Internationalization case study of the bakery Maison Kayser, made for Skema Business School. By Students of the master International Marketing and Business Development (2015).

1. MAISON ERIC KAYSER
INTERNATIONAL EXPANSION CASE STUDY
ESTHER DOAN – STEVEN BOROBIA – YANNICK MOLLEMA – YUFEI
CHEN

2. AGENDA
I. Eric Kayser first opening in Japan
II. Expansion Steps (from 2001 to 2014)
III. Maison’s Kayser key strenght &
weaknesses
IV. Next expansion recommendation
V. « L’art de vivre à la Française »
MAISON ERIC KAYSER CASE STUDY

3. AGENDA
I. Eric Kayser first opening in Japan
II. Expansion Steps (from 2001 to 2014)
III. Maison’s Kayser key strenght &
weaknesses
IV. Next expansion recommendation
V. « L’art de vivre à la Française »
MAISON ERIC KAYSER CASE STUDY

4. Japan : the first step to internationalization
• Shuichiro Kimura : Eric Kayser’s Japanese partner and founder of Boulangerie
Eric Kayser Japan.
• When he was an apprentice at Eric Kayser’s bakery in France, Eric Kayser
suggested he opens a store in Japan.
• In July, 2001, Shuichiro Kimura borrowed money from his aunt, founded a
store in Tokyo and launched the first Maison Kayser outside France.
MAISON ERIC KAYSER CASE STUDYSpring 2015 – SKEMA IMBD |

5. A difficult debut
In the beggining, the bakery encountered some challenges:
• Japanese people didn’t know about the brand.
• “French bread” had a different meaning in japan (soft crusted bread).
• Japanese-style bread were very trendy and preferred by customers.
• Low marketing budget
VS
melon-pan French bread
MAISON ERIC KAYSER CASE STUDYSpring 2015 – SKEMA IMBD |
curry-pan
Only 14 baguettes were sold per day.

6. How Maison Kayser overcame the challenge
•Sales promotion to increase brand awareness.
• Tasting booth
•Word-of-mouth from regular international customers.
•Good quality => good customer satisfaction => they came back to Maison
Kayser’s bakery for important occasions.
•Japan Times introduced Maison Kayser’s baguettes as “the best in Japan”.
MAISON ERIC KAYSER CASE STUDYSpring 2015 – SKEMA IMBD |
5 Months after store opening :
• Around 70 baguettes were sold a day
• Maison Kayser’s success and sales kept increasing since then.

7. Why Japan?
•French pastries are very popular in Japan
•High purchasing power in Japanese market
•An excellent platform for expansion in Southeast Asia
and Singapore
Start International
MAISON ERIC KAYSER CASE STUDYSpring 2015 – SKEMA IMBD |

8. AGENDA
I. Eric Kayser first opening in Japan
II. Expansion Steps (from 2001 to 2014)
III. Maison’s Kayser key strenght &
weaknesses
IV. Next expansion recommendation
V. « L’art de vivre à la Française »
MAISON ERIC KAYSER CASE STUDY

9. Expansion step: First openings
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY
2001 JAPAN
Today :
16 shops in Tokyo,
5 shops in other cities.
TAÏWAN 2007
Today:
1 shop in Taipei
2009 EMIRATES UNITED ARAB
Today:
2 shops in Dubai
SOUTH KOREA
Today:
4 shops in Seoul
2010
MORROCO
Today:
1 shop in Tanger

10. Expansion step: Exponential growth
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY
2011
SENEGAL
Today:
1 Shop in Dakar
SINGAPOUR
Today:
3 Shops in
Singapour
PORTUGAL
Today:
3 Shops in
LisbonneCHINA
Today:
4 Shops in Hong
Kong
USA
Today:
6 Shops in New-
York
2012
CONGO
Today:
1 Shop in
Kinshassa
2013
CHILI
Today:
2 shops in Santiago
PHILLIPINES
Today:
4 Shops in Manila
CAMBODIA
Today:
3 Shops in Phnom Penh
2014
TUNISIA
Today:
1 shop in Tunis
2014
COLUMBIA
Today:
1 Shopp in Bogota
MEXICO
Today:
3 Shops in Mexico city
THAILAND 2015
Today:
1 Shop in Bangkok 201? SAUDI ARABIA
EGYPT

