BurritoZilla Product LaunchMarketing Communication Plan

Prepared by: Lee MurrayMarah SlapsakPaula YakubovBrandon RossKevin AdamsAlysha Shimko

“Fast Casual” refers to a fine dining experience served with a fast food speed. Chipotle dominates this sector of the market and boasts dedicated front line staff, middle management, and executives.Chipotle owns two other restaurant chains. “Shophouse Southeast Asian Kitchen” and “Pizzeria Locale” offer different experiences within the “Fast Casual” niche and those additional outlets allow Chipotle to diversify its menu options.

Client Overview

Chipotle Mexican Grill (NYSE: CMG) is a public company based in Denver, Colorado.

Chipotle specializes in tacos, burritos, and salads. Chipotle positions itself as an ethical business that uses locally sourced organic ingredients and is the leading restaurant chain in the “Fast Casual” niche.

100 percent of chicken and pork served is naturally and humanely raised.

The Restaurant

The Experience

Financial overviewChipotle owns a total of 1595 locations, opening 185 new restaurants in 2013. Annual revenue for that year $3.21 billion, a 17.7percent growth over previous year, and the chain enjoys the best operating margin in the industry: 26.6 percent.

International locationsChipotle has restaurants in several countries, and although expansion in the European market is slow because of low brand awareness, growth is steady. Chipotle plans to open a further 180 restaurants throughout 2014.

Financial Overview International Locations

Country Number of locations

United States 1572Canada 7England 6France 2Germany 1

Mission Statement

“Food With Integrity: It means serving the very best sustainably raised food possible

with an eye to great taste, great nutrition and great value. It means that we support and

sustain family farmers who respect the land and the animals in their care. It means that

whenever possible we use meat from animals raised without the use of antibiotics or added

hormones. And it means that we source organic and local produce when practical. And that we use dairy from cows raised without the use of synthetic hormones. Food With Integrity is a journey that started more than a decade ago

and one that will never end.”

SWOT Analysis

Operating margin of 26.6% best in the industry (2013)

Only restaurant chain with commit-ment to non GMO ingredients (2013)Fine-dining experience with fast food speed of service

Only major Mexican food player in “Fast Casual” niche

Dedicated front line staff, middle management, and executives (2013) (Indeed)

Strong brand continues to dominate the “Fast Casual” niche

Fluctuations in the cost of premium ingredients and inflexibility of pricing structure (2013)

Heavily reliant on small list of suppliers

Slow international growth due to low brand awareness (Shaw)

High cost of quality ingredients around 33% of revenue (Shaw)

History of backtracking on “responsibly raised” food standards to keep up with demand could damage reputation (Choi)

Currently diversifying menu options through secondary outlets “Shop-house Southeast Asian Kitchen” and “Pizzeria Locale” (2013)

Seasonal fluctuations in sales leaves space for further diversification during winter months

Untapped franchising opportunities. Although Chipotle remains resistant to franchising, as the niche matures it could become a viable option to main-tain revenue (Taylor)

Additional menu options

Further acquisitions of similar niche restaurant chains (Cramer)

Limited supplier list increases risk of supply chain problems from natural disasters (2013)

Direct competitors selling higher quality food comparable to Chipotle (Gara)

Customer profiles show that diners who enjoy the “Fast Casual” expe-rience are fickle and often seek out interesting alternatives (Baertlein)

“Fast Casual” niche becoming satu-rated with Chipotle clones and other cuisines offering similar dining experi-ence (Baertlein)

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

Competitor Analysis

Chipotle has three main competitors in the Quick Serve Mexican category. Hot Heads, which was founded in October of 2006, provides an atmosphere that appeals to “cool” customers with “awesome” food (Hot Heads) which is a similar concept to Chipotle. As of 2014, Hot Heads currently has 58 locations open. The strengths of Hot Heads is their wide array of menu options. They offer certain extras that are not available at Chipotle, such as queso, and their food is available in more forms. Another strength is the multitude of sauces that Hot Heads carries. Hot Heads does not have very much brand power. It is generally based out of Ohio and the company only has 58 locations. The food served in Hot Heads is not considered to be organic nor is their meat free-range, a big negative to those that are health conscious.

