Panera Bread- Value Chain

Assignment#3- Distribution, Sales+Marketing

Distribution

Value

There is great value in Panera’s distribution because they utilize multiple distribution channels to get the final product to the customer. As indicated in the case, they use company owned bakery-cafes and supply to franchise bakery-cafes to reach the largest amount of consumers. Panera bread also makes their own homemade dough (naturally selected ingredients) which is distributed to their premium specialty bakery-cafes.

Rarity

Panera’s distribution is both rare and not rare. The case indicates that the competition also has both franchise and company owned stores. Their distribution method is rare in the fact that their bakery-cafes have a premium specialty flare and try to look upper-class while remaining price-competitive.

Inimitability

The distribution of Panera is not inimitable because competitors could easily copy the retail store layouts and create the same atmosphere. Many other fast-food companies are opening delis and introducing healthier ingredients in food to compete.

Sales and Marketing

Value

Panera creates value from sales and marketing as they offer higher quality food, quick dining experience to their patrons. Panera targets urban workers and suburban dwellers because they will be frequent visitors. Both franchise and company restaurants must adhere to strict quality regulations.

Rarity

Panera’s sales approach is rare because they only have 910 locations (2006) which serve the highest population per location as compared to other fast-food restaurant chains. This has successfully segmented them as being a premium quality/specialty quick-serve restaurant and leaves Panera with much to be desired compared to the other restaurants.

Inimitability

The brand is not inimitable because it is very easy for competitors to use similar sales and marketing strategies with their own products and use similar price points. Many companies are copying their sales styles by opening...