Advertising Plan for Chipotle Restaurants

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Katlyn Andolina Kristen Mendoza Samantha Karp Research IMC Creative Brooke Hundley Jessica Toglia Media Production

Bright Ideas, Inc. Mission Statement: We at Bright Ideas, Inc. are strong believers in working with our clients to achieve success in today’s competitive environment. Our commitment and dedication sets us apart from the rest and therefore will be a top choice among advertising agencies.

Katlyn Andolina Research

Kristen Mendoza IMC

Samantha Karp Creative

Brooke Hundley Media

Jessica Toglia Production

Table of Contents Introduction: Strategy: Executive Summary 1 Target Market 19 Overview 2 Campaign Strategy 20 Situational Analysis: Execution: Historical Context 3 Creative Objectives and Strategies 21 Timeline 5 Media Plan 31 Industry Analysis 6 Integrated Marketing Communications 46

Market Analysis 8 Evaluation: Client SWOT 9 Criteria for Success and Measurement Methods 50 Competitor Analysis10 Marketing Recommendations 52 Sources 53

Objectives: Quantitative Benchmarks 16 Time Frame 17

Budgeting: Method and Amount 18

Executive Summary Chipotle Mexican Grill, created in 1993 by Steve Ells, can credit its national

growth to the support of its parent company the McDonald’s Corporation. Chipotle’s dedication to serving fresh food as well as naturally raised meats, has put them at the top of the restaurant industry in the United States. Bright Ideas Inc. wants to continue this vision while reaching out to greater markets within the United States. This six month long campaign will help us to meet our objectives as well as establish Chipotle’s place in the active lifestyle of the target market.

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Overview Real food, real fast. That’s the idea behind the newest trend to hit the dining experience. It’s termed “fast-casual,” and it’s not only the fastest growing segment in the restaurant industry, but a concept that provides both the quality of full-service at a price and speed comparable to that of quick serve. Within the last decade the category of fast casual has set its own standards for quality, moderate price, and service. Regardless of the brand or the types of food offered, one thing remains true, the industry is high in demand and potential suppliers wants their own stake in this billion dollar market. We at Bright Ideas Inc. have developed a campaign for Chipotle Mexican Grill that is designed to keep them on top of mind in this growing fast-casual market. Through the use of different strategies within this campaign we will increase sales and awareness among our target market. We will utilize several different marketing approaches and media outlets to achieve this goal including television, print, radio, internet, as well as nontraditional outlets. These strategies coupled with an Integrated Marketing Communications approach will launch Chipotle into the minds of consumers while fostering long-term success. 2

Chipotle Mexican Grill was created in 1993 in Denver, Colorado by CEO Steve Ells. McDonalds Corporation owns 87 percent of Chipotle. Chipotle serves its customers with quality food at a fast speed. It is a restaurant in the “fast-casual” segment of the food and restaurant industry with a main selling focus on their unique burritos. Chipotle Mexican Grill uses quality raw ingredients that are used in upscale dining establishments. Not only does this restaurant believe in fresh food, but it also focuses on choosing suppliers who ensure the ingredients are as flavorful as possible while still being environmentally safe. Chipotle calls its food, food with integrity because the food comes from farms where animals are naturally raised. A majority of the meat comes from animals raised on vegetarian diets. Chipotle serves more naturally raised meat than any other restaurant in the United States.

Historical Context

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Unlike many other dining facilities, Chipotle’s style is very modern. Chipotle has made their restaurants into architectural facilities. Each restaurant’s architectural style is different while still obtaining the modern look. Although Chipotle Mexican Grill is very unique from many dining facilities, it is not without its competition. Three companies looking to make waves in the fast casual market include Qdoba, Subway, and Panera. With 500 locations in the United States and many more being planned, Chipotle is a growing establishment that is becoming very successful in the fast-casual food industry.

