Running Head: MARKETING MANAGEMENT

MARKETING MANAGEMENT
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Executive summary
Objective of the report is to expand the business of Chipotle Mexican Grill casual dining in
UAE. This will help to reach and serve the new customers and increase the revenue. The
organization will grow within the UAE by delivering quality product and consistent services.
This will work to differentiate the business by unique services and establish the good image
within the mind of customers. This has the good business strategies; it will apply the effective
advertisement strategies to promote business by offering the quality ingredients within the
products. This will generate the excitement for food by the many number of quality promotional
methods. This report will include the competition and target for the organization in UAE. Further
report will include the segmentation, SWOT analysis, and market research. The market research
will describe the product, place, prices, and promotion strategies for the organization in market
of UAE.
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Table of Contents
Executive summary.........................................................................................................................1

Introduction......................................................................................................................................3

Current status of organization......................................................................................................3

Product life cycle.........................................................................................................................5

Competition overview.....................................................................................................................6

Target market...................................................................................................................................7

Segmentation...................................................................................................................................8

Demographic................................................................................................................................8

Behavior.......................................................................................................................................8

Psychographic..............................................................................................................................9

SWOT analysis................................................................................................................................9

Strengths.......................................................................................................................................9

Weaknesses................................................................................................................................11

Opportunities..............................................................................................................................12

Threats........................................................................................................................................14

Market research.............................................................................................................................15

Product.......................................................................................................................................15

BCG matrix............................................................................................................................16

Place...........................................................................................................................................18

Price...........................................................................................................................................19

Promotion...................................................................................................................................19

Conclusion & recommendations....................................................................................................19

Bibliography..................................................................................................................................21
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Introduction
Chipotle Mexican Grill is known as the American chain of casual dining restaurant in USA, UK,
Canada, Germany, and many nations around the globe. In 1993, Steve Ells founded the
organization in Denver, Colorado. The Chipotle name derives from Mexican name for smoked,
dried jalapeno chili pepper. He has attended the culinary institute of America within the Hyde
Park; New York. Ells became a line cook within the Jeremiah Tower at Stars within the San
Francisco, California. Ells opened the first restaurant in Denver Colorado, near Denver
university campus with the loan of $85000 from his father [ CITATION Chi20 \l 1033 ].

This has been estimated by Ells and his father that it is important to sell 107 burritos every day
for becoming profitable. This business has gotten success and original sale of the organization
has reached to 1000 burritos in a single day. After that he planned to open a fine restaurant for
dining but suddenly has focused on the Chipotle Mexican Grill restaurant business. This presents
the potential to gain success in future. It is currently trading within the New York Stock
Exchange [ CITATION For201 \l 1033 ].

McDonald’s known as the very big brand that made an initial minority investment within the
organization in 1998. This organization had grown to become biggest investor of Chipotle’s.
This kind of invest from McDonald’s has enable the Chipotle to expand to more than 500 outlets
by 2005 [ CITATION Das19 \l 1033 ].

Founder CEO Steve Ells, in November 2017, has announced that he would be stepping down
from position. This position was filled by Taco Bell CEO Brian Niccol. The Ells will hold his
position as the organization chairman. Stock price of the company has grown by 12 percent after
the change within leadership [ CITATION Bus14 \l 1033 ].

Current status of organization

 Market
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Organization is placed at number 3 in top five best restaurants in USA. The organization is
gaining regularly high profits and applying many strategies to improve the position within the
market.

[ CITATION Wit20 \l 1033 ]

 Revenue

In present revenue of the organization is regularly increasing as customers like to return and use
the services due to the good facilities and tastes.
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[ CITATION Wit20 \l 1033 ]

 Digital ordering growth

Digital order is a growth engine for the company success. This organization is regularly driving
improvement within the digital services and rolled out the long awaited reward program.
Management of the organization is regularly focusing on the possible digital efforts. This will
remain effective for the organization to attract the more investors.

[ CITATION Wit20 \l 1033 ]

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Product life cycle

Every product around the globe has a lifecycle. This includes product introduction, growth,
maturity, and in last decline stage. It is not different for any organization including Chipotle
Mexican Grill.

