2013 MEDIA PLAN RECOMMENDATIONS
Daniela Carrera Intro to Media April 2012
The Product “Our vision is to change the way people think and eat fast food” •
Chipotle has established itself as an innovator in the gourmet-‐fast casual segment
• Chipotle’s open kitchen layout was the first of it’s kind and promotes, ‘Food with Integrity’. • • •
It embraced the farm-to-table movement that began in full service restaurants and simplified it. Chipotle is once again changing the scape in the fast food arena by introducing their new breakfast menu. It will be a healthy alternative to an on-‐the-‐go breakfast.
SWOT Strengths
Weaknesses
• Already seen as a healthy fast food alterna@ve offering lunch & dinner
• Simple set up, not much room for menu growth
• Large loyal customer base • Innovators • High emphasis on quality • Well established and admired marke@ng strategy. ‘word-‐of-‐mouth’
• Only 25 loca@ons in Chicago land • Lacks Drive-‐thru service, in turn, hard to pitch an on-‐the-‐go breakfast for drivers • Higher price point than compe@tors
SWOT Opportunities
Threats
• people are growing health conscious
• Adds a 3rd shiV • Highly compe@@ve environment
• Farm-‐to-‐table movement can extend to breakfast (organic eggs, hormone free sausage, fresh organic juices) • There are few alterna@ves in fast food for a healthy breakfast • Can create awareness to include breakfast in diet • Partnerships with other companies for coffee and Juices
• Rise in commodity prices • The American diet predominantly skips breakfast • Not enough loca@ons to make it a convenient buy
Geography Chipotle has 1,226 restaurants na-on wide as of December 31st , 2011 The top 5 States 198 Loca@ons in California 134 Loca@ons in Ohio 100 Loca@ons in Texas 85 Loca-ons in Illinois 62 Loca@ons in New York This media plan is local, therefore it will target the 85 Loca-ons found in Illinois, more specifically, the 25 Loca@ons located in the City of Chicago and its suburbs.
Chicago Land Locations
Chicago Market Demographic DMA Rank 3rd DMA Popula@on (Adults 18+) 7,362,159 A18+ HHI $75,000+ = 2,828,512 Race distribution & Ethnicity White 63% African American 18% Hispanic (Ethnicity) 20% Asian 3% Mul@ Race 4% Other 10% Median Age 36.2 Average Household income $83,211 Average vehicles 1.7
Market in Motion Drive to work alone Carpool 30+ Minute commute Median travel @me to work one way
88% 6% 23%
25min.
Target Audience According to the US Census Bureau
• • • • • • •
Males and Females White and Hispanic* 18-24 * and 25-‐54 Single/Married HHI $75,000+ Attending college*/ graduated college Professional/ Managerial
• 25% of the US popula@on is of Hispanic descent. • Hispanics account for over $600 billion in purchasing power in the US alone. • by 2050, it is projected that 1 out of every 4 Americans will hail from a Spanish-‐speaking country or region.
*New Target
Brand Seasonality Seasonal factors cause profitability to fluctuate from quarter to quarter. • Sales and profits are lower in the first and fourth quarters -‐The holiday season -‐ fewer people eat out during the winter months than during the spring, summer and fall months. • Other factors also have a seasonal effect. -‐ restaurants located near colleges and universi@es generally do more business during the academic year.
Brand positioning Chipotle is well-‐posi@oned and its forecast is to continue growth in exis@ng and new markets, given current consumer trends for example: • •
Increasing awareness and concern among consumers about what they eat and how it is prepared. Increasing prevalence of the fast-‐casual segment.
•
Chipotle has become one of the most recognized fast-casual restaurants and is known for its focus on preparing food using a variety of fresh ingredients.
•
“Food With Integrity” an open restaurant kitchen is a significant compe@@ve advantage in the segment in which they operate.
Marketing Objectives
To launch breakfast menu in Chipotle loca@ons and generate sales of $1 million yearly per store. To create a awareness for Chipotle in the Breakfast fast food market. To identify a new market, the Hispanic & college student that could poten@ally increase daily sales by 25%.