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Historical Context continued

1993 - Chipotle opens its first restaurant in Denver, Colorado

1997 - Chipotle becomes a subsidiary of the McDonalds Corporation

Oct. 19, 1997 - Chipotle goes high tech by using Altametrics

1998 - Chipotle had 14 restaurant locations

2005 - Chipotle made an online ordering system available for pickup, titled “Don’t

Stand in Line.” A way for customers to be able to skip lines and go right up to the

front to pick up their food

Oct. 25, 2005 - Chipotle filed its IPO which indicated a proposed CMG ticker symbol

on the New York Stock Exchange

December 23, 2005 - Updated filing of IPO said that size of offering was approximately

6.3 millions shares with a price of around $15.50-$17.50 per share

2005 - By the end of this year Chipotle had 480 restaurant locations with the help of the

connection with McDonalds

March 2006 - Chipotle opens its 500th location in Fairview Park, Ohio

Timeline of Chipotle History

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A proven success in more than 20 markets, McDonald’s owned Chipotle is doing its best to meet an unquenchable desire in the fast casual market. Chipotle prides itself on the right concept at the right time. Their mix of fresh gourmet quality items--organically grown and pesticide free—in the popular Mexican category, presented in a trendy atmosphere and at reasonable prices is an economic model that not only makes sense, but has a created a strong brand loyalty. The idea stands alone as consumers find satisfaction in the ability to create their own healthy fare meals, although the menu is simple to say the least. The idea is replicable and has been across Chipotle’s national sprawl. As the Chipotle brand opens new doors in states across the nation, and with expected growth to be 60-70 units a year, the critics have quietly taken a back seat to the urban and suburban expansion into this market. Other companies have looked to grasp a hold of Chipotle’s shares with the launch of Jack in the Box’s copycat Qdoba brand as well as Wendy’s acquisition of Café Express. And while it is true that Chipotle began as one man’s concept and hard work, it would not be able to maintain its nationwide appeal without the helping hand in distribution, supplies, and endless capital provided by McDonalds.

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Industry Analysis

But while the suppliers attempt to grab hold of the market, Chipotle remains a strongly supported name in the hearts of consumers. Almost 13 years after the first Chipotle opened its doors to an idea that could not even be categorized, the chain has not only grown in sales and developments, but also managed to be true to its community. Most customers at Chipotle restaurants are heavy consumers and the young chain maintains complete control of developments in high visibility areas at the heart of large cities such as Denver, Chicago, Dallas, and Baltimore. As Chipotle works to expand as a household name it is no doubt they will continue to be recognized not only for taking a simple food creation and elevating the experience to something special, but also in opening new ground for others to wet consumer taste buds while meeting the needs of a healthy and hurried lifestyle.

Industry Analysis continued

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In today’s fast-paced society, consumers rely heavily on convenience food. In the past, customers have had to forgo quality food for quick service, but the current trend of fast casual dining has changed the restaurant industry. Fast casual provides the speed of fast food restaurants and the quality product, atmosphere, and service of casual dining. There has also been an increased demand for healthy foods. Restaurants are now adding new heath conscious options to their menu. Another trend that must be considered is the influence of different culture on American tastes. The growing Hispanic population in the United States has created a higher demand for Mexican influenced cuisine. One factor that may influence market demand is instances of food borne illnesses, including “Mad Cow” disease and Avian flu. Also, natural disasters have the potential to destroy crops and meat supplies. This can momentarily increase the price of goods, in turn possibly decreasing consumer demand for the product.

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Market Analysis

Chipotle SWOT Strengths

• Over 500 locations in 23 states • Sells a few types of Mexican food • Known for specialty burritos • Fast-casual dining specialty • Fresh, healthy options • Strong standing in the areas where it is established

Weaknesses • Somewhat expensive Known mostly for burritos, not much else

Opportunities • More venues • Delivery • Expand the menu

Threats • New fast-casual dining services • Cheaper food from other companies, including fast-food • Panera, Qdoba, Subway Fast-casual dining chains with a wider va-riety on the menu

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Chipotle’s competition is divided into three types of dining experiences. One type is fast food, which offers convenient, low-priced food, such as Taco Bell and Burger King. Casual dining with express take-out services, such as Chili’s “Too,” and Friday’s “Express,” offer their menus “to go,” with curbside pick up. Our biggest competition lies in the fast casual market, with restaurants including Qdoba, Panera, Boston Market, and Subway. Fast casual offers convenience and quality, with a casual dining atmosphere.

