U.S. Markets closed

Chipotle is Spending Big on Its Marketing and Promotional Programs

Ralph Nathan

Is This the Beginning of Chipotle’s Revival after E. Coli Crisis?

(Continued from Prior Part)

Marketing budget

To communicate its food safety enhancement procedures and win back its customers, Chipotle Mexican Grill (CMG) is conducting aggressive marketing and promotional programs. The company has set a $50 million budget for these initiatives in 1Q16.

Marketing and promotional programs

Utilizing the largest marketing budget in the company’s history, Chipotle Mexican Grill (CMG) has planned to run traditional advertising campaigns from February to June 2016. The company plans to cover its major markets with outdoor, radio, print, and digital advertising. Chipotle’s advertisements are designed to reinforce the company’s commitment to food quality, redirecting the focus from the company’s food safety or related issues.

Direct marketing

In addition to its traditional advertising campaigns, Chipotle Mexican Grill has launched direct marketing campaigns using direct mail, mobile, and social marketing platforms. The direct marketing efforts will be implemented from February to May 15, 2016. Recently the company conducted a Raincheck promotion, which offered customers a free burrito if they text “rain check” to the number shown in the above graphic.

Chipotle is planning to build its marketing programs for the third and fourth quarters of 2016, depending on the responses it gets for its efforts in the first and second quarters. The company also stated that its spending on marketing for the first two quarters of 2016 should be significantly higher than the last two quarters.

Food safety website

In addition to its marketing and promotional efforts, Chipotle Mexican Grill (CMG) launched a food safety website on February 8, 2016, which outlines the company’s enhanced food safety procedures.

Alternatively, you can gain exposure to CMG by investing in the iShares Core S&P 500 ETF (IVV), which invests 0.09% in CMG. IVV has also invested 0.62% in McDonald’s (MCD), 0.49% in Starbucks (SBUX), and 0.18% in YUM! Brands (YUM).

Continue to Next Part

Browse this series on Market Realist: