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Narrative Chipotle

Name

Institution
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Company Overview

Chipotle is an American restaurant serving Mexican cuisines, including tacos, burritos,

salads, and tortillas. Recently, Chipotle added menu items, including chiptopia and chorizo.

Inspired by Mexican dishes, Steve Ells began Chipotle in Denver, Colorado, in 1993 (Fast

Company Inc, 2021). Since then, the company has grown across the USA to over 2,000 fast food

outlets (Fast Company Inc, 2021). People know Chipotle for its value-based culture,

characterized by ethical sourcing, serving food with integrity, and partnering with ethically-

minded partners, including suppliers (Alhadlaq, 2016). The appealing culture at Chipotle is a

major factor that drives its admiration in the business market (Walker & Merkley, 2017). This

report is a qualitative and quantitative survey using Qualtrics to inform the company on the

marketing and human resource decisions. 

Target Audience Background

Chipotle prioritizes the young generation because of its enthusiasm to try new aspects. As

a result, most Chipotle's guests are younger professional millennials Generation Z in their late

teens and mid-twenties (Gilliard, Hoffman, & Baalbaki, 2017). In addition, this consumer group

loves to make their meals, specifically using healthy ingredients (Alhadlaq, 2016). Therefore,

this manifests that Chipotle's target markets are fun lovers and health-conscious, explaining why

they use fresh ingredients in the food preparation. 

Half of Chipotle target audience is Generation Z and millennials. In the USA, millennials

and Gen Z account for nearly 40% of the population (Lalley, 2020). Therefore, this demographic
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group represents a sizeable market for Chipotle. In addition, most young people eat in fast-food

restaurants with a cool atmosphere and experiences.

Although the millennials are part of the ideal customers, Generation Z is the prime

customer target. Generation Z is a tech-savvy and digital native group (Lalley, 2020). On

average, nearly half of this consumer group are connected online for at least 10 hours daily on

the internet platforms (Lalley, 2020). Therefore, this provides a great opportunity for Chipotle to

target consumers using a digital marketing strategy. Currently, fans can use TikTok to view

online ads. The company also provides free delivery on its website and app each weekend for all

orders valued at approximately $10 (Lalley, 2020). However, the free delivery is not valid for

orders made via third-party channels.

Statistical Demographic Profile of Chipotle's Customers

Consumers of all demographic profiles eat at Chipotle. Therefore, an analysis of

demographic statistical profiles is critical to determine the ideal target markets to exploits. The

following tables and graphs illustrate the consumer demographic profile:

Demographic Profile based on Age Group

Age Group Index

Under 24 189

25- 34 146

35- 44 108

45- 54 92

55- 64 60

65+ 38
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Age Group
200
180
160
140
120
100
80
60
40
20
0
Under 24 25- 34 35- 44 45- 54 55- 64 65+

Ethnic Profile

Ethnicity Index

Hispanic 138

Asian 144

Caucasian 85

Afro American 160

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Ethnicity Profile
180
160
140
120
100
80
60
40
20
0
Hispanic Asian Caucasian Afro American

Income Profile

Income ($) Index

Under 20k 88

20k- 39k 87

40k- 59k 98

60k- 79k 99

80k- 99k 101

100k- 124k 110

125k+ 121
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Income Profile
140

120

100

80

60

40

20

0
Under 20k 20k- 39k 40k- 59k 60k- 79k 80k- 99k 100k- 124k 125k+

Education Profile

Education attainment Index

No College 67

College or degree 103

Advanced degree 123

Education Level
140

120

100

80

60

40

20

0
No College College or degree Advanced degree
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Family Status

Kids or no kids Index

With kids 102

Without kids 98

Without/ With Kids

103

102

101

100

99

98

97

96
With kids Without kids

Purchase Cycles, Basket Units, and Basket Size

At Chipotle, the customers on average purchase 2.4 units at each purchase cycle. On

average, the purchase cycle is 79.9. In addition, the average price for the basket of goods

purchased is $13.74. The following table and graphs provide an overview of the purchase cycles,

basket units, and basket size:

Basket Size (Units) 79.9

Purchase Cycles 2.4

Basket Size ($) 13.74

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Purchase Cycles and Sizes

90
80
70
60
50
40
30
20
10
0
Basket Size (Units) Purchase Cycles Basket Size ($)

Connecting Chipotle to Generation Z

Recently, Chipotle unleashed a personalized marketing ad to connect to its target

customers, Gen Z (Lalley, 2020). Chipotle seeks to increase customer engagement in its

marketing efforts, drive online traffic, and deliver seamless customer experiences. The company

will give rewards to customers to make them excited about the service and product

personalization (Walker & Merkley, 2017). As of early 2020, Chipotle had 8.5 million eligible

members to win rewards in its reward program (Lalley, 2020). The loyalty program seeks to

encounter its audience use the Chipotle app and website in marketing (Williams, 2021). Unlike

third-party platforms, ordering for foods using Chipotle's platforms will draw many benefits. A

major advantage of this ad campaign is that it will improve brand popularity and overreliance on

third-party platforms in building its market (Walker & Merkley, 2017). In addition, Chipotle

saves money if the audience uses its online platforms for services or products (Gill, 2017).

Chipotle platforms also present a better opportunity for it to engage with the customers.

Customer engagement is an effective way for a company to understand its specific needs and

provide personalized experiences.

