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Panera Bread Case Analysis

2071 words - 9 pages

Panera Bread implements a mission to deliver fresh bread products to their customers. According to Panera Bread’s website, their mission statement “A loaf of bread in every arm” does not clearly describe who they are, what they do and why they are here. It does not describe any of the elements to create an effective mission statement.
Their vision of the company is to create a specialty restaurant made with fresh dough with an upscale, quick menu selection without the typical “fast food” feeling experience. They strive to produce better, healthier food selection to a variety of customers.
Their strategic objectives are to become a nationally recognized brand name and to also be the main ...view middle of the document...

They create a loyal customers base by word of mouth advertising and their customers enjoy a comfortable, relaxed eating experience in these restaurants. Panera employs the broad differentiation strategy by offering changes in their menu to cater to their customers needs based on seasonal changes, offering free Wi-Fi to entice customers to stay longer and enjoy their cup of soup, outside catering to business meetings, and serve their products with China silverware.
Pros of their broad differentiation strategy include a large customer base across the United States. They have a strong brand name to allow them to open more stores and franchises nationwide. They are able to produce fresh bread that arrives at the restaurants daily and this increases customer satisfaction and loyalty. In addition, they also offer artisan style bread that is appealing to customers. Cons of their current strategy include lack of employee training, more specifically, the process of the bread making industry. By using the strategy listed above, the prices of their products are slightly higher than their rivals. They do not have to spend a lot of money on advertising as most of it is done by word of mouth. Majority of their advertising is done by word of mouth which could be a disadvantage to them if their employees offer bad customer service or lack knowledge of the products they serve. Panera offers a quality product at premium price. This could affect their cash revenues if the economy or market were to increase their prices of the ingredients needed to produce their food products.
Panera’s broad differentiation strategy is setting them apart from their rivals at a mediocre level. Although their food selection and free Wi-Fi is appealing to customers, this has the potential to be copied as it has been done in Starbucks (Wi-Fi), McDonalds (Wi-Fi and healthier food selection). Panera Bread strives to be the leader in the specialty bread product segment in this industry with their fresh dough selection and upscale menu choices.The markets in this industry and the broader discount retail industry are changing based on customer’s needs and wants (who buys the product and how they use it). The markets change to cater and adjust to customer’s busy lifestyles by offering a wider food selection and developing restaurants around high traffic areas such as shopping centers, schools and downtown areas. Markets are also quick to change based on their customers food preferences such as low calorie, vegetarian or heart-healthy choices. Emerging new internet capabilities and applications are another driving force that allows Panera Bread to become an industry leader. By creating the MyPanera card, they are able to track customers buying preferences and frequency of repeat customers. Their free Wi-Fi is another driving force that sets this restaurant apart from rivals. Technological changes allow Panera to manufacture their own products and ship them to their stores. Market innovation...

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