Panera Bread

1672 WordsMar 29, 20117 Pages
Executive Summary Problem Statement: While Panera bread has incorporated a great strategy by provided their customers with an upscale, high-quality dining experience in the specialty Café category, they have fallen slightly behind in their pricing strategy in order to remain competitive when so many competitors are offering a similar experience with lower prices. Analysis: Panera’s Strategic intent and vision has been: • Make great bread broadly available to customers across the US • Have an attractive Menu • Upscale dining Ambience • Specialty café anchored by authentic fresh dough artisan bakery • To be one of the leading fast casual restaurant chains in the nation • Incorporate a “name your own price” pricing strategy.…show more content…
Their marketing strategy is to allow consumers to “collide” with the brand and discovery it themselves in hopes that they will recommend it to others. “Pay what you want” at Company Cares Cafe: in May of 2010 Panera Bread did experiment with a different pricing strategy. They formed a non-profit organization and restaurant called Company Cares Café in which you pay what you can and want for your meal. You get a suggested price but you pay at your discretion. External Environment: Panera’s external environment has changed as more and more restaurants open within their category. However they have maintained they initial strategies as these are the ones that got them to where they are now. They have also added more franchisees and more locations. Another significant change they have undergone since 2007 is that Panera now has a new CEO. In Appendix A Ronald Shaich writes a letter to the company explaining he will be leading the company from a different role. He will be part of the board and no longer the CEO. He is still passionate about Panera but he wants to explore other ways of expanding the business and cannot do it while running the company Challenges: As explained previously some of the challenging Panera faces are falling short in their pricing strategy. Although they have been profitable, competitors are fierce and fast and they prices are lower for more food; and in America, more means value. They

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