Creator Influencer Strategy Master Class - Corinne Rose Guirgis
Chipotle Social Media SWOT
1. SWOT SOCIAL MEDIA ANALYSIS
Carolina Bellido.
Lazaro Santiago
Lindsay Castro
Nicola Torko
2. • Founded by Steve Ells
• Open his first Chipotle in 1993 in Denver, Colorado which was 880 square feet.
• 1995 : Elis opens his second chipotle in Denver.
• 1998: 16 total restaurants were open and soon after McDonalds invested
$36,000,000.
• 2005 : With the investment they were able to opened 500 restaurants by 2005.
• 2006: Became a publicly traded company.
• They stand for “Food with Integrity”
CHIPOTLE MEXICAN GRILL
3. STRENGTHS
• First to focus on fast-casual Mexican restaurant, which allows it to maintain a steady
demand/supply-chain.
• No steroids or growth hormones, All dairy products come from open-pasture cows.
• Invest and purchased ingredients from local farmers.
• More than 1,600 world wide chipotle restaurants open, however most are inside the U.S.,
mainly around areas with high traffic volume.
• Low start-up cost requiring only 2000 – 2,500 square feet of space and using environment
friendly materials in constructions.
• Average 150 new locations annually.
4. • Market Presence: as of 10/26/1015 $649.86 per share. Strong.
• Positive brand image and customer loyalty.
• Online order and cater.
• Social and content marketing powerhouse
5. SOCIAL MEDIA
STRENGTHS
Social Media
• Chipotle takes a lighthearted, youthful,
trendy approach to their social media
content.
• Adding a human element to their social
media strategy.
• Strong influence:
• Chipotle is changing the way people
think and eat fast food.
6. WEAKNESSES
• More expensive than traditional fast-food restaurants
because of natural and organic ingredients used.
• Limited menu.
• Slow international expansion with only 17 restaurants
outside the U.S. mainly because many thought the food
was overpriced for their area.
• Slow expansion in the UK due to their unfamiliarity with
Mexican food also many locally owned burrito chains
began to open around the same time.
• Slowest expansion was in France with only being able to
open one restaurant a year from 2012 – 2014.
7. SOCIAL MEDIA WEAKNESSES
Social Media
• Very limited menu-size to advertise on social media
• Chipotle menu technically consists of only three options
(burrito, tacos, and burrito bowl)
• Lack of brand awareness
• Almost no traditional promotion and advertisement
• Only recently run their first ad run on Grammy Awards
(02/10/2012)
8. OPPORTUNITIES
• International Dimension: possible areas of expansion with little space required.
• ShopHouse Southeast Asian Kitchen is an Asian fast-casual restaurant chipotle opened.
• Home delivery.
• Menu diversification.
• Targets growing trend of Health consciousness.
• Sociocultural Dimension : Food with integrity – striving for better quality and ethical
standards. Build relationships with local farmers.
9. SOCIAL MEDIA OPPORTUNITIES
Social Media
• More interactive content
• Positive response to its social
media strategy so far
• Continue the same way!
10. THREATS
• Political-Legal Dimension: Securities Fraud Lawsuit – Chipotle issued
materially false statements regarding the company’s business and
prospects causing CMG stocks to trade at fake inflated prices. Also 2010
Audit – revealed illegal workers
• Economic Dimension: Chipotles is pricey and consumers have been
spending less in the last few years. Threat for economic instability. Raw
material prices can also fluctuate.
• Chipotle is trying to break into a slightly saturated market segment of fast-
food restaurants trying to introduce healthy options.
• Low barriers to entry for new competitors.
• Loss of brand loyalty if food is not made “with integrity”.
11. SOCIAL MEDIA THREATS
Social Media
• Controlling all social media interaction can become difficult.
• Chipotle become too large to stay as engaged on all its social media platforms.
• Top management is very open about strategy, easily copied by competitor.
• Bad press on issues that undermine value may infiltrate social media causing bad word of
mouth.
15. SOCIAL MEDIA FACTS
• Chipotle responds to 83% of Facebook posts — more than any other quick-service
restaurant. Likewise, about 90% of the company's activity on Twitter is responding to
customers through @-mentions. "We love to have conversations," says Joe Stupp
(Chipotle's new media manager).
• Chipotle employs a three-person social media team to staff its main platforms: Rusty
Partch, Myra Ryder and Joe Stupp.
16. SOCIAL MEDIA FACTS
• 3 – identities on Facebook and Twiter
• “each team member signs his or her name at the end of a tweet/post, allowing
community members to get to know the different voices on the team in a
personal way.
Marketing strategy goal
“to change the way people think about their food.”
“Likes and retweets are great, but what matters most to Chipotle is genuine
conversations with customers.” – Joe Stupp
17. TARGET MARKET
• Chipotle has targeted millennials for its primary customer segment.
• Target Segment: 18-24 y. olds, well educated, middle class
• Targets people that are environmentally conscious. Consumers follow a “Food with
integrity” mission. Active lifestyle, socially focused, tech savvy, image conscious
• Customers are financially cautious.
• Late generation Y (1977-1998) and generation Z (1999 – present)
• Financially cautious because they lived through the recent recession of 2008.
The targeted consumer segment, matches very well with a strong social
media marketing strategy.
18. HALLOWEEN SPECIAL
Each Halloween, Chipotle hosts a community-centric "Boo-rito" contest. Last year, community
members could take a photo of themselves dressed up as a family farm animal, submit the
photo via Chipotle's website and receive a ticket to buy a burrito at a local Chipotle restaurant
for $2. The $2 would go toward FarmAid, a non-profit organization dedicated to family
farmers.
YouTube Video Website
19.
20. SOCIAL MEDIA SUCCESS
• In less than a week after the “The
Scarecrow” campaign video released,
Chipotle attracted 3,100,000 views on
YouTube, about 20,000 likes and more than
4,000 comments.
• Several media sources such as Slate, the
Christian SCIENCE Monitor and NPR
picked up the video.
21.
22. ROOM FOR IMPROVEMENT
• Chipotle should work on more innovative content marketing projects.
• Creating a media division to focus on targeted content to change perceptions about
sustainable living may help.
23. REFERENCES
Chipotle Mexican Grill. (n.d.). Retrieved October 26, 2015, from
https://en.wikipedia.org/wiki/Chipotle_Mexican_Grill
Burke, C. (2014, October 21). Chipotle Case Study. Retrieved October 26, 2015, from
https://carolinemburke.files.wordpress.com/2015/04/chipotlecasefinal.pdf
Chipotle Mexican Grill | SWOT Analysis | USP & Competitors | BrandGuide | MBA Skool-
Study.Learn.Share. (n.d.). Retrieved October 26, 2015, from
http://www.mbaskool.com/brandguide/food-and-beverages/3062-chipotle-mexican-grill.html
Chang, T. (Ed.). (2014, September 8). Chipotle Marketing Plan. Retrieved October 27,
2015, from http://de.slideshare.net/TonyChang16/chipotle-marketing-plan-38849044
24. REFERENCES
Klamm, D. (2012, March 21). How Chipotle Uses Social Media to Cultivate a Better
World. Retrieved October 20, 2015.
Team BMC. (2015, June 1). Chipotle's Lighthearted Social Media Strategy is
Helping to Build a Lot More Than Burritos - Brower, Miller & Cole. Retrieved October 20, 2015.
Semtei, E. (2015, April 30). Consumer Response to Chipotle Going GMO-Free.
Retrieved October 27, 2015.
Aversa, S. (2013, September 24). Consumer Brand Perception of Chipotle’s Ad
Campaign. Retrieved October 27, 2015.