Panera Bread Essay

1191 words - 5 pages


Panera Bread Case Analysis
LaToya Melvin
Davenport University
BUSN 520

Table of Contents
Synopsis of the Situation 4
Key Issues 4
Define the Problem & the Opportunity 6
Alternative Solutions 6
Selected Solution 7
Implementation/Recommendations 7

This case study focuses on the market analysis for the Panera Bread Company. The case will examine five components; the ...view middle of the document...

For example Panera Bread trains their associates to greet their customers by name and have the skills, expertise and personalities to make each visit a delight (Panera Bread Company). Also Panera Bread provides a distinctive environment where customers feel like their home away from home.
Panera Bread specializes in providing fresh goods, made-to-order sandwiches, salads, soups, custom roasted coffees and other cafe beverages. They are unique in many ways which give them a competitive advantage. Their advantage consists of the triple combination of product, environment and great service.
Key Issues
Increasing cost of raw materials and cost of production like wheat prices, fresh dough prices, labor costs, rent, and other input costs may force Panera to increase the cost of its product (Panera Bread Company). Therefore, it is one of the key challenges to the Panera Bread to manage the price that is affordable to its customers, competitive in the market and still earn profit to sustain in the market (Panera Bread Case Study and Key Success Factors, 2011).
Another issue for the company is competition; the restaurant industry is highly competitive with respect to location, customer service, price, and quality of products and overall customer experience (Panera Bread Company). Panera Bread competes with numerous food businesses. For instance they compete with specialty food, casual dining and quick service restaurant retailers, including national, regional and locally-owned cafes (Panera Bread Company). The company has to be aware of their competitive rivals who attempt to copy and employ some of the same standards and who may one day offer the same products and services.
In addition they compete in several segments of the restaurant business: breakfast, lunch, dinner, take home, and catering. Therefore many of the company competitors have substantially greater financial and other resources than Panera Bread, which may allow them to react to changes in pricing, marketing and the restaurant industry better than Panera Bread Company (Panera Bread Company).
Furthermore, another problem is trying to convince customers that food made with higher-quality ingredients is worth the prices verse the lower prices offered by some of Panera competitors, particularly those in the quick-service segment (Panera Bread Company). Panera Bread failure to successfully educate customers about the quality of their food or the customers’ rejection of the company pricing approach could require Panera Bread to change their pricing, marketing, or promotional strategies (Panera Bread Company). Which could adversely affect the company consolidated financial results or the brand identity that they have tried to create (Panera Bread Company).

Problem & the Opportunity
Panera Bread Company is operating in an increasingly saturated domestic market which makes their problem a mix of elements; marketing and pricing. When it comes to...

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