ChipotlepowerpointV1

8/7/2019 ChipotlepowerpointV1

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Alexandra Corey, Ashley OBrien,Nicole Lawrence,

Patricia Urgoiti Roldan


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Outline

About the Company

Burrito Bowl

SWOT Analysis

Campaign Objectives

Campaign Strategy

Creative Plan

Sample Executions

Promotions

Public Relations

Media Plan

Budget Allocation

Evaluation Plan


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Chipotles Storyy Chain of fast casual restaurants

y Located in US, UK, and Canada

y Founded in 1993 by Steve Ells

yFirst opened in Denver ,Colorado

y Chipotle- derived by the Mexican Spanish name for smoked

dried jalapeno chili pepper


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Chipotles Story

y Known for large Burritos

y Assembly line production

y Use of natural ingredients

y Over 1000 locationsy Over 38 states

y Over 26,500 employees


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Food with Integrityy Highlights its efforts in using organic ingredients, and serves

more naturally raised meat than any other restaurant.

y Organic, local, family owned farms

y Naturally raised animals

y Integrity is kind of a funny word for food.


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Burrito Bowl

Served in a bowl, choice of cilantro-lime rice, pinto or vegetarian

black beans, meat (braised carnitas or barbacoa, adobo-marinated

and grilled chicken or steak) or guacamole, salsa and cheese or sour

cream.


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SWOT Analysis


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Strengths

y Innovation

y Strong management team

y Opening new stores w/ smaller footprint and lower upfront

costy High profile locations

y Reputation management

y Community involvement

y Open kitchen concept


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Strengths

y Ordering online

y Upscale environment

y Phone applications

y Quality of food

y High price point vs. competitors

y Special dietary needs

y Top ratedy Lack of franchise option


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Weakness

y Limited Locations

y Limited Menu

y Word of mouth

y Limited advertising


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Opportunities

y Emerging markets/ expansion abroad

y Attitude change- health conscious

y 40 % saturated

y Asset leveragey Offer new services and food

y QSRs growing faster

y Long term trend of specialty food chains

y forecasted to increase revenue in the next 5 years


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Threats

y Competition

y Economic slowdown

y Low cost competitors

y Regulationy Substitutes


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Marketing Objectives

y To increase sales of the Chipotle Salad 100% by the end of

the year.

yTo increase share of market by 5% by the end of the year.


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Advertising Objective

y To increase Chipotles share of voice by 25% within the fast

food category by the end of the year

y

To increase top-of-mind awareness in 50% of the targetmarket when asked for qualitative/healthy fast food chains by

the end of the year


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Creative Objective

y To establish Chipotles CEO as a spokesperson to increase

connection between the CEO and the company by 50% by

the end of the year


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Media Objective

y To reach 80% of the target market through media by the end

of the year


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Sales Promotion Objective

y To increase participation by 100% in Chipotles $2

Halloween Promotion on October 31st


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Public Relations Objective

y To increase Chipotles positive feedback via Twitter by 100%

by the end of the year


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Campaign Strategy


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Creative Plan

y Chipotle: Feeling / Low importance

y TM: 20-40 years old, mid-high class, eat fast but healthy

y Position Chipotle as quality fast-food, customizable & healthy

y Tone: Sweet to the point. Credible & catchy


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Sample Executions

Creative Blog

http://chipotleburritobowl.blogspot.com/p/creative-executions.html


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Promotions

y Buy a $25 gift card and receive a free burrito bowl, limited

time offering

y

Online printable coupons if you take online survey andreceive a free Burrito bowl or Burrito of your choice

y iPhone apps for Chipotle to place orders in advance and pay

y Chipotle Annual Halloween Promotion


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Public Relations

y Sponsoring events held at the local farms Chipotle gets

ingredients from

y Placing photos and videos on the Webpage, Facebook, and

Twitter about those sponsorshipsy Making newsletters on Chipotle.com about upcoming events

and previous events they have sponsored

y Holding events at Chipotle locations about better eating

yCelebrity endorsement events


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Media Plan


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Budget Allocation

y Gross Sales 2010: $1,835,922,000

y Total Ad Budget (4% of gross sales): $74 million

y Budget Breakdowny

Spot TV: 50%, $37 milliony Spot Radio: 10%, $7.4 million

y Outdoor: 5%, $3.7 million

y Web: 25%, $18.5 million

y Mobile: 10%, $7.4 million


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Spot TVy 40% of media budget: $37 milliony Scheduling Method: Flighting

y Time span: 9 months, April-December

y Geographic Scope: 4 DMAS in 2 states with mostChipotlesy California: 142 Chipotles

y Los Angelesy San Francisco

y Ohio: 111 Chipotlesy Columbusy Cleveland

y 1,000 GRPs a week


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Spot Radio

y 10% of media budget: $7.4 million

y Scheduling Method: Flighting

y Time span: 9 months, April-December

yGeographic Scope: 6 DMAs within 4 states with themost Chipotle locations (excluding CA due to cost)

y Columbus and Cleveland, OH

y Dallas and Houston, TX

y Denver, CO

y Chicago, IL

y 600 points a week


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Outdoory 5% of media budget: $3.7 milliony Scheduling Method: Continuous

y Time span: 12 months

y Geographic Scope: 8 DMAs within 5 states with themost Chipotle locationsy LA and San Francisco, CAy Columbus and Cleveland, OHy Dallas and Houston, TXy Denver, COy Chicago, IL

y 40 boards in each market, 320 total


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Web


y Scheduling Method: Continuous

y Time span: 12 months

yGeographic Scope: Nationwide


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Web: Pay-Per-Click Ads

y Pay-per-click ads: $.01/click, $9.25 million = 9.25 trillion

clicks per year

y About 770 million clicks per month

y Search, social networking websites, food, news, and other

popular websites


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Web: Banner Ads

y Banner ads: $9.25 milliony About $3,000/month for 100,000 impressions per website

y For 3,000,000 impressions a month= $90,000/website

y $1,080,000/year for 36 million impressions per website

y Advertise on about 9 websites

y Types: Search, social networking websites, food, newsand other popular websites


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Mobile: Text Messaging


y Scheduling method: Continuous

y Time span: 12 months with more emphasis on months with

special promotionsy Geographic scope: Nationwide

y Cost: $0.50 per text


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Mobile: Text Messaging

y 14.8 promotional texts per year

y Jan-April, June-Sept, and November: 1 million texts per

month

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May, October, December: about 1.9 million texts per month


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Rationale

y Spot TV and Spot Radio

y high cost

y focused on states with highest number of Chipotles

y Focused on months with special promotions

y Outdoor:

y high cost per impression

y focused on states with most Chipotle locations

y

continuous scheduling for consistency/awareness


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Rationale

y Weby Easy to access all customer across the nation whether they live

in a state with a Chipotle or not and target them

y Low cost per impression

y Mobiley Directly targets Chipotle customers

y Brings them to some actiony Visit website

y Come to store for promotion

y Text for coupon

y Text to vote


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Evaluation Plan

y Pre-Evaluation

y Concurrent Testing

y Post Testing


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Pre-Evaluation

y Positioning + Image + Brand identity

y Message understood

y

Concept testingy Questionnaires & opinion scales

y Copy testing

y

Shows testing


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Concurrent Testing

y Image + Effectiveness + Awareness

y Tracking studies

y

Impact on salesy Sales statistical study


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Post Testing

y Impact on sales

y Sales statistical study

y

Commercial reactiony Sales & Product satisfaction surveys

y Awareness + Brand recognition

y

Memory test & TOM

ChipotlepowerpointV1

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