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Market Performance of Chipotle Essay

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Market Performance of “Chipotle Mexican Grill”
  A. Customers
  1. Segmentation
Five segments of potential customer base:
  a. “Fast food converts”: represented by former or occasional McDonald’s eaters. This segment can be broken into three types, based on motivations for switching. Some are switching for convenience. For example, Chipotle is closer to their work or home. Others switch for taste and will be attracted to the traditional “Big Burrito” ads. And a third type will switch because Chipotle offers natural food. This third type is currently not heavily marketed to.
  b. “Mexican restaurant connoisseurs”: who enjoy a quick version of their favorite food style and are drawn in by Chipotle’s taste and authenticity.
  c. “Health food, natural food, and food sourcing connoisseurs”: drawn in by where the Chipotle’s ingredients come from and what is not in a Chipotle burrito. For example: rGBH.
  d. “College students”: a staple of the Chipotle market base and are attracted by the cheap and tasty food. They may stop in for lunch, dinner, or during late hours. They can be better targeted by focusing on locations near campuses, adding affordable menu options, and tailoring the ambiance of the restaurants.
  e. “Lower income”: consumers will be attracted by the low price points. They may be convinced that food is better than McDonalds, etc. It is a socially important way to bring “good food” to people who can’t always afford it.
  2. Targeting
  a. Primary target: “Health food, natural food, and food sourcing connoisseurs”. This growing segment contains middle- to upper middle-class, white collar workers and academics, who are generally informed about the dangers of the industrial food chain. These customers are aware of what they eat and will be sympathetic to causes that promote sustainability. They actively seek out healthy and sustainable food alternatives and are more willing to pay for these alternatives. They may not currently be aware that...

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