Panera Bread Essay

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PANERA BREAD CASE STUDY MARKETING FUNDAMENTALS 62.501.032 PHUONG LE APRIL 16, 2012 I. Executive Summary Since its inception, Panera Bread ‘s focus has been on the Specialty Bread/Bakery-Café category. The company ‘s goal has been to make Panera Bread a nationally dominant brand name. Toward that end, the focus has been primarily on expansion into additional suburban markets, going from 66 to 485 cafes in just 4 years. As of 2006, the restaurant industry was growing by 5% a year. Due to this growth rate there was room for more firms to enter the industry. This changed the industry structure in the coming years by introducing more competitors. As of 2006, there are 910 locations of Panera Bread with over 330,000 consumers per location. Panera’s business model satisfied customers’ needs through providing quality food in a casual setting that continued to bring customers in for the ambiance as well as the food. Panera achieved sufficient profits to cover the costs of providing this value to the customers by selling food in the cafés and by collecting franchising fees and a percentage of franchisee sales. II. Situational Analysis A. Environment 1. Economic conditions and trends i. As Panera’s business depends upon discretionary consumer spending, its financial results may be impacted by the broader global economic conditions and their impact on consumer spending. 2. Cultural and social values and trends i. Despite slow economic growth, fast food industry has been in good positions. People prefer more convenience and good quality food. In the recession, people watch their spending on low cost with high quality food. 3. Political and Legal Issues i. In 2011, Panera Bread was violating the California Labor Law with a settlement of $5 million dollars. 4. Summary of

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