 Introduction

This happened when product and services of the business was launched within the market. This
demonstrates that within introduction stage food served very fast and organization is required to
serve typical fast food on low cost with high quality. Activities regarding promotion would be
critical however important for the business. Steve Ells was not using advertisement agencies and
focused only on the advertisement through billboards, radio and word of mouth. Motive of the
organization was to gain acknowledgement of product through the people.

 Growth

This organization had gain the fast growth as earn the revenue of more than 1000 in a single day.
It had grown by having the 16 restaurants within the Colorado area. The investment amount of
McDonald was $360 that allowed it to grow and expand very fast. This organization grew to
more than 500 locations. This organization went publically and stock rises with ratio of 100
percent in a single day. This organization has more than 37000 employees and operating in more
than 1500 locations around the globe.

 Maturity

In this stage sales of organization begin to stabilize. This organization has not entered within the
stage. It is regularly earning and increasing the sales that present high level of sustainably from
last years. This can be concluded that there will be many years to enter within the stage as there
are many untapped markets for branch out.

 Decline

This stage presents in which sales of the organization product decline and some of the products
within the menu withdraw. This organization has faced the small decline within the Northwest
region sales because of the salmonella problem. This has affected the business bottom line and
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net sale within the dramatic manner. Chipotle Mexican Grill is far from the decline stage as
regularly expands within the international market and open new store at many places.

Competition overview
UAE is known as the lucrative markets regarding food industry around the globe. This is one of
the competitive markets as have more than 9000 restaurants (Ramseook-Munhurrun, 2012). The
market is saturating and many service providers come with the sophisticated ideas, new trends
and attract more customers. This is very typical for the new restaurants in UAE because of the
cannibalization. This is also an important reason to lose the customers. The restaurant industry
within the UAE due to changing face of economy attracts more investors and entrepreneurs.
There are no barriers regarding entry and worldwide business picking up.

There are also high rate of employee attrition and cost of labor within the restaurant industry of
UAE. This presents the high level of competition within the restaurant industry of UAE.
Employees have the options to switch and earn the better opportunities. The competition is main
reason to increase the staff attrition levels.

Food service market within the UAE includes the many number of regional and internal
organizations like Wagamama, Prezo, Yum Brands, Five Guys, and Mcdonald. There are many
fast food chains regularly dominating the casual dining and fast food restaurant within the nation
by high level of presence. There is stiff competition within the provider of food services on the
basis of pricing, food services qualities, calories intake every meals and options of healthier
menu (Bouwens, Donzé, and Kurosawa, 2017).

There are more than 138 projects are underway within the UAE. There are many restaurants are
opening everyday with the similar food options. The organization to compete within the market
of UAE should focus to increase the base of customers by retaining them. Retention of customers
will be main focus and completed by leveraging effective rewards programs, loyalty programs,
CRM technique, and offer the special discounts regularly by many methods (Al Qaydi, 2016).
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Target market
Target market is known as the customers groups within the business (Azzam, and Rettab, 2013).
It is also known as the subset of entire market regarding services and products. Target market
for the Chipotle Mexican Grill in UAE will be students of college and millennial professional
within the age of 18-28. Many of them consider cooking as the hobby and make the meal from
own kitchen by use of fresh and healthy foods. This presents the increase awareness regarding
health that is evident within the society. Professionals and young students are pressed for time
that is common occurrence with people. These like healthy alternative for cooking and eat out.
Most of them not like to restaurant such as Mcdonald, burger king because of the unhealthy food
which causes the body. These will like the Chipotle Mexican Grill in UAE as a healthy option of
casual dining. These also have disposable income and like to follow and return with regular
spending by college campuses, urban centers and many places which are well educated for foods
and prefers the balanced diets. This organization to gain the more customers within the UAE
market will focus on the philosophy such as “Food with Integrity”. This will help to become
more capable and attract the loyal customers that like quick to eat with families and friends.

Segmentation
This is known as the procedure to divide the marketing of potential customers within the groups,
segments, on the basis of characteristics. This kind of segmentation includes customers that
respond effectively to strategies of marketing and share the characteristics like interest,
requirements, and locations (Yusuf, Shukor, and Bustamam, 2016.)

