Course Project:
Marketing Plan for Chipotle Mexican Grill to offer a Delivery Service
DeVry University, Keller Graduate School Of Management MKTG522 Marketing Management For
1.0 Executive Summary
Chipotle Mexican Grill is known for the gourmet meals and has many locations throughout the United States and their customer base continues to grow. Chipotle has been in existence for as long as they have because they have listened to their customers and their needs as can be evidenced by the additions to their menu over the years. One such need of the customers of Chipotle Mexican Grill is a delivery service.
Food delivery came about because of a need. In the Second World War, many homes were
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The masses enjoy their food so much which explains the level at which the fast food chain has been growing. An advantage of offering this service would be that customers will be able to visit the company’s website and be able to make their purchases online. Their website is extremely user friendly thereby making it easy to use. Allowing customers to be able to order online, provides convenience for them as they can do it from the comfort of their home instead of having to make the trip out. Chipotle Mexican Grill has a loyal customer base and they have acquired that through the quality meals they provide to their customers.
One of the biggest weaknesses that will arise from the proposed service is having to contend with transportation and insurance costs. The driver would need to be paid in addition to the fact that fuel will be needed on a weekly basis and is very expensive. Taking on this venture will provide several opportunities for the fast food chain.
SWOT ANALYSIS | Strengths | 1. Ability to sell products online 2. Convenient for Customers 3. Customers will support it | Weaknesses | 1. High Transportation Costs 2. Insurance Costs 3. Limited Startup costs | Opportunities | 1. Increase profit margin 2. Company Growth 3. Create more awareness of Company | Threats | 1. Competition 2. Increase in ingredients may cause an increase in price |
2.3 Competition
Since
As the topic suggests, the effectiveness of home deliveries is quite clear from the fact that nowadays, the trend of convenience is given a due importance in not only in Canada but everywhere around the world. Therefore, a food delivery business and a takeout is simply defined as a business where the food ordered is to be consumed off the premises. This entails that the food can be taken to the go by consumers or delivered to the home of consumers or his place of choice. In the previous five years, the main emphasis is laid on convenience. Almost 58 percent of the restaurant meals are purchased take out, drive thru or home deliveries (Wales, 2009). These are the restaurant segments that serve convenience like home meal replacements at certain grocery stores and other quick service restaurants emulated by the drive thrus are particularly better positioned in order to address the needs of consumers who are motivated and encouraged by convenience. Furthermore, full service restaurants operators have also recognized a great chance to enhance sales by expanding delivery options and reflecting menu innovation on the delivery menus.
Chipotle’s strategy has been working well for them so far but there is room for improvement. Chipotle being company owned instead of being franchised gives them the advantage of keeping the profits with the company and maintain control. Chipotle can work on their marketing strategy to help broaden name recognition, increase sales, and expand locations.
Throughout this research I found that Chipotle has done more damage to the company than just letting down its customers. They have to now face the fact that those outside suppliers are now shying away from business with them because it will make them look bad to future partnerships. Chipotle is now in a state of bringing their company back in a good light by offering different promotions and coupons for loyal customers and customers they need to gain back. They have to go back into the company and figure out how to control the quality of all of their supplies. In my research I made note of a lot of the activity that occurred when the outbreak of E. coli in their meat began and how it spread. I also touch bases on how the company plans to
Core competencies are the unique ability that a company acquired when the company initially setting up. It is the inborn competitive advantage that cannot be easily imitated by competitors. When Chipolite was born, its owner Steve Ells targeted it as the fresh and healthy fast food which means its products need to be fresh and fast delivery. In current dining market, there are three types of restaurants: full service, fast food and the restaurant in between. Chipotle belongs to the last one. Full service restaurant has the highest expense and longest time service, so it is only targeting for mid and high class customer with their leisure time consumptions. At same time, fast food restaurants, their aim is to
Innovation; Chipotle is a very innovative food provider. Chipotle has an intense focus on making the restaurants have “food with integrity”. The restaurant also placed vegan, veggitarian and gluten-free items on the menu to satisfy customer’s different dietary needs. Each new restaurant location is scouted before construction, making sure the business will be there and also having a steady stream of clean produce for “food with integrity”.