Qdoba is the second main competitor of Chipotle. Qdoba was started in 1995 and began franchising their restaurants in 1997. Qdoba was bought out by Jack in the Box in 2003 and continues to grow as a company, with over 1,000 locations in the U.S. and in Canada. Qdoba has consistently been on the Franchise 500 list since 2010. (Entrepreneur). Similar to Hot Heads, the strength of Qdoba over Chipotle is that their food is offered in more forms - nachos, quesadillas, etc. Their target market is slightly different. Chipotle is geared more towards middle-class people since it is on the expensive side, but Qdoba is even more expensive. Qdoba also does not feature organic food.

The final main competitor of Chipotle in the Quick Serve Mexican category is Taco Bell. Taco Bell was founded in 1954 and by 1967 had already opened 100 locations. Currently, Taco Bell serves over two billion people per year and has over 6,500 locations opened mostly in the United States (Taco Bell). Taco Bell is very well established, and has many more locations than Chipotle (Hot Heads and Qdoba, also). Taco Bell also features a drive through, a feature that does not fit with Chipotle’s “Fast Casual” experience. Although a much lower grade of ingredients are used in Taco Bell’s products, some of their menu items are lower in fat than those on Chipotle’s (Business Insider).Taco Bell also has some weaknesses, including the bad reputation that the company has garnered over the years about the questionable content of their meat. Although they are both fast ways to get Mexican food, Taco Bell is considered more of a fast food restaurant than Chipotle. Finally, like both Hot Heads and Qdoba, Taco Bell does not feature organic ingredients on its menu.

Target MarketChipotle targets several market segments:

Young AdultsChipotle targets young

adults by opening locations near college campuses and using marketing techniques such as handing out gift cards at college

blood drives.

Parents with young children

They offer a kids menu to appeal to

parents.

VegetariansChipotle

introduced a menu item made

from tofu.

By featuring organic, non-GMO food and free-range meat, the

company has a target audience of the health conscious adults with discretionary income.

Health-consciousadults

Brand Positioning

Food with integrityFood with integrity is key to the Chipotle brand. The company’s strength in the US has been positioning the brand by offering the unique concept of integrity in the fast food dining market. Chipotle is perceived to be healthier than its competitors. Chipotle has successfully positioned itself as a consistently high-quality, quick service Mexican restaurant. The quick service and high-quality Mexican food create an experience for the customers which help keep them attracted to Chipotle. Chipotle’s logo—a dried up pepper—is well recognized among people, as is their top product: the foil wrapped burrito. With a surveyed that was conducted, 79% of those who looked at a foil wrapped burrito associated that burrito as a Chipotle burrito.

Unique Selling PointChipotle has created a unique selling point among its competition. Chipotle offers limited variety but high quality food. With the limited variety, Chipotle ensures they serve food with premium quality ingredients. “Food with Integrity” is marketed by Chipotle as “commitment to finding the best ingredients with respect for the animals, the farmers, and the environment.” Each of these food items have multiple variations along with different kinds of salsa, different kinds of meats, and different kinds of vegetables. Unlike Chipotle’s competition, customers are given the freedom to create and customize their meals with no limitations. This personalization reinforces Chipotle’s dedication to putting their customers’ needs and wants first.

Marketing Communication Objectives & Strategies

ObjectivesIncrease foot traffic through winter months. Chipotle’s turnover is cyclical, with higher revenues in the summer months than the winter months. This promotion is in direct response to that winter lull, and aims to create more sales during the first few months of 2015.

Expand upon key message and win more business.

Chipotle is a brand for health-conscious young people with discretionary income. The purpose of this promotion is to cast the net wider to engage with customers in that market segment that have never visited a Chipotle before, and expand the customer base.

Reinforce the quirky nature of the Chipotle brand through unconventional ads.

Strategies

Television advertisingA national campaign will reach current customers and prospective customers alike. Long enough time slot to allow for narrative message to be delivered.

Expensive.Viewers not always engaged during commercials.Many viewers not within market segment.

Personal sellingFront line employees have direct contact with customers already committed to purchase.

Not a tested method in Chipotle.Fast-food tactic may not gel with overall “fast-casual” experience.

Public RelationsCheap.Credible third-party endorsement.

No guarantee of exposure.

Internet & social mediaCheap.Direct marketing to current customers who are engaged and invite promotional offers.Word-of-mouth spread of message more credible than traditional advertising (apparent endorsement of the message by users who share.)

Opens campaign up to immediate criticism.No guarantee of word-of-mouth/viral spread

Promotion eventsIn-store promotions and cross promotions

Lowers bottom line when coupons are used. Not a tested method in Chipotle.Disrupts the transaction and slows the line.

