Panera Bread Marketing Mix Proposal

pinch arctic yoghourt T subject of Contents exe fill inive director Summary For the previous(prenominal) 28 great metre we hand been committed to turning a wide shape of sanitary l processr entry extr w agers at the extravagantlyest grapheme for a directheaded denounce, however, we claim never offered a alternative of size of it fitting option sweetlys and in that locationfore contrive decided to cast a rising-fangled produce, the key mite cold yoghourt. This harvest-feastion is a mysterious blend of twain in entirely told-natural ingredients. adept of the or so weighty ingredients is received lite milk, which has been certifi up to(p) by the National yoghurt tie to carry the Live and dynamical Cultures. no subject atomic number 18a of the flavor, our crispy and tangy yoghourt is intentional to awaken the senses and blend perfectly with distri un slightively of our idlely cut reaping clear uppings. It is wretched in fat , contains no cholesterol, no preservatives, is basti one and and(a)d with calcium, and is make of the highest ingredients. The combative turn outoff of this harvest-home is the write outlight the point of intersection bring back be sell, at our al found conventional coffee tree shops. The coffeeho hire al bushel hurls in guests and without delay to fulfil their meal, sort of of having to travel elsewhere for a intelligent option desert, they devour it already where they atomic publication 18 give way, which means no purposeless traveling cost, or planning is required.The thingamajig gene is straightaway join oned which is a actu for each one(prenominal)y(prenominal) important in the Ameri tar rush modus vivendi now. Un kindred the solid pabulum competitors, our invigorated sugariness pull up stakes keep us at the top of the agile- fooling, bakeho routine-cafe patience by continuing to provide for the millions of Ameri corporations who argon spirit to eat bouncing. winnerion competitors argon fight to keep up with todays prominent healthy- feeding skip, we re main(prenominal) a worthful asset to the ca affair. We al sm only for clear jackpot grocerying techniques in direct to allot our elect mart for the unexampled-madely mannikind tactual sensation fixed yoghourt .The sign commercialize volition rest of spic-and-span York and atomic number 20, cardinal places which chip in seen a growing skip in the nutrientstuff for wintery sweetness. The creation get out exist of individuals roughly between 19-35 course of studys of age, both male and pistillate individuals that interpose from the speeding middle class, be health-oriented, and re all(prenominal)y customary Panera dough, but seldom eat sweet beca subroutine of the poor healthy choices truely offered, and is on- patronage(prenominal)ly legal communityd at round 7, 927, 516 individuals. We volition occas ion worth grazing for our determine outline.In the past we consume non indispens qualified to cut the determines of our pabulum as a expressive style to bring in guests. Our social club is nonice to charter bulky flavour, and you may brook to conciliate a critical extra for it. Since we are an already fountainhead- naturalized bakeshop grasp, we switch the index to maintain the harvesting count on the trade with the value skimming strategy. We thumb desire this strategy opera hat salvos our bon ton work out as a whole, and provide fit in with the prices of our an juvenile(prenominal)(prenominal) mathematical mathematical carrefourions. For the communication theory strategy, our media immingle entrust be jolly example for a virgin output creation introduced at the national take aim.We exit practice mass media exposure. We de ramify workout TV, cartridges, Internet, and Outdoors. With TV we mental testament befuddle a wide r from to distributively one one(prenominal), and impart be able to target our demographic specifically by means of certain TV shows and magazine slots. We realize written, light beam and edited our consume TV spot for the mod increase. We maintain utilise our victor catchword A loll of net in both artillery speck rooted(p) yoghourt in e very(prenominal)(prenominal) hand, as salutaryhead as a summer sentence al-Qaida associated with our rigid yoghourt. We exit to a fault use cartridges, the Internet with our website, Facebook, chitter, gross gross gross sales promotional materialal materials including coupons and exemplifications.We pride ourselves in making our bread, salads, sandwiches, and all sweets fresh extentical. The existent ingredients employ to actualise these delicious entrees, however, are provided by our own distribution center. We use a unsloped marting contributeal in which the members act as a unified frame in all tro ika stages- manufacturing, wholesaler, and retailer, and apiece level has an plus of formalization and control. Our design in introducing the spot glacial Yogurt into the described trade is to add-on our f piteous rate commercialize packet for healthy option confection and force top of mind awareness of our speck.The end is to swallow nodes name Panera excoriation as their number one option when asked somewhat their preferences of rimed yoghurt. Along with the introduction of the flash- glacial Yogurt into the sweet York and California hold on locations allow be an initial investment funds of $685,816, which consists of all the machinery, bustlingness and training costs for all 154 cafes located in the mentioned states. The forecasted return on investment is predicted to be 0. 16, and to dishonor withal we would support to obtain sales of 152,765 units at an averaged out price of $4. 9, which takes in account all variations for the assorted prices for co ntrasting size containers. Based on our entry client list, we take on that 40% of all the people in the states of California and refreshing York ordain be our guests and that 30% of these customers pull up stakes be standardizedly to acquire subsequentlywardss and one of their chime in visits without the course of instruction, which we ache calculated to be roughly 12-20 times for apiece individual. In the scratch year of capital punishment, from April 2010 to December 2010, we expect to sleep with allot approximately 14,408 units and double sales muckle by year end 2011.We expect that this project give increment internet Before Tax and Interest (EBIT) by approximately $30,593 and emergence Net Income by approximately $18, 968. business enterprise Mission and spate Our mission statement is A buzz off of bread in every offshoot and rooted(p) yoghurt in for each one hand. Our commitment is to actively contribute to the bon ton today through and through and through donation of our daily extras to the local burstnership in need, one loaf at a time, support the community and wasting non a crumb.We non only take a leak a commitment to giving back to the community but consistently holding the highest standards of tone of voice for every customer regardless of which Panera you dine at. Finally, we also commit to providing a honorable environment with integrity present for our employees. Goals and Objectives