' 0

Aaron Van Winkle 810-17-0559

Principles of Advertising

Individual Campaign Project: Chipotle Burritos

Chipotle: Big Burritos

I. Executive Summary/Situation Analysis

This advertising plan for Chipotle restaurants presents an analysis of the company

and its history, its target market, its previous advertising endeavors, and a promotional

strategy. This promotional strategy is further outlined by the examples of proposed

Chipotle ads included at the end of this document.

In 1993, Steve Ells, inspired by the taquerias and Mission District burritos of San

Francisco, opened the first Chipotle Mexican Grill near the University of Denver.

Chipotle was founded with an emphasis on fast, fresh food; in the last five years, the

chain has broadened its scope in the natural-foods category by incorporating local

organic farmers and ranchers into its supply chain. This fresh and natural approach has

endeared Chipotle to a young and active demographic, and the large, foil-wrapped

burritos have found more general appeal, as well. Chipotle quickly expanded to be the

industry leader in the new category of "fast-casual" dining.

The company started by marketing towards college students; indeed, much of its

early expansion focused on college towns and university neighborhoods. As word

spread, Chipotle started expanding at an incredible rate, and built new locations in urban

and suburban neighborhoods; there are now Chipotle restaurants in 3 8 states and one

Canadian province. The McDonald's Corporation purchased a majority of the company's

stock in 2001, but by 2006 had fully divested their shares, leaving Chipotle as an

independent entity once more.

Chipotle has always had an emphasis on fresh ingredients; that emphasis was

'------'

further refined in 2001, when the company released a new mission statement, entitled

Food With Integrity. In 1999, CEO Steve Ells had been shocked at the conditions present

at Chipotle's meat suppliers, known as Concentrated Animal Feeding Operations, which

spurred him to search out viable organic alternatives. Today, Chipotle is committed to

using naturally and humanely raised pork, beef, and chicken, and outsources a large

portion of its produce production to local organic farmers in each region. This

commitment has been very well-received by Chipotle customers; sales of carnitas pork

rose dramatically when the chain announced it was using organic, humane ranchers,

despite the raise in price for pork-based menu items. Common sentiments amongst

Chipotle consumers have been "Chipotle is the only chain I patronize" and "I'm no huge

fan of chain places, but there's a reason this place is so popular."

Chipotle's advertising, up until2008, was based on the selling ideal that "we have

BIG burritos." Their natural-food approach to cuisine was emphasized in-store, through

point-of-sale posters and brochures, but the emphasis of the company's advertising was

on their large, foil-wrapped burritos. The company has completely eschewed television

advertising, preferring to concentrate on billboards, radio ads, and word-of-mouth. One

example of the company's approach can be seen in a billboard ad from 2007; the ad

simply features a large, foil-wrapped burrito, the company's logo, and the words "It beeps

when it backs up".

In 2008, reacting to a declining economy, the company dropped its simple "foil­

wrapped-burrito" campaign in favor of a campaign that emphasized value. Chipotle

menus started featuring a "low-roller" menu in which customers could choose from

several smaller portion meals for a reduced price. Billboard ads started featuring bright

colors, and the company's logo was changed to a more basic script. This campaign was

roundly criticized, even inspiring a website called "cheapotle.com" which encouraged the

company to "bring back the ads with balls". Despite the surprising public outcry, the

\.._..., company continued this campaign until2010.

In 2010, the company decided to eschew outside ad agencies, and do all

advertising in-house. A new emphasis on radio ads over the previous billboard

campaigns ensued; the new ads feature a soft-spoken announcer who mocks the advice

given to the company by ad agencies, asserting that the chain's fresh, delicious

ingredients speak for themselves. This campaign has not generated the backlash of the

previous "low-roller menu" promotions, but has failed to generate very much in the way

of buzz, either positive or negative.

