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Page 1: Marketing Promotions - Chipotle Case: The red foil burrito

5G AdvertisingTeam 8

Chipotle Case

Galen Anderson, Cole Ericson, David Jacobberger, Rudy Kovac, Jonathan Toman

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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 Chipotle’s 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 ObjectivesThis 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 Chipotle’s corporate social responsibility and the red foil campaign.

Build Positive Perceptions of Chipotle: Through our campaign, millennials will get to directly participate in Chipotle’s corporate social responsibility efforts and see the positive impact Chipotle’s 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 bachelor’s 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 forthat 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.

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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 andnew 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.

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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. Chipotle’s budget is spent primarily on

non-traditional marketing methods such as festivals

and video mini-series.

Industry and CompetitionMarketing Analysis

Summary of Chipotle’s Current Marketing Efforts

1 AdWeek. 2015. “AdWeek.” Chipotle Explains Why It Doesn’t Share Sales Data With Its Agencies. 3 23. Accessed 11 29, 2015. http://www.adweek.com/news/advertisingbranding/chipotle-explains-why-it-doesnt-share-

sales-data-its-agencies-163634.

2 Faw, Larissa. 2014. “Media Post.” Arby’s CMO Reveals New Ad Strategy. 1 22. Accessed 11 20, 2015. http://www.mediapost.com/publications/article/217959/arbys-cmoreveals-new-ad-strategy.html?edition=.

3 Hume, Scott. 2014. “CSMonitor.” McDonald’s spent more than $988 million on advertising in 2013 . 3 30. Accessed 11 20, 2015. http://www.csmonitor.com/Business/TheBite/2014/0330/McDonald-s-spent-more-than-988-

million-on-advertising-in-2013.

4 Jones, Adam. 2014. “Market Realist.” Analyzing Panera Bread’s Advertising And Marketing Spend. 12 22. Accessed 11 20, 2015. http://marketrealist.com/2014/12/analyzingpanera-breads-advertising-marketing-spend/.

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Situation Analysis Cont.

Fast Casual Industry Millennials

Analysis of Market and Environment

Quick service restaurants (fast casual), try to differentiatetheir brand and attract new customers by introducing newmenu items.

To cut through the white noise of new menu items, QSRsshould adopt eco-friendly and sustainable business practicesto 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. http://www.hansondodge.com/blog/2013/june/millennials--80-million-strong--ready-to-spend.

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Campaign Objectives

Objective: Strategy:

Build awareness of Chipotle’s 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 theproduct 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. http://www.forbes.com/sites/

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. http://www.forbes.com/sites/

jefffromm/2014/12/19/five-trends-that-will-pave-the-way-for-marketers-in-2015/2/.

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Research Summary

Target MarketDemographics / Geographics 9

Age: 20-34Median Income:

$25,000

1 in 4 have a bachelor’s degree or higher.

Ethically Diverse

9 Company, Nielson. “Millennials - Breaking the Myths.” Nielson. February 24, 2014. Accessed December 5, 2015. http://www.nielsen.com/content/dam/corporate/us/en/

reports-downloads/2014 Reports/nielsen-millennial-report-feb-2014.pdf.

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Target MarketDemographics / 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 pay more for those benefits.12

Buying Behavior:Not influenced by advertising, Millennials find value authenticity is more impor-

tant than content, they expect brands to give back to society.12

10 Strategy, Marketing. “Marketing Psychographics - Talkin’ ‘Bout My Generation | Green Buzz Agency.” Green Buzz Agency RSS. August 10, 2010. Accessed December 5, 2015. http:// greenbuzzagency.com/marketing-demographics-talkin-bout-my-generation/.11 Solomon, Micah. “Customer Service Secrets For Millennial Customers (That Improve Boomer Customer Service, Too).” Forbes. November 22, 2015. Accessed December 5, 2015. http://www.forbes.com/sites/micahsolomon/2015/11/22/customer-service-secrets- for-millennial-customers-that-help-you-serve-boomer-customers-too/.12 Dan, Schwabel. “10 New Findings About The Millennial Consumer.” Forbes. January 20, 2015. Accessed December 5, 2015. http://www .forbes.com/sites/danschawbel/2015/01/20/10-new-findings-about-the-millennial-consumer/2/.

