1. BRAND AUDIT
Qijiao Fan
Hai Nguyen
Weizhi Feng
Adrian Torres

2. Part I: Brand Inventory – Company View
History and Corporate vision
Inspired by authentic ingredients and the economic model of one local taqueria
store in San-Francisco, Steve Ells began to open the first Chipotle store in 1993 at a
former Dolly Madison ice cream location near University of Denver campus. The first
Chipotle was a wide success. After two years since the first Chipotle opened, Steve
added the second and third Chipotle locations. In 1996, Chipotle Denver area restaurant
opened. Following the extraordinary successes, Chipotle was able to invite more
outside investors to expand the scale of production to give way for the Chipotle’s
openings outside of Colorado: Minneapolis, MN, Columbus and OH. After Steve visited
some individual local farms, he found out pigs were raised in air-opening area as
opposed to the way majority of pigs were raised. So he decided to dg pork and chicken
naturally.
Chipotle went public on New York Exchange in 2006. After that, Chipotle still kept
focusing on providing the most authentic and healthy ingredients within each burrito. His
vision is to serve 100% naturally raised beef in the near future. Moreover, Steve
promoted to eliminate the antibiotics in ranching. From the year Chipotle opened until
now, it has always been emphasizing on pursuing high-quality ingredients and cooking

3. techniques to provide best eating experience for customers and fulfilling corporate
social responsibilities.
Driven by its main vision “Food with Integrity” -which is to serve the food made
with ingredients that serve the best for animals, environments and farmers, Chipotle is
still following it and making progress year by year. By 2010, 75 million pounds of meat is
naturally raised in a human way without given any antibiotics or added hormones.
Besides naturally raised animals and providing fresh meat, we expect to increase the
percentage of our cheese and sour cream made with milk from pasture-raised cows. We
will continue following our vision and improve our business performances by
strengthening our economic models and expanding restaurant margins.
Menu and Food Preparation
Chipotle serves only a five things: burritos, burrito bowls, tacos and salads. But
because customers can choose from four different meats, two types of beans and a
variety of extras such as salsas, guacamole, cheese and lettuce, there’s enough variety
to extend its menu to provide countless choices. Chipotle said that it plans to keep a
simple menu, but it will consider additions that it thinks make sense. Chipotle also
encourages customers to let it know if they can’t find something on the menu that’s
quite what they want; and if they can make it from the ingredients they have, they’ll do

4. it. In addition, Chipotle started to offer Kid’s Menu in 2009 to attract more families to
their restaurants.
Food With Integrity: Chipotle wants to keep a simple menu so that they can
concentrate on where they obtain each ingredient, and this has become an integral part
in their effort of providing high quality food. For example, as of December 31, 2010, all
of Chipotle’s restaurants served carnitas made with naturally raised pork, as well as
barbacoa made with naturally raised beef. Also as of December 31, 2010, about 80% of
Chipotle restaurants served naturally raised steak and about 86% of our restaurants
served naturally raised chicken. Naturally raised meat is defined by Chipotle as the
meat coming from animals that are fed a pure vegetarian diet, never given antibiotics or
hormones, and raised humanely. Chipotle said that its definition is stricter than the U.S.
Department of Agriculture’s standard for naturally raised marketing claims.
“In preparing our food, we use stoves and grills, pots and pans, cutting knives,
wire whisks and other kitchen utensils, walk-in refrigerators stocked with a variety of
fresh ingredients, herbs and spices and dry goods such as rice. Ingredients we use
include chicken and steak that is marinated and grilled in our restaurants, carnitas
(seasoned and braised pork), barbacoa (spicy shredded beef) and pinto and vegetarian
black beans. We add our rice, which is tossed with lime juice and freshly chopped
cilantro, as well as freshly shredded cheese, sour cream, lettuce, peppers and onions,
depending on each customer’s request. We use various herbs, spices and seasonings

