CH 6. - Consumer Decision Making

     Companies should not fool themselves into believing that everyone wants to hear a green marketing message. Chipotle fully understands that the three most important factors in the consumer decision-making process for its products are price, taste and location. If it doesn’t get these factors right, then nothing else will matter.   

     In general, studies have found that millennials ages 18 to 34 do have higher expectations for ethical behavior by the companies with which they do business and are more receptive to green marketing messages. However, even among millennials, about one-third of this segment reports that, there are too many causes and it’s overwhelming, and, words like “green,” “eco,” “natural” and “sustainable” are so overused that they are almost meaningless.

     According to The Intelligence Group’s “Cassandra Report,” which studies the habits of the millennial generation, more than 60% of millennials report that they want brands that follow ethical practices and align with social causes. However, only 9% often make an effort to buy green products, while 36% report that they rarely or never make an effort to buy green products, according to “An Examination of Marketing Techiniques That Influence Millennials’ Perceptions of Whether a Product is Environmentally Friendly,” published in the Journal of Strategic Marketing. Therefore, green marketing messaging should be targeted at a narrow segment of the population as a whole, and such messages appear to be better received by a subsegment of the millennial demographic overall. 

     Espey says that only an estimated 5% of Chipotle’s customers have any significant depth of knowledge about the company’s Food With Integrity efforts. While Chipotle is devising marketing efforts to improve those awareness levels, the company understands the constraints and is not deluded to think that it can change this dramatically. 

     However, it may be more likely that those customers who do learn about sustainability efforts will become brand evangelists with high word of mouth activity. Chipotle reaches out to these customers through extensive use of social media including Twitter, Facebook and YouTube to spread its green message. The company’s Facebook page has received more than 2 million ‘likes.’  

     Chipotle also has “student brand managers,” on-campus brand ambassadors who are dedicated to “changing the way people think about and eat fast food” through grassroots marketing efforts aided by a local Chipotle marketing rep. Seeking permission to have a deeper and more intimate conversation with these key customers has the potential to significantly increase overall awareness and importance of sustainable food production issues among Chipotle’s customers and, in turn, build a significant cult-like following among the company’s most loyalty customers.

Developing a Global Vision

   Global Marketing is defined as marketing that targets markets throughout the world. Many Firms have the long term goal of establishing international markets to futher expand the buinesses worldwide. With this mindset Global Vision comes into play.
   Companies such as Chipotle Mexican Grill, have been fortunate to be able to start of in one location and branch of to other locations and eventually expand into international markets. Chipotle restaurants are located in a variety of places around the world including the United States, United Kingdom and Canada.
   Culture is a very integral part of the business as the company prides itself on its natural ingredients, responsible farming, and recycling. Chipotle's bags and napkins are 100 % paper recycled.
   Global Vision means recognizing and reacting to international marketing opportunities, using effective global marketing startegies, and being aware of threats from foreign competitors in all markets.

The Marketing Environment

    Chipotle Mexican Grill is a unique eatery. In a world of fast food and a lack of true consideration of consumer health, the restaurant pursues a different direction. The company positions itself as fast-casual food. This new, up-and-coming breed of dining commits itself to the customer time constraints as well as a positive environment. Customers can obtain their food in a short period of time, but can enjoy the more sophisticated atmosphere of the restaurant if they choose to stay and eat at the restaurant itself. Every Chipotle Mexican Grill is decorated with metal and light wood although every restaurant is unique in its set up. With this color scheme, the restaurant conveys a modern attitude to its customers.

Beyond its elegance in comparison to most, if not all, fast food establishments, Chipotle offers a level of customization to its meals in a simple manner. Although their menu only technically consists of three options (burrito, tacos, burrito bowl), Chipotle offers consumers over 65,000 combinations.  This is accomplished through their cafeteria line of ingredients including various meats, salsas, and extras like cheese and corn. Thus, at Chipotle, everyone can get exactly what they want in the way that they want it all while remaining different and unique from their friends who accompany them.

Ethics and social responsibility

  Chipotle is a company based on integrity. Integrity is about being real and being honest. It means doing the right thing even when no one is watching. These values permeate the way we do, and do not do, business.

