Ladurée Strategy Case

June 2013 Hadrien Gremaud h.gremaud@gmail.com

LADURﾃ右 STRATEGY I. Brand Analysis II. Brand Extension project

I. Brand Analysis International Licensing & Brand Extensions

BRAND ANALYSIS History according to three men

1862

1950 - 1960

1993

Louis Ernest Ladurée create a bakery

Pierre Desfontaines invents Le Macaron Ladurée

David Holder Starts up Ladurée

16 rue Royale, Paris

It’s the main product of the brand

Holder Group promotes and extends Ladurée in Paris and around the world

Ladurée’s wife combine cake shop and café

Born in Europe in Middle Age Macaron has hundreds of recipes

It’s one of the first tearoom

Second Empire

Early XXth century

The 50s - 60s

The 90s

Napoleon III and Hausmann build a prestigious Paris

Women in Paris abandon litterature’s salons

After war is over quality food (butter) is back

Luxe industry create a real boom

Café are more and more numerous and luxurious

They are going with men to exihitions and tearooms

Cooks and pastery cooks reinvents recipes

Marketing and strategie increase value

BRAND ANALYSIS 15 years of extension

Shops today

2013 2012 2011 2010 2009 2008 2007 2006 2005 2002 1997 1862

Total

48 Paris

8 Japan

6 UK

4

,P ce

ue ,R

,C

is ar

is ar

,P ce

,P ce an Fr

an Fr

an Fr

Ro

lm ho ck to ,S u en juk rt ed hin rpo Sw , S s Ai n i pa ar Ja e, P c an ha o ty Fr D , Ci ar rk t at Yo rpor Q ew Ai , N ris SA Pa U ce, an on Fr nd ity o tc ,L ei K U ow K ul t, ei anb ow st K y, I g e rk our Tu mb uth o xe yr Lu , Be bai n u ba , D Li tes a ir an Em M i l y, al h It ric Zu y, an lin m ub er D G d, s an ri s el Pa Ir ce, aille an ers Fr e, V a c oy an ag Fr , N n pa Ja is ar hi , P as ce nb an iho Fr , N a n pa inz e Ja G nn n, sa pa au Ja ,L nd la er itz on a Sw ond ov ,L en K ,G U nd la ds er o r itz ar te H ar Sw n, ap do on on eB ,L Ru K U is, ar ps ,P m es ce te sé an rin Ély P Fr ps is, m ar ha le ya

Australia, Belgium, Singapour, Monaco, Maroco, Corea, Brasil, China…

BRAND ANALYSIS Competitors

Shops

31

Shops

34

Shops

39

France

14

France

10

France

20

Japan

12

Japan

10

Japan

16

UK

2

Hong Kong

5

Germany

2

BRAND ANALYSIS Visual identity : old roots

Second Empire Style

1850s - 1920s Great Success among the Bourgeoisie

L’Ange Pâtissier

1871 Ceiling of 16, rue Royale painted by Jules Chéret

BRAND ANALYSIS Visual identity : Packaging

Pleasure to Open the Box

L’Ange Pâtissier

Pleasure to make Gifts

BRAND ANALYSIS Visual identity : Architecture

Second Empire Style

BRAND ANALYSIS Visual identity : outside

1. See & Recognise

2. Identify quality food

3. Desire for tasting

3. Get in

Green and Gold

Typical 19th French shop

Magical products presentation

Great entrance

BRAND ANALYSIS Visual identity : Long Counter

1. Visual choice

2. Efficent Service

Anywhere the same feeling to be in Ladurée

Showcase for smalls and talls

Cakes as jewels

New York … shop

BRAND ANALYSIS Visual identity : tearoom

1. Get in an other time

2. Read the Menu

3. Enjoy

Salon Second Empire Style

Elegant book

Refined Crockery

BRAND VALUE Coherence : « Fabricant de douceurs » (sweets maker)

CORE BUSINESS : Food Macaron Cakes Tearoom Épicerie fine Restaurant Receptions

EXTENSION : Women Home : perfumed candles Accesories : bags Book : cuisine Clothes : Tshirts Beauty : maquillage

BRAND VALUE Differentiation : Strong identity

Excellence Handmade Work

19th French style

PRODUCT VALUE Production : Handmade quality Every day in every Ladurée

Parisian’s Lab

Food is cook with fresh products

50 000 macarons per day 80 000 macarons per day (Chrismas time)

BRAND ANALYSIS Occasion of use : Core Business

Event + 1,000 !

Restaurant Private use + 150 !

Products - Gift 45 - 150 !

Restaurant 30 - 45 !

Tearoom 12 - 18 !

Macarons - Cakes 1,5 - 6 !

BRAND ANALYSIS Occasion of use

Macarons - Cakes 1,5 - 6 !

BRAND ANALYSIS Occasion of use

Tearoom 12 - 18 !

BRAND ANALYSIS Occasion of use

Restaurant 30 - 45 !

BRAND ANALYSIS Occasion of use

Products - Gift 45 - 150 !

BRAND ANALYSIS Occasion of use

Restaurant Private use + 150 !

BRAND ANALYSIS Occasion of use Event + 1,000 !

