Case study 4 Leclerc machine de Cuisine

1. Taking Initiatives
By Crochet Thibault
and Salla Minfoungo Louis-Gérard

2. Overview :

3. Leclerc Machine
de Cuisine
Reliable Restaurant
and Home Kitchen
Supplies
Mr François Jost
[Overseas Sales
Manager]
Mr Albert Rose
[President]
Protagonists :
Owens, Garfield
and Sueton, Inc.
Creative Cuisine
Ms Marie Dominic
Mr Bill Lewis
[Attorney]
[President]
Ms Jane Watson
[Sales Manager]
Feingold
Advertising
Ms Sandra Jordan
[Account
Executive]

4. Events of recent months :
January
Launch of Leclerc (exclusive) products on the
American market
July
Discovery of the products of Reliable in conflict with
the exclusivity contract between Leclerc and Creative
31 July
Letter to the president of Reliable, ordering the stop
of any sell of Leclerc products by Reliable
4 August
Positive analysis of Reliable products, certifying that
they are produced by Leclerc
5 August
Response of Creative Cuisine : price reduction of
30% (for 2 months) and agressive advertising

5. Reliable's Ad in a Number of Consumer Food
Magazines and Professional Journals
SAVE 30%
off
List Price!!
Full
Factory
Warranty!!
Get The Best. Get A LeClerc Food Processor.
Professional Model ONLY $319 (1 Gal. Capacity, 6 blades)
Standard Model ONLY $189 (1/2 Gal. Capacity, 4 blades)
That's a savings of 30% off the List Price.
Better yet, you don't even have to leave your kitchen.
Just clip the coupon below or call our toll free number today:
1-800-555-5342
MC, VISA, AMEX, DINERS
CLUB accepted
YES, I want a LeClerc Food Processor
Name
Address
Model Standard
$189
QTY
Model Professional
$319
QTY
Amount Enclosed:
Charge Credit Card:
(please add an additional $18
for postage and handling)
Card Type:
Card number:

6. Existing Situation :
1 - Communication
Positive
• Good communication in
Creative and with Leclerc
headquarter ;
• Quick communication ;
• Personal attorney really involved.
Negative
• No response from Reliable ;
• No response from Leclerc’s
distributors.

7. Existing Situation :
2 – Intercultural Differences :
Positive
•Everyone in Creative
is american.
Negative
•Leclerc did not really
want this contract.

8. Existing Situation :
3 – Ethics :
Positive
•Leclerc headquarter
seems trustable and
involved.
Negative
•Buyers may be involved ;
•Maybe Reliable already
knew about the contract.

9. Existing Situation :
4 – Managment :
Positive
•Good teamwork in Creative ;
•Quick reponse to counter
Reliable.
Negative
•Leclerc headquarter has no
idea about contracts signed by
his distributors.

10. Existing Situation :
5 – Other points :
LMC Food Processor Professional Standard
Creative (January)
399 $
279 $
Reliable (July)
319 $
189 $
Creative (September)
310 $
189 $
Marketing
•Even more aggressive
(pricing, advertising and charging
Reliable) ;
•Quick.
Finance :
(N.B : forecasts are not bad for now so
these are only expectations)
•Marketing costs ;
•Fallout of price reduction ;
•Put at stake a market.

11. Statement of the problem
With the arriving of same warranted
products at a lower price, you will face a
juridical and also a financial issue (especially
if Reliable is in his rights).

12. Option 1 :
 Leave the case to Leclerc
Positive
• No more costs ;
• Leclerc’s own case (if it is
distributors’ fault) ;
• Bad image for Reliable ;
• You have better price.
Negative
• Endless competition (if it is not
distributors’ fault) ;
• Leclerc could stop all contracts.

13. Option 2 :
 Complaints against Leclerc
Positive
•Earn money as
indemnification.
Negative
•No more products
from them ;
•Loss of market.

14. Option 3 :
 Check customers
Positive
• May stop a parallel market ;
• Earn money with legal proceedings ;
• Retrieve the market.
Negative
• Loss of trust from buyers ;
• Loss of image because of charging
Reliable.

15. Option 4 :
 Complaints against Reliable
Positive
(only in case of illegality)
• Quick retrieving of market ;
• Earn money in indemnification.
Negative
(in case of legality)
• Loss of money ;
• Bad image.

16. Sum up of the options :
1 – Leave the case to Leclerc ;
2 – Complaints against Leclerc ;
3 – Check customers ;
4 – Complaints against Reliable.

17. Thank you for your attention.
We stay at your disposal for any
question about the topic discussed
today.

18. Our recommendation :
Option 4