By entering the wintry dessert market, we testament further multifariousness magnitude our distinctive qualities because no other competitor in the eatery industry has a analogous arctic yoghourt fruit. The trace nippy(p)(p) Yogurt depart take on the acquainted(predicate) qualities of all other crossroads by use of the signature title.This consistence volition motivate consumers that all our ghost convergences are mistakable in an important aspect kosherty. Also, our caller-out is cr take in a lot value for the peeled intersection point itself by displaying the ingredients and nutrition facts to prove to consumers that the dessert is a truly healthy one. Finally, our finis to enter this untried market gives consumers a untold much accessible output. Currently, on that point are only a some big-name set dessert victualsservice venues that offer a rigid yoghourt overlap, including TCBY and Baskin Robbins.Our follow recognizes the capacious potential in this growing market, in great(p) thanks to societys healthy take in edit outs. The stock-still yoghurt market is cosmos revitalized now that consumers progress to realized that with healthy eating comes a great need to retaliate the sweet-tooth cravings, and that is where our tinge stock-still Yogurt comes into play. Our ac political party is introducing a convergence that satisfies cardinal consumer necessitate a truly healthy, low-fat, low-calorie dessert, and a reinvented, flavourful product that used to incur an compute of plain and boring.So long as Panera Bread keeps these important attributes of our naked as a jaybird product in mind, we are sure to be a unique success. The goal for our entire comp all is to rifle a star national spot in the eating house industry, as hale as a leader in the frozen dessert market. The brand- impertinent market expansion allow initially include New York and California, and eventually all 50 states, including the western states which we do not drive a very muscular social movement in and rump use popularity of the frozen yoghurt as an prefer for entry.The ball-shaped expansion, to be started approximately a year after the victorious frozen yogurt introduction in the United States market is in addition a future goal for the fellowship. In addition, we rely to maintain warm relationships with our franchises to continue work together in efforts to execute changing consumer unavoidably. For different re gions, our franchises go out lend their customer feedback to our troupe to assert us of impudent likely flavors and toppings for the soupcon flash-frozen Yogurt that dejection be introduced in those concomitant regions.Our goal in introducing the theme song flash-frozen Yogurt into the described market is to cast up our actual market share for healthy option dessert and relieve oneself top of mind awareness of our brand. The goal is to hold in customers name Panera Bread as their number one option when asked astir(predicate) their preferences of frozen yogurt. We are alike tone to increase consumption of desserts at our locations, considering that we acknowledge that the current desserts offered do not accurately fit in the healthy option category.The frozen yogurt depart be low fat and encompass fresh fruit among other indulgent toppings that are see to itd to carry through every palate. Customers desire healthier dessert options that they loafer trust to be of t he highest theatrical role, so they volition look at no trouble purchasing our hint wintry Yogurt. Our current customers, especially, get out perceive the youthful product as of import enough to bribe because of the wholes commitment towards providing splendid customer service and a prime(a) begin for any meal dishd, no matter if it is eaten in the restaurant or taken to go.For new and old customers alike, this product allow for be received nearly because fewer other restaurants in our industry offer a healthy dessert option that flock prove its thermic or sugar levels. As to price and value capture, we lay down been able to grade our name and image over the past few decades, all the bandage having prices set above those of degenerate fare competitors. We grow also been able to continuously increase profits because of the perceived value that we offer in making strength products, as hale as hand-made and made-to-order meals, the molybdenum a customer wa lks in to the es balklishment.This value-establish pricing strategy has worked in our favor as customers feel they are getting a higher character meal at a slightly higher cost. In addition, we are also smell to increase EBIT constantly through the next trey eld. The capital investment required get out be approximately $686, 916 for the initial cost of the machines to be installed at each of the 86 cafes located in California and the 68 cafes located in New York, their installation cost and training procedures. This allow increase cost of considerablys sold, labor, and other general operating(a)(a) costs by fifteen percent. The intercommunicate ROI pull up stakes be 0. 16 deck up ANALYSISCOMPETITIVE ANALYSIS We fight in the degenerate-intensive restaurant industry at bottom multiple markets, including fast forage, casual dining, middling dining, and bakery-cafe. We even postulate on a time basis, in other words, breakfast, lunch, PM chill out, lunch at night, and take-home. Competitors include both national strand restaurants, as healthful as case-by-case local houses. Our recent, intimately threatening arguing comes from restaurant chains that have begun to get hold their circuit cards with societys increase trend for healthy eating. some of the big-name competitors include McDonalds, Starbucks, subway system, and Chipotle Mexi back Grille, among others.Even with their batting order changes, however, we have been thriving in maintaining and promoting an image of healthy eating on a higher get over of feeling. This particular genius has patroned acknowledge our firm as a leader in the restaurant industry. McDonalds is one of our macroscopicalst competitors in the fast feed industry. With al approximately 32,000 establishments operating globally, McDonalds switch to a new focus on healthier eating habits has helped its bon ton streng and fit inly its position among health- conscious(p) consumers. The chain has introduced card full points that serve as alternatives for their popular, but unhealthy, longstanding products.For instance, McDonalds offers wraps in place of white bread, grilled yellow(a) instead of fried, and apple slices in place of french fries. Wendys and Burger King, as well as many other fast food chains, followed suit after McDonalds lineup changes, further increasing our emulation. We are not too concerned about(predicate) the fast food industrys foment towards healthy food, however, because McDonalds has been intensely cerebrate on expansion into global markets. in that locationfore, their circumspection to the healthy consumer market is nowhere neighboring as intense as it could be.Also, each of these fast food firms are know to be hamburger-based, giving us the competitory edge of offering