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
Independents
by AMANDA on OC TOB ER 7, 2010
1

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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 Story
Today, 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.