5. to prepare our meats and vegetables. We also provide a variety of extras such as
guacamole, salsas and tortilla chips seasoned with fresh lime and kosher salt. In
addition to sodas, fruit drinks and organic milk, most of our restaurants also offer a
selection of beer and margaritas. Our food is prepared from scratch, with the majority
prepared in our restaurants while some is prepared with the same fresh ingredients in
commissaries.
Marketing Mix
Product
Chipotle is best known for its large burritos, which are wrapped in foil paper and
served hot. They are made by flour tortilla with rice, black beans, meat, salsa and
cheese inside. Beside burritos, Chipotle also served other food including burrito bowl,
crispy and soft tacos, and salads, with a choice of chicken, pork carnitas, barbacoa,
steak, or vegetarian.
Price
Chipotle distinguishes itself from its premium pricing strategy. Comparing with
their competitors in a broader sense, such as McDonald’s or Subway, Chipotle priced
their food higher. The price starts around $5.95 for a Chicken Burrito and can reach as
high as $8.15 for a Steak burrito with Guacamole. Prices of burritos depend only on the
types of meat. Customers can add all kinds of beans, rice, and salsas with no extra

6. charge. The brand image is enhanced by a relatively higher price than other fast food
restaurants.
Promotion
Chipotle has run many promotions giving out free food to potential customers,
especially when opening a new store. Stores also give out free burritos on certain
occasions; for example, Chipotle gave away free burritos to reporters during the 1997
trial of Timothy McVeigh, which took place in Chipotle's hometown of Denver, and so did
they to those displaced by Hurricane Katrina in 2006.
For Halloween 2010, Chipotle announced that customers who dressed as a
processed food product would receive a burrito for $2. The event was part of a $1
million fundraiser for Jamie Oliver's Food Revolution called “Boorito 2010: The Horrors
of Processed Food." The promotion is
aimed to increase awareness of
family farms. Also in support of family
farms, Chipotle released music videos
of Karen O of the Yeah Yeah Yeahs
and Willie Nelson.

7. Locations
Since its first restaurant opened in 1993 in Denver, Colorado, Chipotle has been
putting effort in distribution throughout
the years. Today, the company has
more than 1200 locations, with
restaurants in 41 states, Washington
D.C., Toronto, and London, making it
very convenient for customers to buy
their food anywhere they go. Chipotle
offers various ways to distribute their food. Even though most customers order food in
store, they can also order it online or use the ordering application on an iPhone, or even
just send the order to the Chipotle store that is closest to the customers through fax.
There is also an ordering method available for events from which customers can order
burritos by box. In Austin, TX, Chipotle
recently started a new distribution
channel by sending out a truck with all
the cooking facilities inside. This
distribution form is a copy from Mexico
where such vendor trucks are common.
Followed by an irregular schedule released on Twitter, the truck goes to sell Chipotle in

8. different places of the city. The Chipotle truck serves almost the entire in-restaurant
menu except chips and crispy taco shells and the same ordering process.
Communications and Marketing Activities
The company has put a lot of efforts in communicating with customers through
different platforms. For example, on the website page of Chipotle there is a section
named Fan-Antics, where Chipotle’s fans can leave a message or submit their pictures
that can be displaced on the website. Meanwhile, on their Facebook page there are
people posting on the wall nearly every minute and most of them get replied from the
Chipotle immediately.
Meanwhile Chipotle has been actively engaging with the local communities.
Chipotle thinks that “Each and every Chipotle restaurant is an active part of the
neighborhood around it- because without a neighborhood, you couldn’t have a
neighborhood burrito joint.” So far Chipotle has been hosting and participating in a great
number of social events. These events, ranging from high school basketball team dinner
to workshop of educating people about their core value “food with integrity”, have all
been helping to increase the brand awareness of Chipotle.
In the past, Chipotle mainly relied on billboards, radio ads, and word-of-mouth to
advertise. However, in 2012, Chipotle aired its first nationally televised commercial
during the 54th Grammy Awards ceremony. Chipotle received attention when Ozzy

