K E L S E Y H U N TI N T E G R A T E D M A R K E T I N G C O M M U N I C A T I O N S M R K T 3 5 4

S E C T I O N 6 3 8 0 FA L L 2 0 1 5

PANERA BREAD

PANERA BREADEXECUTIVE SUMMARY

Utilize Social Media to reach intended target markets via Instagram, Twitter, and Facebook

• Promotion mix will focus on both traditional and non-traditional media composed of:

- Online Video Ads- Advertisements on popular Food & Lifestyle Blogs- Social Media Platforms- Print Advertising in Magazines, such as Redbook and Glamour

Goal is to increase followers on all social media sites and generate a 40% increase in brand awareness

Advertising Campaign will focus on using ‘Slice of Life’ Framework for all ads

Advertisements will consist of Panera Bread customers and will appeal to the emotions of our target audiences

PANERA BREADTABLE OF CONTENTS: PART 1

i: Current Marketing Situationi: Product Descriptionii: Competitive Positioniii: Value Propositioniv: Market Characteristicsv: Buyer Decision Behaviorvi: Brand Strategyvii: Lifecycle Stage and Benefit Analysisviii: Channel designix: Communication Objectivesii: Communication Objectives and Issues

PANERA BREADTABLE OF CONTENTS: PART 2

i: Overall message design strategyii: Message contentiii: Message structureiv: Message format/executional

formatv: Media channels vi: Message sourcevii: Feedback metrics

PANERA BREADTABLE OF CONTENTS: PART 3

i: Overview Promotional Mix Tools Iii: Promotional Budgetiii: Promotional Mix Tools • A. Advertising Objectives• B. Message Theme• C. Media Strategy• D. Public Relations• E. Personal Selling• F. Direct Marketing, E-Active, Online Objectives and Strategies

iv: Evaluating Plan Resultsiii: Endnotesiv: Bibliographyiiv: Exhibits

PANERA BREAD CURRENT MARKETING SITUATION

Product Price Place Promotion

All menu items use healthy, fresh ingredients

All items are under $20

Integrated Bakery and Café Store Fronts

Online Ordering & In store Pick-up3

Affordable meals for various market segments

‘You Pick 2’ option consisting of Salads, Soups, and Sandwiches2

Popular place for meetings- both business and personal

Print

Eliminated roughly 150 unhealthy ingredients in 2015 already1,15

MyPanera Rewards

Warm, inviting, friendly atmosphere

Online; social media and online videos

Television

PANERA BREAD DESCRIPTIONUPSCALE CONVENIENCE ITEM FOR INDIVIDUAL USE

Core Fresh & Healthy

Foods at an Affordable Price

Community oriented

Fast, Friendly Service

Offers online ordering and in-store

pick-up

Many customers meet at Panera

Bread on a regular basis

Actual Description

Augmented

There are currently 1,926 bakery-cafes4

Calories listed on the menu boards

Features a public ‘No-No’ List of

ingredients not used

Provides Free Wi-Fi

All menu items are priced under

$20

Focuses on a ‘Transparent

Menu’5

Catering available for

business events

Focuses on Animal Welfare

PANERA BREADCOMPETITIVE POSITION

Market Share: Panera captures more than 53% of the bakery cafés market share6

 Top Competitors consist of :7

ChipotleStarbucksEinstein Noah Restaurant

Group La Madeline Restaurant

Panera Bread’s disadvantage is as of 2013, projected sales growth for 2014 were

2-3.5 %.8

Panera Bread faces competition with Chipotle for introducing healthier ingredients on all menu items

