Organic Coffee Market Strategy

This assignment delves into the development of a strategic marketing plan for an organic coffee brand. It examines the concept of the 'marketing mix' and its elements (product, price, place, promotion), applying them to the context of organic coffee. The analysis also incorporates Porter's Five Forces model and PESTLE analysis to understand the competitive landscape and external factors influencing the market. Additionally, the assignment considers cultural values and consumer preferences in relation to organic products.

Running head: CASE STUDY ANALYSIS OF PRET A MANGER
CASE STUDY ANALYSIS OF PRET A MANGER
Name of the Student:
Name of the University:
Author’s Note:

1CASE STUDY ANALYSIS OF PRET A MANGER
Executive Summary
This report will focus on the problems which Pret A Manger faces while operating in day to
day business. This report will further critically analysis the problems which the company
faces as well as how to tackle these problems. The report will contain a detail analysis of the
present market of Pret and also analyze the market in which the company wants to expand
into. The report will be dealing with certain research questions and aims and objectives which
the researcher wishes to establish through this report. The report will contain market analysis
along with an international business analysis which will contain use of tools like porter’s
competitive advantage theory, Ansoff matrix. The report will also analysis the strategic
management strategies as well as marketing strategies which Pret uses or should use in order
to further develop the business.
The report will conclude with suggestions and a recommendation about how the problem is to
be tackled by Pret. Lastly it will include limitation of research and if there is any further
scope of research left in the area.

2CASE STUDY ANALYSIS OF PRET A MANGER
Table of Contents
Executive Summary...................................................................................................................1
Chapter 1: Introduction..............................................................................................................3
1.1 Background..................................................................................................................3
1.2 Problems Faced by Pret A Manger..............................................................................4
1.3 Research Questions.....................................................................................................4
1.4 Research aims and objectives......................................................................................4
1.5 Structure of the report..................................................................................................5
Chapter 3: Plan of Analysis........................................................................................................9
3.1 Business Models of Pret A Manger.............................................................................9
3.2 Marketing.......................................................................................................................12
3.2 Strategic Management...............................................................................................17
Chapter 4: Analysis and Findings............................................................................................21
4.1 Analysis of Strategic Management............................................................................21
4.2 International Business Strategy.................................................................................22
4.3 Marketing Strategies..................................................................................................23
Chapter 5: Proposed Solution of the Problem..........................................................................25
5.1 Local Market Development............................................................................................25
5.2 Global Expansion...........................................................................................................25
5.3 Recommendations..........................................................................................................25
Reference..................................................................................................................................27

3CASE STUDY ANALYSIS OF PRET A MANGER
Chapter 1: Introduction
1.1 Background
Pret A Manger is a fast food chain restaurant which was established in 1986 in
London. It was established by two college friends Julian Metcalfe and Sinclair Beecham
(Pret.com 2017). The word “Pret A Manger” is actually a French word which means Ready
to Eat. The founders of the company first bought the Pret A Manger from a dormant company
and started its first shop in London.
After a decade the company has achieved enormous growth with almost 100 shops in
London (Pret.com 2017). The company then sold one third of its share to Mcdonalds. The
company has been able to achieve tremendous growth since 2003 when Clive Schlee became
the CEO of the company (Pret.com 2017). Pret A Manger has to offer a wide of choices in
sandwiches and also its coffee products. The company in recent years have put more focus in
quality, better staff services and overall expansion of the business. The company has a target
of expansion on number of shops by 15% per year (Pret.com 2017). As per 2011 estimates
Pret had around 282 shops in Britain, Hong Kong and United States generating steady returns
(Pret.com 2017). The company claims that it uses all natural ingredients and no addictives or
preservatives in its products. The company advertises that sandwiches which are made by the
company is fresh every time and whatever sandwiches are leftover at the end of the day is
donated to charity. The company operates with as much as 67% of its trade in London itself.
Therefore the head office is situated in London (Pret.com 2017).
Moreover the employee policies of the company includes that customers are to behave
in polite way to customers and also have a happy mood in work place. The company has
earned around 776 million pounds of revenues in 2016 and also an operating income of about
93 million pounds in 2016 (Pret.com 2017).

