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Chipotle South Africa
Transcript of Chipotle South Africa
Chipotle’s average United States sales per unit: $1,800,000
achievable objective for the company in new market Objective/Timing Industry Analysis/Competition Foreign Direct Investment
Current business model in UK
Core values of the company
Encouraged by South African government Mode of Entry Segment: Growing middle class
Target: Cosmopolitan Professionals
busy with work, active social lives
value pragmatic products
urban locations Segmentation, Targeting and Positioning Strategy
Understand target market
Communicate in an effective, meaningful way
Less than 1% of yearly revenue spent on advertising
Reputable, relatable brand Promotion "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 Product Pricing Strategy Durban Place Financial Analysis 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 Implementation and Control Agriculturally Self-Sufficient
Western Cape (Cape Town)
fruits, vegetables and livestock
KwaZulu Natal (Durban)
fruits and vegetables Distribution 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 Conclusion Why Chipotle? Why South Africa? Direct
Mexican Fresh Indirect
KFC/ McDonalds Chipotle is unlike competitors and will provide a product not currently available. Positioning: "Modern, trendy" vibe, high quality, environmentally conscious and socially responsible Methods:
-Word-of-Mouth marketing "buzz marketing"
-Menus, signs, bags, cups
-Physical store layout
-"Grand Opening" promotion give aways
-Facebook, Twitter, Instagram, Pinterest, etc.
-FourSquare "check-in" promotion (first month) "Peri-Peri" Flexible cost-based pricing approach
Communication of quality Sandton City Shopping Centre Cape Town: Cavendish Square Shopping Centre
V&A Waterfront Johannesburg: