SLIDE 1: Chipotle Logo SLIDE 2: Chipotle Mexican Grill was founded in 1993 in Denver Colorado.

The original location was opened near the campus of the University of Denver. Over the next ve years the original location became one of sixteen locations spread across Colorado. SLIDE 3: By 1998, Chipotle founder Steve Ells had grown his original idea to a blossoming company that had opened sixteen successful locations. That year that year McDonalds Corporation took notice of the quickly expanding quick service chain and decided to become a major investor, buy a 60 percent stake in the company.

SLIDE 4: The investment by McDonalds allowed the company to begin rapid expansion, growing from the sixteen locations in 1998 to over 500 locations across the country by 2005. On January 26, 2006, Chipotle made its initial public offering (IPO). In its rst day as a public company, the stock rose exactly 100%, resulting in the best U.S.-based IPO in six years, and the second-best IPO for a restaurant after Boston Market. The money from the offering was then used to fund new store growth. In October 2006, McDonalds Corp. fully divested itself from the company. Over the next six years Chipotle would experience an explosion of growth and popularity growing to over fteen hundred locations in 41 states and two Canadian Locations and one in London. Today the company reports net prots of 215 million dollars and employs nearly 40,000 people. SLIDE 5: 4 Ps logo

SLIDE 6: Chipotle is successful because there individual product, the burrito, is created in a different style than any of their other competition out there. Chipotle has an assembly line style of creating their food offering customers many different assortments of toppings or ingredients that can go inside each individual customized burrito. This feeling of getting to pick and choose, right in front of your eyes, gives the customers the power and insures them that they wont be getting anything in there burrito that they do not want. In this assembly line you rst add the meat and rice that you would like, then choose which style of beans or vegetables, then add one of the three types of salsa and guacamole. People can choose between an assortment of all of the toppings that can ll one burrito. In addition to the burrito, Chipotle offers customizable crispy tacos, soft tacos, burrito bowls, salads, and chips & guacamole.

SLIDE 7: In 1999 Chipotle was place on the 20 worst foods to eat in America list because of their product was nutritionally worse for you than a Big Mac. Since then Chipotle has tried to clean up its image by radically revolutionizing the way they make their product. Food with Integrity is Chipotles way of branding how the company obtains its raw materials used in the food. 100% of the farm products that Chipotle buys are purchased from responsible farmers that raise livestock and grow produce in socially responsible ways. That means that all of the produce is completely organic and the livestock is grown free range. All of the components of Chipotles products are part of their Food with Integrity program. SLIDE 8: 4 Ps logo SLIDE 9: Architecturally, all Chipotle restaurants are built using most of the same materials (plywood, corrugated metal, stainless steel, exposed ductwork), although each store is unique. The interiors have been described as having an "industrial, sheet metal look". Chipotle has built restaurants using white ceramic tile instead of stainless steel, citing the relative ease of recycling white tile compared to steel. It costs the company approximately $850,000 to open a new restaurant.

SLIDE 10: 4 Ps logo SLIDE 11: Chipotle utilizes several different pricing techniques, including even-odd pricing. This is a form of psychological pricing that leads customers to feel more comfortable paying a certain price. This can be easily seen in the way that the company prices its beers. Chipotle charges $3.95 for a domestic beer. Because of even-odd pricing, customers are led to feel more comfortable spending $3.95 on their beer instead of an even $4.00, though the difference of only $.05 is a negligible loss to the company. SLIDE 12: Chipotles beer prices also demonstrate another very important pricing technique and that is leader pricing. Leader pricing means that Chipotles beer prices are intentionally set lower than its competitors in the same market, in this case Chevys Fresh Mex and El Torito Restaurants. Chipotle hopes to attract more customers by offering comparable food options and lower beer prices. Why spend $5 or even $6 for a beer at a local competitors when one can enjoy the same domestic beer for $2.95 or import beers for $3.95?

SLIDE 13: When it comes to selecting prices for its food, Chipotle utilizes a pricing technique known as prestige pricing. Prestige pricing involves setting prices higher than competitors to ascribe a higher level of quality to your product. In this case Chipotles price for a Chicken burrito is $5.95 which is clearly higher than the competitors (Taco Bell and Green Burritos) prices for the same product. Customers are going to feel like the extra cost is due to the higher quality of the organic ingredients used in Chipotles food and better the nutritional value. SLIDE 14: 4 Ps Logo

SLIDE 15: Chipotle handles sales promotion unlike any other quick service national chain in the United States. In the past the company relied on mostly billboards and radio for advertisement, not airing a single television ad until the year 2012. During the 54th Grammy Awards Chipotle aired its very rst national television ad. The ad focuses on the problems with Americas meat and produce industry. Food With Integrity has become the vision for the company placing a focus on only using high quality, organically grown ingredients in its food. The idea behind the vision is to grow brand equity through the respect that the Chipotle name and Food with Integrity has with customers.

SLIDE 16: Alternative adversing methods are not the only way that Chipotles promotions stands apart from the competition. The company feels so strongly about the taste and quality of its food that the customer will see this and spread the word. In order to grow brand familiarity and to get as many people as possible to try the food, whenever Chipotle opens a new location it offers free burritos to any customer who comes in on opening day. One long standing promotion that the company has held is a free burrito on Halloween for any person who comes into a location dressed as a burrito. The idea behind the free burrito promotions is that the more customers that they can get through the doors and try the food the more people that they will have out spreading the word about their store.

SLIDE 17: One way that the company utilizes technology and promotion is through the use of a free cell phone app. Because of the explosion of the smartphone industry the distribution of a free app is a very easy way to reach millions of customers. The app allows customers to locate the nearest Chipotle location and view the full menu of food that is available at a particular location. Customers can then order food right on the app and pay for the order using a credit card, and schedule a pickup time to cut down on time spent in the store. This makes the experience of getting food from chipotle even more convenient and fast for the customer.

SLIDE 18: The company is well aware of its untraditional approach to promotion and advertising and in 2011 it launched a new advertising campaign that mocks the advice that the company has received over the years from different advertising agencies. As part of this new 18th anniversary campaign the company began wrapping it burritos in gold foil packaging as part of a larger promotion to draw attention to its Food With Integrity mantra. In line with Chipotles social responsibility all of the rms packaging including the gold foil is made of 100% recycled materials. The gold foil has become the face of all forms of advertising for the company. Also as part of the gold foil campaign, Chipotle is offering prizes for customer-created pictures of items wrapped in gold foil. Chipotle hired comedienne Amy Sedaris to create a comedic how-to video on wrapping with gold foil, and spread the video using Twitter.