Panera Bread's marketing strategy and competitive expansion plan

Panera Bread: Market and Supply Chain

Marketing plan

Company Overview

Panera Bread is a bakery and cafe company. It specialized in sandwiches, salads, baked goods and fare price. The company is based in St. Louis.

Potential Customers:

Panera Bread Co. big market segment in the hotel industry is approximated to growing faster than expected. It focuses on the middle class market and white collar class in the United States.

Market Share

Over the past two years, Panera Bread Company has grown bigger to establish about 1,540 bakery cafes in the U.S. And it looks forward to start more, in a total number of 115 to 120 new units this year. This many experts say because of its determination in its advertisement which has cost millions of dollars.

However, the number of customers it serves currently still remains roughly flat over last year. But increase demand is expected to take shape after its first TV advertisement in the history of its operations.

It sales is also expected to skyrocket from its own restaurant which was started in 2011. The sales expected to increase from 7% to 7.5% in the current quarter, as better weather, the media spending higher price help it to continue to outperform the industry.

Promotion and advertising

Penera Bread Company is to spend millions of dollars in reach the market and to improve it sales and profitable. These will be through advertising using electronic media for the first time in its history. It will be the first national cable television advertisement at St. Louis-based company.

Media

It plan to spend $60 million in media investment this year compare to roughly $55 they spend previous year. That would mean that the firm investment in media will increase by 26% this year. but, this will only take 1.5% of its annual sales, compared with larger restaurant chains that often spend 3% to 6% of their sales on media. The media advertisement will basically focus on electronic such TV advertisement. This would be affective with the crowded airwaves due to presidential elections going on in the country.

Social media network

With plan to reach a wider market, Panera Bread Company plans to use social media network to advertise itself and its services. Therefore facebook, twitter and online advertisement would be used.

Supply Chain

Panera Bread Company is currently having 1,540 bakeries -- cafes across the United States and it expected to establish between 115 to 120 new units this year. This will give it approximately 1,660 units across the county