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Panera Analysis

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Sayani Deb

on 25 June 2013

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Transcript of Panera Analysis

Business Environment
Expansion of competitors
new items, remodeling
Television Campaign - "Make Today Better"
Ron Shaich
spending on marketing and loyalty programs
Urban Areas
Corporate Social Responsibility
Social Media
television advertising
S-T-P Strategy

niche market
Health conscious younger consumers
Sophisticated Upper-Middle Class
socially conscious
behavioral variables
business professionals
health conscious eaters
Calorie Count
Free Wi-Fi
"You Pick Two" special
Socially Conscious Consumers
community outreach programs
Local Community Events
Scrip Fundraising
Breast Cancer Awareness
Day-End Dough-Nation
about 20% people pay more
Behavioral Variables
Marketing Mix
healthy versatile options
local cafe atmosphere
premium pricing strategy
predominately domestic
urban vs. suburban
national spot radio, spot TV, local radio
increase in total ad spending and advertising
Overall Performance
45% sales through

loyalty program

1. improvement in same store sales
3. leader in FAST-CASUAL dining
2. total revenue and gross margin
Marketing Budget

* Advertising expense was higher than competitors.
1. continue to expand both domestically and globally to compete with competitors

2. introduce a more unified national promotional campaign
3. incorporate online/mobile ordering option to increase customer involvement and streamline operations
4. update company mission statement/value proposition
Panera Bread - an Oligopoly
Threat of New Entrants
Competitive Rivalry
Changes coming...
health care benefits
coffee price
corn price
technological advances
medical/health issues
cost of production increases
price of inputs (meats and poultry) increases
EURO crisis - promote coffee products
increase efficiency for both consumers and company with heavy integration of technology
Gluten Free, Allergies
Variety in options as each input is homogeneous in the market (bread, lettuce, protein)
Search for local producers makes the quantity supplied limited
High initial cost
Low profit margins
Very risky due to the number of competitors
High product differentiation
Lower disposable income so overall utility increases per unit consumed
Chipotle Mexican Grill
McDonald's Corporation
Dunkin Donuts
Making food at home
Instant foods
Frozen meals
Meal delivery services
(fast casual)
(fast food)
PORTER's Five Forces
Live consciously. Eat deliciously.
few firms with most of the market share
high barriers to entry
non-price competition and product differentiation
price maker
Full transcript