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Product Life Cycle
There are various phases generally attributed to any product's lifecycle (Gorchel, 2010). There four phases of the product lifecycle are introduction, growth, maturity, and decline. These phases are necessary to understand in order to manage a product life from its beginning to end. This model could be best applied to the industry niche that Panera operates in rather than anyone of their products. Panera's niche is something of a hybrid between different restaurant service models.
Traditionally, the restaurant industry has consisted of two main sectors: full-service restaurants and fast-food restaurants. The fast-food sector typically serves foods such as hamburgers, chicken, sandwiches, pizza, Mexican dishes, and breakfast and snack items which can often be purchased through a drive through window. However a new niche is developing that offers food quickly in a sit down style environment. This industry niche is often referred to as fast casual…… [Read More]
Panera Bread Company-Growth in a Difficult Economy
Panera Bread Company - Growth in a Difficult Economy
What is Panera Bread's strategy? Which of the five generic competitive strategies & #8230; What type of competitive advantage is Panera Bread trying to achieve?
Panera Bread's business strategy was to make the bread company a brand recognized nationally and to be a dominant restaurant in the specialty bakery-cafe segment. This was to be achieved by using a business model that aimed to satisfy customers' needs by providing quality food in a casual setting. Panera was able to get stable profits that enabled it to give this value to customers through food sales and collection of the franchising fees. Furthermore, the management at the Panera Bread Company intended to expand the business locations by 17% on an annual basis. This was to be done through an expansion strategy that targeted an expansion of one…… [Read More]
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.
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%…… [Read More]
The franchisee program should continue to draw new potential owners due to the growth and strength of the Panera brand.
Geographic growth opportunities are also strong. The company has many unsaturated markets. If the company can achieve St. Louis-level saturation (1 store per 67,000 people) in all major markets, there is room for strong domestic growth for many years to come. The firm will need to begin expanding into the remaining major markets, however, in order to solidify its national presence. The New York City area, the southwest, the Pacific Northwest, much of Texas, South Florida and Canada all represent large underserved territories. Panera should begin to establish a presence in most of these markets, the possible exception being Canada due to the added difficulty of operating internationally.
Another issue going forward for Panera Bread is with regards to smoothing out its sales over the course of the day. The…… [Read More]
3. Panera is doing well financially. Its revenues and profits have been growing steadily for the past five years. The gross margin is 61.4% and its net margin is 7.46%. Panera is liquid, with a current ratio of 1.59 and a debt to equity ratio of 0.52. Inventory turns over 13 times per year. The ROA is 14.9%, the ROE 22.93% and the ROC 19.3% (MSN Moneycentral, 2012). In general, these figures are positive and moving in the right direction. There are no red flags in the Panera Bread financial statements that would indicate that the company is not performing well.
4. The chains that are the closest rivals to Panera are Subway, which is much larger and smaller sandwich companies like Quizno's and Boston Market. In terms of immediate market share, the closest rivals are lower-end companies like Chick Fil a and Arby's. Panera Bread also must compete against…… [Read More]
Panera Bread Company Marketing Strategy
Panera Company is a chain of bakeries that are based in the U.S. And spans all the way to Canada. It produces a series of baked foods, mainly bread, and cakes. Its customer base is local and international. Currently, the company is the leading bakery in the market. It has cut out a special niche for itself in the market through a series of marketing strategies that ranges from online marketing to direct marketing. In this paper, the marketing strategies employed by this company are analyzed with the view of concluding on how the strategies have helped it obtain a competitive strategy over the rest of the competitors in the market.
Direct marketing is that form of marketing in which the company avails its goods and wares directly and physically to where the clients can be found. Reasonably, the company gives the consumers…… [Read More]
Panera Bread Company operates in the restaurant industry. The company is operating in the retail bakery-cafe segment of the restaurant industry in the service sector. The company can be considered as a "fast casual restaurant" because it is a mixture of the fast food and causal dinning (Tillotson, 2003). The company is a listed company in NASDAQ as PNA. Its stores are mostly located in suburban areas. Main competitors of the company are McDonald's and Wendy's. As on the 2010, Panera had 1380 bakery-cafes and it is operating in the 38 states and it is also planning to expand its business in Canada.
Panera Bread Company started its operations in 1981 and initially it was named as Au Bon Pain Company operating on the east cost. After that company purchased St. Louis Bread Company and changed the name of the company to Panera Bread.
