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The issue of Customer Relationship Management
Chipotle mission, objectives, and strategies
The issue of Customer Relationship Management
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5. Conduct an analysis of the company’s sales efforts, especially regarding the cultivation of customer relationships.
Even though Chipotle operates in the fast-food industry that can only provide limited services, the company wants to change people’s way of thinking about fast foods and makes the order served fast but without having the “Fast food” experience. Chipotle in recent years puts a huge emphasis on educating the customers about locally produced food, naturally raised animal meat, and sustainable farming. Aligning with the core mission of “Food with integrity”, Chipotle has launched a series of marketing campaign, including advertising, websites, free promotions and theme activities.
While other fast food
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companies spent millions on traditional national campaigns, Chipotle was thinking to channel more lively and engaging content in their advertisements. The first television commercial of Chipotle was presented on the Grammy. It was a 2 minute animated story about a farmer who finally convinced by his conscience after his business grow to a industry plant and decides go back to a sustainable and humane farm. During our group’s visiting to the local Chipotle store, I also saw a lot of posters about the Chipotle’s ingredients. For example, there was one mentioned that Chipotle offered not only a burrito, but its good service, local-sourced foods and the cultivation efforts on food culture. Although I did not eat Chipotle that often, those posters drive my attention on the freshness of the food intentionally. Also, instead of selling packaging to advertisers, Chipotle used their packaging to entertain their customers by launching the “Cultivating Thought” author series on the cups and bags. The series contained thought-provoking essays written by influential authors, actors and comedians. By doing so, the customer of Chipotle can have a break from their busy days, and enjoy a two minutes thoughtful reading that vary in topics, perspectives and focuses. Besides the creative advertisements, Chipotle also offers variety types of online and offline promotions that continuing educating people about food. Recently, Chipotle launched “Friend or Faux”, which is an online game that allowed customers to learn the difference between Chipotle’s ingredients and other fast food’s ingredients. This integrated marketing campaign creates interactive digital experience for customers by asking the player to decide whether some ingredients are included in Chipotle’s food or the food from others. With the high involvement games, Chipotle makes it clear to customers that where the food is from and how it is prepared. Chipotle hosted various types of activities that promote discounted or free burritos. For example, Chipotle offered free dinners for two and burritos for the best related to Haiku on the Facebook. Also, customers who dressed in costume on Halloween can score a burrito for $3 only. Furthermore, Chipotle hosted yearly “Chipotle Cultivate Music Festival” in Chicago, which is an integration of free food, musicians, star chefs and local farmers. Customer can have a chance to not only enjoy the new sample dishes of Chipotle, live music show, cooking demonstrations and sustainable farming classes. 6. Provide a description of the company’s promotional efforts aligned with one‐to‐one marketing and socially‐networked marketing. This section should tie directly with the company’s CRM efforts. Tapping into the social media can help Chipotle distinguish itself from the highly competitive fast casual industry.
Chipotle channeled a one-on-one engagement model for social media platforms. Chipotle formed a three-person team that entirely devoted to post and respond on the official social media accounts like Twitter and Facebook. Each team member would sign their own names at the end of each post, and they can also repost or respond to the comments in a personal manner. Customers are treated as individuals, and they would receive messages based on their own situations, such as “How’s school going?” and “Where do you go during the winter break”. This strategy allowed Chipotle to know and interact with the customer in particular, providing a unique customer experience for every customer. Chipotle loves to communicate with customers, 90% of the company’s activities are responding to customers through @-mention on Twitter (klamn, 2012). While other companies spent millions on traditional advertising, Chipotle puts small budgets in branding through social media. With 2 million followers, the company responded 95.28% of Facebook posts with an average responding time of 65 minutes, which was much more efficient than other fast food restaurants. (Ciotti,
2014).
External environment analysis plays an important role in shaping the overall industry. It helps keep the business ahead of its competitors and providing opportunities for implementing innovative ideas. Based on demographic, Chipotle focuses majority of its sales on “Millennials”, who are between the ages 18 and 24. “Serving high quality food with reasonable prices” and the ability to customize your meal with a variety of different options in a fast paced environment is something many consumers are attracted to especially the younger generation. Chipotle’s first restaurant was established in Colorado but now they have restaurants all throughout the United States, Canada, United Kingdom, and so much more, located primarily in urban areas.
The company is driven by a strong set of values, even if some of those decisions increase its costs internally. This is especially the case with the sourcing of its ingredients and meats. In fact, the high-quality ingredients and advanced cooking methods used by Chipotle are second to no other fast-food chain. Among recent developments, the leader in fast-casual dining concepts plans to become absolutely GMO-free by the end of 2014. Although the aim is not new, it shows Chipotle’s commitment to bring fresh ingredients to the table. Besides offering high-quality meals to its customers, the portions are generously sized and the value is unmatched. There are very few places that can fill you up for less that $10 with quality food, and not junk. The triad of fresh, pure ingredients, cutting-edge cooking methods, and tremendous portions gives Chipotle a mouthwatering appeal.
1.1 Brief History Chipotle Mexican Grill was founded in Denver, Colorado in 1993. In 1998, McDonald’s became the majority shareholder; however, in 2006, McDonald’s divested its controlling interest. Chipotle became a public company listed on the New York Stock Exchange in 2006. It currently has 1,083 locations across the United States and Canada. In May 2010, Chipotle expanded into Europe, opening their first restaurant in the United Kingdom.