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Chipotle Manifesting Itself as a Healthier Option and Sustainable Brand

Recently, Chipotle unveiled a super bowl ad to highlight its social and environmental

sustainability (Williams, 2021). Chipotle began its super bowl ad in February 2021. In this

campaign, Chipotle markets itself as a brand committed to serving "food with integrity" while

cutting carbon emissions, supporting local farmers, and saving water (Williams, 2021). A

sustainability campaign is vital to create a positive impression on customers.

Chipotle's recent announcements were to waive delivery fees on orders made via its

website and app. In addition, Chipotle announced to donate $1 to young local farmers for every

unit ordered (Williams, 2021). Customers are also to receive promotions if their order total meets

the minimum set criteria. In addition, Chipotle adopted a humorous tone in its campaign ads,

allowing the company to resonate with young consumers and fan lovers (Gill, 2017). The super

bowl ad campaign also emphasizes social justice promotion (Williams, 2021). Emphasis on

social justice allows Chipotle to highlight to the audience how it helps people and the

communities surrounding it. 

Chipotle's decision to invest in a video ad campaign saw 14.1% growth in June-

September 2020, amid the COVID-19 pandemic (Williams, 2021). In addition, online sales

tripped in the same period, reflecting the shifting consumer behaviors towards internet shopping.

Undeniably, the COVID-19 was an opportunity to drive online sales because of restrictive

measures, including bans of public gatherings and physical distancing. As these measures remain

in place, the super bowl will continue maintaining its popularity and improving brand awareness

among the audience. Chipotle also aligns itself with business associates with a positive

reputation (Williams, 2021). For example, its collaboration with healthy brands creates an
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impression that Chipotle stands for a positive cause. Therefore, this may explain why Chipotle

continues to popularize its brand.

Sticking With a Narrative Theme

Chipotle is sticking to its theme by showcasing its sustainability efforts. In this super

bowl campaign, Chipotle maintains a theme, reflecting its belief on how the COVID-19

pandemic disrupted the markets, including changing consumer behavior (Williams, 2021). Its

theme also reflects how it cares for communities. For example, advertisements in this ad

campaign show how Chipotle commits resources to local farmers by offering financial assistance

to various farmer groups (Gill, 2017). Chipotle offered at least 5 million to support local

community members (Williams, 2021). In addition, Chipotle's actions, including buying food

ingredients from the ethically sourced and humanely grown supplies from the local farmers,

reflect its theme of integrity.

User-Generated Content

The marketing ad content is compatible with the target audience, especially super bowl

fans and viewers. When the super bowl event started on February 7, 2012, nearly two-thirds of

the American adults viewed it (Williams, 2021). In addition, approximately 60% of the viewers

acknowledged that brands should support social justice causes (Williams, 2021). Apart from

watching ads that support social causes, the target audience also loves fun and being entertained.

According to a survey, at least 63 of the super bowl viewers cited entertainment as the primary

reason for their viewership (Williams, 2021). Therefore, Chipotle had to make its ad campaign

appealing and fascinating to the audience. Exciting campaigns also improve customer

experience. 

Conclusion
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Chipotle is optimizing offensive marketing tactics amid growing competition to

distinguish itself as a sustainable and social-centric brand. Conclusively, Chipotle relies on

reputational marketing and branding to improve the brand's competitive status amid competition.

In its history, Chipotle has crafted a unique reputation manifesting itself as an ethical brand.

Therefore, this creates a positive image and attracts customer loyalty. Market position

improvement using a loyalty program compatible with encouraging customers to order its food

items using its website and app is also an aggressive tactic to strengthen its brand visibility. In

addition, its platforms provide a strategic opportunity to foster brand engagement in the market.

As a result, this could improve Chipotle's sales and profit margins. Chipotle's great image also

reflects as a great workplace to work in. Undoubtedly, many people love working in businesses

committed to ethical values.

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References

Alhadlaq, I. (2016). Chipotle's Strategic Marketing.

https://www.ijser.org/researchpaper/Chipotles-Strategic-Marketing.pdf

Fast Company Inc. (2021). Chipotle. https://www.fastcompany.com/company/chipotle

Gill, M. S. (2017). Essays on the Causal Analysis of Strategic Marketing Actions. The

Pennsylvania State University.

https://etda.libraries.psu.edu/files/final_submissions/14541

Gilliard, D. J., Hoffman, D. L., & Baalbaki, S. (2017). Is chipotle mexican grill successfully

recovering from its food-related incidents?. Journal of Marketing Development and

Competitiveness, 11(4), 34-48. http://m.www.na-businesspress.com/JMDC/JMDC11-

4/GilliardDJ_11_4_.pdf

Lalley, H. (2020). Chipotle Crafts a Targeted-Marketing Strategy.

https://www.restaurantbusinessonline.com/marketing/chipotle-crafts-targeted-marketing-

strategy

Numerator. (2021). Chipotle. https://snapshot.numerator.com/retailer/chipotle

QSR. (2020). Chipotle Mexican Grill Launches 'TikTok Timeout' Ad Campaign.

https://www.qsrmagazine.com/news/chipotle-mexican-grill-launches-tiktok-timeout-ad-

campaign

Williams, R. (2021). Chipotle's Debut Super Bowl Spot Highlights Support for Local Farmers.

https://www.marketingdive.com/news/chipotles-debut-super-bowl-spot-highlights-

support-for-local-farmers/593855/
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Walker, R., & Merkley, G. (2017). Chipotle Mexican Grill: Food with Integrity?. Kellogg School

of Management Cases.

https://www.reachcambridge.com/wp-content/uploads/2017/06/Mexican-Grill-Case-

study.pdf