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CASE 5.1 PANERA BREAD: Occupying a Favourable Position in a Highly Competitive Industry Anthony MA1N0231 Liisi 0A10F001
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Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

Mar 30, 2015

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Page 1: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

CASE 5.1 PANERA BREAD: Occupying a Favourable Position in a Highly Competitive Industry

Anthony MA1N0231Liisi 0A10F001

Page 2: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

PROGRAM

Panera bread – history Panera bread today - products The future Discussion questions

Page 3: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

PANERA BREAD - HISTORY

Au Bon Pain Co. 1981 + Saint Louis Bread Company (mid-

1990s) 2008, sales +23% ($941 mln) 2003 – 602 units 2008 – 1270 units 2012 – 1591 units

Page 4: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

PANERA BREAD TODAY - PRODUCTS

Page 5: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

THE FUTURE

Fast Casual category Leading national brand

Positioning strategy Signature foods Savvy execution

Page 6: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

DISCUSSION QUESTIONS – 1

How has Panera Bread established a unique position in the restaurant industry?

How has this unique position contributed to its success?

Page 7: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

DISCUSSION QUESTIONS – 1

Good timing Fast + casual (positioning) Customers needs Speciality foods

Window catching -> success

Page 8: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

THE RESTAURANT INDUSTRY

Page 9: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

DISCUSSION QUESTIONS - 2

Analyze the restaurant industry using Porter’s five forces model. In what ways has Panera Bread successfully positioned itself against the forces that are suppressing the profitability of the restaurant industry as a whole?

Page 10: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

PORTER’S FORCES

Competitive

Rivalry within an Industry

Bargaining

Power of Supplier

s

Bargaining Power

of Customer

s

Threat of New

Entrants

Threat of Substitut

e Products

Page 11: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

PANERA BREAD’S FORCES

Pioneer

Bakery,

artisan.

Healthy Menu

Brand’s recogniti

on

Fast-Food

Casual Dining

Page 12: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

DISCUSSION QUESTIONS – 3

What barriers to entry has Panera Bread created for potential competitors? How significant are those barriers?

Page 13: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

•BRAND’S RECOGNITION: • PANERA BREAD =

FAST CASUAL• ARTISANAL BAKERY• HEALTHY FOOD

•PIONEER’S PRESTIGE•20YEARS OF EXPERIENCE

•1,591 UNITS IN US

Page 14: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

DISCUSSION QUESTIONS – 4

What are Panera Bread’s primary sources of competitive advantage? In your judgement, are these sources of advantage sustainable? Why or why not?

Page 15: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

•BRAND’S RECOGNITION: • PANERA BREAD =

FAST CASUAL• ARTISANAL BAKERY• HEALTHY FOOD

•PIONEER’S PRESTIGE•20YEARS OF EXPERIENCE

•1,591 UNITS IN US

Page 16: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

DISCUSSION QUESION – 1B

Do you think Panera Bread will reach its goal of becoming a leading national brand in the restaurant industry? Why or why not?

Page 17: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

APPLEBEE’S

MCDONALD’S

Page 18: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.
Page 19: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

APPLICATION QUESTIONS - 1

What are the ways that Panera Bread can conduct ethical and proper forms of competitive analysis to learn about potential competitors entering the fast-casual category?

Page 20: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

COMPETITOR ARRAY – “MARKET”Key Industry Success Factors

Weighting

Competitor #1 rating

Competitor #1 weighted

Competitor #2 rating

Competitor #2 weighted

Panera Bread

Extensive Distribution

0.4 6 2.4 3 1.2

Customer focus

0.3 4 1.2 5 1.5

Economies of scale

0.2 3 0.6 3 0.6

Product innovation

0.1 7 0.7 4 0.4

Total 1.0 20 4.9 15 3.7

Page 21: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

COMPETITOR PROFILING Background

key personalities, location of offices, etc… Financials

Method of growth, Liquidity, etc… Products

Brand loyalty, New products developed, patents, etc… Marketing

4P’s Facilities

Plant capacity, shipping logistics, etc… Personnel

Number of employees, management style, etc… Corporate and Marketing strategies

Objectives, growth plan, etc…

Page 22: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

APPLICATION QUESTIONS - 2

Think at least two other businesses that have established unique positions in their industries. How have their unique positions contributed to their success?

Page 23: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

STARBUCKS

Products Service Feeling special

Page 24: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

APPLE - IPHONE

1st Smartphone Leader now

User friendly

Steve Jobs

Page 25: Anthony MA1N0231 Liisi 0A10F001. Panera bread – history Panera bread today - products The future Discussion questions.

THANK YOU!