Panera Bread Company is one of…… [Read More]
In its 2015 Form 10-K, Panera Bread describes itself as “one of the largest food service companies in the United States” and that its success is attributable to “our ability to create long-term concept differentiation.”
The company defines its strategy as differentiation, and this aligns with the generic strategy as defined by Porter. The differentiation strategy cites differentiation as a source of competitive advantage and the market scope as broad (MindTools, 2019).
In this, Panera bread is trying to achieve competitive advantage through concept differentiation. It cannot sustain competitive advantage based on things like the food it serves (fairly standard mainstream white people fare) or free wifi, but it believes that total package concept that it offers is sufficiently unique to win business in the long run. There are individual competitors, but few major competitors that do exactly what Panera Bread does. If Panera is competing against mainly…… [Read More]
Panera Bread Company
Ron Shaich and Louis Kane started Panera Bread in 1981 as Au Bon Pain Company. The company prospered internationally throughout 1980s and 1990s along the east coast of U.S.. It became the dominant and best operator within the bakery-cafe category. The company purchased St. Louis Bread Company, which was a chain twenty bakery-cafes in St. Louis area. After the purchase, St. Louis Company was re-staged and managed comprehensively. However, between 1993 and 1997, the average unit volume of St. Louis increased by 75%. After the changes and improvement in production, the name of the company was changed to Panera Bread. As of 1997, the quality of products, services, and improvement in production indicated that Panera Bread had the potential to be among the leading brands in the country. The company needed all the management and financial resources for it to be potential in the field.
In 1999,…… [Read More]
These categories, along with analytical information, are as follows, in no particular order:
MAKET SHAE- Competitive pressures and the tendency of consumers to be exceedingly fickle pose threats to Panera Bread's maintenance of current market share and the gaining of market share in the future. Therefore, strategy must be undertaken that will hold and grow market share as the company moves forward.
INNOVATION- it is important to understand that the dietary desires of consumers have changed a great deal in recent years, and will surely do so even more in the coming years. Because of this, every effort must be made for strategy to be developed that will lead to new market positioning, product offerings, and so forth, measured against an accurate evaluation of the consumer's perception of value delivered and how that will likely change in the future.
QUALITY Management- Beyond the perceived value of Panera's offerings, strategy must…… [Read More]
2007). By identifying the demand for quickly available meals that were both more diverse and healthier than those offered by established fast food chains, the owners of the baking company that would be Panera showed early on their ability to innovate with the times, and in moving from simply baking to providing finished food products to consumers the company has been able to achieve an astounding amount of growth and profit generation (Hitt et al. 2007). In the period from 2007 to 2009, which essentially covers the deepest part (if not the entirety) of the global recession, Panera grew from eight hundred locations to almost thirteen hundred locations based on its continued ability to innovate and adjust to its market as this market changes (Hitt et al. 2007; McKee 2009). Panera's innovations and its logistics and supply chain management are also a huge part of Panera's success, and in fact…… [Read More]
Discuss the General Environment
In beginning to view the external environment facing Panera, one must look at the opportunities and threats that are present in the field. Within the industry, Panera is at the top of its gain, bringing in considerable profits, focusing on new technology and sustainability, and continuously expanding its presence throughout North America. Additionally, its societal focus on healthy living and environmentally friendly practices through the preparation of clean, healthy, and sustainable products continues to place Panera on the map in terms on new opportunities such as expansion, limited competition in the field of healthy products, and room to expand.
Panera boasts a host of opportunities, as mentioned, based primarily on its service of 130 million customers daily (2010 Annual eport, 2012, pp.6). In this capacity, Panera has the ability to expand its potential market base considerably should it market…… [Read More]
. Panera Bread needs to move away from word-of-mouth advertising and
embrace more effective means of advertising and awareness building
strategies. Panera has relied largely on word-of-mouth communication
of positive customer experiences to build awareness of the concept.
Advertising spending (as a percent of bakery-caf? sales) has been
relatively modest, including 2.2% in 2003, 2.1% in 2004, and 2.1% in
2005. Marketing efforts have been mostly focused on the use of in-
store promotional signage (e.g., point-of-purchase materials, hanging
signs) and limited-time offers. A 2005 consumer survey conducted by
Panera Bread highlighted opportunity for Panera to use more
advertising to build awareness. Study results indicated Panera's brand
awareness is only moderately developed. Interestingly, findings
revealed that 85% of people made aware of the brand ultimately became
a customer, suggesting a strong link between awareness and trial.