4CASE STUDY ANALYSIS OF PRET A MANGER
1.2 Problems Faced by Pret A Manger
The problems which the company faces are not that major but considering the expansion
strategy which the company is following the problems need to be tackled and sorted. One of
the major problems which the company faces is the high cost issue. The products whether it
is sandwiches, pastries or beverage are costly as compared to its competitors. Regular
customers are of the opinion that the products of the company are of high costs. Another
problem which the company faces is with finding good locations for opening new shops. Due
to the expansion strategy of Pret, the company is trying to open new shops of the company in
as many places as possible and also because the company goal includes establishing 15%
more shops annually (Pret.com 2017). The company is finding difficult to accomplish the
above mentioned goal due increase in competition and unavailability of decent shop
locations. The company is also trying to enter new markets thus there is always the risk of
competitors present there and acquisition of market will be a difficult task.
1.3 Research Questions
The general questions which arise while analysing this case study are given below:
1. What are the areas where improvements are required in Pret A Manger which may be
in areas like quality, customer services, marketing and advertisement, general
management and other key areas?
2. Identifications of problems faced by Pret and what can the company do to overcome
such problems?
3. What should be Pret’s strategies and business models considering the results of
internal analysis, external analysis and other strategic management tools?
1.4 Research aims and objectives
This assignment aims at achieving the following points as given below:

5CASE STUDY ANALYSIS OF PRET A MANGER
1. Identifying the problems which are associated with Pret and what are the measures
taken by the company to overcome such problems.
2. The key business strategies employed by Pret A Manger which help them in decision
making process
3. Identifying the strengths, weaknesses, opportunity and threats of Pret A Manger.
4. Identifying the marketing strategies of Pret A Manger.
1.5 Structure of the report
This report will be containing five chapters. The first chapter deals with a general
background of the company and what are the strategies it uses. The first chapter also includes
problems which the company Pret A Manger faces , research questions and its aims and
objectives. The second chapter will contain a detail overview of the company including the
company’s financial status. The chapter will further include SWOT analysis of the company
to determine the company’s strengths, weaknesses, opportunity and threats. The third chapter
will focus on marketing aspects of the company using different management tools. The Third
chapter will deal with 7 marketing principles, Ansoff model, PESTLE analysis and some
other strategies will be discussed in the chapter. The fourth chapter deals with analysis and
finds which are obtained by the analysis of different tools as done in chapter Three. The last
chapter will be dealing with proposed solutions which can be suggested to the problems and
the chapter will contain recommendations which can improve the business of Pret A Manger.

6CASE STUDY ANALYSIS OF PRET A MANGER
Chapter 2: Case Brief
The report analyses the problems faced by the Pret A Manger Company. In this
chapter the discussion will be on case of Pret A Manger and the report will conduct the
SWOT analysis of the company.
2.1 Overview of the Company
The company was started in 1986 in London by two college students as a place where
people can have decent sandwiches (Pret.com, 2017). The company developed over the years
as a leading brand in fast food and beverage industry competing with brands like Mcdonalds,
Starbucks and other brands. The company has especially been doing well since Clive Schlee
became CEO. The main food products which Pret offers are variety of sandwiches along with
salads, soups, pastries and coffee. Another thing about Pret is that the company follows a
strict principle on quality of the product ensuring minimum use of preservatives or artificial
flavours. As per the policies of the company freshness of the product is important therefore
every Pret shop has a kitchen where food is freshly cooked for each day. Pret company
employs individuals who are enthusiastic, genuine and has a friendly attitude. The
management of Pret believe in quality customer services and building good inter personal
relation with their customers.
Pret Company has a competitive advantage over its competitor in case of shop
locations. Most of the shops of the fast food giants are located in best sites of London.
However due to intense competition and growth of business of overall Fast food and
beverage Industry, establishing new shops in decent locations with a kitchen is a challenge as
new sites are not available.

