American chain of casual restaurants

Running Head: MARKETING MANAGEMENT
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MARKETING MANAGEMENT

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Executive summary
This report has the objective to expand the business of Chipotle Mexican Grill casual dining
restaurant in UAE. The organization will grow within the UAE by delivering a quality product
and consistent services. The organization has a successful strategy to differentiate the business
within the new market through unique services It has effective advertisement strategies to
promote business by offering the quality ingredients within products. Chipotle Mexican Grill
generates excitement for customers through many quality promotional methods. This report will
explain the competition and target market for the organization in the UAE. It will explain the
segmentation, SWOT analysis, with the research of the market for Chipotle Mexican Grill in
UAE. The market research will be effective for Chipotle Mexican Grill to prepare the product,
place, prices, and promotion strategies for the organization in the market of UAE.

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Table of Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................3
Current status of organization......................................................................................................3
Product life cycle.........................................................................................................................5
Competition overview.....................................................................................................................6
Target market...................................................................................................................................7
Segmentation...................................................................................................................................8
Demographic................................................................................................................................8
Behavior.......................................................................................................................................8
Psychographic..............................................................................................................................9
SWOT analysis................................................................................................................................9
Strengths.......................................................................................................................................9
Weaknesses................................................................................................................................11
Opportunities..............................................................................................................................12
Threats........................................................................................................................................14
Market research.............................................................................................................................15
Product.......................................................................................................................................15
BCG matrix............................................................................................................................16
Place...........................................................................................................................................18
Price...........................................................................................................................................19
Promotion...................................................................................................................................19
Conclusion & recommendations....................................................................................................19
Bibliography..................................................................................................................................21

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Introduction
Chipotle Mexican Grill is known as the American chain of casual restaurants in the USA, UK,
Canada, Germany, and many nations around the globe. In 1993, Steve Ells founded the
organization in Denver, Colorado. The Chipotle name derives from Mexican name for smoked,
dried jalapeno chili pepper. He has attended the culinary institute of America within Hyde Park,
New York. After that became a line cook within the Jeremiah Tower at Stars within the San
Francisco, California. Ells opened the first restaurant in Denver Colorado, near Denver
university campus with a useful loan of $85000 from his father (Chipotle Mexican Grill, 2020).
This has been estimated by Ells and his father that it is important to sell 107 burritos every day
for becoming profitable. This business has gotten success and the original sale of the
organization has reached 1000 burritos every day. After that, he planned to open a fine restaurant
for dining but suddenly has focused on the Chipotle Mexican Grill business. This presents the
potential regarding success in the future. It is currently trading within the New York Stock
Exchange (Forbes, 2020).
McDonald’s known as the very big brand that made an initial minority investment within the
organization in 1998. This organization had grown to become the biggest investor of Chipotle.
This kind of investment from McDonald's has enabled the Chipotle to expand to more than 500
outlets by 2005 (Daszkowski, 2019).
The founder and CEO of Chipotle Steve Ells, in November 2017, has announced that he would
be stepping down from the position. This position was filled by Taco Bell CEO Brian Niccol.
The Ells will hold his position as the organization chairman. The stock price of the company has
grown by 12 percent after the change within leadership (Bustle, 2014).
Current status of the organization
 Market

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The organization is placed at number 3 in the top five best restaurants in the USA. The
organization is gaining regularly high profits and applying many strategies to improve the
position within the present market and new markets.
(Withers, 2020)
 Revenue
The customer likes to return and use the services due to the good facilities and tastes. It has
increased the revenue of the organization.

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(Withers, 2020)
 Digital ordering growth
Digital order is a growth engine for the company. This organization is regularly driving
improvement with the digital and rolled out long-awaited reward program. Management of the
organization is regularly focusing on possible digital efforts. This is also effective for the
organization to attract more investors.
(Withers, 2020)

