Can Greggs Become the Skoda of Pies?

This is a great article for Business students. The Times describes how bakers chain Greggs (which has prospered during the UK recession) is trying to reposition its brand as the UK comes out of recession.

Some great material in here on the effect of queues on customer service, and on pricing strategy. Apparently investors in Greggs plc (or their analysts at least) have been trying to persuade Greggs to raise their prices. But Greggs management have resolutely refused to-date, since the product offer is all about outstanding value for money. Well worth a read, or perhaps printing out as a lesson activity.

Greggs’s growth strategy has been in the news a lot in the last couple of years, as it attempts to take on the likes of Pret A Manger and Starbucks. You could easily imagine it being used in an exam like BUSS3 - lots of scope for data analysis from their investor relations department

Here are some possible stimulus questions for the Times article:

- Explain why Greggs’ traditional pricing strategy has been based on offering the best “value for money”
- Greggs claims that it serves a customer base that ranges from ‘barristers to builders’. Do you agree that a sandwich chain like Greggs can successfully target customer groups with such different needs and wants?
- Outline the main operational and people management issues that Greggs will have to address as it tries to expand in the south of the UK with its new shop format