Published by MBA Skool Team, Last Updated: August 26, 2021
Marketing Strategy of Chipotle Mexican Grill analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Chipotle Mexican Grill marketing mix, help the brand succeed in the market.
Chipotle Mexican Grill marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Chipotle Mexican Grill Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Chipotle Mexican Grill marketing strategy can be explained as follows:
Chipotle Mexican Grill is a leading Mexican food chain based out of USA. Chipotle has managed to bring a great amount of sophistication in its Mexican styled food and the entire dining experience that it offers to its customers. It has successfully infused fine dining with the fast-casual style food as a part of its marketing mix product strategy. Although there is a whole lot of variety in Mexican food Chipotle Mexican Grill has a limited menu featuring only six dishes namely burrito, crispy corn tacos, soft flour tacos, salad and bowl. This helps in achieving the optimum quality because of streamlining of processes. Chipotle offer chips along with guac or queso (the dips), margaritas and soft drinks as sides. They have a kids-menu for the toddlers as well. Information regarding various ingredients that they use has been given on their website. They have tie ups with the local farmers and suppliers who supply them fresh ingredients every day. They also give the customers the understanding about the animals that they raise in good conditions whose meat is later used by them.
Chipotle Mexican Grill Price/Pricing Strategy:
Below is the pricing strategy in Chipotle Mexican Grill marketing strategy:
Chipotle Mexican uses high quality organic ingredients in its dishes and hence the dishes are priced higher than their counterparts.
The prices are in similar ranges for the dishes. The burritos and bowls are priced between $6.5 and $7. The tacos are price according to the number of pieces and the prices range from $2.5 to $7. They are higher for more number of pieces. The salads are also priced between $6.5 and $7.5 like bowls and burritos. Chipotle restaurant also offers extras like chips and dips priced between $1.5 to $3.5. Margaritas are priced on the higher side that is $7.5. These prices are higher than the competitors but Chipotle continues to charge these as it also wants to maintain the brand image. It offers discounts to students based on ids where the goal is to establish a wide customer base. The profit margins are therefore very high because of the high prices.
Chipotle Mexican Grill Place & Distribution Strategy:
Following is the distribution strategy in the Chipotle Mexican Grill marketing mix:
Chipotle is present in five countries namely United States of America, Canada, United Kingdom, France and Germany. There are about 2500 outlets in all and a staff of 50,000 employees. The food can be ordered from their website which has the store tracker so that customers can locate the restaurant near their area. At the restaurants the customers get to see the process of making their dishes. All the ingredients are available for display and the customers get to choose for themselves if they don’t want certain ingredients in their dishes when it is being made. Chipotle restaurants offer quick service but the food served matches the sophistication which is achieved in fine dining. The interiors are classy and the seating is cozy as well. They also are available during certain events or concerts where they serve quick food.
The promotional and advertising strategy in the Chipotle Mexican Grill marketing strategy is as follows:
Chipotle is aggressive in its promotion strategies and hence uses television ads, billboards and newspaper ads. It has its own website which gives information about the various dishes that it has to offer. It talks about the various ingredients used in the dishes and the way they are procured. It also talks about the nutritive value of its dishes and its ingredients so as to provide it for various types of people for example lactose intolerant ones, fitness freaks and so on. This ensures that they are engaged with their customers and customers get easy access to information regarding the food chain. Chipotle offer discounts and other offers to college students based on id. They are present for concerts, student events and fairs where they sell the food. While entering newer territories they send food trucks giving out free food for tasting. Chipotle also are into numerous partnerships with schools for promoting their food. They also market themselves on social media platforms like Instagram where they have a wider reach. As a part of its marketing strategy, Chipotle provides sponsorships & innovations at various global events like Olympics.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Chipotle Mexican Grill.
Steve Ells is the CEO of the company. There are heads of departments like operations, marketing, finance and human resources which form the top management along with the CEO. There are also regional heads based on territory segregation which forms the next level. Under these there are individual heads according to the territories for different aspects of the business and so it goes on. The Chipotle staff is well trained and get regular training to be up to date with the needs of the business requirements.
For Chipotle it is essential that the intangible benefit that they give to the customers is of the topmost quality. The customers visiting the restaurants of the chain are exposed to similar decors. The restaurants are plush with subdued elegance which makes the experience classy. The personnel are all well-mannered and provide an organized service with the best behavior.
The process of Chipotle is similar to any quick service restaurant. The customers enter the restaurant and place the order. The money has to be paid at the spot before having the dish. The dish can be seen being prepared in front of them. They can till then have a seat and wait for it to be brought to them by the server or take it when it is ready from the counter. Hence this covers the marketing strategy of Chipotle Mexican Grill.
About Chipotle Mexican Grill:
Chipotle Mexican Grill is an American chain of restaurants serving Mexican food founded by Steve Ells in 1993. The main aim of the restaurants was to integrate fine-dining with quick service restaurants and have been successful in doing so. It is present in five countries namely United States, United Kingdom, France, Germany and Canada with a staff of around 50000 employees in 2500 locations.
Chipotle had a net revenue of more than 5 billion dollars and an annual income of 475 million dollars. It faces competition from other chains like Taco Bell and Moe’s Southwest Grill.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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