Research Paper: Panera Bread Company-Growth

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SAMPLE EXCERPT:

[. . .] According to exhibit 1

Between 2002 -- 2006

666.1- 212.6 = 453.5

Percentage increase= 453/212.6 x 100 = 213.3%

Between the years 2002 and 2006, the company revenues increased by 213.3% a figure that signifies constant growth.

In the last years, 2009 -- 2010, the company again experienced a significant increase in revenues. Below is the percentage.

1321.1- 1153.3 = 167.8/1153.3 x 100 = 14.5%

The company thus realized increased revenue of 14.5%. This signifies an increase in growth from the previous years. To realize further growth, the company may engage in more strategies that will ensure the most efficient results are achieved. Other programs that will attract more customers need to be introduced to ensure that the company is n the right trend in its market. In addition, the number of bakeries opened at the end of each year increased significantly at an impressive rate. This signifies a proper financial position of the company and its capability to expand its services.

In exhibit 2

According to exhibit 2, the number of bakeries increased steadily from 478 o 1453. This also symbolizes a steadfast financial position since the company is expanding into larger boundaries. It also symbolizes an increase in profit margin hence the best results.

In exhibit 3

This shows the increase in company expansions in various states and locations. It also has 341 locations in the various sixty foreign countries. This signifies an increase in revenue and also development in terms of marketing strategies.

According to these statistics, the company has showna great improvement in terms of its financial perfomance and expansion. The company is stable and capable of achieving great resuls and outputs.

5. What strategic issues and problems does Panera Bread management need to address?

One of the strategic issues that Panera needed to address was utilizing its potential in internal franchising efforts. 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). This will enable the bread company to capture the customers' willingness to venture into new restaurants.

The Panera bread management also needs to address the strategic issue of using its internal strength and capability in developing customer loyalty. This is useful in dealing with the threat of the low switching costs and the low customer loyalty. The final strategic issue to be addressed by Panera is strengthening its research and development department in order to make use of the growing number of buyers in the industry. In addition, the company needs to observe the entry and exit of its competitors. With the current changing trends, the company can keep its competitors under constant observation to ensure that they monitor all the new strategies introduced in the market. The company is experiencing growth in a very competitive market and very fine strategies need to be put in place to ensure that this company remains on top of the competition. It is thus important for the management to consider this aspect.

6. What does Panera Bread need to do to strengthen its competitive position and business prospects vis-a-vis other restaurant chain rivals?

For Panera to invest effectively in the low and untapped markets, Panera Bread needs to pursue a more aggressive promotional strategy. This will help Panera to deal with the stiff competition from both the upcoming restaurants and the established ones like Starbucks. Because of penetrating into the untapped market, Panera will be able to achieve its desired ratio of 1:160,000.

It is also recommended transforming the soft-sell marketing strategy to purely a promotional strategy. 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). In addition, the promotional campaigns should be organized in order to coincide with the launch of new cafes. This will also be instrumental in creating brand awareness by attracting new customers. Although this is an effective strategy, it may not be helpful in the highly-penetrates markets since Panera brand is already well established in such areas.

In order to retain the current customers, the management at Panera should come up with a system that recognizes and rewards the return customers. The rewards can be in various forms such as complimentary meals or beverages, price reductions on some items, or some shopping vouchers. This is likely to take care of the low switching costs threat by giving customers a reason to remain loyal. However, for this rewards to have any impact on customer retention, they should be given to the return customers or customers who refer others to Panera.

For the company to attract more customers, Panera should focus in diversifying its products and services. For instance, the company should initiate the sale of alcoholic beverages such as wines, beers, and Irish coffee. However, this should be done on some select Panera locations where regulatory laws permit. Thorough research should be done to find out the customer tastes and preferences for alcoholic drinks before determining those to be stocked. Indeed, if this is given an appropriate approach, Panera is likely to increase its market share by attracting new types of customers while trying to retain the existing customers.

Maintaining an excellent consumer experience could also help the company remain competitive in the market. This will make them market your products through the word of mouth to their friends and colleagues hence adding up o the list of many customers. The image that the company presets to the outside world really matters. It determines people's perception about your services as well as the nature of products you offer.

Finally, the company should aim at increasing its consumer volume. This implies that the people coming to the particular restaurant need to be many. This will highly improve the sales advertising as well as recognition. Through this awareness, many people will recognize the services even through the many social Medias that exist. It is thus important to ensure that… [END OF PREVIEW]

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Panera Bread Company-Growth.  (2013, May 31).  Retrieved June 20, 2019, from https://www.essaytown.com/subjects/paper/panera-bread-company-growth/8928472

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"Panera Bread Company-Growth."  Essaytown.com.  May 31, 2013.  Accessed June 20, 2019.
https://www.essaytown.com/subjects/paper/panera-bread-company-growth/8928472.