Create an develop advertising plan for successful restaurant as part of team to include situational analysis, objectives, strengths & weaknesses, budgeting, strategy, execution, and evaluation. Direct responsibility for media plan covering strategy, media assessment, targeted execution, and budget allocation for best engagement with sought after market. (2006)
2. Bright Ideas, Inc.
Mission Statement:
We at Bright Ideas, Inc. are strong believers in working with our clients to
achieve success in today’s competitive environment. Our commitment and
dedication sets us apart from the rest and therefore will be a top choice
among advertising agencies.
Katlyn Andolina
Research
Brooke Hundley
Media
Kristen Mendoza
IMC
Samantha Karp
Creative
Jessica Toglia
Production
3. Table of Contents
Introduction:
Strategy:
Executive Summary 1
Overview 2
Target Market 19
Campaign Strategy 20
Situational Analysis:
Execution:
Historical Context 3
Timeline 5
Industry Analysis 6
Creative Objectives and Strategies 21
Media Plan 31
Integrated Marketing Communications 46
Market Analysis 8
Client SWOT 9
Competitor Analysis10
Objectives:
Quantitative Benchmarks 16
Time Frame 17
Budgeting:
Method and Amount 18
Evaluation:
Criteria for Success and Measurement Methods 50
Marketing Recommendations 52
Sources 53
4. Executive Summary
Chipotle Mexican Grill, created in 1993 by Steve Ells, can credit its national
growth to the support of its parent company the McDonald’s Corporation.
Chipotle’s dedication to serving fresh food as well as naturally raised meats, has put
them at the top of the restaurant industry in the United States.
Bright Ideas Inc. wants to continue this vision while reaching out to greater
markets within the United States. This six month long campaign will help us to meet
our objectives as well as establish Chipotle’s place in the active lifestyle of the target
market.
1
5. Overview
Real food, real fast. That’s the idea behind the newest trend to hit the dining
experience. It’s termed “fast-casual,” and it’s not only the fastest growing segment in
the restaurant industry, but a concept that provides both the quality of full-service at
a price and speed comparable to that of quick serve. Within the last decade the
category of fast casual has set its own standards for quality, moderate price, and
service. Regardless of the brand or the types of food offered, one thing remains true,
the industry is high in demand and potential suppliers wants their own stake in this
billion dollar market.
We at Bright Ideas Inc. have developed a campaign for Chipotle Mexican Grill
that is designed to keep them on top of mind in this growing fast-casual market.
Through the use of different strategies within this campaign we will increase sales and
awareness among our target market. We will utilize several different marketing
approaches and media outlets to achieve this goal including television, print, radio,
internet, as well as nontraditional outlets. These strategies coupled with an
Integrated Marketing Communications approach will launch Chipotle into the
minds of consumers while fostering long-term success.
2
6. Historical Context
Chipotle Mexican Grill was created in 1993 in Denver, Colorado by CEO Steve
Ells. McDonalds Corporation owns 87 percent of Chipotle. Chipotle serves its
customers with quality food at a fast speed. It is a restaurant in the “fast-casual”
segment of the food and restaurant industry with a main selling focus on their
unique burritos.
Chipotle Mexican Grill uses quality raw ingredients that are used in upscale
dining establishments. Not only does this restaurant believe in fresh food, but it also
focuses on choosing suppliers who ensure the ingredients are as flavorful as possible
while still being environmentally safe. Chipotle calls its food, food with integrity
because the food comes from farms where animals are naturally raised. A majority of
the meat comes from animals raised on vegetarian diets. Chipotle serves more
naturally raised meat than any other restaurant in the United States.
3
7. Historical Context continued
Unlike many other dining facilities, Chipotle’s style is very modern. Chipotle
has made their restaurants into architectural facilities. Each restaurant’s architectural
style is different while still obtaining the modern look.
Although Chipotle Mexican Grill is very unique from many dining facilities, it
is not without its competition. Three companies looking to make waves in the fast
casual market include Qdoba, Subway, and Panera.
With 500 locations in the United States and many more being planned,
Chipotle is a growing establishment that is becoming very successful in the fast-casual
food industry.