7CASE STUDY ANALYSIS OF PRET A MANGER
2.2 Financial Position of Pret A Manger
The company has shown tremendous growth in the fast food market in the recent five
to six years. The products of the company are widely popular thus justifying the growth of
the business. The company has expanded from markets of London and managed to penetrate
the markets of countries like United States, China, France, UAE and Singapore. The
company has estimated revenue of around 776 million pounds in 2016 with an operating
income of around 93 million pounds in 2016 (Pret.com 2017).
2.3 SWOT Analysis of Pret A Manger
SWOT analysis is a management tool which is used by business to identify its
strength, weakness, opportunities and threats. The word SWOT is a short form of strength,
weakness, opportunity and threat. These techniques are used for internal and external analysis
of the business. This technique is useful to business in order to recognize what are the
strength of the business and what are its weaknesses (Hollensen 2015). External analysis
includes recognizing opportunities which can benefit the business and also the threats which
the company needs to avoid. SWOT Analysis of Pret A Manger are show below:
1. Strengths: The major strength of Pret is its established name and reputation. When the
company initially started it just focused on proper quality of food and efficient
customer services. Now the company has operated for almost 33 years earning a
brand image for the company. In the years of providing services the fast food giants
have made a large number of loyal customers. Another strength is that the company is
known for its sandwiches which are healthy and perfect for the recent healthy lifestyle
which people are adopting.

8CASE STUDY ANALYSIS OF PRET A MANGER
2. Weakness: One of the basic weakness which can be easily identified with Pret A
Manger is that the prices of its products are high. The prices of the sandwiches as per
the opinion of the customers. Another weakness of Pret is that availability of good
locations for opening a shop.
3. Opportunity: As per the estimates the business of Pret is on a rise. Due to rapid
expansion not just in London but other countries like United states, china and other
countries. There is an opportunity for the company to expand and penetrate in new
markets. Already the reputation of the company is known throughout the world and
the quality standards are also known, thus it will not be difficult to penetrate any
market in any country.
4. Threats: The only threat that Pret A Manger faces is by its competitors. Though Pret is
a force to acknowledge in fast food market. However in some countries dominance of
other brands may be more. For example in US the dominance of subway is much
more than Pret.

9CASE STUDY ANALYSIS OF PRET A MANGER
Chapter 3: Plan of Analysis
This chapter will deal with different tools used in strategic management of the
company. The chapter will also analyze the business model of Pret A Manger Company and
analysis will be done of different strategies available in the market.
3.1 Business Models of Pret A Manger
The company is known for its quality and its sandwiches. The business model of the
company focuses on highest quality of its products and also has a commitment of serving
its customers in the best way possible (Casadesus‐Masanell and Zhu 2013).
a. Market Entry strategies: Pret is still in its expanding stages and the management of
Pret is focused on expanding the brand into new markets and acquire as much share
possible in such new markets. Market entry strategies can be defined as the process of
producing and selling of good in a new market considering a new group of target
customers (Holtbrügge and Baron 2013). This is basically adopted by companies
when they are trying to enter new markets which may or may not be overseas placed.
The market entry strategy of Pret should include a detail analysis of the market in
which the company is deciding to open a store. Pret A Manger‘s management then
have to identify the culture, taste and preference of the market as well as who will be
the dominant competitor in this new market. The company core policy is to provide
its products as fresh as possible, therefore the company looks to use the resources of
the host country and obtain fresh raw products which are used to make Pret’s final
product. The company will then be promoting its products in the new market before
opening shops out there.
b. Hofstede’s Cultural dimension: Hofstede’s theory of cultural dimension states that
the cultures of people in different countries are different and therefore business must

