As mentioned in the case study, Panera Bread Company is known to be one of the leading bakery/café that offers freshly baked pastries and French inspired entrées across various states in the US. However in the recent years, Panera Bread faced a decrease in their usual high growth rate from 9.1% and 12.0% in the year 2000 to merely 0.2% and 0.5% of comparable sales and annualized unit volumes respectively.
The company likewise has already employed various strategies in order to maintain the high growth rate of the company. However these strategies is soon to reach its capacity to ensure growth. Based on the case as well, what seems to be lacking in the strategies that the company employed before is marketing, control of costs, and securing costumer loyalty.
The marketing strategy of the Panera Bread Company relies heavily on the experience of each customer that eats in the café. The Company focuses their efforts in providing a milieu of elements that would appeal to the different senses of a customer. Their cafés were design so that each costumer can immerse himself or herself in an unforgettable experience and in doing so, they may endorse it to other people through word of mouth. Aside from this, the company recognizes the importance of sponsoring charity events in creating an image for them. By being visible in these events, the company has utilized not only in the quality of food and service they serve but also their sense of social responsibility, leading to more patronage and customer loyalty.
However, as any other marketing strategy, these become ineffective as time pass by. Because of this, there is a need to explore new strategies that the company hasn’t tapped yet. One of which is getting an ambassador/ endorser of the restaurant as well as tapping the tri-media already. Panera Bread can still utilize the concept of marketing by word of mouth but in a more directed manner—that is to be able to get key people influential enough to talk about the Panera Bread Bakery and café experience and to talk about it where many people can hear (e.g. TV, Radio, Print, and even internet advertisement). The purpose of getting endorsers is to make the Panera Bread café experience relatable to a lot of people. This likewise opens the opportunity to broaden the market of people that the company caters to.
The role of tri-media involves tapping a broader market. Television, radio, print and the Internet functions as gateway into a bigger and varied audience. As such by utilizing these platforms, Panera Bread can widen the scope of its market, thus increasing sales.
Controlling of Cost
Panera Bread Bakery and Café boast of its quality of food and market it as freshly baked breads prepared everyday. But with this kind of strategy involves a lot of spoilage, contributing to the high cost that the company is incurring. In the statement provided in the case, despite the increasing operating profit since 2001, the profit margin remains to be...