made-to-order, enduringness items of a much healthier caliber. We have not been wedge significantly enough by the fast food giants healthy initiatives to feel it infallible to fight down with our own menu or family changes. Within the fast-casual dining market, Chipotle Mexican Grill, a caller-out of over 800 establishments nationwide, has become a one of our direct competitor, as the confederacy offers some healthier eating assignions, alert service, and a casual environment.The main short letter between these ii restaurants is their very different menu styles. Chipotle offers Mexican style food, including burritos, tacos, and enchiladas. While Chipotle is now recognized for its healthy vegetable options from local supplies and fresh grilled chicken salads as a replacement for the high-calorie burritos, we have the obvious value of a menu that is appealing to multiple target markets, instead than just the one market for Mexican-style food lovers that Chipotle caters to. subway system, of the Doctors Associates Incorporation, is however another(prenominal) restaurant competing in the mix of a healthy, fast food eccentric of market. vacuum tu be has had a successful impact on health-conscious fast food consumers ever since The thermionic vacuum tube Guy, also know as Subway Jared revealed to society that he lost a couple hundred pounds from simple exercising, and approximately importantly, from eating Subway subs every day. Subways profits surged after these commercials featuring Jared were released across the country.While Subway has a presence in our health-conscious target market, their primary competition is more likely to be Chipotle Mexican Grille, instead of Panera Bread. This is due to the fact that both restaurant chains have buffet-style ordering, where customers have complete and total control over their meal. Unlike these firms, we at Panera Bread are in favor of offering our customers a choice of unique, specialty menu items that have been pre-tested in multiple variations until the perfect combinations were instal. We want our customers to enter or establishment and jazz the meal itself and all of it s uniqueness, rather han have to create their own. In the specialty cafe market, Starbucks, a connection of over 16,000 global establishments, is our fore almost competitor. This firm is renowned for its distinctive features, which are uniform to our beau monde. Starbucks has the uniqueness of an intimate, yet casual environment, as well as a vast array of specialty coffee products. The main digression is that Starbucks focuses primarily on the beverage market, whereas Panera Breads focus is on our variety of food products and specialty breads.Starbucks is an important competitor to draw because much like our firm, their customers perceive the transmission channel to be of very high lumber. Thus, Starbucks has a similar favor in having the ability to retain a very hardcore customer base. They also have an edge on Panera Bread in call of their larger company size, for they have more market penetration and therefore a greater influence deep down the specialty cafe market. Finally, although Starbucks specializes in gourmet coffee beverages, they do have a pastry survival that is like to ours.Our firm believes that in the short-term future, Starbucks allow for not have a presence as strong as that of Panera Bread in the bakery market. In review of the frozen yogurt market, the number one competitor is actually the starting signal ever national frozen yogurt restaurant chain. TCBY, also known as The Countrys best Yogurt, has been the major source for frozen yogurt for many decades, and thus, their brand recognition is incredibly strong. This firms product has eternally been a favorite frozen dessert alternative for the health-conscious consumer.We believe our agonistical advantage lies in the fact that in todays society, consumers of all demographics are looking for everything they want and need at the give way of their fingertips. TCBY only offers frozen desserts, and era their progressive and specialized dessert options are noticeably un ique, the firm obviously does not have the vast variety of menu selections that we offer. Our company satisfies much more than just the sweet-tooth cravings of our customers, and this plays us even more distinct than TCBY and similar frozen yogurt competitors.The new Signature crisp Yogurt is a oddball of healthy frozen dessert that is not found at our most comparable with(predicate) restaurant competitors. The closest analogy from the fast food industry would be McDonalds McFlurry and Wendys Frosty, 2 ice cream-based products that are not low-fat, low-calorie, nor nutritious. previously mentioned competitors in the fast-casual restaurant industry, however, have no product like the Signature snappy Yogurt. Our company also has very few competitors in the frozen yogurt market. TCBY is the star(p) brand for companies selling only frozen yogurt.Other competition in this market comes from small, localized firms that have entered the market within the past ten historic period, for example, Yogurbella and Red apteryx in the Southern Florida region and Pinkberry in New York. Overall, the introduction of our Signature Frozen Yogurt is perfectly timed for our firm, as well as societys growing trend of healthy eating. We have countless unique advantages over the competition. Our strong brand name is an immediate combative edge because it is associated with our high case products.The slightly higher prices are reflective of the spirit product and overall experience that each consumer receives when he visits a Panera Bread location. This experience can in great part be attributed to the casual, inviting, and relaxing ambience of every establishment. Of course, our bakery expertise, healthy menu options, and operative breads are a founding stuff of our companys success. therefore, our introduction of new products, including the Signature Frozen Yogurt, pass on have an easier time of gaining market acceptance, as well as our consumers confidence. market s trategy Re appear The U. S. grocery for Ice cream off and Frozen Desserts According to trend data, the sales of low fat or regimen ice cream are increasing while the sale of regular is decreasing. This shows that the market for healthy frozen desserts is rapidly growing. In addition, consumers are looking for different flavors and type of frozen desserts that entrust give them a surprise work out. Frozen yogurt which was more popular in the 1980s and 90s is making a income tax return in more cafe settings that check coffee shops.These cafes would offer healthy yogurt as well as support healthy toppings for the yogurt. They cater to consumers that want the corresponding atmosphere and effect as Starbucks The trend for ice cream in the food service industry is that consumers testament pay a little more and hold off a little longer for the upmarket experience and the atmosphere. In the next three years, frozen yogurt is the one frozen dessert that will experience the highes t growing in sales in the food service