4
8. Timeline of Chipotle History
1993 - Chipotle opens its first restaurant in Denver, Colorado
1997 - Chipotle becomes a subsidiary of the McDonalds Corporation
Oct. 19, 1997 - Chipotle goes high tech by using Altametrics
1998 - Chipotle had 14 restaurant locations
2005 - Chipotle made an online ordering system available for pickup, titled “Don’t
Stand in Line.” A way for customers to be able to skip lines and go right up to the
front to pick up their food
Oct. 25, 2005 - Chipotle filed its IPO which indicated a proposed CMG ticker symbol
on the New York Stock Exchange
December 23, 2005 - Updated filing of IPO said that size of offering was approximately
6.3 millions shares with a price of around $15.50-$17.50 per share
2005 - By the end of this year Chipotle had 480 restaurant locations with the help of the
connection with McDonalds
March 2006 - Chipotle opens its 500th location in Fairview Park, Ohio
5
9. Industry Analysis
A proven success in more than 20 markets, McDonald’s owned Chipotle is
doing its best to meet an unquenchable desire in the fast casual market. Chipotle
prides itself on the right concept at the right time. Their mix of fresh gourmet
quality items--organically grown and pesticide free—in the popular Mexican category,
presented in a trendy atmosphere and at reasonable prices is an economic model that
not only makes sense, but has a created a strong brand loyalty. The idea stands alone
as consumers find satisfaction in the ability to create their own healthy fare meals,
although the menu is simple to say the least.
The idea is replicable and has been across Chipotle’s national sprawl. As the
Chipotle brand opens new doors in states across the nation, and with expected
growth to be 60-70 units a year, the critics have quietly taken a back seat to the urban
and suburban expansion into this market. Other companies have looked to grasp a
hold of Chipotle’s shares with the launch of Jack in the Box’s copycat Qdoba brand
as well as Wendy’s acquisition of Café Express. And while it is true that Chipotle
began as one man’s concept and hard work, it would not be able to maintain its
nationwide appeal without the helping hand in distribution, supplies, and endless
capital provided by McDonalds.
6
10. Industry Analysis continued
But while the suppliers attempt to grab hold of the market, Chipotle remains a
strongly supported name in the hearts of consumers. Almost 13 years after the first
Chipotle opened its doors to an idea that could not even be categorized, the chain
has not only grown in sales and developments, but also managed to be true to its
community. Most customers at Chipotle restaurants are heavy consumers and the
young chain maintains complete control of developments in high visibility areas at
the heart of large cities such as Denver, Chicago, Dallas, and Baltimore. As Chipotle
works to expand as a household name it is no doubt they will continue to be
recognized not only for taking a simple food creation and elevating the experience to
something special, but also in opening new ground for others to wet consumer taste
buds while meeting the needs of a healthy and hurried lifestyle.
7
11. Market Analysis
In today’s fast-paced society, consumers rely heavily on convenience food. In the
past, customers have had to forgo quality food for quick service, but the current trend
of fast casual dining has changed the restaurant industry. Fast casual provides the
speed of fast food restaurants and the quality product, atmosphere, and service of
casual dining. There has also been an increased demand for healthy foods.
Restaurants are now adding new heath conscious options to their menu. Another
trend that must be considered is the influence of different culture on American
tastes. The growing Hispanic population in the United States has created a higher
demand for Mexican influenced cuisine. One factor that may influence market
demand is instances of food borne illnesses, including “Mad Cow” disease and Avian
flu. Also, natural disasters have the potential to destroy crops and meat supplies. This
can momentarily increase the price of goods, in turn possibly decreasing consumer
demand for the product.
8
12. Chipotle SWOT
Strengths
• Over 500 locations in 23 states
• Sells a few types of Mexican food
• Known for specialty burritos
• Fast-casual dining specialty
• Fresh, healthy options
• Strong standing in the areas where it is
established
Weaknesses
• Somewhat expensive
Known mostly for burritos, not much else
Opportunities
Threats
• New fast-casual dining services
• Cheaper food from other companies,
including fast-food
• Panera, Qdoba, Subway
Fast-casual dining chains with a wider variety on the menu
•
•
•
9
More venues
Delivery
Expand the menu
13. Competitor Analysis
Chipotle’s competition is divided into three types of dining experiences. One
type is fast food, which offers convenient, low-priced food, such as Taco Bell and
Burger King. Casual dining with express take-out services, such as Chili’s “Too,” and
Friday’s “Express,” offer their menus “to go,” with curbside pick up. Our biggest
competition lies in the fast casual market, with restaurants including Qdoba, Panera,
Boston Market, and Subway. Fast casual offers convenience and quality, with a casual
dining atmosphere.