In recent years, it is not even necessary to turn on the news to hear about the bad reputation farming has been getting in recent years. What with the media focusing on things like drugs in animals and Pink Slime, or Lean Finely Textured Beef, it is a wonder that people are eating “non-organic” foods. However, many pro-farming organizations having been trying to fight back against these slanders. Still, the battle is not without heavy competition, and a good portion of it comes from Chipotle, a fast food Mexican restaurant that claims to only use completely organic ingredients in their food. Chipotle is constantly introducing advertisements claiming to have the natural ingredients while slandering the name of farmers everywhere. Perhaps the most well-known is “The Scarecrow,” a three minute ad that features some of the most haunting images Chipotle has ever featured. While “The Scarecrow” uses tear-inducing images and the almost eerie music to entice the audience to the company’s “free-range farming” ideals, it lacks substantial logos yet, it still
Chipotle Mexican Grill is one of the most popular Mexican restaurants in the United States, which offers burritos, bowls, tacos, and salads. It is one of my favorite restaurants to visit.
Chipotle is my favorite place to eat. As I am sure it is for other people. Chipotle is a fast food Mexican grill. They are most known for how big they make your burritos. Now it is fast food but it isn’t actually fast, they’re like a restaurant but without the wait. They serve all naturally raised meat and organic beans. So there food is pretty healthy and worth eating. The employees are always nice and it just a great place to eat over all. Chipotle is a great choice for a quick fast food stop because it gives great service, atmosphere, food and value. My experience there is always a good one.
Chipotle competitive advantage or Strengths has come from the ingredients that come from sustainable sources. According to the MarketLine article about Chipotle Mexican Grill SWOT analysis "Chipotle serves food using naturally raised meat (pork, beef and chicken) and dairy cattle... in 2014 the company served over 155 million pounds of naturally raised meat." Chipotle cares for their customers because they are not giving us food that has hormones and addictive substances. Their competitive advantage has changed the company culture and mission Statement nowadays they called it now food with integrity, the idea that their food is made with the respect for the animals and the
As you know, Chipotle values our “food with integrity” promise and our customers respect that. However, the recent E Coli outbreak has caused Chipotle’s financial performance and reputation to suffer significantly and staying with our current business model is not our best option. Therefore, I recommend we rebrand and reposition Chipotle to ensure our long-term success.
When Chipotle first opened in 1993, the goal was to serve quality food fast, but not be considered “fast food.” To avoid falling under the fast food stigma, Chipotle strives to find the best ingredients with respect to animals, farmers, and the environment. In order to achieve these goals, Chipotle has created a matrix organizational structure that is divisional by location and functional by authority. Chipotle recently expanded internationally to the United Kingdom, Germany, and France, each following strict guidelines assigned by corporate employees from their headquarters in Denver, Colorado. Similarly, each location is functionally organized according to authority: regional manager, district manager, store manager, assistant manager, and
In visiting Chipotle’s website, it is adherently clear that they are trying to do a few things to overcome their recent faux pas from the past. Putting a majority of their site’s focus on their sustainability story, how they are helping the environment,
Fast food restaurants such as Burger King and McDonald’s, create advertisements where it urges people to consume their product. For example Mcdonald’s created a product where you can get two items such as a mcdouble and a medium fries for three dollars. According to “The battle against fast food begins at home”, by Daniel Weintraub, it shows how companies are intriguing their customers. “ The center blames the problem on the increasing consumption of fast food and soft drinks, larger portion sizes in restaurants and the amount of available on school campuses”(1).For the most part, the Center for Public Health believes that fast food companies are the problem for health
Chipotle Mexican Grill founder Steve Ells had a vision to “change the way people think about and eat fast food” (Gamble, Peteraf, & Thompson, Jr., 2015). He wanted to create a
Chipotle Mexican Grill has become one of the fastest growing fast casual restaurants with over 2010 locations worldwide, 45,000 employees and over 3.2 billion dollars in revenue (Cavanaugh, 2016). The company’s mission statement, “Food with Integrity” highlights the importance of using naturally-grown ingredients that are locally sourced when possible (Chipotle, 2016). Much of Chipotle’s success can be contributed to the quality of food, customer service, and the companies focus on sustainability from its food sources. Over the past 10 months, Chipotle has had a series of serious outbreaks of E. Coli, Salmonella and norovirus outbreaks at its restaurants. This has resulted in temporarily store closures; drop in sales and negative press. Chipotle
The term “fast-food” is usually distinguished by food served very quickly to a customer by drive-through or carry-out. Fast-food restaurants are highly associated with low-cost and malnutrition foods with brief consumer and employee interaction, and below average cleanliness based on restaurant health inspection reports. Chick-fil-A has changed the usual perception of fast-food restaurants. Rather than burgers and potato fries, Chick-fil-A serves chicken sandwiches and waffle fries. Chick-fil-A also shows their appreciation for employee to customer relations, rather than ignoring the social aspect of serving customers when operating at a fast pace. Chick-fil-A’s menu selection, customer interaction, and clean eating
The 2015 Chipotle’s outbreak can be avoided if the management teams take the correct measure to addressing the food safety concern when it first appeared. A business Insider reported, the restaurant has been faced with food poisoning before. In March of 2008, more than 20 people after eating Chipotle in La Mesa, California developed Hepatitis A. A month later; another 500 people were sick after eating at the restaurant. The possible cause linked to an infectious employee of Chipotle. The unthinkable happened again in 2009 when 29 people across six states infected with E.coli after consuming of Chipotle iceberg lettuce. The restaurant lettuce supplier, Church Brothers, was responsible for the infections.