Seminar: Cultivating a better world: Chipotle

Topic Number:2

Principles of Business: Stage 2 Marketing

Overview

Over the last few years Chipotle has undergone a significanttransformation in its approach to marketing. From its productcentric marketing strategy where the key features in itscommunication strategy comprised of highlighting their burritosto a vision led approach. Today, Chipotle has not only highlightedkey issues relating to animal farming but have taken key stepswithin their organisation to adopt more eco friendly practices.

In this seminar, we will look at how Chipotle moved to this visionlead approach and how they have lived and breathed their vision.We will initially look to understand the rationale of their change ofapproach and impact it has had. Thereafter, we will look at thesteps they took to realise their vision. Finally, we will then go onto evaluate two of their adverts and analyse how theycommunicated their new approach.

3

• 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.

Learning outcomes of this seminar

Agenda for this seminar

What are the key issues Chipotle is standing up against?

Critically evaluate the marketing communications approach

Review the two adverts and articulate the strategic thinking behindthem

Provide a brief overview of Chipotle, the company, strategy and vision

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 waypeople think about and eat fastfood. We do this by avoiding aformulaic approach when creatingour restaurant experience, lookingto fine-dining restaurants forinspiration.

Our approach is also guided by ourbelief in an idea we call “Food WithIntegrity.”

Our objective is to find the highestquality ingredients we can—ingredients that are grown or raisedwith respect for the environment,animals and people who grow orraise 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 Lineis 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