Overview

Product/Brand
Chipotle Mexican Grill is a unique eatery. In a world of fast food and a lack of true consideration
of consumer health, the restaurant pursues a different direction. The company positions itself as
“fast-casual food.” This new, up-and-coming breed of dining commits itself to the customer’s
time constraints as well as a positive environment. Customers can obtain their food in a short
period of time, but can enjoy the more sophisticated atmosphere of the restaurant if they choose
to stay and eat at the restaurant itself. Every Chipotle Mexican Grill is decorated with metal and
light wood although every restaurant is unique in its set up. With this color scheme, the
restaurant conveys a modern attitude to its customers.

Beyond its elegance in comparison to most, if not all, fast food establishments, Chipotle offers a
level of customization to its meals in a simple manner. Although their menu only technically
consists of three options (burrito, tacos, burrito bowl), Chipotle offers consumers over 65,000
combinations. This is accomplished through their cafeteria line of ingredients including various
meats, salsas, and extras like cheese and corn. Thus, at Chipotle, everyone can get exactly
what they want in the way that they want it all while remaining different and unique from their
friends who accompany them.

Sustainability
From the company’s beginnings, CEO Steve Ells has been committed to sustainability in his
business. When first hearing this, most consumers would think of environmental aspects like
organic farming, but Ells has taken his vision much further past environmental responsibility to
apply sustainability to animals and the people whom the company works with. The most obvious
way in which Chipotle practices this sustainability is through it attainment of the food it serves.
Although not since the restaurant’s beginnings in 1993, Chipotle now continually works towards
a higher standard of this sustainability.

The first step on this path came in 1999 when Ells was educated about how pork Chipotle
purchased was raised. Pigs would be fostered by factory farms surrounded by concrete and
given antibiotics to prevent disease within their confinement with hundreds of other pigs in
cramped conditions. It is said that the amount of antibiotics amounts to three times more than all
of the antibiotics assigned to humans. Ells preferred to have his pork live a more enjoyable life
and redirected funds in order to purchase naturally raised pigs. This “natural” way allows pigs to
live in a positive environment without antibiotics or added hormones in their diet. They are
allowed to live their lives as the pigs they were born to be and not contaminated with a high
amount of antibiotics. Within two years, Steve Ells had Chipotle served 100% naturally raised
pork. Similar conditions existed for chickens that were injected with growth hormones, but due
to now existing law, 100% natural chicken is required in dining. Finally, Chipotle attempted to
tackle their beef supplies, which proved to be more of a challenge. In 1999, when the idea of
sustainability through food was pursued, the company could not find anyone who could meet
the standards of a “naturally raised” cow. Currently, the company holds that 85% of their beef
meets the standards of the other two meats offered. Therefore, Chipotle has not completely met
their goals, but still dedicates itself to the goal of one day having a complete selection of
naturally raised meats.

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Beyond their main focus in food, Chipotle applies their commitment to sustainability efforts to
their suppliers and the environment. The company makes sure to work with companies that
treat their workers fairly. In order to secure these ethics, Chipotle makes sure that policies
against any exploitation are set in place .Otherwise, a large company like Chipotle cannot
consistently buy from small farms, but they do a considerable amount of business with locally,
owned family farms who meet their food standards. This is something else that the company
boasts due to the fact that they cultivate personal relationships with their suppliers. Inside the
company, workers are treated respectfully by offering opportunities to grow professionally
through promotion and responsibility as well as personally through things like continued English
lesson for those who are not completely comfortable with the language. Chipotle’s happy
animals paired with their content suppliers and workers are complemented even further to their
environmental efforts. Overall, 40% of the Chipotle’s beans are grown through organic
practices. In addition, these beans along with corn, avocados, and other vegetables come from
the local farms aforementioned. This strategy ties each of these sustainability efforts together as
one positive influence on the company itself.

Advertisement
With all of the differentiation from customer to customer, Chipotle has one thing that ties
everyone together - a meal that weighs around 1 ¼ pounds. This amount of food for the price
ranging anywhere from $5.00 to $8.00 is a great value to their consumers. The common
denominator is something that the company prides itself on and focuses on in most of its
advertising campaigns in the past by implementing pictures of massive burritos on billboards
with phrases like “burritos so big you wanna ride’em.” After a long time commitment to that
angle of promotion, the company is venturing in another direction to market something else that
they have always had - “Food with Integrity.”

Due to these consistent efforts to sustainability, it is clearly at the core of Chipotle’s business.
Instead of relying on a marketing ploy to advertise something that the company can create for
its consumers like a burrito or a secret menu item, the company is going to market itself through
its basics. There is nothing flashy about their ingredients. There is just the truth of quality behind
what the company stands for versus what their fast food or fast casual food are supplying. Thus,
the company has nothing to hide behind and wants to be straight forward with the consumer.

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In Chipotle’s print ad from this year the company focuses on its “Food with Integrity” in a
creative manner. When initially seeing the advertisement, the viewer will most likely catch the
message “chipotle tastes delicious” first due to the darker font. They have already absorbed the
fact that the ad is in fact for Chipotle and can move on to process the lighter font that provides
the true message. Even this is conveyed in an entertaining way that links the entire message
together by referring back to the darker print. It addresses the way in which their meat is raised
naturally with no hormones, while also speaking to consumers’ cynical attitude towards
advertising by outright saying that they worked with an advertising agency to formulate the idea.
This works especially in the current climate where consumers are more aware of the fact that
they are consistently being marketed to. Finally, the “direct” message comes through the dark
print, and the viewer has fully experienced the advertisement.