10CASE STUDY ANALYSIS OF PRET A MANGER
analyze the culture of the people and society before entering a new market (Mazanec
et al. 2015). Considering a country’s culture will allow the business to adapt in the
new environment and flourish. The hofstede’s model of national culture consists of
six dimension which are discussed below:
1. Power Distance Index: This dimension deals with the fact that people who are in
less powerful position in the society believe that power is distributed unequally
among the society (Hsu, Woodside and Marshall 2013). Thus these people
demand a equalisation of power among the society.
2. Individualism Vs Collectivism: In this dimension two important concepts are
provided. The first concept deals with the fact that an individual should be
concerned with the well being of himself and his work, this concept is known as
Individualism (Garcia-Gavilanes, Quercia and Jaimes 2013). The second concept
that is derived is the opposite of Individualism. The concept which states that a
person should not only be concerned about himself but also about the well being
of the society as well is known as the concept of Collectivism.
3. Masculinity Vs Femininity: This dimension deals states that a society should
focus on two concepts. Masculinity recognizes heroism, rewards for success,
strong driven attitude and competitiveness. These qualities should be present in
the society as per the concept of masculinity (Samaha, Beck and Palmatier 2014).
On the other hand the concept of femininity states that a society should prefer
modesty, care for weak, cooperation and quality of life.
4. Uncertainty Avoidance Index: This index deals with how much a member of
society feels uncertainty in it. This index is useful to see what approach the
society takes (Kong 2013). If the society has rigid rules and regulations then there

11CASE STUDY ANALYSIS OF PRET A MANGER
is strong Uncertainty Avoidance Index whereas if the society has flexible rules
then it has weak Uncertainty Avoidance Index.
5. Long term Orientation Vs Short term Orientation: This index considers the short
term and long term perspective of the society. The model decides whether the
society follows normative or short term policy or pragmatic or long term policy.
6. Indulgence Vs Restraint: This principle here also considers the rigidity or
flexibility of a society. If a society allows free lifestyle and flexible regulations
then the society is considered as an Indulgent whereas the opposite of it is
Restraint where the society has rigid rules and regulation and the society has strict
social rules.
c. Porter’s Competitive Advantage of Nations: Michael Porter’s theory of the
competitive advantage of nations provides a sophisticated tool for analyzing
competitiveness in a country. The theory helps people to understand the competitive
advantage of nations in international trade and production (Doz and Prahalad 2013).
It mainly focuses upon individual industry or clusters of industries, in which the
principles of competitive advantage are applied. His theory begins from individual
industries and builds up to the economy as a whole. As per Porter there are four
factors which affect the competitive advantage of a country. These factors are
explained in brief below:
1. Factor Conditions: The factor condition of a country includes inputs which are
used by business to make it final product. These inputs are human resources,
physical resources, technological resources, capital and infrastructure resources.
These factors are essential for any business in order to create competitive
advantage.

12CASE STUDY ANALYSIS OF PRET A MANGER
2. Demand conditions: The importance of demand conditions as a factor influencing
competitive advantage is easily justified (Riasi 2015). The production activity in a
business depends on the needs of the consumers. The demand condition of a
country determines the level of competition among different companies and also
determines what and in how much quantity will the company produce the said
product. Demand conditions of a country will include home demand conditions,
pattern of new demand in the country which is also a demographic analysis and
changing taste and preference pattern of the overall consumers.
3. Related and Support Industries: Competitive advantage of a company is also
related with the role of support industries. This is significant in case the good
produced is complementary good which requires another product to complement
it (Zhang and London 2013). Another example can be given of an industry whose
final products are used in the manufacture of another industry’s final product. For
example automobile industry makes the outer body of the automobile but the
tyres and engines of the automobile are purchased from another company which
produces such item. The most basic example can be given of suppliers who
provide the raw materials. Hence if a country has such support companies and
required natural resources, any mainline Company will be attracted to such a
country as there is opportunity to achieve a competitive edge.
4. Firm strategies, structures and Rivalry: Firm strategy and structure are reflective
of company goals and individual goals. Company goals are most strongly
determined by ownership structure, the motivation of owners, the company
performance and action plan for achieving goals (Rothaermel 2015). Rivalry
among competitors also is included by Porter as intense rivalry brings the best out
of a company.