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Competitor Analysis

A major competitor to Chipotle Burritos is Subway. They both fall into the fast casual dining category. By performing a SWOT analysis on the competitor Subway, we can begin to get a better idea of how well they are doing and also how well Chipotle stacks up against their competitors.

Strengths • Named number one franchise in 2005 (this was the 13th time in 17 years) • Has health conscious alternatives • Has children’s menu and adaptive menus for international restaurants • Relatively inexpensive

Weaknesses • Competition includes all fast-food chains • Stopped their Sub Club Card pro-gram

Opportunities • Still developing healthy sandwiches • More restaurants can be built • Can sell other health conscious sides such as Baked Lays Chips

Threats • Other fast casual dining restaurants are developing healthy foods • Broad weight loss claims could back-fire

Subway

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Panera Bread, classified as a “bakery-café,” is one of Chipotle’s biggest competitors. It specializes in baked goods like breads, muffins, bagels, and sweets, as well as sandwiches, salads, and soups. The Au Bon Pain Co., founded in 1981 by Ron Shaich and Louis Kane, bought Saint Louis Bread Company in 1993, and by 1997 the name became Panera Bread. In 1999, Panera Bread was the sole company kept by Au Bon Pain Co., so that Panera could use all of Au Bon Pain Co.’s resources, and reach its full potential. The company has grown immensely, and is now available in 35 states, with over 825 locations. “Via Panera” has recently been added to create easier, more efficient service to consumers, especially business-people, so that orders can be placed early for 5 or more available for carry-out. In 2005, their revenue increased 34% over the previous year’s, and their shareholder value is over $1 billion.

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Panera Bread

Strengths • Over 825 locations in 35 states • $1 billion shareholder value • Sells salads, soups, sandwiches, and baked goods • Fast-casual dining specialty • Winner of many awards all over the nation • Fresh, healthy options • “Via Panera” pre-order carry-out for 5 or more

Weaknesses • High calorie foods Somewhat expensive

Opportunities • More venues • Delivery added into Via Panera More specialty coffees

Threats • New fast-casual dining services • Cheaper food from other companies, includ-ing fast-food • Chipotle Mexican Grill Fast-casual dining chains with specialized menus

Panera Bread continued

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Qdoba Mexican Grill is a very important competitor of Chipotle’s. It emphasizes fresh Mexican food, just like Chipotle, and it is known for its large burritos, quesadillas, soup, nachos and more. Qdoba started in 1995, in Denver, CO, and now has 195 locations in over 30 states. Qdoba has added two options, Q-to-Go Box Lunches, and the Q-to-Go Hot Taco Bar. The Hot Taco Bar serves hundreds of people, and as few as 20, including chips, toppings, tortillas and utensils. Q-to-Go Box Lunches can be standard or customized. The idea is an order-ahead option similar to take-out, with some locations even having delivery.

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Qdoba

Strengths • Variety of Mexican food including soup, salads and quesadillas • Q-to-Go lunches and Hot Taco Bar • Started earlier in the fast-casual trend • Contests, such as with the NCAA Final Four, and others

Weaknesses • High calorie foods Came out later than Chipotle Mexi-can Grill, a major competitor, with the same types of food

Opportunities • More venues • Delivery added to all locations • Expand Menu

Threats • Chipotle Mexican Grill • New fast-casual dining services • Cheaper food from other compa-nies, including fast-food Fast-casual dining with food other than Mexican

Qdoba continued

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Quantitative Benchmarks Chipotle Mexican Grill has established itself as a well known restaurant chain through the promotion of their healthy yet filling food. However, awareness is minimal where Chipotle has yet to be established due to the fact that Chipotle is still a growing chain. Loyal customers to Chipotle restaurants who frequent on a regular basis are often the major driving force for sales at each location. Therefore, our objectives are to increase sales by 4% and to build awareness among Chipotle’s new and upcoming markets.

Time Frame Bright Ideas Inc. has decided that this campaign should run between the months of April and September. The reasoning behind this is that during these warmer months people spend more time outside and are usually on the go. They like to enjoy the weather and their free time without the burden of cooking or taking too much time out of their daily lives to eat. In addition to this, summer weather brings out more health conscious behavior and therefore Chipotle’s menu selections will be top of mind among customers.