Target Market

Demographics
The main target of Chipotle’s “Food with Integrity” advertisement is 18-34 year olds with at least
a Bachelor’s degree. This group belongs to the upper middle class in the “mass affluent”
segment in households with an average income of $75,000-$99,000 if only one person and
$100,000-$149,000 if more than one adult lives in the household. Living in a household under
these conditions allows the younger portion of this age segment to be a part of the upper middle
class through their families. According to the U.S. Census information available in April 2007,
the mass affluent market consisted of 13.3 million households. The same data states that out of
the entire mass affluent market, 78.5% of the households were Non-Hispanic Whites and 32.7%
of them have a college or graduate degree. These consumers put their education to use in the
full time occupations that 75% of this mass affluent population hold. In addition, 67.8% of this
group is married with 35% in a two person household assumed to be a couple and 42.9% in a
three to four person household assumed to be a married couple with children. Thus, this
generation crossing, well-educated segment makes up respectable portion of the market that
Chipotle can aim to tackle through their “Food with Integrity” advertisement.

Psychographics
Social classes are not strictly defined by the amount of money that the household possesses,
but also relies on the prestige held through occupation. With a degree through higher education,
it is assumed that this market has honorable jobs to maintain their place within the upper middle
class. This social class of people is known for prizing their uniqueness as individuals. This is
complemented by the Simon Market Research Bureau’s National Consumer Survey from 2006
that the mass affluent market values “stand[ing] out in a crowd” and being an individual more
than other consumers in the market. As aforementioned, Chipotle as a company boasts about
the possibility of 65,000 ways in which to order food, making each person own their individual
order exactly how they want it. Therefore, Chipotle aligns with this consumer bases’ general
beliefs in this manner.

It has been established that the target market is family based, with over 40% of household
having children under 18. With this information, it is safe to conclude that adults will be buying
for their family. The Simmons Market Research Bureau National Consumer Survey of 2006
characterizes women in the mass affluent adult category as “career oriented” but “centered on
their home and family.” This matriarchal approach paired with the affluent female point of view

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that 79.8% of their families eat meals together leads to the thought that these busy career
driven women will not have time to cook and thus, 87.6% of the mass affluent market will go for
fast food. On the other hand, they can afford the specialty healthy food from Chipotle. This
same Simmons Research Survey concludes that 74.7% of these women try to eat healthier.
While they are out they will be bringing back food for their families that will keep all of them
healthy. Thus through Chipotle’s advertisement, and “Food with Integrity” promotion, they
connect to major aspects of this target market’s lifestyle- remaining unique and remaining
healthy.

Consumer Constellation
Sustainability and healthy food is not a specific staple of Chipotle, but it is a way of life. The
target market of the “Food with Integrity” advertisement not only buys from sustainable
restaurants like Chipotle, but keeps sustainable versions of food within their home. Since meat
has been a large part of Chipotle’s efforts, it is only fair to look at the consumer market for
sustainable meat products. These numbers are a product of a study about sustainability and
consumers done by the Hartman Group in 2008 where participants were selected to represent
the U.S. Census data of the time. According to this report, 18% of consumers purchased the
sustainable version of white meat and 12% bought the sustainable version of red meat. In 2006,
18% of households were in affluent households. With economic decline and recession occurring
through 2007-2008, it would be wise to consider a lower amount of affluent households at this
time in 2008. This, in addition to considering the premium usually placed on sustainable items
making them more likely to be purchased by the affluent market, would allow this target market
to fit considerably well within the 12%-18% range provided by the original statistics.

Usage benefits& behaviors

The value of sustainability and maintaining individuality is something that is not only a value of
the upper middle class, but also of Non-Hispanic Whites. By obtaining food from Chipotle, the
consumer is doing both and remaining true to their values. When asked if they liked the trend
toward healthier fast food 42% of 18=24 year olds agreed along with 49.9% of 25-34 year olds.
When choosing to eat Chipotle, each of these large portions of the groups surveyed in the
Simmons Survey of 2006 will align their values with their consumption. These consumers are
also receiving a great value for the food that they receive from Chipotle, especially due to the
fact that 38% of people representing the 2008 U.S. Census stated that they would pay 20%
more for chicken while 32% said they would be willing to pay this premium for red meat. Seeing
as Chipotle’s meals run between $5.00 and $8.00, this batch of consumers is saving.

Chipotle’s commitment to the consumer through their strong and active dedication to
sustainability within their business along with their witty advertisements that connect back to
brand’s main focus allows consumers to become loyal to the brand. The restaurant continually
delivers 1 ¼ pound meals for reasonable prices – especially for the target market. This
consistently positive experience with the company leaves the consumer coming back for more.
According to a study done by Matthew Raga and Marilyn Roberts, these consumers band
together through their love of Chipotle and function in their own brand community due the
sincerity of the brand and its sustainable initiatives. Through this way of business, Chipotle
illustrates the power of corporate social responsibility within not only the food industry, but the
business world.

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References

Packaged Facts. (2007). The Affluent market in the u.s.. Rockville, Maryland: Market Research
Group.

Packaged Facts. (2009). Consumers and sustainability: food and beverage. Rockville,
Maryland: Market Research Group.

Packaged Facts. (2007). On-the-go eating in the u.s.: consumer, foodservice, retailing, & marketing
trends . Rockville, Maryland: Market Research Group

Ragas, M.W., & Roberts, M.S. (2009). Communicating corporate social responsibility and brand sincerity:
a case study of chipotle mexican grill's 'food with integrity' program . International Journal of
Strategic Communication, 3(4), 264-280.