International Marketing for Chipotle Mexican Grill in Australian Market

This paper discusses the expansion of Chipotle Mexican Grill in the Australian market through international marketing. It covers the Australian market segment, market entry modes, frameworks, and target segments.

International Marketing

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Contents
Introduction.................................................................................................................................................2
Australian Market Segment.........................................................................................................................2
Market entry modes.....................................................................................................................................6
Frameworks.................................................................................................................................................8
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

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Introduction
International marketing defines the promotion activities in order to promote the company at the
international market. It is required for the company to expand the business at the international
level. The companies have to aware the consumers for their product in order to increases the
volume of sales of goods and services (Ahi, Baronchelli, Kuivalainen, and Piantoni, 2017).
Marketing is the only source to promote the goods and services of the company to aware the
consumers. In this paper, the discussion is made on the topic of “international marketing”.
International marketing helps in expanding the business from one nation to another by attracting
the consumers towards the services.
In this paper, Chipotle Mexican Grill is a fast casual restaurant of America. It was founded in the
year 1993. It operates the business at the international level as it offers the services in United
States, Germany, United Kingdom, France, and Canada. The company also trade in New York
Stock Exchange with the symbol of CMG. It is number one fast chain of fast food. There are
various competitors of Chipotle such as Rubio's Coastal Grill, Moe's Southwest Grill, Qdoba
Mexican Grill and Baja Fresh. It had 16 restaurants and its chain in different 500 locations. The
company earned US$475.6 million with the help of 45000 employees in the year 2015
(Daszkowski, 2019). Although, the company operates the business at the global level but now it
wants to expand the business in Australian market to grasp the market share.
Australian Market Segment
Australian Food service market is categorized in different segments such as full service
restaurants, café and bar, fast food, street stall and kiosk and it offers 100% home delivery

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restaurants. As the Australian forecasting market, the fast food industry reaches at 80.7 billion by
the year 2024 (Mordor Intelligence, 2020). The fast food chain market increases the number of
people of eating of fast food and increases the number of people eating away from home.
Chained Food operators show the steady and positive growth over the coming year.
Target and segments
There are different segments of food service in Australian market such as self-service
restaurant, , fast food, street stall, full service restaurant and kiosk, cafe and bar, and 100% home
delivery restaurant. Other segmentation of the food service market is based on foodservice
structure under independent consumer foodservices. There are two main segments in which the
food service market has been categorized and these are types and structure.
By Type Fast Food
Café and Bar
100% Home delivery
Full service restaurants
Self-service restaurants
Street Stall and Kiosk
By Structure Independent consumers
Food service
Chained Consumer Food service (Mordor
Intelligence, 2020).
Targeting, segmentation and positioning of fast food products of Australia

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Segmentation Type
Segmentation Criteria
Target Customer
Segment
Geographic Region Domestic or Global
level
Density Urban or rural areas
Age 8-45 years
(Camilleri, 2018).
Demographic Gender Men, Women and
the others
Occupation Although, it is not
required but it is
developed especially
for students and
professionals as they
live stay away from
their homes
Students, employees
and professionals are

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the main consumer
target (Ansoff, et. al,
2018)
Life Cycle Stage Bachelor Stage
Married Couples
Full Nest II
Behavioural Degree of Loyalty High loyalty
Personality Easy going
User Status Potential and regular
fast food
Benefits Cost benefits and
time efficiency
Psychographic
Social class
Lower, middle and
upper class
(Andaleeb, 2016)
Market entry modes
There are various modes of entries that can be used by the company to enter the Australian
market for operations and these are exporting, licensing and franchising, acquisition, venture,

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partnership, partnering and strategic alliance. These are the mode of entries that helps the
company to attain the success in new market.
Exporting
Exporting defines the easiest ways to enter the global market as the company has to deliver the
goods from the home country without opening physical stores in new market.
Pros: The main advantage of selecting the exporting as the mode of entry is the fast entry. The
company can enter the market quickly with the small amount of investment. The other advantage
is the low risk as the company can enter the market without physical appearance due to which
the cost of establishing the stores is reduces (Desai, 2019).
Cons: The disadvantage of exporting is the low control over the supplies of the goods or
handling the operational activities. The other disadvantage of this mode of entry is the low local
knowledge as the company delivers the goods from one place to another but it does not operate
physically due to which the ability to analyze the market has been reduces.
Partnership- Partnership defines the two companies or individuals are getting merge in order to
operate the business with similar target consumers to help each other.
Pros: The main advantage of this mode of entry method is the sharing cost that helps to reduce
the investment amount while establishing the business. This method also helps to reduce the risk
related to operations as the losses has been divided among partners due to which the amount of
loss has been reduces for an individual.
Cons: The disadvantage of this method is the higher cost as compare to licensing and
franchising. The other problem is the integration problem among the partners as the culture of