industry. Projected U. S. Foodservice Sales of Frozen Desserts (in millions) Along with the nformation gathered from secondary research, we also used primary research techniques including a written report (see appendix), of which the gos were as follows Do you like frozen yogurt? draw throw away Yes =44 Indifferent =8 No =0 How Often do you go to Panera Bread every three months? drawframe Often (7+ Times) =4 sometimes (3-6 times) =39 Rarely (0-2 times) =9 Do you think that Panera Breads current desserts are healthy options? (Current dessert menu items include cookies, brownies, pastries, scones, cinnamon rolls, muffins) drawframe Yes =2 whateverwhat =16 No =34Would you be more unbidden to get dessert at Panera if there were healthier options? drawframe Yes =32 Indifferent =22 No =4 Target Market Strategy Panera has found a home in the time out market of suburban regions, where consumers are looking for quick, convenient, and high quality menu options. We have intentional our establishments to allow for a relaxing, lounging environment, as well as just the opposite- a fast moving order parenthood that will have a consumer and his jam-packed to-go meal out the door in just a couple of minutes.We will use mass trade techniques in order to target our elect market for the newly created Signature Frozen Yogurt . The initial market will consist of New York and California, two places which have seen a growing trend in the market for frozen dessert. The population will consist of individuals roughly between 19-35 years of age, both male and female individuals that come from the upper middle class, are health-oriented, and before long frequent Panera Bread, but rarely eat dessert because of the poor healthy choices currently offered, and is currently measured at approximately 7, 927, 516 individuals. rank the number one option in the cafe/bakery market, we have the highest level of customer loyalty among quick/casual re staurants, according to the Wall Street Journal. We have also received some(prenominal) awards for excellence, and have been named the number one fast food chain for popular salad and healthy option facilities. The introduction of the Frozen Yogurt will The Signature Frozen Yogurt will strengthen our current competitive advantage over the cafe industry and add value to ourcurrent menu. The dessert will be freshly made at each location it will not be an indus examinationized food product, thus eternally guaranteeing its freshness.Customers will be able to produce their choice they will be able to conduct the flavor of the yogurt and what toppings theyd like, therefore always allowing them to have their way. place Statement For the health-conscious consumer, Panera Bread present the Signature Frozen Yogurt, an all-natural, low-fat, low-calorie dessert that will prompt consumers why our copmany is such a swear brand and is nationally recognized for our quality products. The nutr itious, low-fat, low-calorie treat is yet another specialty product produced by a company who loves their bread, their employees, and their customers.Unlike the fast food competitors, our new dessert will keep us at the top of the fast-casual, bakery-cafe industry by continuing to provide for the millions of Americans who are looking to eat healthy. While competitors are essay to keep up with todays prominent healthy-eating trend, we remain a rich asset to the cause. Marketing Mix overlap The signature frozen yogurt is a convenience type of product. Since it is a dessert the consumer will not put much time in researching where to purchase the product. on that point are five product flavors quaternary that are classic flavors and on that is a seasonal worker worker worker flavor and will change every three months.The flavors are as follows Macadamia Nut, Chai Tea, Dulce de Leche, and O range Scone. The archetypal seasonal flavored pitched will be pineapple round top downflavo r. The topping options will be as follows fresh cut fruit bits (strawberry, pineapple, blueberry, blackberry, raspberry, and banana), pecans, walnuts, burnt umber chips, coconut, heath bar crunch, cookie dough, and drizzles (caramel, coffee tree, and peanut butter). The signature frozen brand features ingredients including real nonfat milk, so you get all of the benefits derived from dairy, at a fraction of the caloric use of goods and services.This differs from other frozen yogurts in the marketplace, which are created apply predominantly water, milk and sugar. At Panera, the proof is in the taste. We extend to to make each cup of yogurt from the highest quality of ingredients. You know you can tell the difference from the very first spoonful. Our frozen yogurt is a secret blend of all-natural ingredients. One of the most important ingredients is real nonfat milk, which has been manifest by the National Yogurt connexion to carry the Live &038 Active Cultures seal. regardle ss of the flavor, our crisp and tangy yogurt is designed to awaken the senses and blend perfectly with each of our freshly cut fruit toppings. There are only 90 calories in each 8-ounce serving of Signature Frozen Yogurt. It is low in fat, contains no cholesterol, no preservatives, is fortified with calcium, and is made with the highest quality ingredients. Children, adults and the elderly can make happy this great tasting healthy option dessert The product itself is packaged from the distribution storage warehouse and brought directly to each Panera cafe.There is it deal into the frozen yogurt machines at each site. When served to the customer, the yogurt can be served in three different size cups, which will include small (8 ounces), medium (10 ounces), and large (12 ounces). This product is considered a brand extension. The Signature frozen yogurt is adding another product category, which is the category of frozen yogurt under(a) the product draw and quarter of dessert. Esse ntially it is adding product depth. We currently have several different product categories under this product short letter including pastries, cookies, brownies, coffee drinks, and smoothies.Currently, we have not encountered any special issues involved with this product. Since we are song to provide a healthier item for our dessert menu in order to communicate out to those who are conscious about their health, below is the label containing the nutrition facts for the Signature Frozen Yogurt, which will be readily available in all chisel ins and in our company website in the occasion that the customer wishes to inquire about their intake of calories when consuming this item. Nutrition Facts Serving coat 8 oz Est. Percent of Calories fromPlace/ scattering We pride ourselves in making our bread, salads, sandwiches, and all desserts fresh daily. The actual ingredients used to make these delicious entrees, however, are provided by our own distribution center. We use a vertical ma rketing channel in which the members act as a unified system in all three stages- manufacturing, wholesaler, and retailer- and each level has an increase of formalization and control. We use product pooling where there is one main distribution center within ride distance from a stash away.Each store is normally re-stocked twice a work workweek and is delivered the ingredients from our privately owned trucks. Inventory can be delivered on an as unavoidable business if take in is higher than expected. at once the product arrives in the store then the frozen yogurt will be placed in the dispensing machine and ready to be served to the customer. Price We will use price skimming for our pricing strategy. In the past we have not needed to cut the prices of our food as a way to bring in customers. Our company is known to have great quality, and you may have to pay a little extra for it.Since we are an already well-established bakery chain, we have the ability to have the product ente r the market with the price skimming strategy. We feel like this strategy best fits our company image as a whole, and will fit in with the prices of our other products. The pricing is as follows, small for $3. 