9. Osbourne’s reality shows The Osbournes featured the company's burritos heavily.
Chipotle was also mentioned throughout the "Dead Celebrities" episode of the television
series South Park.
Event Sponsorship & Community Building
3rd Annual Haley Pontiac- Chipotle Bryan Circuit
Race
Location: Richmond, VA
Date: May 2009
! Burritos on wheels? We got to sponsor a
circuit race in Richmond with over 250 local
cyclists participating. Burritos and chips and
salsa were passed out to fuel the riders. Primes
(pronounced "preem”-- which is your French lesson for the day) are awards
given for riders who reach milestones during a sprint, and in this ride the
primes were burrito bucks. It was exciting to see the riders put the pedal down
when they knew a burrito was on the line!
Catch 25 Foundation Fundraiser
Location: New York City
Date: December 2009
We were pretty excited to work with the
Yankees World Series Champion Manager Joe

10. Girardi's Catch 25 Foundation (which is dedicated to supporting individuals and
families around the country suffering from ALS, Alzheimer's, cancer and fertility
issues.) The West 45th Street Chipotle held a fundraiser that raised over $5100!
Brand Attributes
Throughout the years, Chipotle has always focused on more than just providing
fresh, organic burritos made with high quality raw ingredients. We focus more on the
source of ingredients and keep finding the ingredients raised with the respect for the
animals, the environment and farmers guided by our “Food with Integrity” vision. In
order to provide the best eating experience rather than “fast-food experience, we are
trying our best to provide the best eating experience at Chipotle by also emphasizing on
sanity, interior design, service and atmosphere. As a result, Chipotle has the following
brand attributes:
Better ingredients Tasty food Fresh cooking
used and grow in Clean restaurant Sustainable design
sustainable ways Fun and energetic for each restaurant
Naturally-raised Chipotle culture Fast and organized
meat Wonderful dining Community
Use sustainable experience building-support
resources for food Implement the local farmers and
production concept “Food with work with large
Friendly service Integrity” (FWI) food distributors

11. Part II: Brand Exploratory – Customer View
Measuring Sources of Brand Equity of
Chipotle—Capturing Customer Mindset
In order to access Chipotle’s brand exploratory, our group has constructed a series of
qualitative and quantitative research to capture and measure sources of Chipotle’s
brand equity
In order to effectively build and manage brand equity, it is consequential to know
what customers think of Chipotle in terms of brand image, their beliefs and attitude
toward different brands, feelings, thoughts and perception. So we need to understand
consumers’ mindset by systematically conducting researches to measure sources of
customer-based brand equity. So we will measure that through both qualitative and
quantitative research techniques.
Chipotle Brand Tracking – Capturing consumer mindset
Purpose: In order to effectively build and manage brand equity, it is consequential to
know what customers think of Chipotle in terms of brand image, their beliefs and
attitude toward different brands, feelings, thoughts and perception. So we need to
understand consumers’ mindset by systematically conducting researches to measure
sources of customer-based brand equity.

12. Research Techniques: Qualitative and Quantitative
Aspects to Measure: Brand Awareness Brand Response
Brand Association Brand Relationship
Brand Image
Brand Awareness
(recognition of distance, angel, speed, perceived package size)
We measure Chipotle brand awareness in terms of brand recognition and brand
recall in order to determine the strength of Chipotle in consumer’s memory. Brand
recognition also is crucial for packaging. So we are eager to know if packaging is
distinctive enough to capture customers’ attention in the distance. Also we want to know
if our customers are able to recall some core brand elements like the name, logo, and
symbol and so on under some certain circumstances.
What appears in your mind when you think of Chipotle?
Finish this link C_I_O_L_
See if you can be aware and assess package designs of Chipotle.
If you want to have a fresh and tasty burrito, which restaurant would you consider
going?
If you want to dine in a Mexican restaurant, which restaurant would you go?
When do you think of your favorite fast food restaurant, what comes to your
mind?