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Budgeting Method and Amount Bright Ideas Inc. is using the percentage of sales method in order to determine our advertising budget. According to last years sales, our estimated budget for this campaign is 29 million dollars.

Magazines

Cable TV

Websites

Transit

Radio Contingency MagazinesCable TVWebsitesTransitRadioContingency

Target Market Chipotle caters to a great variety of people. Our specific target market includes men and women between the ages of 25-34 who are college educated and who work in urban areas. Some have just entered their career paths, while others have become established in their field. They tend to be single and lead fast-paced lives. Our target market is looking for convenient food that is a healthy alternative to typical fast food choices.

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Campaign Strategy Our campaign is designed to increase awareness of Chipotle Mexican Grill. Based on the statistic that 55% of Chipotle customers return at least four times within the month, we are aiming towards attracting new customers, who we hope will then become repeat customers. We are trying to appeal to our target market’s needs for quality and convenience. Chipotle is a healthy alternative to fast food. Chipotle believes that you do not have to sacrifice quality for speed. This idea will be present in our advertisements in each media outlet; print, television, radio, internet, and nontraditional outlets.

Creative Objectives and Strategies

Copy Objectives: 1. To increase awareness of Chipotle Mexican Grill 2. To promote Chipotle’s quality food 3. To emphasize convenience of fast casual dining

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Copy Strategy Our goal is to create awareness and increase sales by promoting Chipotle’s quality and convenient food through our chosen media outlets. To achieve this goal we will promote a consistent message throughout our campaign. Our slogan, “Chipotle: Quick Quality Cuisine,” will appear in all of our advertisements. We plan on using humor and slice of life advertisements. We want our customers to be able to relate to the situation that appears in the advertisements.

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Print Advertisements continued

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Radio Spot Tip Top in a Tick Tock 30 sec Radio Spot

TOM: Tip top in a tick tock, tip top in a tick tock, tip top in a tick tock…

BOB: Hey Tom. What are you doing?

TOM: …tip top in a tick tock, tip top in a tick tock…

BOB: Marie, what’s up with Tom?

MARIE: Oh Tom and I just had Chipotle for lunch again.

BOB: Chipotle?

MARIE: Ya know, Chipotle Mexican Grill where you can get great quality food, fast.

BOB: Oh I get it, top notch food in a second, but that’s kind of hard to believe.

MARIE: No it’s true. They use fresh vegetables and naturally raised meats. Here, have a bite.

BOB: Tip top in a tick tock, tip top in a tick tock…

MARIE: Here we go again.

ANNOUNCER: Chipotle: Quick Quality Cuisine

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Television Advertisements Television Spot: 30 sec. “Getting to the Top”

SFX: Ding SFX: Doors Open

SFX: Doors Close SFX: Ding SFX: Doors Open



SFX: Doors Close

SFX: Doors Close SFX: Doors Close

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TV ad continued

ANNOUNCER: Taking too long to get to the top?

ANNOUNCER: Try Chipotle’s top notch food.

ANNOUNCER: Chipotle, quick, quality, cuisine.

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Transit Advertisements

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Internet Skyscraper Advertisement

Media Plan Media Objectives:

Target Market: The target audience for Chipotle Mexican Grill consists of men and women between the ages of 25-34. The primary characteristics of this market are that they are college educated and demographically based in urban areas. They are single, busy professionals who are on the hunt for healthy foods to support their active lifestyle. With diversified offerings of organically grown ingredients at reasonable prices, Chipotle has something to offer everyone. Geographic Scope and Placement: Our campaign will be nationally based with advertisements placed in popular magazines, cable television networks, internet sites and radio stations that cater to our target market. We will also take advantage of our large urban areas that house Chipotle restaurants by placing nontraditional advertising on buses and/or subways in the most popular cities of New York, San Francisco, Denver, and the newest market, Boston.

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Media Plan continued Media Objectives continued:

Message Weight: While the campaign will be nationwide, Chipotle has established a strong home basis in Colorado with growth across the Midwest. They are also looking to expand across the northeastern seaboard. With this in mind, our advertising would be heightened in the west and Midwest to attain awareness amongst rising competition, and in the northeast to create awareness for the new restaurants created this year.

