After reading the case study in depth, after the release of Chipotle Mexican Grill (CMG) Company’s third quarter 2012 results lean on the positive side, however CMG’s announcement of food cost increase in near future which cause a decrease in same store sales, and some slowdown in the stock market. In my well thought opinion I will review possible solution for CMG to keep their mission of serving good quality food and using sustainable farming practices, while trying to compete in the market with their competitors and controlling their cost of food. I feel that CMG’s commitment is focused around providing customer best ingredients raised with highly importance for animals, the environment and the farmers, which are core of their business. One of the reason CMG food cost is increasing is because Chipotle Mexican Grill is trying to supply better quality ingredients, and food to their customers. Also they are trying to meet their sustainability goals which can be expensive. I believe that major effect of high menu prices is reduction in sales, and profit margin for the company gets slimmer.
As per case mention CMG chief marketing officer Mark Crumpacker first decision he made when was hired was to bring company’s advertising in house and made a decision not to advertise on TV. CMG has claimed their marketing policy is based on people experience the brand and that their main method of promotion is word-of-mouth publicity. In my opinion CMG needs to reevaluate their marketing strategies. Since they are product oriented, which means they are focusing more on quality of food rather than price oriented. They need to reach out to the consumers, and they need to educate their consumers why their prices are higher than their competitors. As a decision maker of CMG Steven Ells mention that their competitor Taco bell may provide cantina bowl for cheaper price but how can