Millennials expect the brands they use to give back to society, with 55 percent listing social responsibility as a core value. Creative Strategies Our three main creative strategies that we will pursue include the Chipotle red foil, a calm voice that will pervade in all our advertising, and a mainly emotional appeal that will be supported with rational reinforcement. Our slogan, Help us Foil Their Plans, will both connect consumers to the campaign and also tie the various integrated marketing communication elements together.
  3. 3. Executive Summary Cont. Integrated Marketing Communication Plan Our campaign plan will visit six different IMC elements to ensure the coverage we need to spread awareness and positive perception of our campaign. Direct Marketing: Our plan in this realm is to pursue a direct mailing strategy that will allow consumers to be exposed to creative media they can tangibly feel. Internet Advertising: We will update the current Chipotle landing page to reflect our campaign and the red foil will encourage millennials to share their responsible decision making through social media. Trade Oriented Sales Promotion: Our campaign will look to partner with additional organizations through the Cultivate Foundation. Consumer Oriented Sales Promotion: Social media will be the key element here, as our plan will encourage consumers to participate in a nationwide contest to see the best creations they can make out of red foil. Marketing Public Relations: We will look to capture both traditional and new media in this area, as we pursue both social media and news outlet engagement. Personal Selling: Chipotle employees will be trained on the key selling points of the red foil campaign and will be critical to encouraging customers to participate. Budget Breakdown The three main goals of this campaign (build awareness, build positive perceptions and increase consideration) are reflected in our budget strategy. Millennials spend much of their time watching video, whether it is on television or the internet. With that in mind, most of our budget will go toward direct marketing and internet interactive IMC elements to ensure the greatest access to the target market as possible. Media Strategy Each integrated marketing communication element will have a specific evaluative method, and a Gantt chart outlines the timeline of when our different media is released during the campaign.
  4. 4. Situation Analysis Relatively small advertising budget Most ads focus on the burrito foil - Food with Integrity Historically use non-traditional advertising Cultivate Festivals Farmed and Dangerous Scarecrow Much larger ad budgets 1-4 Smear Chipotle Campaign One of the biggest differences between Chipotle and its competitors is the marketing budget size. Most competitors spend their budgets on high cost media such as Television. Chipotles budget is spent primarily on non-traditional marketing methods such as festivals and video mini-series. Industry and Competition Marketing Analysis Summary of Chipotles Current Marketing Efforts 1 AdWeek. 2015. AdWeek. Chipotle Explains Why It Doesnt Share Sales Data With Its Agencies. 3 23. Accessed 11 29, 2015. sales-data-its-agencies-163634. 2 Faw, Larissa. 2014. Media Post. Arbys CMO Reveals New Ad Strategy. 1 22. Accessed 11 20, 2015. 3 Hume, Scott. 2014. CSMonitor. McDonalds spent more than $988 million on advertising in 2013 . 3 30. Accessed 11 20, 2015. million-on-advertising-in-2013. 4 Jones, Adam. 2014. Market Realist. Analyzing Panera Breads Advertising And Marketing Spend. 12 22. Accessed 11 20, 2015.
  5. 5. Situation Analysis Cont. Fast Casual Industry Millennials Analysis of Market and Environment Quick service restaurants (fast casual), try to differentiate their brand and attract new customers by introducing new menu items. To cut through the white noise of new menu items, QSRs should adopt eco-friendly and sustainable business practices to attract customers. Sustainable business practices help reduce operating costs on the business while making them eligible for tax breaks. Eco-friendly business practices also attract the target market of millennials. Most needed demographic for businesses to succeed 5 Heavy social media use Increased focus on the origins of their food Impending FDA regulations on food origins 5 Flierl, Tom. 2013. Hanson Dodge. Millennials. 6 28. Accessed 11 29, 2015.
  6. 6. Campaign Objectives Objective: Strategy: Build awareness of Chipotles CSR and Sustainability Efforts Among Millennials Build Positive Perceptions of the Chipotle Brand and Increase Value Perceptions Among Millennials Increase Consideration of the Chipotle Brand Among Millennials The red foil concept will start a conversation both on and offline. Customers can show off their red foil burritos on the street or at work. Online, customers can demonstrate their socially responsible image on social media. 6 55% of Millennials list social responsibility as a core value.7 Our customers get to be a part of the difference Chipotle is making by contributing a little bit every time they get a red foil. They will be rewarded for their decision from the positive image that purchasing a red foil burrito provides. Millennials are concerned with the experience of the product 8 , therefore, the positive reinforcement, combined with the novelty of the red foil, will incentivize customers to keep coming back. 1 2 3 6DeVaney, Sharon. Understanding the Millennials Generation. Journal of Financial Service Professionals, no. 11 (2015): 1-5. 7Jankowski, Paul. 3 Insights To Help Your Millennial Marketing Strategy Succeed. Forbes. August 13, 2015. Accessed December 5, 2015. pauljankowski/2015/08/13/3-insights-to-help-your-millennial-marketing-strategy-succeed/2/. 8Fromm, Jeff. Five Millennial Trends That Will Pave The Way For Marketers In 2015. Forbes. December 19, 2014. Accessed December 5, 2015. jefffromm/2014/12/19/five-trends-that-will-pave-the-way-for-marketers-in-2015/2/.
  7. 7. Research Summary Target Market Demographics / Geographics 9 Age: 20-34 Median Income: $25,000 1 in 4 have a bachelors degree or higher. Ethically Diverse 9 Company, Nielson. Millennials - Breaking the Myths. Nielson. February 24, 2014. Accessed December 5, 2015. reports-downloads/2014 Reports/nielsen-millennial-report-feb-2014.pdf.
  8. 8. Target Market Demographics / Geographics Psychographics: Impatient and with a high need for immediate response, Millennials reflect the shift to real-time information and sharing.10 They believe it is their responsibility to make a difference in this world.11 Benefits Sought (needs/w ants): Millennials want immediate response, quality food, and are determined to find fulfillment and happiness in everything they do. They are also willing to