Chipotle Mexican Grill’s core competencies are the following: a) using high quality organic ingredients to provide delicious and reasonably priced dishes; b) having a limited, but focused me…Full description
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Case #1 Chipotle The Best Queso Scenario Ashley Keenan Alysia Campbell Dana Ihlenfeldt March 1! "1
TABLE OF CONTENTS
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EXECUTIVE SUMMARY
Chipotle is a fast9casual restaurant that prides itself on :5ood ;ith Inte Chipotle uses locally sourced and or Chipotle in recent years had a crisis in dealin< ;ith multiple outbrea?s related to food safety> The case that our And they ;ant to ?no; ho; to strate= .e .e ;ere also
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INTRODUCTION
The case that our And they ;ant to ?no; ?n o; ho; to strate= .e ;ere also .e bro?e that do;n into t;o stated problems> The first bein< to discretely assess the dama The second bein< to sho; them ho; to strate .e also found that there ;ere a fe; unstated problems to address related to effects of the recent food scandals> These three unstated problems ;ere to re Throu COMPANY OVERVIEW
The Chipotle brand opened in 133,> They specialie in fast9casual Meican food> They The y compete ;ith brands such as Moes South;est 4rill and Qdoba> They claim to ser@e :a fe; thin .ith a limited menu they ha@e thousands of options because of customiations ;ith a @ariety of in Chipotles creation aimed to pro@ide one of the first fast9casual dinin< eperiences> The fast9casual dinin< eperience is one that uses full9ser@ice restaurant Fuality! but has the speedy ser@ice of fast9food> 5ast9casual restaurants adopted the use of Fuality in The fast9casual restaurant also aims to ha@e the friendly ser@ice of
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fine dinin 5ast9casual restaurants are the fastest Chipotle considers the foundation of their menu to be the use of fresh in They@e recently adopted an approach that reFuires or They call this ne; approach :5 ood ;ith Inte The use of home9 These causes help the brand to They call their or They belie@e that these in They partner ;ith local farms to produce their in They pic? farms that allo; animals to be They choose farms that are committed to or They belie@e these in OUTBREAK TIMELINE
Chipotle ;as challen The first outbrea? occurred in Au The outbrea? affected 80 people ;ith Salmonella> The second outbrea? ou tbrea? occurred in December of "1 in Boston> The outbrea? affected 1,2 people! primarily colle The third and fourth outbrea?s occurred from December "1 " 1 into 7anuary "18 in multiple states> The outbrea?s ;ere both of $>coli> The third outbrea? occurred in 11 states and infected people> +f these people there ;ere 1 hospitaliations> The fourth outbrea? occurred in three states and affected people but did not result in hospitaliations> The CDC concluded their
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in@esti Impro@ed food safety practices ;ere created by the company upon the conclusion of the CDC in@esti Since the outbrea? the brand has dealt ;ith lost sales to their competitors> Qdoba too? o@er the spot as the leadin< Meican restaurant chain> This has left Chipotle ;ith a loss of sales> To combat this the brand has created a customer loyalty pro The re;ards pro The company has made attempts to re9establish their brand as a trusted food source but h as fell short in a;areness> Chipotle made se@eral chan The mar?etin< attempts to communicate chan $pansi@e creati@e series of @ideos ha@e the ?ey messa These These chan SURVEY
.e recei@ed 10 responses o@er the course of the rou The sur@ey consisted of a total of 12 Fuestions! althou The sur@ey flo; ;as based on if a respondent had been to Chipotle or not> If a respondent had not been be en to Chipotle they ;ere as?ed Fuestions related to the first purpose detailed belo;! as ;ell as ;hy they had not If a respondent had been to Chipotle before they ;ere as?ed e@ery other Fuestion because of their eperience ;ith the brand> All users ;ere also as?ed basic demo .hat stood out to us about the demo .e also found that 30 respondents ;ere female> These demo