Media Plan Media Strategies:

Reach and Frequency: Our media goal is to achieve an Effective Reach of 90% with a corresponding Effective Frequency of 9. Continuity: Our media plan will be implemented over a 6 month period of continuous advertising. The plan will run from April 2007 to September 2007. We feel that this is the time in which an active lifestyle is top of mind for the consumer and one in which Chipotle’s healthy menu items will be desired. We plan on starting our campaign in April when warmer weather is inspiring consumers to get outside and get in shape for the summer. Throughout the summer advertising remains high as our target audience is outdoors and focused on staying in shape looking for healthy entrees to cater to their busy schedules. Finally we finish out our campaign in early fall as the weather turns colder and consumers look to staying indoors and less likely to maintain a healthy attitude. This type of scheduling allows for awareness to grow as continuity is built and promotes regular consumption of Chipotle’s Mexican fare. This will also keep demand from fluctuating through the campaign in well

established areas, and give new stores a goal to create their own level of awareness and appeal for their surrounding markets. 33

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Media Plan continued Media Strategies continued:

Length/Size of all Advertisements: Chipotle’s magazine advertisements will be full page color ad. On cable network television we will use 30-second commercials. On websites, we will place skyscraper ads (120 by 600 pixels high). Clicking on the ad will redirect the viewer to www.chipotle.com. We will implement a 30 second commercial on spot radio in specific cities where Chipotle has locations. We will also make use of nontraditional advertising by placing a banner on transit vehicles including buses and subways.

Media Plan continued Media Choices:

Media Mix: Bright Ideas, Inc. has chosen to place ads in magazines, cable television, online advertising, radio, and transit advertising. We have chosen to purchase full page ads in Self and Rolling Stone magazines to target both the female and male audiences, respectively. Chipotle ads will be placed in 30 second commercial spots on the Comedy Central, E! Entertainment Television, and VH1 networks. We will attract listeners on their way to and from work or in their car on their lunch break through radio advertising. Our target market listens largely to alternative music and thus we support 30 second commercial advertising in this programming format. Skyscraper ads will be placed online at websites such as ESPN.com and MSNBC.com to attract viewers who are heavily interested in sports for an active lifestyle and news for our largely professional market. Finally, since our market is largely based in urban areas, we will utilize mass transit advertising. By placing large banner ads across buses and subways in big city markets such as Denver, New York City and Boston, Chipotle will be in the customer’s evoke set due to frequent viewings during ideal times for food purchasing.

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Media Plan continued Media Justification:

Print: We chose magazines that had both high index rates and high circulation with a minimization of wasted viewers. This allows for positioning in front of current consumers that visit Chipotle restaurants as well as those who fall into our target market. By portraying a series of ads focused on quality service with quick delivery we can easily appeal to fitness-seeking male and female readers by advertising in Self, and Men’s Fitness We can appeal to trendsetting young male subscribers of Rolling Stone magazine and In Style, a trendy magazine targeted towards women. Other magazines that we will advertise in are People and Newsweek. These magazines reach a large amount of consumers in the United States. Also, the pass-along rate of these magazines is high. These magazines keep consumers up-to-date on national and world news, as well as celebrity and health information, travel and food, and a variety of other topics. This way we will be able to reach a wide assortment of people in our target market, and appeal to different tastes.

Media Plan continued Media Justification continued:

Transit: A large portion of Chipotle restaurants are centered in metropolitan areas capitalizing on young professionals and businesses for lunch and quick service meals. We feel that ads across buses and/or subway cars will be seen by our target market when traveling to and from work and during the large lunch rush. To attract the eye of single professionals on the go we have decided to utilize our speed dating ads with simple tag lines that are easily visible to onlookers. Radio: It can be difficult to reach our highly active target market throughout their busy day without being able to reach them while they’re in transit from destinations. Thus we chose to capitalize on the use of 30 second radio spots to keep Chipotle at top of mind when our target market is on their way to and from work and thinking where they might like to grab lunch or dinner at. We focus solely on alternative radio due to the overwhelmingly high index rates for this format in our target market.

