1.

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.

2.0 Introduction

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.

3.0 Company Information

3.1 Company Background

Laduree is a French luxury bakery and sweets maker house which is primarily based in Paris. It is widely known as one of the company that makes the best macaron in the world with its tea salon concept. Aside from their famous macaron, the company itself has a wide range of other delicacies and sell their own product line such as bags, make ups and many more. The combination has made the company a big hit across the globe.

The history of Parisian tea salons is intimately tied to the history of the Laduree family. It all began in 1862, when Louis Ernest Laduree, a miller from Frances southwest, created a bakery at 16 rue Royale in Paris ( Laduree,2013). During the Paris Commune uprising of 1871 the bakery was burnt down. A pastry shop was built at the same location and Jules Chret was entrusted with the interior decoration. Ladure's rise to fame came in 1930 when his grandson, Pierre Desfontaines, had the original idea of the double-decker, sticking two macaron shells together with a creamy ganache as filling. Desfontaines also opened a tearoom at the pastry shop ( Laduree 2013) In those days ladies were not admitted to cafs, which were the exclusive domain of men. This was a big success with ladies, who enjoyed meeting in the freedom of the tearoom rather than their homes.

In 1993 the Groupe Holder took over the firm Laduree. The Holder family also owns the PAUL bakery chain in France. Following the takeover, the company began an expansion drive to turn Laduree from the single rue Royale bakery into a chain, setting up pastry shops and tea room internationally.

3.2 Product Category

Macaroon fans worldwide now make a pilgrimage to the Parisian bakery to gaze upon, buy and feast on dozens of exciting flavors. There are the basics, of courseChocolate, Vanilla, Raspberry and Pistachio, the latter a customer favorite, along with Salted Butter Caramel and Raspberry. But attention must be paid to Blackcurrant Violet and special seasonal flavours like Anise, Chestnut, Basil Lime, Orange Blossom, Rose and White Chocolate. This spring, Bergamot and Lily of the Valley made their debut.

Ladurees offers a high end macaron which has the tenderness of the meringue, the quality of the fillings and the vivid flavours and colours. Though Laduree has the finest macarons in the world, but they also have excellent pastries and tarts that comes with extra ordinary taste and mouth-watering appearance.

3.3 Current Operations

The International development of Laduree started in 2005 with London, England. Laduree stores are now also present in Monaco, Switzerland, Japan, Italy, Lebanon, UAE, Saudi Arabia, Luxembourg, Kuwait, Ireland, and the USA. And more recently in Brazil, Sweden and Australia. Laduree has also opened its first Hong Kong store and Seoul store as of December 2012 while Singapore in April 2013.

4.0 International Marketing Environment Audit

4.1 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, price, place and promotion ( Investopedia 2013).

4.1.1 Product

Ladurees Macaron is a brand known worldwide. Ladurees has produced the best macaron in the world which keeps the simplicity of the flavours that has won customers loyalty to the brand. The recipe has been remain the same since the first Laduree shop is opened. They are many assorted macaron flavours offers by Laduree to satisfy the customers crave for sweetness.

4.1.2 Place

The recipes are however French and the source materials including flour are also imported from France. Laduree applies strict French procedures and is supported by its French parent organisation. The companys chefs are French trained and many of its staff are French. While other stores located outside Paris, the macarons are specially imported from Laduree in Europe, with shipments coming in about three to four times a week.

4.1.3 Price

Ladurees 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. Due to its world famous brand in terms of selling macaron, its macaron known as a luxury item alongside with its competitors, Pierre Hermes Macaron.

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, Paris.

4.1.4 Promotion On the remark of their 150th Anniversary, 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. In addition, Laduree also offers seasonal macarons to add up their into collection.

4.2 Opportunities and Threats

4.2.1 Opportunities

Laduree is known as the company that sells the best premium macaron across the nation. One of advantages of bringing the company into Malaysia is Malaysia does not have premium macaron sellers in its country. Though there is one called TWG Tea which sells foreign macaron, their main products are teas and not the macaron itself. Most of the macaron in Malaysia are local that are either homemade by the local or made by the hotel scattered in Malaysia.

