Marketing Management Report: Chipotle Mexican Grill in the UAE Market

This marketing management report assesses the potential for Chipotle Mexican Grill's expansion into the United Arab Emirates (UAE) market. It begins with an executive summary and introduction, providing an overview of Chipotle's current status, product life cycle, and market position. The report then delves into a competitive analysis of the UAE restaurant industry, identifying key competitors and market trends. A detailed target market analysis is presented, focusing on demographic, behavioral, and psychographic segmentation to identify the ideal customer profile. A comprehensive SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis evaluates the internal and external factors impacting Chipotle's success in the UAE. The report also includes market research, focusing on product, place, price, and promotion strategies, supported by a BCG matrix analysis. The report concludes with recommendations for Chipotle's market entry strategy, drawing on the findings of the analysis and offering insights into how the restaurant can successfully establish itself in the competitive UAE market. The report is contributed by a student and is available on Desklib, a platform providing AI-based study tools.

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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