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Internet: Healthy eating has always been an important part of the athlete’s lifestyle, and has now more than ever become the topic for news discussion as America’s waistline grows. Thus it is important that Chipotle position itself as a restaurant that supports both those who live active lives and those who wish to join in the fit for a fitter nation. We chose to take advantage of online advertising as our target market has a very large stake in the percentage of frequent internet users. We selected ESPN.com and MSNBC.com to reach those looking for sports and news updates that might have little time in their day to otherwise come in contact with our other media outlets. By placing skyscraper ads on the home page we can attract attention to our brand name positioned right by the headline news and provide a direct link to Chipotle’s website. Once there, they can browse around or even quickly order their food online for pickup later in the day.


Cable TV: We chose to place our ads on networks with six very different audiences in order to increase visibility. We selected Comedy Central as a prime target position for our young adult male audience who are likely to be strong trendsetters among others in their age group. E! Entertainment Television was our choice to focus efforts on our adult female audience by trying to stay on top of what is popular in the world of style and image. We feel that Chipotle is able to position itself in the eyes of these audiences as a cool, young place to visit, that also supports athletic attitudes and a constant on the go lifestyle. We looked to VH1 as a source that would provide a strong gender mix and bring in the remaining members of our target audience. Our target market is past the teenage stage in life, but also grew up with the music video. Thus, VH1’s prime target audience of 29-44 fits perfectly within our demographic, providing a wide range of entertainment specials coupled with an appeal to varying music tastes on a 24 hour basis.

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Cable TV continued: TLC is a channel that offers a variety of television shows. It is targeted towards both women and men, with programs such as “A Wedding Story,” “Miami Ink,” and “While You Were Out.” However, women are a much larger target market for this channel. TLC is a channel known for “life lessons,” focusing on different lifestyles, and how to integrate different aspects into consumers’ lives. Healthy choices, convenience, and food are a large part of this and included in the various programs, such as “Honey, We’re Killing the Kids.” Chipotle could easily be incorporated into the style of the TLC channel, and be seen by many people.

Media Plan continued Competitive Media Assessment: Position Media

Qdoba

Positions itself as a fast-casual restaurant providing accessible and affordable Mexican fare. All entrees are made to order, prepared fresh in front of the cus-tomer and topped with personally se-lected ingredients, including one of five distinct salsas.

Qdoba has run TV and radio spots in large markets. While smaller markets capitalize on local store advertising includ-ing food sampling at commu-nity events.

Panera Bread

This counter-service operation offers high-quality food at reasonable prices in a comfortable atmosphere. It positions itself as a bakery café delivering fresh baked breads, authentic artisan-style ba-gels, coffee, soups, sandwiches, and sal-ads for those on the go.

Panera Bread focuses largely on high word of mouth to attract customers. To get the word out locally food samplings at events and in-store are done. The restaurant is also a large contributor to local community causes.

Subway

The world’s largest submarine franchise, Subway is a quick service restaurant po-sitioned to provide a healthy alternative to traditional fast food at the same low prices. Sandwiches are made in front of the customer prepared as requested.

Subway has a large national campaign involving TV and radio spots. It also has a three year sponsorship of little league baseball and provides large do-nations to national as well as local causes. 41

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Media Budget and Allocations

Magazine (Full Page Color)

Frequency

Circulation

Rate

Ads Purchased

Total Cost

Self Monthly 1,400,408 $ 114,905 6 $ 689,430.00

Men's Fitness Monthly 650,017 $ 49,895 6 $ 299,370

Maxim Monthly 2,503,218 $ 184,440 6 $ 1,106,640

In Style Monthly 1,772,568 $ 116,400 6 $ 698,400

Rolling Stone Biweekly 1,302,600 $ 138,260 6 $ 829,560

Newsweek Weekly 3,117,562 $ 97,945 8 $ 783,560

People Weekly 3,691,167 $ 198,500 8 $ 1,588,000

Total Print Cost: $ 5,994,960.00

Cable Network

Primetime (30 second spot)

Average Viewers

Average Cable CPM

Ads Purchased

Total Cost (100 GRPs)