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.e conducted an independent sur@ey that had a fe; different purposes Gor Fuestion cate A detailed list of sur@ey Fuestions Fu estions can be found in Appendi B> The first purpose of the sur@ey ;as to Questions re These An o@er@ie; of the insi (esponses such as fresh! yum! and delicious ;ere lar +@erall the brand attracted more positi@e or neutral Gburrito! Meican! .e also found that necoli! sic? and poisonin<> This tells us that re The brands history ;ith food safety still lin This A second purpose of the sur@ey ;as to understand und erstand the respondents relationship ;ith Chipotle> Questions re These Fuestions allo;ed us to understand ho; and ;hy people may be choosin< the brand> A fe; insi +ur sur@ey found that 2" respondents had been to Chipotle at some point in their life> .e also found that 81 respondents had been to Chipotle ;ithin the last year> 5or us this means that a
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A third purpose of the sur@ey ;as to .e aimed to use discrete Fuestions that ;ere unbiased! but bu t could still allo; us to understand if dama Questions re These Fuestions allo;ed us to Insi .e .e found that a maJority of respondents opinion of Chipotle had stayed :about the same= in recent years G" respondentsH> .e also noticed ;ithin that same Fuestion that :some;hat ;orse= G1 respondentsH ;as ele@ated abo@e the rest of the responses ;hich ;ere each respondents> .e learned that a maJority G respondentsH had heard of food safety concerns in recent years> .e .e also found that a .e as?ed if the user had heard about any chan ,, respondents on the other hand had heard about chan To To These insi LIMITATIONS
.e found that there ;ere a fe; possible limitations to our sur@ey that could affect sur@ey responses> As al;ays ;ith sur@eys it is possible that respondents may ha@e misinterpreted a Fuestion or made an error in respondin<> Beyond that a second p possible ossible limitation could ha@e been that based on our sur@ey location! primarily .isconsin! .isconsin! that there ;ere no outbrea?s affectin< our local Chipotles> The closest outbrea? to .isconsin ;as in Minnesota! and that ;as
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an isolated incident compared to the rest of the outbrea?s> Since there ;as no n o outbrea? locally there ;ould ha@e been less information to understand the etent of the outbrea?s else;here> Therefore the dama A third possible limitation also has to do ;ith our location but b ut in a different sense> .e distributed the sur@ey as students of the &ni@ersity of .isconsin 9 4reen Bay> Ba y> Many people in our distribution net;or? ;ere students here as ;ell> Chipotle primarily attracts millennials! particularly colle It is possible that that because sur@ey respondents in maJority ;ere their primary audience that they ;ould be less affected because of their loyalty or li?eness to the brand> This colle nationally> Therefore the brand may still be fa@orable despite the outbrea?> Coupled ;ith our location not bein< near an outbrea?! it is li?ely ;e ;ould ha@e been less ne SWOT
Chipotles main stren
This audience ?eep a steady stream of business throu This ;as helpful in ?eepin< some profits in the fourth Fuarter in "1> The second stren
The or This ;as helpful in implementin< ne; safety procedures after the outbrea?s> Chipotle also belie@es in :food ;ith inte The company buys food from local! or This allo;s the company to brin< consumers morally ri .ea?nesses .ea?nesses that the company faces are other scandals the company has faced other than the outbrea?> A la;suit ;as filed in December of "1 a The
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la;suit ;as brou Since this ;as in the middle of the food scandal! it didnt recei@e a lot of media attention until shortly after> Durin< the summer after the outbrea?! the company faced e@en more ne The last ob@ious ;ea?ness ;ea? ness is the companys lost trust;orthiness of their food> Since the outbrea?s! consumer no lon +pportunities lie in re Chipotle has made Accordin< to the sur@ey results! most of Chipotles consumers are una;are of these procedures> If Chipotle can communicate that ;ith their audiences! they ha@e a Threats surroundin< the company is competitors> Moes South;est 4rill profited off Chipotles scandal and pushed Chipotle out o ut of their top position for :casual Meican restaurant=! ;hich Chipotle held for years prior> Another Another threat is any potential outbrea?s or ne ;a y> If Chipotle is able to brin< bac? the customers that ;ere deterred! any ne Audience Anal!i!