10
14. Subway
A major competitor to Chipotle Burritos is Subway. They both fall into the fast
casual dining category. By performing a SWOT analysis on the competitor Subway, we
can begin to get a better idea of how well they are doing and also how well Chipotle
stacks up against their competitors.
Strengths
• Named number one franchise in 2005
(this was the 13th time in 17 years)
• Has health conscious alternatives
• Has children’s menu and adaptive
menus for international restaurants
• Relatively inexpensive
Opportunities
• Still developing healthy sandwiches
• More restaurants can be built
• Can sell other health conscious sides
such as Baked Lays Chips
11
Weaknesses
• Competition includes all fast-food
chains
• Stopped their Sub Club Card program
Threats
• Other fast casual dining restaurants
are developing healthy foods
• Broad weight loss claims could backfire
15. Panera Bread
Panera Bread, classified as a “bakery-café,” is one of Chipotle’s biggest
competitors. It specializes in baked goods like breads, muffins, bagels, and sweets, as
well as sandwiches, salads, and soups. The Au Bon Pain Co., founded in 1981 by
Ron Shaich and Louis Kane, bought Saint Louis Bread Company in 1993, and by
1997 the name became Panera Bread. In 1999, Panera Bread was the sole company
kept by Au Bon Pain Co., so that Panera could use all of Au Bon Pain Co.’s
resources, and reach its full potential. The company has grown immensely, and is
now available in 35 states, with over 825 locations. “Via Panera” has recently been
added to create easier, more efficient service to consumers, especially business-people,
so that orders can be placed early for 5 or more available for carry-out. In 2005, their
revenue increased 34% over the previous year’s, and their shareholder value is over
$1 billion.
12
16. Panera Bread continued
Strengths
• Over 825 locations in 35 states
• $1 billion shareholder value
• Sells salads, soups, sandwiches, and baked
goods
• Fast-casual dining specialty
• Winner of many awards all over the nation
• Fresh, healthy options
• “Via Panera” pre-order carry-out for 5 or
more
Opportunities
• More venues
• Delivery added into Via Panera
More specialty coffees
13
Weaknesses
• High calorie foods
Somewhat expensive
Threats
• New fast-casual dining services
• Cheaper food from other companies, including fast-food
• Chipotle Mexican Grill
Fast-casual dining chains with specialized menus
17. Qdoba
Qdoba Mexican Grill is a very important competitor of Chipotle’s. It
emphasizes fresh Mexican food, just like Chipotle, and it is known for its large
burritos, quesadillas, soup, nachos and more. Qdoba started in 1995, in Denver,
CO, and now has 195 locations in over 30 states. Qdoba has added two options,
Q-to-Go Box Lunches, and the Q-to-Go Hot Taco Bar. The Hot Taco Bar serves
hundreds of people, and as few as 20, including chips, toppings, tortillas and
utensils. Q-to-Go Box Lunches can be standard or customized. The idea is an
order-ahead option similar to take-out, with some locations even having delivery.
14
18. Qdoba continued
Strengths
Weaknesses
• Variety of Mexican food including • High calorie foods
soup, salads and quesadillas
Came out later than Chipotle Mexi• Q-to-Go lunches and Hot Taco Bar can Grill, a major competitor, with
the same types of food
• Started earlier in the fast-casual
trend
• Contests, such as with the NCAA
Final Four, and others
Threats
Opportunities
• Chipotle Mexican Grill
• More venues
• New fast-casual dining services
• Delivery added to all locations
• Cheaper food from other companies, including fast-food
• Expand Menu
Fast-casual dining with food other
than Mexican
15
19. Quantitative Benchmarks
Chipotle Mexican Grill has established itself as a well known restaurant chain
through the promotion of their healthy yet filling food. However, awareness is
minimal where Chipotle has yet to be established due to the fact that Chipotle is still
a growing chain. Loyal customers to Chipotle restaurants who frequent on a regular
basis are often the major driving force for sales at each location. Therefore, our
objectives are to increase sales by 4% and to build awareness among Chipotle’s new
and upcoming markets.
16
20. Time Frame
Bright Ideas Inc. has decided that this campaign should run between the
months of April and September. The reasoning behind this is that during these
warmer months people spend more time outside and are usually on the go. They like
to enjoy the weather and their free time without the burden of cooking or taking too
much time out of their daily lives to eat. In addition to this, summer weather brings
out more health conscious behavior and therefore Chipotle’s menu selections will be
top of mind among customers.
