Chipotle Leads the Burrito Business

 

What makes you choose one restaurant over another? Especially in the area of Mexican cuisine, what sets a restaurant apart from the others? Is it the consistency of the guacamole, or the texture of the tortillas that are used?

As described in David Chernenko’s blog post, the Mexican fast food chain, Chipotle, has achieved unparalleled success with the “fast casual business model.”[1] With 1900+ stores as of 2015, and annual revenues of over $4.1 billion[1], Chipotle has created its own signature dining experience that appeals to approximately 750 000 diners every day[1]. Not only does David discuss the differentiation factors behind Chipotle’s prosperity, he also highlights the company’s effective operations management and resounding value proposition that have hooked the millions of burrito-lovers that Chipotle has served.

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One of the key characteristics that serves as Chipotle’s point of difference is its unique philosophy of serving “Food with Integrity.” This core value of serving fast food with ingredients that are sourced within 350 miles of the receiving store[1] particularly appeals to health-conscious customers. There is a general growing popularity in fresh, organic, non-frozen, and cruelty free food, which results in a positive public reception from the targeted customer segment. This simple and honest concept fostered by founder Steve Ells effectively impacts the value proposition of the company. In comparison to other fast food chains, Chipotle is portrayed as a higher-end and healthier food chain[2] that is dedicated to serving high-quality and customizable foods at generous portions.

Additionally, David mentions that each location of Chipotle is centrally controlled by the corporation[3] in comparison to the franchise model. It is very rare for a fast food chain to own and operate, but Chipotle’s masterful business model has allowed them to be heavily involved in the dining experience and quality control of food. Although this may seem like a negligible factor in the eyes of a consumer, this allows Chipotle to strictly oversee every detail and component within the customer’s dining experience. Furthermore, through the utilization of a standardized operation model, Chipotle has seen an increase in profitability compared to competitors using franchise models.[3]

Overall, Chipotle’s usage of a clear branding message has allowed it to excel well beyond its competitors. Through the implementation of a compelling and transparent business model, customers find themselves gravitating to this company-owned-and-operated Mexican food chain. Although Chipotle’s food is sold at a higher price point and at a larger size than regular portions, its customizable and efficient characteristics have created a loyal and strong consumer base.

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  1. Zheng, M. “Chipotle Nation.” Operations and Technology Management. N.p., 28 Nov. 2016. Web. 30 Oct. 2016.
  2. Li, Sam. “Chipotle: It’s Not the Burrito – It’s the Operating Model.” Technology and Operations Management. N.p., 9 Dec. 2015. Web. 30 Oct. 2016.
  3. Roemmele, Brian. “What Are the Keys to Chipotle’s Success?” – Quora. N.p., 20 Aug. 2011. Web. 30 Oct. 2016.

Feminism: the Newest Marketing Trend

“#LikeAGirl”

“#GirlsCan”

“#HeForShe”

– it starts with a hashtag to begin a movement.

Brands all over the world have caught on to the buzz and public approval that feminism embodies, and as a result, companies promote female empowerment as an advertising tool. The most notable pioneer to utilize “femvertising” is the soap brand, Dove, whose change in marketing created a relevant and current connection to the public on a groundbreaking level. Instead of being identified as a soap brand with a signature white colour, Dove had transformed into a brand who strives to “[help women to] raise their self-esteem and realize their full potential.” 

Over the last year, more brands have jumped on to the feminist bandwagon in hopes of selling products that range from every-day apparel to cosmetics to hygiene products. This movement has gained momentum as brands have redirected most of their advertisements to show that not only do they sell goods or services, but that they also have a social conscience. In other words, they are attempting to connect to customers beyond the product level.

On the business side, “femvertising” demonstrates the reorganization that has taken place within the marketing teams of some of the world’s most influential brands. Companies such as Always, Covergirl, and H&M have redefined their brand’s value propositions to connect meaningfully and compellingly to their target market. This fosters connections to consumers on an emotional and personal level which in turn repositions the brand in the mind of the customer. Notable speaker Simon Sinek summarizes this concept by stating that, “people don’t by what you do, they buy why you do it… The goal is to do business with people who believe what you believe.” Sinek’s words cannot be more accurate as time and time again, customers find themselves going back to the brands that they are most loyal to, are the most trusted, and are the most inclusive—this is the power of a company’s value proposition.

photo from Alway's Unstoppable campaign

photo from Always’ Unstoppable campaign which tackles patriarchal standards

The Telegraph discusses how the success of feminist advertising is a result of consumers who “value ethics over money” in a noteworthy article that conveys how innovative “femvertising” really is. The article goes on to elaborate on the positive effects within social media, the economy, and the workplace. However, it also points out that some brands struggle to establish an emotional connection between the customer and their product. Especially with a topic as sensitive as gender equality, the article suggests that this campaign can be detrimental to a brand’s image if not executed properly.

Overall, the feminist advertising campaign is a prominent marketing tool used by many brands, and it displays the remarkable effect of a brand establishing a communication of beliefs with the customer.

 

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Apple Inc. Infected With “Touch Disease”

The recent release of Apple’s new smartphone, the iPhone 7, has overshadowed the class action lawsuits that the company currently faces from both American and Canadian law firms. Complaints have risen from iPhone 6 and 6 Plus users as the displays of their smartphones have become unresponsive, and has been labelled as the “touch disease” by the technology repair firm, iFixit.

In spite of iPhone owners approaching Apple with these concerns, the smartphone giant brushed aside their comments and continuously replied with unsatisfactory advice by offering to completely replace the phone for the high price of $300. iFixit explains that over time, the displays will become completely unresponsive to touch, making a phone that was released only two years ago virtually inoperative. This issue affects a large amount of iPhone 6 and 6 Plus users, as research shows that roughly 11% of Apple’s in-store repairs are from the “touch disease.” Infuriated customers are seeking compensation in the form of a nationwide repair, replacement, or recall at no cost. The lawsuit claims that Apple supplied products whose defects were “knowingly and intentionally concealed.” (Merchant Law Group, 2016) iFixit suspects that the problem stems from the thin iPhones being warped with use, which may move or damage the chips that allow the screen to interact with touch inputs. Although Apple has not formally responded to this issue, plaintiffs are looking for a jury trial to make a case decision.

iPhone 6 and 6 Plus users claim to have displays that are unresponsive to touch.

iPhone 6 and 6 Plus users claim to have displays that are unresponsive to touch. image source: http://siliconangle.com/blog/2016/08/30/apple-sued-in-class-action-lawsuit-over-iphone-6-touch-disease/

The controversy surrounding the lawsuits is particularly alarming because it affects Apple’s brand image. Specifically, this affects the value proposition of the entire company as it claims to produce and supply technology that is innovative and reliable. If the quality of one of Apple’s signature products is in question, this significantly alters the public’s perception of all Apple merchandise; customers can lose trust in the quality of all Apple products, which would compel them to switch to other alternatives such as Samsung. The consequences of this complication could even influence future sales of Apple products, especially the iPhone 7, since its press event fell on the same day as the launch of the lawsuits. Future sources of revenue are vulnerable because customers are deterred from purchasing the heavily anticipated phone for fear of the “touch disease” being a problem for iPhone 7’s. Therefore, complaints of iPhone 6 and 6 Plus users pose a serious threat towards Apple’s reputation and character.

Overall, a simple act of negligence from iPhone engineers could be harmful to the future of Apple as customers have begun to question the integrity of the company. Not only is Apple’s relationship with their customers in jeopardy from this glitch, but the overall reputation of the tech giant is at stake.

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