13. Brand Association
We use free association task to determine what subjects come to consumer mind
when they think of Chipotle. And in this way, we can identify the range of possible brand
associations in consumers’ minds and indicate the relative strength, favorability, and
uniqueness of brand associations.
Tell me what’s on your mind when you think of Chipotle.
What does Chipotle name mean to you?
What do you like best about the Chipotle?
What do you dislike the most?
What do you find unique about the Chipotle? How is different from brands?
Who eats at Chipotle? In what situations? When and where do they eat at
Chipotle?
What do you think the reason why others like Chipotle?
Brand Image
Brand image of Chipotle is reflected by the associations consumers hold. But
unlike measuring brand associations, we will analyze the specific attributes of Chipotle
consumers think and their level of consideration to dine in Chipotle at a regular basis.

14. What are the strongest associations you have to Chipotle? What comes to mind
when you think of Chipotle? (Strength)
What is so good about Chipotle? What do you like about Chipotle? What do you
like or dislike about Chipotle? (Favorability)
What is unique about brand? What features does Chipotle share with other
brands? (Uniqueness)
Brand Response
We are curious about how consumers can combine all their considerations to
make a final purchasing decision. We need to specifically measure purchase intention
of our consumers. And we will focus on the likelihood for consumers to buy Chipotle or
switch to another brand by giving consumers scenario to see if consumers would like to
pick us.
“Assume you are very exhausted and hungry and you want to eat a
delicious burrito that will take less time to cook, and it is also fresh, healthy
and filling. Also, you want to find a nice place to cheer your mood up. If
you go to downtown and see lots of restaurants, which one will you go? ”

15. Brand Relationship
We will emphasize on two out of four dimensions : behavior loyalty and brand
substitutability to measure brand relationship. We can ask consumers some survey
questions to evaluate brand relationship as following:
How often do you eat at Chipotle? When was the last time you eat at Chipotle?
Which brand of burritos did you consider buying?
Which brand of burritos will you buy next time?
If Chipotle is not available in your area and you want to have a fresh burrito, what
would you have done? Or what other brands would you consider and why?
Customer Knowledge – What do customers
think about Chipotle?
The results from our marketing search and other sources such as comments on
Chipotle Facebook and Yelp allow us to conclude that a typical consumer brand
associations for Chipotle might be “love,” “big burritos,” “fresh,” “tasty,” “naturally-raised
meat,” “organic ingredients,” “casual dining experience,” “the outside and inside look of
the restaurant,” “Mexican,” “see you food being made in front of you” and so on. In
addition, the Consumer Reports ranked Chipotle as the best Mexican fast-food chain in

16. 2011, proving that Chipotle has successfully advanced its mission to serve “Food With
Integrity” and its commitment to building a unique and special people culture.
Mantra
“Food With Integrity”
Mental Map

17. Sources of Brand Equity
The following sources have helped create high brand awareness plus strong,
favorable, and unique brand image for Chipotle:
The Chipotle name, which means “smoked and dried chili pepper” in Nahuatl, the
native Aztec dialect, is one of the sources of Chipotle’s brand equity. In addition to its
authentic sound, Chipotle also chose the name because most of its food contains
ground chipotle pepper. This brand name seems to receive high awareness from
customers. The Chipotle Pepper Harvest logo is also a key source of equity. The new
logo on the right seems to receive better perception from the customer.
Chipotle’s brand equity is mainly contributed by the safe and great-tasting food
that it provides the customer. Chipotle’s burritos are usually perceived as huge ones,
which customers think worth their money. Chipotle’s commitment to using not only fresh
but also high quality raw ingredients such as naturally raised meat, organic produce,
and even dairy free of added hormones has created a differential effect in customers’

18. knowledge, especially to those who are health-conscious. Customers are exposed to
the concept of “Food With Integrity,” “Naturally-raised meat” when they are in Chipotle’s
restaurants or heard from friends. Customers will be curious to try Chipotle’s food to see
the difference.
Another important source of equity is the Chipotle website, which is fun,
attractive, creative and informative. It allows customers to locate Chipotle restaurants
and place orders easily. The website also provides a wide-range of details about
sources of the ingredients, nutritional information, and the history about Chipotle.
Customers have a relaxing and curious feel when they visit Chipotle website because
there are interesting things that they can explore. For example, the website shows
visitors how pigs should be raised, how their produce is grown, and recommended
reading.
The casual-dining experience in Chipotle’s restaurants is also an essential
source of equity. Customers said they are attracted by both the outside and inside look
of Chipotle restaurants. Also, having a chance to smell, see, and feel the sounds, the
smells, and the sights of cooking can really help customers work up an appetite. This is
a unique association which makes Chipotle different from other fast-food and fast-
casual brands.
Moreover, each Chipotle is designed with a kitchen that’s open to the entire
restaurant. Each ingredient is laid out in front of you so customers can choose the

