Chipotle Mexican Grill
1 a) Do you think CMG ought to consider an advertising campaign? Why or why not? If so, what should be the focus of the ads? Celebrity endorsements, the humane treatment of animals in its beef, etc…? CMG should consider an advertising campaign in order to increase awareness about the Mexican food industry and about the CMG chain. There is a relatively small market for authentic Mexican food in the United States and CMG can increase this market by having a good marketing campaign. CMG also competes with other food chains which offer healthier ingredients in their menus such as Qdoba, Panera Bread and Moe’s Southwest Grill. So in order to increase visibility over their competitors an ad campaign is advisable. Using Jerome McCarthy’s marketing mix 4-P’s strategy I have outlined a possible advertising campaign for CMG. Product - The focus of the ads should be their healthier ingredients. Americans are becoming more aware of healthy eating and would like to have more options as to where to eat out where it is healthy and yet not break the bank doing so. Already customers perceive Chipotle’s menu to be healthy. CMG can show that eating at their restaurants will help them stay on the right path at a decent cost. It should also focus on their naturally raised meat as a key factor to their healthy selection. It encourages people who are conscious about eating natural foods, and those who are conscious about humane animal treatment to eat at their restaurants. Promotion – Chipotle’s typical method of advertising is word-of-mouth therefore creating the best possible image about their stores to any customers who enter them would encourage a good review to be passed around. Although our marketing program has many components, we believe the single greatest contributor to our success has been word-of-mouth, with our customers learning about us and telling others. Some of our customers have gone so far as to develop websites about Chipotle, providing a way for Chipotle customers to share their stories. This kind of support helps us grow without requiring additional advertising expenditures. They can also have a marketing campaign that touches on the Chipotle experience being like no other fast-casual dining experience with very artistic dining in a young and trendy environment. Another way to promote Chipotle would be on websites that are targeted at their segment market such as Health Sites, Pregnancy and Motherhood, Body Building, Weight-loss websites etc. The same method can be used to target segments who watch television at certain times or certain channels. Chipotle uses a “soft” voice in marketing to customers therefore using celebrity endorsements would move away from their culture of subtle advertising. Price – Because Chipotle uses ingredients that are high cost it will be inevitable that their prices will be higher than the average restaurant that sells less healthy food. Given where they have positioned themselves in terms of price if CMG lowered their price they would run the risk of having operating costs that are higher than revenues. Customers’ perception of Chipotle food is that it is of higher quality therefore they are prepared to pay more. Another major risk would be that customers would perceive the quality of their products to have also gone down with the price. Hence keeping prices where they are or higher would be the best way forward. Place – According to CMG, great locations for restaurants are residential, office, retail, university, recreation and hospitals. Also they prefer urban and suburban areas with high residential and daytime population . Therefore campaigns can be targeted at colleges where there is high a volume of people that are usually urban. Also many people of college going age very concerned about weight therefore the promotion in these places would center on the healthy menu options offered at a CMG. Chipotle is a big hit in major metropolitan areas where the...
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