Published on September 16, 2014
Principles of Business: Stage 2 Marketing Seminar: Cultivating a better world: Chipotle Topic Number:2
Overview Over the last few years Chipotle has undergone a significant transformation in its approach to marketing. From its product centric marketing strategy where the key features in its communication strategy comprised of highlighting their burritos to a vision led approach. Today, Chipotle has not only highlighted key issues relating to animal farming but have taken key steps within their organisation to adopt more eco friendly practices. In this seminar, we will look at how Chipotle moved to this vision lead approach and how they have lived and breathed their vision. We will initially look to understand the rationale of their change of approach and impact it has had. Thereafter, we will look at the steps they took to realise their vision. Finally, we will then go on to evaluate two of their adverts and analyse how they communicated their new approach.
3 Learning outcomes of this seminar • Critically evaluate and articulate Chipotle’s vision and mission. • Understand and be able to describe how and why Chipotle changed its marketing approach. • Utilise the marketing mix to describe the key steps Chipotle took to implement their marketing strategy. • Be able to evaluate an advert to be able to determine and describe an overall marketing strategy.
Agenda for this seminar What are the key issues Chipotle is standing up against? Provide a brief overview of Chipotle, the company, strategy and vision Critically evaluate the marketing communications approach Review the two adverts and articulate the strategic thinking behind them
Structure for the session You will have 15 minutes to discuss each question. We will have a debrief at the end of each 15 minutes to hear your thoughts on each area. Feel free to ask questions but please do not have separate conversations ‘we are all in this together’!
How it all began? View Video: https://www.youtube.com/watch?v=wmH73Diqf5Q#t=58
What are the key issues that Chipotle is standing up against?
Injustice to animals Source: Chipotle.com
Injustice to animals Source: Chipotle.com
Environmental Impact Source: Chipotle.com
Farming Practises Source: Chipotle.com
Provide a brief overview of Chipotle, the company, strategy and vision
Steve’s Vision View Video: https://www.youtube.com/watch?v=5uEZdH_V6Gk
The Chipotle Vision Our vision is to change the way people think about and eat fast food. We do this by avoiding a formulaic approach when creating our restaurant experience, looking to fine-dining restaurants for inspiration. Our approach is also guided by our belief in an idea we call “Food With Integrity.” Our objective is to find the highest quality ingredients we can— ingredients that are grown or raised with respect for the environment, animals and people who grow or raise the food.
Restaurant Management & Operations Culture of Top Performers We are committed to creating a performance based culture that leads to the best restaurant experience possible for our employees and our customers. Importance of Methods and Culture Our crews use classic cooking methods: they marinate and grill meats, hand-cut produce and herbs, make fresh salsa and guacamole, and cook rice in small batches throughout the day. The Front Line is Key Our restaurant and kitchen designs intentionally place crew members up front with customers to reinforce our focus on service, and our open kitchen design allows customers to see that we prepare our food fresh, each and every day. The Basics Each restaurant typically has a general manager, an apprentice manager, one to three hourly service managers, one or two hourly kitchen managers and an average of 23 full and part-time crew members.
Supply Chain & Marketing Close relationships with supplier Our 23 independently owned and operated regional distribution centers purchase from various suppliers we carefully select based on quality and their understanding of our mission, and we seek to develop mutually beneficial long-term relationships. Distribution arrangements Ingredients and other supplies are delivered to our restaurants by our independently owned and operated regional distribution centers. Customer Experience Our excellent restaurant teams have helped us create considerable word-of- mouth publicity, with our customers learning about us and telling others, allowing us to build awareness and loyalty. Advertising We have been developing more “owned media,” including new video and music programs, and a more visible event strategy that includes our “Cultivate” festivals of food, music and ideas, and participation in relevant events in markets around the country
Critically evaluate their marketing communications approach
Overview of Chipotle’s Brand Evolution View Video: https://www.youtube.com/watch?v=63X0yvnPXFc
Rationale of Strategy View video: https://www.youtube.com/watch?v=reDRAHn3XkY
Living their strategy
However, interesting development!
Review the two adverts and articulate the strategic thinking behind them
Back to the Start View video: https://www.youtube.com/watch?v=aMfSGt6rHos
The Scarecrow View Video: https://www.youtube.com/watch?v=lUtnas5ScSE
End of Seminar Note: This recording is for your personal use only and not for further distribution or wider review. © Pearson College 2013