The strengths of the Chipotle brand are many: the company is the largest "fast-

casual" chain in a growing market; the iconic foil-wrapped burrito is generally associated

with Chipotle in the public's mind; the company's focus on natural, free-range ingredients

\..__, is a huge positive in an industry which is associated with junk food; and promotion

through word-of-mouth has been phenomenal, indicating that their product has universal

appeal. The main weaknesses of the Chipotle brand lie in its recent advertising

campaigns; the company has strayed away from the iconic ads which helped establish the

brand, and in the last two years, has created advertising that is not immediately

recognizable or iconic. The present opportunity for Chipotle is to re-establish the iconic

imagery that the company came to be associated with, namely, the foil-wrapped burrito-

this would help cement the brand as a cultural institution, much the same way that the

"Golden Arches" have come to culturally symbolize McDonald's. The threat to Chipotle

currently lies with its competitors such as Qdoba, Illegal Pete's, and Extreme Burrito;

Qdoba in particular has recently started an aggressive and creative ad campaign which

threatens the market share of Chipotle. However, Qdoba's campaign lacks distinctive

imagery, or a consistent message. This campaign directly combats Qdoba by

hcvv- ~ ~~ kM C11V "J? ~J? so-b ~~

'

\..___..,

~

L

emphasizing Chipotle's historic roots in the marketplace, with simple, consistent

messages.

II. Marketing Strategy

The product strategy for Chipotle centers on the company's iconic burritos and

fresh ingredients. The placement strategy will focus on visibility and economy, with

billboards re-emphasized as a primary focus. Pricing is determined by Chipotle; no

adjustments are needed there - Chipotle has always been competitively priced in the

"fast-casual" industry. Price elements such as the "low-roller" menu will be forsaken in

favor of an emphasis on ingredient quality, portion size, and iconic imagery, and will

skew to a primarily 18-35-year-old male demographic. As burritos are the primary seller

in the marketplace, this product will be emphasized above all others; instead of pushing

less-popular items, it will mention them as a possible alternative, but will emphasize the

Chipotle brand as THE burrito restaurant. It is the goal of this campaign to establish the

Chipotle brand as the market leader in burritos; when the public thinks about burritos, we

want them to instantly think of Chipotle. Sales will be driven by reminding the public

that Chipotle simply has the best, freshest, biggest burritos in town, and always has.

III. Advertising/Promotional Campaign Objectives

To re-establish the foil-wrapped burrito as the symbol of Chipotle

To create a public perception of Chipotle as the "burrito leader"

To refer to the fresh, natural ingredients the company uses

To combat the aggressive, busy marketing push by Chipotle's competitors,

Qdoba in particular, with a bold, simple campaign that is distinct and

memorable

\.......i

\...___..-

To create bold, memorable, simple images and phrases which emphasize the

public's connection between "fast-casual" burritos and the Chipotle brand

IV. Campaign Strategy Statement

Chipotle's target market has traditionally been young, active professionals with an

interest in being both "hip" and socially responsible. The primary VALS type to which

the company markets would be the "Experiencers" category: active lifestyles with an

interest in staying "hip". The secondary VALS type would be the "Thinkers" category:

educated idealists who are practical and value-minded. However, it is dangerous to

pigeonhole Chipotle's target market into too small a space; while placing a slight

emphasis on the types listed above, the company strives to be universal in appeal, which

is highlighted by their more recent, more bland ad campaigns. Chipotle has a widespread

appeal, but gets most of its market share from males ag~e positioning

strategy places Chipotle as the industry leader in Mexican (indeed, all) "fast-casual"

dining, and endeavors to persuade the public to think of Chipotle when they think of

burritos.

The Big Idea of the campaign is that of simple, iconic imagery. It is the

contention of this proposal that the foil-wrapped burrito campaign that the company put

forth until recently was an ingenious branding tool; the foil-wrapped burrito was on its

way to representing Chipotle in much the same way Mr. Peanut represents Planters Nuts.

Essentially, the burrito had become a trade character much like Snap, Crackle, and Pop -

a tough job when your character is inanimate. The goal of this campaign is to re-

establish the foil-wrapped burrito as a trade character just two years after its

disappearance from Chipotle advertising.

The campaign will use simple, humorous messages combined with the iconic

(){)

~

~

burrito; the sparse use of words and images will emphasize the foil-wrapped burrito as

\._..; the focus of the campaign and the main draw of the restaurant. Quick catchphrases

combined with the simple imagery will make for an easily-digested message: Chipotle

burritos are big, healthy, and fun.

