Panera Bread
Executive Summary
Panera Bread Company is a national bakery-café with 1027 quick service location across the U.S. and with plans to have 2000 outlets operating by end of 2010. Panera’s strategy is a focused differentiation strategy. Their strategic goal is to provide a premium specialty bakery and café experience to urban workers and suburban dwellers.
The revenues are generated through sales from company-operated stores, fees and royalties from franchisees and sales from fresh dough facilities. Although Panera Bread has acquired a loyal customer base, a strategic market penetration through expansion of operations while retaining market share in a fiercely competitive industry is an issue at the forefront for management. Panera Bread maintains a healthy financial position as margins and ROE are healthy despite recent weaknesses observed due to rising debt levels and lower liquidity. Sales are increasing at a constant rate and free cash flow is available for strategic investment. The company faces strong competitive pressures due to competing sellers improving their market standing and business performance employing tactics such at attractive menu options, lower prices and stronger brand image and appeal. Panera Bread differentiates itself based on consistent quality, freshness of ingredients and an esthetically pleasing ambiance in its local outlets.
A strategic market penetration through expansion of operations while retaining market share requires management to review various alternatives. First, Management can review a reformed marketing strategy that increases market penetration through use of media and social media to enhance existing brand image and customer appeal. Second, Management’s expansion initiative can be supported by exploring the untapped markets through company-owned and franchise-owned stores to increase market share and make their great bread and dining ambience widely available to customers across the country. Third, Management
Panera Bread Company is a national bakery-café with 1027 quick service location across the U.S. and with plans to have 2000 outlets operating by end of 2010. Panera’s strategy is a focused differentiation strategy. Their strategic goal is to provide a premium specialty bakery and café experience to urban workers and suburban dwellers.
The revenues are generated through sales from company-operated stores, fees and royalties from franchisees and sales from fresh dough facilities. Although Panera Bread has acquired a loyal customer base, a strategic market penetration through expansion of operations while retaining market share in a fiercely competitive industry is an issue at the forefront for management. Panera Bread maintains a healthy financial position as margins and ROE are healthy despite recent weaknesses observed due to rising debt levels and lower liquidity. Sales are increasing at a constant rate and free cash flow is available for strategic investment. The company faces strong competitive pressures due to competing sellers improving their market standing and business performance employing tactics such at attractive menu options, lower prices and stronger brand image and appeal. Panera Bread differentiates itself based on consistent quality, freshness of ingredients and an esthetically pleasing ambiance in its local outlets.
A strategic market penetration through expansion of operations while retaining market share requires management to review various alternatives. First, Management can review a reformed marketing strategy that increases market penetration through use of media and social media to enhance existing brand image and customer appeal. Second, Management’s expansion initiative can be supported by exploring the untapped markets through company-owned and franchise-owned stores to increase market share and make their great bread and dining ambience widely available to customers across the country. Third, Management