Marketing 370 - Principles of Marketing

SoupedUP!

Group #1Nader Al Essa

Haitham Al HumsiJill Richardson

Kim RubensteinLuqman Sadiq

Alan Yeung

Marketing 370 - Principles of Marketing

Problem StatementPanera (St. Louis) Bread Co.• Despite phenomenal growth nationwide, growth

has stagnated in the St. Louis area.

Objective:• To increase growth in the St. Louis area by

opening a new soup restaurant to expand and diversify Panera’s customer base.

Marketing 370 - Principles of Marketing

SoupedUP!

TM

Marketing 370 - Principles of Marketing

SoupedUP!: Mission Statement

• To provide a unique, healthy, high-quality, and convenient international dining experience

Marketing 370 - Principles of Marketing

History: Panera Bread Co.• Founded in 1987 in St. Louis as Saint Louis

Bread Co.• Expanded to 19 bakery-cafes by 1993• Bought by Au Bon Pain Co. in 1993• Sold Au Bon Pain in 1999• Renamed Panera Bread Co. • Currently has 262 bakery-cafes in 28 states

Marketing 370 - Principles of Marketing

Stock Price (NASDAQ: PNRA)

Marketing 370 - Principles of Marketing

Current Marketing Mix: Product

Menu: Deli Sandwiches, Panini, Soups, Bakery Goods, Espresso

All high quality and fresh Offers bakery goods as well as meal items Restaurants with a European flair

Marketing 370 - Principles of Marketing

Price• Average lunch costs $6.41• Average breakfast costs $3.76• Average purchase costs $5.44• Lower prices than sit-down dining• Avoids price competition through brand equity

Marketing 370 - Principles of Marketing

Promotion• Cultivates good will with community through

public relations, such as donating to causes such as Walk for Diabetes and donating leftovers to the homeless

• Frequent purchase programs for both deli sandwiches and espresso

• Less emphasis on traditional advertising

Marketing 370 - Principles of Marketing

Place• Utilizes a combination of company owned stores

and franchises• Located in malls, strip malls, and free-standing

buildings• 262 locations in 28 states with plans to expand

to 1500 locations nationwide

Marketing 370 - Principles of Marketing

Competitor Analysis• Competition includes bakeries and other

restaurants that fall between fast food and casual dining, such as Starbucks and Einstein Bros.

• Indirect competitors include fast food and sit down dining venues

Marketing 370 - Principles of Marketing

Demand and Customers• Customers include Trend-setters and Good food

traditionalists• Both groups desire quality experience tailored to

their discriminating tastes• Trend setters especially tend to embrace new,

healthy menu items

Marketing 370 - Principles of Marketing

Environmental Analysis• With more dual-income families, consumers seek

convenient dining solutions• More health information is available, making the

average consumer more health conscious

Marketing 370 - Principles of Marketing

S.W.O.T: Strengths• Leading bakery-café nationwide• Award-winning sourdough bread• High quality food• Highly profitable• Loyal customer base

Marketing 370 - Principles of Marketing

S.W.O.T: Weaknesses• Soup quality varies from day to day• Small percent of profits come from dinnertime

sales• Low brand awareness in new markets• Market saturation in St. Louis area

Marketing 370 - Principles of Marketing

S.W.O.T: Opportunities• Increasing health consciousness among

consumers• Very few direct competitors• Ample room to expand into new markets

Marketing 370 - Principles of Marketing

S.W.O.T: Threats• Delivery services such as 569-DINE• Due to high profit margins, potential for

competitors to enter the market

Marketing 370 - Principles of Marketing

SoupedUP!: The Plan

TM

Marketing 370 - Principles of Marketing

General Marketing Strategy• Subsidiary of Panera Bread Co.• Open a new restaurant, SoupedUP!, in Clayton,

MO• SoupedUP! offers a wide range of high quality

soups as well as a selection of the most popular Panera Bread Co. menu items

• Target health conscious, on-the-go customers• Differentiate from Panera Bread Co. by providing

a distinct, international atmosphere

Marketing 370 - Principles of Marketing

SoupedUP!: Product• 15 daily soups made from fresh ingredients on

site• Includes more traditional “comfort food” as well

as exotic international selections• 2 sizes, offered in bowls and bread bowls• Cold soups and salads to maintain sales in

summer months

Marketing 370 - Principles of Marketing

SoupedUP!: Product• Offer vegetarian and vegan selections• Customize by offering additional ingredients• Foster an international atmosphere, expanding

on traditional European feel of Panera Bread Co.• Provide an international ‘Soup-of-the-Month’

option on our menu

Marketing 370 - Principles of Marketing

SoupedUP!: Product

Marketing 370 - Principles of Marketing

SoupedUP!: Price

Marketing 370 - Principles of Marketing

SoupedUP!: Price

Marketing 370 - Principles of Marketing

SoupedUP!: Price• Prices: Regular $2.95, Large (bread bowl) $4.95• Add-ons include tofu, chicken, beef, and shrimp,

ranging from $.75 to $1.35 for the regular size and $.95 to $1.75 for the large size

• Priced relatively high to show high quality

Marketing 370 - Principles of Marketing

SoupedUP!: Promotion• Continue Panera Bread Co.’s emphasis on public

relations• Advertise in current Bread Co. restaurants,

university newspapers and Riverfront times• Frequent purchase programs such as punch-

cards• Goodwill donations to local organizations that

promote diversity• Extra soup donated to needy

Marketing 370 - Principles of Marketing

SoupedUP!: Place• Company owned restaurant• Located in Clayton, MO on Forsyth Rd. between

Washington University and Clayton Business District

• Eventually expand to other locations in St. Louis area and other cities with saturated Panera Bread Co. markets

Marketing 370 - Principles of Marketing

SoupedUP!

Any Questions?Any Questions?

Marketing 370 - Principles of Marketing

Thank you!

TM