Chipotle Mexican Grill Is a Essay

Consumers of fresh Mexican food tend to be relatively young, urban or suburban, and they tend to be slightly more affluent than consumers of mainstream Mexican (i.e. Taco Bell). As such, Chipotle customers place more value on the quality of their food and are willing to pay more for freshly-prepared foods. For Chipotle, the objective is to have consumers perceive Chipotle as higher quality than its fresh competitors, so emphasis is placed on ethical meats, dairy without growth hormones, and on superior food quality as a distinguishing characteristic.

Right now, Chipotle is expanding by adding new stores in previously untapped areas. All of the firms against which it competes directly are relatively small by QSR standards, so there is something of a race to establish market dominance. The brand, however, is critical to establishing such dominance. Building new stores is a slow, expensive process and while it should remain a focal point for Chipotle's strategy, the company should also look at other means of building brand awareness.

One idea that I had was to sell its nacho chips and guacamole in grocery stores. The company makes its chips and guac a selling point, so it stands to reason that bringing these products to a wider audience will enhance the brand, and it will also generate additional profits that can be used to build stores more rapidly.The strategy will involve building production capacity, or licensing it, and then securing distribution rights through key wholesale channels. Chipotle chips and guacamole can then receive distribution not only in current markets, but in new ones as well. When stores open, consumers will already be familiar with the brand, and will have positive associations with the brand as well. This brand extension strategy will strengthen the company overall, and make more consumers seek out the restaurant, perhaps even driving out of the way for it. In addition, when the chips and guac are supported by marketing and advertising, this will also bring more people into the restaurants, but this works both ways because the restaurants can be used to help market the chips, by giving the chips greater exposure as well.

Works Cited:

MSN Moneycentral. (2012). Chipotle Mexican Grill. Retrieved April 29, 2012 from http://investing.money.msn.com/investments/stock-income-statement/?symbol=CMG

Oches, S. (2011). Top 50 breakdown by market segments. QSR Magazine. Retrieved April 29, 2012 from http://www.qsrmagazine.com/reports/top-50-breakdown-market-segments?page=2#mexican.....