SoupedUP!

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SoupedUP!

• Group 1
• Nader Al Essa
• Haitham Al Humsi
• Jill Richardson
• Kim Rubenstein
• Luqman Sadiq
• Alan Yeung

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Problem Statement

• Panera (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 Paneras customer base.

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SoupedUP!
TM
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SoupedUP! Mission Statement

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

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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

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Stock Price (NASDAQ PNRA)
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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

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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

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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

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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

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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

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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

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Environmental Analysis

• With more dual-income families, consumers seek
  convenient dining solutions
• More health information is available, making the
  average consumer more health conscious

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S.W.O.T Strengths

• Leading bakery-café nationwide
• Award-winning sourdough bread
• High quality food
• Highly profitable
• Loyal customer base

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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

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S.W.O.T Opportunities

• Increasing health consciousness among consumers
• Very few direct competitors
• Ample room to expand into new markets

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S.W.O.T Threats

• Delivery services such as 569-DINE
• Due to high profit margins, potential for
  competitors to enter the market

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SoupedUP! The Plan
TM
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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

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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

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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

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SoupedUP! Product
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SoupedUP! Price
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SoupedUP! Price
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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

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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

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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

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SoupedUP!

• Any Questions?

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Thank you!
TM