Total Cost

Comedy Central 924,000 $ 14.00 96 $ 12,936.00 $ 1,241,856.00

E! Entertainment 386,000 $ 14.00 96 $ 5,404.00 $ 518,784.00

TLC 807,000 $ 14.00 96 $ 11,298.00 $ 1,084,608.00

VH1 613,000 $ 14.00 96 $ 8,582.00 $ 823,872.00

Total Cable TV: $ 3,669,120.00

Media Budget continued

Website

(160x200 Skyscraper)

Size

Frequency

Viewers

CPM Rate

Total Cost

ESPN.com 160x200 Skyscraper 1 banner/24 weeks 14,900,000 $ 11.00 $ 3,933,600.00

MSNBC.com 160x200 Skyscraper 1 banner/24 weeks 26,755,000 $ 11.00 $ 7,063,320.00

Total Online: $10,996,920.00

Transit Location

Population

Cost/Day

(100 GRPs)

Total Cost (180 days)

New York City 8,085,742 $ 16,171.48 $ 2,910,867.12

Denver 557,478 $ 1,114.96 $ 200,692.08

San Francisco 751,682 $ 1,503.36 $ 270,605.52

Boston 581,616 $ 1,163.23 $ 209,381.76

Total Transit: $ 3,591,546.48

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Radio Market (30 sec spot)

Popula-tion

CPM Rate (Morn/

Afternoon)

Ads Purchased

Cost Morn/Afternoon

(100 GRPs)

CPM Rate

(Midday)

Ads Purchased

Cost Midday (100 GRPs)

Total Cost

Baltimore 628,670 $8 90 $ 452,642.40 $6 90 $339,482 $ 792,124.20

San Diego 1,266,753 $8 90 $ 912,062.16 $6 90 $684,047 $1,596,108.78

Austin 672,011 $8 90 $ 483,847.92 $6 90 $362,886 $ 846,733.86

Atlanta 423,019 $8 90 $ 304,573.68 $6 90 $228,430 $ 533,003.94

Columbus 728,432 $8 90 $ 524,471.04 $6 90 $393,353 $ 917,824.32

Total Radio: $4,685,795.10

Used

$ 28,938,341.58

Remaining

$ 65,218.42

Media Budget continued

Media Flowchart

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IMC Campaign For our Integrated Marketing Communications campaign we are using a variety

of promotional tools including, sweepstakes, public relations, and coupons. The goal of this campaign is to create awareness of Chipotle Mexican Grill by our target market. One way to create awareness is through the use of Public Relations. Public Relations tools that we are using include press releases and sweepstakes. Press releases will be utilized for upcoming events or the launching of new locations and activities, such as sweepstakes. One sweepstake that we are making available to our customers is a t-shirt contest. This contest will be held in every Chipotle location for a few months. All customers will have the opportunity to make a t-shirt that will represent Chipotle for the year and be sold throughout their location and online store. Each restaurant location will pick a winner who will compete with all of the other finalists towards the prize. Once you become a finalist, you will win a free meal and a trip to the showing of all of the finalists’ shirts. The overall winner throughout the contest will host a party one night at Chipotle in which food and drinks are included. This party will help to achieve the goal of creating awareness because the people attending the party may have never been to a Chipotle.

IMC Continued Another sweepstake that we are holding will be revolving around a new meal

that we are adding to the menu. This meal includes more food than the average person could possibly eat on there own, in one sitting. This contest will always occur because it is for the individual. Customers will be competing with themselves. A person who chooses to order this meal will have a certain amount of time to finish it to win the prize. Those who can finish the meal will receive their name on a bulletin board behind the counter as well as the t-shirt with the winning design from a previous contest. This contest will introduce a great amount of word of mouth because someone who wins will want to tell everyone about their experience. In addition to this, when the person wears the t-shirt, people who see him/her will become aware of Chipotle. A third contest will be to make your own burrito. Customers will have the chance to make a burrito in their homes and bring it to Chipotle with a list of the ingredients needed. Every season we will pick a winner whose burrito will be added to the menu for that season. This burrito will be named after the winner and added to the menus at the location where it was chosen.

