Market Analysis of Panera Bread
Describe positioning and operational effectiveness at Panera Bread. Identify numerous examples in your description.
According to company’s profile given in case 8, Panera Bread’s establishment started in 1981 by Louis Kane and Ron Shaich as a bakery café. Sooner they have studied the market and opened café chains in different states. They had realized that they had an opportunity to compete with other fast food companies if they could offer higher quality and at the same time quick dining experience. As author states the vision was to create a specialty café anchored by an authentic, fresh-dough artisan bakery and upscale quick-service menu selections (Thomas, 2008). This is what the consumers were looking for; “convenience fast food
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And it’s quite clear that franchisers running Subway definitely will not be able to franchise Panera Bread café. Additionally, in marketing its products Panera tried to provide an entire dining experience rather than attracting customers by price. It was striving to inform customers that they offer quality food for reasonable price. Other things which Panera was doing better are location and design of cafes. Panera had analyzed each space and its location before starting its business in that location. Based on analysis of demographic, and trade area Panera was building report and then was deciding to open a new café or not. Additionally to this, Panera Bread has invested $52 million in network of 17 regional fresh dough facilities to supply fresh dough daily to both company owned and franchised bakery cafes. This built network is helping Panera to bring fresh dough to each café it has, at right time in good quality. According to the article, company’s fresh dough making capability provided a competitive advantage by ensuring consistent quality and dough making efficiency. Which is also means that Panera Bread’s activities has fit and reinforced each other.
It is obvious that fast food chains market has many sellers and buyers. And Panera Bread is in this market where it has high threat of