There are no competitors available in Malaysia in terms of representing macarons internationally. 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. Malaysia is a developing country so many investors would come to Malaysia to invest. Hence, increasing the nations income.

4.2.2 Threats

Unfortunately, due to high imposed tax by the country, the pricing range of Ladurees macaron will be slightly on the higher side. Laduree imports their fresh macaron from Paris and the ingredients to make the macaron are French made. It takes time for the macaron to arrive in Malaysia. Plus, the macaron are targeted to the higher income citizens in Malaysia where the percentage of Malaysians with low income are high. Besides pricing range, Laduree will also have to ensure that their products are certified as Halal. 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.

4.3 Pest Analysis

4.3.1 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. Malaysia is an ideal country to penetrate in the food and beverages line. This is because they have good international relationships, especially with other EU countries. Due to that reasons, the market should not be a challenge to enter into except for trying to certify the product as Halal.

4.3.2 Economic

Malaysia is a developing economy in Asia which, in recent years had successfully transformed from an exporter of raw materials into a diversified economy (Trading Economics 2013). Due to the current status of Malaysia, 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.

4.3.3 Social

The total population in Malaysia was last recorded at 29.2 million people in 2012 (Trading Economics 2013). 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. Majority of Malaysia indulge in local macaron everyday mainly due the famous sweetness and the colourful colours of the macaron itself. Plus, macarons are great for wedding and birthdays served as desserts or door gifts.

4.4.4 Technology

Malaysia is always determined to upgrade their infrastructure and become more advanced. Among the asian countries, Malaysia is known for being one of the most well-developed infrastructure countries. Due to their great infrastructure, a lot of their investments have been paid off and severe bottlenecks have been prevented. 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, 2013). This would help Laduree business to run smoothly with the developed infrastructure that Malaysia has.

5.0 Recommended Market Entry Modes

After listing through the whole international marketing environmental audit, the market entry mode that Laduree should be using is the strategic alliance. Strategic alliance is a partnership between businesses with the purposes of achieving common goals, while minimizing risk, maximizing leverage and benefiting from those facets of their operations that complement each other (John Whiley & Sons Australia Ltd. 2nd Edition). 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.

6.0 Recommended Product Strategy

The product strategy chosen will be extension and adaption. Extension is the act of using the same product or communication strategy that the home market uses. The adaption method product strategy where they will make changes to the product or communication strategy to suit local marketplace. For example, Laduree can make macarons that suits the Malaysians taste buds in experimenting the exotic Malaysias local fruits.

7.0 Conclusion

After all the matters listed above, Laduree entry into the Malaysian market will definitely be a successful one and will bring benefits to both the company and also the country.

(1640 words)

8.0 References

Definition of 4P's 2013, Investopedia, viewed 18 October 2013, http://www.investopedia.com/terms/f/four/-ps.asp.html>. International Marketing 2nd Asia Pacific Edition, John Wiley and Sons Australia, Ltd 2005.2008 Populations of Malaysia 2013, Trading Economics, viewed 21 October 2013, http://www.tradingeconomics.com/malaysia/population.html>.

What is International Marketing 2013, Marketing teacher, viewed 20 October 2013, http://www.marketingteacher.com/lesson-store/lesson-internationalmarketing.html>.

The History of Laduree 2013 ,Laduree Paris, viewed 22 October 2013, < http://www.laduree.com/douceurs/histoire-de-la-maison.html>

A taste for excellence 2009, Laduree Paris, viewed 22 October 2013 < http://www.groupeholder.com/va/marque-laduree.php>

Volpe 2012, Bon Anniversaire Laduree, Vanity Fair, viewed 22 October 2013 http://www.vanityfair.com/online/beauty/2012/01/Bon-Anniversaire-Laduree

Print Ladure creates the perfect mix 2011, France Mode Express, viewed 22 October 2013 < http://www.francemondexpress.fr/vue-detail-defaut/n/laduree-creates-the-perfect-mix/>

Tourists Arrivals and Receipts in Malaysia, Tourism Malaysia, viewed 22 October 2013 < http://corporate.tourism.gov.my/research.asp?page=facts_figures>

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