maison_ladure_opening_soho_location_by_fall.php; “Laduree:
A Clean Affair with Macarons!" Arab News, June 12, 2012.
This case was written by Sandrine Heitz-Spahn, Universite De Lorraine
and Michael Levy, Babson College.
DISCUSSION QUESTIONS
1. What is Ladurée's target market and retail strategy in
the United States?
2. What are the key steps Ladurée has to go through
when entering the American market?
3. Explain the reasons Ladurée owns its store in some
countries and uses franchising with local licensees in
others.
4. Which type(s) of retailing format(s) and location(s)
are best suited to match Ladurée's marketing strateg
in the United States?
5. Could Ladurée sell its products online? Why or why
not? Explain.
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Canes SECTION
557
CASE 6 Parisian Patisserie "Maison Ladurée" Goes Global
Ladurée, a famous French pastry company and known
worldwide for it macarons, has recently entered the
U.S. market, which produces opportunities—but also
challenges--for this company.
It all began in 1862, when Louis Ernest Ladurée created
a bakery at 16 rue Royale in Paris, where the most presti-
gious names in French luxury goods were already located.
Ernest Ladurée's wife had the idea of mixing the Parisian
café and pastry shop, which gave birth to one of the first tea
salons in the city. At the beginning of the twentieth century,
Pierre Desfontaines, second cousin of Louis Ernest Ladu-
rée, first thought of taking two macaron shells (almond
meringue cakes) and joining them with ganache, a creamy
smooth filling that gave birth to Ladurée's macarons.
This tea salon imbued with a refined atmosphere and
charged with history seduced David Holder and his father,
Francis Holder, founder of the Holder Group. The family
would have lunch at the original Ladurée every Saturday.
When they found out that the company was for sale by
descendents of the Ladurée family, they bought it, having
convinced the owners that they would preserve its heri-
tage. David Holder likes to tell people that he woke up a
sleeping beauty with their macarons. Indeed, macarons in
general were not very popular at the time they bought the
company in 1997.
Since then, Holder has run Ladurée more as a maison
de mode rather than a pastry brand and wants to keep a
sense of exclusiveness and luxury. Macarons are his most
profitable pastry, which accounts for 40 percent of the
sales revenues and comprises 70 percent of the take-away
sales. They boast 17 subtle flavors, which change accord-
ing to the season. In addition to its core range
of maca-
rons packed in pale mauve and pistachio boxes, Ladurée
also retails its own pastries, coffee, chocolates, ice cream
macarons, candies, perfumed candles, bath and body
products, and fragrances.
Ladurée has successfully understood the challenge of
satisfying the needs of a hip and global clientele and to
position itself as baute couture of the food market. Since
1997, Ladurée has been expanding, first in several loca-
tions within Paris, where it sells 55,000 macarons a day
(four boutiques in Paris and one at Chateau de Versailles,
boutiques and “coaches" in Orly and Roissy airports, and a
boutique in Saint-Tropez), then to other cities, starting
with London in 2005. There are currently 39 Ladurée
stores in 14 countries. Around the world, each boutique
558
SECTION V Cases
Brazil, South Korea, Morocco, and Qatar in 2012 and in
sticks to the Parisian Ladurée signature style. The shops
are done in pastel green with traditional decorative
accents, mirrors, and dark wood, meant to showcase
chocolates and tabletop items and to respect the French
tea salon tradition. Macarons and chocolates are made
exclusively in Paris for all the Ladurée shops to protect
the secret recipes. Different types of retail formats exist,
from standalone retail locations featuring a small foot-
print, few seats, and excluding pastries and alcohol in Aus-
tralia, for example, to larger tea salon sites, which are
essentially stores with a store in department stores, such as
in Printemps in France and Harrod's in the United King-
dom, or within malls such as in the Centria Mall in Ri-
yadh, the Saudi capital.
Ladurée opened its first Australian store in Sydney in
July 2012 with its traditional French fit-out. While the
well-known jet-set places such as Cannes, Megève, and
Courchevel, either by investing directly or working in
partnership with local companies. The Holder family
never invests directly in countries where political, eco-
nomical, or religious risk is possible. They own and oper-
ate their stores in France, the United States, Japan, and
the United Kingdom, for all other locations, boutiques are
owned by local franchisees.