19. perfect combination to make their meal. They can watch the process as their burrito,
bowl, tacos, or salad is prepared exactly the way you want it and handed to them almost
instantly. Some customers even said “they feel safe about their food because they can
see how their food cook and made in front of them, and it doesn’t seem they are hiding
anything from us.” Finally, the interior design of Chipotle and the music would make it a
fund and interesting place for customers to eat with families and friends.
Not only does Chipotle aim for quality food, but also for environmentally friendly
packaging. Their bowls are made from recycled newsprint. They use unbleached tray
liners, napkins and cups that are made from post-consumer waste. These proprietary
business practices separate Chipotle Mexican Grill from the rest of the sub-standard,
unethical, animal abusing brands in the restaurant industry.
An additional source of equity for Chipotle is its image as a community builder as
it works with local farmers to buy their organic produce. Also, through local events
sponsorships, Chipotle has established its unique image in the eyes of the customers in
those regions.
Another source of Chipotle brand equity is their creative packaging. Chipotle puts
great stories sent by the customers or hand writing narratives about their “Food With
Integrity” philosophy. Some customers said that they love reading the stories on their
cups while having the meal, while others said they knew Chipotle is using naturally-
raised meat through the stories on their cups.

20. Customer-Based Brand Equity Model
Customers love Chipotle
-Brand Loyalty
-Customer Engagement.
-Well-known for high
Resonance
quality burritos. -Fun experience
-High credibility on -Fresh
the sources of food. -Healthy
Feelings
Judgements
- Fresh, Big burritos
made of Organic -Distinguished
Ingredients, smoked jalapaño
Naturally raised logo
meat -Interior design of
- Quick & friendly
service, a higher but
Performance Imagery the store; wood and
metal.
reasonable price
Salience
High quality burritos, casual
dining
More depth than breath
Known but not very Prominent
Brand Awareness

21. Competitive Review
Fast-casual restaurants market
Chipotle positions itself as a fast-casual trendy restaurant which provides tasty, big
burritos made from high-quality organic ingredients at an affordable price: higher than
fast food but lower than the price of family restaurant, which satisfies the need for most
American consumers: an growing demand to consume health food: fresh, natural and
nutritious. Even though Chipotle was one of the earliest restaurants to promote this
industry, Chipotle is still facing fierce competitions in this industry. Competitors in the
fast-casual Mexican market include Qdoba Mexican Grill, Moe’s Southwest Grill and
Baja Fresh.
Figure 1: Figure 2:
Favorite QSR/Fast Casual Favorite QSR/Fast Casual
Restaurant Ranked by Number of Restaurant Indexed by
Votes Location Count

22. Figure 3:
Chipotle Restaurants State-by-state breakdown
Fast-Food restaurants market
Consumers who perceive the fast service of Chipotle will form a wrong impression
that Chipotle belongs to fast-food market. But the fact is that Chipotle does share
certain characteristics that correspond with fast-food market: reasonable price, fast-
service. Unlike fast-food restaurants, Chipotle serves burritos fast without providing
“fast-food experience”.