17
21. Budgeting Method and Amount
Bright Ideas Inc. is using the percentage of sales method in order to determine
our advertising budget. According to last years sales, our estimated budget for this
campaign is 29 million dollars.
Radio
Contingency
Magazines
Transit
Cable TV
Websites
Magazines
Cable TV
Websites
Transit
Radio
Contingency
18
22. Target Market
Chipotle caters to a great variety of people. Our specific target market includes
men and women between the ages of 25-34 who are college educated and who work
in urban areas. Some have just entered their career paths, while others have become
established in their field. They tend to be single and lead fast-paced lives. Our target
market is looking for convenient food that is a healthy alternative to typical fast food
choices.
19
23. Campaign Strategy
Our campaign is designed to increase awareness of Chipotle Mexican Grill.
Based on the statistic that 55% of Chipotle customers return at least four times
within the month, we are aiming towards attracting new customers, who we hope will
then become repeat customers. We are trying to appeal to our target market’s needs
for quality and convenience. Chipotle is a healthy alternative to fast food. Chipotle
believes that you do not have to sacrifice quality for speed. This idea will be present
in our advertisements in each media outlet; print, television, radio, internet, and
nontraditional outlets.
20
24. Creative Objectives and Strategies
Copy Objectives:
1. To increase awareness of Chipotle Mexican Grill
2. To promote Chipotle’s quality food
3. To emphasize convenience of fast casual dining
21
25. Copy Strategy
Our goal is to create awareness and increase sales by promoting Chipotle’s
quality and convenient food through our chosen media outlets. To achieve this goal
we will promote a consistent message throughout our campaign. Our slogan,
“Chipotle: Quick Quality Cuisine,” will appear in all of our advertisements. We plan
on using humor and slice of life advertisements. We want our customers to be able
to relate to the situation that appears in the advertisements.
22
29. Radio Spot
Tip Top in a Tick Tock 30 sec Radio Spot
TOM: Tip top in a tick tock, tip top in a tick tock, tip top in a tick tock…
BOB: Hey Tom. What are you doing?
TOM: …tip top in a tick tock, tip top in a tick tock…
BOB: Marie, what’s up with Tom?
MARIE: Oh Tom and I just had Chipotle for lunch again.
BOB: Chipotle?
MARIE: Ya know, Chipotle Mexican Grill where you can get great quality food, fast.
BOB: Oh I get it, top notch food in a second, but that’s kind of hard to believe.
MARIE: No it’s true. They use fresh vegetables and naturally raised meats. Here, have a bite.
BOB: Tip top in a tick tock, tip top in a tick tock…
MARIE: Here we go again.
ANNOUNCER: Chipotle: Quick Quality Cuisine
26
30. Television Advertisements
Television Spot: 30 sec. “Getting to the Top”
SFX: Ding
SFX: Doors Open
SFX: Ding
SFX: Doors Open
SFX: Doors Close
SFX: Ding
SFX: Doors Open
27
SFX: Doors Close
SFX: Doors Close
SFX: Ding
SFX: Doors Open
SFX: Doors Close
31. TV ad continued
ANNOUNCER: Taking too long to get
to the top?
ANNOUNCER: Try Chipotle’s top
notch food.
ANNOUNCER: Chipotle, quick, quality,
cuisine.
28
34. Media Plan
Media Objectives:
Target Market:
The target audience for Chipotle Mexican Grill consists of men and
women between the ages of 25-34. The primary characteristics of this market are that
they are college educated and demographically based in urban areas. They are
single, busy professionals who are on the hunt for healthy foods to support their
active lifestyle. With diversified offerings of organically grown ingredients at
reasonable prices, Chipotle has something to offer everyone.
Geographic Scope and Placement:
Our campaign will be nationally based with advertisements placed in
popular magazines, cable television networks, internet sites and radio stations that
cater to our target market. We will also take advantage of our large urban areas that
house Chipotle restaurants by placing nontraditional advertising on buses and/or
subways in the most popular cities of New York, San Francisco, Denver, and the
newest market, Boston.
