Old Town White Coffee-A Malaysian made coffee in crisis
SHOW HUNT IMC Project MRKT 354
1. K E L S E Y H U N T
I 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 F A L L 2 0 1 5
PANERA BREAD
2. PANERA BREAD
EXECUTIVE 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
3. PANERA BREAD
TABLE OF CONTENTS: PART 1
i: Current Marketing Situation
i: Product Description
ii: Competitive Position
iii: Value Proposition
iv: Market Characteristics
v: Buyer Decision Behavior
vi: Brand Strategy
vii: Lifecycle Stage and Benefit Analysis
viii: Channel design
ix: Communication Objectives
ii: Communication Objectives and Issues
4. PANERA BREAD
TABLE OF CONTENTS: PART 2
i: Overall message design strategy
ii: Message content
iii: Message structure
iv: Message format/executional
format
v: Media channels
vi: Message source
vii: Feedback metrics
5. PANERA BREAD
TABLE OF CONTENTS: PART 3
i: Overview Promotional Mix Tools I
ii: Promotional Budget
iii: 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 Results
iii: Endnotes
iv: Bibliography
iiv: Exhibits
6. 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
7. PANERA BREAD DESCRIPTION
UPSCALE 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
8. PANERA BREAD
COMPETITIVE POSITION
Market Share: Panera
captures more than 53% of
the bakery cafés market
share6
Top Competitors consist of :7
Chipotle
Starbucks
Einstein 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
9. 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
10. 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
11. PANERA BREAD
BUYER 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
12. PANERA BREAD
BRAND 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’
13. 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
14. 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
15. 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
16. 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
18. PANERA BREAD
COMMUNICATIONS 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
19. PANERA BREAD
MESSAGE 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
20. PANERA BREAD
MESSAGE 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
Transparency
21
• 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
21. PANERA BREAD
MESSAGE STRUCTURE
Goal is to focus on
‘Likeability’ of Panera
Bread
Traits 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
22. PANERA BREAD
MESSAGE 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
23. PANERA BREAD
MEDIA 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
advertisement
s on YouTube,
Hulu, and
Netflix
24. PANERA BREAD
MESSAGE 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
25. PANERA BREAD
FEEDBACK 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
27. PANERA BREAD
PROMOTION 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
28. PANERA BREAD
PROMOTION 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
29. PANERA BREAD
PROMOTION 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
30. 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
31. PROMOTION MIX
B. 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
32. PROMOTION MIX
C. 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 Followers
28YouTube: “Food As It Should Be”
Commercial has currently 3,001,146
views
33. PROMOTION MIX
D. 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
34. PROMOTION MIX
E. 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
35. PROMOTION MIX TOOLS
F. 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
36. PANERA BREAD
EVALUATING 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
39. 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
40. 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
41. 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