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Product life cycle
Every product around the globe has a lifecycle. This includes product introduction, growth,
maturity, and in last decline stage. It is not different for any organization including Chipotle
Mexican Grill.
 Introduction
This happened when the product and services of the business were launched within the market.
This demonstrates that food served very fast and required to remain and serve the typical fast
food with low cost and high quality. Activities regarding promotion would be critical however
important for the business within the introduction stage. Steve Ells was not focusing on the
advertisement agencies and only relied on advertisement through billboards, radio and word of
mouth. The motive of the organization was to gain acknowledgment of product through the
people.
 Growth
This organization had gained fast growth by revenue of more than 1000 in a single day. This
organization had grown by having 16 restaurants within the Colorado area. The investment
amount of McDonald's was $360 that allowed it to grow and expand very fast. This organization
grew to more than 500 locations. This organization went publically and the stock rises with rate
of 100 percent in a single day. This organization has more than 37000 employees and operating
in more than 1500 locations around the globe.
 Maturity
In this stage sales of the organization begin to stabilize. This organization has not entered the
maturity stage. This organization is regularly earning and increasing the sales that are up
sustainably from last year. This can be concluded that there will be many more years to enter
within the stage as there are many untapped markets for branch out.
 Decline
This stage presents in which sales of the organization product decline and some of the products
within the menu withdraw. This organization has faced a small decline within the sales in the

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Northwest region because of the salmonella problem. This has affected the business bottom line
and net sales within the dramatic manner. Chipotle Mexican Grill is far from the decline stage as
regularly expands within the international market and open new store at many places.
Competition overview
UAE is known as the lucrative market regarding the food industry around the globe. This is one
of the competitive markets as there are more than 9000 restaurants (Ramseook-Munhurrun,
2012). The market is saturating and many service providers come with sophisticated ideas, new
trends and attract more bases of customers. This is very typical for the new restaurants in the
UAE because of the cannibalization. This is also an important reason to lose customers. The
restaurant industry within the UAE due to the changing face of the economy attracts more
investors and entrepreneurs. There are no barriers regarding entry and worldwide business
making their presence with appropriate entry.
There is also a high rate of employee attrition and the cost of labor within the restaurant industry
of UAE. This presents a high level of competition within the restaurant industry of UAE.
Employees have the option to switch and earn better opportunities. The competition is the main
reason to increase staff attrition levels.
The foodservice market within the UAE includes the many numbers of regional and internal
organizations like Wagamama, Prezzo, Yum Brands, Five Guys, and Mcdonald. There are many
fast-food chains regularly dominant the casual dining and fast food restaurant within the nation
by a high level of presence. There is stiff competition within the provider of food services based
on pricing, food services qualities, calories intake every meal and options of the healthier menu
(Bouwens, Donzé, and Kurosawa, 2017).
There are more than 138 projects are underway within the UAE. There are many restaurants are
opening every day with similar food options. The organization to compete within the market of
UAE should focus to increase the base of customers by retaining them. Retention of customers
will be the main focus and done by leveraging effective rewards programs, loyalty programs,
CRM techniques, and offering special discounts regularly by many methods (Al Qaydi, 2016).

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Target market
The target market is known as the customer's groups within the business (Azzam, and Rettab,
2013). The target market is also known as the subset of the entire market regarding services and
products. The target market for the Chipotle Mexican Grill in UAE will be students of college
and millennial professionals with the age of 18-28. Many of them consider cooking as a hobby
and make the meal from own kitchen by the use of fresh and healthy foods. This presents the
increasing awareness regarding health that is evident within the society. Professionals and young
students are pressed for time that is a common occurrence with people. These like a healthy
alternative for cooking and eating out. Most of them not like restaurants such as McDonald’s,
burger king because of the unhealthy food which causes the body. These will like the Chipotle
Mexican Grill in UAE as a healthy option for casual dining. These also have disposable income
and like to follow the return of regular spending by college campuses, urban centers and many
places that are well educated for foods and prefer balanced diets. This organization to gain more
customers within the UAE market will focus on philosophy such as "Food with Integrity". This
will help to become more capable and attract loyal customers that like quick to eat with families
and friends.
Segmentation
This is known as the procedure to divide the marketing of potential customers within the groups,
segments, based on characteristics. This kind of segmentation includes customers that respond
effectively to strategies of marketing and share the characteristics like interest, requirements, and
locations (Yusuf, Shukor, and Bustamam, 2016.)
Demographic
This will be important for the Chipotle Mexican Grill to identify and focus on the demographic
segmentation to gain the market share within the UAE. Demographic segmentation for the
Chipotle Mexican Grill will include the people within the age of 18 to 60. Gender for the
business will be 22-60. The life cycle stage of business includes the customers such as single
people that not live at home, bachelor, young individuals, a newly married couple, young
children. The primary target market will be men and women within the age of 25 to 30. This
category will help a business to earn half of its profits. This organization will focus to meet and