23. Strongest market competitors
Points of shared parity
Fresh, healthy ingredients Serve fresh, high-quality food
Fast Service Health-consciousness
Tasty burritos Serve food in a clean
Cooking in open spaces, 100% environment
transparency Reasonable pricing
Serve food in a clean
environment
Reasonable pricing
Points of shared difference
A variety of food options in menu (queso, A variety of food options
burrito, fajita, breakfast)
Franchising
Distinctive flavor: roasted, slightly sweet, fire-
grilled Customer rewarding program: E-
Catering Service
club, gift card
Q-cash Card reward program
“Our Sound” (more music options, free music
downloading)
Innovative, inviting interaction encourage
consumes try different things.
Franchising

24. How Chipotle Is Different
Points of Parity! ! ! Points of Difference
Fresh Food With Integrity
Healthy High quality food
Fast casual dining Naturally raised meat
Burrito Organic produce
Mexican Grill The restaurant experience
The unique story in founding the
company
Sustainable restaurant designs
Strengths Weaknesses
S Innovation Availability of brand specific
W Strong management team sourced foods
Strong brand equity Limited menu
O Strong financial position High costs for ingredients
T Community Involvement Slightly higher price than its
Strong Focus on Quality competitors
A
Opportunities Threats
N
Product Branding High competition in burritos
A Asset Leverage market
L Emerging markets and overseas Economic slowdown
Y expansion Lower cost competitors or
Offer products in grocery stores imports
S Expand secret menu Price wars
I Emergence of other similar fast-
S casual chains in the market
Substitutes

25. Recommendations
Expand domestically first and internationally later to enhance brand
awareness while maintaining the core value of the brand:
Currently, a lot of customers ask Chipotle to open new restaurants in their areas
because they love Chipotle’s burritos. This is a good trend for Chipotle to expand its
business and the breath of brand awareness. However, Chipotle needs to keep track
with its “Food With Integrity” philosophy because this is the most unique image that it
owns. Since it is difficult to look for supply in organic produce and naturally raised meat,
Chipotle should be considerate in opening restaurants so that it could still maintain its
uniqueness. Chipotle brand awareness is still not strong yet, so it should not risk its
reputation by leaving its core values.
Chipotle is having a few restaurants outside of the U.S, in Toronto and London,
and people in these areas say that they love Chipotle, too. There are also requests from
customers in Europe for more openings. Chipotle needs to do more research in Europe
market for the potential openings of Chipotle. Again, if Chipotle ever decided to
penetrate more extensively the international market, it would still need to consider not
only the taste and reference of local markets but also keeping the best ingredients in
their food. Finally, Chipotle could also explore the possibility of penetrating emerging

26. markets, where people prefer Western food. However, we don’t think this will be
happening for any time soon.
Do more marketing and Local Activities:
Since its first opening in 1993, Chipotle has built their brand equity solely on
word-of-mouth about their high quality food. This is a perfect way to do marketing in the
restaurant business. Chipotle corporate brand has gained awareness from customers,
but the product-attributes are still considered higher than brand attributes. However,
Chipotle has evolved to another higher level, where marketing and branding become
more important. Therefore, Chipotle should have advertising programs such as TV ads,
radios, and prints more often to leverage Chipotle brand.
Second, Chipotle gained awareness because of its high involvement in local
activities. Based on the information provided on its website, Chipotle has held a lot of
local activities in 2009 such as sponsoring circuit races, helping fund raiser, and so on.
Recently, Chipotle seems to be less engaged in such activities. This is an important part
of extending customer awareness, so Chipotle should consider being more involved in
local community again.
Find ways to gain more control in the naturally-raised meat and
organic produce.
The biggest obstacle that Chipotle is currently facing is the limited supply for the
high quality ingredients that it needs. If it could solve this problem, it would be a highly
success for Chipotle.

27. Brand Extension
In September 2011, Chipotle opened an
Asian fast-casual concept restaurant named
ShopHouse Southeast Asian Grill in
Washington, D.C. The company has said the
new restaurant "would follow the Chipotle
service format and its focus on 'food with
integrity' in ingredients." Chipotle will start with
only one store, and see how the restaurant
works out. ShopHouse Southeast Asian Kitchen features "cuisine inspired by Thai,
Malaysian and Vietnamese cuisines" served in bowls or as banh mi sandwiches. For
this brand extension, the points-of-parity and points-of-difference are following:
Points of Parity Points of Difference
Same service form as Chipotle Different brand elements (e.g. different
Organic ingredient (food with integrity) brand name, logo, color, etc.)
Same ways to feed animals Different cultures, styles and tastes of
food.