Panera Bread Product Life Cycle There are various phases generally attributed to any product's lifecycle (Gorchel, 2010)
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)
RECOMMENDATIONS OF INVESTORS: Investors think Panera Bread Company is having good growth potential and it further improve in terms of sales. But on the other hand there are risks while investing in the company because company is giving lower return than the market (Madanoglu, Lee, and Kwansa, 2008)
This sort of forward thinking has typified Panera Bread over the years; another excellent example is the modification of their menu offerings to meet an emerging consumer trend. In the early 2000s, the proliferation of low-carb diets and an increased focus on healthy eating led Panera Bread to offer a complete line of low-carb breads and other baked goods, once again showing how the organization is willing to evolve, along with its customers, to build brand loyalty, a key strategic move for highly competitive situations (Dewar, 2002)
Industry/Company Overview To understand the business model for Panera Bread, one must first understand the restaurant industry overall, as well as the specific segment of that industry in which Panera competes, known as the fast-casual market. Worldwide, there are approximately 8 million restaurants, run by about 300,000 restaurant companies, traditionally consisting of the full service segment, which comprises the "conventional" restaurants such as family-style, buffet, and dinner houses, and the fast food segment, which typically serves sandwiches, hamburgers and the like in the McDonald's type of a format (Gilliard & Khandekar, 2004)
The ADA owners are also given extensive training in the proper operation of a Panera Bread restaurant, assuring uniform quality and menu offerings for customers, no matter where they visit a Panera Bread location. This type of a franchise model so to speak, first popularized by McDonalds' in the 1950s, is still proven to be highly effective, and is definitively a key catalyst in Panera Bread's viability and possibilities for the future (Gubman & Russell, 2006)
Worldwide, there are approximately 8 million restaurants, run by about 300,000 restaurant companies, traditionally consisting of the full service segment, which comprises the "conventional" restaurants such as family-style, buffet, and dinner houses, and the fast food segment, which typically serves sandwiches, hamburgers and the like in the McDonald's type of a format (Gilliard & Khandekar, 2004). Because of the maturity and intense competition in the fast food segment, and the fact that full service restaurants are likewise in a state of saturation (Korn, 2001), there emerged a large segment of the population whose desire to spend money at restaurants was going unanswered, due to the fact that these consumers were tired of fast food offerings, and did not always have the time/money to visit full service restaurants
Not only is Panera's menu different, the restaurant setting itself is different than other fast-casual restaurants. Unlike PF Chang's or Krispy Kreme, for example, Panera Bread restaurants feature a decor that resembles a French cafe, complete with a roaring fireplace and china dishes upon which the food is served (Sharos, 2006)
Specifically, the following problems/issues need to be addressed: Ensuring that the Panera concept remains unique- the originality of Panera Bread came as a refreshing change for the conventional restaurant customer when the company first emerged in the fast-casual industry some years ago; however, the challenge now is the maintenance of the Panera concept as something unique and, no pun intended, fresh. One of the main attractions of customers to Panera in the first place was the fact that while restaurant customers were showing no obvious desire to stop patronizing restaurants in the early 2000s, fewer people were in fact dining out because of a lack of satisfaction with the available alternatives (Warde, 2000)
More than 81% of its clients showing their willingness to try out the multiple meal times at Panera. Its growth strategy is also strong and attainable as indicated in its expansion strategy (Hitt, Ireland & Loskisson, 2007)
This could enable it to take advantage of the industry life cycle that is still in the growing phase. Another strategic issue that Panera needs to address is to vary its existing promotion strategy especially in the untapped markets (Schermerhorn, 2011)
A vibrant promotional strategy should focus in bringing new customers into the Panera cafes by letting them understand why Panera stands out from other restaurants. Since the customers are willing to try out new joints, Panera should embrace the promotional strategy especially when opening new joins across various locations (Spinelli & Rosenberg, 2004)
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 cafe per 160,000 people by 2010 (Thompson, 2012)
The extensive marketing gives Panera strong brand recognition and brand equity, resulting in a competitive advantage over small chain and independent competitors. The other major internal competency is the ability of the firm to deliver a consistent customer experience with respect to both food and atmosphere (Rockwood, 2009)
The stringent requirements allow Panera stores to be managed only by those with the financing and experience to run such stores successfully. Franchises are sold to owners who can deliver upwards of 15 stores in a geographic area, rather than to single unit owners (Schaefer, 2009)
In the case of Panera Company, the company has been conducting trade fairs in the public domain to enable the members of the public to come and witness the products that they have. During these fairs, the company has their staff taking the interested potential buyers through the process, showing them the prices as well as answering all the questions that they might be having (Adcock, 2014)
In the latter, the consumers send orders and their budgets to the Business, which then reviews them and approves any valid transaction possible (Sheehan, 2010). Competitive strategies Competitive strategies are those actions that a company employ in order to stay better than the rest of the competitors in the market (Mahnken, 2012)
Direct marketing 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 a chance to taste the products directly in a manner that enables them to view clearly what the company has to offer (Roberts and Berger 2012)
There are several avenues and types of the Internet-based advertising, as is sometimes called. These include those meant to reach specific target groups and those meant to reach out to the general masses out there in the public (Sheehan, 2010)