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satisfy the customers’ requirements. It also presents the business social level that has a stable
income and enough capable to buy extra products and services to make lives happy. The
appropriate marketing strategy will help the business to appeal and attract more young people
(Madichie, and Hinson, 2013).
Behavior
The behavioral segmentation for the Chipotle Mexican Grill will include the people that have an
effective degree of loyalty, personality and effective user status. In this category, the
organization will focus to invite hardcore loyal customers that like to enjoy casual dining within
the relaxing environment by a chat with relative and friends. Personalities for the customers will
be easygoing, regular users, and determined by maintaining an ambitious nature. The
organization will monitor and invite more customers by offering loyalty programs to customers.
This will be effective for the organization to make the use of loyalty cards regarding purchase.
This will help the business to monitor the buying behavior of UAE people (Jamshed, and
Ahmad, 2018).
Psychographic
Psychographic segmentation includes the people that divide customers within the groups based
on lifestyle, social class, personality characteristics, and lifestyle (Jham, and Tandon, 2012). The
organization will target the customers based on lifestyle choices, attitudes that consider fair-trade
food. The main customer for the business will be people that are serious about healthy food and
prefer the upscale market food. The organization will create an advertisement based on their
choices and attract them effectively. This segment will include the upper and middle-class people
in UAE that maintain the lifestyle such as mainstreamer, aspirer, explorer, and reformer by other
individuals.
SWOT analysis
SWOT analysis is known as the structural planning which is used by the many organizations for
evaluating strengths, weaknesses, opportunities, and weaknesses. This can be also used by the
organization management for situational analysis. This is one of the important analyses for the
business to maintain the dominant position within the market through effectively analyzing and
reviewing SWOT analysis. This is an important analysis for the interactive procedure and needs

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effective coordination within the many departments like marketing, operations, finance, strategic
planning, and management information system (Washi, 2012).
This is an effective framework for facilitates the organization to identify internal strategic factors
like strengths and weaknesses & external strategic factors like threats and opportunities. This
leads to a 2X2 matrix and known as the SWOT matrix. This is important to identify strategies
which organization use to exploit external opportunities, counter threats and create protect
Chipotle Mexican Grill strengths and eradicate weaknesses.
Strengths
Chipotle Mexican Grill is a leading organization around the globe. The strengths of the business
are known as internal competencies. This helps businesses to protect market share within the
existing market and penetrating within the new markets (Gundala, and Khawaja, 2014). The
following are the strengths of Chipotle Mexican Grill which will help it to expand within the
United Arab Emirates market.
 Tasty food menu
The main menu of the organization is tacos, salad, burritos, and burrito bowl. This organization
differentiates itself from competitor’s restaurants and hotels by offering unique taste and food
with good spices. This is because tasty food is known as the base of its spices and attracts a huge
number of people to come and have a meal by enjoying a peaceful environment and culture. This
will be effective for the Chipotle Mexican Grill in UAE as regularly follow the unique concept
with a unique offering and serve the customers the best food.
 Organization mobile application
This organization has already launched the mobile application in which customers have the
option to choose the appropriate dishes and place the orders. This organization runs loyalty
programs to improve the utilization of applications that present more than 14400 people
downloaded the application. This organization has more than 25000 active users within the
application and regularly increasing consistently. This will be effective for the Chipotle Mexican
Grill in UAE as minimize the lines of waiting and customers will have the option to place the
order very fast that comes within the restaurant.