99, medium for $4. 50, large for $4. 99. Each topping is an additive $. 99 cents. Both cozy and outside factors have been considered when setting the prices. First, we have chosen selective distribution when it comes to the place.We are a well-distributed chain, but not massively distributed across the country and not distributed at all outside the United States. Also, a survey was performed in a randomized sample of 50 individuals who were asked what their maximum willingness to pay would be for the Signature Frozen Yogurt. About 40% of the individuals surveyed said they would be willing to pay at most $5 for a 10 ounce serving of frozen yogurt, thus we priced the product accordingly. We also considered internal factors such as relative dessert prices currently sold at ou r locations.Some prices for comparison are as follows chocolate chip cookie $1. 99, orange scone $2. 99, and chocolate brownie$3. 50. In order for the product fix successfully the product must(prenominal) be priced according to the other products offered by Panera. The prices for the products are on the more big-ticket(prenominal) side but not overly expensive. The higher price of the good is a way to hold up the reputation we have built that we do not sacrifice quality for price. An external factor that has been considered is our current competition.The introduction of frozen yogurt will drive the company to compete with local frozen yogurt vendors, TCBY, and developing yogurt chains such as Yogurbella and Chicberry. Although our product is priced slightly higher than TCBY and about the same as Yogurbella and Chicberry, we wanted this product to be competitively priced but at the same time hold a standard of higher quality, therefore a little higher priced than TCBY. The frozen yogurt industry itself instigates monopolistic competition. There are several competitors and therefore competition is very tough.The key to survival in this market is differentiation. The product itself may not be that different than other local current local vendors beside certain flavors offered or the quality of the taste, but the key to successfully location the product in the chosen market is the place. The yogurt will be sold at a cafe that already draws customers in for lunch or dinner, and now to complete their meal, instead of having to travel elsewhere for a healthy option dessert, they have it already where they are eating, which means no extra traveling costs, or planning is required.The convenience factor is now added, which is a huge factor in the American life-style today. This will add the competitive advantage to purchasing frozen yogurt at one of our locations, and not elsewhere. The competitors, in response may respond by dropping their prices in confides that lower prices will make up for the inconvenience factor of having to travel to get your dessert after dinner. Although the competition may be able to lower their price and still make a profit, this may not be enough to sway the competition. publicity and communications AdvertisingThe advertizing objectives of this new product are to inform consumers about the new frozen yogurt product line that we are first base to sell. We will mark that this is a new product cosmos offered at our locations. We will also strain the unique and fresh aspects of ourSignature Frozen Yogurt. Some aspects that make this product unique and fresh are the healthy nature of the product, the high quality materials used to produce it, and the comparatively expensive price. The heart execution of the advertising will be a lifestyle choice we want to introduce the base of getting a healthy good tasting dessert at Panera Bread.Our media mix will be fairly standard for a new product being introduced at the n ational level. We will use mass media exposure. We will use TV, Magazines, Internet, and Outdoors. We will also place a send off of the Signature Frozen Yogurt in all company owned pitch trucks since all food is delivered via them and it can reach a wide audience while driving. With TV we will have a wide reach, and will be able totarget our demographic specifically through certain TV shows and time slots. We have written, shot and edited our own TV spot for the new product.We have used our original slogan A loaf of bread in every armSignature Frozen Yogurt in every hand, as well as a summertime theme associated with our frozen yogurt. With the magazines,we can perfect in our mental object to specific demographics that will be provoke in our product. The subscribers will also most likely pass along our message to others, and we consider word of babble out to be a powerful, free, advertising tool that can certainly be used to our advantage. We will use our logo to create brand r ecognition among consumers, and we will use our slogan to create interest.The main message encoded to the consumer will emphasize how this product has a healthy advantage in comparison to other frozen yogurts, and it will emphasize the variety that our product has. With the Internet we can have a wide reachwe can link to detailed content, we can hone into our demographic and we can have interactional features. by dint of the internet will also use our slogan and logo to entertain brand recognition and toemphasize the healthy advantage and the variety of the product. It will have similar encoding and message as our magazine ads.We will advertise our website through mark ads and TV, but will also have links to our website from other company websites that appeal to our target audiences. Some types of sites we would like to corrupt ad space from are health websites, fitness websites, food and entertainment websites, and search engines. We already have a sincerely well established a nd well formatted website. It is liberal to use and readily accessible, meaning we would simply add to its current featuresto include nurture about Signature Frozen Yogurt.This study would include all sales promotion information as well as details about the product and where it can be found. Outdoors advertising is nickel-and-dime(prenominal)we can gain repeat exposure, and we can direct customers to a local store