Panera Bread is the industry leader in bakery cafes9

PANERA BREAD’S VALUE PROPOSITION

Panera Bread is aware that

consumers want healthier options

when they are eating out

In response to this, Panera Bread has

promised to use ‘clean

ingredients’ by the end of

201610

Offers Online Ordering, also

known as Panera 2.0.11

The service allows customers to place an order

online and quickly pick it up

in store16

This service is especially

appealing to business people

on the go

The company puts customers needs first and

caters to them

Panera Bread understands the value

of healthy, great tasting food at an affordable

price and is constantly striving for the best

PART V: PANERA BREAD MARKET CHARACTERISTICS

Undifferentiated Market: Customer’s come from various walks and life and income levels

Measureable Profitable Accessible Distinguishable

Business Professionals

Number of business offices

in the surrounding area

Business people

typically will buy their lunch

Promotional e-mails; provide

catering menus to businesses

Marketing displays healthy, quick meals that can be ordered

online and picked up

College Students

College enrollment

College Students

spend money on food

Social media and college campuses

Marketing shows delicious

affordable meals

Families Demographics of families and

average household size

Parents with children go out to lunch with friends often

TV commercials, Print ads in parenting magazines

Marketing shows convenient meals featuring healthy

ingredients

PANERA BREADBUYER DECISION BEHAVIOR

Buyers use mostly habitual buying behavior since most are purchasing a product

they’ve bought before or are familiar with

The purchase is not expensive and the customer doesn’t usually do any in-depth

prior research

Customers will research products has to regarding allergy information of the food

and drinks

The product and service of Panera Bread faces direct competition with other food

establishments such as Starbucks, Einstein Bagels, and Chipotle

These food establishments have similar price points and marketing objectives

PANERA BREADBRAND STRATEGY

Panera Bread is a national brand that operates under the

following names:

Panera Bread®

Saint Louis Bread Co.®

Paradise Bakery & Café® 

The brand is recognized by it’s earth tone color scheme

which denotes it’s use of healthy ingredients

Panera Bread’s brand name is typically shortened by

customers and known simply as ‘Panera’

PANERA BREAD LIFE CYCLE STAGE & BENEFIT ANALYSIS

Currently in the Maturity lifecycle

stage because it has become established

national brand Needs to focus on

gaining a competitive advantage

The main target audience focuses

in on the age groups between

18-50

This group consists of business

professionals, college students,

and parents

This group will be able to purchase

healthy, delicious food that is also budget friendly and affordable

 

The target audiences are late

mainstream because Panera

Brand is an established brand name and leader in the Bakery café market segment

However, consumers are still

looking for changes to occur in this industry,

such as healthier foods

PANERA BREAD CHANNEL DESIGN

Panera Bread uses selective distribution because the product is

primarily sold at the store front locations

Items such as Panera Bread pre-packaged

soups and gift cards can be found at major

retailers such as Target and Giant

Distributed through Panera Bread®, Target,

Giant, Sam’s Club, Amazon.com and other

retail outlets12

Panera Bread

Panera Bread Stores

Retail stores

Online retail stores

Customers

PANERA BREAD COMMUNICATIONS OBJECTIVES

Selective distribution can be limiting since the number of Panera Bread’s products that are available for sale in

retail stores is quite low13

The Multichannel Distribution System

allows for the customer to purchase Panera Bread

products at major retailer, such as Target14

PANERA BREAD COMMUNICATIONS OBJECTIVES AND ISSUES

Objectives 

Increase customer knowledge of the elimination of over 150 unhealthy

ingredients from 30% to 60%

Increase product knowledge on the newly reformulated products from 40%

to 70%

Increase promotion for MyPanera Rewards and gain at least 50,000

members by the end of 2016

Increase usage of the Panera Bread app on smartphones from 40% to 70%

Issues Dividing the budget amongst

various marketing ventures to promote the new

reformulated menu

Customers may be concerned that the newly

reformulated products don’t taste the same

Figure out who should be the primary target of the

MyPanera Rewards in order to reach the goal of 50,000 new

members

PART 2

PANERA BREADCOMMUNICATIONS STRATEGY RECOMMENDATIONS

Creative Message Goal

Media Channels Goal

Feedback Metrics Goal

To get everyday Panera Bread customers to praise the new healthy, changes to Panera Bread products and recommend products to others