Research Summary Cont.

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Research Summary Cont.

Target MarketKey Consumer Insights

Millennials are:

Looking for an experience 15

Willing to pay more for benefits16

Socially conscious 14,17

Want to be on a team 13

Aware if you’re lying 18, 19

13 DeVaney, Sharon. “Understanding the Millennials Generation.” Journal of Financial Service Professionals, no. 11 (2015): 1-5.14 Jankowski, Paul. “3 Insights To Help Your Millennial Marketing Strategy Succeed.” Forbes. August 13, 2015. Accessed December 5, 2015. http://www.forbes.com/sites/ pauljankowski/2015/08/13/3-insights-to-help-your-millennial-marketing-strategy-succeed/2/.15 Fromm, Jeff. “Five Millennial Trends That Will Pave The Way For Marketers In 2015.” Forbes. December 19, 2014. Accessed December 5, 2015. http://www.forbes.com/sites/ jefffromm/2014/12/19/five-trends-that-will-pave-the-way-for-marketers-in-2015/2/.16 Adamczyk, Alicia. “Millennials Prefer Quality Over Convenience, Reveals New Survey.” Forbes. July 19, 2014. Accessed December 7, 2015. http://www.forbes.com/sites/ aliciaadamczyk/2014/07/09/millennials-prefer-quality-over-convenience-reveals-new-survey/.17 Solomon, Micah. “Customer Service Secrets For Millennial Customers (That Improve Boomer Customer Service, Too).” Forbes. November 22, 2015. Accessed December 5, 2015. http://www.forbes.com/sites/micahsolomon/2015/11/22/customer-service-secrets-for-millennial-customers-that-help-you-serve-boomer-customers-too/.18 2015. “The Deloitte Millennial Survey 2015 “Mind the Gaps”.” www2.deloitte.com. Accessed December 5, 2015. http://www2.deloitte.com/global/en/pages/about-deloitte/ articles/millennialsurvey.html.19 Skey, Samantha. “Five Tips on Marketing to the Millennial Mom.” Advertising Age GoodWorks RSS. July 28, 2011. Accessed December 5, 2015. http://adage.com/article/ goodworks/social-savvy-seeking-a-triple-bottom-line/228844/.

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Creative Strategy

By highlighting current and future efforts, Chipotle stands to gain a larger customer base, and with that, increased loyalty. While the Chipotle brand currently benefits from many satisfied customers, this campaign will help strengthen those bonds by increasing consumers value percep-tions. By properly unifying the USP, brand image, and tag line with constant creative threads, this campaign will strengthen the involvement of millennials with Chipotle and build the awareness of the CSR efforts. Significant research was needed in order to find the factors that help increase the value per-ceptions among millennials. One survey by The Cassandra Report in 2012 shows that when con-sidering products there is a significant increase in the importance of factors like being eco-friendly, recycling, sustainability, and being American made. This data is very important, and must beconsidered, because these perceptions increased an average of 21% over one year’s time.Including data like this helps strengthen understanding, and better targets the millennial market. Another important piece of data made clear during research is that millennials want to have a large impact, without a large contribution (SOURCE). Even though many millennials are on a limited budgets, they still want an active role in bettering the world. By combining forces with their neighbors, millennials can make significant improvements. This campaign will be sure to utilize these two key factors.

This campaign is designed to build awareness of Chipotle’s CSR efforts among millennials.

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The Unique Selling Proposition (USP) is an integral part of any successful campaign. The specific USP for this campaign is to convert Chipotle's food supply to 100% free range. In 2013, only 80-85% of beef sold at Chipotle’s more than 1,500 stores has been naturally raised (Patton, Leslie). This means that roughly 15-20% of their food sup-ply is not. The USP is highly effective because the desire to have a responsibly raised food supply will resonate with a large number of millennials.

Creative Strategy Cont.