5or audience analysis! ;e chose the audiences that ;ere most affected by the outbrea? and those ;ho ;e ;ant to focus on the most> .e listed listed the lions of each! ho; they are affected! and the best channels to reach rea ch them by! their beliefs! concerns! and their personal
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+ur first audience are the dedicated customers> The lions are the youn< adults and teena They are most li?ely to stic? ;ith the brand throu The best channel to reach the lions are throu They belief that Chipotle has Fuality food and are not ;orried about becomin< sic?> They may be concerned about Chipotle losin< business and potentially closin< stores or Their Their main *et are potential customers> .e chose teena They may be ;illin< to try chipotle but unsure because of the recent outbrea?s or that they mi Their +ur suppliers are the farmers and rancher ;here ;e They ha@e the potential to be ad@ocates because of the buy in ;ith our brand> They also ha@e a lot to A rich channel! li?e meetin< face to face! ;ould b e the best ;ay to reach them> .e can also try to reach potential suppliers throu Suppliers belief is that they ha@e a Fuality product for Chipotle> They are ;orried that they mi They ;ant to offer a Fuality product to Chipotle to ?eep the ne Chipotles casual customers ha@e @isited a restaurant a couple times but ha@e not become loyal customers> The lions ;ould be adults potentially ;ith families to be ;orried about> This audience ;as the most deterred from our brand to competitors but they also ha@e the potential to become dedicated customers if ;e are able to re The best channel to reach them
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by ;ould be social media and traditional media> This audience can do ;ithout Chipotle and co ncerns> This audience ;ants a safe and Fuality Fu ality dinin< eperience> +ur competitors are the restaurants that Moes South;est 4rill is the lion because they The best ;ay reach our competitors is throu Competitors belief is that they ha@e a more Fuality restaurant than Chipotle> The y are concerned that Chipotle may come bac? from the setbac?s of this scandal because they ;ant to be able to reap the benefits that Chipotles scandal has created for them> $mployees are an internal audience that are most influenced throu Chipotle needs to be able to ?eep morale throu The best channels to reach this audience is throu $mployees ;ant to protect the brand so that they do not lose their Jobs> They are concerned ;ith the company losin< re@enue and lac? of control of the issue> Their Another important audience are the in@estors> The lions are the stoc?holders of the company> They They are financially affected if Chipotle does not do d o ;ell> Chipotle can reach them throu e mails> In@estors Just ;ant to ma?e money and they are concerned ;ith losin< it if Chipotle does not come co me bac? from the scandal> +pponents ;ere typically found on social media> They ha@e the potential to influence customers from ;ord of mouth tactics> If Chipotle ;anted to reach this audience! it ;ould be throu +pponents belief is that Chipotle is not a safe or Fuality dinin< option>
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They are concerned about abou t their friends Their The medias lions include the maJor ne;s a< They ;ere influencers and affected the publics perception of Chipotle> The best ;ay to reach members of the media is throu The media beliefs that the public deser@es to ?no; the truth about the outbrea?> They are concerned that if they sho; Chipotle in a positi@e li Their GOST
+ur first The obJecti@e is to re The first strate .e ;ill do this in a fe; ;ays> The first is to ha@e :farm to finish= finish= @ideo sho;in< the process of the food at the farm! to the preparation table! to bein< ser@ed to a customer> .e .e ;ill ha@e the @ideo campai .e ;ill also ha@e a shorter more condensed @ersion of the @ideo to put on T' commercials and ha@e them .e ;ill also ha@e a si +ur second strate The e@ent ;ill be held on o n a local farm Geither a li@estoc? farm or a fresh produce farmH on the outside of Den@er! C+> .e chose Den@er because it is the ori This is the ;ay to
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community and ?eep Chipotles Fuality stron<> All of the money raised ;ill H around the &S throu .e ;ill ha@e a special offer offer to consumers on the the same day of the e@ent for a buy one This All profits from this promotion ;ill +ur second .e ;ould li?e to re +ur first strate .e ;ill ha@e a campai This helps sho; the the consumers ;ho is Chipotle ;ill also implement a chec?list of safety safety procedures that the farms must be doin< to fit Chipotles standards> standards> If farms are not meetin< this standard they ;ill ;ill be remo@ed from the supply chan +ur net strate $ach store ;ill ha@e produce that is ;ithin a "" mile radius of the store to insure Fuality and 5inally! ;e ;ill distribute a sur@ey and hold focus The data ;ill be Ri!" Mana#e$en% G&id
.e thou They had safety procedures in effect but it ;as unpredictable that the outbrea? ;as 6ad they ?no;n they they ;ould not ha@e continued puttin< the contaminated contaminated in By addin< the ne; safety procedures they are ma?in< @isible for not
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only the company but consumers to see see that their food is safe> By sho;in< them the step by step process of ;here the food is comin< from and ho; it is prepared it become obser@able and controllable> Bud#e%
.e ;ere 5or our T' ad@ertisin< mar?et ;e allocated !""" and ;e loo?ed into smaller mar?et rates> .e are $ach ad a@era .e allocated thousand to 5or the e@ent held in Colorado ;e allocated "!""" to co@er the cost of food! e@ent set up! etc> that ;ill 5or the buy one item> .e set aside "!""" dollars to create a scholarship fund for students around the &nited States ;ho ha@e a particular interest in a .e left 1"" thousand for contin .e also ha@e this contin Ban# '(& %)e Buc"
.e completed the Ban< for the Buc? chart and this really helped us By loo?in< at this chart it helped us focus on ;hat ;e needed to include and ;hat ;e should a@oid doin<> The :6o;= for our case is ho; is the food bein< processed! cleaned! and ser@ed no; The food needs to be Fuality and e@erythin< is done correctly> .ith .ith people bein< concerned ;ith the food safety it is crucial that ;e are transparent ;ith the entire process of preparin< the food> That is ;hy it is our first first priority> priority>