chipotle pitch brief
TRANSCRIPT
NEW BUSINESS PITCH
Food With Integrity
NAME BRAND PITCH TYPE
Advertising
MARKET DATE
October 10 , 2016
The Data You Need to Win This Pitch
DESCRIPTION“We are working with Pile & Company as we explore the possibility of a new agency to help us with some marketing programs we are
planning for 2017,” Chipotle communications director Chris Arnold told Adweek. “We are always evaluating our roster of agency partners based on current and anticipated needs.”
Chipotle has worked with Austin’s GSD&M since 2014, and the chain named Carrot Creative as its social media agency of record last year. Earlier this month, the company released a digital-only campaign, created by GSD&M with animation by HouseSpecial, in a bid to win back
loyal customers by focusing on its original selling point: quality ingredients.
Chipotle goes into review
thU.S.
Client Profile / Market
Chipotle Mexican Grill, Inc. develops and operates fast-casual, fresh Mexican food restaurants throughout the United States. The company's Chipotle Mexican Grill restaurants serve a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads, made using fresh ingredients. The company uses various herbs, spices and seasonings to prepare its meats and vegetables. It also provides various extras, such as guacamole, salsas and tortilla chips seasoned with fresh lime and kosher salt. In addition to sodas, fruit drinks and organic milk, most of its restaurants also offer a selection of beer and margaritas. The company's food is prepared from scratch, with the majority prepared in its restaurants while some is prepared with the same fresh ingredients in commissaries. Chipotle Mexican Grill, Inc. was founded in 1993.
COMPANY BACKGROUND
MAIN COMPETITORS
2014 Sales (mil)
2015 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
4,500.00
59,330
-
-
-
9%
FINANCIAL OVERVIEW- Source: AccessConfidential.com -
Mr. Ryan MurrinDirector, Advertising, Research and Direct
Ms. Kirsten Helgeland
Director, Marketing Operations
DECISION MAKERS by
U.S. Fast Food Market
2015 U.S. REVENUE
$225b- IBISWorld -
ANNUAL GROWTH 10-15
2.5%- IBISWorld -
200,000FAST FOOD IN THE U.S.
50% 50%
OTHERS QSR
Quick Service Restaurants (Fast Foods + Fast Casual)Account for half of sales in the entire restaurant sector
Americans & Fast Food
- CDC’s National Center for Health Statistics -
of children and adolescents, aged 2-19, consume fast food on any given day
$625Annual per capita expenditure
on Fast Food
50 MlnAmericans eat at one
fast food restaurant everyday
- FranchiseHelp.com -
- FranchiseHelp.com -
8%
FAST CASUAL RESTAURANTS MARKET IN US BY PRODUCT 2015
North American food
Italian food
Mexican food
Other food and beverages
56.37%
15.87%
15.19%
12.57%
- Source: Technavio -
A Burrito-Loving Public
11%Growth CAGR by 2020
- Technavio -
$30BMexican food market value
GEN X CONSUMERSSurveyed by Harris Poll admitted to eat
burritos at least once a week.
- FranchiseHelp.com -
- Harris Poll -
90%MILLENNIALS
Surveyed by Harris Poll admitted to enjoy an average of 2-3 burritos a week.
- Harris Poll -
72%
Fast Food industry in numbersStats: Chipotle Mexican Grill
$4,500
2015 Media spending $20.5 Million
- Source: AccessConfidential.com -
Revenues 2015(millions)
% change
9%
CHIPOTLE OPERATIONS
5 unitsIn France
1 unitIn Germany
7 unitsIn England
14 unitsIn Canada
2,078 unitsIn the U.S.
- QSR Magazine -
Rank 2014 U.S. Sales MLNName
2 $ 4,049.1Chipotle
1 $ 8,200.0Taco Bell
3 $ 669.4Qdoba
4 $ 656.1Del Taco
5 $ 571.3Moe’s Southwest Grill
-35%Chipotle’s share price
decline between October ‘15 and January ‘16
Fast Food industry in numbersChipotle’s Health Issues in 2015
In October 2015, Chipotle faced significant food
safety issues in Oregon and Washington, when
public health officials in both states determined that multiple illnesses
from the E. coli bacterium were likely linked to eating
at Chipotle restaurants.
In December 2015, more than 120 Boston College
students reported becoming ill after eating
at one Chipotle Restaurant. Health
officials confirmed the presence of Norovirus among the students
fallen ill.
Between July and October 2015, there have been a total of five E. coli outbreaks linked to Chipotle, including a
little-reported case of E. coli that sickened five people in Seattle, unrelated to the larger outbreak that began in
October, as well as a norovirus case in Southern California, and a salmonella outbreak in Minnesota.
-36%Same-store sales growth
in January ‘16
Fast Food industry in numbersRebuilding their Reputation
Enhanced Food Safety MeasuresHERE’S HOW WE TOMATOES ARE SAFE AT THE CENTRAL KITCHEN
1.Tomatoes are
washed
2.Then diced
3.And then rinsed
under strict supervision
4.Next, hundreds of
individual pieces of tomatoes are tested
5.If any fail the enter batch is rejected
6.If all pass, the
tomatoes are used at the restaurant
Chipotle introduced new restaurant practices and implementednew measures to ensure their promise of ‘Food with Integrity’:
The fresh produce and meat go through high-resolution DNA-based testing to identify harmful bacteria.
The company has implemented new food handling and preparation processes, which include blanching
of certain ingredients and the preparation of tomatoes, lettuce, and bell peppers in central
kitchens. The restaurants will marinate chicken, steak, and other ingredients to enhance food safety.
Enhanced food safety training program for the crew.
The company has also appointed a third party to audit its food safety procedures.