The Creative Strategy is composed of several factors.

Unique Selling Proposition (USP)

Key Notes

USP:Convert Chipotle’s food supply to 100% free range.

Brand Image:Benevolent, caring, proactive and responsible.

Campaign Design:Deliver one constant theme throughout the advertisments

In addition to the USP, the brand image must appeal to the target market. The brand image for this campaign will follow several specific threads: benevolent, caring, proactive, and responsible. Keeping these values apparent in each advertisement will build a noticeable thread connecting each complex facet. While combining billboards, print, television, and radio will help reach many types of customers, this approach needs to keep a unified image. This campaign is designed to drive one constant theme throughout the many types of advertisements.

Brand Image

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The two position approaches chosen for this cam-paign are: attributes/benefits and product class. These specific approaches will be bolstered by the primary emotional appeal. As much of the research stated, many millennials have a strong emotional desire to help im-prove quality of life. Showing the attributes and benefits about how each individual purchase of red foil wrapping improves the lives of the food supply, and health improve-ments for consumers is much stronger when viewed through an emotional approach. The secondary approach is product class, which demonstrates that the food pur-chased at Chipotle is of higher quality simply because of the improved food supply chain. By approaching emotion-ally to improve the food supply, the secondary approach is achieved by improving the quality of food sold.

Position Approaches

Creative Strategy Cont.

Key Notes

Position Approaches:-Attributes & Benefits

-Product Class

Appeal:-Primarily Emotional-Secondary Rational

Reasoning:Once attributes and benefits are applied,the product class will naturally improve.

The USP and Brand Image are strengthened when applied with a specifically defined position.

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The tag line that exemplifies this campaign is: “Help Us Foil Their Plan.” This tag line is able to impress a very complex com-plex concept with very few words. To properly analyze the slogan as a whole, each word will be individually dissected. The purpose of starting with “Help” is to grab attention of the reader. And because the target of this campaign is millennials, this has a specific appeal because the research shows that they are compelled to help improve the world they live in. Second, the slogan employs “Us.” This is spe-cifically designed to give a sense of belonging and community. Since many millenials cannot make large contributions, this shows that a difference can be made when working together. Lastly, “Foil Their

Plans” is the quick ex-planation of the effort. Not only does it provide a common enemy, it leaves a lingering curi-osity.

Creative Strategy Cont.

The SloganCombining the specific proposition, brand image, approach and appeal is summarized in the campaigns slogan.

“Help Us FOIL Their Plans”

Key Reasoning: Sense of contribution Community Common Cause Builds Curiosity Ex

ampl

e Use

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Ad Samples

Outdoor Ad Sample

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Ad Samples Cont. Print Ad #1

Headline

Body CopyVisualElements

Action Element

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Ad Samples Cont. Print Ad #2

Headline

Body CopyVisualElements

Action Element

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Ad Samples Cont. Radio AdRadio Script:

*Tin Foil Crinkle Sound Effect*

Narrator: “Do you know what that sound is?”

*Tin Foil Crinkle Sound Effect*

*Pause*

Narrator: “Let me give you a hint: Cows love it.”

*Pause*

Narrator:“Still don’t know? Well, it’s the sound of Chipotle’s red tin foil burrito wrapper. *Pause* For a limited time, when you upgrade to a red foil burrito at Chipotle, you are helping us move towards a 100% free-range food supply.”

Legal:“All proceeds from this campaign go to Chipotle’s Cultivate Foundation, which wants to create a sustainable food future.”

Narrator: “Help us foil their plans”

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Ad Samples Cont. Television Ad #11. The opening scene depicts a customer in line at a Chipotle store ordering a burrito ‘with the red foil’

2. As the employee goes to make the burrito and grabs the red foil the camera zooms in on that piece of foil as the Chipotle surroundings fade away

3. The camera follows the foil as blue sky fades in around it and the foil floats through the breeze

4. Then the foil lands, next to other pieces of red foil and is stepped on by a cow hoof

5. The camera pans out revealing other pieces of red foil flying in to create a path for the cow that leads away from a dark, ominous factory farm

6. The camera continues to pan out showing the green pastures the foil is leading the cow towards

7. A voiceover comes on while the camera is panning out, explaining the red foil campaign.

8. The voice over ends with the tagline ‘Help Us Foil Their Plans’ which appears on screen with a red foil burrito

9. The final 2-3 seconds of commercial features the villain from farmed and dangerous angrily asking “What do you mean they just walked out?!?”