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 The classic style of cooking
There is a classic style of cooking is used by the Chipotle Mexican Grill chef. This organization
does not serve the ready-made and industrially prepared ingredients within the restaurant. This
organization uses the knives to cut fresh vegetables and meat then cook within the pan and pots.
This organization cooks the food on the choice of customers as also use a stove or grill it. This
will work for the Chipotle Mexican Grill in UAE and help to gain the competitive advantage and
maintain the position
 Fresh, clean, and quality food
This organization offers quality food with the integrity that phrase its branding as customers in
today’s time prefer fresh ingredients within the preparation of food. This is broadly known that
restaurants in the UAE usually use frozen meat and vegetable. Chipotle Mexican Grill will work
effectively within the UAE and gain success as completely uses fresh vegetable, meat, rice, and
many other ingredients of preparation of food. Everything within the organization kitchen comes
fresh and the chef uses it daily. This organization not follows the concept of freezing and keeps
on using it for weeks.
 Economical pricing
This organization serves freshly prepared food that generally costs more but it charges only
economical prices from customers. Food menu items of the business include prices ranging from
$1.5 to $8 for its products. This will help it to maintain the position within the market of UAE.
 Reliable and continue suppliers
This is a universal truth that cooking food with fresh ingredients is a very challenging task due to
the unavailability of fresh ingredients. This organization performs effectively as keeping the
strong network of the suppliers which enough capable to offer these kinds of services.
 Rightly processed meat
In today’s time, there has been a huge discussion on animal welfare. These should be kept well
within the human way before slaughtering. Chickens and pork, chipotle are cautious regarding

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these things and organization only prefer those suppliers which treat animals well within the
farms.
Weaknesses
These are also known as the internal flaws of business that management should be aware of it. In
today's competitive environment businesses need to know the weaknesses compare to strengths.
Competitors usually target the organization weak points and take a competitive advantage within
the market. So this is very important for the Chipotle Mexican Grill to know the weaknesses and
expand within the market of UAE.
 Few items within the menu
Chipotle Mexican Grill is operating within the many nations but offers the few items within the
menu. This is important for the business to offers the many varieties of dishes to customers to
target the larger market. This organization to stand within the market of UAE should include the
Panera bread within the menu.
 High level of sodium within products
In today’s time customers like the salt to make the meal tasty and spicy but some of the blood
pressure patients not like the salt within the diet. Food items of the Chipotle Mexican Grill are
salty and have a high level of sodium which is good and healthy and young people. This is not
good for the people that suffering from high blood pressure. The organization should offer the
salt-free foods and have the option to add the lemon that is sour but not contain sodium.
 Rely on a few suppliers
Chipotle Mexican Grill is heavily relying on the suppliers regarding fresh chicken meat,
vegetables, ingredients, and rice. Chipotle Mexican Grill supplier network damages than the
entire business will fall within the jeopardy. This is important for the business to have
alternatives or another supplier network to reduce risk factor within the UAE.

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Opportunities
Opportunities are known as the external factors which business can utilize as an advantage to
increase the share within the market and profit. Some of the key opportunities for the business as
follow.
 Expansion
The main focus of Chipotle Mexican Grill is USA customers although it has restaurants in other
nations. These are very few and almost 37 to be more precise. This is very low for the
multinational brand as a market at a global level is very large. Chipotle Mexican Grill should
keep on spreading the operations in other nations (UAE) like Burger King and McDonald in
place of relying on the market of the USA.
This has been founded within the research that California has a huge number of Chipotle
Mexican Grill locations with more than 16 percent within the USA with 418 locations. There are
almost 40 million populations within California. There is one Chipotle Mexican Grill for 90000
people. There are major numbers of locations within Los Angeles (5%), Sab Diego (4%), and
San Jose (4%).
There are more than 221 stores of Chipotle Mexican Grill in Texas to serve for every 28 million
people. There is an outlet to serve more than 128000 people. There is almost 9 percent of the
total number of locations within Texas. There are more than 192 stores of Chipotle Mexican
Grill to serve 12 million people. This organization has an outlet to serve every 61000 people.
There are almost 7% of the total number of stores within the state.
 Update and upgrade
In today's time, customers and the marketplace are very dynamic that regularly changes.
Customers like and prefer different things whether food, menu and taste. Chipotle Mexican Grill
regularly focuses and keeps on change by offering the different services and products to
customers to keep on their coming.
 Orders from application

