It takes commitment, determination, research, and effective marketing strategies for a company to establish a new market and excel. Chipotle has been one of the most successful Mexican grills for a long time. It operates in America, the United Kingdom, Germany, Canada, and France. The chain specializes in American Mexican food including tacos, burritos, and burrito bowls. The firm was founded in 1993, and it has grown up to 1900 locations. Switzerland is a potential market that can offer Chipotle a good chance to expand since it has a good population, busy citizens, and influential role. Everything the company requires is to establish an effective marketing strategy that will result in an easy entrance into the Switzerland market. The study intends to proof that Chipotle is a competitive firm that has all it takes to get into the Switzerland market and dominate the fast food industry.
The Values of the Company
As Euromonitor International (2015a) report states, the company follows the values that ensure there is a good relationship between it and all the other stakeholders such as the government. For instance, their first priority is to use high-quality raw materials for ingredients which leads to the production of good quality products. It implies that entering the Swiss market will not be a hard task because all customers like high-quality products (Euromonitor International, 2015a). In addition, it will attract many suppliers and create a good relationship with the farmers that is a factor that will give the company competitive advantage in the region.
Classic cooking techniques are the second value of Chipotle. This feature is a benefit on the new market since it will ensure that the company is able to beat competitors in the food industry and attract a large number of new clients through converting them into loyal customers. Moreover, the distinctive interior design will ensure that the employees work in harmony and are able to meet the objectives of the firm. Among the chain’s key values is also respect for animals, farmers and environment. It is important policy that will see the company excel in Switzerland since the citizens of the country appreciate and respect all of the mentioned above aspects. It implies that since the value already exists in the firm, it will not be hard to acquire supporters in the new market.
The Characterization of the Swiss Market
The population of Switzerland is dominated by employees who work in different organizations, government projects, and private businesses which means that most of the people are busy throughout the day, and they cannot manage to cook at their homes. In addition, a high rate of employment ensures that the citizens are able to buy goods and services without difficulties. It presents a good opportunity for the Chipotle since the locals would prefer a company that produces quality food and is able to distribute it without hesitation to the offices during lunch hour and to homes for supper (Siegenthaler, 2012). Thus, a busy working schedule prevents the citizens of Switzerland from going to the established restaurants. Therefore, everything they require is a company that is ready to take that extra step of delivering quality meals to their doorsteps.
To continue, education serves as an eye opener to modern generations. It makes people understand the best things and the impact of many preservatives on their health. A survey showed that over 90% of the state’s population is educated and look for updated information in different sources including the internet, books, journals, and magazines (Shambora, 2010). It has forced many individuals in the country to avoid processed food and capitalize on meals that get cooked from the scratch. It is an important feature since Chipotle distributes dishes that are prepared in such a way. It suggests that it will be easy to establish a new market and enjoy many citizens who are unhappy with the takeover of processed food in Switzerland (Shambora, 2010). In fact, for a long period, the state has actively raised their voices against the high rate of distribution of processed food by local hotels. This serves as a hint that through avoiding such products, the company will be able to excel. Chipotle has been preparing food products that are healthy avoiding those that can harm human health. In addition, they have been supplying fresh foodstuffs from high-quality ingredients acquired directly from the farmers. Obviously, a good relationship with farmers will prove credibility of their products leading to a positive development in the new market.
Furthermore, preliminary research shows that Switzerland is a unique market composed of four main languages zones. The four languages also experience influence from immigrants from other regions of the world who visit or reside in Switzerland for business reasons, employment, or studies. In the past, Chipotle successfully established new marketplaces in French and German speaking societies. It was after a close examination of secondary data in the regions. In Switzerland, most of the cultures are influenced by international communities because of education and a common working place. It implies that with a good study, the firm will understand the priorities of the communities and apply an effective marketing strategy to successfully win clients and make them loyal within a short time. Chipotle is known for hiring competent personnel who are qualified in preparing international dishes. Therefore, it will be able to meet the needs of all the individuals and supply unique quality. The strategies used to achieve an excellent market in Germany and the United Kingdom will offer a foundation in Switzerland considering the country is influenced by the two in different fields (Euromonitor International, 2015b).