Based on the study, management appears to have increased emphasis on
using marketing as…… [Read More]
High levels of selling, general and administrative expenses - Despite the meteoric revenue growth as is shown in Appendix A, there continues to be the weakness of having high levels of SG&A expenses. For example, the company has at times experienced over 19% growth in these expenses, as was the case between 2000 and 2003.
A lack of variety and reason to eat other meals besides breakfast at Panera Bread outlets - This is a major weakness and one the company is looking for resolve, as internally there are discussions today of moving into thin-crust pizzas based on their bread expertise, and also opening up a larger dinner menu.
Concentration in specific markets to the exclusion of others - Today Panera Bread is concentrated in several larger cities, and needs to break out into other smaller metro areas and look to diffuse economic risk by being in as many…… [Read More]
handed to ten coffee dinkes visiting Panea Bead on a Satuday moning to analyze the habits of this paticula population.
Please ate the quality of Panea Bead coffee in the scale of 10 (whee 1 is unacceptable low quality and 10 is pleasantly high quality)
Please ate the hygiene of the Panea Bead in the scale of 10 (1 stands fo extemely dity and 10 is high standads of hygiene.
Please ate the Panea cews appoach to the customes in the scale of 10 (1 is extemely unfiendly and 10 is pleasantly fiendly)
Please compae the impotance of following items to be pesented at the Coffee stand in the ank of 10 (whee 10 is vey impotant to have and 1 is not impotant).
Half and Half Milk
Low Cal Suga
What should be pesented at the…… [Read More]
U.S. based company concerned earthquake, tsunami nuclear power plant accident occurs Japan? 2. With rapid technology, boundaries industries redefined. What industry company Google ? Who Google's main competitors today competition ? 1 page 1 Reference Case 9: Panera read Company 2012 - Pursuing Growth a Weak Economy, Arthur A. Sources
First of all, all companies today operate in a global business environment, where local influences are often felt and have repercussions worldwide. In this specific case, there are several reasons why the American company should be concerned with such an event. It has a significant impact on the Japanese market, lowering the purchasing power of existing and potential customers.
At the same time, there are potential negative effects on the political and economic system in Japan. The government will need to invest in the saving operations, which will likely impact the budget and lower the chances that Japan can offer…… [Read More]
Marketing Mix for Panera Bread Company
Advertising refers to any form of non-personal communication meant to persuade, inform, and remind customers to buy a product (Shapiro, 1984). Panera Bread Company has adopted the informative approach as a way of winning and retaining customers. In this strategy, the aim is to let the clients get to know the features of the products being offered. These features include the price, quantities sold, the quality as well as how the products are consumed. Some information to the effect of the ingredients used to bake the breads as well as how the bread needs to be consumed (Peter and Donnelly 2013).
The informative objective also involves teaching the clients about the hazards of overconsumption of the product. Panera Bread Company has warned the clients of over consumption of bread -being a processed food in its adverts. The action seeks to comply with the…… [Read More]
Company Economic Forecast: Panera Bread
Explain the business you are in. Explain your business and the different industries that would impact your operation.
One new eatery that is still in the process of expanding nation-wide as a franchise of note is that of Panera Bread. As an emerging business, it is an excellent business investment prospect, far from 'bottoming out' as older, more established coffee cup centered franchises such as Starbucks. Unlike Starbucks, Panera is also known for the quality of its sandwiches and pastries as well as for its coffees and other hot beverages. It is especially popular as a lunch and breakfast establishment for eating in or carrying out, rather than for after hours lingering. Its main clientele is often slightly older than Starbucks, that of office workers -- hence its proclamation, upon its website that one ought to impress the boss with an order from Panera. (Official…… [Read More]
It is recommended that Starbucks acquires Caribou Coffee (CBOU). Caribou is a direct competitor to Starbucks, which is the appeal. Caribou's existing locations can be either closed out or converted to Starbucks locations. Caribou is a strong regional brand with 541 coffeehouses (MSN Moneycentral, 2012). The company has a very similar business model to Starbucks, but with less size and arguably less business sophistication. Caribou is, nonetheless, a successful company that is now turning a profit ($35.22 million in FY2011) after many years of losses.
