1. Case study:
LeClerc Machines de Cuisine
Taking Initiative
Class N°8
DUCAY Raphael FAIROUD Mehdi S**** Louis

2. Leclerc Machines de cuisine
This is a Paris manufacturer of food processors.

3. Overview / Background
LeClerc Machines de cuisine
Exports his products to U.S.
Via Creative Cuisines Inc. (exclusively)

4. Overview / Background

5. Characters
LeClerc Machines
de Cuisine
• Mr. François Jost
(Overseas Sales
Manager)
Creative Cuisines
• Mr. Bill Lewis (President)
• Marie Dominic (Firm’s Attorney)
• Jane Watson (Sales Manager)
Reliable Restaurant
• Mr.Albert Rose (President)
Feingold Advertising (Creative Cuisines’sAd Agency)
• Sandra Jordan (Account Executive)

6. Dialogue

7. Dialogue
Mr. Bill Lewis
 Wants to order and examine a
Model of a Leclerc product sold by
Reliable.
 Confirms that sales are off about 30
% in July 1994.

8. Dialogue
Mr. Bill Lewis
 Wants to order and examine a
Model of a Leclerc product sold by
Reliable.
 Confirms that sales are off about 30
% in July 1994.
Ms. Marie Dominic
On the legal field:
 It depends on how R is getting the LeClerc products.
 It depends if LeClerc products sold by R are counterfeits or not.
 Write a letter to R implying possible legalities.
 Advise Mr. Lewis to adopt some new marketing tactics to counter
this offensive.

9. Dialogue
Mr. Bill Lewis
 Wants to order and examine a
Model of a Leclerc product sold by
Reliable.
 Confirms that sales are off about 30
% in July 1994.
Ms. Marie Dominic
On the legal field:
 It depends on how R is getting the LeClerc products.
 It depends if LeClerc products sold by R are counterfeits or not.
 Write a letter to R implying possible legalities.
 Advise Mr. Lewis to adopt some new marketing tactics to counter
this offensive.
LeClerc Machines de cuisines
 Claims to have no knowledge of the R
activity and its shipments.

10. Dialogue
Mr. Bill Lewis
 Wants to order and examine a
Model of a Leclerc product sold by
Reliable.
 Confirms that sales are off about 30
% in July 1994.
Ms. Marie Dominic
On the legal field:
 It depends on how Reliable is getting the LeClerc products.
 It depends if LeClerc products sold by Reliable are counterfeits or
not.
 Write a letter to Reliable implying possible legalities.
 Advise Mr. Lewis to adopt some new marketing tactics to counter
this offensive.
LeClerc Machines de cuisines
 Claims to haven’t any knowledge of the
Reliable activity and its shipments.
Reliable Restaurant and home Kitchen
Supplies
 At first sight, it sells a genuine LeClerc products.
 Offer a manufacturer’s warranty and this warranty can be legal.
 Reliable’s LeClerc products could come from Canadians or
Europeans distributors.

11. Exhibit 1

12. Exhibit 2

13. Exhibit 3

14. Exhibit 4

15. Exhibit 5

16. Exhibit 6

17. Part 2 : Strengths and weaknesses
of the existing situation

18. Strengths and weaknesses
1) Production & Marketing
Diversity of the production (Bckgrnd)
Globality of the production (Bckgrnd)
Agressive marketing of products (Bckgrnd)
Good initial forecasts (Dial)
Good decision making (Dial)
Greediness of the marketing policy (Bckgrnd)

19. Strengths and weaknesses
2) Communication & Management
Good communication between the CC president
and the attorney of the company (Dial)
Good communication between the CC president
and the advertising service of the company (Ex6)
Opportunity for CC to kill one concurrent (Bckgrnd)
Huge lack of control and communication
between LC and his distributors (Bckgrnd)

20. Strengths and weaknesses
3) Pricing, costs & advertising
Good reactivity to limit adaptation costs (Ex4, Ex5)
CC have better image than RR (Bckgnd)
Intelligent focus of new ads (Ex6)
Lack of competitivity (Ex4, Ex5)
Less sales (Dial)
Less profits on each sale (Ex 4)

21. Strengths and weaknesses
4) Legal responsibility
It’s own and effective legal departement (Bckgnd)
Quick reactivity to protect the company in the
future (Ex1, Ex2)
Illegality of RR could be proved (Ex2, Ex3)
A mean of pressure against RR (Ex4, Ex5)
Real guilty still unknown (Dial, Ex3)

22. Summary

23. Problem
How can Creative Cuisines take the lead in term of performance on
Reliable or any other concurrent ?

24. Solution 1
Shut down Reliable by legal means
• Creative Cuisines will be the
only company in the market
to offer Leclerc’s products
• Reliable’s Leclerc products are genuine
• They are not getting them directly from Leclerc
• Costs in time and money
• Will not necessarily resolve our problems

25. Solution 2
Creation of a phone/mail order channel
• Compete with Reliable
• Attract new clients
• Costs
• Need to hire more employees

26. Solution 3
Work with another mail-order company
• Compete with Reliable
• Attract new clients
• No new employees to hire
• Costs
• Would involve a new intermediate

27. Solution 4
Work with Reliable
• Reliable could become a
Creative Cuisines distribution
channel
• No more competitor
• Attract new clients
• Creative Cuisines will have to split benefits

28. Solution 5
Creation of more channels of distribution (internet, phone, mail, other retail chains…)
• More chance to win the
competition with Reliable
• Creative Cuisines will be
covering all markets
• The brand will become more
important in people’s mind if
they see it everywhere
• Attract new clients
• Costs
• Would need to hire more employees
• So new offices

29. Best solution
Solution 5
• More chance to win the
competition with Reliable
• Creative Cuisines will be
covering all markets
• The brand will become more
important in people’s mind if
they see it everywhere
• Attract new clients
• Costs
• Would need to hire more employees
• So new offices
Creation of more channels of distribution (internet, phone, mail, other retail chains…)

30. The end, thank you
DUCAY Raphael FAIROUD Mehdi S**** Louis