The ad reinforces the creative threads of the red foil and the conversion away from factory farming while building awareness of Chipotle’s sustainability efforts and building a positive perception of the brand.

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Ad Samples Cont. Television Ad #2

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Integrated Marketing Communications Plan Direct Marketing

The most direct method of spreading the word about our new red foil burrito campaign is to start with direct mailings. Research has shown media that “consumers can touch and feel resonated and touched more emotions than those of the digital variety” 20

You first open up the mysterious envelope expecting to see the typical advertising media that most companies put out, but instead you are greeted with an intriguing red foil sheet.

You then take a closer look at this red foil and notice that there are instructions to scratch the red foil, the same way you do on a lottery ticket or small other games. This will engage customers since most people enjoy the posi-bility of winning something.

20 Direct Mail: Alive and Kicking.” March 11, 2012. Accessed December 6, 2015. http://www.forbes.com/sites/marketshare/2012/03/11/direct-mail-alive-and-kicking/.

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Integrated Marketing Communications Plan Direct Marketing

When the customer finishes scratching away the covering foil, they only see the following: ‘Help us Foil Their Plans’ with the Chipotle symbol in the bottom left corner and the website in small print at the bottom. This mailer is designed to cause intrigue about the red foil and at a very minimum to raise awareness about the red foil, but it is also designed to push customers to the website for further information. The website will have the complete details about the red foil burrito campaign to further engage the customer.

Objectives

Intrigue

Raise Awareness

Push to WebsiteWww.chipotle.com

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Integrated Marketing Communications Plan Internet Advertising

Our next step in the process of implementing a fully integrated marketing communications plan is to update the existing Chipotle website landing page to reflect the recent integration of the red foil burrito campaign. This would be most effectively implemented by using our red foil banner and slogan across all pages of the website, so that customers who use the website feel the connection to the mailings that were received. The website would also have a landing page to fully explain how choosing the iconic red foil when they order aids Chipotle in becoming 100% free range with their beef.

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Integrated Marketing Communications Plan Internet Advertising

With the Chipotle website now prepared for the increased traffic flow, we then target many websites that are commonly used by millennials, for increased advertising and exposure of our campaign. The most commonly used websites by millennials that allow ads are: Buzzfeed, Elite daily, and Amazon21 keep viewers attention for the one to three seconds needed. First, you would see just an ordinary burrito slide onto the screen.

Just a moment after the first image, the second image shows the burrito halfway eaten with some red letters beginning to show up behind the burrito.

A moment later, the entire burrito has been eaten and the letters become clear to show our slogan of ‘Help us Foil Their Plans,’ once again. It would also display the Chipotle logo and small URL so that customers are directed to go to the website to find out more about the plans that Chipotle wishes to ‘foil.’

21Fromm, Jeff. “Spotify, BuzzFeed & Elite Daily: List of Popular Millennial Websites.” Linkdin. May 17, 2015. Accessed December 7, 2015. https://www.linkedin.com/pulse/spotify-buzzfeed-elite-daily-list-popular-millennial-

websites-fromm.

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Integrated Marketing Communications Plan Trade Oriented Sales

Chipotle currently works with eight partners by contributing money on a regular basis to companies who share their vision of

sustainable farming 22 type of promotion displays Chipotle’s true commitment to

helping the industry become a family friendly and animal friendly environment through the

Chipotle Cultivate Foundation.Donating to these organizations is a wonderful program, but the average

consumer is not aware of this commitment. Our plan is to increase the awareness of these contributions by adding one or two

new partners to the mix, and making this change more prominent on the website.

