The PANERA BREAD COMPANY
Tuesday 3rd November 2009
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BORREWATER Hubert 2090344 French Iéseg (Lille, FR) Hubert.firstname.lastname@example.org
The Panera Bread company is a bakery-cafés implanted in the united states which is specialized in fresh-doughartisan bakery and quick-service menu selection. The Panera Bread company prizes the high quality of its product and tries to create a very warming and welcoming place where people can feel at home. It has been established in 1981 by Louis Kane and Ronald Shaich. Firstly called Au Bon Pain Company and implemented in the malls, shopping centres and airports all along the East Coast. They have thenpurchased the Saint-Louis Bread Company and the company has been renamed the Panera Bread Company. Nowadays, The Panera Bread company has more than 1,300 bakery-cafés located in 40 states of the US and in Canada. The Panera Bread Company operates with a system of franchises. Franchises represent 58% of the bakery-cafés.
What is Panera Bread’s strategy? Which of the five genericcompetitive strategies discussed in Chapter 5 most closely fit the competitive approach that Panera Bread is taking? What type of competitive advantage is Panera Bread trying to achieve?
The strategy of the Panera Bread Company is to “make great bread broadly available to consumers across the United States.” Make ‘great Bread’ has been performed through fresh-dough artisan bakery. In order to achieve this,they use the best ingredients to make the dough and they train their bakers craft. Make it ‘Broadly available to consumers across the United States’ is achieved firstly with the number of locations all over the United States (more than 1,300 – see the introduction), but also by offering high-quality products at reasonable prices.
The Panera bread company is, like we said before, willing tooffer their products to the most customers as possible. This why the competitive strategies can’t be neither Focused low-cost strategy nor Focused differentiation strategy because they are not concentrated on a narrow buyer segment. Is the Panera Bread Company leading a low-cost strategy or a differentiation strategy? It is obvious that the Panera Bread Company is not a low-cost bakery-cafés, theirprocess of making bread avoid setting low prices. They don’t give customers value for their money. So let’s check if the Panera Bread Company has a broad differentiation strategy.
First of all, the market of the commercial eating place is a complex market in term of needs and preferences. That’s why standardized product can’t survive in it. The Panera Bread Company has a very diversifiedvarieties of bread (20-plus) and a large range of meal, drinks... This point helps them to gain buyer loyalty. Indeed, the buyer who will come back several times a year, a month or a week will always find new products to taste and will be able to vary his meal each time. The Panera Bread Company offers to customers a large range of products which have a unique taste and an artisanal process ofmanufacturing, a very nice place to have a dinner through a very warming and welcoming atmosphere. Moreover,
the Panera Bread Company has a top-of-theline image and reputation as shown in the TNS Intersearch that reveals that they scored the highest level of loyalty in 2003. The differentiating attributes are creating through the value chain. The Panera Bread Company has facilities dedicated to themanufacturing of the fresh dough which then, deliver the fresh dough to each location. This implies saving in equipment. The other ingredients are bought through different supplier and sweet goods are outsourcing. The Panera Bread Company tries to match the needs and expectations of customers by changing the menu regularly (with the seasons and consumers preferences) in order to sustain the...