Chipotle Digital Marketing Presentation

Digital Marketing:

A presentation by Linda Moreno, Sujun Liu, Yao Xie, Julian Gross, and Jasmine Jones

$225B Market Competition Level

Barriers to Entry

Market Segmentation

42% Burgers 14%

Sandwiches 10% Chicken

10% Asian 9%

Pizza 8%

Mexican 7% Other

Industry Competitors

70% is the total expenditure on food eaten outside the home ( U.S. Census

Bureau).

Demographic trends show baby boomers and health conscious consumers have a direct effect on the fast-food industry.

Background

●  Food with Integrity

●  Focused on sustainability

●  “Food served fast didn’t have to be fast food”

History and Today

Challenge: Chipotle v. E Coli

●  58 people infected

●  21 hospitalized

●  1,900 store closures

●  9 lawsuits

●  30% drop in sales

How does Chipotle use Digital Marketing?

Website:

Clean, fresh, and mobile friendly

Mobile: Chipotle App

SEO: Mexican Food vs. Mexican Grill

Integrated Social Media: Fun, creative, image focused

@ChipotleSnaps

Email Marketing: Focused on promotions FREE CHIPS AND GUAC. THIS IS NOT A GAME. ACTUALLY IT SORT OF IS.

Content Marketing & Brand Building

SMS ➔  Sweepstakes

Cultivate Festival

➔  Promotions/Events Youth Soccer BOGO

➔  Giveaways Guac Hunter = Free Guac

Video Marketing Simple, straightforward, and informative videos.

Tip Show how your solution helps the person in the story reach his or her goals.

Overall Transparent communications Food with integrity Mouth-watering imagery >> (sorry y’all)

SWOT Analysis Strengths

●  Food made with ingredients from sustainable sources (first non GMO fast food chain)

●  Marketing programs: Online promotions & Offline brand experiences

●  Strong engagement with customers

●  Unique SEO: Mexican Grill

Weaknesses

●  Higher food cost

●  Shortages of naturally-raised meats

●  Greater risk in food-borne illness

●  Ingredients supplied by third-party distributors

●  Open question on whether hidden ingredients such as oils and starches are GMO free

●  Slow crisis communication response

Opportunities

●  Domestic expansion

●  International expansion

●  Growing foodservice market

●  New Product Categories

Threats

●  E. Coli Outbreak (Nov. 2015 )

●  Intense competition

●  Increasing labor cost

●  Protest from agriculture industry

Business & Communication

“Our advertising and promotional programs, in-store communications, and other design elements all help to communicate something about what differentiates Chipotle from typical fast food. ” —— Chipotle Annual Report 2015

Facebook in 2011

Consistent Growth

●  Facebook: April 2004 ●  Chipotle App: August

2009 ●  Twitter: May 2010 ●  YouTube: Feb 2011 ●  Instagram: 2013 ●  Cultivate Festival

App: April 2015 ●  Snapchat: 2015

Increasing Spend on Ads & Marketing

36% In January 2016 (Due To The Food Safety Investigation)

Before the Guac Hunter Game Launched

Plus Brands with reputation could be hit worse by negative publicity due to failing customers.

Guac Hunter *5.3 million requesting the offer *67% redemption rate

Guac Hunter Web Traffic

Program

EXECUTION

Target Audiences

➔  Existing customers

➔  Millennials/18-34

➔  Organic consumers

Key Messages

➔  Food with Integrity

➔  Commitment to Sustainability

Tactics ➔  Tactic 1

Create a separate webpage to address updates on e. Coli

➔  Tactic 2 Include updates and incentives within their mobile app

➔  Tactic 3 Feature promotions on snapchat/email

➔  Tactic 4 Cross promote website information on the app

Strategies ➔  Strategy 1

Address e. Coli concerns by maintaining the transparent messaging that aligns with the Chipotle brand

➔  Strategy 2

Improve upon direct and mobile marketing

➔  Strategy 3

Maintain strong social media presence

Evaluation Success Metrics Tip

Show how your solution helps the person in the story reach his or her goals.

Key Performance Indicators (KPIs)

➔  Measuring Chipotle’s performance against objectives/goals

Create a Separate Webpage for E. Coli

Page tracking

❏  Bounce rate

❏  Average session duration

Traffic Sources

❏  Organic search (Google, Yahoo)

❏  Paid search

❏  Referral

❏  Social (Twitter, Facebook)

❏  Direct traffic

Audience

❏  New & returning visitors (sessions)

❏  Unique visitors (users)

Social Media ➔  Facebook

•  Page likes •  Comments •  Shares •  Click through •  Reach

➔  Twitter

•  Favorites •  Retweets •  Mentions •  Click through

➔  Snapchat

•  Views (the purple eye) •  Screenshots (the green

arrows) •  Total story completion •  Completion rate

Mobile Marketing ❏  Number of times the app was

accessed during first day/week

❏  Session time (time spent in-app)

❏  Number of screens/pages accessed during in-app visit

❏  Permission granted to the app

Thanks guys!

Q&A