By raising awareness of the companies that Chipotle supports and then adding new

partners, this will increase positive feelings toward the brand. This is important since

millennials are more concerned with meaning behind the marketing, and companies who

actually walk the talk.23

22 ”The Chipotle Cultivate Foundation.” Grants & Partners / the Chipotle Cultivate Foundation. 2013. Accessed December 7, 2015. https://www.cultivatefoundation.org/grants-and-partners.

23 Skey, Samantha. “Five Tips on Marketing to the Millennial Mom.” Advertising Age GoodWorks RSS. July 28, 2011. Accessed December 7, 2015. http://adage.com/article/goodworks/social-savvy-

seeking-a-triple-bottom-line/228844/.

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Integrated Marketing Communications Plan Consumer Oriented SalesPromotions

Chipotle has a built-in following of over 2.78 million individuals on Facebook alone. Combine that with an additional 720,000 followers on Twitter and 267,000 on Instagram, Chipotle can reach 3.7 Million consumers with the click of a button.

According to alexa.com, Facebook is the #2 most trafficked website in the world.24

We plan to engage these social media users with our consumer oriented sales promotion by asking them to ‘Show us your skills!’ In a nationwide competition contestants will be asked to create whatever they like, using red foil as the medium.

24 “Top Sites.” Alexa Top 500 Global Sites. Accessed November 14, 2015. http://www.alexa.com/topsites.

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Check out what I made for Chipotle! #foiltheirplansNow bring on my $100!! I’m Hungry!! #chipotle

Integrated Marketing Communications Plan Consumer Oriented SalesPromotions

Millennials use social media for 3.12 hours/day 25

89% of Millennials have a Facebook account 26

On average, 70% of Millennials are at least somewhat likely’ to base a product purchase on their friend’s social media post. 27

Millennials are on social media for a significant portion of the day, and the majority of them are more likely to buy

something seen on a friend’s post. This piece of the campaign provides a monetary consumer promotion for Chipotle while expanding our social

media foot print and awareness of the red foil campaign.

The idea is to incentivize our fans to spread the word about Chipotle’s new red foil campaign for us. The top 100 submissions will each receive a $100 Chipotle Gift Card. For each submission to be considered it must meet the following requirements:

1. Use Red Foil as the artistic medium

2. Tag Chipotle (so we can find each submission)

3. Include ‘Foil their plans’ in the body.

25 McCarthy, Niall. “Millennials Rack Up 18 Hours of Media Use Per Day.” Statista Infographics. March 13, 2013. Accessed November 13, 2015. http://www.statista.com/chart/2002/time-millennials-spend-interacting-with-

media/.

26 Sills, Jonathan. “Survey Says: Not All Millennials Are Hooked On Social Media - Powered by Battery.” Powered by Battery. October 14, 2015. Accessed November 13, 2015. https://www.battery.com/powered/survey-says-

not-all-millennials-are-hooked-on-social-media/.

27 Abrahamson, Kurt. “Millennials Are 2X as Likely to Purchase Products They Share About.” ShareThiscom. September 23, 2014. Accessed November 13, 2015. http://www.sharethis.com/blog/2014/09/23/

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Integrated Marketing Communications Plan Marketing Public Relations

“Today, more than ever before, it has become crucial for organizations to find more credible and durable ways to develop a two-way brand relationship with their customers and prospects, one that utilizes both traditional and new media channels.”28

85 percent of millennials say that keeping up with the news is at least somewhat important to them. But only 40 percent pay for at least one news-specific service, app, or digital subscription.29 That means that millennials want access to news, but often turn to free options such as social media in addition to the more traditional methods of information dissemination.

Press Release (Traditional): Tailored to ensure the press can see a story, this release will highlight the innovative partnerships our plan will explore and offer interview availability for key players in the project. The release will come out the same day as the project, and we will allow media to see the plan in motion at several regional Chipotle outlets.

Social Media (New): This segment is where interacting with customers will be the focus. Our outreach about the red foil burrito wrapper campaign will focus on Facebook, YouTube and Twitter where we will show our commercials and encourage interaction through our alternative marketing strategy.

