Panera Bread
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 and organizations, such as Panera Bread, have picked up on the trend and have brought the trend to the mainstream franchise market. This industry is most likely still in the growth phase as more and more consumers become familiar with the business model.
Market Segmentation
Panera bakes their own breads each morning and offers a variety of fresh salads, soups, and sandwiches. The quality of foods is higher than many of its competitors however the prices that Panera's offers are also substantially higher than traditional fast food establishments. Therefore Panera will typically draw a more professional crowd with higher disposable incomes. Furthermore, Panera's will likely appeal to the health conscious consumers over alternative establishments such as McDonalds because the quality of their foods is much higher and healthier. Thus Panera's will likely appeal to people that has a healthier lifestyle.
Figure 2 - Panera's Spinach Salad (Panera Bread, N.d.)
There are also many geographical considerations. For example, Panera's generally positions their locations in a place that has substantial foot traffic as well as local neighborhoods. The radius of traffic is most likely in the ten mile range. Panera's also offers a take-out service and many local businesses will drive to pick up lunches and catered trays for breakfast and lunch. Therefore, local businesses also represent a key target market for Panera.
Works Cited
Gorchel, L. (2010). The Product Manager's Handbook.
Panera Bread. (N.d.). Power Up. Retrieved from http://www.panerabread.com/?ref=pbhomeleft
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
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
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
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,
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
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 PNRA. Its stores are mostly located in suburban areas. Main competitors of
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