31
35. Media Plan continued
Media Objectives continued:
Message Weight:
While the campaign will be nationwide, Chipotle has established a strong
home basis in Colorado with growth across the Midwest. They are also looking to
expand across the northeastern seaboard. With this in mind, our advertising would
be heightened in the west and Midwest to attain awareness amongst rising
competition, and in the northeast to create awareness for the new restaurants created
this year.
32
36. Media Plan
Media Strategies:
Reach and Frequency:
Our media goal is to achieve an Effective Reach of 90% with a
corresponding Effective Frequency of 9.
Continuity:
Our media plan will be implemented over a 6 month period of continuous
advertising. The plan will run from April 2007 to September 2007. We feel that this
is the time in which an active lifestyle is top of mind for the consumer and one in
which Chipotle’s healthy menu items will be desired. We plan on starting our
campaign in April when warmer weather is inspiring consumers to get outside and
get in shape for the summer. Throughout the summer advertising remains high as
our target audience is outdoors and focused on staying in shape looking for healthy
entrees to cater to their busy schedules. Finally we finish out our campaign in early
fall as the weather turns colder and consumers look to staying indoors and less likely
to maintain a healthy attitude. This type of scheduling allows for awareness to grow
as continuity is built and promotes regular consumption of Chipotle’s Mexican fare.
This will also keep demand from fluctuating through the campaign in well
established areas, and give new stores a goal to create their own level of
awareness and appeal for their surrounding markets.
33
37. Media Plan continued
Media Strategies continued:
Length/Size of all Advertisements:
Chipotle’s magazine advertisements will be full page color ad. On cable
network television we will use 30-second commercials. On websites, we will place
skyscraper ads (120 by 600 pixels high). Clicking on the ad will redirect the viewer to
www.chipotle.com. We will implement a 30 second commercial on spot radio in
specific cities where Chipotle has locations. We will also make use of nontraditional
advertising by placing a banner on transit vehicles including buses and subways.
34
38. Media Plan continued
Media Choices:
Media Mix:
Bright Ideas, Inc. has chosen to place ads in magazines, cable television, online
advertising, radio, and transit advertising. We have chosen to purchase full page ads
in Self and Rolling Stone magazines to target both the female and male audiences,
respectively. Chipotle ads will be placed in 30 second commercial spots on the
Comedy Central, E! Entertainment Television, and VH1 networks. We will attract
listeners on their way to and from work or in their car on their lunch break through
radio advertising. Our target market listens largely to alternative music and thus we
support 30 second commercial advertising in this programming format.
Skyscraper ads will be placed online at websites such as ESPN.com and
MSNBC.com to attract viewers who are heavily interested in sports for an active
lifestyle and news for our largely professional market. Finally, since our market is
largely based in urban areas, we will utilize mass transit advertising. By placing large
banner ads across buses and subways in big city markets such as Denver, New York
City and Boston, Chipotle will be in the customer’s evoke set due to frequent
viewings during ideal times for food purchasing.
35
39. Media Plan continued
Media Justification:
Print:
We chose magazines that had both high index rates and high circulation with a
minimization of wasted viewers. This allows for positioning in front of current
consumers that visit Chipotle restaurants as well as those who fall into our target
market. By portraying a series of ads focused on quality service with quick delivery
we can easily appeal to fitness-seeking male and female readers by advertising in Self,
and Men’s Fitness We can appeal to trendsetting young male subscribers of Rolling
Stone magazine and In Style, a trendy magazine targeted towards women. Other
magazines that we will advertise in are People and Newsweek. These magazines reach a
large amount of consumers in the United States. Also, the pass-along rate of these
magazines is high. These magazines keep consumers up-to-date on national and
world news, as well as celebrity and health information, travel and food, and a variety
of other topics. This way we will be able to reach a wide assortment of people in our
target market, and appeal to different tastes.
36
40. Media Plan continued
Media Justification continued:
Transit:
A large portion of Chipotle restaurants are centered in metropolitan areas
capitalizing on young professionals and businesses for lunch and quick service meals.
We feel that ads across buses and/or subway cars will be seen by our target market
when traveling to and from work and during the large lunch rush. To attract the eye
of single professionals on the go we have decided to utilize our speed dating ads with
simple tag lines that are easily visible to onlookers.
Radio:
It can be difficult to reach our highly active target market throughout their busy
day without being able to reach them while they’re in transit from destinations. Thus
we chose to capitalize on the use of 30 second radio spots to keep Chipotle at top of
mind when our target market is on their way to and from work and thinking where
they might like to grab lunch or dinner at. We focus solely on alternative radio
due to the overwhelmingly high index rates for this format in our target market.