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IMC Continued Chipotle restaurants will be providing businesses with lunch every Friday.

Companies put their business card in a box located at each Chipotle. On Thursday afternoons there will be a drawing for the next day’s lunch. The business who has won the free lunch will be notified after the drawing. Chipotle employees will bring the lunch to the business on Friday. This will build one on one relationships with the businesses as well as increase awareness towards Chipotle.

We will be sending direct mail to our target market located within a 20 mile radius within each Chipotle location. The goal is to try to attract new customers through the use of direct mail. We are sending out coupons in the shape of burritos. The outside will look like the tin foil outer covering of the burritos. With each layer of the burrito you open, you will be given new information. One layer will list store locations around the state. Another layer will include a menu and prices. The final layers will include coupons for your next purchase. We will be able to measure how effective these direct mail pieces are by the amount of coupons we receive in the restaurants.

During this campaign we will also have Free Standing Inserts with coupons. These Free Standing Inserts are going to be located in the coupon books within local Sunday newspapers. The inserts will include a picture of the burrito with two coupons on the bottom for a customer’s next purchase.

IMC Continued Public Relations tools as well as direct mail can help us to achieve our goal of

creating awareness. Once we have created awareness and new customers we will need to keep these customers coming back. This is why we have decided to use punch cards for lunches at Chipotle. These cards will be credit card size so that they fit perfectly in your wallet. The card will include Chipotle’s logo with a little detail of store locations in the given area and the hours of these locations as well as information leading a customer to our website. These cards will be punched during the lunch hours. Once you have filled in the card, you will receive a new one as well as a free burrito.

With this IMC campaign we hope to reach an awareness among our target audience for Chipotle Mexican Grill. We can evaluate the progression of this campaign with the turnout of coupons received and the people attending sweepstakes held at Chipotle locations.

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Evaluation Criteria: Our campaign for Chipotle Mexican Grill strives to increase sales by 4% and create awareness among our target market of single males and females between the ages of 25 to 34. The Chipotle campaign will run from April 2007 to September 2007. If these objectives are achieved, then our campaign will be considered a success. Methods: The effectiveness of our campaign will be measured by: • Increase in total sales • Redemption rate on direct mail coupons as well as coupons in free standing inserts • Focus groups will be used before, during and after the campaign • Online surveys

Evaluation continued Consequences and Contingencies: Based on Chipotle’s current advertising, their main customers respond to an alternative, unique, and tongue-in-cheek humor. Since our campaign aims to appeal to a broader audience, we fear that Chipotle’s loyal customers may feel that Chipotle has lost its originality. Our intention is not to alienate these customers, but the business needs to continue to appeal to new customers in order to thrive. By testing throughout the campaign, we will be able to gauge the effectiveness early in the campaign and adjust accordingly for more desired results.

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Marketing Recommendations We at Bright Ideas, Inc believe that to better serve Chipotle’s customers it would be in their best interest to alter the company website. The website is difficult to navigate for those who are not computer savvy. We also feel that each Chipotle location should have a suggestion box if they do not already have one. These suggestions can help Chipotle increase overall customer satisfaction.

Sources Boston Market. 22 March 2006. <www.bostonmarket.com>. Burger King. 22 March 2006. <www.bk.com>. Chili’s. 22 March 2006. <www.chilis.com>. Chipotle. 22 March 2006. <www.chipotle.com>. Manchester People. The Value of Business Tourism. 2005. Manchester City Council. 21

April. <www.manchester.gov.uk/ people/issue22/business.htm>. Media Life. 15 April 2006. <www.medialifemagazine.com>. MRI+. 23 March 2006. <www.mriplus.com>. Panera Bread. 22 March 2006. <www.panerabread.com>. Qdoba Mexican Grill. 22 March 2006. <www.qdoba.com>. SRDS. 23 March 2006. <www.srds.com>. Subway. 22 March 2006. <www.subway.com>. Taco Bell. 22 March 2006. <www.tacobell.com>. TGI Friday’s. 22 March 2006. <www.tgifridays.com>.

U.S. Census Bureau. State and County QuickFacts. 27 March 2006. < http://quickfacts.census.gov/qfd/states/06/06037.html>. 53