It is not unusual to see marketing strategies and distinct marketing ploys that are extremely provocative to the consumer, to the point of when they consider declining the order to be nearly impossible. The case of Panera’s coffee subscription offer is similar. Although, what the consumer must always keep in mind, is that at the heart of any company’s economic power lies a desire to increase their profit.
The practice of advertising offers akin to Panera’s is ubiquitous these days. The reason for this being the fact that coffee market has become extremely competitive in the recent decade, since coffee is a main energy-boosting solution for many people working and living in the hectic city lifestyle. Caffeine allows people to keep their energy levels high and become more focused, which is the perfect effect for people leading a busy city lifestyle.
Panera, being a bakery, is closely related to the coffee market, and their exclusive deal for monthly subscription certainly does affect it. Although the customer is aware that “unlimited” coffee is not really unlimited, the offer still seems to be beneficial, because rationally, $8.99 is significantly less than the amount an average consumer spends on their daily coffee breaks. With this marketing move, Panera does not only attract new customers, but also shifts its business model, as the “world is moving from products to services” (Tzuo and Gabe 2). Personally, if I were their regular client, I would subscribe to the Unlimited Coffee for $8.99, because it is mutually profitable. With the help of this new service-based offer, the company establishes itself on an adjacent market, another niche they can compete in, while also attracting not just new, but recurrent customers, since the subscription is monthly.
Work Cited
Tzuo, Tien and Gabe Weisert. Subscribed: Why the Subscription Model Will Be Your Company’s Future – and What to Do About It. Penguin, 2018.