Employees (Both): Chipotle employees will be critical in convincing the customer to purchase the red burrito foil through personal selling, so they must be behind the idea. This aspect will combine the social media and traditional methods together – the customers are aware of the idea, not let me see it in action with a real person.

Main Strategy: Capture both Traditional and New Media Channels

28 Ioanna Papasolomou and Yioula Melanthiou, “Social Media: Marketing Public Relations’ New Best Friend,” Journal Of Promotion Management 18, no. 3 (2012): 319-328.

29 “How Millennials Get News: Inside the Habits of America’s First Digital Generation,” The Media Insight Project through the Associated Press – NORC Center for Public Affairs Research and the American Press Institute,

March 2015.

30 Ibid.

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Influence Public Attitudes

Marketing Public Relations

Cause Related Corporate Advertising

Measuring Effectiveness

-Increase awareness: All three strategies will assist here, and the bases are covered when it comes to where millennials get their news about a product or topic.-Positive Perception: Highlight positive effect the campaign is having.-Increased Consideration: Use the campaign to ensure Chipotle is at the front of consumer’s minds.

-Build Marketplace Excitement before Media Advertising Breaks: Through our plan, this comes both for traditional media outlets and the average consumer.-Improve ROI: In this case, our ROI is an added creation of brand loyalty as well as raising as much money to go to the Cultivate Foundation as possible.-Provide Information to Opinion Leaders: Media still function as opinion leaders, and making sure we are a story they choose to spend time on is crucial.

Differentiate brand and position Chipotle as an organization that stands out in a crowd.

Google Alerts (measure the percent of positive or negative articles), seek limited employee feedback, and track social media interaction for the campaign.Va

lue A

dded

Obje

ctiv

es

Integrated Marketing Communications Plan Marketing Public Relations

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Integrated Marketing Communications Plan Personal Selling

Personal selling is paramount in the execution of this IMC plan because the plan hinges on the customer’s decision to pay more for a different color foil. A knowledgeable and friendly counter employee will increase the chances a customer will choose the red foil.

Every counter employee, especially the ones at the beginning of the line, must be trained on the benefits and key selling factors in the red foil.

Employees can track the number of red foil upgrades they sell to measure how successful their efforts and methods are.

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Alternative Marketing According to Joshua Hardwick a Viral Video MUST evoke emotion and portray your brand without being overly promotional. 31

Ilya Pozin of Forbes states you must be upbeat and inspirational. 32

Tom More declares you must reel viewers in with a story, and keep it short. 33Ho

w to

Mak

e a V

iral V

ideo

:

So, how does Chipotle do this while still building the red foil campaign?

Challenge high schools to upload a video to YouTube of their science or shop class students building a boat out of red tin foil.

The video must include:

The process of building the boat

A student/teacher/principal trying the boat out

A wrap up with interviews of the students and teachers

The top 10 videos (as determined by views and likes) will win a Chipotle Party for their class or school.

31. Hardwick, Joshua. “4 Rules for a Video to Go Viral.” Convince and Convert Social Media Strategy and Content Marketing Strategy. Accessed November 14, 2015. http://www.convinceandconvert.com/content-

marketing/4-rules-for-a-video-to-go-viral/.

32. Pozin, Ilya. “6 Qualities To Make Your Videos Go Viral.” Forbes. August 7, 2014. Accessed December 7, 2015. http://www.forbes.com/sites/ilyapozin/2014/08/07/6-qualities-to-make-your-videos-go-viral/

33. More, Tom. “Tips and Tricks to Make A Video Go Viral - Socialmouths.” Socialmouths. July 23, 2014. Accessed November 14, 2015. http://socialmouths.com/2014/07/23/tips-to-make-a-video-go-viral/.

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Alternative Marketing Cont.