13CASE STUDY ANALYSIS OF PRET A MANGER
3.2 Marketing
The marketing strategies of Pret A Manger can be analysed by following the
marketing tools and strategies as given below:
a. Seven P’s of Marketing Mix: Marketing mix are the p’s which affect the marketing
activities of business (Armstrong et al. 2014). Initially there were 4 p’s but later on 3
new extended p’s were introduced. The seven p’s are discussed below:
1. Product: The product should be such that it satisfy the needs of the consumers. The
product is the main constituent of marketing mix as this is the finally distributed
among consumers (Khan 2014). The product should be such that it exactly what the
consumer expect from the product and company.
2. Place: The product which is produced by the company needs to have a place where
the product can be stored and also a place where the product can be sold. This place
can be market, warehouse, shopping mall. Nowadays the place is even virtual such as
now products are available in online selling sites.
3. Price: The price of the product should be such that the value of the product matches
its price. A misconception is that consumer prefer cheap goods but that not the case
entirely. The consumers are willing to pay extra if it means that the product quality
will be highest.
4. Promotion: These activities mainly include advertisement and promotion activities.
Activities of such nature includes door to door sales, retail sales and sale promotion
activities. These promotion activities should be used by the business to educate the
users about the product and it uses.

14CASE STUDY ANALYSIS OF PRET A MANGER
5. People: This is newly added element is people. Every organisation is managed by
different groups of people whether it is production, marketing r sales department. A
success of a business largely depends on the workforce of the business.
6. Processes: These includes the services which are provided during the delivery of the
product or after sales services (Huang and Sarigöllü 2014).
7. Physical Evidence: The last introduced element in marketing mix is physical
evidence. Every services include some physical factor which also needs to be
considered.
These marketing mix is useful in any business therefore Pret must identify its marketing
strategies based on this tool of marketing.
b. Ansoff Matrix: This is a tool used by marketing team to determine the marketing
strategies and growth of product as well as market. This analysis is conducted
considering new and existing product and markets (Hussain et al. 2013). The matrix
analyses different strategies like market penetration, product development, market
development and diversification. The below figure shows an Ansoff matrix

15CASE STUDY ANALYSIS OF PRET A MANGER
Figure 1: Ansoff Matrix
Source: (Samantha and Garrie 2015)
The above marketing strategies are discussed below:
1. Marketing Penetration: The first quadrant in the Ansoff matrix is market penetration.
This strategy is often adopted when the company has an existing product and also an
existing market and needs a growth strategy within that market. In such cases
competition is intense. This means that in order to grow, the company need to go out
of its way to increase market share (Grilli and Murtinu 2014).
2. Product Development: Product development refers to firms which have a good market
share in an existing market and want to introduce new product in the market (Fuller
2016). Product development is needed when the company is aware of the fact that it
has a good customer base and knows that the market for its existing product has
reached saturation. In this case, the market penetration strategy is no longer practical.
A new product development strategy is a better approach in such a case.

