Chipotle Mexican Grill Restaurant In Ohio Marketing Essay

Chipotle Mexican Grill was started by Steve Ells in 1993 in Colorado with the purpose of supplying first-class quality fast-food points that are made from fresh and premium ingredients. Soon, Chipotle Mexican Grill Inc. is a concatenation of eating houses that are located in Canada, United Kingdom and United States. The name of the eating house was derived from chipotle which is the Mexican Spanish name of smoke-cured and dried cayenne chili Piper nigrum ( “ Unique Corporate Culture drives consequences ” , 2008 )

The forte of the concatenation is in the burritos and greaser offered to the clients along with usage of natural and organic ingredients and assembly-line production. The company is listed on the New York Stock Exchange and it went public in 2006 when McDonald ‘s divested all of its non-core concern eating houses ( “ About Us ” , 2012 ) . The mission of Chipotle Mexican Grill Restaurant is defined as Food with Integrity that highlights its focal point on utilizing lone pure and organic ingredients and serves the clients with of course raised meat ; it gives the eating house a competitory border over all other eating houses present in the market ( “ Food with unity ” , 2012 ) . It is among the innovators who developed the construct of fast-casual dining eating houses.

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Presently, it is present in more than 1200 locations in approximately 43 provinces including France, Ontario, England, Washington and Toronto. Harmonizing to Brandau ( 2012 ) , the concatenation earned net income of US $ 215 million in the twelvemonth 2011 and had a work force of approximately 30,940 employees. The concatenation is run by a board that comprises of four managers along with a president ( Steve Ells ) and is headquartered in Denver, Colorado.

SWOT Analysis is of import for every organisation as it helps it in analysing its capablenesss and chances along with menaces that will guarantee that it is able to take the concern in the right way ( Sikdar & A ; Vel, 2010 ) . The elaborate SWOT analysis of Chipotle Mexican Grill Restaurant is as follows:


The company maintains its ownership in all the eating houses.

Strong fiscal place allows it to set about its assorted growing programs

Low cost of advertisement as it relies to a great extent on Word-of-mouth and Internet selling

Customer base is strong as all clients are loyal to the trade name

Affable dealingss with the providers particularly organic ingredients

Competitive border in supplying healthy nutrient points


Labor costs are increasing at an speed uping rate

Gross saless get seasonal during few months

Expansion scheme ensures that it enters into market with highly diversified gustatory sensations to run into the demands of the market


Consumers are going wellness witting so there is turning tendency of healthy and organic nutrient points

Online telling procedure will go the norm with the promotions in engineering

Increasing demand of diversified nutrient constructs

Restaurant design that is sustainable is deriving popularity


Barriers of entry are low so competition can acquire intense in future

Food monetary values are increasing which can ensue in high production cost

Economic downswing can do recession

Consumer gustatory sensations and penchants are altering on frequent footing

Natural catastrophes and climatic conditions can impact the growing and production of organic ingredients

Rival Analysis

In the fast-food industry, there is a long list of rivals as there are many domestic and international endeavors present in this market. However, for Chipotle Mexican Grill Restaurant, the direct competition is from fast-casual Mexican market that comprises of Baja Fresh, Moe ‘ Southwest Grill, Rubio ‘s Fresh Mexican Grill, Qdoba Mexican Grill and Panchero ‘s Mexican Grill ( Ragas & A ; Roberts, 2009 ) . Harmonizing to the client studies, Chipotle Mexican Grill was given 8th, 3rd and first ranking in old ages 2009, 2010 and 2011 severally ; it is considered to be among the fastest turning eating house ironss in United States. It has been stated that all of its eating houses serve sum of about 750,000 clients daily ( “ About Us ” , 2012 ) .

Market-Product Focus

In order to come in into Columbus, Ohio market, most of the fast-food eating houses aim immature people as it is apparent from the demographics of the province that bulk of its population constitutes people within the age bracket of 16-30 old ages. About all the big fast nutrient ironss have their central offices in Ohio ; for case, Wendy ‘s Corporate headquarter is in Dublin, Ohio and White Castle in Columbus, Ohio ( “ Fast Food Restaurants in Columbus, Ohio ” , 2012 ) .

Some other fast-food ironss like Steak Escape, Max & A ; Erma ‘s, Donatos Pizza, Bob Evans Restaurants, Cameron Mitchell Restaurants and Charley ‘s Grilled Subs are located in Columbus, Ohio every bit good. It is considered to be the best trial selling part for measuring the credence of the eating house by the mark market ( Dahlen, Lange & A ; Smith, 2010 ) .

Sing the successful operations of Chipotle Mexican Grill Restaurant, it has been decided that it will aim wholly new market which comprises of older people as this market is frequently neglected by the fast-food eating houses. The profile of the mark market is as follows:

Gender: Male and Female

Age Group: 40 old ages and above

Income Degree: US $ 40,000 per twelvemonth

Life style: Passion for socialising, immature at bosom, adventuresome, love to dine out, wellness witting

Occupation: Either employed in an organisation or freelance, Businessperson and adviser

After reexamining the state of affairs analysis of the company, the selling and merchandise aims are as follows:

To increase market portion in Columbus, Ohio by 10 % by October 2013.