BRAND EXTENSION News products

Merchandising

Books

Home

Maquillage

2001

2006

2007

2008

Clothes

2010

BRAND EXTENSION Co-Branding : communication

Fashion

Kids

LANVIN LOUBOUTIN TSUMORI CHISATO MATHEW WILLIAMSON JOHN GALIANO …

DISNEY HELLO KITTY DOG …

+

BRAND EXTENSION Co-Branding Sephora

Why Sephora ?

Selective distribution of perfume and cosmetics Created in France in 1973, impressive developpement since 1997 (LVMH group)

What ?

Beauty products Bath, perfume, make up‌

+

BRAND EXTENSION Co-Branding Uniqlo

Why Uniqlo ?

Unique Clothing : Unisex casual wear store Created in Japan in 1985, conception, fabrication and distribution

What ?

Clothes T-shirts, accessories‌

BRAND EXTENSION Distribution

Food

Pastry, chocolate, restaurant…

Make up

Clothes

Bath, perfume, make up…

T-shirts, accessories…

Others…

Total

48

Total

1k

Resellers

68

Total

1k

Paris

8

Europe

640

France

26

Japan

794

Japan

6

North America

240

Italy

7

China

177

UK

4

Chine

60

USA

6

South Corea

90

BRAND EXTENSION Targated consumer : Women

WOMEN seduced by : Femine pleasures Cakes and sweets Cute atmosphere Making gifts Events organisation Idealistic woman Trendy Parisian Carefull mother Sofiscated gourmet

PRODUCT VALUE Fashion Communication

Fashion Magazine

Plastik 2012

Fashion Ad

Louboutin 2009

PRODUCT VALUE Soft Communication

Cinema Product Visibility

TV Product Visibility

Event Special Edition

Sofia Copolla’s Marie-Antoinette 2006

Gossip girls 2009

Royal Wedding : Monaco 2011

PRODUCT VALUE Communication : Message

Happyness

Paris

Excellence

&

II. Brand Extension Project

* home in french

BRAND EXTENSION PROJECT Trend : fashion to home design

Ralph Lauren

Kenzo

Armani

1983

1991

2000

BRAND EXTENSION PROJECT Trend : Interior market developpement

Coccooning

Decoration

People spend more and more time home

People spend more and more money for their home

BRAND EXTENSION PROJECT Partner analysis : Core business

Global Interior Designer

Fabrics and wall paper

Furniture

Lifestyle products

BRAND EXTENSION PROJECT Partner analysis : co-branding

The Royal Collection

Ralph Lauren

Christan Lacroix

William Yeoward

Pillow : 140 - 180 US$

Pillow : 220 - 380 US$

Pillow : 140 - 190 US$

Pillow : 90 - 140 US$

BRAND EXTENSION PROJECT Partner analysis : diffusion Resellers trought 23 countries

AMERICA Canada USA Mexico Brasil Argentina Chile

EUROPE UK & Eire France Belgium Italy Spain Portugal

Germany Austria Netherland Poland Turkey Russia

ASIA India Singapour China Australia

BRAND EXTENSION PROJECT Joint venture co-branding

Provides : French Second Empire Style Graphics and colors Brand Value : Luxury

Provides : Coherent interior collection High quality products Luxurious positionning International distribution

Interior design Know-How International Distribution Network

BRAND EXTENSION PROJECT Product value : development

Products Design

Production

&

Distribution

Interior Design

Installation

Showrooms & Resellers

Ladurée Architects network Custumer’s architect

Ladurée workers network Architect’s workers

Second Empire Style

Quality raw materials

International network

Architect as a partner

Workers as partners

Graphics and colors

Quality control

Reputation established

Quality interior

Quality finishing details

Coherent identity

Cost saving

Efficient stock managing

Lifestyle products

Long term interior

Great and luxurious interior a Ladurée interior can be selected by Ladurée for their Ad campaigns Ladurée’s gifts can motivate custumers and architects

BRAND EXTENSION PROJECT Targeted consumer

Upper class consumers

Interior Resellers

Architects and interior designers

Seduced by :

Seduced by :

Seduced by :

Luxurious and harmonious interiors

Complete interior to sell with progressive prices

Easy interior conception global design with many options

Time savings Fast stock delivery Network of professionals

Time savings Online tools of selection products Network of professionals

High quality product Unique interior Fast Installation Service

BRAND EXTENSION PROJECT Communication

Fashion and lifestyle magazines

Professional magazines

LadurĂŠe shops as a showcase and brochures

Interior resellers : highlight spot

Profesionnal events : design weeks Differentiation with food and home collection Profesional network : Architects certified LadurĂŠe

Internet : photos as inspirations find trought sharring and blogging

Upper class consumers

Internet : photos as inspirations find trought sharring and blogging

Interior Resellers

Architects and interior designers

BRAND EXTENSION PROJECT Final considerations

Two worldwide brands adding value to each other

Differentiation with strong atmosphere and identity

Deep knowledge of quality products and interior’s market

Visibility in main cities around the world

Distribution established in 25 countries

People are charmed by Ladurée interiors Ladurée’s style has an important commercial value