16CASE STUDY ANALYSIS OF PRET A MANGER
3. Market Development: This is the strategy employed by firms when they want to
introduce an existing product in a new market. This is the strategy which marketing
experts use in order use the brand image or popularity of the product to enter a new
market.
4. Diversification: The diversification strategy in the Ansoff matrix applies when the
product is completely new and is being introduced into a new market. In such a case
the company has to work from the scratch in promotion and product development
activities. The company also has to develop the market in which the new product is to
be introduced.
c. PESTLE Analysis: This is a tool used by marketing professionals which is used to
analyse a county’s political, economic, socio-cultural, technological, legal and ethical
environments (Kolios and Read 2013). These are discussed on the basis of analysis of
Pret A Manger as given below:
1. Political: These factors include areas such governmental intervention, tax policies and
rules and regulation of the country in which the company is operating. As per the
analysis of political factors which can affect Pret are mentioned above.
2. Economic: The economic factors include economic concerns of the firms which are
like economic growth, interest on loans, credit availability and more factors. Pret
company is associated with high cost of the product. The company must analysis
whether the target customers in the country will indulge in their even though the
prices are slightly high as compared t its competitors. Another consideration maybe of
credit availability in the market.

17CASE STUDY ANALYSIS OF PRET A MANGER
3. Socio-cultural: These factors include areas like health of the consumers, taste and
preference of the consumers, demography of the country, general demand of the
consumers. Pret A Manger follows this area especially well as it is a core strategy of
the business to serve its customers well and have a friendly attitude. The company
business model focuses on social responsibility of the company towards the
betterment of the society.
4. Technological: These factors include technological changes and changes in knowhow
of the company. Such factors can bring in tremendous changes in an economy. In case
of Pret new technologies are welcomed and new strategies are implemented as long as
they sound one.
5. Legal: These factors deal with different kinds of laws which may be business laws,
employment laws, tax laws and any other law which affect the business of the
company either directly or indirectly.
6. Environmental: These factors are concerned with environmental and ecological
maintenance by the business. These factors are concerned whether any activity of
business is affecting environment or not.
3.2 Strategic Management
Strategic management in any business plays a vital role in framing of strategies which
are followed by companies in order to achieve the goals of the company (Eden and
Ackermann 2013). In this report following tools or strategies are used to analysis the
business of Pret A Manger:
a. Porter Generic Strategies: As per Michael Porter a business strives towards
gaining competitive advantage over its rivals (Tanwar 2013). Porter has identified

18CASE STUDY ANALYSIS OF PRET A MANGER
three such strategies which businesses adopt in order to achieve its goals and also
gain competitive advantage.
Figure 2: Porter generic Strategies Matrix
Source: (Tansey, Spillane and Meng 2014)
The above matrix shows the elements of Porter Generic forces which are discussed
below:
1. Cost Leadership: This strategy expresses that the company drives towards cost
reduction and maintenance. The company tries to produce its products at as low cost
as possible. The company focuses on every area where the company can achieve cost
advantage (Hill, Jones and Schilling 2014). These areas may be different like
technological advancements, achieving economies of scale, better access to natural
resources and raw materials. The company which follows this strategy can perform
above average in the industry.
2. Differentiation: In this strategy the business tries make it product different from other
companies in the industry (De Melo and Robinson 2015). Such companies choose a
specific area which the consumers consider important or key and tries to make that
area unique. Such area maybe packaging, presentation, use of new technology.

19CASE STUDY ANALYSIS OF PRET A MANGER
3. Focus: In this strategy the company puts emphasis on a particular segment of
business. The company then incorporates strategies such that the selected area is the
main area and it is developed as per the plans of the management. A company which
focuses in cost advantage is known as cost focus while if the company focuses on
differentiation, then it is known as differentiation focus.
b. Blue Ocean Strategy: This refers to a market where there is minimum pressure of
market. In this market there is either no competition or minimum competition. A
blue ocean exists when there is potential for higher profits, as there is now
competition or irrelevant competition (Kim and Mauborgne 2014). Its entire
opposite is Red ocean strategy which operates in a saturated market. Blue ocean
strategy is not limited to one market but can be used by any company. The main
aim of the strategy is to capture new market where there is more demand, and to
make competition irrelevant by introducing a product with superior features. It
helps the company in making huge profits as the product can be priced low
because of its unique features.
c. Boston Consultancy Group Matrix (BCG): This matrix was developed by Boston
Consultancy Group and therefore the matrix is known popularly as BCG matrix
(Palia, De Ryck and Mak 2014). This matrix was prepared so that it can help
business in long term strategic planning and analyze the growth opportunities in a
business.

