Download - Chipotle Digital Marketing Presentation
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Digital Marketing:
A presentation by Linda Moreno, Sujun Liu, Yao Xie, Julian Gross, and Jasmine Jones
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$225B Market Competition Level
Barriers to Entry
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Market Segmentation
42% Burgers 14%
Sandwiches 10% Chicken
10% Asian 9%
Pizza 8%
Mexican 7% Other
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Industry Competitors
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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.
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Background
● Food with Integrity
● Focused on sustainability
● “Food served fast didn’t have to be fast food”
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History and Today
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Challenge: Chipotle v. E Coli
● 58 people infected
● 21 hospitalized
● 1,900 store closures
● 9 lawsuits
● 30% drop in sales
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How does Chipotle use Digital Marketing?
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Website:
Clean, fresh, and mobile friendly
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Mobile: Chipotle App
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SEO: Mexican Food vs. Mexican Grill
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Integrated Social Media: Fun, creative, image focused
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@ChipotleSnaps
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Email Marketing: Focused on promotions FREE CHIPS AND GUAC. THIS IS NOT A GAME. ACTUALLY IT SORT OF IS.
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Content Marketing & Brand Building
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SMS ➔ Sweepstakes
Cultivate Festival
➔ Promotions/Events Youth Soccer BOGO
➔ Giveaways Guac Hunter = Free Guac
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Video Marketing Simple, straightforward, and informative videos.
Tip Show how your solution helps the person in the story reach his or her goals.
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Overall Transparent communications Food with integrity Mouth-watering imagery >> (sorry y’all)
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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
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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
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Facebook in 2011
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Consistent Growth
● Facebook: April 2004 ● Chipotle App: August
2009 ● Twitter: May 2010 ● YouTube: Feb 2011 ● Instagram: 2013 ● Cultivate Festival
App: April 2015 ● Snapchat: 2015
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Increasing Spend on Ads & Marketing
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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.
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Guac Hunter *5.3 million requesting the offer *67% redemption rate
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Guac Hunter Web Traffic
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Program
EXECUTION
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Target Audiences
➔ Existing customers
➔ Millennials/18-34
➔ Organic consumers
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Key Messages
➔ Food with Integrity
➔ Commitment to Sustainability
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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
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Evaluation Success Metrics Tip
Show how your solution helps the person in the story reach his or her goals.
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Key Performance Indicators (KPIs)
➔ Measuring Chipotle’s performance against objectives/goals
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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)
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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
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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
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Thanks guys!
Q&A