Once the 10 winning videos have been determined, we will put together a compilation of the best parts of each video. The compilation will be structured as a story focusing on the experience of the students, and will highlight the struggles of the project, as well as the victories to bring emotion into the video. Chipotle’s branding will remain absent from the video until the very end to avoid coming across as ‘overly promotional,’ but the final screen will be the Chipotle logo and ’Help us Foil Their Plans’ spelled out in red foil with a sub-header reading ‘Chipotle is dedicated to building a healthier community, click here to learn more,’ which will go to Chipotle’s red-foil/cultivate website. The video will be kept to no longer than three minutes. We will then share the video over Facebook, Twitter and the other social media platforms available to Chipotle and issue a video press release that focuses on telling the story of the students involved. The intent of this video is to get as many views as possible and generate awareness of Chipotle’s CSR efforts and the red foil campaign as a whole while building a positive perception of Chipotle.

Page 32: Marketing Promotions - Chipotle Case: The red foil burrito

Campaign Budget / Media Plan

67%

18%

Agency Fee15%

% of Budget

Agency Fee

$750,000.00 $750,000.00

$2,625,000.00

$6,000,000.00

$2,625,000.00

Outdoor Print Radio Television Internet

-Build Awareness of Chipotle’s 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

Given these specific objectives we have determined the most efficient use of budget is to focus funds on direct and internet/interactive marketing. Within that spectrum, the amount of time millennials spend watching video provides a basis for the largest budget to be afforded to video-based advertising.

Cam

paig

n Obj

ectiv

es

34 “The Growing Influence of YouTube Stars on US Teens and Millennials.” Youth Research Center. April 2, 2015. Accessed November 21, 2015. http://youthresearchcenter.com/the-growing-influence-of-youtubers-on-us-t

eens-and-millennials/.

Page 33: Marketing Promotions - Chipotle Case: The red foil burrito

Campaign Budget / Media Plan

We will implement a two-pronged approach in the placement of our television ads to target millennials.

1. Target Millennial Viewers over Broadcast Television on their four most watched programs 35,36

Walking Dead - $502K x 3 slots / 6.3 Million aged 18-49

Empire - $521K x 3 slots / 3 Million aged 18-34

Scandal - $207K x 3 slots / 1.76 Million aged 18-34

Big Bang Theory - $266K x 3 slots / 1.73 M aged 18-34

2. Target Millennials over Streaming Video Services

In the 14-25 age group 72% cited streaming video as an important service vs. 58% citing Television 37

$756K targeted at Youtube programming focused on Music and Gaming (important interests according to Claritas)

Average of .15 cents per view according to YouTube

$756K targeted at Hulu streaming services (Hulu doesn’t allow picking programs)

$35 CPM 38

Television/Video:

Cost: $4.49 Million

Coverage: 38.37 Million Millennial Views

Cost: $1.51 Million

Coverage: 26.64 Million Views

35. Consoli, John. “MBPT Spotlight: The 18 Shows You Should Be Advertising In To Reach Millennials.” MBPT Spotlight: The 18 Shows You Should Be Advertising In To Reach Millennials. April 1, 2015. Accessed November

15, 2015.

36. Steinberg, Brian. “TV Ad Prices: Football, ‘Empire,’ ‘Walking Dead,’ ‘Big Bang Theory’ Top The List.” Variety. September 29, 2015. Accessed November 15, 2015.

37 Spangler, Todd. “Streaming Overtakes Live TV Among Consumer Viewing Preferences: Study.” Variety. April 22, 2015. Accessed November 15, 2015. http://variety.com/2015/digital/news/streaming-overtakes-live-tv-

among-consumer-viewing-preferences-study-1201477318/.

38. “What It Costs: Ad Prices From TV’s Biggest Buys to the Smallest Screens.” Advertising Age News. April 6, 2015. Accessed November 15, 2015.

Page 34: Marketing Promotions - Chipotle Case: The red foil burrito

Campaign Budget / Media Plan Radio & InternetRa

dio

Inte

rnet

Radio will follow a similar approach to television. According to Claritas the millennial age group listens to their radio streaming, as well as the traditional route and favors the genres of Alternative Rock, Electronic Dance Music, and Top 20 pop.39

1. Target Millennials over traditional radio broadcast $1.31 Million on large market stations like New York, Los Angeles, Denver, Chicago $7.8 CPM 40

2. Target Millennials over streaming music services like Pandora or Spotify, again by targeting their favored genres $1.31 Million on targeted genres $12 CPM

Total Cost: 2.625 Million

Our internet advertising will be aimed at websites millennials tend to frequent. According to Claritas these include sites like 4Square, Facebook, Orbitz and music and gaming themed sites.