Caribou stock is currently trading at $16.93 per share, giving the company a market capitalization of $352.96 million. The offer for Caribou will need to be higher. An acquisition premium of 10% is reasonable (McClure, 2012), however, because there is only limited opportunity for synergies to add value to Caribou, and because Caribou stock is already trading near its all-time high. A 10% premium…… [Read More]
The health of the business is also seen in how many franchisees and company-owned stores are being built and launched throughout the area of the city this one is located at. There are several within twenty miles of each other. The general manager says that when there is a high concentration of commuters, those between the pages of 35 -- 55 making higher than the area per capita income, that growth often occurs as a result. This is the primary target market for Panera Bread. As these demographics continue to grow in certain areas, Panera is able to move into these communities and quickly create stores and capitalize on the unique needs they fulfill with their beverage and QSR food items.
Competing in a Global Marketplace
The general manager says Panera is only operating in the U.S. At the present time yet has plans to expand into foreign countries including…… [Read More]
Eat at My estaurant
The author of this report has been asked to answer two general sets of questions. One pertains to the mechanics of net income versus operating income and other economic factors for a business and much of the rest pertains to the financial data for three different firms. Items that will be discussed will include cash flow ratios, net income, operating income, debt to income ratios and so forth. As noted above, some answers will be general in nature while others will be quite specific. One thing that will be identified as part of this work is which of the three firms might be on thin ice given the financial statistics that are presented in relation to that firm.
First off, the difference between operating income and net income is that the former is revenues minus the cost of getting that work completed, or cost of goods…… [Read More]
The author of this report has been asked to answer a specific and thoughtful answer to a question about the greatest happiness principle and what it really means. Indeed, the question is how the principle is supposed to be useful and informative when it comes to guiding someone on what to do, what not to do and why. As the author expected, there is a strong correlation between this question and the general concept of utilitarianism. hile the linkage and comparison of the greatest happiness principle and utilitarianism may make it easy to some to offer some explanations and insights, it just complicates things for others in some ways and the author of this response is certainly among that echelon.
Before getting into semantics and how the principle can or should be perceived, the author of this report will quote the man who came up with the principle…… [Read More]
This approach to growing a retail business is extremely difficult to attain, as it requires the in-store experiences to support the brand and create value over time. In addition, the more mature of food retailing brand becomes the higher and more predetermined the expectations. For CPK the expectations of fast, friendly and professional service are very strong, as is the quality of the food itself. The need for creating a consistent experience is critical for their long-term growth as a result (Dasu, Chase, 2010).
For the company to continue to open up new markets, it must also concentrate on adjacent meal segments including brunch and lunch, a strategy their primary competitor in this segment, Panera Bread has done exceptionally well. Panera has been able to successfully redefine the brunch meal through their use of bundled soup and salad specials on weekends for example. What CPK also needs to concentrate on…… [Read More]
global branding of Stella Artois
Porter's 5-forces analysis of the beer industry
Bargaining power of buyers
The bargaining power of buyers is very high in the beer industry. Consumers have many choices, spanning from other alcoholic beverages to other brands of beer, including smaller labels as well as the major brands. Also, beer is not strictly a necessity. Consumers can conceivably 'do without' if the price is too high.
Bargaining power of suppliers
The bargaining power of suppliers is also very high in the beer industry. Beer companies are critically dependent upon obtaining specific input goods to create their brews. They need a high volume of input goods to produce their product, and they need a timely and steady supply. Good relationships with bottlers and distributors are also required to take the product to market.
Competitive rivalry is extremely high. All of the major beer brands are fighting…… [Read More]
Many companies in this industry are no longer trying to expand the number of restaurant, but rather focus on other growth strategies, such as international expansion or product innovation. The last strategy is very suitable for the home market. The eating habit trends point to a change in the average American towards a healthier lifestyle. Yum! has a weakness point in this area as its products are not perceived as healthy. McDonalds has developed a number of products for the customers interested in a healthier died, such as salads. Other competitors, such as Wendy managed to prepare the same products with less 10 grams of fat in it. The healthy lifestyle trend opened the way to more competitors which sell quick-service healthy products, such as: Panera Bread, Subway and Quizno's.