Competitive Environment
Competition
• Compe@@on is based on a number of factors, including: taste, quality, speed of service, price and value, name recognition, location, customer service and the ambience. • Chipotle competes with na@onal and regional fast-casual, quickservice and casual dining restaurants. Including a variety of locally owned restaurants. • The number, size and strength of compe@tors vary by region and market. • Unlike Chipotle, a number of their competitors grow through franchising.
Competitors McDonalds: offers an extensive Breakfast menu including egg burritos, egg sandwiches, oatmeal and parfait. They also have an extensive selec@on of coffee drinks and smoothies. Subway: As part of their health “eat fresh” campaign subway launched a breakfast menu that includes an array of under 200 cal. breakfast, they teamed up with Seaole’s best coffee company. They promote a $3 breakfast combo. Starbucks: Introduced their Breakfast offerings in 2011. Their offerings are tradi@onal but not fresh, microwave is the cooking alterna@ve in this menu. Starbucks targets the ‘yuppie’ commuter. They have a large loyal customer base, they benefit from convenience buying power because of the amount of loca@ons they have. Dunkin’Donuts: offers breakfast all day, with their coffee being on center stage they look to cater to the on the go, health conscious blue collar worker by introducing egg white wraps and breakfast flatbreads. ‘America Runs on Dunkin’
Panera Bread: Offering coffee, pastries, egg sandwiches and oatmeal for on the go or dine-‐in. They cater to the consumer that has more @me in the morning to relax and sit to enjoy breakfast; moms, babysioers and business mee@ngs. Catering breakfast is a large revenue stream for them.
Sales 2010 (In Millions) Dunkin', Starbucks, 6,000.00 7,560.00
Panera, 3,100.00 Chipotle, 1,840.00
Subway, 10,600.00
McDonalds, 32,395.00
Figures taken from QRSMagazine.com
The quick service Industry Ad Spending • quick-‐service restaurants were the second-‐biggest ad spenders in 2009, ranking behind only the automo@ve industry. • quick-‐service restaurants were one of the few top spenders to increase spending year over year. Ad Spending 2011 (In Thousands) 843,000
141,400 Starbucks
31,902 McDonalds
Chipotle
Media Mix & Strategy
Media Objectives
To generate awareness among 18-‐54 year old urban White and Hispanic males and females for the on-‐the-‐go breakfast offerings in all Chipotle restaurants. To build morning traffic to Chipotle loca@ons in Chicago and its suburbs. To extend a campaign to reach college students and professionals who commute in the mornings ages 18-‐54.
Campaign Seasonality • The Breakfast menu will be introduced in April of 2013.
-‐People are looking for healthier alterna@ves because summer is approaching. -‐College Students are in class, therefore, they are able to take advantage of it right away. -‐Spring is a great @me for introduc@on of a new product because the season correlates with new beginnings and encourages new routines. (breakfast choices are usually part of a daily rou@ne.)
• Promotion will start the 2nd quarter and continue through the 3rd quarter of the year. • word of mouth, Chipotle’s already proven marke@ng strategy will carry the message through the 4th Quarter. • College Students will be targeted twice, at launch and later as the Fall semester classes begin.
Radio
Radio / White Market Sta-on: WGN 720 Format: News/Talk Target: Capture The Hard-‐To-‐Reach Professional WGN Radio is the perfect way for a busy adult to be informed, educated and entertained while mul@-‐tasking. WGN cuts through to deliver your message to the @me-‐deprived professional. Time: 5:30am-‐9:00am (Monday-‐ Friday) Price : $850.00 CPP x 15 Points per week (3 Daily) = $12,750/week 12 weeks Total = 180 Ra@ng Points A18+ = $153,000.00 Why? WGN Radio Credibility. Chicagoans tune into WGN as the defini@ve source for news, traffic, weather, sports and entertainment. That powerful credibility transfers to Chipotle’s brand. Reach a Large Audience. WGN Radio reaches over one million adults in the Chicago land area each week.