Source: www.laduree.com Carla Bridge."Ladurée." Iwide Retin
May 25, 2012; Axel Tardieu "Ladunte arrive à New York Par." September 7
2011, http://frenchmorning.com/my/2011/09/07/ouverture-de-la-
premiere-boutique-laduree-a-new-yorld; Anne-Laure Pham. "Ladurée
ouvre boutique à New York," August 31, 2011. http//weekend leviber
tendance/culinaire/actualite-culinaire/adurec-ouvre-boutique-a-new
york/article-1195094843984.htm (accessed July 23, 2012), Catherine
company has eight baking facilities around the world,
Dubouloz, "Nous avons d'importants projets de développement à
Australian products are frozen and shipped from
l'international" and "A partir de l'automne 2011, les macarons de
Ladurée seront produits en Gruyère," Le Temps, November 19, 2010;
Switzerland, where a production plant is located. David
Mathilde Visseyrias, "Ladurée, l'autre pépite familiale," Le Figaro,
Holder was looking for production plant locations in the
December 17, 2010; Florence Fabricant "Macarons and Ice Cream,
pany
Middle East, in eastern Europe and in Africa. The com-
Direct from Paris to the Upper East Side," New York Times, August, 30,
chose Switzerland because of social peace, raw mate-
2011; Hannah Leighton, "Maison Ladurée to Open Soho Location
rials quality, and fresh air. Holder is not afraid to mention
this Fall," June 27, 2012, http://ny.eater.com/archives/2012/06/
the Swiss-made origin of its macarons.
maison_ladure_opening_soho location_by_fall.php: "Laduree:
Ladurée entered the U.S. market in August 2011 by A Clean Affair with Macarons!" Arab News, June 12, 2012.
opening a shop on Madison Avenue in New York. After
This case was written by Sandrine Heitz-Spahn, Universite De Lorraine
the Japenese, Americans are Ladurée's best customers in
and Michael Levy, Babson College.
the Parisian boutiques. Macarons are all flown in from
Paris. The other pastries, shipped from France are stored
in refrigerators. If they are successful in the U.S., the DISCUSSION QUESTIONS
Holder family will open a pastry lab in New York. With a
1. What is Ladurée's target market and retail strategy i
$2.70 per unit selling price, all 17 Ladurée flavors will be
the United States?
available, plus a cinnamon-raisin flavor macaron espe-
2. What are the key steps Ladurée has to go through
cially created for and only available in the Big Apple bou-
when entering the American market?
tique. Ladurée expanded to Soho, on West Broadway at
Broome Street, in the fall of 2012. The new location 3. Explain the reasons Ladurée owns its store in some
countries and uses franchising with local licensees
boasts a retail shop and a tearoom plus a full-service res-
taurant with about 200 seats, private dining rooms, and a
others.
garden terrace. The new location hosts two chefs from
4. Which type(s) of retailing format(s) and location's
France to prepare everything except the macarons and are best suited to match Ladurée's marketing stra-
in the United States?
chocolates.
After New York, Ladurée plans to expand to other
5. Could Ladurée sell its products online? Why or w
American cities, such as Los Angeles and San Francisco.
not? Explain
The retailer also plans to open stores in Hong Kong,
A *0
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RETAIL SEGMENTATION CASE ASSIGNMENT
Parisian Patisserie "Maison Laudree" Goes Global
MKTG 1105
PAGE 557 OF TEXTBOOK - CASE 6
The case details the strategies, retail target market segmentation, merchandising, operations, and overall
marketing strategy of a French firm globalizing their operations and considering competitive positions for
their product offering in the U.S. Market.
DIRECTIONS:
Use the questions at the end of the case study as a framework to answer and develop your case
assignment. This would also include gathering secondary research. Although your opinion is warranted, it
has to be substantiated by the research findings you include.
Make sure to include and cite secondary sources in your Works Cited page. Remember that writing a
marketing case is fundamentally about analyzing a business problem and locating information that can
help you solve that problem. This information can be both primary data or secondary data. In any case,
personal opinion is not enough. You need to find/include sources in your case. The APA or MLA formats are
acceptable.
Make sure you draw conclusions. At the college level, the focus shifts from summarizing information to
drawing conclusions about what you have read/learned into an actionable plan. That is what the
conclusions are about. I realize that you are all beginning marketing students and your conclusions will be
much different as your careers and education progress. Nevertheless, it is important that you become
comfortable with making recommendations based on the information you found. That is at the heart of
what a business pays for.
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fragment errors. You might consider using a friend/family member to review your paper or make use of the
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able to express your ideas grammatically and clearly is paramount.
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