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This has been founded within the research that at the end of 2019, that Chipotle Mexican Grill
has received more orders through the use of a mobile application that has increased to a great
extent as created the $257 million that is 18.3 percent of total sale. There are huge opportunities
for Chipotle Mexican Grill to work on the online system and delivery system as it is known as
the growing field and has the potential to earn more money for the businesses in UAE. There are
many organizations like Uber Eats, Door Dash, Grub Hub, and many more which earn a huge
amount of profit by the online orders.
 Drive-through service
This is known as the type of service in which customers not required to leave their car and get
the product and services like shopping through staying within the vehicle. Chipotle Mexican
Grill has launched the services known as the drive-through to serve the more customers its casual
dining restaurants in Arizona and Yuma. It has also done the planning to add more features
within the other cities.
 Train and keep highly skilled employees
This is a universal truth that skilled employees are known as the asset of an organization. These
are effective to add the values within the product and bring more business as develop an effective
relationship with customers. This will be effective for the Chipotle Mexican Grill in UAE to
provide the training to employees continuously and give them competitive salaries as per the
market. This will bring more opportunities for businesses to maintain the required level of
employee retention.
 Delivery services
Customers prefer new technologies due to the changing socio-economic environment. People
like the food on their doorstep in place of traveling and waiting within the lines. Chipotle
Mexican Grill has created a partnership with the Door Dash regarding the delivery of services.
This will be important for the Chipotle Mexican Grill in UAE to invest within the delivery
services to stand and compete within the market.

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Threats
Threats are known as external factors and hurt the business. Threats for the Chipotle Mexican
Grill are as follow.
 Unhealthy food violation
Chipotle Mexican Grill has a very good history of violating safety and health standards. This
happened many time over the timer period as people got ill after eating the food from its sub-
branches. This is known as the miracle as an organization is still within the market and earning
profits. These kinds of scandals and incidents are known as disastrous to the life of an
organization. Chipotle Mexican Grill should take these kinds of incidents very seriously and
confirm that these kinds of incidents should not take place again.
 Highlight legal challenges
Chipotle Mexican Grill falsely claims that it has low calories within the products. This is false
and away from the reality of truth. This organization should remain careful with the particular
legal proceeding in running nations and expanding nations such as the UAE.
 Difficulties in the retention of employees
Chipotle Mexican Grill is not investing regularly within the career of employees and
management as hire workers temporarily. The company should focus on retaining skilled
employees and management. This will help the business to gain a competitive advantage and
earn a profit at a high level.
 Inconsistent supply chain
Laws regarding the protection of employees are regularly becoming tougher that creates the
difficulties for the Chipotle Mexican Grill to have a stable and reliable supplier. This puts the
entire business within jeopardy as while customers are within the restaurant the need to desire
food.
 Strong competitors

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The business and competitors within the food industry are regularly growing. Competitors are
dividing the entire market shares that have a very big impact on individual businesses. This will
be important for the business in the UAE to change according to the markets and implement
effective strategies.
Market research
Chipotle Mexican Grill is known as the publically trading organization of American origins. This
is an eating joint regarding fast food products and associated with the industry of food and
beverage. The unique sales position of the business is that it is known as the highly acclaimed
brand which uses organic and natural ingredients (Yusuf, Shukor, and Bustamam, 2016).
Product
Chipotle Mexican Grill offers many Mexican flavored food products within a sophisticated style
to customers. This offers integrated fine casual dining with casual and fast food items to offer a
unique and different experience to customers. This company offers a limited menu with the six
dishes but includes lots of varieties within it.
The company focuses to implement more within the restaurant programs such as recycling and
compost regarding food packaging disposal. This organization has the objective is to guarantee
100 percent for restaurant recycling and more than 20 percent of organization restaurants are
composting (Food Business News, 2020).
This organization in the UAE should focus and give more attention to provide the optimum
quality products. It will force the customers to visit again and again. The company should offer
Chips with dips, margaritas, and soft drinks with many dishes. For toddlers, it should offer the
special kids menu.
The company has a website that offers full disclosure regarding the use of ingredients. Fresh
ingredients are appropriate within every store and supplied through the farmers and suppliers at
the local level. Products which included within the menu card of Chipotle Mexican Grill are
described below.
 Crispy Corn Tacos

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It includes three shells of crispy variety with the choice of cheese, salsa, and meat.
 Burrito
This is a flour tortilla with many choices of cheese, sour cream, meat, beans rice, and salsa.
 Burrito bowl
This is served within a bowl and includes options such as cream, salsa, and beans.
 Salad
This serves as chopped lettuce which created by the choices of choice of customers meat and
ingredients such as cream, beans, and salsa.
 Sot flour tacos
This includes soft flour three tortillas with the choice of cheese, sour cream, and romaine lettuce.
 Kids menu
This includes the options according to preference such as seasonal fruits, chips, juice, and
organic milk.
BCG matrix
This will be effective for the Chipotle Mexican Grill in UAE to evaluate product line through
assessing their potential growth within the market. The products for the organization can be
classified within the following categories.