To use a combination of media channels, including traditional, non-traditional, personal and non-personal, in order to reach the intended target markets

To acquire internal and external feedback by using qualitative and quantitate feedback metrics

PANERA BREADMESSAGE DESIGN STRATEGY

Key Idea & Promise

The key idea is that Panera Bread has taken action in order to make all products healthy and eliminate all artificial ingredients17

The key promise is that Panera Bread wants what is best for their customers. Making sure that all ingredients in every Panera Bread product are ones found in customers homes and pantry's.18

Constraints and Actions

Use hashtag, #PaneraProud on social media, to track customers and gain insight

Also use #PaneraProud in print ads as a reflection of Panera Bread’s core belief “Food as it should be.”19

Disclaimer needs to be established in reference to how one needs to maintain a healthy lifestyle and eating a well-balanced diet

PANERA BREADMESSAGE CONTENT

Specific Product

Information

Product Superiority22

Appeals to the Consumer

Buyer Readiness

Stage

• Use of clean ingredients in all Panera Bread Products by end of 201620

• Emphasis on Transparency21

• Public “No-No” List of prohibited ingredients

• First U.S. national restaurant company to publicly share a comprehensive list of ingredients that have been removed from its menu (or will never appear on future items)

• No artificial additives in all products22

• Use a combination of ethical and emotional appeals to draw in consumers

• Provide consumers with the strong points of Panera’s overhaul of unhealthy ingredients

• Target audience is in the Conviction stage of buyer readiness

• Need to get consumers to choose Panera Bread over competitors in order to get them to the ‘Buy’ stage of consumer readiness

PANERA BREADMESSAGE STRUCTURE

Goal is to focus on ‘Likeability’ of Panera

BreadTraits to convey to

consumers:• Warmth• Ingenuity

• Meaningfulness• Energy

Use one sided argument in order to convey genuineness to consumers

Present Strongest‘argument’

first in order to draw in the consumers attention

PANERA BREADMESSAGE FORMAT/EXECUTIONAL FORMAT

Traditional Media

Non- Traditional Media

Use Panera’s recognizable neutral colors and logo for easy brand recognition

‘Slice of Life’ framework will show consumers how the hashtag #PaneraPower, is used in real life and what it

means to them

Full page print ads will display the hashtag #PaneraPower along with a creative picture of Panera Bread products

Generate regular posts using #PaneraPower on all social media platforms

PANERA BREADMEDIA CHANNELS

Media Mix

Social Media

Lifestyle and Food Review

blogs

Short online

Video Ads

Print ads in Food & Lifestyle

Magazines

Use a mixture of personal and non-personal media in order to reach target customers

Utilize traditional and non-traditional media in order to grasp the largest audience

Media used by competitors:

• Social Media• Print advertising• Online advertising• Television• Radio

Media Mix to use:

• Heavy focus on Social Media

• Online advertising on various types of websites

• Short advertisements on YouTube, Hulu, and Netflix

PANERA BREADMESSAGE SOURCE

Use real Panera Bread customers in all ads to promote transparency

The target audience will trust fellow Panera Bread customers the most

Use customers of various age groups, ethnic backgrounds, and lifestyles

Doing so will appeal and add to the ‘Slice of Life’ style framework Panera Bread wants to project in all ads

PANERA BREADFEEDBACK METRICS

Internal Feedback Metrics will consist of using various Focus Groups in different areas of the United States to provide feedback about Panera Bread’s recent changes

External Feedback metrics will consist of tracking the hashtag, #PaneraPower, on all social media platforms. Doing so will give us insight to see if the campaign is working and will provide insight to how customers use and see Panera Bread

In the past, Panera Bread has used feedback metrics consisting of customer satisfaction surveys as well as direct customer feedback in the form of e-mail and letters

