Media Plan & Budget

Gross Sales from 2010: $1,835,922,000

Total Advertising Budget (4% of gross sales): $74,000,000

Budget Breakdown:
 Spot TV – 50% $37 million
 Spot Radio – 10% $7.4 million
 Outdoor – 5% $3.7 million
 Web- 25% $18.5 million
 Mobile- 10% $7.4 million

Types of Media:
Spot TV
 40% of media budget= about $37 million
 Scheduling Method: Flighting
 Time span: 9 months, April-December
 Geographic Scope: 4 DMAs within the 2 states that have the most Chipotle
locations (over 100)

City State DM # of Cost Points Cost/ Total cost/

A Chipotles per /week week month
in State point
LA CA 2 142 $1,937 300 $581,100 $2,498,730
San CA 6 142 $1,051 300 $315,300 $1,355,790
Francisco
Cleveland OH 18 111 $224 200 $44,800 $192,640
Columbus OH 34 111 $156 200 $31,200 $134,160
1000 $336,800 $4,181,320

Spot Radio (30 sec)

 10% of media budget= $7.4 million
 Scheduling method: Flighting
 Time span: 9 months, April – December
 Geographic Scope: 6 DMAs within 4 states with the most Chipotle locations
(excluding CA due to cost)

City State DMA # of Cost Points Cost per Cost per

Chipotles per per week month
 in State point week
Cleveland OH 18 111 $250 100 25,000 $107,500
Columbus OH 34 111 $200 100 20,000 $86,000
Dallas TX 5 86 $275 100 27,500 $118,250
Houston TX 10 86 $250 100 25,000 $107,500
Denver CO 16 70 $250 100 25,000 $107,500
Chicago IL 3 70 $600 100 60,000 $258,000
600 $182,500 $784,750

Outdoor
 5% of media budget= $3.7 million
 Scheduling method= Continuous
 Time span- 12 months
 Geographic Scope: 8 DMAs within 5 states with most Chipotle locations

City State DMA # of Cost per # of Cost per

Chipotles board/mont boards month
in State h
LA CA 2 142 $3,000 40 $120,000
San CA 6 142 $800 40 $32,000
Francisco
Cleveland OH 18 111 $500 40 $20,000
Columbus OH 34 111 $300 40 $12,000
Dallas TX 5 86 $800 40 $32,000
Houston TX 10 86 $500 40 $20,000
Denver CO 16 70 $500 40 $20,000
Chicago IL 3 70 $1,000 40 $40,000
320 $296,000

Web
 25% of media budget= $18.5 million
 Scheduling method= Continuous
 Time span= 12 months
 Geographic Scope: Nationwide
 Pay-per-click ads: $.01 per click, $9.25 million = 9,250,000,000 clicks over 12
months
o About 770,833,333 clicks per month
o Search engine websites, social networking websites, food websites, other
popular websites
 Banner ads: $9.25 million
o About $3,000 a month (for 100,000 impressions) per website
o For 3,000,000 impressions a month it is $90,000 a month
 o $1,080,000 a year (36 million impressions) per website
o Can advertise on almost 9 websites (324 million impressions a year)
o What sites?
 Search engine websites like Yahoo! and Google
 Social networking websites like Facebook and Twitter
 Food websites like The Food Network and Healthy Dining Finder
 News websites like MSN and CNN
 Other popular websites like Amazon.com and Youtube.com

Mobile
 10% of media budget= $7.4 million
 Scheduling Method: Continuous
 Time span: 12 months with more emphasis on months with special
promotions (May, October- Halloween promo, December- holiday season and
gifts)
 Text messages cost $0.50 per text so we budgeted to send out 14.8 million
promotional text messages throughout the year, about 1 million a month
from Jan-April, June-Sept, and November, and about 1.9 million a month in
May, October, and December.

Rationale for media choices:

In our advertising campaign for Chipotle, we chose to use spot television, spot
radio, outdoor, print, and web. Due to the fact that Chipotle is not located in all states, we
have determined which states have Chipotle locations and how many are in each state,
and we placed emphasis on those with the highest number of Chipotles. We also looked
at the DMA in different markets, and some markets were too expensive to advertise in
like NY.
Through the use of spot television, spot radio, and outdoor, we can concentrate on
the specific markets, which have the most Chipotle locations and the highest DMAs.
For spot television and radio, we chose to advertise between the months of April and
December. During the spring, summer, and beginning of fall, we will have promotions at
the farms where Chipotle products are grown, so we would want to make people aware of
the brand during these time periods, and television is one the most effective media for
that purpose. Also, in the months before summer and in early summer, Chipotle locations
will be holding events about better eating, so television advertisements would also help
this promotion. In the fall, we will focus on our promotion for Halloween where people
will dress as a processed food and can purchase a burrito, bowl, salad, or tacos for $2. We
want to emphasize this through television as well. During the holiday season, we will be
emphasizing our gift card promotion.
Outdoor will be used all year long for awareness and consistency. We do not want
the brand to be forgotten in the months we do not advertise on television or radio. We
will have billboard in the 8 DMAs within the 5 states with the most Chipotle locations,
California, Ohio, Texas, Colorado, and Illinois.
Since we will not be targeting some of the states and areas that have less Chipotle
locations through television, radio or outdoor, we will be targeting those states and all of
the other states with Chipotle locations through banner ads, pay-per-click ads, and
mobile. We feel it would not be an effective use of our TV, radio, and outdoor budgets to
target these areas with a minimal number of Chipotle locations. We also want to make
sure they have no advertising targeted to them, so we are doing so through web and
mobile, which are less expensive.
            We did not use print because it would be an ineffective use of money to advertise
Chipotle nationwide when Chipotle is not located in every city, let alone every state.
Also, we felt newspapers and magazines were not good media for a quick service
restaurant advertisement, although Chipotle is of higher quality than its fast food
competitors.
            We believe our media plan will allow Chipotle to reach their primary target
market while increasing profit through advertisements on these vehicles.

Evaluation
Chipotle will carry out an evaluative research of its advertising campaign prior to its
release, while the campaign is running and once the campaign gets to its end. Chipotle
advertising campaign has been developed to achieve concrete objectives. By evaluating
the campaign, Chipotle wants to prevent strategy mistakes and be able to correct them on
time, increasing the campaign efficiency and making sure it takes the right direction.

Pre-evaluation: Concept and Copy testing

 Testing positioning, image and brand identity. Chipotle will test its
advertising concepts and copy. By testing the concepts and copy on its print
and storyboards, Chipotle’s advertising team wants to prove that the
message sent is understood by Chipotle’s target market and the creates the
image and positioning intended.
 Concept testing: The first evaluation step will be testing the concept; even
before the actual ads are competed to make sure that the direction taken is
appropriate. During this process the slogans and basic product positioning
will be tested as well as the use of celebrities. Concept testing gives the
creative team the opportunity to receive some feedback, before the ads are
completed.
o How: Chipotle will carry out semistuctured questionnaires and
attitude and opinion scales.
 Copy testing: Before the campaign starts running in the media a copy testing
will be conducted in order to predict its effectiveness and likeability. An
evaluative testing will be executed. People will be asked what they like and
dislike and why.
o How: Shows testing. Since a concept testing was previously conduced
the copy testing will use the final print ads and commercials.
Commercials will be run during shows test. Shows as Gossip Girl, Glee,
 The Mentalist or similar upcoming shows will be the perfect scenario
for Chipotle’s copy testing since are watched by our target market.

Concurrent testing
 Image, effectiveness and awareness. While the campaign is running a
traditional media and social media tracking will be executed. Doing so,
Chipotle’s will reassert that its campaign is running correctly and will be able
to know what is the immediate response to it. The concurrent evaluation will
help Chipotle know what its target thinks about the running campaign, and if
something is not working correctly.
o How: Tracking studies: traditional and social media tracking and
product satisfaction surveys in our restaurants. Television, radio and
magazines rates, clicks through rates, YouTube Channel views,
Facebook comments, blogs mentions or related articles. In the
interactive era that we live it is possible to obtain real-time feedback
directly from the target market in addition to the traditional media
measures. Also we will execute a product satisfaction survey to our
consumers that they will fill in our restaurants. Thus, the information
obtained will not be uniquely quantitative but also qualitative.
 Impact on sales: While the campaign is running Chipotle will study its sales
to track the direct impact of the campaign on the product. The consumption
of the burrito bowl will be studied in detail.
o How: Sales statistical study.

Posttesting
Once the campaign come to its end, Chipotle will evaluate its final results in order to
find if the objectives were reached. Posttesting will also help Chipotle and the
advertising agency to analyze and understand what was doing best and what it is to
improve or even avoid in future campaigns.
 Impact on sales: Once the campaign is finished Chipotle will analyze its
impact on sales to and study its profitability.
o How: General sales statistical study and Burrito Bowl sales study
 Attitudes and persuasion- Commercial reaction: The campaign
communication effects will be also tested. It is important to analyze the
favorable buying attitude promoted by the advertising campaign, since it is
the target final response to the campaign.
o How: Sales studies and product satisfaction surveys in our
restaurants (recall test).
 Awareness and Brand recognition: Other communication effect has to do
with the awareness created by the advertising campaign. In the end, this is
the main goal of any advertising campaign, reason why it should be tested.
Also, Chipotle wants to test if the brand has improved recognition towards its
market, and Chipotle’s positioning is now being a qualitative and healthy fast
food restaurant.
o How: Memory test (recognition test) and TOM