11. Keywords to describe the expansion 1/3
1. ACCELERATED GROWTH:
o more than 100 stores in 20 countries since 2001 but the process accelerated since 2010.
2. PREMIUM LOCATION:
o Shops are located in main cities : Tokyo, Dubai, New york, Seoul…
o Shops are located in luxury areas : Ginza Luxury Mall in Japan (Tokyo), Manhattan (New-York)…
3. AGGRESSIVE EXPANSION: planned for future openings (mainly in Asia)
to strenghten Maison Kayser’s presence.
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

12. Keywords 2/3
4. FRENCH CULTURE, WORLDWIDE
To focus on developing the group on
the international scale (especially Asia);
To spread the French culture all other
the world.
5. DIVERSE SHOP TYPES
Maison Kayser’s stores exists in several
concepts worldwide To attract a wide
range of customers:
Corners, Retail Bakeries, Bakery Cafés,
or Bakery Restaurants.
Customers of all ages can enjoy Maison
Kayser’s food on any occasion.
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

13. Keywords 3/43
6. FRENCH SKILLS CAN ONLY BE ACQUIRED IN FRANCE / FROM A
FRENCH MASTER.
When opening new shops, Maison Kayser sends
French chefs (or partners with a French chef to
open a franchise)
Locally recruited employees are then sent back
to France for a training period.
By bringing them back to Paris for a formation,
he enables them to learn the French tradition of
bakery they would implement later on in his
shops.
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

14. A dynamic and flexible internationalization strategy
(AAA strategy model):
Aggregation:
◦ Same approach to « french culinary » in all stores.
◦ Same french names for products in all stores, same traditional bakery design.
◦ Planning to open schools in strategic locations in Asia, USA and Middle-East to
concentrate training of bakers.
Adaptation:
◦ Variation: products are adapted to match local tastes.
◦ Externalization: by establishing partnerships to open new shops as franchises
(mainly in developped regions: New York, Portugal…).
MAISON ERIC KAYSER CASE STUDYSpring 2015 – SKEMA IMBD |
AggregationAdaptation
Arbitrage

15. AGENDA
I. Eric Kayser first opening in Japan
II. Expansion Steps (from 2001 to 2014)
III. Maison’s Kayser key strenght &
weaknesses
IV. Next expansion recommendation
V. « L’art de vivre à la Française »
MAISON ERIC KAYSER CASE STUDY

16. Key factors of succes(1/3): INNOVATION
•Unique « Fermentolevain » .A technology to
create yeast that gives bread a constant perfect
taste.
o breads can then be produced in countries far from Europe.
•Constant innovation in shops organization to
improve space arrangment and match current
trends :
o First opened Boulangerie-restaurant as a cultural innovation.
o Combination of Bakery, Pastries and sandwich bar
(Boulangerie & Patisserie)
•Constant Improvement and innovation in
recipes and good reactivity to current event.
o 3 new customized recipes in 2014 for the World Cup in Brazil
o New recipes every season
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

17. Key factors of succes(2/3): ADAPTATION
•Adaptation to local tastes and flavors, every bakery varies from country to
country.
•Adaptation of Maison Kayser’s shops to local lifestyles.
o Asian bakeries must include a space to savour the sweet in the shop
•Understanding of consumer’s global focus on healthy products and lifestyle
(gluten-free products, bio-pastries, healthy salads).
MAISON ERIC KAYSER CASE STUDYSpring 2015 – SKEMA IMBD |

18. Key factors of succes(3/3): TRADITION
•Eric Kayser is considered one of France’s best and
most innovative bakers.
o Author of books and trains young bakers at the French National
Institute of Baking and Patisserie.
o Voted in the top 10 best bakery in North-America.
o Several prizes in Japan.
•High focus on quality: bakers receive extensive
training in Paris.
•Focus on handmade bread and french
craftsmanship.
•French are known for Baguettes, pastries and
gastronomy : “Art de Vivre”
MAISON ERIC KAYSER CASE STUDYSpring 2015 – SKEMA IMBD |

