Chipotle Franchise - Research Paper Example

Chipotle Franchise Marketing Position and Value Analysis The modern markets for food products are more competitive than ever before. Economic times have changed over the past few decades or so compelling restaurants to be more aggressive and innovative in order to survive the tough business environment (Cook 117). Strategic decisions on marketing are important to an organization’s survival because they are related to the long-term plans of the organization in one way or another. In choosing the marketing position, management must ensure that all the factors in the immediate internal and external environment are taken into account.

These factors include the direct and indirect competitors, suppliers and the customers. Since its foundation in 1993, Mexican Chipotle Grill has focused on providing restaurant services centered on a marketing position writ in a unique emphasis on natural ingredients. The chain of restaurants specializes in Mexican delicacies, which have gained popularity in the United States over the recent years. Currently, Chipotle has more than one thousand restaurant sites all over the United States. With the introduction of competing products in American restaurants such as smoked foods, Chipotle needed to implement a new marketing position.

The new marketing position is be focused on value analysis in order to improve the restaurants returns and earn more customers through its products pricing. The restaurant uses the four utilities of the product: functional, time, place and possession. The product is mainly sold in the United States by Chipotle’s restaurant chains. Over the past decade, Mexican spices, rice and beans are some of the most consumed foods in the country. Through in-depth analysis of the factors of location and strategic selling position, the restaurant identified favorable market sites outside the US creating business for the products.

Internationally, the franchise sells its products in Canada and England. As at 2011, the organization commanded an income in the tune of over two hundred Million dollars. This change in fortunes can be attributed to the restaurant’s marketing strategy in the past three years or so. The main positioning step that earned the franchise a major benefit is the conversion of two hundred of Chipotle restaurants into company ownership rather than corporate ownership. This enables the franchise to convert its revenue into direct investments.

Chipotle prices its products based on a framework of value chain writ in a transition that benefits both the customer and the organization. The restaurant is renowned for its tasty, fresh food in all of its restaurants. The foods are prepared on order in front of customers to promote customer trust and involve them in the product design. The restaurant’s kitchens and food preparation areas are further designed to promote open viewing for the customers. Most of the foods go for between five to ten dollars.

These include the popular crispy and soft tacos, salads, chips, and guacamole. This pricing strategy has earned the restaurant favorable trust and appreciation in the United States and internationally. With this strategy, there is a growing sense of loyalty among customers explaining the increase in the number of customers over the last two years. Chipotle uses natural ingredients in most of its delicacies including meat. The chief executive officer, Steve Ells advocates for natural ingredients in all meal preparations and sustainable methods in food production.

As everything in organizational context gains strategic importance, globally companies in the food industry are finding it difficult to place and develop priority set-ups for investments (Weirich, Hecht and Böhme 535). Being in a situation of scarce resource and stiff competition Chipotle Franchises must strive to deliver its product through a marketing policy of allocating resources by ensuring parity and equilibrium. This will lead to optimum profits and returns on capital. By positioning itself on the effective Food with Integrity motto, the company is placed in a position that will serve it for many years.

After factoring in the impact of competition, Chipotle’s ability to create awareness and positive image is moving the franchise into a strong position in the market. Hopefully, this will serve as a stepping-stone into a bright future.Works CitedCook, Nicholas. “Comments on Plotting Positions in Extreme Value Analysis.” Journal of Applied Meteorology & Climatology 50.1 (2011). Weirich, Sabastian, Martin Hecht and Katrin Böhme. Modeling Item Position Effects Using Generalized Linear Mixed Models.

Applied Psychological Measurement 38.7 (2014).