37
41. Media Plan continued
Media Justification continued:
Internet:
Healthy eating has always been an important part of the athlete’s lifestyle, and
has now more than ever become the topic for news discussion as America’s waistline
grows. Thus it is important that Chipotle position itself as a restaurant that supports
both those who live active lives and those who wish to join in the fit for a fitter
nation. We chose to take advantage of online advertising as our target market has a
very large stake in the percentage of frequent internet users. We selected ESPN.com
and MSNBC.com to reach those looking for sports and news updates that might
have little time in their day to otherwise come in contact with our other media
outlets. By placing skyscraper ads on the home page we can attract attention to our
brand name positioned right by the headline news and provide a direct link to
Chipotle’s website. Once there, they can browse around or even quickly order their
food online for pickup later in the day.
38
42. Media Plan continued
Media Justification continued:
Cable TV:
We chose to place our ads on networks with six very different audiences in order
to increase visibility. We selected Comedy Central as a prime target position for our
young adult male audience who are likely to be strong trendsetters among others in
their age group. E! Entertainment Television was our choice to focus efforts on our
adult female audience by trying to stay on top of what is popular in the world of style
and image. We feel that Chipotle is able to position itself in the eyes of these
audiences as a cool, young place to visit, that also supports athletic attitudes and a
constant on the go lifestyle. We looked to VH1 as a source that would provide a
strong gender mix and bring in the remaining members of our target audience. Our
target market is past the teenage stage in life, but also grew up with the music video.
Thus, VH1’s prime target audience of 29-44 fits perfectly within our demographic,
providing a wide range of entertainment specials coupled with an appeal to varying
music tastes on a 24 hour basis.
39
43. Media Plan continued
Media Justification continued:
Cable TV continued:
TLC is a channel that offers a variety of television shows. It is targeted towards
both women and men, with programs such as “A Wedding Story,” “Miami Ink,” and
“While You Were Out.” However, women are a much larger target market for this
channel. TLC is a channel known for “life lessons,” focusing on different
lifestyles, and how to integrate different aspects into consumers’ lives. Healthy
choices, convenience, and food are a large part of this and included in the various
programs, such as “Honey, We’re Killing the Kids.” Chipotle could easily be
incorporated into the style of the TLC channel, and be seen by many people.
40
44. Media Plan continued
Competitive Media Assessment:
Position
Media
Qdoba
Qdoba has run TV and radio
spots in large markets. While
smaller markets capitalize on
local store advertising including food sampling at community events.
Panera Bread
This counter-service operation offers
high-quality food at reasonable prices in
a comfortable atmosphere. It positions
itself as a bakery café delivering fresh
baked breads, authentic artisan-style bagels, coffee, soups, sandwiches, and salads for those on the go.
Panera Bread focuses largely on
high word of mouth to attract
customers. To get the word
out locally food samplings at
events and in-store are done.
The restaurant is also a large
contributor to local community
causes.
Subway
41
Positions itself as a fast-casual restaurant
providing accessible and affordable
Mexican fare. All entrees are made to
order, prepared fresh in front of the customer and topped with personally selected ingredients, including one of five
distinct salsas.
The world’s largest submarine franchise,
Subway is a quick service restaurant positioned to provide a healthy alternative
to traditional fast food at the same low
prices. Sandwiches are made in front of
the customer prepared as requested.
Subway has a large national
campaign involving TV and
radio spots. It also has a three
year sponsorship of little league
baseball and provides large donations to national as well as
local causes.
