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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
• 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