Chipotle set a budget of
$50MFor marketing initiatives in 1Q16
Chipotle launched a food safety website on February 8, 2016, which outlines the company’s enhanced food safety procedures.
On Feb. 8 the restaurants were closed for a company-wide meeting. Consumers who texted “raincheck” have received a coupon for a free burrito.
That offer had a much higher redemption rate than planned, with 5.3 million requesting the offer and a 67% redemption rate, while Chipotle had expected about 2.5 million people to seek it out
To win, customers need to play an online "Guac Hunter" game in which one is supposed to quickly spot several differences between very similar pictures.
The game aimed to appeal to those who have enjoyed Chipotle’s guacamole in the past.
Rebuilding the Brand Image
Chipotle’s New Initiatives80%
Chipotle rolled out its first rewards program in July as one of several efforts to win back
customers.Each month, customers were urged to reach the "Mild," "Medium," or "Hot" levels by purchasing frequent meals. At each level, Chiptopia card
holders received a free meal. For die-hard Chipotle fans, reaching the same level for three
consecutive months—July, August and September—meant unlocking the biggest prize.
The chain doled out about $20 million worth of free food and announced that 85,000 Chiptopia
members qualified for its largest prize—meal catering for 10, valued at about $240.
Chipotle is building out second "make-lines" in all of its restaurants, which are teams of employees in the back of its restaurants that fulfill catering and online food orders. The second make-lines are expected to speed up online ordering. They will also be responsible for fulfilling orders from in-store digital tablets, which the company is currently testing. The tablets allow customers to order and pay for their food without interacting with an employee.
The company added chorizo, a chicken and pork sausage blend, at the beginning of October — marking its second major addition to the menu in two decades aside from tofu sofritas in 2014.
Executives said the company plans to keep testing and adding new menu items on a regular basis.
THE FIRST TV AD SINCE 2012
Chipotle has begun running a TV commercial in test markets of
Austin, Texas, Minneapolis and San Diego.
Now it is considering a national TV buy after years of downplaying the
effectiveness of TV.
Chipotle would include TV as part of larger campaigns, along with
plans including updated technology and new restaurant designs meant
to improve the customer experience.
BusinessInsider.com
FAST MEXICANFOOD
CONSUMERS
QUICK DEFINITION:These Fast Mexican Food Consumers Buy
From Chipotle’s Competitors Fast Mexican food consumers are interested in at least one
of the top four fast food Mexican chains by sales. We’ve excluded Chipotle in order to better highlight the
differences between Chipotle’s current fans and the consumers buying the competition.
47%
10%
20%
0
30%
13-17
• • •
• • •
13-17 13-17 13-17 13-17 13-17
52%MALE
54%SINGLE
70%WITHOUT CHILDREN
FOODIES
182.5
GAMERS
142.6
NERDS
164.6
MOTORLOVERS
126.2
57%
Fast Food Mexican Consumer
Compare the Fast Mexican Food ConsumerDemographic with Chipotle’s Audience
Chipotle audience overlaps with our
Fast Mexican Food Consumers
demographic by 57% in interests, including:
Food, Games, Technology and
Motors
FAST MEXICAN FOOD CONSUMERS:FOOD & DRINK
Chipotle’s audience shares the same attitude toward
food.
They are foodies (177.5), have an extremely high
interest in snacks (Self-Conscious Snackers
187.2) and Love Food To Go (157.6).
SELF-CONSCIOUS SNACKERS194.6
FOOD-TO-GO188.2
TOP FOOD BRANDS
KNOWMORESTRIDE GUMTRIDENTLIFE SAVERS
GUMMIES
CHIPOTLE’s AUDIENCE CROSSOVERS
FOODIES
182.5
CLICK HERE TO SEE TOP BEVERAGE BRANDS
FAST MEXICAN FOOD CONSUMERS:GAMES
Chipotle’s audience is slightly under indexing as
Gamers (87.9).
They are somewhat interested in video game
magazines (105.9) but they enjoy playing similar video games; indeed they over
index on Beat Em All, Shooter and Racing games.
CLICK HERE TO SEE THEIR FAVORITE PLATFORMS
VIDEO GAME MAGAZINES138.1
POPULARITY
CHIPOTLE’s AUDIENCE CROSSOVERS
GAMERS142.6POPULARITY
CLICK HERE TO SEE THEIR FAVORITE VIDEO GAMES
Beat’em All Games
Shooter Games
Racing & Simulation
140 145 150 155 160
Chipotle’s audience isn’t ‘nerd’ as much as other
Mexican Food Consumers (95).
However they are passionate about new technologies,
overperforming as tech-splorers (146.9) and are
interested in Computer Hardware (139.5)
FAST MEXICAN FOOD CONSUMERS:TECHNOLOGY
NERDS
164.6 POPULARITY
TECH-SPLORERS
128.6 POPULARITY
TOP HARDWARE
KNOWMORE
EVILCONTROLLERS
COMPUTER HARDWARE
139.5 POPULARITY
CHIPOTLE’s AUDIENCE CROSSOVERS
Motor vehicles are not very interesting to Chipotle’s
consumers (87.)
But, they do slightly over index as car experts (105).
Motorcycles collect few popularity points (68.3)
FAST MEXICAN FOOD CONSUMERS:MOTORS
MOTOR LOVERS
126.2
CAREXPERTS
138.0
• • • • • •
CLICK HERE TO SEE TOP CAR BRANDS AND MODELS
TOP MOTORCYCLE BRANDS
KNOW MOREKTM
CHIPOTLE’s AUDIENCE CROSSOVERS
MOTORCYCLE LOVERS
121.7
CONSUMER INSIGHTS SUITE
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