20CASE STUDY ANALYSIS OF PRET A MANGER
Figure 3: BCG Matrix
Source: (Zakharova et al. 2015)
The elements of BCG matrix are discussed below:
1. Star: In this quadrant of BCG matrix the company has high market share and high
growth rate. The company has scope of more growth and possibly can increase its
market share. This quadrant is called star as the company present in this quadrant are
in a favourable place in the market.
2. Cash Cow: This quadrant of BCG matrix shows that the company has reached its
saturation point in the market and further growth is scarce or nil. In such a case the
company has high market share which the company is established. This is the time
when company can make profits easily and thus this stage is known as cash cow
stage.
3. Question market: This quadrant in BCG matrix shows low market share and high
growth opportunities. In this segment the companies tries to achieve high market
share in order to become a star. Whether they will be successful is a question mark.
This is also called problem child.

21CASE STUDY ANALYSIS OF PRET A MANGER
4. Dog: The business in this quadrant of BCG matrix have low market share and also
does not have growth opportunities. Such business should be liquidated as it is not
likely that such business can survive for long as they are not making much profit.
Chapter 4: Analysis and Findings
4.1 Analysis of Strategic Management
The analysis of strategic management tools as discussed in chapter 3 will be analyzed
with the perspective of Pret.
a. Porter Generic strategies: As per analysis of this tool in Pret it is clear that the
company follows differentiation strategy in some cases and focus differentiation in
some cases. The company is always concerned with the quality of the product and

22CASE STUDY ANALYSIS OF PRET A MANGER
therefore its natural the prices of its products are high. Unlike its rival Subway which
focuses on Cost leadership strategy, Pret Company is concerned with making its
product unique as possible. This can be established from the fact that it has a wide
range of variety of sandwiches which are unique in their ways from its competitors in
fast food industry. The company tries to make it products of highest quality and thus
make it different from its competitors giving it a competitive advantage.
b. Blue Ocean Strategy Vs Red Ocean Strategy: Red Ocean strategy means that the
company is operating in a market where market is already saturated. The opposite of
this concept is the Blue Ocean strategy. This states that the market does not have
much competitive pressure and there is a possibility of earning high profits. In case of
Pret it can easily be deduced that the current market in which Pret is operating is
saturated. Pret has to face tough competition from brands like Subway, Starbucks,
Eat. The current market is clearly taken by the above mentioned brands which have
their own loyal customers. Thus the scope of earning high profits without much
competition is not possible in current scenario. However if the company decides to
penetrate new markets where such intense competition is absent than the company can
follow or apply Blue Ocean Strategy.
c. BCG Matrix: This is considered to be an efficient tool in strategic management for
framing business policies. Pret A Manger has around 220 stores in London itself and
the company is further expanding in the market. Pret is also popular among customers
for its quality and customer services. Thus it has a decent market share. It is therefore
placed in Star status. Thus company’s strategy should be to invest more in growth of
the business and strive to become a cash cow.
Overall findings: The above tools used to analyze the strategic management of Pret A
Manger shows that the company has a sound strategy system. As per porter generic forces it