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 Stars
Products with the high potential growth the big level of share within the market are classified as
the stars. Chipotle Mexican Grill should regularly increase investment after including the stars
within the product lines.
 Question marks
Products with high market growth but low share are considered as the question marks. This will
be good for Chipotle Mexican Grill to analyze the reasons for low share within the market
despite the high rate of growth such as menu related to kids and breakfast burritos.
 Cash cows
Products with low growth but high share within the market are known as the cash cows which
required to be milked for regular good performance within the market of UAE with limited

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opportunities and low growth such as burrito Bowls, Crispy Corn Tacos, Sot flour tacos, and
Burrito.
 Dogs
These include the products that have low market share and growth and divest difficulties to make
the profits and gain adequate return through investing within the dogs such as alcoholic
beverages.
The high number of stars and cash cows will present the good performance and a high number of
dogs and question marks will create a concern for Chipotle Mexican grill. Classification of the
products will work for the business and necessary to evaluate the market strategy success of
Chipotle Mexican Grill in UAE.
Place
This organization is known as the international chain of fast food products (Hassan, 2012). This
organization at the starting phase catered to the only United States customers. This organization
has started global expansion plans in locations such as Paris within France, Langley in Canada,
London within the United Kingdom and many more. This organization has started the first
restaurant within Denver in Colorado. In present organizations have stores in more than 2250
locations.
The retail strategy for the Chipotle Mexican grill will include reaching more people through
appropriate distribution. In UAE it will focus on the website, contest, email marketing, food
application, and use social media marketing at a high level. This organization will provide the
services to customers to order food from website and option to track which help customers to
find the outlet near their areas very easily. This organization will provide an effective
arrangement of seating with fast and effective services. It will display the ingredients and
customers will have the option to watch the process of making dishes. This organization has a
field support team that includes the regional directors, directors of a team, area manager, leaders
of team and apprentice leader of a team which will help the business to open the new outlet in
UAE. The field team will have the duty to hire and manage the new general manager regarding
the new restaurant. The chain of business is owned at a corporate level which will help to
corporate store handle selection and fining of place for a new store and provide the funds.

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Price
This element of marketing strategy needs an evaluation regarding the value of products to
targeted customers (Madichie, and Gallant, 2012). The pricing strategy for the Chipotle Mexican
grill will focus to set the price lists, terms of credit, periods of payment and discounts. The
company should use the price penetration strategy as it will help it to set a low price compare to
competitors. This organization will remain capable to win the share within the market based on
discounted pricing. This will be important for the business to remain aware of the potential
relations from rivals in UAE regarding undesired war of price. The company will introduce the
allowances in which it lowers the values for a small period to attract more customers and gain
the share within the UAE market. This will focus on minimizing the percentage of values of its
products.
Promotion
This is known as the important element for business marketing strategies (Azzam, and Rettab,
2013). Chipotle Mexican grill promotional plan will include the many factors according to the
pull and push strategy. The promotion strategies like pull and push strategy will work for the
business to attract more bases of customers. This organization will create the content of the
message and evaluate the crafted messages that help to create an important image of offered
products. The promotional strategy for the business will include direct selling with high profile
digital advertising and suit as an organization likes to push the products. The pull strategy for the
business will work to develop the prestigious image of the brand which attracts more customers
through digital marketing methods and offer many products.
Conclusion & recommendations
In the limelight of the discussion, it can be concluded that Chipotle Mexican grill will gain
success within the market of UAE through effective analysis. Strong and strict budgetary
controls at a financial level will help the business to run smoothly in the market of UAE.
Management of the company will focus to provide the training to employees and management to
serve customers appropriately. This will work for the business to attract more customers and gain
success within the competitive market of UAE. This organization by focusing on the more
advertisement will become more capable to attract more customers. Management of Chipotle

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Mexican grill in UAE should also focus on the product differentiations that help to gain a
competitive advantage. This organization has a good corporate image with long term
relationships with suppliers that make it easy to make the proper plans for expansion and execute
them effectively. The appropriate marketing plan will help a business to revolutionize the
business within the market of UAE.

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