Demographic
This will be important for the Chipotle Mexican Grill to identify and focus on the demographic
segmentation to gain the market share within the UAE. Demographic segmentation for the
Chipotle Mexican Grill will include the people within the age of 18 to 60. Life cycle stage of
business include the customers such as single people that not live at home, bachelor, young
individuals, newly married couple, young children. Primary target market will be men and
women within the age of 25 to 30. This category will help business to earn the half of its profits.
This organization will focus to meet and satisfy the customers’ requirements. It will also present
the business at social level to people that have stable income and enough capable to buy extra
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products and services to make lives happy. Appropriate marketing strategy will help the business
to appeal and attract more young people (Madichie, and Hinson, 2013).

Behavior
The behavioral segmentation for the Chipotle Mexican Grill will include the people that have the
effective degree of loyalty, personality and effective user status. In this category organization
will focus to invite hard core loyal customers that like to enjoy casual dining within the relaxing
environment by chat with relative and friends. Personalities for the customers will be easygoing,
regular users, and determined by maintaining the ambitious nature. Organization will monitor
and invite the more customers by offering the loyalty programs to customers. This will be
effective for the organization to make the use of loyalty card regarding purchase. It will also help
business to monitor the buying behavior of UAE people (Jamshed, and Ahmad, 2018).

Psychographic
Psychographic segmentation includes the people that divide customers groups on the basis of
lifestyle, social class, personality characteristics, and lifestyle (Jham, and Tandon, 2012).
Organization will target the customers on the basis of lifestyle choices, attitudes that consider
fair-trade food. The main customer for the business will be people that are serious about the
healthy food and prefer the upscale market food. The organization will create the advertisement
on the basis of their choices and attract them effectively. This segment will include the upper and
middle class people in UAE that maintain the life style such as mainstreamer, aspirer, explorer,
and reformer by other individuals.

SWOT analysis
SWOT analysis is known as the structural planning which is used by the many organizations for
evaluating strengths, weaknesses, opportunities, and weaknesses. This can be also used by the
organization management for situational analysis. This is one of the important analyses for the
business to maintain the dominant position within the market through effectively analyzing and
reviewing SWOT analysis. This is an important analysis for interactive procedure and need
effective coordination within the many departments like marketing, operations, finance, strategic
planning, and management information system (Washi, 2012).
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This is an effective framework for facilitate organization to identify internal strategic factors like
strengths and weaknesses & external strategic factors like threats and opportunities. This leads to
2X2 matrix and known as the SWOT matrix. This will be important to identify strategies which
organization use to exploit external opportunities, counter threats and protect Chipotle Mexican
Grill strengths and eradicate weaknesses.

Strengths
Chipotle Mexican Grill is leading organization around the globe. Strengths of the business are
known as internal competencies. This helps business to protect market share within existing
market and penetrating within the new markets (Gundala, and Khawaja, 2014). Following are the
strengths of Chipotle Mexican Grill which will help it to expand within the United Arab
Emirates market.

 Tasty food menu

The main menu of organization is tacos, salad, burritos, and burrito bowl. This organization
differentiates itself from competitor’s restaurants and hotels by offering unique taste and food
with good spices. Tasty food is known as the base of its spices and attracts huge number of
people to come and have a meal by enjoying peaceful environment and culture. This will be
effective for the Chipotle Mexican Grill in UAE as regularly follow the unique concept with
unique offering and serve the customers best food.

 Organization mobile application

This organization has already launched the mobile application in which customers have the
option to choose the appropriate dishes and place the orders. This organization runs a loyalty
programs to improve the utilization of application that present more than 14400 people have
downloaded the application. This organization has more than 25000 active users within the
application and regularly increasing consistently. This will be effective for the Chipotle Mexican
Grill in UAE as minimize the lines of waiting and customers will have the options to place the
order very fast.

 Classic style of cooking

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There is classic style of cooking is used by the Chipotle Mexican Grill chef. This organization
not serves the ready-made and industrially prepared ingredients within the restaurant. This
organization uses the knives to cut fresh vegetables and meat then cook within the pan and pots.
This organization cooks the food on the choice of customers as also use stove or grills according
to demand. This will work for the Chipotle Mexican Grill in UAE and help to gain the
competitive advantage and maintain the good position within the new market.