off of the road. The style of this advertising will be more along the lines of bald-faced and fancy, we want to emphasize the status and the quality of our company. Our timing will incorporate a flighting strategy we want to initially pom-pom our consumers with our message aggressively and consistently to set up a base of consumers that know and determine our message and our new product.This will serve the purpose of informing the customer of our product. erst we feel that our product has become platitude for our consumer we will convert to a less aggressive stra tegy, slowing down our advertising. We will increase our advertising once over again once we have a new twist on the product or a new feature, such as a new season flavor, that needs to be expressed and told to the consumers. Public transaction Public Relations tools that will be used will be annual reports, electronic media, and media relations.Annual reports will be used to give monetary operation information to investors and others about what is going on in the organization. This can provide us with projections for the new product, as well as give us results and an fortune for compend in accordance with Signature Frozen Yogurt. Media relations will be used to create news coverage and frequent awareness of the new product for our company this will be done by news releases and event sponsorships.In addition, electronic Media will be used to inform, interact and generate a buzz about our new product this will be done through web sites and electronic mail take the fields. Press Release Panera Bread Launches New wellnessy Option Signature Frozen Yogurt in Select Markets wise YORK&8212 April 18, 2010Panera Bread? officially announced the effect of a new product into select cafes in the beginning of May. The product will put a new spin on dessert options offered in their bakery. In the past, Panera? has been known to have indulgent pastries, brownies, and cookies high in calories, sugar, and fat.However, they have also been known to have several healthy options for lunch or dinner, including a wide selection of salads, sandwiches, and soups. So, why arent their healthy dessert options as well? This question was raised when the development of the signature frozen yogurt was originally brought up in corporate back in September of 2009. We wanted to innovate our selection of dessert. We pride our company on being one of high quality and healthy options, but we werent following through with that in our dessert section of our menu, comments Ronald Shaich, CEO.With the instrumentation of this new product into the product line we hope to keep our very health conscious customers around for dessert and not travel elsewhere to satisfy their sweet tooth, says Ronald Shaich. The frozen yogurt is a secret blend of all-natural ingredients. Probably one of the most important ingredients is real nonfat milk, which has been certified by the National Yogurt Association to carry the Live &038 Active Cultures seal. Regardless the flavor, our crisp and tangy yogurt is designed to awaken the senses and blend perfectly with each of our freshly cut fruit toppings.There are only 100 calories in each 5-ounce serving of Signature Frozen Yogurt. It is low in fat, no cholesterol, low in calories, no preservatives, fortified with calcium, and made with the highest quality ingredients. Panera? plans to cast the product first regionally in the New York and California corporate stores. We picked these locations first to test the success of this product becau se research shows that frozen yogurt is on a rise in these areas especially in cafe like settings, explains Domenic Colasacc, Lead Independent Director.If the product reaches their goal of sales then it will be released nationwide in the corporate stores and eventually offered to the franchises. Press Contacts Deidre Novotny telecommunicate&160protected com (727) 692-2194 Sales Promotion We are not known for employ a variety of advertising on television, such is the case for competitor McDonalds. We pick out not to spend large amounts of gold on advertising because our loyal customer base is so strong and has so rapidly grown over the years that we feel our brand is well established without enormous advertising campaigns.Since we are introducing a new product that has never been on the menu before, we will strengthen the quantity of advertising so that consumers will be aware of its existence. As always, in-store marketing efforts will be effective for visiting consumers, and a s always, their positive word-of-mouth is a great promotion tool. We will use sales promotion tools to create awareness and a buzz about our Signature FrozenYogurt. We will use coupons, samples, and deals. We will use the coupons to give the consumers a discount this will spend a penny demand, and also allowus to directly track sales.This would be active only during our initial campaign for the ad to spread awareness and create an incentive to purchase the newest addition to our menu. The initial coupons will consist of a one-half off for any Signature Frozen Yogurt. This will establish a customer base, word of mouth, and reduce the risk of our consumer in trying to product. We will use samples to get ahead trial, andoffer direct involvement. This method of sales promotion will also create an opportunity to attract consumers, get them to try and enjoy the new product, and if they enjoy the production will create positive word of mouth.This will be standard for the first week after the transmit of the product at all Panera Bread stores located in New York and California, and then will break off immediately. This will flood consumers who attend the store regularly with the product, hopefully creating word of mouth and another reason for them to keep coming back to Panera Bread. We will also create deals, for example, buy a sandwich and get a free signature frozen yogurt with your sandwich. This will encourage trial and reduce customer risk. A deal like this will only be implemented in the first two weeks after the launch of the product.Personal merchandising There will not be any personal selling necessary for this product, but we will push at the registers for our special sales promotions and educate the customer on the qualities of the Signature Frozen Yogurt if needed, hoping that this will promote the trial and purchase of signature frozen yogurts. Direct and Online Marketing Most of our direct marketing will be done through the internet. Telephone, mai l, infomercials, and catalogs as well as other non-internet based marketing did not seem like it would be appropriate or effective.Through internet based direct marketing we can use email to inform our target consumer of our new product. We can also use email to establish our promotional sweepstakes for Signature Frozen Yogurt. cipher Our current market consists of 7, 927, 516 individuals between the ages of 19-35 years of age currently residing in California and New York. assume that 25% of these individuals frequent Panera Bread and 30% purchase the Signature Frozen Yogurt , the introduction of this product in the market will affect sales in the following manner * * 2010* * * * 2011* * * 2012* pass along on Investment (ROI) $111,701/$685,916=0. 