Chipotle would have to hire workers with driver’s license, and train workers about every detail of food that their restaurant offers to make sure the customer’s order is correct. This would also create new markets because none of the Mexican grill restaurants offer this service. Once chipotle starts this service, I can guarantee you that the competitors would try to do the same. Chipotle doesn’t have pre-ordering service yet because they have not looked into it. Their main focus right now is to continue building their empire and putting restaurants all over the world where people love to eat that kind of food. I thought of this service because I’m tired of waiting in those long lines and sometimes I was too busy or lazy to get up and go there myself. At times I even sent my sister there for me just because I love eating it so much and I don’t want to wait in a long
First, Chipotle has a low amount of choices. Most fast food restaurants offer various products on their menu. This can increase the threat of substitutes due to variation of products. Chipotle can potential miss out of on potential markets. Another weakness, is Chipotles food cost. Other commutators like McDonalds, Taco Bell, and Burger King have relatively lower food cost than Chipotle. This is due to the high quality standard of Chipotle. This means that the food cost will rise and most of Chipotle’s target market can choice to eat else where. Another weakness is its target market, which can change their position on fast food. The target market can choose to eat healthier at home rather than go out to eat. Finally, most stores are based in United States with means that they are missing out on potential markets outside the United
As of December 31, 2015, Chipotle has managed around 2010 restaurants around the United States along with 11 restaurants in Canada, seven in England, four in France, and one in Germany. Furthermore, Chipotle has largely grown over the past five years and hopes to open between 220 and 235 additional restaurants in 2016. The average restaurant size is about 2530 square feet and seats about 58 people, and has been able to served more than 300 customers an hour in some locations. Chipotle is devoted to bringing high quality food to customers by hand picking the ingredients they serve. Price menus range from $2.40 to $7.50. Food with integrity has been Chipotle 's culinary point of view, serving their food with fresh organic and locally raised ingredients. For example, their goal is to serve meats that were raised without the use of hormones and as well as to promote animal welfare. Providing a new way of how people think of fast food. As an example, even though they are using high quality
First, here is some history about the company. Chipotle was founded by Steve Ells in July 1993, Chipotle had 16 restaurants (all in Colorado) when McDonald 's Corporation became a major investor in 1998. By the time McDonald 's fully divested itself from Chipotle in 2006, [15] the chain had grown to over 500 locations. The model they have on their page about chipotle and how it started was stated; “When Chipotle opened its first restaurant in 1993, the idea was simple: show that food served fast didn 't have to be a “fast-food” experience. “Using high-quality raw ingredients, classic cooking techniques, and distinctive interior design, we brought features from the realm of fine dining to the world of quick-service restaurants.” (Chipotle, 2004). There motto from the beginning got them a lot of press, they were making a lot of money just selling burritos, salad, and burrtitos bowls.
It was originally operating exclusively in Colorado, but over time the business expanded into other states. In 1998 McDonalds became a significant investor in the company. Backed by McDonald’s sizable capital, Chipotle exploded across the country. Under the motto Food with Integrity the company set out to sell healthy, ethically obtained food, but with all the convenience and speed of a typical fast food restaurant. In 2006 Chipotle became a publicly traded company. High demand during the initial public offering drove the stock price very high. It continued expanding from 16 restaurants in Colorado, to having over 500 locations all over the US. The company also has an international presence. In 2008 it opened a store in Toronto. By 2010 It had opened a location in London. As of 2014 there were 17 international Chipotle stores. By the time McDonald 's fully divested itself from Chipotle in 2006, the chain had grown to over 500 locations. In fall of 2015, Chipotle expanded its mobile strategy through delivery partnerships with tech startups like Tapingo, a delivery service that targets college campuses.
Chipotle Mexican Grill Inc. is considered part of the fast-casual and high quality food restaurant industry. The fast casual industry is today the fastest growing segment of the restaurant industry. The definition of a fast casual restaurant is an establishment that promises rapid service, higher quality foods, and a more enjoyable atmosphere than that usually offered at a typical fast food restaurant. (Analysis of Strategic move by Chipotle- book). Therefore this industry is poisoned right in between the fast food restaurant and casual dining restaurant industry. It is considered part of the fast food due to the following qualities; high-speed service, self-service, simple menu, no drive-thru provided. The casual dining due to the higher quality
During the first year, chipotle will stress their usage of their promotional mix team. The team consists of advertising, public relations, persona selling ,promotions and direct marketing tools to persuasively communicate customer value and build stronger relationships. advertisement will work with the promotional team to create a short term excitements and says during the first quarter of the year to increase Chipotle’s awareness. Public relation will aggressively build the chipotle brand and use attractive messages to spread and maintain brand awareness. With massive use of the social media, Chipotle will push to use non-traditions always of advertisement, such as giving away free meals in exchange for writing, video, or other artistic forms
Panera has access to some relevant resources, because the café is a large corporation, they have a lot of money and investment staffing. With this resource, Panera Bread can hire more driven, determine, and happy employees. In the technology department, they can instill a delivery app, used on any smartphone and customers can simply download the app. immediately after downloading the app, the customer can have a choice to have their food deliver. In other words, Customer A orders what he/she wants on their smartphone, then goes to pick it up, as oppose to waiting in line to order the food. Like anything else, it is experimentation, there are going to be glitches in the beginning. Nothing is going to be perfect. There are some advantages and disadvantages to this methodology. The advantages are the smartphone delivery app is intuitive, facile, and less intricate. The disadvantage of this is that the customers who are not technologically savvy are going to struggle and be confounded. That is why there is a choice of coming into the store to pick the product up or delivering.
Chipotle’s core competency is its ability to serve its customers quickly. Chipotle creates orders quickly through its infamous service line, this allows the company to serve 200-300 customers per hour. Another strength of Chipotle is that it uses organically grown ingredients in all of its restaurants. It uses meat and dairy products obtained from suppliers who practice humane farming and are conscious of animal ethics. Moreover, Chipotle has started offering vegetarian alternatives which makes it popular among vegetarians. Chipotle’s network of reliable and approved suppliers with the help of regional distribution centers is also a source of strength as it increases quality as well as operational efficiency. While Chipotle has a low marketing budget, it stresses on consistent brand image and message in all of its restaurants which results in a unified brand image. Finally, a strength for Chipotle is
Customer service is an important aspect to creating and maintaining a successful operation and should be at the forefront for all business managers and their operations. The principal thought is that in order for your business to grow and be successful, the business must recognize what the customers want and find a way to deliver it, possibly even literally. In this study, Pizza USA will evaluate the various aspects of implementing a delivery system to an established restaurant. To gain new and repeat customers, the services offered must go the extra mile to ensure that all of these needs, and maybe even a few extras too, are not only met but exceed the expectations. The best way to determine what a customer wants, needs, and desires is to gain responses from said customers and apply those with the management techniques and procedures to make for the optimal delivery experience.