Budget: 2.62 MillionAverage CPM: $2.80 41

Impressions: 935 Million

39. Accessed November 13, 2015. https://www.claritas.com/sitereports/reports/prizm-demographics-reports.jsp.

40. Fou, Augustin. “Cross Channel Media Costs Comparison CPM Basis by Augustine Fou.” Cross Channel Media Costs Comparison CPM Basis by Augustine Fou. February 4, 2014. Accessed November 15, 2015

41. Johnston, Michael. “What Are Average CPM Rates in 2015?” MonetizePros. January 27, 2014. Accessed November 15, 2015. http://monetizepros.com/display-advertising/average-cpm-rates/.

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Campaign Budget / Media Plan Outdoor & PrintOu

tdoo

rPr

int

Given our billboard ads we thought it best to target our outdoor ad budget on billboards at the outskirts of college towns (Boulder, CO, Norman, OK, etc.) and to target the timeframes when college students would be returning to college from breaks (spring break, Thanksgiving, winter).

Budget: $750,000

Cost: $2,400 per billboard for 1 month 42

Impressions: 89.4 Million

According to Claritas the most viewed magazines among millennials include genres like gaming (PC Gamer, Playstation Magazine etc.) music (Vibe, Rolling Stone) and fashion/lifestyle (Seventeen, Cosmo). We will target these magazines with national distribution.

Budget: $750,000

Average Cost: $30,000 43

25 ads published

Average Circulation: 220,000

42. “Lamar Advertising Company.” Billboards, Digital Displays, Transit Advertising Locations & Prices. Accessed November 18, 2015. http://www.lamar.com/InventoryBrowser.

43. Kobliski, Kathy. “Magazine Ads.” Entrepreneur. January 16, 2006. Accessed November 17, 2015. http://www.entrepreneur.com/article/83094.

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Campaign ImplementationAwareness, positive perceptions, and increased consideration are the cornerstone goals of our plan, so they will be looked for as we evaluate the impact our various advertising efforts are having.

Print Ads-(Pretest) - Portfolio Tests designed to test recollection of the ads-(Post Test) - Recognition tests including Starch Ad Readership Report

Video Ads-(Pretest) - On Air Tests to find number of persons able to recall message-(Post Test) - Day After Recall Tests

Personal Selling-Sales Volume, Selling Skills

PR-Interactions (‘likes,’ hashtag usage)-Track positive or negative articles in the press (Google Alerts)

Internet-Track the number of clicks on targeted millennial websites ads-Track increased traffic in visits per day on the Chipotle website-Tracking ROI for additional sales per $1 million spent

Direct Marketing-Customer Lifetime Value (CLTV) – long term relationship with customer critical for development of Chipotle brand.

Trade Oriented Sales Promotions-The number and quality of organizations we partner with through the Cultivate Foundation.

Consumer Oriented sales promotions-The interactions with customers over social media and in-store will be critical in this section

Page 37: Marketing Promotions - Chipotle Case: The red foil burrito

Campaign Evaluation The implementation of the red foil campaign will slowly build over the year. The first pieces to be implemented will be pretesting of the ads, training of employees on personal selling of the foil, and the trade oriented promotions. Shortly after, we will initiate the internet and radio/streaming music ads which will run for the majority of the campaign. Next come the print ads, the first round of Marketing PR, the consumer oriented promotion, and the first call out for the viral video. All of these pieces will lead up to the release of the television ads beginning in mid-late September. After the television ads have aired, we will have the viral video prepared from all of the submissions, and a second round of Marketing PR will begin focused on the video itself. The billboards will be following their own schedule going up around college towns as students return from break. The campaign will wrap up with Post Test and evaluation of the campaign as a whole.