 Fresh, clean, and quality food

This organization offers the quality food with the integrity that phrase it’s branding as customers
in today’s time prefer fresh ingredients within the preparation of food. This is broadly known
that restaurants in UAE usually use frozen meat and vegetable. Chipotle Mexican Grill will work
effectively within the UAE and gain the success as completely uses fresh vegetable, meat, rice,
and many other ingredients in preparation of food. Everything within the organization kitchen
comes fresh and chef uses it on daily basis. This organization not follows the concept of freezing
and keeps on using for weeks.

 Economical pricing

This organization serves freshly prepared food that generally costs more but it charge only
economical prices from customers. Food menu items of the business include prices ranging from
$1.5 to $8 for its products. This will help it to maintain the position within the market of UAE.

 Reliable and continue suppliers

This is a universal truth that cooking a food with the fresh ingredients is very challenging tasks
due to the unavailability of fresh ingredients. This organization performs effectively as keep the
strong network of the suppliers which are enough capable to offer these kind of services.

 Rightly processed meat

In today’s time there has been huge discussion on animal’s welfare. These should be kept well
within human way before slaughtering. Chickens and pork, chipotle are cautious regarding these
things and organization only prefer those suppliers which treat animals well within the farms.
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Weaknesses
These are also known as the internal flaws of business that management should be aware about
it. In today’s competitive environment it is important for the businesses to know the weaknesses
compare to strengths. Competitors usually target the organization weak points and take the
competitive advantage within the market. So this is very important for the Chipotle Mexican
Grill to know the weaknesses and expand within the market of UAE.

 Few items within the menu

Chipotle Mexican Grill is operating within the many nations but offers the few items within the
menu. This is important for the business to offers the many varieties of dishes to customers to
target the larger market. This organization to stand within the market of UAE should include the
Panera bread within the menu.

 High level of sodium within products

In today’s time customers like the salt to make the meal tasty and spicy but some of the blood
pressure patients not like the salt within the diet. Food items of the Chipotle Mexican Grill are
salty and have the high level of sodium which is liked by young people. This is not good for the
people that suffering from the high blood pressure. Organization should offer the salt free foods
and have the option to add the lemon that is sour but not contain sodium.

 Rely on few suppliers

Chipotle Mexican Grill is heavily relying on the suppliers regarding fresh chicken meat,
vegetables, ingredients and rice. Chipotle This is important for the business to have alternatives
or other supplier network to reduce risk factor within the UAE.

Opportunities
Opportunities are known as the external factors which business can utilize as advantage to
increase the share within the market and profit. Some of the key opportunities for the business as
follow.

 Expansion
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This has been founded within the research that California has huge number of Chipotle Mexican
Grill location with more than 16 percent within the USA with 418 locations. There are almost 40
million populations within the California. There is one Chipotle Mexican Grill for 90000 people.
There are major number of locations within the Los Angeles (5%), Sab Diego (4%), and San
Jose (4%).

There are more than 221 stores of Chipotle Mexican Grill in Texas to serve for every 28 million
people. There is an outlet to serve more than 128000 people. There are almost 9 percent of total
numbers of locations within the Texas. There are more than 192 stores of Chipotle Mexican Grill
to serve 12 million people. This organization has an outlet to serve every 61000 people. There
are almost 7% of total numbers of stores within the state.

The main focus of Chipotle Mexican Grill is USA customers although it has restaurants in other
nations. These are very few and almost 37 to be more precise. This is very low for the
multinational brand as market at global level is very large. Chipotle Mexican Grill should keep
on spreading the operations in other nations (UAE) like Burger King and McDonald.

 Update and upgrade

In today’s time customers and marketplace is very dynamic that regularly changes. Customers
likes and prefers different things whether food, menu, and taste. Chipotle Mexican Grill should
regularly focus and keep running the change by offering the different services and products to
customers to keep on their coming.

 Orders from application

This has been founded within the research that at the end of 2019, Chipotle Mexican Grill has
received more order through mobile application. It has increased to the great extent as created the
$257 million that is 18.3 percent of total sale. There are huge opportunities for the Chipotle
Mexican Grill to work on online system and delivery system as it is known as the growing field
and have the potential to earn more money for the businesses in UAE. There are many
organizations like Uber Eats, Door Dash, Grub Hub, and many more which earn the huge
amount of profit by the online orders.
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 Drive through service

This is known as the type of service in which customers not required to leave their car and get
the product and services as a shopping through staying within the vehicle. Chipotle Mexican
Grill has launched the services known as the drive through to serve the more customers through
its casual dining restaurants in Arizona and Yuma. It has also done the planning to add more
features within the other cities.