The consumer habits change from one generation to another. The trend in the last generations is not only towards healthier…… [Read More]
McDonald's New Challenges
A look at how socio-culture trends such as obesity will require that McDonald's breaks from standardization on a grand scale
(Fitness Mantra, 2007)
Influence of Culture and Demographics
McDonald's is the multi-national company (MNC) that has worked to break through internal barriers on a global scale. McDonald's has been at the forefront in new market expansion and the organization has now covered nearly every market on the globe (Lafontaine & Leibsohn, 2004). Despite the global coverage of operations, McDonald's has excelled in keeping its menu virtually the same. Although some room is given in terms of flexibility to incorporate items from the local culture, a Big Mac made in the U.S. tastes much like one prepared in China. This strategy has offered McDonald's a great deal of standardization through quantities of scale in different markets composed of many varieties of demographic and cultural…… [Read More]
PESTLE analysis: Fast food industry
The recent backlash against unhealthy eating could prove to be difficult for the fast food industry. There are calls to limit the marketing of fast food products to children and to limit the sale of fast foods in schools. Given that children are such an important driver of sales, this could curtail the efficacy of many fast food campaigns, particular those with tie-ins to children's films and television shows. Campaigns like Michelle Obama's "Let's Move" campaign underline the importance of healthy eating and eating minimally processed foods. Although President Obama and the First Lady have been photographed eating burgers and they say that they are not against all fast food, the overall emphasis on the administration has been on restricting access to 'junk food' (Michelle Obama loves fast food, 2010, Slashfood).
The economic uncertainty in America has proved to be…… [Read More]
A fourth foundational element is the strength of the Starbucks brand itself and is ubiquity globally. As a result of rapid and well-defined strategies for opening up retail stores, Starbucks is now considered one of the most preeminent and strongest brands globally.
Starbucks has generated the strength of their brand through combining high-quality coffee and tea beverages with the third-place concept to generate customer loyalty and world-of-mouth among customers and their friends. It is common to hear students mention they will have a team meeting at the local Starbucks, for studying or completing projects.
In summary the Starbucks model is strengthened by the company's coffee expertise, impressive new product development record, and the development of Starbucks locations as "third places" where friends can meet and enjoy coffee and pastries. Underscoring all these points is the strength of the Starbucks brand.
What were the key issues and the decision by Starbucks…… [Read More]
Instead, they will spend less on dish detergent and diapers at Wal-Mart, to compensate in their household budget. Perhaps watching Martha Stewart convinced the consumer of the value of such unique additions to the home. They may also buy Martha's towels in loyalty to her image of fine living at K-Mart. Now, even K-Mart proudly boasts Martha's up-scale products, as it too trades up in with the aim to dominate a wider and more affluent market segment.
The title of the book refers to the fact that middle-class households are spending differently and target themselves as part of a wider array of market segments when creating a budget. Households cut back on some purchases to trade up, or to buy more status-conscious goods in other market sectors. Thus, traditional market segmentation of a uniformly 'middle class' consumer uninterested in high-quality goods no longer holds / Consumers can be persuaded that…… [Read More]
This strategy was combined with the company's focus on CAFE-based compliance and support for Fair Trade-based trading practices with coffee suppliers. This renewed focus on managing their supply chains to tighter levels of profitability and performance metrics including increasing quality standards has led to a significant reduction in operating expenses and control of variable costs (Starbucks Investor elations, 2011). Starbucks was also able to manage costs of closing locations effectively, and when this strategy was combined with supply chain cost savings, greater focus on in-store profitability and faster new product introductions, Starbucks was able to reverse a negative trend on gross margins and profitability. Beginning in FY 2010 and continuing through the current fiscal period, Starbucks continues to see their gross margins and operating profits including Net Margin, Gross Margin and EBITDA Margin. Figure 1, 5-Year Trend Margin Analysis Shows Impact of Strategic Marketing shows the aggregate impact of these…… [Read More]
Entrepreneurship: Growth Plan eport
Geetha Jayarman and her business venture thus far have had a unique and interesting value proposition in which she has created for her consumers. She has created many food items that are distributed and sold through various distribution channels that all incorporate many of the new trends that are developing within the healthy eating phenomenon that is sweeping the entire U.S. to a greater or lesser extent. Strategic management can be defined as the process of formulation and implementation of the company objectives and goals which are made keeping in mind the resources available with the company and the internal and external environment that the company is functioning in (David, 2005). Thereby strategy can be defined as the course of action that a company develops with the optimum use of resources with the aim of achieving its long-term goals. The three businesses that Jayarman…… [Read More]
The Feasibility of New Businesses in the Fast Casual Healthy Restaurant Niche
Business Idea Overview
The business idea that is being reviewed is a family owned business that is not a franchised operation. The research will focus on the likelihood that a small start-up that is locally owned and operated restaurant can still make it on their own in competitive market. Many of the local businesses that do well in the market are often affiliated with some national franchise that offer advantages such as training, advertising, and some administrative support services among others. However, there are still many people who wish that they could start a business because the simply love to cook and would like to make a career out of it. It is often the case that people like this underestimate the difficulty in starting their own business and the failure rate for small businesses remains…… [Read More]