PART 3

PANERA BREADPROMOTION MIX

Use combination the following mediums:

• Social media• Online videos• Print advertising • Advertisements on Lifestyle

& Food review blogs

Why these mediums? Social media is fairly

inexpensive and easy to use Online videos appeal to vast

amount of viewers Popular blogs have a strong

following and readers trust the bloggers opinions

General Media Strategies

• Use social media platforms such as Instagram, Facebook, and

Twitter

• Online videos will show real Panera Bread customers

trying the newly improved menu items in a real time setting

• Corporate website displays all menu items along with nutrition

information23

PANERA BREADPROMOTION BUDGET

Measured Media: $3 million• 30%- Social media advertising• 30%- Online video ads• 20%- Blog advertising

Traditional Media & Other- $1 million-Print ads- Focus Groups

• Use Top Down budget based on percentage of sales method

• Will use Grey Advertising Agency 24

PANERA BREADPROMOTION MIX STRATEGY

Use a combination of personal and non-personal promotional strategies

Pull strategy will be utilized by:

• Enticing consumers with coupons

• Generating buzz on social media using the hashtag, #PaneraPower

• Word of mouth advertising from loyal customers

Focus of advertising efforts will be during the fall and holiday seasons

Why?

Consumers are more likely to spend money on food during these two times of the year

PROMOTION MIX: A. ADVERTISING OBJECTIVES

Goals• Reach 60% of each intended

target audience within the first six months

• Have 50% of coupons redeemed within the first 8 months

• Gain additional 50,000 followers on Instagram in three months

• Have at least 10,000 #PaneraPower Hashtags used on social media in 6 months

• Offer coupons in both digital and print format

• Use Social Media formats to post about coupons

• Print advertising in magazines will include a coupon

PROMOTION MIXB. MESSAGE THEME

• Appeal to the lives of Panera’s everyday consumer

• Have ads depicting how Panera’s newly reformulated menu is a better on-the-go food choice

• Use ‘Slice of Life Framework’ to convey a realistic product image using real customers in all ads

• Major targets will be business professionals and college students

• Establish an emotional connection with the brand

PROMOTION MIXC. MEDIA STRATEGIES

Social Media Platforms:• Facebook• Instagram• Twitter• YouTube

• During the Holidays release three different special promotional coupons

Current Social Media Specs

25Facebook: Audience consists of

2,771,948 Page ‘Likes’26Instagram: 81.5k Followers

27Twitter: 387k Followers28YouTube: “Food As It Should Be”

Commercial has currently 3,001,146 views

PROMOTION MIXD. PUBLIC RELATIONS

• Issue Press Release of all newly changed menu items as well as a ‘No-no’ list of no-longer used ingredients

• Arrange a segment on NBC’s ‘The Today Show’ in order to showcase the new menu changes

• Repost consumer’s pictures of Panera’s newly changed menu items on various social media accounts

Newsworthy Event: “Panera bakery-cafes donated a retail value of approximately $100 million worth of unsold bread and baked goods in 2013 to help fight food insecurity in our communities.”29

PROMOTION MIXE. PERSONAL SELLING

• Ask customers if they would like a sample of the ‘Product of the Week’ with their order

• ‘Product of the Week’ will be a newly reformulated menu item

• Have the staff ask if the customer liked the sample they received

• Ask customers to provide feedback on new menu items based on a 6 digit code on their receipt that can be used online

• Offer a free coffee for providing their feedback via the code on the receipt

PROMOTION MIX TOOLSF. DIRECT MARKETING, E-ACTIVE & ONLINE OBJECTIVES AND

STRATEGIES

• Direct Marketing: Send out Holiday coupon booklet to customers with MyPanera Rewards Accounts30

• The hashtag, #PaneraDate, is popular on Instagram and currently has 5,188 ‘tags’31

• Many Images with the tag, #PaneraDate, consist of happy Panera Bread Customers and also of their food