23CASE STUDY ANALYSIS OF PRET A MANGER
follows differentiation policy and BCG Matrix it has the status of a star which can convert
itself into a cash cow in near future.
4.2 International Business Strategy
The analysis of international business strategy utilizes the strategies of porter’s
competitive advantage, Market entry strategies and Hofstede’s Cultural Dimension theory.
a. Market entry strategies: Pret A Manger enjoys a brand name which is known for
excellent quality and efficient customer services. The company’s brand name and
popularity will provide an edge to the company if it wants to enter into any market.
The company policies of fresh products and charity of the leftovers remaining at the
end of the day will gain recognition for the company in any new country. The
company is a giant in fast food chain industries even earning attention of Mcdonalds
which purchased shares of Pret. Thus the company’s name and policies itself acts a
market penetrating tool.
b. Hofstede’s cultural Dimension: This is a theory where Hofstede states that in order for
a business to succeed in another country it is essential that the company analyzes the
cultural present in that country. It is a policy of the management of Pret that it
analyzes the market it plans to enter. The things which are analyzed are the taste and
preference patterns of the consumers, food habits, culture of the people. The company
employs local people as managers of the shop so that proper communication with
natives can be established. The company also uses materials or supplies from the host
country in order to keep its products fresh.
c. Porter’s competitive advantages: It is common thing for any business to analyze the
market where it will operate. Pret analyzes the countries demand conditions that is
what are the demands of the people and what are their expectations. Then it takes into
consideration factors supply, supporting industries and level of rivalry it can expect.

24CASE STUDY ANALYSIS OF PRET A MANGER
On the basis of this analysis the company decides whether to establish in new country
or not.
Overall findings: The Company’s strategies for international market penetration are
above average. There are certain areas in the strategies where improvements can be
implemented.
4.3 Marketing Strategies
The marketing strategies of the company are analyzed by the use of tools like Marketing
mix, PESTLE Analysis and Ansoff Matrix.
a. Marketing Mix: The marketing mixes as available are taken into consideration by any
business. Any businesses marketing strategies are developed on the basis of this mix.
Similarly Pret follows such policies in marketing. The product is the sandwiches,
soups, salads, pastries which the Pret serves. The place refers to the country in which
Pret is operating and also includes different locations. The price factor considers the
cost of the products which Pret provides. The next factor is promotion which means
how well the people are aware of the products and the promotional activities in which
the company engages. The new factors introduced are people, processes and physical
environment.
b. PESTLE Analysis: As per this Pret Company need to identify what are its political,
economical, socio-culture, technological, legal and environmental factors and how
each of them can affect the business. A detailed analysis is already given in Chapter 3.
c. Ansoff Matrix: As per Ansoff model in current market it has a well established market
in fast food industry and the products of the company is also very well developed.
Thus it can be said that the company strategy is product diversification as the

25CASE STUDY ANALYSIS OF PRET A MANGER
company focuses more on quality and to make its products different. Thus the
company is involved in diversification strategy.
Overall findings: The Company has an impressive marketing strategy even though it
does not need to invest more in marketing activities as it already has an established
market. However if the company is planning to expand in new countries then it is a
different scenario.
Chapter 5: Proposed Solution of the Problem
5.1 Local Market Development
One of the suggestions that can be given on Pret company is that it should try to
develop local market in which it is operating. The company has operated for more than 33
years and it still faces strong competition from its rivals. The company need a strategy to
ensure that it can acquire as much market share of the market as possible. This can be done

26CASE STUDY ANALYSIS OF PRET A MANGER
by reducing the prices of the commodities and introducing products which are of low price
but no reduction must be made in the product’s quality.
5.2 Global Expansion
Pret A Manger is at its expanding stages and the policy of the company is to expand
overseas as well. The company must first do a detail market analysis of the country where it
will establish its shop and then as mentioned in earlier chapters analyze the cultural, porter’s
competitive model and based on the results of the above formulate a efficient strategy.
5.3 Recommendations
The following recommendations can be suggested for solving the problems which the
company faces:
1. Prêt should go forward with the plan of opening twin shops where company can
produce products in a centre hub and sell those products in such twin shops. This is
against company’s cultural of fresh cooking and every shop should have its own
kitchen. However the company should focus on expansion only and thus implement
the plan of twin shops.
2. Prêt should also try to introduce products which are low priced which can be afforded
by all classes of people.
3. Pret can introduce an effective advertisement plan for local markets and international
markets which will establish the products in those particular markets.

27CASE STUDY ANALYSIS OF PRET A MANGER
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