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Omar Aqeel

on 14 February 2013

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Transcript of Chipotle

360 Integration Founder/Co-CEO Mark Crumpacker, CMO Implemented Restauranteur Program and instilling culture of high performers in Chipotle's non-franchised model Approx. 30,948 employees
(2,570 salaried, 28,370 hourly): non union 2012 revenue is reported at $2.73 billion,
20.3% from FY11 Simple menu with the freshest available ingredients
All food is made fresh in an open concept kitchen throughout the day 2012*: $43M/TBC
2011: $32M/$5.8M
2010: $26M/$7.5M
2009: $21M/$7.9M Marketing vs. Advertising $ *Projected International Expansion
Are local/natural ingredients available in foreign markets?
Is concept relatable and welcomed in the global market?
Building brand in a new market that has little/moderate awareness Denver, CO
1993 Steve Ells opens first Chipotle McDonald's joins
as an investor 1998 1999 - 2002 2007 - 2008 2006 Chipotle gets
it's IPO 2011 Food with Integrity 2012
Expansion + Evolution Growth Opportunities "A Model" Restaurants:
Open in secondary locations to allow for lower development and occupancy costs Development Model International Growth Domestic Growth Becoming a Lifestyle Brand Concept Expansion Continue to Develop Food with Integrity France
United Kingdom
Canada Looking (South) East... Looking to expand Chipotle's simple model with other cuisines
Sustainable, quality food will continue to be an integral part of the messaging and brand promise
Shop House Southeast Asian Kitchen is currently being tested in DC and expected to expand to other locations in 2013 Aired first TV spot: "Back to the Start" about a commercial farmer going back to a more sustainable way of living Challenges Volatile Ingredient Supply
Price fluctuation
Unpredictable weather/natural disasters
Shortages Saturation vs. Same Store Sales
As locations continue to open domestically, same store sales are projected to remain flat Out Of Home Raise brand awareness Simply designed creative relies on minimal but poignant copy accompanied by the image of a signature, foil wrapped burrito. Outdoor advertising accounts for 96% of Chipotle's media spend. In Restaurant/Product Packaging Emphasize brand philosophy while delivering
a fast, wholesome meal in a trendy setting Streamlined design allows for quick service, maximum customer/employee interaction, and packaging emulates "Food with Integrity" messaging and emulates brand personality Choosing the Right Partnerships
Sponsoring a TED talk on sustainable farming and ingredients Intimacy and one-on-one dialogue with consumers are key in developing brand advocacy
Managed by a 3-person social team
The main message priority is generating brand loyalty and promoting Food With Integrity
Responds to 83% of FB posts, while 90% of Twitter activity are responses to customers

2,005,330 Facebook likes
159,087 Twitter followers
380,787 #Chipotle Instagram tags
106,109 foursquare likes
Ranked #1 in social media conversations about healthfulness in the Fast Casual category (2011) Social Leadership The 1:1 Engagement Model New vegan/vegetarian ingredients
Catering roll outs
“Our marketing has always been based on the belief that the best and most recognizable brands aren’t built through advertising or promotional campaigns alone, but rather through all of the ways people experience the brand”
- From Chipotle's annual report Commitment to finding the very best ingredients, raised with respect for the animals, the environment, and the farmers Objective ORGANIC FAMILY-FARMED LOCAL SUSTAINABLE Communication/Messaging Food that's Fast, not Fast Food Objective Communication/Messaging Steve Ells learns about the benefits of farm raised pork and begins large-scale integration of natural/locally raised menu items Innovation Sports Sponsored the Red Bull Stomping Ground BMX Competition and the 2012 Sprint US Grand Prix SXSW, Vail Film Festival, Bike share sponsor at MidPoint Music Festival Chipotle Cultivate Festival, Farmer's Market Tour, Veggie U Food & Wine Celebration, Chipotle Research Garden Arts Food Received 7.2 million views online Shortly after, McDonald's divests itself from the brand 1400 Locations in US Paris 4 Locations in London 5 Locations in Canada 2010 Collaborated with Karen O from the Yeah, Yeah, Yeah's to develop a music video to raise awareness for the Chipotle Cultivate foundation & Farm Aid Steve Ells judges "America's Next Great Restaurant" and spreads his food philosophy to the masses Digital & Mobile Paid: Small amount of paid media compared to other brands - mobile, banner ads, videos

Owned: Mobile App, Chipotle.com, social media outlets Possible Scenarios Flat +15% -15% Lessons Learned Food with Integrity Continue Development of Chipotle as a Lifestyle Brand Increase openings and awareness internationally while expanding domestically as a lifestyle brand Decrease projected number of openings and work towards increasing same store sales Chipotle increases the amounts of branded events and community initiatives, including the first
Cultivate Festival in Chicago Collaboration and Mass Media Awareness Communications Overview 2009 Moving in a New Direction Chipotle walks away from a traditional AOR and brings advertising in house under the leadership of former creative director, Mark Crumpacker Montgomery Moran, Co-CEO In-Restaurant Turning Point Increasing participation and branded support of music collaborations, festivals, and partnerships
New organic clothing line
Student ambassador program
Producing an upcoming dark comedy series "Farmed and Dangerous" Personalize interactions with consumers. Don't just push communication- have a dialogue with consumers! Be engaged! Capitalize on Social Media Stand behind what you stand for! What's special about your brand at it's core? How can you get consumers to advocate for you? Leverage Core Philosophy As A Way To Engage With Target Go Local for Less Unique local market initiatives build loyalty, create excitement and generate earned media attention for minimal spend Lunch Call ahead service and window, a mobile app with favorites capability, and a streamlined restaurant design for a quick in and out experience drive visitation during peak lunch hours Food with Integrity
FY12: $1,747,360
FY11: $4,354,670 Local Market:
FY12: $1,336,790
FY11: $3,925,380 National: Media Spend -15% Expand Cultivate Festival Nationally
Look to build more partnerships/collaborations
Original content stream (ChipotleTV, Chipotle Records)
Invest in Chipotle Ambassador Program (look to model after employee empowerment program)
Motivate consumers to circle around local initiatives/community outreach
Sponsor farmer's markets
Chipotle food trucks Product extensions
Develop primary locations abroad
Focus on awareness and education as main communication objectives abroad
Possibly look to more traditional media
Use available resources to set up sustainable food supply operations Increase communication around catering components (possible rev. increase of 10%)
Attack SSS with social initiatives
Develop SS loyalty program through mobile app/Foursquare
Look to incentives that don't hinder bottom line
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