Wednesday, November 2, 2016

Week 4 EOC: Chipotle, The E coli outbreak

In 2015 one of America's popular, new-rising restaurants suffered a large fall-- an E Coli outbreak. Chipotle Mexican Grill found that its outbreak had them suffer a large loss-- in revenue, that is. SO how did/will Chipotle gain its comeback? The upscale fast food restaurant began by, in a sense, giving away free food. This strategy was used in order to keep returning customers and build a new customer base alongside that. Chipotle had decided to hold off on new establishments being open in order to keep focus on marketing plans within the already-existing stores. Creating new environments offered a friendly and inviting space for new clients to see what the chain has improved. Chipotle held a company meeting in February of 2016, where they discussed marketing tactics and how they will gain customers back.Their plan was to hand mail buy-one-get-one coupons to loyal customers in which they lost. "Some guests may come to an establishment primarily for its products, while others may come because of the service or convenience it provides" One strategy the used was to have their fresh produce be cut at a different location, in order to prevent cross contamination. If chipotle identifies its target market, they can find better marketing strategies for their chain. "peer group is a social group consisting of people with similar characteristics such as interests, age, education, or socioeconomics status."

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