Additionally, for many years, Switzerland has been a country that considers health and environmental issues for the wellbeing of its people. It produces bio and organic products rather than capitalizing on non-organic ones. One of the key objectives of Chipotle is producing healthy food that cannot harm their clients. The company always points out its goal of providing organic products and tasty foodstuffs. The policy will enable the business to acquire approval in the new market since it demonstrates its ability to satisfy the locals because it has the same agenda as the one of the other stakeholders (Siegenthaler, 2012).
Moreover, rules, regulations, and policies are the basic foundation that makes an organization successful in a given market. In addition, they can indicate that the organisation is not in a position to invest in the specific area in cases where it does not comply with the legislation of the country. The government of Switzerland has it in white and black that all the companies dealing with food and beverages must maintain high levels of hygiene (Swiss Society for Nutrition SSN & Federal Office of Public Health FOPH, 2011). In addition, all the steps of food and beverage production including preparation, production, processing, packaging, storage, distribution, trading and provision must be conducted in a hygienic way to avoid contamination. The rule also applies to the production and circulation of animal products such as meat, fish, milk, eggs just to mention a few. This means that no foodstuffs containing harmful substances exceeding the permitted toxicological limit can be sold in the country. This rule provides a good opportunity for Chipotle since the chain avoids contamination as a way of protecting the clients and the reputation of the business.
As for the customers, the Swiss market has potential clients both in the urban and the rural areas. Since they cannot go round shopping for ready food, the company offers an online channel that allows customers to order food and have it ready at the pick-up points.
Furthermore, recent statistics has proved that over 78% of the state’s citizens are computer literate with more than 73% of the adults owning a portable device such as a laptop, a smartphone, iPad, or tablet (United Nations, n.d.). It indicates that the social media will serve as an effective marketing tool for Chipotle. Facebook, Twitter, YouTube and Instagram will serve as an effective means of enlightening a high number of citizens about the arrival of a new competent food supplier who has excelled in other countries. It will further attract customers to participate in the creation of commercials, as well as help to understand the interests of clients in the region. The business can also take advantage of technology to become outstanding through coming up with an application where customers can access services using Internet enabled devices. As a result, customers will be able to make orders easily and also comment on general issues such as service provision. The next step, Chipotle should do is go on the TV and present a commercial presenting information on how the company operates, as well as where to find cheap sources of information about the chain such as the Facebook page. The management should ensure that advertisements are shown during popular programs to reach many people. Chipotle should also participate in sponsorship of big events such as Olympics to improve the brand awareness.
Additionally, the expanding of the company in the neighbouring countries such as Germany and France can help in entering the new market in Switzerland. The countries are famous for their environmental policies, protection of the local farmers and efficient waste utilization. The Swiss are also aware of the connection between environment, food, and health. Thus, organic fast food is very popular in the state.
However, in the new market, Chipotle will compete with I Feel B that is an organization found in Geneva offering services in an organic food cafeteria. Tüfi together with Vegelateria are other rivals of the business in Switzerland. Nevertheless, proper marketing strategies and provision of quality services will enable Chipotle to beat the opponents and dominate this market in the country. It must also consider that competitors come from both foreign and local companies. The latter can enjoy more privileges such as taxation benefits that can make competition harder (Shambora, 2010).
In conclusion, Chipotle has the ability to expand its areas of operation to Switzerland. It has the ability to cope with rules, competition, and customer needs. It is evident that Switzerland is a cosmopolitan country that has many languages, cultures, and nations. Therefore, the chain will be able to apply marketing strategies that have been successful in other states to excel in the new market. For the last three years, Chipotle has been experiencing good sales since it has been able to adhere to the rules and regulations of the countries where it operates. Moreover, the positive results are the consequence of the competency of employees, proper communication strategies, and good marketing skills. No doubt, Chipotle is expected to face competition from both foreign and local companies offering the same products in the Swiss market. Therefore, it has to offer better service to beat the rivals. The bestselling meals in the new market are the organic ones. The new market is also characterised by the proper treatment of animals and maintenance of high levels of hygiene. Furthermore, there are different customer profiles based on age, gender, occupation and location that are important to be considered. Finally, Chipotle must put in place effective channels of distribution such as mail orders and internet services and market its products using both mass and social media effectively.
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