GROUP 4
GROUP-4 MEMBERS
Ralph Matthew A. Ong
(M997Z245)
Ha Phuoc Vu
(M997Z244)
Chien Pham Dinh
(M997Z201)
Melva Hermayanty Saragih
(M997Z227)
Tran Khai Khuong
(M997Z212)
Content
• Introduction of Panera Bread
• Discussion Question 1
• Discussion Question 2
• Discussion Question 3
• Discussion Question 4
INTRODUCTION
• Panera Bread® is established in 1981;
• The Chief Executive Officer and President is William
W. Moreton;
• Location:
– Panera Bread is expanding quickly across North America,
operating 1,493 company-owned and franchise-operated
bakery-cafes in 40 states and in Ontario Canada as of June
28, 2011, under the Panera Bread®, Saint Louis Bread Co.®
and Paradise Bakery & Café® names.
INTRODUCTION
Mission and vision
• Its mission is to make great bread broadly available to
consumers across the United States.
• The vision is to create a specialty café anchored by an
authentic, fresh-dough artisan bakery and upscale
quick-service menu selections.
INTRODUCTION
Long-term Objective
• To make Panera bread a
nationally recognized brand
name and to be the dominant
restaurant operator in the
specialty bakery-café segment;
• Try to succeed by “being better
than the guys across the
street”;
Target market
• Urban
workers
suburban
and
dwellers
looking for a quick-service
meal
and
aesthetically
more
pleasing
dining experience than
that offered by traditional
fast food restaurants.
Marketing strategy
• To compete on the basic of providing an entire
dining experience rather than by attracting
customers on the basis of price only;
• Capitalize on Panera’s market potential by
opening both company-owned and franchised
Panera Bread locations as fast as was prudent.
Questions 1
1. How has Panera Bread established a unique
position in the restaurant industry? How has this
unique position contributed to its success? Do
you think Panera Bread will reach its goal of
becoming a leading national brand in the
restaurant industry? Why or why not?
Panera Bread established a unique position in the
restaurant industry with their strategy to create a new
category which is called “fast casual” in the restaurant
industry.
This category provided consumers the alternative they
wanted by capturing the advantage of both the fastfood category (speed) and the casual dining category
(good food).
This new category (fast casual) make Panera Bread’s
position not only unique but also it contributed to its
success.
•
•
•
•
•
How has this unique position contributed to its success? Panera
Bread did a lot of things to distinguish itself from its rivals, such
as:
Adding a bonus to the mix-specialty food
Opening for breakfast, lunch, and dinner also offer hand-tossed
salads, signature sandwiches, and hearty soups served in edible
sourdough bread bowls along with hot and cold coffee drinks.
Providing catering services through its via Panera catering
business.
Suggesting a new time of day to eat specialty foods, calling the
time between lunch and dinner “chill-out” time.
Providing an inviting neighborly atmosphere adding to their
appeal as well.
Do you think Panera Bread will reach its goal of
becoming a leading national brand in the
restaurant industry? Why or why not?
Yes, Panera Bread will reach its goal because the
company is counting on its unique positioning
strategy, its signature foods, and savvy execution
to make this goal a reality.
Question 2
• Analyze the restaurant industry using Porter’s
five forces model.
Industry Overview
Porter’s five forces:
Threat of
substitute products
HIGH
Bargaining power
of suppliers
LOW
Rivalry among
existing competitors
Threat of
new entrants
LOW
Bargaining power
of buyers
HIGH
Porter’s Five Forces
Factor
Analysis
Impact
Threat of substitute
products
• Substitute products are easily accessible (eat at
home, convenient stores)
• Economic downturn limits disposable income –
substitute products become more appealing.
HIGH
Bargaining power of
suppliers
• Panera has multiple options to source each
ingredient they use.
LOW
Bargaining power of
buyers
• Economic downturn’s affect on consumer eating
behaviors – cheaper meal at home.
• Over 21 direct competitors/alternative eating
establishments of Panera.
HIGH
Competitive rivalry
• Differentiation and constant menu changes to
appeal to consumer preferences.
•Many competitors in industry.
INTENSE
Threat of new
entrants
• High investment threshold to enter market
LOW
• In what ways has Panera Bread successfully
positioned itself against the forces that are
suppressing the profitability of the restaurant
industry as a whole?
Positioning strategy
• Panera Bread’s strategy is “to provide a premium specialty
bakery and café experience to urban workers and suburban
dwellers.”
• The concept is a mix between fast food and casual dining, or
fast casual.
• By choosing this strategy, Panera is attempting to achieve
competitive advantage in the unique offerings it provides,
offerings that rivals don’t have and can’t afford to match.
• In this case, delicious handcrafted bread arriving fresh daily,
served in an inviting atmosphere is the company’s competitive
advantage and core competency.
High
Casual Dinning
Applebee’s
Red Lobster
Chili’s
Carrabba’s Italian Grill
Food Quality
Unfavorable
Position for
Everyone
Low
Slow
Fast Casual
Panera Bread
Bruegger’s
Chipotle
Cosi
Fast Food
McDonald’s
Wendy’s
Burger King
Taco Bell
Speed of Service
Fast
Question 3. What barriers to entry has Panera Bread
created for potential competitors?
How significant are these barriers?
Barriers to entry for potential
competitors
• Economies of Scale
• Product Differentiation
• Capital Requirements
Barriers to entry for potential
competitors (Cont…)
• Cost advantages
independent of size
• Access to Distribution
Channels
• Government Policy
How significant are these barriers?
• It is necessary to consider entry barriers when assessing
dominance, when determining whether unilateral conduct
might deter new firms from participating in a market, and
when analyzing the likely competitive effects of mergers.
Entry barriers because competition will not be reduced if new
firms could enter easily, quickly, significantly.
QUESTION # 4
What are Panera Bread’s primary sources
of competitive advantage? In your
judgement, are these sources of
advantage sustainable? Why or Why not?
PRIMARY SOURCES OF COMPETITIVE
ADVANTAGE
[1] Position in the industry
[2] Brand strength
[3] Atmosphere
[4] Distinctive products
[5] Customers’ loyalty
[6] Financial Performance
SUSTAINABILITY OF THE SOURCES OF
ADVANTAGES
[1] Position in the industry:
a.) Avoid arising of competition
b.) Success in positioning and execution
c.) Positioning strategy of various restaurant chains
d.) Snack time
e.) Expansions
SUSTAINABILITY OF THE SOURCES OF
ADVANTAGES (cont.)
[2] Brand strength:
a.) Special brands and foods
b.) Fast-casual category
SUSTAINABILITY OF THE SOURCES OF
ADVANTAGES (cont.)
[3] Atmosphere:
a.) Franchised outlets have been operated
b.) Convenience
c.) Customer attraction
d.) Expansions
SUSTAINABILITY OF THE SOURCES OF
ADVANTAGES (cont.)
[4] Distinctive products:
a.) Product differentiation
b.) Offers various kinds of foods
SUSTAINABILITY OF THE SOURCES OF
ADVANTAGES (cont.)
[5] Customers’ loyalty:
a.) Teamwork
b.) Manager-customer relationship
SUSTAINABILITY OF THE SOURCES OF
ADVANTAGES (cont.)
[6] Financial performance:
a.) Avoid threats to profitability
b.) Increase of sales
Thank you for your listening