V. Media Placement Strategy

This campaign will re-emphasize billboards as a primary medium to distribute

Chipotle's message and image. Billboards will be placed along major commuting

highways, as well as the sides of downtown buildings. Radio ads will be slightly de-

emphasized, and placed on three kinds of station formats: sports talk radio, classic rock,

and hit-oriented pop radio. Print ads will be sparse, and will mainly include Village

Voice-type local weekly newspapers such as Westword, as well as free ad-supported

~ dailies such as the Denver Daily News. The emphasis will be on economy and visibility;

Chipotle has traditionally spent the same amount on advertising annually that

McDonald's spends in 48 hours- this will continue under this strategy. A sample

television ad has been included, but the company has always shied away from TV

advertising, and it is my recommendation that they continue to do so, in order to keep the

budget low.

('(\~ ¥+ ~ ~ ~CA

L

\..___; Project: Chipotle Burritos Spot Name: Big Burritos Date: Dec 2, 2010 LENGTH: :30

VO: Bob.

Man: Um ... yes?

VO: You're hungry.

Man: .. .1 feel kinda hungry ...

VO: You've very hungry.

Man: I'm freakin' starving!

VO: You should go to-

Radio Spot

../

Man: (Interrupts) I should go to Chipotle for a BIG BURRITO!

\.._./ VO: YES. At Chipotle, they use healthy ingredients and -

Man: (more excited) FRESH!!! Chipotle makes me feel great!

VO: Grilled steak, farm-raised chicken and pork -

Man: Barbacoa beef!

VO: Tacos, quesadillas, fresh bowls -

Man: Burritos as big as my head!

VO: Yes. BIG BURRITOS.

Man: I'm going to Chipotle right now! BIG BURRITOS!!!!

VO: Chipotle. Fresh. Tasty. BIG BURRITOS.

Man: Big burritos!

VO: BIG BURRITOS.

\.......!

-t . ~~~

1'\oh ~. t·,-tn ~A.. our vr

'Dl' c9-~~''\~ . II

~~fot ~ ll)J ,. -tiw w(

~

Sample 15-second TV spot

EXT. Starfield

Music: Richard Strauss- Thus Spake Zarathustra (2001: A Space Odyssey)

(The camera pans down over a stretch of empty space. Slowly, a tumbling, foil-wrapped Chipotle burrito floats into view from the bottom of the frame. A small Apollo moon lander descends into the shot from the top of the frame)

Astronaut's voice: (beep) Houston, we have the burrito in sight.

Houston: (beep) Roger that, Appetite One.

Astronaut: (beep) Starting our descent.

Houston: (beep) Exercise caution, Appetite One, that's a big burrito.

Astronaut: (beep) Roger that, Houston. Big burrito. Looks fresh.

Houston: (beep) Roger that, Appetite. Big, fresh burrito.

Astronaut: (beep) Houston, we're going in.

(The lander descends towards the burrito as the music swells. Three words appear over the whole frame: CHIPOTLE BIG BURRITOS)

fade out

/ t

rRINTAD

"---' CHIPOTLE MEXICAN GRILL

lf4-page box

"Big Burritos"

VISUAL: Foil-wrapped oversize burrito in front of a miniature, puzzled weightlifter

HEADLINE: Work out your physique ... and your hunger

COPY: You want to eat healthy. You also want to eat yummy. A~otle, we use only farm-fresh veggies and ranch-raised meats to ensure that your lunchtime is a~ime. Our tacos, salads, bowls, and burritos satisfy the heartiest cravings in a healthy way. Oh yt- they're big, too.

LOGO:

BASELINE:

MANDATORIES:

\~ ~

p~ of ~

vi-j: # do ~(Y'- • tl

~ ~0"'- \P) ? ,., CHIPOTLE MEXICAN GRILL

Big Burritos

(none)

WORK OUT YOUR PHYSIQUE ...

t>-crt-;.~"#5 ( bv< .

'"' J \P ~ 01"

Jf ~ .-~r rU fA t?'V'

(}

... AND YOUR HUNGER

~

C!Aipotle BIG BURRITOS

s~1dumxa

p.rnoqnm:

a. ~ ::) m > 1-...1 <C

:I: <C

* • w N I Vl _J <( ::> 1-u <(

• > ..I ex <C _, ::)

"' ::) 1-Q z <C

• > ..I ..I <C al 0 ..1

" ~ z .... :c 1-

•

...1 LLI