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0 Executive Summary
Laduree which are top premier sellers of the double-decker macaroon, fifteen thousand of which are sold every day are still one of the best known makers of macaroons in the world plus its exquisite tea salon concept. It has been chosen as the highlight in this report as a company to be sent to Malaysia. The main objective is to study the factors that can help to make the company grow in Malaysia and the possible risk that the company will face. A recommendation of mode of entry strategy and product strategy are also made based on the environmental analysis to reach a better understanding and full preparation for the company to expand their products in other countries.
International marketing is simply the application if marketing principles to more than one country ( Marketing Teacher Ltd 2013). It involves recognizing that people all over the world have different needs. This report is written for the sweet meringue based on confection which commonly known as macaron made by a big company called Laduree to enter into the Asian market specifically targeting Malaysia.
The aim of this report is to identify a prospective overseas market that has potential for marketing entry and to conduct an environmental analysis to determine market attractiveness for the chosen company which Laduree and also to make recommendations on market entry and product strategy based on assessment of the targeted market.
This report will focus on ways Laduree, a French company will be able to enter the Asian market and compete with other local and foreign macaros that are already exist in the Malaysia.
which were the exclusive domain of men.2013). created a bakery at 16 rue Royale in Paris ( Laduree. make ups and many more. The history of Parisian tea salons is intimately tied to the history of the Laduree family.0 Company Information 3. Following the takeover.1 Company Background Laduree is a French luxury bakery and sweets maker house which is primarily based in Paris. setting up pastry shops and tea room internationally. Aside from their famous macaron.3. when Louis Ernest Laduree. a miller from France’s southwest. Desfontaines also opened a tearoom at the pastry shop ( Laduree 2013) In those days ladies were not admitted to cafés. It is widely known as one of the company that makes the best macaron in the world with its tea salon concept. 2 . Pierre Desfontaines. During the Paris Commune uprising of 1871 the bakery was burnt down. A pastry shop was built at the same location and Jules Chéret was entrusted with the interior decoration. the company began an expansion drive to turn Laduree from the single rue Royale bakery into a chain. sticking two macaron shells together with a creamy ganache as filling. who enjoyed meeting in the freedom of the tearoom rather than their homes. had the original idea of the double-decker. This was a big success with ladies. It all began in 1862. The Holder family also owns the PAUL bakery chain in France. In 1993 the Groupe Holder took over the firm Laduree. Ladurée's rise to fame came in 1930 when his grandson. the company itself has a wide range of other delicacies and sell their own product line such as bags. The combination has made the company a big hit across the globe.
Orange Blossom. And more recently in Brazil. There are the basics. This spring. Vanilla. Rose and White Chocolate. Switzerland.3 Current Operations The International development of Laduree started in 2005 with London. Luxembourg. Laduree has also opened its first Hong Kong store and Seoul store as of December 2012 while Singapore in April 2013. along with Salted Butter Caramel and Raspberry. the latter a customer favorite. Japan. But attention must be paid to Blackcurrant Violet and special seasonal flavours like Anise. Italy.3. and the USA. 3. of course—Chocolate. Saudi Arabia. Though Laduree has the finest macarons in the world. Raspberry and Pistachio. Chestnut. the quality of the fillings and the vivid flavours and colours. Basil Lime. England. Laduree stores are now also present in Monaco. but they also have excellent pastries and tarts that comes with extra ordinary taste and mouth-watering appearance. Lebanon. buy and feast on dozens of exciting flavors. Kuwait.2 Product Category Macaroon fans worldwide now make a pilgrimage to the Parisian bakery to gaze upon. Sweden and Australia. Ireland. Laduree’s offers a high end macaron which has the tenderness of the meringue. Bergamot and Lily of the Valley made their debut. UAE. 3 .
price.3 Price Laduree’s Macaron are considered as a premium macaron plus it is slightly charged on a higher price as Laduree produced macaron which are high exquisite in taste. While other stores located outside Paris. with shipments coming in about three to four times a week.2 Place The recipes are however French and the source materials including flour are also imported from France. place and promotion ( Investopedia 2013). its macaron known as a luxury item alongside with its competitors.4.1 Product Laduree’s Macaron is a brand known worldwide. Laduree applies strict French procedures and is supported by its French parent organisation. Laduree’s has produced the best macaron in the world which keeps the simplicity of the flavours that has won customer’s loyalty to the brand. Due to its world famous brand in terms of selling macaron.1.1 Marketing Mix 4P's A marketing mix 4P's is defined as the categories that can be controlled in the marketing of a good or service which includes product. They are many assorted macaron flavours offers by Laduree to satisfy the customer’s crave for sweetness. the macarons are specially imported from Laduree in Europe. 4. Pierre Herme’s Macaron.0 International Marketing Environment Audit 4. 4. 4 .1. The recipe has been remain the same since the first Laduree shop is opened. 4. The company’s chefs are French trained and many of its staff are French.1.
Paris. Most of the macaron in Malaysia are local that are either homemade by the local or made by the hotel scattered in Malaysia.2. Laduree also offers seasonal macarons to add up their into collection. 4. In addition.1 Opportunities Laduree is known as the company that sells the best premium macaron across the nation.1.Price will also vary among countries due to tax imposed by a particular country for import of overseas product and generally the pricing range in Asia cost a lot more than its actual cost in other countries such as its home country. Though there is one called TWG Tea which sells foreign macaron.2 Opportunities and Threats 4. their main products are tea’s and not the macaron itself. Laduree has created macarons called The Incroyables which means The Incredible that represent new taste of their macaron to serve their loyal customers upon their support throughout the years. 5 .4 Promotion On the remark of their 150th Anniversary. One of advantages of bringing the company into Malaysia is Malaysia does not have premium macaron sellers in its country. 4.