19. Weaknesses
•Fast expansion can result in massive pressure on
management, headquarters and logistics.
o Eric Kayser use of its unique Fermentolevain has raised high cost and
customs problems when imported in foreign countries.
o Complex logistic in material and workforce (that comes directly from
France).
•Selecting and opening of new shops require a lot
investments and implies a very slow process.
o Every partner is carrefully selected.
o The opening process isn’t fast.
•Training of staff and employees(travel&training in/to
Paris) is expensive.
•Opening several shops in a short period of time dilute the
fundings and can affect quality.
MAISON ERIC KAYSER CASE STUDYSpring 2015 – SKEMA IMBD |

20. AGENDA
I. Eric Kayser first opening in Japan
II. Expansion Steps (from 2001 to 2014)
III. Maison’s Kayser key strenght &
weaknesses
IV. Next expansion recommendation
V. « L’art de vivre à la Française »
MAISON ERIC KAYSER CASE STUDY

21. Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

22. VIETNAM
GENERAL COUNTRY FACTS
•Situated on the Indochina Peninsula
•Communist State.
•One of south-east Asia's fastest-growing
economies (seeks to become a developed
nation by 2020.)
•Member of the Trans-Pacific Partnership
talks (increasing market openness and
reduced other tariff and non-tariff barriers)
•Has a French cultural influence from the
colonial era that influenced Vietnamese
gastronomy.
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY
Hanoi
(Capital)
Ho-Chi-
Minh /
Saigon
(Largest
City)

23. CAGE distance framework
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY
CULTURAL DISTANCE
- Different language:
Vietnamese (some heritage
from French words)
- Asian culture
- Different religion:
Vietnamese folk religion
- Totally different social norm
ADMINISTRATIVE DISTANCE
- Communist government
- Ancient colonial ties still
exist in the mind of people /
in historical buildings
- Member of the OIF
(international organization of
the francophonie)
ECONOMICAL DISTANCE
- Different currency (Dong)
- Long term economical
partnership with french
investors
- No minimum wages
- Emerging country
GEOGRAPHICAL DISTANCE
- 10000 km between France
and Vietnam
- 5 to 6 hours time difference
- Tropical climate

24. SWOT ANALYSIS : Market analysis
OPPORTUNITIES
•French bread is part of traditional Vietnamese meals
•Vietnam is a developing country with more and more purchasing power
(rising income) : the wealthy urban centres of Hanoi and Ho Chi Minh City
now provide highly receptive consumer audiences.
•There is a westernization of the lifestyle. (International food scene in main
cities). Increasing demand for western food.
•The word cake (“banh”) in Vietnam covers more than 200 of cakes, but they
are not always sweet or made from butter and flour. There are
opportunities in making very innovative cakes.
•French Bakery is well liked in Vietnam (many companies take French names
to seduce customers)
o Example : tous les jours (Korean brand)
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

25. SWOT ANALYSIS : Market analysis
THREATS
•Relatively few competition, but some local brands and chains are well
established (Kinh Do, ABC Bakery)
•Like Japan, Vietnam have adapted French pastries to the taste of the
Vietnamese culture.
o Example: the French baguette is made with a softer bread
•Most Vietnamese still purchase traditional pastries made from rice or
beans for important occasions, and may visit Maison Kayser occasionaly
only to get a taste of French bakery.
o Example : it’s very unlikely that French cakes will replace moonlight cake (autumn) or the New
Year cake.
•Lingering country risks (classed from CCC to B according to The
Economist Intelligence Unit - 2013) mainly due to corruption and
troubled finance sector.
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

26. SWOT ANALYSIS : Eric Kayser
STRENGHT
•Maison Kayser already have the knowledge of the Pacific Asia Market.
o Example : Closest to Vietnam, expansion in Cambodia and Thailand.
•Ability to adapt products to local markets/taste
•Vietnamese people are very sensitive to the “French craftsmanship”
•Real French name (compared to “fake” French brands) : “Maison
Kayser”
•Fermento Levain technology that allows perfect bread even in hot-
climate countries.
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

