Chipotle's Entry Into Singapore Market Marketing Plan

Excerpt from Marketing Plan :

Country and Company of Specialty Marketing Strategy

Introduction about Singapore

Introduction of Chipotle Mexican Grill, Inc.

Background of Chipotle Mexican Grill, Inc.

Global Macro Environment

Macro Environment Analysis, PEST analysis

Politics, Rules and Regulations

Economy

Society and culture

Technology

Opportunities and the threats

Opportunities

Threats

Global Competition Analysis

Competition Analysis

Primary competition in the selected market

Secondary competition

Entry Strategies Discussion & Evaluation in the selected country

Entry Strategy Selection and discussion in the selected country

Target market analysis & segmentation

Target market analysis

Target market segmentation

Global Marketing Mix Strategies

Product Strategy

Current product strategy with examples

Recommended product strategy

Price Strategy

Current price strategy with examples

Recommended price strategy

Promotion Strategy

Current promotion strategy with examples 13

Recommended promotion strategy 13

Place strategy 14

Current place strategy with examples 14

Recommended place strategy 14

References 14

Synopsis

Chipotle Mexican Grill, Inc., simply referred to as Chipotle, is a company that is in business operation with Chipotle Mexican Grill restaurants. The Chipotle Company offers a narrow menu of high quality burritos, tacos along with burrito bowls, as well as salads. At the start of the year 2013, the firm managed more than 1400 restaurants all over the United States; there are also restaurants in Canada, and in London, England, as well as Paris in France. There are a number of different entry strategies that Chipotle could employ to make an entry into the market in Singapore as it seeks to expand. The best entry strategy for Chipotle is to create locations that are wholly owned subsidiaries. The company does not franchise its restaurants. The company will face competition largely from Qdoba restaurants, while secondary competition will come from Taco Bell and McDonalds.

About Singapore

Singapore is a city state or an island nation that is located on the Southeastern side of Asia. The island is highly urbanized with a sizeable population. The expanse is a proper region for Chipotle to invest in as it has come to be one of the major commercial hubs in the region. Being a globalized and diversified trading economy, Singapore will be a great region for Chipotle to set its investment and also perhaps place some franchises (Chew, 1991).

Introduction of Chipotle Mexican Grill, Inc.

Chipotle Mexican Grill, Inc. is a company that is in business operation with Chipotle Mexican Grill restaurants. Chipotle Company offers a narrow menu of high quality burritos, tacos, burrito bowls as well as salads (Corey, 2011). At the start of the year 2013, the company operated more than 1400 restaurants all over the United States, a number of them in Canada, England, London as well as Paris in France. The company also operates ShopHouse Southeast Asian Kitchen which is a restaurant that is situated in Washington. This is an eating place that is centered on serving only Asian meals. In particular, Chipotle offers over 60,000 different combinations of fresh ingredients to the consumers. The company has a competitive edge and stands out from the rival companies because its business operations in terms of marketing, food as well as restaurants are different from competitors (Chipotle Mexican Grill Website, 2015).

Background of Chipotle Mexican Grill, Inc.

Chipotle Company was established in the year 1993 by Steve Ells, the founder as well as the co-CEO of the firm. In the year 1998, McDonalds became a stakeholder of the company as an investor but left when Chipotle went public in the year 2006. From the time Chipotle became a public company, the business has taken an 'organic foods' approach in order to attain more market share and increase its consumer base. The main goal of the company is to serve all of its consumers with animal meat as well as daily products which are 100% naturally bred (and do not contain any genetically modified (GM) products). There has been an increased demand for animals that are pasture-raised and as a result has brought about an increase in supply. In the past five years or so, Chipotle has grown and expanded significantly and is expected to open more stores and restaurants in the forthcoming years (Chipotle Annual Report, 2014).

Global Macro Environment

Macro Environment Analysis, PEST analysis

Politics, Rules and Regulations

i. Corruption: The level of corruption between the local authorities against international entities might negatively impact the investment of Chipotle in Singapore. For instance, the business might be forced to pay up hefty bribes in order for it to undertake its operations.

ii. Local Regulations: Different rules and regulations set by the government administration of Singapore might largely influence the business investment of Chipotle in the country. For instance, high taxes set on foreign entities such as Chipotle might make the investment not to be deemed worth it (Steel et al., 2009).

