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Fact Finding Jennifer Kim February 27, 2012 ADV450 Assignment 1 FACT FINDING CHIPOTLE CHAMPIONS Chipotle’s consumers are upper middle class adults ages 18-24 who are educated, environmentally cautious, socially focused, tech savvy, image conscious, and embrace an active lifestyle. This target market is also called the millennials. (slideshare.net) Values: Millennials value family over work and desire freshness and consumer choice. They seek out challenges and are not afraid to question authority. They like to make their own discoveries. (www.about.com) Millennials are also self- confident, team spirited, and politically liberal. They have the tendency to trust friends and celebrity endorsements. Millennials believe leisure and work should be fulfilling, community is a team effort, and that support and relationships are key to a person’s well being. (www.packagedfacts.) Self-esteem: Millennials seek input and affirmation from others, and crave attention in the form of feedback and guidance. They desire to be included and involved. (www.about.com) They also are digitally dependent for their sense of self. (www.packagedfacts.com) Consumer: Millennials blur the boundary of retail and life. They desire luxury products and have the inability to save money. They prefer organic food, and embrace healthiness. (www.packagedfacts.com) Jennifer Kim (jkim156) 2 “CHIPOTLE” Media: Millennials resist reading and increasingly keep the television off. They are known as the “unreachables.” They care about building trust with a brand and less about reaching masses, but building a community. They care about the “Pavlovian Connection” which is a connection between the brand and the exhilarating experience.” (www.usatoday.com) Chipotle cannot just be a physical place to grab food; it must be a whole different dining experience, a highlight of the day. (introspection) Why they are targeted: Millennials are not only targeted because they are the highest consumers of Chipotle, but because they embody the same values Chipotle does. If they have the same values, then they will be more able to see Chipotle as set apart from Taco Bell and Qdoba. (data above and introspection) CHIPOTLE’S COMPETITORS According to interviews, Chipotle is grouped together with Taco Bell and Qdoba, and considered to be America’s fast-food take on Mexican food. (introspection) Qdoba: Qdoba has a broader menu than Chipotle but has less definition in its menu items. The flavors are jarred, gritty, and bland, but it is noticeable that Qdoba fans enjoy bland food and think Chipotle is too spicy. In another comparison, Qdoba is unreliable because many stores are franchised so workers are not always qualified, and standards are not the same. (www.grubgrade.com) However, it has grown 15% in the last two years with its “Passion for Ingredients” statement. (www.salon.com) Jennifer Kim (jkim156) 3 “CHIPOTLE” Taco Bell: One year ago, Taco Bell had a lawsuit questioning the quality of its beef and started a “Thank You for Suing Us” campaign. People were impressed because of its “saucy” response and its recognition that that was the exact attitude Taco Bell’s consumers had. At the same time of the lawsuit, Taco Bell had a promotion where if one “liked” the Facebook page, a coupon for a free taco was given, thanking supporters. This rewarded supportive customers and generated positive brand awareness midst of the terrible accusations. (www.salon.com) When interviewing some people at Chipotle, they said that they eat Taco Bell on the go. They just grab something cheap and delicious and eat it in their car on the way to go somewhere. Taco Bell is for “on the go.” (Chipotle customers) BRAND NOTES In order to engage millennials with advertising, a brand must be a part of life and its changing landmarks, it must give consumers confidence, tap into social networks, allow consumers to express themselves, encourage them to explore, recognize the value of money, and create a “third place” where millennials will want to be seen. (www.adshell.com) CHIPOTLE “It’s not just a burrito. It’s a foil-wrapped, hand-crafted, local farm supporting, food culture changing cylinder of deliciousness.” Chipotle stands on having food with integrity; food that does not have any hormones or antibiotics. They believe in respecting the animals, farmers, and the environment. Food is all local, organic, and Jennifer Kim (jkim156) 4 “CHIPOTLE” family farmed. Also, Chipotle does not have any franchised locations so that expectations and standards are always at the bar. (www.chipotle.com) CURRENT IMAGE According to www.yelp.com, Chipotle has the best guacamole, delicious brown rice, it is reliable, serves beer, and is generous about portions. Unfortunately, Chipotle always has long lines, so sometimes they just go to Qdoba instead. PEOPLE SAY: (Answers are given by people in the target demographic found in the