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two companies or individuals are not same due to which the chances of conflict is arises that
affects the performance of operation of new market (Schellenberg, Harker, and Jafari, 2018).
Licensing and Franchising: Licensing and Franchising defines the permission card from
government. Franchising defines the large number of stores in different location that offers the
similar products (Andreu, Claver, and Quer, 2017).
Pros: It is observed that the company enters the market quickly in order to operate the business
effectively. The other advantage of licensing and franchising is the low cost as the establishing
the franchises in different location that consumes less cost.
Cons: It has been found that this method is less controllable as there are franchises opens in
different locations due to which it is difficult for the manager to control all the franchises at a
time. It is also observed that it is difficult for the company to take licenses from government.
Acquisition: Acquisition defines the process of a company that buy the another company for
expansion.
Pros: It is observed that the company can easily enter the market quickly with the help of
acquisition method. It is advantage for the company to have the established business that helps to
attain the high success in business. As the company acquire the existing companies due to which
the company has the point to not to take care about the building the brand image.
Cons: This method contains the high cost as the company has to acquire the other business as
per its amount of assets and liabilities. It is difficult for the company staff members to indulge
with the other company’s environment (Andreu, Claver, and Quer, 2017).

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According to the above discussion of methods of mode of entry, it is observed that each and
every method has their own pros and cons. It has been found that franchise and joint venture are
the best method of mode of entry as it helps the Chipotle to attain the high success in Australian
market. In Australian market, it has been seen that the food service companies segmented into
different categories such as 100% of home delivery, restaurants, cafés and many others. As the
companies have their own individual entity according to the different segmentation due to which
it is easy for the company to enter the market with the acquisition or joint venture. The company
can also enter the market with franchises as there is no category fall in Australia related to
franchises. Franchises method is one of the best modes of entries strategies for Chipotle as it
helps to build the strong brand image in Australian market. But it is suggested that the company
has to establish the franchises of fast food products in different locations so that the more or
more attracted towards the organization goods. It is a fact that the large number of consumers
helps the company to attain the success in terms of meeting its objectives such as earning
revenue, grasp the high market share and enhancing the brand value (Andreu, Claver, and Quer,
2017).
Frameworks
For the expansion of the company, it is required to implements the strategies or framework in
order to operate the business smoothly or effectively and these are described as follows:
Pricing Strategy:
Pricing strategy defines the set of amount of selling the product. It has been found that Australia
has their different categories of food services which affect its sales. It is suggested that the
company has to set the cheap prices at the initial level in order to attract the more or more

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consumers towards the services of the organization. By building the brand image of the
company, it can set the high prices so that it can earn the high revenue which is the main motive
to expand the business at the international level (Išoraitė, 2016).
Distribution Strategy:
Distribution strategy is one of the elements of marketing mix that defines the process of
allocation of goods from one place to another in order to satisfy the demand of consumers. It is
recommended that Chipotle has to implement the indirect distribution and selective distribution
strategy (The Economic Times, 2019). According to Indirect strategy, Chipotle has to distribute
the food products from different channels such as manufacturer to retailers to consumers. As per
selective distribution strategy, the company has to deliver the goods to consumers with the
selective process. These frameworks help the organization to offers the services to large number
of consumers that directly helps to earn revenue or to attain the high objective (Bhasin, 2018).
Promotional Strategy:
Promotional strategy defines promotion or marketing activities that help to attain the success at
the higher level. It is essential for the company to aware the consumer towards its goods and
services so that they get attracted towards it and bought the goods. There are various promotional
tools that can be used by the company to promote the fast food product in the Australian market
such as television, social media, newspapers, street board and many others (Kerin, and Hartley,
2015). It is recommended that the company has to implement the social media as the promotion
strategy as it helps to spread the awareness among the consumers. The company can spread the
awareness among the customers within a single click or picture uploaded. It also has to use the
newspaper, magazines to inform the consumers related to their fast food products by posting its

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food pictures in food blogs or sections. Newspapers and magazines are the best source to
promote the food product but it is a fact the large number of consumers read these things due to
which the chances of increases the sales has been arises (Stead, and Hastings, 2018).
Conclusion
At the end, it is concluded that Chipotle can expand the business in Australian market and attain
the high success in business. According to the Australian market, Australia food service has
divided in different segments such as 100% home delivery, small firm hotel and restaurants and
the others. The company has to enter the Australian market with the franchises and joint venture
in order to attain the high success in operation. Promotional, price and distribution strategies are
also design by the company to operate smoothly and effectively.

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References
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