27. SWOT ANALYSIS : Eric Kayser
WEAKNESSES
•Expensive set-up cost (importing material from France).
•Maison Kayser aims to use local ingredients (may be difficult in
Vietnam).
•However, Importing raw material from France can be very expensive.
•If Maison Kayser truly research perfection and quality, price may go up
and become too expensive for the local market.
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

28. SWOT ANALYSIS : Conclusion
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY
Maison Kayser possess a
good adaptation capacity that
will allow for a smooth
implantation.
STRENGTHS
Vietnam is a very receptive
market to French bakery, its
increasing purchasing power
among young people
guarantee a strong customer
base.
OPORTUNITIES
The bakery will require
special material with high
installation cost compared to
an implementation in middle
east or America.
WEAKNESSES
THREATS
S W
O T Some brands are present on
the market for a longer time
and are well endorsed in the
consumers’ mind.
The country’s risk is still high.
The Vietnamese market presents good expansion opportunities, some difficulties can
arise from the country risks and the high investment cost, but Maison Kayser possess the
knowledge and key strenght to overcome them.

29. Our recommendations
•Location:
Start by one of the two biggest cities: either the Capital (Hanoi) or Ho-chi-
Minh.
- In the economic center of the City (Example: district 1 in HCM)
- In large and luxurious malls around the city (Example : Vincom Mega Mall in
Hanoi)
•Shop style:
Open a café-bakery that includes : Traditional bread, sandwiches and pastries
with the ability to consume in the shop.
•Ingredient:
May be needed to adjust the recipe and adapt the ingredient with local flour
(to counter the high costs of important flour from France.)
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

30. AGENDA
I. Eric Kayser first opening in Japan
II. Expansion Steps (from 2001 to 2014)
III. Maison’s Kayser key strenght &
weaknesses
IV. Next expansion recommendation
V. « L’art de vivre à la Française »
MAISON ERIC KAYSER CASE STUDY

31. What is the french « Art de Vivre » ?
• 3 main categories :
• Amazing gastronomic food
• A large choice of cheese
• The best red wine in the world
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

32. French « Art de Vivre »
• French food in Unesco program since 2010
o “An original blend of conviviality and gastronomy, where the French gather
around a dressed table to share quality dishes accompanied by an appropriate
wine.” (Unesco)
• Large variety of amazing cheeses
o More than 1600 different cheeses
• French red wine is known to be the best in the world
o French wines are seen in the world to be among of the best / the best in the
world.
o The relation between France and wine started around 425 BC
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

33. Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

34. Red wine in the world
•Is french red wine the best in the world ?
•« when it comes to quality and variety, France still rules » (Mike
Steinberger, oenologist writer)
•France is still seen today as the world’s best wine producer.
•Drinking a french red wine is seen as classy and swanky
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

35. Red wine and french « Art de Vivre »
86% of french people think wine is an important
part of the french « Art de Vivre » (IFOP)
« Wine is one of the main symbols of the french
culture, and a major point of the french « Art de
Vivre » » (Vin & Société)
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

36. Conclusion
•The french culinary « Art de Vivre » represent
amazing food, a large choice of cheeses, and
red wine.
•Red wine is an important symbol of the french
« Art de Vivre »
•It is still seen today as the best wine in the
world
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

37. THANK YOU!
Any questions?
Spring 2015 – SKEMA IMBD | MAISON ERIC KAYSER CASE STUDY

38. APPENDIX : Sources
•http://www.slate.com/articles/life/drink/2009/07/two_cheers_for_france.html
•http://www.pbl.nl/sites/default/files/cms/publicaties/PBL-2014-Regional-Quality-of-
Living-in-Europe-1271.pdf
•http://www.vinetsociete.fr/les-francais-et-le-vin-barometre-ifop
•http://www.france.fr/en/art-and-culture/french-gastronomy-added-unescos-
intangible-world-heritage-list.html
•http://www.keio.ac.jp/en/keio_in_depth/alumni/2012/03.html
•Business Monitor International Ltd (Vietnam Food & Drink Report - Q1 2013)
•Internationalization of markets and Organizations course.