Economy

i. Currency Fluctuations: The fluctuations between the Singapore Dollar and also the United States dollars can cause the investment of Chipotle to become higher and costlier than anticipated.

ii. Volatility: Chipotle is set in a volatile food industry which can be impacted by the increase in prices due to factors such as inflation and also scarcity of raw materials which in turn can cause the prices to increase and in turn cause the consumers to purchase the meals in rival companies (Steel et al., 2009).

Society and culture

i. Healthier Food Options: In recent periods, more and more consumers have come to be more health conscious with regards to the food they eat and have preferences. This gives Chipotle an added advantage as it is a fat food restaurant that offers healthier options in terms of meals.

ii. Adaptation to cultural taste: One major aspect for Chipotle is that it takes into consideration the inclinations of the local cuisine and ensures that the meals provided are adapted to the cultural taste of the region. For instance, ShopHouse Southeast Asian Kitchen is focused on serving the finest Asian meals (Steel et al., 2009).

Technology

i. Social media: With the advancements in social media, applications such as Facebook, Twitter, and Instagram make it possible for Chipotle to attain the preferences and the perspectives of the consumers.

ii. Food Ordering: Chipotle as well as other business make use of technology for food ordering processes through use of mobile applications as well as through the business websites.

iii. Food products: Chipotle has also began embracing the use of technology such as the preservation of the raw materials and also the use of innovative heating machines which are used to heat the tortillas in a faster and better way

Opportunities and the threats

Opportunities

1. Product Branding: Several products that are not associated with Chipotle are making use of the name itself for their sauces. For instance, the company Subway has Chipotle sauce which it uses in its sandwiches. Although the name 'Chipotle' can be connected to the restaurant chain, it is also the name of a popular food item -- smoked peppers; so any name correlation may be merely fortuitous.

2. Asset influence: Chipotle has a high return in terms of profit and has very minimal debt. The company is an investment that is of low risk and has a strong standing. If the company made the decision to borrow capital, it could attain a large amount for its expansion and extension (Kaplan, 2011).

3. Geographical and Terrestrial Growth: Contemporarily, the company's restaurants are operational within the United States with the prospective of growing over 3,000 localities. In recent periods, Chipotle made business entry into France and the United Kingdom. The company is also seeking to expand in other European nations such as Germany. The company has the opportunity to grow and expand its operations.

Threats

1. Increase in prices due to expansion: Chipotle is a supply chain that is growing and expanding. As a result, it might be difficult and challenging to obtain organic providers for all of its restaurant outlets. In turn, the business might have to experience increased prices, poor quality products or operate less number of restaurants.

2. High level of competition: Chipotle faces plenty of competition in the market. The business in particular is rather new to the market for whole foods. The other dominant companies and also business entering the markets will offer plenty of competition to Chipotle (Steel et al., 2009).

Global Competition Analysis

Competition Analysis

Primary competition in the selected market

Company

Strengths

Weaknesses

Chipotle

1. Loyal Customer Base

2. Use of Ingredients that are organic

3. The company used recycled materials for the purposes of construction

1. The restaurants do not have any value price menu. They have a limited menu

2. The restaurants do not serve any form of desserts

3. Lack of brand awareness

Qdoba Restaurants

1. The restaurants offer reasonable prices

2. Qdoba offers quality food that is of up-scale level

3. The menu of the restaurants is varied and has extensive meals

1. Low availability in comparison to other competing fast food restaurants

2. Poor brand recognition of the company

Secondary competition

Chipotle Mexican Grill restaurants also face less or secondary…

Cite This Marketing Plan:

"Chipotle's Entry Into Singapore Market" (2015, June 30) Retrieved December 14, 2017, from
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"Chipotle's Entry Into Singapore Market" 30 June 2015. Web.14 December. 2017. <
https://www.paperdue.com/essay/chipotle-entry-into-singapore-market-2151392>

"Chipotle's Entry Into Singapore Market", 30 June 2015, Accessed.14 December. 2017,
https://www.paperdue.com/essay/chipotle-entry-into-singapore-market-2151392