Objective/Timing
- Open five restaurants with average sales per unit of $1,500,000 in the span of five years.
- Chipotle’s average United States sales per unit: $1,800,000
- achievable objective for the company in new market
Industry Analysis/Competition
Indirect
- Nando's
- Kauai
- KFC/ McDonalds
Chipotle is unlike competitors and will provide a product not currently available.
Mode of Entry
Foreign Direct Investment
- Current business model in UK
- Maintain control
- Core values of the company
- Encouraged by South African government
Conclusion
- Lucrative, growing target market of Cosmopolitan Professionals trending toward quality, sustainable products.
- Few direct competitors and positive financial outlook
- FDI is best mode of entry and flexible cost-based pricing will allow us to be competitive and communicate the quality of the product
- Product will be adapted to local South African cuisine preference
- Johannesburg, Durban and Cape Town are ideal cities within South Africa to begin introducing the brand of Chipotle based on South Africa's growing middle class and extensive tourism industry
Segmentation, Targeting and Positioning
- Segment: Growing middle class
- Target: Cosmopolitan Professionals
- young, up-and-coming
- busy with work, active social lives
- value pragmatic products
- urban locations
- Positioning: "Modern, trendy" vibe, high quality, environmentally conscious and socially responsible
Promotion
Strategy
- Understand target market
- Communicate in an effective, meaningful way
- Less than 1% of yearly revenue spent on advertising
- Reputable, relatable brand
Methods:
-Word-of-Mouth marketing "buzz marketing"
-Menus, signs, bags, cups
-Physical store layout
-Billboards
-Radio
-SAMPLING
-"Grand Opening" promotion give aways
-Social Media
-Facebook, Twitter, Instagram, Pinterest, etc.
-FourSquare "check-in" promotion (first month)
Product
- "Food with Integrity"
- Adaptation in South Africa
- Including local cuisine such as Hake fish and Peri-Peri
- Maintain American concept of Chipotle
- High quality, local, and some organic foods
- Fresh food preparation experience
- Incorporating South African cooking styles
- Menus
Chipotle Mexican Grill, Inc. in South Africa
Trishna Patel, Summer Borowski, Chase Witkin, Jennie VanWagner and Kristin Van Horn
Pricing Strategy
- Flexible cost-based pricing approach
- Competition
- Communication of quality
Distribution
Implementation and Control
Place
Sandton City Shopping Centre
Training of Employees
- Extensive training program in the U.S.
- American and South African managers develop South African locations
- American managers remain in South Africa and transition responsibility over 5 years
Cavendish Square Shopping Centre
V&A Waterfront
Financial Analysis
- Agriculturally Self-Sufficient
- Western Cape (Cape Town)
- fruits, vegetables and livestock
- KwaZulu Natal (Durban)
- fruits and vegetables