 Train and keep highly skilled employees

This is universal truth that skilled employees are knows as the asset of organization. These are
effective to add the values within the product and bring more business as develop effective
relationship with customers. This will be effective for the Chipotle Mexican Grill in UAE to
provide the training to employees on continue basis and give them competitive salaries as per the
market. This will bring the more opportunities for business to maintain the required level of
employee’s retention.

 Delivery services

Customers prefer the new technologies due to the changing socio economic environment. People
like the food on their doorstep in place of traveling and waiting within the lines. Chipotle
Mexican Grill has created the partnership with the Door Dash regarding delivery of services.
This will be important for the Chipotle Mexican Grill in UAE to invest within the deliver
services to stand and compete within the market.

Threats
Threats are known as the external factors and hurt the business. Threats for the Chipotle Mexican
Grill are as follow.

 Unhealthy food violation

Chipotle Mexican Grill has a very good history of violating the safety and health standards. This
happened many time over the timer period as people got ill after eating the food from its sub-
branches. This is known as the miracle as organization is still within the market and earning
profits. These kinds of scandals and incidents are known as the disastrous to life of an
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organization. Chipotle Mexican Grill should take these kinds of incidents very serious and
confirm that these kinds of incidents should not take place again.

 Highlight legal challenges

Chipotle Mexican Grill falsely claims that is has low calories within the products. This is wrong
and away from reality of truth. This organization should remain careful with the particular legal
proceeding in running nations and expanding nations such as UAE.

 Difficulties in retention of employees

Chipotle Mexican Grill is not investing regularly within the career of employees and
management as hire workers temporarily. The company should focus on to retain skilled
employees and management. This will help business to gain the competitive advantage and earn
the profit at high level.

 Inconsistent supply chain

Laws regarding protection of employees are regularly becoming tougher that creates the
difficulties for the Chipotle Mexican Grill to have the stable and reliable supplier. This put the
entire business within the jeopardy as while customers are within the restaurant the need desire
food.

 Strong competitors

The business and competitors within the food industry is regularly growing. Competitors are
dividing the entire market shares that have a very big impact on the individual businesses. This
will be important for the business in UAE to change according the markets and implement the
effective strategies.

Market research
Chipotle Mexican Grill is known as the publically trading organization of American origins. This
is an eating joint regarding fast food product and associated with the industry of food and
beverage. Unique sales position of the business is that it known as the highly acclaimed brand
which uses organic and natural ingredients (Yusuf, Shukor, and Bustamam, 2016).
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Product
Chipotle Mexican Grill offers many Mexican flavored food products within a sophisticated style
to customers. This offers integrated fine casual dining with casual and fast food items with
unique and different experience to customers. This company offers a limited menu with the six
dishes but includes the lots of varieties within it.

The company focuses to implement more within the restaurant programs such as recycling and
compost regarding food packaging disposal. This organization has the objective to maintain 100
percent recycling of waste and use more than 20 percent composting products [CITATION Foo20 \l
1033 ].

This organization in UAE should focus and give more attention to provide the optimum quality
products. It will force the customers to visit again and again. The company should offer Chips
with dips, margaritas, and soft drinks with the many dishes. For toddlers it should offer the
special kids menu.

The company has website that offer the full disclosure regarding use of ingredients. Fresh
ingredients are appropriate within the every store and supplied through the farmers and suppliers
at local level. Products which included within the menu card of Chipotle Mexican Grill are
described below.

 Crispy Corn Tacos

It includes three shells of crispy variety with the choice of cheese, salsa, and meat.

 Burrito

This is a flour tortilla with many choices of cheese, sour cream, meat, beans rice, and salsa.

 Burrito bowl

This is served within a bowl and includes options such as cream, salsa, and beans.

 Salad
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This is served as a chopped lettuce which created by the choices of customers and ingredients
such as cream, beans, and salsa.

 Sot flour tacos

This includes soft flour three tortillas with the choice of cheese, sour cream, and romaine lettuce.

 Kids menu

This includes the options according the preference such as seasonal fruits, chips, juice, and
organic milk.

