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Copy of Chipotle Business Model Canvas

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by

Tuan Hoang

on 28 February 2014

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Transcript of Copy of Chipotle Business Model Canvas

Long Tail:
Innovative New Business Model
Background
Fun Facts:

Partners:
Channels
Cost Structure & Revenue Streams
Revenue Streams
Multi Sided Platform:
Unbundling:
Freemium:
Delivering Chipotle To-Go packages in grocery stores Nationwide
Having a deli counter Chipotle in grocery
Working with Chilli's- Using Logistics methods by supplying quality foods through the use of local farmers
Free Taco giveaways at various sports events throughout the world
Unbundling
Taking distribution of locally grow foods from farmers to Chilli's
Multi-Sided
Platform

Having a deli counter Chipotle in grocery stores creating a one Stop shopping experience for customers
Freemium
Offering Free Tacos at various sports games based on reaching the goal for that game
Long Tail
Offering To-Go packaged Chipotle kits to grocery stores nationwide
Impact
Key Partners
Cost Structure
Increase Chilli's pricing with certain foods
Decrease distribution costs
Strategic partnership with Chilli's
Increase in local farmers
Increase in distribution Co.
Key Resources
Key Activities
Highering additional logistics distribution to meet demands
Produce & maintain larger orders of product
Increase in physical capacity of production facilities or local farms
Ex: For every interception at the SuperBowl Chiptole will give away one free taco that following week on Tuesday from 11am-5pm must redeem code through Twitter
Key Partners
Customer Relations
Impact
Value Propositions
Customer Segments
Channels
Revenue Streams



Rev Streams
Impact
Consumer reports ranked chipotle as the best Mexican fast-food chain in 2011

750,000 customers per day

1,262 restaurants in the U.S, Canada & Europe

1st nationally TV commercial in 2012 during the Grammy Awards, before just relied on billboards, radio ads and word of mouth.

Each restaurant is architecturally unique designed
Local Farmers. All of Chipotles products are sourced within 350 miles of each store.
McDonald’s Myth
Coke and Budlight - Drink Suppliers
Mark Crumpacker Seqence, LLC - Marketing
Loomstate- Supplies Chipotle with 100% organic clothing
Impact

Additional revenue because it is a new outlet for their products
Key Partners
Would now team up with a grocery store franchise
Value Proposition
Offer customers the same Chipotle they know and love in a new venue
Channels
Can now be advertised through the grocery store
Revenue Streams
Social Media
Facebook, website, Twitter, Youtube
Advertisement
Universities, radio, billboards, store cups, bags, & signs/displays
Integrated Channels
Facebook promotes twitter and Youtube and other networks through its channel
Channels are all integrated with customer’s routines by being in popular/ convenient places which many people are exposed to everyday.
Radio, promotional events & advertisement promote facebook, which is 24/7
Cost Structure
Chipotle’s current customers would be willing to pay for a $15 combo meal:
Cutomer
Segments

Segments
Green consumers, health-aware consumers, local industries, and others
Important Note:
Burrito, tacos, quesadillas, burrito bowls, quasoritos, Chips, guacamole, kid’s meals, and salad.
Considerations:
vs. the individual items they currently pay for separately:
Payments Include:
Credit, debit, cash, coupons, or online with a credit or debit card.
Scanable barcode on their phone for ease and convenience.
Burrito, chips and salsa, and a drink
Chipotle portrays itself as value driven for the consumer but is cost driven becasue:
Most expensive Key Resources
Avacados & Employees
Lean cost structure
Low pricing of goods
Extensive outsourcing to local farms
Most expensive Key Activities
Maintaining natually raised pigs & chickens
Channel Phases
Awareness
Evaluation
Purchase
Delivery
After Sales
Goal of expanding consumer pool beyond green consumers
Friendly community atmosphere with streamlined service
Value Propositions
Value
Simple menu including vegetarian
Cutomer Relationships
Relations
Close relationship between Chipotle and customers
Value-added sustainable efforts outweigh added costs
Naturally raised food supports environmental consciousness
High quality standards continuously maintained
Activities:
Key Activities
Food With Integrity

Family Owned Farms

Naturally Raised Meat

Relationship with Customers

Face-to-Face interactions

Large Party Orders

Phone App where you can order your burrito electronically
Key Resources
Resources
Well trained employees
Unique building designs
Promotional events/discounts
Alcoholic beverages
Quality assurance through local farmers
Discounted rates
Fresh healthly food to-go
Alcohol beverages
Questions
Key Partners
Value Propositions
Channels
Cost Structure
Safeway,Raley's,Lenardi's,HEB
Build it yourself & Convience
Getting to a new customer
Kits & Price range
Reaching more customers
Monitor portion control
stores
Full transcript