Chipotle Mexican Grill, Inc. Marketing Assignmenr Paper (Essay Sample)

Chipotle Mexican Grill, Inc.
Name:
Institutional Affiliation:
Abstract
Chipotle is a chain of restaurants that are located in different countries across the globe. The strategies employed by the parent company have presented the firm with a solid agenda to venture into various market and stay ahead of its competitors in the hospitality industry. This essay presents an in-depth analysis of the organization by looking at some of the possible benefits that it might have gained by operating globally, the technology it uses to support its global position, and the IT strategy it employs to gain market share and realize retention of customers. Apparently, the company has benefited from its global presence, a feat that can be evidenced by how it has managed to retain its returning clients and still attract others in many countries around the world. Besides, Chipotle has embraced technology by developing an app that enables its customers place orders and book for services using their smart phones.
Chipotle Mexican Grill, Inc.
Introduction
Chipotle Mexican Grill, Inc. has emerged to become one of the global companies that have cultivated enviable brand names in the hospitality industry. Primarily serving Mexican style foods, the company operates a chain of restaurants in more than 1,000 localities found in the United States, the United Kingdom, Canada, Germany, and France among other countries. Notably, it focuses on unique food culture by serving some of the best tasting foods prepared with ingredients from sustainable sources using classic cooking procedures. This strategy enables it to serve its customers with healthy and non-additive food thereby leading to increased sales and enhanced brand image (Dalavagas, 2016).
History
The origin of the company can be traced to 1993 when its founder realized that Mexican tacos concept was very prevalent in San Francisco. The firm has grown rapidly in the last few years, and in 2006, it was listed on the NYSE with a total of 26,500 employees across the globe, and annual revenues amounting to $ 1.8 billion. One of the earliest investors and shareholders was McDonald’s, which, citing best interests for both parties, eventually divested in and took all its shares from the company. It is noteworthy that, according to Forbes Magazine, Chipotle Mexican Grill, Inc. opens up between 100-120 new restaurants per annum on an average basis (Trefis Team, 2010). Table 1 in Appendix 1 shows the company’s main operating costs from 2013 to 2015.
Evidently, the company has carved out a distinctive positioning with its focus on sustainability and green marketing, a strategy that has helped it to retain its customers and attract more (Czaplewski, Olson, & Mcnulty, 2014). In fact, its simple menu, stream-lined process of ordering for its services and pre-cooked ready-to-order food services allow it to handle the millions of new and returning customers in its restaurants, which translates into the industry’s leading operating margins. Many analysts attribute the firm’s tremendous growth to the popularity of its menu. Graph 1 in the Appendices section shows Chipotle’s profitability analysis from Financial Year 2005 to Financial Year 2014.
However, store openings over the past decade have been limited by the conservative strategy of not yielding to franchising and only opening new branches when it has the managerial capability to ensure success. The company has also earned its reputation by doing things differently when compared with other quick service restaurants, with many customers conceding that it serves “fresh food with integrity” (Anthony, 2016). Eventually, Chipotle Mexican Grill, Inc. has overtaken many of its reputable competitors in terms of success by perpetually taking market share from the traditional fast food establishments. In fact, many of organization’s customers like its products primarily because they enjoy natural and homemade food, unlike other companies that use artificial ingredients and additives. Notably, “Chipotle’s restaurants serve a menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads” (Chipotle Mexican Grill SWOT Analysis, 2014).
Through the years, the company has invested resources in building its brand image, and its strategies have been attracting new customers. It has adopted a unique marketing plan that underlines its slogan, “Food with Integrity,” and enviable inventiveness that has provided extra value for the consumers. More often, Chipotle markets its brand through advertising, promotional campaigns, and other innovative ways for people to experience the brand. In this regard, the firm advertises not only through print, outdoor, transit, and radio ads, but it also utilizes the Internet to establish its online presence. In fact, as part of its promotions, Chipotle is developing owned media, for instance, music programs, a strategy that includes its food festivals, music, ideas, as well as participating in fun-filled events. There is also enough evidence that “the company has taken advantage of an enormous cultural opportunity created when the once-marginal movements that had challenged America’s dominant industrial food culture became a force to be reckoned with on social media” (Holt, 2016). In other words, it has increased the use of digital, mobile, and social media in its overall marketing mix thereupon giving its customers easy and convenient access to its services. Word of mouth has also been a key marketing strategy, with clients publicizing it even more, but this leads back to the quality of its products and services. This strategy has seen Chipotle Mexican Grill, Inc. build awareness with low advertising expenditure amid the increasing competition in the global market.
The primary objective of the company’s marketing design is to aware consumers of the organization and its importance beyond serving delicious food. In fact, it has also incorporated some aspects of environmental conservation, sustainability, and awareness. Due to the fact that its products are relatively affordable when compared to its competitors’ ones, it has become even easier to sell them to consumers of different demographics, especially in terms of income levels. One can conclusively say that the marketing campaigns undertaken by the company have increased the customers’ confidence thereby increasing the demand for its products and services.
Many analysts also reckon that “Chipotle is developing a recognizable marketing campaign around the idea that our food production should be healthier and more ethical” (Sacks, 2012). As such, the company has initiated outstanding marketing strategies that have given it to competitive advantage over other its rivals. However, others suggest that it needs to focus on taking advantage of its cordial relationship with farmers to establish a solid marketing message to cushion it against the competition, future uncertainties, and the customers’ ever-changing tastes and preferences.
It is apparent that Chipotle Mexican Grill, Inc. has recorded massive success through its global operation. It has not only won it many customers but also helped it retain the returning ones. The profits earned by the company are ploughed back into expanding its tentacles to other locations. In addition, its global operation has enabled it prepare diverse foods of different cultures. In the long run, this has resulted in cultural diversity whereby the same type of food can be prepared in various cultural ways.
Technology Used to Support Global Position
Chipotle has embraced technology in an attempt to reach and serve millions of its clients in different locations across the globe. The company has designed a website from where clients can place orders and review its products and services. Besides, it has taken its advertisement campaigns on social media platforms whereby millions of potential customers are easily reached. The accessibility of the restaurant’s menu on the website also enables potential clients to familiarize themselves with the various types of foods that are offered in its restaurants before placing their orders. Of course, all the foods are listed alongside their prices. In addition, the company offers customers an option of paying for food online before it is delivered to them. The firm has also adopted a popular app, which is a free tool that directs customers to the nearest franchise or allows to order and pay from their iPhones, iPads or iPod Touch.
Chipotle also uses online videos that portray the company’s positive image and quality products. For instance, “Back to the Start” animated short film, “Scarecrow” promotional video, and a 20-minute action/comedy short film called “Farmed and Dang...