  You are expected to use good judgment, adhere to high ethical standards, and avoid situations that create an actual or perceived conflict between your personal interests and those of Chipotle. Chipotle requires that the transactions you participate in are ethical and within the law, both in letter and in spirit. When in doubt, consult with your Manager/Director or the People Support Department. They will determine if a conflict exists and establish controls to prevent abuse or, if such control is not feasible, they may require that you terminate the activity in question or divest your interest in any relevant transaction. No matter what, each of us must accept personal responsibility for doing the right thing.

  Conflicts of interests or unethical behavior may take many forms. In the simplest terms, you should act for the long-term benefit of our customers and Chipotle, never for personal gain, or to favor family or friends. What follows are some of the key principles of ethical and conflict-free conduct. There is no way to develop a single set of rules to cover all situations. Rather, this policy outlines basic guidelines for ethical behavior at Chipotle. It does not replace good judgment.

  Just as important as the ethic concerns, Chipotle also cares about the social and environmental responsibilities of the business. Corporations of any size should give back to the community they operate in, in one way or another. A great example of this is Chipotle’s initiative to support local family farms. 
Good business means participating in value adding actions. You should never expense dollars on something that will not add value, either directly or indirectly, to your company. When it comes to performing a social good, many companies feel a pressure from society and therefore create campaigns out of reaction. Their justification is image-based and in many cases does produce value, only on a shallow level and for a short-lived time span.
  Chipotle’s investments in local farms is a great example of social responsibilities. This isn’t just a campaign to put Chipotle in a good light with the public, but it bolsters small farms that grow fresh produce and in turn creates value adding relationships with these food chains. Chipotle has pledged to use 10 million pounds of local produce while initiating a marketing campaign to inform consumers of the “disappearing” small family farm. This not only helps these small farms (the social good), but it creates a sustainable relationship between business and supplier, gives Chipotle some camera time, and allows them to continue to cook great food using fresh ingredients. 

Strategic Planning for Competitive Advantage

     Within the text the marketing plan elements are discussed in debt and explains how a strategic plan can help protect and grow the firms resources.  We dive further into how to fully execute a companies mission statement  and discuss the importance of strategic planning and having a competitive advantage.

     Strategic Planning is the managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities. 

     A Competitive Advantage is a set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition. It is a factor or factors that causes customers to patronized a firm and not the competition. There are three types of competitive advantage. These different types are cost, product/service differentiation, and niche.

     Companies like Chipotle Mexican Grill have a diverse menu that caters to the needs and wants of the consumer. Many customers love chipotles diverse menu options that let the consumer mix and match thier meals to their liking. This comes in handy especially for when it comes to respecting cultures around the world for example some consumers do not eat pork due to relgious reasons. This is an advantage that chipotle has against its competitors, the option to choose what meat or form of meal the consumer prefers.

Chipotle Grill Inc. Mission Statement

The company has released a mission statement called Food with Integrity, which highlights its efforts in using organic ingredients, and serves more naturally raised meat than any other restaurant chain. Chipotle is one of the first chains of fast casual dining establishments.  Created by Chef Steve Ells, who trained at the Culinary Institute of America and later worked at the San francisco gourmet restaurant Stars under Jeremiah Tower, the restaurant was inspired by the many taquerias of the city's Mission District.  

Brief history of Chipotle Mexican grill, Inc.

Chipotle Mexican Grill, Inc. is one of the leading fast-casual Mexican restaurant chains, with approximately 400 outlets in about 20 states, mainly in the West and Midwest. Known for its fresh, gourmet, and increasingly organic ingredients, Chipotle offers a fairly simple menu of burritos, fajitas, and tacos featuring pork, shredded beef, chicken, steak, and vegetarian fillings. Customer checks average about $8.50. From a single location in Denver, Colorado, in 1993, the chain is now growing at the rate of 100 new restaurants per year thanks to the deep pockets of its parent, fast-food giant McDonald's Corporation. McDonald's first invested in the company in 1998, before taking majority control the following year, and it now holds a 90 percent stake. The vast majority of Chipotle restaurants are company-owned; fewer than ten are franchised. Annual revenues per unit are an estimated $1.2 million.