BENEFITS DRAWBACKS

Creative Strategies & Rationales

The tv commercial will appeal to the target audience that ranges from teenagers to adults in their mid forties, because it focuses on the introduction of a bigger burrito presented in the form of BurritoZilla, which is a reference to Godzilla. Chipotle is a company that likes to cater to the hip, urbanite crowd.

Television Advertisement:

The tv commercial will start with a woman who orders the new BurritoZilla from the secret menu. The employee (woman) behind the counter flinches and ducks behind the counter slightly because she knows what will happen next. BurritoZilla crashes through Chipotle and the only thing the viewer can see is BurritoZilla’s tinfoil wrapped foot and hand as he hands her the customer the burrito. The walls crumble to the floor as BurritoZilla roars and stomps away, shaking the ground. As the viewer watches BurritoZilla stomp away from the store, a man with a deep voice says “BurritoZilla, it’s double wrapped with double meat; double trouble”. After that, the employee rises from behind the counter, dusts herself off, and another customer (male) says he wants to try a BurritoZilla and the employee gives him a dirty look.

Setting: The Chipotle will be a stand-alone establishment placed within a suburban city. The inside will be larger and made up with about 20 tables inside, a cutlery and sauce station, and the main counter.

Lighting:The scene will take place during mid-day which will provide maximum light quality combined with the lights inside the establishment. The commercial itself will be bright-colored with clean picture quality.

Audio: The conversation between the customer and the employee will be the main focus at first, then the sounds of BurritoZilla crashing through the building will take over until BurritoZilla leaves and the sounds of his stomping fade and then the announcers voice will be the focus. Before the commercial ends, the viewer will hear the pieces of the walls crumbling and the second customer saying he wants to order a BurritoZilla as well.

Camera Angles: First, the camera will show both women communicating, then it will pan over to focus strictly on the employee behind the counter. Next, it will be set behind the customer, facing the counter and BurritoZilla’s foot will come into view from the right-hand side. After, the camera will pan over to watch BurritoZilla stomp away and will focus there until the announcer’s voice is silent. After that, the camera will show the employee rising from the floor behind the counter and brushing off the dust and debris from the building. Finally, the camera will pan back over to show both women and the male customer standing by the counter.

The BurritoZilla campaign will focus on two mediums: Television and social media.

TelevisionThe commercial takes place at a Chipotle restaurant. A customer approaches the counter and asks the associate for a BurritoZilla, which features a double wrapped burrito with double meat and double the trouble. The associate looks nervous when she begins to make the BurritoZilla. Before she can begin, BurritoZilla crashes into the restaurant and gives the double wrapped, double meat burrito to the customer and stomps away with a loud roar. To reach as many people possible from our target audience, the commercial will be shown on popular channels for all age groups ranging from young teen to adult. The decision to promote Chipotle on television was made based on the popularity. People watch television almost every day and you don’t have to watch it on a television screen. Now, you can even watch from a cell phone or tablet. Today, television is one of the best ways to promote a business or product. The goal for this commercial is to appeal to the eye, not the ear, so putting the commercial on the radio wouldn’t work. If you see a commercial about this burrito, you’ll want to eat it. If you hear about this burrito on a commercial on the radio, you’ll forget about it or change to a different station before the commercial is finished.

Social MediaIn past years, social media has exploded with popularity. Chipotle has over 588,000 followers on Twitter, and more than 3.9 million likes on Facebook. The commercial that is shown on television can also be shared throughout social media on both Twitter and Facebook and Chipotle will be able to receive feedback from the viewers on what works and what doesn’t work. Rationale: The BurritoZilla will be promoted through a televised commercial because it will

be seen by more people and will target our target audience quicker than advertising this commercial anywhere else. The basis of the selection was developed by the character, Godzilla. Godzilla is big, strong, and causes trouble. So does the BurritoZilla. It is so big and strong with thee double meat option that it has to be double wrapped and it causes trouble because you can never have just one. You’ll always want more. The idea of BurritoZilla will appeal to all ages of our target audience, from young kids to adults. Through social media, a video can receive millions of views in a matter of minutes if the video is popular enough. By also posting the commercial on Chipotle’s social media sites, the commercial will have the opportunity to be viewed by millions of people and those viewers will have the opportunity to offer their feedback to the company on whether or not the commercial appeals to them and what the company can do to appeal to them better.

Media Strategies & Rationale