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Transcript of Panera Analysis
Expansion of competitors
new items, remodeling
Television Campaign - "Make Today Better"
spending on marketing and loyalty programs
Corporate Social Responsibility
Health conscious younger consumers
Sophisticated Upper-Middle Class
health conscious eaters
"You Pick Two" special
Socially Conscious Consumers
community outreach programs
Local Community Events
Breast Cancer Awareness
about 20% people pay more
healthy versatile options
local cafe atmosphere
premium pricing strategy
urban vs. suburban
national spot radio, spot TV, local radio
increase in total ad spending and advertising
45% sales through
1. improvement in same store sales
3. leader in FAST-CASUAL dining
2. total revenue and gross margin
* 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
health care benefits
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
Making food at home
Meal delivery services
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