• Use the images and videos from both hashtags, #PaneraDate & #PaneraPower, to use in online commercials

• Use Facebook in order to gain direct feedback from consumers

PANERA BREADEVALUATING PLAN RESULTS

• Return on Investment with sales revenue and sales volume

• Increase awareness about Panera Bread’s newly reformulated menu items

• Have primary focus be on Social Media advertising and engaging with consumers

• Evaluate responses during the Focus Groups and see what needs to be improved upon

• Analyze if the target groups are using the hashtag #PaneraPower on social media platforms, such as Instagram and Twitter, or not

• Measure how many new MyPanera members are gained within the first 6 months of the campaign

• Use feedback metrics, such as surveys, to analyze customers satisfaction with the newly reformulated products

ENDNOTES• 1,10,17,18: http://fortune.com/2015/05/04/panera-bread-ingredients/• 2: https://www.panerabread.com/en-us/featured-menu/you-pick-two.html• 3,11: https://delivery1.panerabread.com/#!/• 4,12: https://www.panerabread.com/en-us/company/about-panera/our-history.html• 5: https://www.panerabread.com/en-us/our-beliefs/our-food-policy/transparent-menu.html• 6,8,9:

http://www.franchisechatter.com/2014/06/18/franchise-chatter-guide-what-does-panera-breads-anemic-sales-growth-mean-for-the-entire-bakery-cafe-franchise-sector/

•  • 7: http://www.hoovers.com/company-information/cs/company-

profile.Panera_Bread_Company.59b82960f75a0c07.html• 13: https://www.panerabread.com/en-us/panera-at-home/cpg-product-info-brand-

soups.html• 14: http://www.target.com/bp/panera• 15:

http://www.nytimes.com/2015/05/05/business/panera-bread-plans-to-drop-a-long-list-of-ingredients.html?_r=1

• 16: http://fortune.com/2014/03/27/with-digital-ordering-panera-makes-a-big-bet-on-tech/• 17, 18,20,21:

http://www.nytimes.com/2015/07/05/business/paneras-mission-to-be-anything-but-artificial.html?_r=0

• 19: https://www.panerabread.com/en-us/our-beliefs/food-as-it-should-be-nopt.html• 22: https://www.panerabread.com/en-us/company-information/terms-of-use.html

ENDNOTES CONT. • 23: https

://www.panerabread.com/en-us/menu-categories/freshly-baked-breads.html#french

• 24; http://grey.com/global• 25:https://www.facebook.com/panerabread?fref=ts• 26:https://instagram.com/panerabread/?hl=en• 27:https://twitter.com/panerabread?ref_src=twsrc%5Egoogle

%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor• 28:https://www.youtube.com/watch?v=siNpOGBv7Ak• 29:

https://www.panerabread.com/en-us/articles/day-end-and-in-kind-donations.html

• 30: https://instagram.com/explore/tags/paneradate/• 31: https://www.panerabread.com/en-us/company/meet-

mypanera.html

BIBLIOGRAPHY #paneradate • Instagram photos and videos. (2015). Retrieved October 6, 2015, from https://instagram.com/explore/tags/paneradate/  Bixler, B. (2014, June 18). Franchise Chatter Guide: What Does Panera Bread’s Anemic Sales Growth Mean for the Entire Bakery Cafe Franchise Sector? - See more at: Http://www.franchisechatter.com/2014/06/18/franchise-chatter-guide-what-does-panera-breads-anemic-sales-growth-mean-for-. Retrieved August 31, 2015, from http://www.franchisechatter.com/2014/06/18/franchise-chatter-guide-what-does-panera-breads-anemic-sales-growth-mean-for-the-entire-bakery-cafe-franchise-sector/  Day-End Dough-Nation™ & In-Kind Donations. (2015). Retrieved October 6, 2015, from https://www.panerabread.com/en-us/articles/day-end-and-in-kind-donations.html Food as it should be (commercial) [Motion picture]. (2015). https://www.youtube.com/watch?v=siNpOGBv7Ak Freshly Baked Breads. (2015). Retrieved October 6, 2015, from https://www.panerabread.com/en-us/menu-categories/freshly-baked-breads.html#french  Gelles, D. (2015, July 4). Panera's Mission to Be Anything but Artificial. Retrieved September 19, 2015, from http://www.nytimes.com/2015/07/05/business/paneras-mission-to-be-anything-but-artificial.html?_r=0  Global | Grey Advertising Global | Famously Effective Since 1917. (2015). Retrieved October 6, 2015, from http://grey.com/global  Kell, J. (2015, May 4). Panera CEO says 'no' to unacceptable ingredients. Retrieved

