Chipotle Digital Marketing Presentation
- 1. Digital Marketing: A presentation by Linda Moreno, Sujun Liu, Yao Xie, Julian Gross, and Jasmine Jones
- 3. Market Segmentation 42% Burgers 14% Sandwiches 10% Chicken 10% Asian 9% Pizza 8% Mexican 7% Other
- 5. 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.
- 6. Background ● Food with Integrity ● Focused on sustainability ● “Food served fast didn’t have to be fast food”
- 9. Challenge: Chipotle v. E Coli ● 58 people infected ● 21 hospitalized ● 1,900 store closures ● 9 lawsuits ● 30% drop in sales
- 10. How does Chipotle use Digital Marketing?
- 12. Website: Clean, fresh, and mobile friendly
- 14. SEO: Mexican Food vs. Mexican Grill
- 15. Integrated Social Media: Fun, creative, image focused
- 16. @ChipotleSnaps
- 17. Email Marketing: Focused on promotions FREE CHIPS AND GUAC. THIS IS NOT A GAME. ACTUALLY IT SORT OF IS.
- 19. SMS ➔ Sweepstakes Cultivate Festival ➔ Promotions/Events Youth Soccer BOGO ➔ Giveaways Guac Hunter = Free Guac
- 20. Video Marketing Simple, straightforward, and informative videos. Tip Show how your solution helps the person in the story reach his or her goals.
- 21. Overall Transparent communications Food with integrity Mouth-watering imagery >> (sorry y’all)
- 22. 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
- 23. 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
- 24. Facebook in 2011
- 25. Consistent Growth ● Facebook: April 2004 ● Chipotle App: August 2009 ● Twitter: May 2010 ● YouTube: Feb 2011 ● Instagram: 2013 ● Cultivate Festival App: April 2015 ● Snapchat: 2015
- 26. Increasing Spend on Ads & Marketing
- 27. 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.
- 28. Guac Hunter *5.3 million requesting the offer *67% redemption rate
- 29. Guac Hunter Web Traffic
- 31. Target Audiences ➔ Existing customers ➔ Millennials/18-34 ➔ Organic consumers
- 32. Key Messages ➔ Food with Integrity ➔ Commitment to Sustainability
- 33. 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
- 34. Evaluation Success MetricsTip Show how your solution helps the person in the story reach his or her goals.
- 35. Key Performance Indicators (KPIs) ➔ Measuring Chipotle’s performance against objectives/goals
- 36. 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)
- 37. Social Media ➔ Facebook • Page likes • Comments • Shares • Click through • Reach ➔ Twitter • Favorites • Retweets • Mentions • Click through ➔ Snapchat • Views (the purple eye) • Screenshots (the green arrows) • Total story completion • Completion rate
- 38. 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
- 39. Thanks guys! Q&A