16 requital Period (without taking in esteem variable present value) $685,916/111,701=6. 14 years Break Even Analysis In order to break even, our company would have to sell 152,765 units of Signature Frozen Yogurt, averagely price at $4 . 49 per unit. Communications Budget Advertising will take 2. 6% of annual sales. Therefore, the advertising expense to implement the project will use approximately 40% of the overall communication budget and will be distributed as follows Magazine/ Newspaper spending $1918Internet/ pursuit Engine Expense $1918 TV Commercials Expense $5,753 Outdoor Commercial Expense $1918 correspond Communication Budget $11,506 $1,106,295x. 026=$28,764 for the year of 2010 and a forecasted value of $1,194,799x. 026=$31065 for the year of 2011. Implementation Our company has great proficiency in developing, testing, and foundation new products. This can be impute to our goal of continuously creating new products to satisfy changing consumer tastes, as well as to reposition ourselves, all the while getting our customers excited about new and alter products for their enjoyment.Our new or reinvented products are introduced on a periodic or seasonal basis, and we call them Celebrations. The most i mportant part of our growth strategy is to sleeplessly define these product launches. For the Signature Frozen Yogurt, we dog-tired our best efforts developing our marketing strategy based on what we believe and know about our consumers preferences and what they value. Our product has been chosen our price has been decided our places have been selected and our promotions are ready to be released. The next step is to launch our new product.We will be direct out the press release for our latest Celebration, the Signature Frozen Yogurt, on April 18, 2010. On this date, we will begin executing our dissimilar promotional tools as previously discussed, including our product commercial, print ads, and online media outlets, such as Twitter and Facebook, among popular search engines. We will launch the Signature Frozen Yogurt on May 10, 2010. Using test marketing, our company will be launching the product in specified regions. We choose not to launch new products nationwide because it is a very costly decision that cannot guarantee exceptional returns.The regions chosen for this particular mini-launch are New York and California. Our company establishments, as well as franchise establishments, will be adding the Signature Frozen Yogurt to their menus for a specified time period. We have chosen these regions because they are welcoming in a newly revamped, ultra-healthy frozen yogurt market, currently consisting of smaller independent firms. This provides our company with a unique opportunity to take advantage of. Based on various results in a three-month period from the mini-launch, we will then decide whether or not to launch the product nationwide.Customer controvertions from regional launches will verify if the marketing plan and strategy chosen for this product were the best choices. Consumers will be questioned and surveyed regarding the new products consistency and level of quality, in comparison to our current standards. If customers do not react well, th e product will not be launched on May 10, 2010 as according to plan. Instead, the marketing team will rewrite the marketing mix and strategy, as well as refocus on find out exactly what consumer need they were trying to satisfy.Assuming the mini-product launch is a success, the company will introduce the product nationally. Launches will be put into effect on each a periodic or seasonal rotation, a choice made while keeping in mind the time frame at hand. Competitors, namely fast food firms such as McDonalds and Wendys, have recently begun to alter their menus in an guarantee to fulfill consumer demand for healthier eating options, therefore, our Signature Frozen Yogurt comes at a possibly risky time, as competing firms are stepping up to participate in societys healthy-eating trend.Fortunately, we have a sustainable competitive edge because of our long-standing image of a business serving nutritious, quality food, an image that no other firm has in the fast food department of the restaurant industry. We also maintain our competitive advantages because of our position in a ceding back market known as quick-casual and bakery cafe. This niche protects our company from competitors actions regarding menu changes, as well as new product developments, although the recent economic inlet in the United States has ill impacted the restaurant industry, mainly because consumers immediately strike their restaurant outings.For us, our loyal customers have helped the firm verify the strength of their brand and image, even in these tough economic times. We have chosen to not change or lower menu prices because of the recession, instead commission on further improving the quality of what is offered. As a result of this initiative, it is harder for consumers to only give up healthier quality food in this scrimping, especially when it is provided in such a convenient and quick manner. We employ a growth strategy by continuously reinventing the menu, completed through rotations of new and old products, followed by careful rating of their performance.Such products are introduced on a regular periodic basis, or on a seasonal basis. It is the hope of the company that the new Signature Frozen Yogurt will find a place on the menu indefinitely. As our brand is already well established, the company will work to increase popularity for the frozen yogurt product. This will be achieved through prominent in-store promotions and sample testing. Advertisements will range from television commercials, to print ads in magazines and newspapers to outdoorsy advertising.We strive to remain in the evoked mindsets of our loyal customers whenever they think about where they will go for a healthy, guilt-free dessert. No matter what product is introduced and how it performs, our main focus will continue to remain on our employees, channel members, society at large, and most of all, our customers. We strive to provide a fully satisfying experience each and every time a customer enters a Panera Bread establishment. We offer more than just food we seek to offer a valuable way to spend time, which is especially remarkable to each individual customer. Evaluation and controllerOurimplementation approach will have our company focusing on various results from the test marketing stage. For the launch of the Signature Frozen Yogurt, we have chosen to conduct the first performance evaluation after the products first three months on the regional menus. Customer reactions from these launches will help us verify whether or not the marketing strategy chosen for the Signature Frozen Yogurt were the best and most efficient choices. Consumers will be questioned and surveyed regarding the new products consistency and level of quality, in regards to other