To make consciousness about the importance of healthy and alimentary nutrients so that there is decrease of 5 % in the figure of people enduring from wellness related issues every twelvemonth.

To get down online concern wholly in Columbus, Ohio so that the client base additions by 8 % boulder clay January 2013.

To present new scope of Italian nutrient in September 2013 in Ohio to run into the demand of this nutrient section in the market.

Marketing Program Strategy and Focus

The selling plan scheme and focal point comprises of 4Ps ( Product, Place, Price and Promotion ) along with strategic positioning so that an organisation has lucidity about the mechanisms that will be employed to accomplish the coveted concern aims ( Ernst, Hoyer & A ; Rubsaamen, 2010 ) . Each of the of import elements of marketing plan that will be targeted towards the new mark market in Columbus, Ohio are discussed below to give elaborate information about its selling scheme:

Product – The company will offer the similar scope of merchandises for the old people but the ingredients used will be 100 % preservative free and will be extracted from organic beginnings. Along with the normal nutrient points, some healthy drinks and salads will be introduced in the 2nd half of the twelvemonth i.e. in January 2013 to supply healthy option to the mark market.

Price – The monetary value scope offered to the clients will be competitory and they will be offered repasts within their low-cost scope. The monetary values of the merchandises will be in between $ 3 to $ 8.

Place – The first location will be on 488 S. High Street Columbus, OH 43215 in December 2012 and the 2nd one will be on 3090 Kingsdale Center Columbus, OH 43221 in May 2013. The eating houses will be developed in the same architectural construction so that people can develop an association among assorted all of them and bask the sensational dining experience.

Promotion – In the first twelvemonth of operations, the promotional activities used will consist of free test, vouchers and on-line selling activities. When the first eating house will be opened, the advertizements will be done on societal networking sites and circulars will be dropped at every place in nearby countries so that people are cognizant of the gap of the eating house in their vicinity. On the gap twenty-four hours, clients will be offered free first repast and will be given 50 % on 2nd repasts. Since the old people like to read newspapers, the ads will be placed one time every month in The Columbus Dispatch newspaper ; the ad will be printed on the 2nd page of the newspaper and will busy A? of the page.

The strategic placement of Chipotle Mexican Grill Restaurant in Columbus, Ohio can be described as “ to supply high quality nutrient points that are developed with organic and fresh ingredients in an environmental-friendly manner so that the company fulfills its corporate societal duty efficaciously while guaranting alliance with its ‘Food with unity ‘ motto ” .

Fiscal Projections

The chief premises made in the fiscal program are as follows:

The advertizements will be placed one time every hebdomad in the newspaper and the cost of ad as per specification is $ 1,500.

The direct cost of gross revenues include the ingredients ‘ cost, transit cost and back-end staff cost.

The direction wages comprise of the compensation of all board of managers along with Chairman.

There will be four staff members along with eating house director who will look after the concern operations.

The website direction will be outsourced and it will hold annually cost of $ 1,800 that will even include up step of the website content.

There will be no revenue enhancement charges in the first three old ages of operations in Ohio.


First twelvemonth of operations ( $ )

Gross saless


Direct Cost of Gross saless


Gross Net income




Management wages


Staff wages








Payroll Taxs


Website Management


Business Travel




Selling and other disbursals


Net Net income


Execution Plan

In order to mensurate the effectivity of the selling plan, the company has set certain short-run mileposts to mensurate the public presentation of the eating house in Columbus, Ohio ( Packaged Facts, 2009 ) . Some of the mileposts identified by the company are as follows:

By the terminal of first month i.e. November 2012, sufficient advertisement will be done to make consciousness about the trade name.

In December 2012, the first mercantile establishment will be opened.

In January 2013, online concern will be started.

From February to May 2013, the concern will go on with its new operations and unfastened new mercantile establishment at the terminal of May 2013.

During summer holidaies, the eating house will patronize summer cantonment plan to give a absorbing clip to the childs and heighten their rational accomplishments.

At the terminal of August 2013, teaser runs will be run for debut of Italian nutrient.

In September 2013, the new scope of Italian nutrient will be introduced in the first mercantile establishment and in the first hebdomad of October 2013, the latest nutrient line will get down in the 2nd mercantile establishment.


The selling attempts of the company will be reviewed monthly as the technological promotions take topographic point on an on-going footing and new merchandises are introduced rapidly every bit good. The initial beginning of rating for the company will be the difference in the estimated and existent gross revenues of the merchandise ( Ferrell & A ; Heartline, 2008 ) . On the web site, the clients will be allowed to give their feedback about the merchandise characteristics and the bing clients will be asked to take part in the study of the computing machines. However, some of the rating tools that will be used to mensurate the public presentation are as follows:

Carry out client satisfaction studies and gather information from client reappraisals on assorted web logs and reexamine the client feedback by choosing the users from Beta trial market both current and possible 1s.

The rating of direct gross revenues and studies and electronic mails designed for follow-up intent with merchandises late purchased will give a proper indicant about the client ‘s satisfaction degree and how successful the merchandise is in position of the clients.



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