45. Media Budget and Allocations
Magazine
(Full Page Color)
Frequency
Circulation
Ads
Purchased
Rate
Total Cost
Self
Monthly
1,400,408
$
114,905
6
$
689,430.00
Men's Fitness
Monthly
650,017
$
49,895
6
$
299,370
Maxim
Monthly
2,503,218
$
184,440
6
$
1,106,640
In Style
Monthly
1,772,568
$
116,400
6
$
698,400
Rolling Stone
Biweekly
1,302,600
$
138,260
6
$
829,560
Newsweek
Weekly
3,117,562
$
97,945
8
$
783,560
People
Weekly
3,691,167
$
198,500
8
$
1,588,000
Total Print
Cost:
Cable Network
Primetime
(30 second spot)
Average
Cable CPM
Average Viewers
Ads
Purchased
$ 5,994,960.00
Total Cost
(100 GRPs)
Comedy Central
924,000
$
14.00
96
$
12,936.00
E! Entertainment
386,000
$
14.00
96
$
5,404.00
TLC
807,000
$
14.00
96
$
11,298.00
VH1
613,000
$
14.00
96
$
8,582.00
Total Cable TV:
Total Cost
$ 1,241,856.00
$
518,784.00
$ 1,084,608.00
$
823,872.00
$ 3,669,120.00
42
46. Media Budget continued
Website
(160x200 Skyscraper)
Size
Frequency
ESPN.com
160x200 Skyscraper
1 banner/24 weeks
MSNBC.com
160x200 Skyscraper
1 banner/24 weeks
Viewers
CPM Rate
14,900,000
$
26,755,000
11.00
$ 3,933,600.00
$
11.00
$ 7,063,320.00
Total Online:
Transit Location
New York City
Cost/Day
(100 GRPs)
Population
Total Cost
(180 days)
8,085,742
$
16,171.48
$ 2,910,867.12
Denver
557,478
$
1,114.96
$ 200,692.08
San Francisco
751,682
$
1,503.36
$ 270,605.52
Boston
581,616
$
1,163.23
$ 209,381.76
Total Transit:
43
Total Cost
$ 3,591,546.48
$10,996,920.00
47. Media Budget continued
Radio
Market
(30 sec
spot)
Population
CPM Rate
(Morn/
Afternoon)
Ads
Purchased
628,670
$8
90
$
1,266,753
$8
90
Austin
672,011
$8
Atlanta
423,019
Columbus
728,432
San Diego
CPM
Rate
(Midday)
Ads
Purchased
Cost Midday
(100 GRPs)
452,642.40
$6
90
$339,482
$ 792,124.20
$
912,062.16
$6
90
$684,047
$1,596,108.78
90
$
483,847.92
$6
90
$362,886
$ 846,733.86
$8
90
$
304,573.68
$6
90
$228,430
$ 533,003.94
$8
90
$
524,471.04
$6
90
$393,353
$ 917,824.32
Total Radio:
Baltimore
Cost Morn/
Afternoon
(100 GRPs)
$4,685,795.10
Used
$
28,938,341.58
Remaining
$
Total Cost
65,218.42
44
49. IMC Campaign
For our Integrated Marketing Communications campaign we are using a variety
of promotional tools including, sweepstakes, public relations, and coupons. The goal
of this campaign is to create awareness of Chipotle Mexican Grill by our target
market. One way to create awareness is through the use of Public Relations. Public
Relations tools that we are using include press releases and sweepstakes. Press
releases will be utilized for upcoming events or the launching of new locations and
activities, such as sweepstakes. One sweepstake that we are making available to our
customers is a t-shirt contest. This contest will be held in every Chipotle location for
a few months. All customers will have the opportunity to make a t-shirt that will
represent Chipotle for the year and be sold throughout their location and online
store. Each restaurant location will pick a winner who will compete with all of the
other finalists towards the prize. Once you become a finalist, you will win a free meal
and a trip to the showing of all of the finalists’ shirts. The overall winner throughout
the contest will host a party one night at Chipotle in which food and drinks are
included. This party will help to achieve the goal of creating awareness because the
people attending the party may have never been to a Chipotle.
46
50. IMC Continued
Another sweepstake that we are holding will be revolving around a new meal
that we are adding to the menu. This meal includes more food than the average
person could possibly eat on there own, in one sitting. This contest will always occur
because it is for the individual. Customers will be competing with themselves. A
person who chooses to order this meal will have a certain amount of time to finish it
to win the prize. Those who can finish the meal will receive their name on a bulletin
board behind the counter as well as the t-shirt with the winning design from a
previous contest. This contest will introduce a great amount of word of mouth
because someone who wins will want to tell everyone about their experience. In
addition to this, when the person wears the t-shirt, people who see him/her will
become aware of Chipotle.
A third contest will be to make your own burrito. Customers will have the
chance to make a burrito in their homes and bring it to Chipotle with a list of the
ingredients needed. Every season we will pick a winner whose burrito will be added
to the menu for that season. This burrito will be named after the winner and added
to the menus at the location where it was chosen.