Radio / Hispanic Market Sta-on: Pasion 106.7FM Format: Music/Talk (La@n classics & pop) Target: 25-‐44 year old Spanish speaking adults who are professional. Time: 9:00am-‐12:00pm (Monday-‐ Saturday 2 spots Daily, Sunday 3 Spots) Price : $850.00 CPP x 15 Points per week (3 Daily) = $12,750/week 12 weeks Total = 180 Ra@ng Points A18+ = $153,000.00 Why? • Radio is a valued and rooted part of Hispanic consumers’ lives. From dawn to dusk, at home or away from home—radio is a primary media plavorm for this ethnic group • Radio was also a "weekend warrior" with Hispanic men and women, aorac@ng an average 81% of adults 18-‐44 — higher than any weekday @me period.
Weekly Cume Rating All Hispanic Listeners
94.9
92.2
94.1
95.7
96.2
96.3
96.4
96.9
96.3
95.9
95.0
95.6
89.7
93.5
• 95.7% of all Hispanic 18-‐24 females in the U.S. tune into the radio at least once during an average week Between the hours of 6AM and midnight.
95.2 P12+
P12-17
• The radio reached various age groups within the Hispanic market groups compared to the na@onal average.
P18-24
P25-34
P35-44
P45-54
P55-64
P65+
How to Read:
Men Women
These figures represent “weekly Cume ratings.” For example, 95.7% of all Hispanic 18–24 females in Men the U.S. tune in to the radio at least once during an average week, between the hours of 6AM and Midnight, Monday through Sunday. The light green background represents the average of all Hispanic Women Americans, at least 12 years old, who listen to the radio at least once during the week. You can then see how radio reaches various demographic groups compared to the national average.
Hour-by-Hour Listening, AQH Rating Persons Using Radio All Hispanic Listeners
• Radio reached Hispanic men and women equally strong, with the medium aorac@ng 97% of Hispanic men aged 45-‐54 and 96%of women aged 25-‐44.
30
Mon-Fri
25
Sat-Sun
20
15
10
5
0 5 AM
6
7
8
9 10 11 12 1 Noon
2
3
4
5
6 PM
7
8
9 10 11 12 1
2
Mid
Source: Arbitron-‐ Hispanic Radio Today 2010
3
4 AM
Out Of Home
Out Of Home Junior Posters Target: 18-‐34 College Student/ Young professional who commutes Loca-on: Near City College & University Campuses (preferably less than 1 mile away from a Chipotle restaurant) Time: 8 weeks in Spring (Launch) & 8 Weeks (Fall semester / Back to school) Price: 4 weeks: $22,635.00 Total: 16 weeks -‐ $67,905.00 Total Panels: 181
Why? • Offer versa@lity for short-‐term seasonal and regional campaigns • Generates brand awareness and is ideal for new product/service • S@mulates sales near point-‐of-‐purchase loca@ons • Targets pedestrians as well as motorists • Penetrates neighborhoods
Out Of Home Bulletins Target: A18+ Loca-on: 90/94 East, 290 East, 290 West, 294 East, 55 East ‘2 in ci@es primary arteries’ -‐ Damen & Milwaukee , Clark & Broadway
Total # of bulle@ns 7 Price: 4 Week total : $49,000 Total -me: 16 weeks = $196,000
Why? • Delivers high frequency • Builds reach over an extended period of @me. • Assures dominance in selected areas. • Posi@oned on highly visible, heavy traffic loca@ons such as expressways, primary arteries and major intersec@ons. • They can extend 5’ on the top, 2’ on the sides and 1’ on the booom.