Union and at Chipotle) People believe Chipotle stands for… quality over quantity. Chipotle seems to be taking a “Whole Foods” approach. It is prestigious and cool. It is organic, stuffed, filling, and fresh. People believe Taco Bell stands for… money, profit, and commercial. Taco bell is greasy, cheesy. There is a variety of food. It is the ultimate late night snack, the fourth meal. People believe Qdoba stands for… a knock-off of Chipotle. There is nothing unique about it, it just in the middle of Taco Bell and Chipotle. It’s fast, massive, and convenient. While people had better things to say about Chipotle, many did not choose Chipotle over the other two as a place to eat because… It’s always crowded with long lines and there’s no drive-thru. You can never just go in and out. Jennifer Kim (jkim156) 5 “CHIPOTLE” INDUSTRY Industry experts note that the Mexican fast-food market, which the market Chipotle would be included in, is estimated at about $2.3 billion a year and continues to grow. More and more chains continue to grow, and Mexican fast food has recently become a trend, mainstream. So, this means that in order to satisfy this big, national appetite, restaurants must dramatically increase advertising and promotional efforts.(www.latimes.com) It is said that in 2010, the industry spend 4.2 billion dollars in marketing alone, and majority of that money is focusing on cultivating new generations of customers: kids. (www.marketresearch.com) It’s interesting to note that while others rely on advertising, meanwhile, Chipotle starts its own “anti-advertising campaign.” (google images) Jennifer Kim (jkim156) 6 “CHIPOTLE” SOURCES www.adshell.com www.yelp.com www.chipotle.com www.grubgrade.com www.salon.com www.slideshare.net www.about.com www.usatoday.com www.packagedfacts.com http://articles.latimes.com/1988-02-03/business/fi-27060_1_mexican-fast-food www.marketresearch.com Jennifer Kim (jkim156) 7 “CHIPOTLE” KEY INSIGHT Chipotle is seen as just another Mexican fast-food restaurant, so it becomes easily substituted with places like Qdoba and Taco Bell. Jennifer Kim (jkim156) 8 “CHIPOTLE” CREATIVE STRATEGY Who is our target market? Chipotle’s highest consumers are millennials, but this campaign is geared towards a distinct group within the millennials: Champions. Champions are those who go the extra mile for better quality food, possess an active lifestyle, and aren’t afraid of a challenge. Where are we now in the mind of this person? Chipotle as a brand is known to be environmentally friendly and described as using a “Whole Foods” approach. Its food is considered filling, high quality, and reliable. However, attached to the name “Chipotle” is Taco Bell and Qdoba, which consumers tend to go to as substitutes because of their lower price point, and ability to quickly get their food using drive-thru. Where is our competition in the mind of this person? Chipotle’s competitors are Taco Bell and Qdoba. Taco Bell is known to be cheap and Qdoba is known to be a knock-off, yet their sales are increasing each year because they all have similar menu items, and make consumers’ lives easier with lower prices and more variety. Where would we like to be in the mind of this person? Chipotle is a brand that represents the same values millennials have and provides a place to foster those values. Values include a healthy lifestyle, fresh foods, and integrity. To completely set it apart from fast food so it cannot be replaced. What is the consumer promise, the “big idea”? Chipotle provides a place for millennials to foster their values. When they enter Chipotle, the “champion” in them manifests. What is the supporting evidence? - Millennials value healthiness. - Millennials value satisfaction over money and time. - Chipotle does not have any franchised locations so standards are always at bar. - Chipotle stands on having food with integrity, respecting animals and the environment and provides only local, fresh, and family-farmed foods. - Chipotle is the third cool place to be seen What is the tone for the advertising? Edgy. Confident. Jennifer Kim (jkim156) 9 “CHIPOTLE” MANIFESTO While Chipotle has never discriminated in the past, there comes a time for firsts. There are two types of people starting to emerge in this world: Champions, and well, those who are not Champions. Sometimes it’s hard for champions to stick to their values in a world where short cuts are rewarded and people use each other like ladders. That’s why there’s Chipotle. At Chipotle, food made out of real, simple ingredients is provided and the desire to enjoy that meal with friends and families is embraced- all things Champions value. CHIPOTLE: FOR CHAMPIONS, ONLY. Champions are fearless. They do not run away from a challenge, they accept the stuffed burrito. Bites must be strategically placed so the whole thing doesn’t topple over your lap; it takes certain finesse.
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