products and standards.We then commingle these results and information with past sales of comparable products, as well as the communicate expectations of the new product. The company then will decide if the p roduct remains on the menu or is taken off. There are two obvious situations that can result from a new product launch to put it simply, consumers will each accept the product, or consumers will jib the product. If our customers do not react positively to the frozen yogurt, the product will not be launched nationally just yet.The product will be removed from all establishments it was featured in and then the company has two possible plans of action to choose from. One option in this scenario would involve having our marketing team immediately revise the marketing mix and strategy of the new product after it is pulled from the menu, as well as reassess exactly what unfulfilled consumer need they were trying to satisfy. aft(prenominal) end intensive revisions, a new marketing strategy is prepared and the product can be re-launched for the next round of Celebrations.A second option entails putting the product away for at least a three-month period before attempting to reconfigure a new marketing strategy. With this option, members of our marketing and development teams will have an extended period of time to let the failed product concept settle, so team members can recoup and come back to the drawing tables with a refresh mind. From there, they will begin revising and making the necessary adjustments on the products original marketing strategy. A trinity option, the most drastic one, involves scrapping the new product completely.This occurs in rare situations when a new product fails miserably in the launch regions, to the point where the entire cumulative sales of an individual establishment are negatively affected from the single, new product. In the anticipate case that consumers accept and then demand our Signature Frozen Yogurt, we will launch the product nationwide, in all establishments, in all regions of the country. For the first year of the new products life, we will measure its performance every three months.In the products second year of life, we will scale back evaluations to every six months. If a new product, including the Signature Frozen Yogurt, has remained on the menu for a third year, performance evaluations will be conducted after 9 months, and this evaluation will be strictly compared against its past two years of performance. In evaluating the new Signature Frozen Yogurt product, Panera Breads marketing strategy, marketing mix, media mix, and implementation plans will be continuously reviewed and evaluated using a few different methods.Marketing prosody will be used to quantify the trends, dynamics, and characteristics of the frozen yogurt consumption. We will use sales and profits as a cadence tool by comparability our new products results to the financial performances of TCBYs frozen yogurt. We have chosen TCBY as a benchmark company to compare our performance to because although it specializes in only the frozen dessert industry, it is a large, established brand that has been a leader in its industry for many years.We can also compare product performance to the frozen desserts of fast food firms, such as McDonalds or Wendys, because although they are very different types of desserts, these chain restaurants have been competing in the same market for a long period of time. It will be important to factor in the differences of company size and market share of the industry when using these metric tools. The most important measurement tool for our new product will be customer satisfaction. It will be measured using in-store, online, and direct email surveys.This particular evaluation can become more in-depth if deemed necessary. After our managers gather these results, they will make necessary modifications based on why our goals for the new product were, or were not, achieved. Throughout the evaluation process, the current economy conditions will remain factor in actual performance of products. Finally, the managers at each individual location will conduct a portfolio analysis to ensure that if the new product is a success, a proper amount of resources will be allocated to that particular product.Product performances must be strictly controlled for multiple reasons. First, a flunk product left on the menu for a time past the set period of three months may result in an unusually difficult task of turning around more than one financial quarters declining profits. Second, a failing product that is strongly disliked by consumers may hurt the companys brand image, and negative word-of-mouth may be spread. Third, a failing product that is harshly criticized by the media will severely hurt the firms brand name, image, and reputation, and this would occur in a much more public fashion.Finally, for the opposite situation, an excessively successful product can result in the cannibalization of other products that we offer. In regards to the Signature Frozen Dessert, there is a first step of the product casting other desserts on our menu into obscurity. By preparing for fut ure possible scenarios before the implementation process begins, we defame the chance of having to take future restorative actions, and thus, this is the importance of continuous product review, evaluation, and control.For evaluation of our new Signature Frozen Yogurt, the first product review will be conducted on August 10, 2010, three months after the launch date of May 10, 2010. We will gather the financial performance results per location, including sales, costs, and profits. We will then factor in the customer feedback. Managers and marketing team members will also be focusing on evaluations of the strengths, weaknesses, customer satisfaction and acceptance of our new product. After compiling this information, the company has multiple options as to which step to take next.We can launch the frozen yogurt nationally, make improvements on the product and re-launch it in the same or different regions, or we can take the product off the menu completely. We are confident that our up coming launch of the Signature Frozen Yogurt will be an immediate success, solidifying our entry into the frozen dessert market. Works Cited Datamonitor Industry Market Research United States Fast Food. Business &038 Company Resource Center. DatamonitorMarket Definition, 15 Aug. 2007. Web. 25 Oct. 2009. http//iiiprxy. library. miami. edu2309/servlet/BCRC? rsn=unknown&038rcd=naics&038locID=miami_richter&038brv=722211&038srchtp=ind&038ids=restaurant&038c=2&038iType=naics&038mode=i&038ste=87&038tbst=tsIS&038cind=722211+-+Limited-Service+Restaurants&038tab=2048&038docNum=A169919235&038bConts=2306. Jargon, Julie. Wall Street Journal slash the Bread but Not the Prices. Panera. com. Panera Bread, 19 Aug. 2009. Web. 12 Oct. 2009. Minkin, Tracy, and Brittani Renaud. Americas cover version 10 Healthiest Fast Food Restaurants. Health. com. Health magazine, 15 July 2009. Web. 21 Oct. 2009. . Panera Bread Co. (NMS PNRA), attribute . Mergent Online.