47
51. IMC Continued
Chipotle restaurants will be providing businesses with lunch every Friday.
Companies put their business card in a box located at each Chipotle. On Thursday
afternoons there will be a drawing for the next day’s lunch. The business who has
won the free lunch will be notified after the drawing. Chipotle employees will bring
the lunch to the business on Friday. This will build one on one relationships with
the businesses as well as increase awareness towards Chipotle.
We will be sending direct mail to our target market located within a 20 mile
radius within each Chipotle location. The goal is to try to attract new customers
through the use of direct mail. We are sending out coupons in the shape of burritos.
The outside will look like the tin foil outer covering of the burritos. With each layer
of the burrito you open, you will be given new information. One layer will list store
locations around the state. Another layer will include a menu and prices. The final
layers will include coupons for your next purchase. We will be able to measure how
effective these direct mail pieces are by the amount of coupons we receive in the
restaurants.
During this campaign we will also have Free Standing Inserts with coupons.
These Free Standing Inserts are going to be located in the coupon books within local
Sunday newspapers. The inserts will include a picture of the burrito with two
coupons on the bottom for a customer’s next purchase.
48
52. IMC Continued
Public Relations tools as well as direct mail can help us to achieve our goal of
creating awareness. Once we have created awareness and new customers we will need
to keep these customers coming back. This is why we have decided to use punch
cards for lunches at Chipotle. These cards will be credit card size so that they fit
perfectly in your wallet. The card will include Chipotle’s logo with a little detail of
store locations in the given area and the hours of these locations as well as
information leading a customer to our website. These cards will be punched during
the lunch hours. Once you have filled in the card, you will receive a new one as well
as a free burrito.
With this IMC campaign we hope to reach an awareness among our target
audience for Chipotle Mexican Grill. We can evaluate the progression of this
campaign with the turnout of coupons received and the people attending sweepstakes
held at Chipotle locations.
49
53. Evaluation
Criteria:
Our campaign for Chipotle Mexican Grill strives to increase sales by 4% and
create awareness among our target market of single males and females between the
ages of 25 to 34. The Chipotle campaign will run from April 2007 to September
2007. If these objectives are achieved, then our campaign will be considered a
success.
Methods:
The effectiveness of our campaign will be measured by:
•
•
•
•
Increase in total sales
Redemption rate on direct mail coupons as well as coupons in free standing inserts
Focus groups will be used before, during and after the campaign
Online surveys
50
54. Evaluation continued
Consequences and Contingencies:
Based on Chipotle’s current advertising, their main customers respond to an
alternative, unique, and tongue-in-cheek humor. Since our campaign aims to appeal
to a broader audience, we fear that Chipotle’s loyal customers may feel that Chipotle
has lost its originality. Our intention is not to alienate these customers, but the
business needs to continue to appeal to new customers in order to thrive. By testing
throughout the campaign, we will be able to gauge the effectiveness early in the
campaign and adjust accordingly for more desired results.
51
55. Marketing Recommendations
We at Bright Ideas, Inc believe that to better serve Chipotle’s customers it would
be in their best interest to alter the company website. The website is difficult to
navigate for those who are not computer savvy. We also feel that each Chipotle
location should have a suggestion box if they do not already have one. These
suggestions can help Chipotle increase overall customer satisfaction.
52
56. Sources
Boston Market. 22 March 2006. <www.bostonmarket.com>.
Burger King. 22 March 2006. <www.bk.com>.
Chili’s. 22 March 2006. <www.chilis.com>.
Chipotle. 22 March 2006. <www.chipotle.com>.
Manchester People. The Value of Business Tourism. 2005. Manchester City Council. 21
April. <www.manchester.gov.uk/ people/issue22/business.htm>.
Media Life. 15 April 2006. <www.medialifemagazine.com>.
MRI+. 23 March 2006. <www.mriplus.com>.
Panera Bread. 22 March 2006. <www.panerabread.com>.
Qdoba Mexican Grill. 22 March 2006. <www.qdoba.com>.
SRDS. 23 March 2006. <www.srds.com>.
Subway. 22 March 2006. <www.subway.com>.
Taco Bell. 22 March 2006. <www.tacobell.com>.
TGI Friday’s. 22 March 2006. <www.tgifridays.com>.
53
U.S. Census Bureau. State and County QuickFacts. 27 March 2006.
< http://quickfacts.census.gov/qfd/states/06/06037.html>.