Poster / Multicultural Poster Target: The Urban Hispanic adult 18+ Total # of posters 50 Illuminated : 42 Non illuminated: 8 Price : 37,500.00 / 4 weeks Total 12 weeks $112,500.00 Why? • Targets specific audiences demographically and geographically. • Creates rapid consumer top-‐of-‐mind awareness. • Provides con@nuous presence, up to 18 hours every day, resul@ng in high frequency mul@ples. • Maximizes brand awareness and is ideal for new product/service introduc@ons. • S@mulates sales near point-‐of-‐purchase loca@ons. • Located in commercial areas on primary and secondary arteries
Transit
Transit Wrapped buses Loca-on: Downtown & City Neighborhoods (CTA) (Lincoln Park, Lake view, Bucktown/Wicker Park, Loop & South Loop, Lincoln Square & River North) * Routes where chipotle is present. Price: $5,000 / Unit -‐ 4 Weeks 15 Units Total: $75,000 Time: 12 week Campaign Total: $225,000 Why? Benefits • Penetrates every part of a community with dynamic displays • Delivers high profile exposure near point-‐of-‐purchase loca@ons • Generates quick recall which can establish brand awareness Permanent • Delivers high frequency • Builds reach over an extended period of @me • Assures dominance in selected area(s)
Transit METRA Place : Ogilvy Sta@on, Union Sta@on, Millennium Sta@on Time: January-‐March 2013 Package Price: 41,500.00 / 4 weeks 8 Week Total $83,000 Ogilvy: 2 Bcklit8Sheet Diorama Union: 2 Bcklit8Sheet diorama 2 King size diorama 3 Concourse diorama 1 Lg Pedestrian Bridge display 1 Escalator diorama Millennium: 1 Concourse diagram Why? Reach Chicago’s most desirable consumer group; The Upscale, Suburban Professional. • Effec@vely targets the on-‐the-‐go commuter. • Ninety-‐two percent of the audience is comprised of college-‐educated adults and 56 percent earn incomes that exceed $75,000 a year. • Over 7-‐million trips each month, comprised of an affluent, cap@ve audience.
Financial Summary
Financial Considerations Ad Medium
# of # of weeks Units
Radio
Outdoor
Transit
WGN Pasion Bulle-ns Mul-cultural Posters Junior Posters Metra Bus Wraps
Price
12 180RP $153,000.00 12 180RP $153,000.00 16 12 16
7 50 181
$196,000.00 $112,500.00 $67,905.00
8 12
12 15
$83,000.00 $225,000.00
Budget: $1,000,000.00
Proposed Total: $ 990,405.00
Flowchart MEDIA FLOWCHART Product To Launch April, 2013 January 1
2
3
February 4
5
6
7
March 8
9
10
11
12
April 13
14
15
16
May 17
18
19
20
June 21 22
23
24
25
July 26
27
28
29
August 30
31 32
33
34
September 35
36
37
38
39
October 40
41 42
November 43
44
45
46
47
December 48
49
50
51 52
TRPs Total Cost
Radio WGN Radio Pasion FM
180 $ 153,000.00 180 $ 153,000.00
Outdoor Full Bus Wraps METRA Stations
$ 225,000.00 $ 83,000.00
Out Of Home Multicultural Posters Bulletins Junior posters Total $:
$ 112,500.00 $ 196,000.00 $ 67,905.00 $ 990,405.00
Reaching the Hispanic Market Reaching The Adult 18+ Reaching The College Student & Young professional Reaches the white professional 25-54 Reaches all our demographics
• This Campaign is to launch the new Breakfast Menu with an aggressive out of home and transit introduc@on to create a buzz (from April-‐ mid July). AVer that we will relay on our loyal costumer base, and the proven word-‐of-‐mouth marke@ng to maintain awareness.
• College Students will be the only demographic targeted again in the 4th quarter of the year due to fall semester classes star@ng. This way we create awareness of the brand near Colleges and Universi@es as the School year begins.
Works Cited Chipotle Mex Grill. Annual report & proxy statement. Chipotle Mexican Grill. April 15, 2012 hop://ir.chipotle.com/phoenix.zhtml?c=194775&p=irol-‐reportsAnnual
Editor.10 reasons to adver@se. WGN Radio 720. April 22, 2012. hop://www.wgnradio.com
Editor. Top 50 companies shaping our industry. QSRMagazine.com. April 23, 2011 hop://www.qsrmagazine.com/reports/top-‐50 Staff. Published 2011. Hispanic radio today 2010 edi@on. Arbitron. April 23, 2011. hop://www.arbitron.com
hop://pasionchicago.univision.com/djs
Staff. Media Kit 2011. Clear channel. April 21, 2012 hop://www.clearchanneloutdoor.com
Staff. Media Planning guide. Clear channel. April 21, 2012 hop://clearchanneloutdoor.com/assets/downloads/media-‐planning-‐guide/2010-‐11-‐dec-‐to-‐eyeson-‐ rates.pdf
hop://retailsails.com/monthly-‐sales-‐sum
hop://nrn.com/ar@cle/increasing-‐ad-‐spending-‐lets-‐chains-‐make-‐grab-‐market-‐share#ixzz1t9MrTNon