Pricing has a great influence on the sales of the products and services. A wise decision towards the pricing strategy selection can ensure the success of the business in the targeted market. However, targeted market and segmentation both are important to study before taking pricing decision. In accordance with the analysis of the targeted market (Philippines) for the Chipotle Mexican Grill, the pricing strategy can be set as a price skimming strategy or the market leader pricing strategy.

      The targeted market of the Chipotle Mexican Grill is not very strong economically. While the competition in the market is really high. In such a condition, it is difficult for the restaurant to set high prices. Therefore the restaurant will offer low price products and services in the beginning (during the initial/ introduction stage of the restaurant) in order to grab the attention of the customers. While after building customer equity and positioning the brand image in the market they can increase the prices of their products and services (Baker & Hart, 2016).

      Meanwhile, Chipotle Mexican Grill will follow the market leader pricing strategy as low price product but with the high level of quality (for customer satisfaction) can become market leader easily because the customer wants low prices and high level of satisfaction. While setting low price strategy management of the Chipotle Mexican Grill have to pay attention to the cost and profit margin also. Average prices set for the products are between the ranges of $3 to $ 10. The prices are set after the calculations of the all possible cost and expenses incurred in manufacturing and promotion of the products. 

References of Pricing of Chipotle Mexican Grill