1. Anthony MA1N0231
Liisi 0A10F001
Case 5.1 Panera bread: Occupying a Favourable Position in a Highly Competitive Industry

2. Program Panera bread – history Panera bread today - products
The future
Discussion questions

3. 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

4. Panera bread today - products

5. The future Fast Casual category Leading national brand
Positioning strategy
Signature foods
Savvy execution

6. Discussion questions – 1
How has Panera Bread established a unique position in the restaurant industry?
How has this unique position contributed to its success?

7. Discussion questions – 1
Good timing
Fast + casual (positioning)
Customers needs
Speciality foods
Window catching -> success

8. The restaurant industry

9. 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?

10. Porter’s forces Bargaining Power of Customers Threat of New Entrants
Competitive Rivalry within an Industry
Bargaining Power of Suppliers
Bargaining Power of Customers
Threat of New Entrants
Threat of Substitute Products

11. Panera Bread’s forces Pioneer Healthy Menu Bakery, artisan.
Brand’s recognition
Fast-Food
Casual Dining

12. Discussion questions – 3
What barriers to entry has Panera Bread created for potential competitors? How significant are those barriers?

13. Brand’s Recognition:
Panera Bread = Fast Casual
Artisanal Bakery
Healthy food
Pioneer’s prestige
20years of experience
1,591 units in US

14. 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?

15. Brand’s Recognition:
Panera Bread = Fast Casual
Artisanal Bakery
Healthy food
Pioneer’s prestige
20years of experience
1,591 units in US

16. 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?

17. Applebee’s
McDonald’s

19. 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?

20. 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 5
1.5
Economies of scale
0.2
0.6
Product innovation
0.1 7
0.7
Total
1.0 20
4.9 15
3.7

21. Competitor Profiling Background Financials Products Marketing
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…

22. 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?

23. Starbucks
Products
Service
Feeling special

24. Apple - iphone
1st Smartphone
Leader now
User friendly
Steve Jobs

25. Thank you!