Download - Lerclerc machines de cuisine
LeClerc Machines de
Cuisine
GROENDU Marine
HABHOUB Audrey
305
Overview of the case
Leclerc Machines de cuisine –
Paris based food processors manufacturer
Creative Cuisines, Inc. –
Atlanta based U.S Distributor
Reliable Restaurants and Home Kitchen Supplies –
New Jersey based mail order firm
ActorsBill Lewis – President of Creative Cuisine
Jane Watson – Sales Manager of Creative Cuisine
Marie Dominic – Bill Lewis’ attorney
François Jost – Leclerc’s Overseas Sales Manager
Albert Rose – President of Reliable restaurant and Home Kitchen
Supplies
Sandra Jordan – Account Executive at Creative Cuisine’s
advertising agency
The different exhibits
The Dialogue
Synonpsis
• Dialogue between Bill Lewis, President of Creative Cuisine and his attorney, Marie Dominic.
• They are discussing possible legal actions against Reliable Restaurant and Home Kitchen Supplies.
• The attorney explains that it is illegal if :
• Leclerc is violating the exclusive distribution agreement
• The products sold by Reliable Restaurant and Home Kitchen Supplies are counterfeits and not genuine Leclerc products.
• Then the attorney brings up the idea that Reliable might be using Creative Cuisine.
• We also learn that the sales have decrease of about 30%.
• Finally, the attorney suggests an action plan to begin.
Exhibit n°1
Synopsis
• It’s a copy of the letter sent by Leclerc to its
distributors.
• The letter explains the problem faced by Creative
Cuisine and Leclerc : Reliable, an other distributor is
selling LeClerc products in the USA while Leclerc
have an exclusive distribution agreement with
Creative Cuisine.
• Finally, Leclerc warns all its distributors that no
violation of this agreement will be tolarated.
Exhibit n°2
Synopsis
• It’s a copy of the letter sent by Marie Dominic, the
attorney of Creative Cuisine, to Albert Rose, President,
Reliable Restaurant and Home Kitchen Supplies.
• She explains how selling Leclerc products is a violation
of the exclusive distribution agreement between LeClerc
Machines de Cuisine and Creative Cuisines.
• She politely tells Reliable that it has to stop right away if
they don’t want Creative Cuisine to sue them.
Exhibit n°3
Synopsis
• It’s a memo from Jane Watson, sale manager of
Creative Cuisine to Bill Lewis, president of Creative
Cuisine.
• She lets Lewis knows that the products that Reliable
are selling are genuine Leclerc product, be cause she
received that they decided to order.
• She also says that the warranty are identical to the
one issued by LeClerc.
Exhibit n°4
Synopsis
• It’s a memo from Jane Watson, sales manager of
Creative Cuisine to all the sales staff.
• She lets the staff know the marketing decision that
Creative Cuisine has taken in order to compete with
Reliable:
• Lowering the price of 2 products LMC Professional
Food Processor and LMC Standard Food Processor.
• Ads in their magazine will be released to inform their
clients.
Exhibit n°5
Synopsis
• It’s an example of the ads that Creative Cuisine
made in order to compete with Reliable.
• It informs the clients that there is a 30% discount on
two different products.
• This ad was advertised in a lots of Consumer Food
Magazines and Professional Journals in order to
reach a maximum of people.
Exhibit n°6
Synopsis
• It’s a letter from Sandra Jordan, Account Executive at Feingold Advertising, Creative Cuisine's Advertising Agency to Bill Lewis.
• It’s a summary of the conversation they both hadearlier that day, about the new ad and the new placement of this ad.
• This new ad will have to report Reliable « pirate » actions. Also, it must inform customers thatwarranties won’t be honored and that CreativeCuisine is lowering prices.
Strenghts and
weaknesses
Existing situation
Strenghts Weaknesses
• Political Environment: in favor of
Creative Cuisine because of their
exclusive agreement with Leclerc has
been violated.
• Comunication: Good because all of the
actions that the attorney and Bill Lewis
thougth need to be made were made.
• Marketing: the new action plan may
attract new customers.
• Financial: the sales are decreasing of
about 30%.
• Ethics: They are going to make bad
publicity for Reliable in order to get
their market share back.
• Competition: they have to deal with
unexpected competition which is
jeopardizing their market share
Statement of the problem
• By selling Leclerc Product, Reliable Restaurant and
Home Kitchen Supplies is violating Leclerc and
Creative Cuisine exclusive distribution agreement.
• What should Creative do in order to stop Reliable
from selling Leclerc products which is creating
unexpected competition ?
Review of possible
options
#1: Maintain the status quo
Advantages Disadvantages
• New marketing plan may attract new
customers.
• Suing Reliable may allow the company
to receive damages.
• Unxepected competition which forces
Creative Cuisine to lower its prices.
• Sales are decreasing.
• Loosing the monopoly of the
distribution of Leclerc product.
#2 :Creative and Leclerc gather to sue
Reliable and launch common Ad campaign
Advantages Disadvantages
• Stronger position against Reliable and
it’s unknown illegal supplier.
• Stronger position on the market as
Leclerc is promoting it’s distributor
(Bosch example).
• Reliable’s prices still have an advantage
competitionwise.
• The unknown supplier still can sell to
other companies.
• It’s allowing Reliable to break the
exclusive agreement they have with
Leclerc.
#3:Creative Cuisine buys Reliable and
presses charges against ex supplier
Advantages Disadvantages
• Creative overtakes the actions of
Reliable and can finally position itself
back as a leader.
• May receive damages from suing the ex
supplier.
• Financial aspects of pressing charges
which can be costly in addition to buying
Reliable.
• Suing procedure are expensive and quite
long.
#4: Creative stops selling all
identical products with Reliable
Advantages Disadvantages
• Might be time for a repositionning of
the brand and horizontal integration.
• Reliable earns all market shares from
Creative.
• Contract with Leclerc might become
obsolete.
• Loosing a big source of revenue.
Solution chosen
?
#2 :Creative and Leclerc gather to sue
Reliable and launch common Ad campaign
Advantages Disadvantages
• Stronger position against Reliable and
it’s unknown illegal supplier.
• Stronger position on the market as
Leclerc is promoting it’s distributor
(Bosch example).
• Reliable’s prices still have an advantage
competitionwise.
• The unknown supplier still can sell to
other companies.
• It’s allowing Reliable to break the
exclusive agreement they have with
Leclerc.