2. The Problem: Panera Bread has created a brand image that is characterized by its fresh
food variety, quick service, and more sophisticated than fast food meal options. Currently, its
beverage items do not coincide with these characteristics causing a disconnect between the
food and drink options in the mind of the consumer.
The Solution: Panera Bread needs to reposition its brand by improving the way they
promote not only themselves, but specifically its beverages.
The Plan: We determined that the most effective strategy to fix our problem will be enacted
through a series of plans explained through the acronym R.E.V.A.M.P.
EXECUTIVE SUMMARY
Restructure Engage Value Awareness Market Promote
3. SECONDARY RESEARCH
Here is what’s going on:
● Fast-casual dining has increased in popularity.
● Restaurants are challenged with satisfying two very different generation, Baby
Boomers and Millennials.
● People are becoming more aware of what they are putting in their body
● There is a consumer disconnect with brand image of Panera Bread
● Competitors: Chipotle, McAlister’s, Newk’s, Starbucks
5. INSIGHTS
Food is the primary factor in the decision process
for where to eat. Beverages are secondary.
● 92.93% of survey respondents said that they would dine at a
restaurant that does not serve soft drinks.
● 76% of survey respondents said that they do drink soft drinks.
6. Consumers are habitual and risk averse.
INSIGHTS
When asked about alternative beverage options, respondents answered:
● “Irrelevant. I always choose the same thing.”
● “If it’s a typically place I go to, then I’m not willing to try new beverages.”
● “I only drink water and sweet tea, everywhere.”
During a taste test in a focus group, participants were offered six different
beverages. Many were willing to try new beverages and were more concerned
with getting a drink within their preference category. (i.e. sodas, teas, juices)
7. Beverage preferences are influenced by mood
and social environment.
INSIGHTS
41% of our survey participants used an emotion
to describe how soda makes them feel:
● “Happy”
● “Relaxed”
● “Refreshed”
● “Amazing”
8. There are soda loyalists. There are water loyalists. And
then there are people who are in between.
INSIGHTS
10. Consumers have a disconnect with the Panera Bread
brand image.
INSIGHTS
Throughout its website, Panera references the fact
that its ingredients are “clean” and its food is “freshly”
made. Consumers have taken this language and
perceived Panera as a brand that is striving to be
known as a “healthy” option.
11. SWOT ANALYSIS
STRENGTHS WEAKNESSES
● Innovation in menu offerings provides competitive
advantage.
● Strong presence in fast-casual dining.
● Casual, upscale, comfortable atmosphere.
● Artificial additives in food.
● Limits on food variety, at risk of falling away from the
healthy and fresh initiative.
● Beverages do not align with the food.
OPPORTUNITIES THREATS
● New demand for organic products could lead to an
increase in revenue.
● Change consumer perception.
● Introduce new product and state-of-mind.
● New competitors entering the fast-casual market.
● Shortage of suppliers/resources.
● Health-conscious trend could fade away.
● If a recession hit, people would fade away from
higher priced meals.
● Market becoming saturated.
12. TARGET AUDIENCE
● Strong-minded
● Health-conscious
● Stubborn in her ways
● Indulgent
● Aware of natural choices
● Comfortable in her own skin
Panera Girl is not only a human being... it is a “state-of-mind”
● Millennials
● Middle-class
● Disposable income
16. Stubborn Soda
RESTRUCTURE
● A Pepsi based product that is
focused on extending its reach in the
craft beverage market
● Stubborn Soda comes from the
determination to “come up with flavor
profiles we know customers will love”
● “tap-like pouring ritual” to offer
consumers a different perspective on
the soft drink experience
25. Radio Ad: “Tuesday”
Strategy: Advertising will introduce Panera Bread’s newest beverage options.
Tone will be upbeat, relatable and trendy.
Panera Girl #1 Makala, (acting sore) Abbey I can’t believe you talked me into that Pilates class, i’m
going to be sore for a week!”
Panera Girl #2 Abbey, “Oh come on, Makala, it wasn’t that bad!”
Makala: (sarcastic) “Yea, ok.”
Abbey: “Well hurry your sore self up. We’re meeting the girls at Panera remember?
Makala: Didn’t we just go there the other day?
Abbey: “Yep! It’s a good thing. It never gets old, c’mon let’s go!
Narrator: “My time, Family time, study time, date time, any time is Panera Time. Come find or make
the perfect drink for you. With dozens of soft drinks, freshly made lemonades, fruit teas, coffee
blends and the ALL-NEW Indulge Yourself flavor bar, Panera is your one-stop drink spot. Come get
your Panera fix today.”
MARKET to Millennials
30. Media Budget
● PRINT $820,015
People $345,900
Cosmopolitan $268,515
Women’s Health $205,600
● DIGITAL MEDIA $608,625
Hulu $220,625
YouTube $250,000
Pandora $138,000
● SOCIAL MEDIA $200,000
Facebook $110,000
Instagram $90,000
● OUTDOOR ADVERTISING $371,360
Billboards $60,000
In-store Signage $311,360
TOTAL COST $2,000,000
31. Results
Average price of a drink
Drink’s costs (40%)
Profit (60%)
$2.50
- $1.00
$1.50
5+ drinks a day
x $2.50
x 360
x 1,946 store lo
$8,757,000
- $3,502,800
$5,254,200
(40%) drink costs
(60%) profit