Besides pricing range. 4. the macaron are targeted to the higher income citizens in Malaysia where the percentage of Malaysian’s with low income are high. especially with other EU countries. 4. Due to that reasons. It takes time for the macaron to arrive in Malaysia. the market should not be a challenge to enter into except for trying to certify the product as Halal.3. Malaysia is a developing country so many investors would come to Malaysia to invest.3 Pest Analysis 4. Penetrating into an Islamic country may be a slight challenge due to its rules and regulations especially in terms of food wise coming from other foreign countries. Considering this is an opportunity for Laduree in expanding their products to Malaysia as there are no premium macarons sellers in Malaysia plus most of the citizens in Malaysia can afford to buy such expensive goodness to accommodate their crave for sweetness. Hence.1 Politic The politics of Malaysia is based on a federal constitutional monarchy in which the King is head of state and the prime minister is the head of government. 6 . Laduree imports their fresh macaron from Paris and the ingredients to make the macaron are French made. Plus. Malaysia is an ideal country to penetrate in the food and beverages line.There are no competitors available in Malaysia in terms of representing macarons internationally.2. the pricing range of Laduree’s macaron will be slightly on the higher side. Laduree will also have to ensure that their products are certified as Halal. This is because they have good international relationships. increasing the nation’s income. due to high imposed tax by the country.2 Threats Unfortunately.
3.2 million people in 2012 (Trading Economics 2013). One of the proof that Malaysia is advanced was when Kuala Lumpur International Airport (KLIA) was built for business in the year 1998 (Iskandar Malaysia. Plus. macarons are great for wedding and birthdays served as desserts or door gifts. The best part about Macaron is that it can be enjoyed by everyone from all different ranges of age be it the young and the elderly.2 Economic Malaysia is a developing economy in Asia which. a lot of their investments have been paid off and severe bottlenecks have been prevented.3. the penetration of Laduree into the Malaysian market would not be a problem and incomes that will benefit both the country and the company can be achieved. Due to their great infrastructure.4. in recent years had successfully transformed from an exporter of raw materials into a diversified economy (Trading Economics 2013). 4. Majority of Malaysia indulge in local macaron everyday mainly due the famous sweetness and the colourful colours of the macaron itself. Malaysia is known for being one of the most well-developed infrastructure countries. Due to the current status of Malaysia. 2013). 4. Among the asian countries. This would help Laduree business to run smoothly with the developed infrastructure that Malaysia has.4 Technology Malaysia is always determined to upgrade their infrastructure and become more advanced.3 Social The total population in Malaysia was last recorded at 29.4. 7 .
Laduree can make macarons that suits the Malaysian’s taste buds in experimenting the exotic Malaysia’s local fruits. For example. Laduree could partner up with hotels in Malaysia to maximize their sells as Malaysia are ranked number 9th in the most visited place in the world. Strategic alliance is a partnership between businesses with the purposes of achieving common goals. 7.0 Conclusion After all the matters listed above.0 Recommended Product Strategy The product strategy chosen will be extension and adaption.5. 6. Extension is the act of using the same product or communication strategy that the home market uses. while minimizing risk. The adaption method product strategy where they will make changes to the product or communication strategy to suit local marketplace. (1640 words) 8 . Laduree entry into the Malaysian market will definitely be a successful one and will bring benefits to both the company and also the country.0 Recommended Market Entry Modes After listing through the whole international marketing environmental audit. maximizing leverage and benefiting from those facets of their operations that complement each other (John Whiley & Sons Australia Ltd. 2nd Edition). the market entry mode that Laduree should be using is the strategic alliance.
francemondexpress. viewed 18 October 2013. Tourism Malaysia.php> Volpe 2012.com/douceurs/histoire-de-la-maison.html>. Vanity Fair. The History of Laduree 2013 . http://www.my/research.html>.tradingeconomics. viewed 22 October 2013.marketingteacher.2008 Populations of Malaysia 2013.asp. viewed 22 October 2013 < http://corporate.fr/vue-detail-defaut/n/laduree-creates-the-perfect-mix/> Tourists Arrivals and Receipts in Malaysia.com/va/marque-laduree. http://www.com/malaysia/population. International Marketing 2nd Asia Pacific Edition. viewed 22 October 2013 http://www.vanityfair. What is International Marketing 2013.gov.Laduree Paris. http://www.groupeholder.tourism. viewed 21 October 2013.investopedia. viewed 20 October 2013.com/lesson-store/lesson-internationalmarketing. Bon Anniversaire Laduree. < http://www.asp?page=facts_figures> 9 . John Wiley and Sons Australia.html> A taste for excellence 2009. Ltd 2005.8.laduree.com/terms/f/four/-ps. Investopedia. Trading Economics.com/online/beauty/2012/01/Bon-Anniversaire-Laduree Print Ladurée creates the perfect mix 2011. Laduree Paris.0 References Definition of 4P's 2013. France Mode Express. viewed 22 October 2013 < http://www. Marketing teacher.html>. viewed 22 October 2013 < http://www.