BIBLIOGRAPHY CONT. Kowitt, B. (2014, March 27). With digital ordering, Panera makes a big bet on tech. Retrieved August 31, 2015, from http://fortune.com/2014/03/27/with-digital-ordering-panera-makes-a-big-bet-on-tech/ Our Food Policy: Transparent Menu. (2015). Retrieved August 31, 2015, from https://www.panerabread.com/en-us/our-beliefs/our-food-policy/transparent-menu.html  Panera Bread (@panerabread) • Instagram photos and videos. (2015). Retrieved October 6, 2015, from https://instagram.com/panerabread/?hl=en  Panera Bread Facebook Page. (2015). Retrieved October 6, 2015, from https://www.facebook.com/panerabread?fref=ts  Panera Bread Twitter. (2015). Retrieved October 6, 2015, from https://twitter.com/panerabread?ref_src=twsrc^google|twcamp^serp|twgr^author  Panera Bread Ordering Application. (2015). Retrieved August 31, 2015, from https://delivery1.panerabread.com/#!/

Panera Bread Company: Company Information. (2015). Retrieved August 31, 2015, from http://www.hoovers.com/company-information/cs/company-profile.Panera_Bread_Company.59b82960f75a0c07.html

Panera Bread Company: Company Information. (2015). Retrieved August 31, 2015, from http://www.hoovers.com/company-information/cs/company-profile.Panera_Bread_Company.59b82960f75a0c07.html

BIBLIOGRAPHY CONT.   Meet MyPanera. (2015). Retrieved October 6, 2015, from https://www.panerabread.com/en-us/company/meet-mypanera.html  Our Food Policy: Transparent Menu. (2015). Retrieved August 31, 2015, from https://www.panerabread.com/en-us/our-beliefs/our-food-policy/transparent-menu.html

Panera Bread Ordering Application. (2015). Retrieved August 31, 2015, from https://delivery1.panerabread.com/#!/

Panera Bread Company: Company Information. (2015). Retrieved August 31, 2015, from http://www.hoovers.com/company-information/cs/company-profile.Panera_Bread_Company.59b82960f75a0c07.html  Panera Bread at Target. (2015). Retrieved August 31, 2015, from http://www.target.com/bp/panera  Rethink HomemadeTM. (2015). Retrieved August 31, 2015, from https://www.panerabread.com/en-us/panera-at-home/cpg-product-info-brand-soups.html  Strom, S. (2015, May 4). Panera Bread Plans to Drop a Long List of Ingredients. Retrieved August 31, 2015, from http://www.nytimes.com/2015/05/05/business/panera-bread-plans-to-drop-a-long-list-of-ingredients.html?_r=1  Terms Of Use. (2015). Retrieved September 19, 2015, from https://www.panerabread.com/en-us/company-information/terms-of-use.html  You Pick Two. (2015). Retrieved August 31, 2015, from https://www.panerabread.com/en-us/featured-menu/you-pick-two.html  We Are Panera. (2015). Retrieved August 31, 2015, from https://www.panerabread.com/en-us/company/about-panera/our-history.html

EXHIBITS