BCG matrix
This will be effective for the Chipotle Mexican Grill in UAE to evaluate product line through
assessing their potential growth within the market. The products for the organization can be
classified within the following categories.
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 Stars

Products with the high potential growth has big level of share within the market are classified as
the stars. Chipotle Mexican Grill should regularly increase investment after including the stars
within the product lines.

 Question marks

These are products with the high market growth but low share are considered as the questions
marks. This will be good for the Chipotle Mexican Grill to analyze the reasons of low share
within the market despite the high rate of growth such as related menu to kids and breakfast
burritos.

 Cash cows

Products with the low growth but high share within the market are known as the cash cows
which required to be milked for regular good performance within the market of UAE with
limited opportunities and low growth such as burrito Bowls, Crispy Corn Tacos, Sot flour tacos,
and Burrito.

 Dogs

These include the products that have low market share and growth and divest difficulties to make
the profits and gain the adequate return through investing within the dogs such as alcoholic
beverages.

The high number of stars and cash cows will present the good performance and high number of
dogs and questions marks will create the concern for Chipotle Mexican grill. Classification of the
products will work for the business and necessary to evaluate the market strategy success of
Chipotle Mexican Grill in UAE.

Place
This organization is known as the international chain of fast food products (Hassan, 2012). This
organization at the starting phase catered to the only United State customers. This organization
has started global expansion plans in locations such as Paris within the France, Langley in
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Canada, London within the United Kingdom and many more. This organization has started first
restaurant within the Denver in Colorado. In present organization have stores in more than 2250
locations.

Retail strategy for the Chipotle Mexican grill will include to reaching more people through
appropriate distribution of services. In UAE, it will focus on the website, contest, email
marketing, food application, and use the social media marketing at high level. This organization
will provide the services to customers to order food from website and option of tracking which
help customers to find the outlet near their areas very easily. This organization will provide the
effective arrangement of seating with the fast and effective services. It will display the
ingredients and customers will have the option to watch the process of making of dishes. This
organization has a field support team which includes the regional directors, directors of team,
area manager, leaders of team and apprentice leader of team which will help the business to open
the new outlet in UAE. The field team will have the duty to hire and manage the new general
manager regarding new restaurant. Chain of business is owned at corporate level which will help
to corporate store handle selection and find place for new store and provide the funds.

Price
This element of marketing strategy needs an evaluation regarding value of products to targeted
customers (Madichie, and Gallant, 2012). The pricing strategy for the Chipotle Mexican grill will
focus to set the price lists, terms of credit, periods of payment and discounts. The company
should use the price penetration strategy as it will help it to set the low price compare to
competitors. This organization will remain capable to win the share within the market on the
basis of discounted pricing. This will be important for the business to remain aware about the
potential relations from rivals in UAE regarding undesired war of price. The company will
introduce the allowances in which it lowers the values for small time period to attract more
customers and gain the share within the UAE market. This will focus on to minimize the
percentage of values of its products.

Promotion
This is known as the important element for businesses marketing strategies (Azzam, and Rettab,
2013). Chipotle Mexican grill promotional plan will include the many factors according the pull
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and push strategy. The promotion strategies like pull and push strategy will work for the business
to attract more bases of customers. This organization will create the content of message and
evaluate the crafted messages that help to create the important image for offered products. The
promotional strategy for the business will include the direct selling with high profile digital
advertising and suit to push the products. The pull strategy for the business will work to develop
the prestigious image of brand which attracts the more customers through digital marketing
methods and offer many products.

Conclusion & recommendations

In the limelight of the discussion it can be concluded that Chipotle Mexican grill will gain the
success within the market of UAE. Strong and strict budgetary controls at financial level will
help the business to run smoothly with expansion without any financial issues. Management of
the company should focus to provide the training to employees and management to serve
customers. This will work for the business to attract more customers and gain the success within
the competitive market of UAE. This organization should focus on the more advertisement
which helps it to serve more customers as an effective channel of distribution. Management of
Chipotle Mexican grill in UAE should also focus on the product differentiations that help to gain
the competitive advantage. This organization has good corporate image with the long term
relationship with suppliers that make it easy to make the proper plans for expansion and execute
them effectively. The appropriate marketing plan will help business to revolutionize the business
within the market of UAE.
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