Leclerc machines de cuisines
-
Upload
ymsiema -
Category
Leadership & Management
-
view
94 -
download
0
description
Transcript of Leclerc machines de cuisines
Leclerc Machines de cuisines
Case 4
Overview Date: July 1994
Involved companies : Leclerc machine de cuisines (Paris)
Creative cuisines (Atlanta)
Reliable restaurant and Home Kitchen Supplies (New Jersey)
Participants : Bill Lewis : President of Creative cuisines
Marie Dominic : Attorney representing Creative cuisines
Jane Watson : Sales Manager
Albert Rose : President of Reliable Restaurant and Home Kitchen Supplies.
Sandra Jordan : Account Executive at Feingold Advertising.
Dialogue between Mr. Bill Lewis and Ms. Marie Dominic
Explain a possible legal action against RR and HKS.
“If Reliable is getting its products direct from LeClerc in violation of your exclusive distribution agreement, it’s illegal. Or, it's illegal if the LeClerc products it's selling are counterfeits, not genuine LeClerc products.”
Legal Illegal
Exhibit 1 : Letter sent by LeClerc to all distributors
“If by chance you have supplied Reliable Restaurant and Home Kitchen Supplies with these items, please do not do so in the future.
It is a direct violation of our agreement with Creative Cuisines and will not be tolerated.”
Exhibit 2 : Letter Dominic to Albert Rose, President, Reliable Restaurant and Home Kitchen Supplies
Extract:
“Your distribution of LeClerc products is a grievous violation of this agreement. Full legal proceedings shall be brought…..”
Exhibit 3 :Memo from Jane Watson to Bill Lewis
“It is without a doubt a genuine LeClerc LMC Standard”
Coun
terf
eit
Gen
uine
Exbihit 4: Memo to Creative Cuisines Sales Department from Jane Watson
Extract :
“This is a temporary two-month price cut to head off illegal competition from Reliable.”
SOL
D
20%
30%
LMC
professionalLMC
standart Save
90$
Save 89$
2 Months
Exhibit 5: Reliable’s Ad in Number of Consumer food Magazine and professional journals
Important facts: “Save 30% off” Low price
“Get The Best. Get A Leclerc Food Processor” Confirm that they sell a genuine Leclerc Product.
“Factory Warranty” Show that the are connect with the factory.
Exhibit 6 : Letter to Bill from Sandra Placement of ads in September issues.
Extract :
“Concept: Aggressively take on Reliable. Ad should inform customers of Reliable's "pirate" actions. Emphasis will be placed on possibility that warranty will not be honored.”
No
Warranty
SituationPrevious Situation Troublemaker unfair
competitionActions of Creative cuisine (exhibits)
Creative Cuisines has an exclusive distribution agreement to sell LMC products. the only one who can sell LMC products in the USA.
Creative Cuisines has discovered that an other company, Reliable Restaurant and Home Kitchen, sells the LMC’s products in USA.
Creative Cuisine decreases prices immediately (ex.4)
The company hopes to make good profits with this exclusiveness in the USA and it has accepted to assume all marketing and sales promotion costs to get the contract.
Reliable sells these products at low cost.
CC sends letters to Reliable (ex.2)
LMC have to find a solution if they do not want Creative to sue them and LMC have to respect the agreement
LMC sends letters to all distributors (ex.1)
PROBLEM
How Creative Cuisine and Leclerc can fight against this unfair competition and protect their exclusive distribution agreement in the US ?
???
Solutions #1 : Status quo
#2 : Both companies launch an investigation to find the supplier of reliable
#3 : Advertisement informing illegal actions from Reliable
#4 : Decrease prices only in the US to counter any competitors
#5 :To take Reliable to court
1st : Status quo
Advantage Cost nothing for LMC
disadvantage Lose market share if Reliable keeps
selling LMC products
2nd : Both companies launch an investigation to find the supplier of reliable
Advantage Save money for LMC and Creative
Cuisine
Cover up the case without scandals
Work on long term
Disadvantage Let a competitor in the market during
the investigation.
Together
determine
who is guilty
3rd : Advertisement informing illegal actions from Reliable
Advantage Keep most of market shares
Discredit Reliable
Save Money for LMC
Disadvantage Cost an advertising campaign for CC
4th : Decrease prices only in the US to counter any competitors
Advantage Reliable will probably stop selling
LMC products.
Creative do not lose so much money
Disadvantage LMC lose some money
Not sure that it will work on long term
5th : To take Reliable to court
Advantage Keep being the only seller of LMC
products after the procedure
Can earn a compensation
Disadvantage Cost money and time
May not work
Share the market during the procedure
Our solution
#2 : Both companies launch an investigation to find the supplier of reliable
Because we do not have any answers from Reliable waiting for the response
Possibility to choose a more radical solution if it leads to nothing