leclerc machine de cuisine
TRANSCRIPT
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BA CHIR FRA DJ
PA UL VIA RNA UD
TRISTA N CÉRON
Case Study 4
Le Clerc Machines de Cuisine
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3 Companies
- LeClerc Machines de Cuisine : Manufacturer of the food processors
- Creative Cuisine : Exclusive U.S. distributor for LMC
-Reliable Restaurant and Home Kitchen Supplies : Unofficial U.S. Distributor
Based in Paris, France
Based in Atlanta, Georgia
Based in New Jersey
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Protagonists
CreativeCuisines
Marie Dominic
Attorney
Sandra Jordan
AdvertisingAccount
Executive
Bill LewisPresident
Jane Watson
Sales Manager
Reliable
Albert RosePresident
LeClerc
François Jost
Overseas Sale Manager
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Dialogue
Creative Cuisines sales are lowering in July
Incertitude on how Reliable got the food processors
Reliable’s products seem to be genuine
A lawsuit against Reliable won’t be easy
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Exhibit 1
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Exhibit 2
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Exhibit 3
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Exhibit 4
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Exhibit 5
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Overview of the Exhibits
1. Letter sent by LeClerc to all distributors to find the ReliableRestaurant supplier
1. Letter from Dominic to the president of Reliable Restaurant to inform them that Creative Cuisine has the exclusivity
1. Memo from Jane Watson to Bill Lewis to certifiate that Reliable’sfood processors are genuine
1. Memo from Jane Watson to Creative Cuisines Sale Department to inform that prices are lowering
1. Reliable’s Ad in magazines for mail order
1. Letter from Sandra Jordan to Bill Lewis to confirm the new agressive advertising
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Current Situation
• Communication• Intercultural Differences• Ethics & Legality• Management• Advertising & Pricing
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Communication
• Good Communication between Bill Lewis and Jane Watson
• Marie Dominic is really concerned
• No answers from Reliable
• No answers from the other LMC’s distributors
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Intercultural Differences
• No cultural conflict in Creative Cuisines
• No significative differences between French and American business
• LeClerc may not care about US competition as long as they sell their products
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Ethics and Legality
• Reliable may be in illegality
• Good reactivity to protect CC’s interests
• The contract between Creative and LMC is clear
• The way Reliable obtained the products is not very clear
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Management
• Efficient teamwork in Creative Cuisines
• Fast response against Reliable’s low prices
• LMC doesn’t know well their distributors
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Pricing, Marketing and Advertising
• Good reaction with aggressive advertising
• CC lowers the prices to be more competitive
• Less sales due to the absence of a low costdistribution channel
• Less profits on the sales
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Statement of Problems
What can we do against Reliable arrival on the market?
Is this arrival legal or not?
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Options
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Option n°1 :
Status Quo
Do nothing and wait for the results of the new price policy
No more time or money spent in this case
The problem still existsIncertitudes about the economical results
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Option n°2 :
Create our own low-cost distribution network tocompete Reliable
Creative Cuisines will be more competitiveIncrease of sales
Costs a lot of money to set upThere could be a more agressive response in termsof prices from Reliable
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Option n°3 :
Create a new partnership with Reliable
No more problems
Creative Cuisines and Reliable may not find an agreement
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Option n°4 :
Close Reliable by legal means
Creative will be the leader on the market
Costs a lot of time and money to set upNot sure if Reliable’s actions are illegal
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Option n°5 :
Stop the partnership between Creative Cuisines and LeClerc
No more problems
We lose a big opportunity on the Amercan market
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Overview of the options
Option n°1 : Do nothing and wait for the results of the new price policy
Option n°2 : Create our own low-cost distribution network to compete Reliable
Option n°3 : Create a new partnership with Reliable
Option n°4 : Close Reliable by legal means
Option n°5 : Stop the partnership between Creative Cuisines and LeClerc