[Case by case #11] IPRA - Panarello: Combining aromas and flavours? Understanding the challenges of intercultural negotiation

In a recent case study (1), Martin Chour, Assistant Professor at EDHEC and Deputy Head of the Marketing Department, and Philippe Bucaro, Consultant and Lecturer at EDHEC, explain how two long-established companies, one based in Grasse, the cradle of perfumery, and the other an icon of Genoese pastry-making, illustrate the challenges and opportunities of intercultural negotiation between companies. How can they grow together, preserve their authenticity and adapt to the demands of a global market?

The ‘IPRA-Panarello’ case study allows students to apply sales methods and negotiation strategies to better understand the complexity of intercultural dialogue in B2B and successfully forge partnerships using a ‘glocal’ and responsible approach.

What makes the IPRA-Panarello case so interesting from an educational perspective?

This case highlights a typical situation in intercultural negotiation.

On one side, we have IPRA (2), a French company based in the Grasse region, renowned worldwide for its aroma and fragrance creations for various sectors (agri-food, cosmetics, hygiene products, etc.). Recognised for its expertise, the company sells its products in over 70 countries.

On the other hand, Panarello (3) is a family-run pastry shop established in Genoa since 1885. It exports high-quality specialities all over the world.

The case study describes a B2B meeting between IPRA and Panarello concerning the supply of organic and natural flavourings suitable for Italian pastries. Beyond a simple commercial partnership, this meeting raises issues related to intercultural negotiation, ‘glocal’ positioning and corporate social responsibility (CSR).

Putting themselves in the shoes of a business development manager newly arrived at IPRA, students discover the subtleties of B2B negotiation while taking into account the cultural differences between France and Italy. This includes issues such as taste expectations (trendy flavours versus traditional recipes), business practices (decision-making processes, quality criteria) and societal priorities, such as the demand for organic products.

They also see how two family-run SMEs can expand internationally while preserving their regional roots and values of authenticity.

How is the concept of ‘glocalization’ relevant to understanding the strategy of these companies?

The concept of ‘glocalization’ is central to understanding the strategy of IPRA and Panarello. It accurately describes a company's ability to expand into global markets while preserving its local identity.

IPRA is a good example of this: based in Provence, it exports to more than 70 countries and adapts its fragrances and flavours to the cultural specificities of each market. Panarello, meanwhile, is deeply rooted in Liguria and has been offering traditional Genoese pastries (panettone, pandoro, etc.) for over 135 years. The company has become an institution in Italy and now sells its products worldwide.

What is striking is these companies' ability to promote their local heritage (authenticity, traditional raw materials) while relying on international quality standards (ISO 9001, ISO 22000, organic certification, etc.). The result: product ranges tailored to the tastes of export markets, without losing the essence of their region of origin.

Why is intercultural negotiation a key element in this case?

When two companies from different cultures enter into discussions, negotiations are no longer limited to technical aspects such as volumes, prices or deadlines.

France and Italy are geographically close but have very different cultures, particularly in terms of negotiation style and relationship expectations. The way people communicate, codes of politeness, attitudes towards hierarchy, perceptions of time and decision-making: all these factors must be taken into account for the partnership to succeed!

Here, IPRA must prepare to convince Panarello's purchasing director while respecting Italian specificities: valuing human connections, understanding the importance of culinary tradition, and offering customised flavours suited to typical pastries. For its part, the Genoa-based company is looking for a reliable long-term partner capable of combining innovation with respect for its authenticity.

What role do innovation and technology play in IPRA's strategy? How are CSR and environmental considerations taken into account?

IPRA has placed these issues at the heart of its development strategy. The company has equipped itself with modern industrial production facilities to manufacture a wide range of flavours with consistent quality. Its teams have become increasingly international, and its agile organisation enables it to respond quickly and accurately to the needs of its customers around the world. This approach is paying off in a competitive and constantly evolving market!

Not only does IPRA guarantee the quality and safety of its products, it also adopts a responsible approach to waste management, notably by recycling test strips and installing retention basins to protect the environment. At the same time, the company invests in the well-being and loyalty of its employees through profit-sharing schemes, yoga classes, sports days, etc.

Panarello, for its part, is committed to making artisan pastries using high-quality ingredients. Today's Genoese consumers are looking for organic or natural flavours to meet the demands of a clientele that cares about their health and the planet.

Both parties share a common commitment to ethical and eco-responsible practices. This is a potential factor for convergence during negotiations.

What lessons can students learn from the IPRA-Panarello case? What advice would you give for successful intercultural negotiation?

For students studying management, marketing or international trade, this case study provides a real-life scenario from which several lessons can be learned. A thorough understanding of the cultural context is crucial to successful B2B negotiations. It is not just a question of language or competitive pricing, but of understanding the values, codes and expectations of the other party.

It is essential to know your counterpart, their company and their market well in order to be able to offer them tailored solutions. It is key to emphasise the importance of thorough preparation for a negotiation: knowing the culture, aligning societal values and identifying each party's objectives. The challenge is to anticipate the questions to ask, the arguments to put forward and the concessions that can be made.

By stepping into the shoes of IPRA's sales manager to prepare for the meeting with Panarello, students also see how intercultural negotiation is above all a convergence of shared values. It is a lever for building trust between two companies that want to explore innovative solutions together (new flavours, organic aromas, regional adaptations) and expand internationally while remaining committed to their local roots and tradition of quality.

References

(1) CCMP 2024 – N0026 – IPRA-Panarello : les enjeux de la négociation interculturelle B to B dans un monde d’arômes et de saveurs – Philippe BUCARO, Martin CHOUR – EDHEC Business School - https://www.ccmp.fr/collection-ccmp/cas-ipra-panarello-les-enjeux-de-la-negociation-interculturelle-b-to-b-dans-un-monde-daromes-et-de-saveurs

(2) IPRA (France): https://www.iprafrance.com/

(3) Panarello (Italy): https://panarello.com/en/