Ladurée Strategy Case

LADURÉE STRATEGYI. Brand Analysis

II. Brand Extension project

June 2013Hadrien Gremaudh.gremaud@gmail.com

I. Brand AnalysisInternational Licensing & Brand Extensions

BRAND ANALYSIS History according to three men

1862

Louis Ernest Ladurée create a bakery

16 rue Royale, Paris

Second Empire

Napoleon III and Hausmann build a prestigious Paris

Café are more and more numerous and luxurious

Ladurée’s wife combine cake shop and café

It’s one of the first tearoom

1950 - 1960

Pierre Desfontaines invents Le Macaron Ladurée

It’s the main product of the brand

Born in Europe in Middle AgeMacaron has hundreds of recipes

Early XXth century

Women in Paris abandonlitterature’s salons

They are going with men to exihitions and tearooms

The 50s - 60s

After war is over quality food (butter) is back

Cooks and pastery cooks reinvents recipes

The 90s

Luxe industry create a real boom

Marketing and strategieincrease value

1993

David Holder Starts up Ladurée

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

BRAND ANALYSIS 15 years of extension

France, Paris, Champs Élysées

1997

France, Paris, Printemps

France, Paris, Rue Royale

2002

France, Paris, Rue Bonaparte

2005

UK, London, Harrods

2006

Switzerland, Genova

2007

UK, LondonSwitzerland, Lausanne

2008

Japan, GinzaJapan, Nihonbashi

France, Paris

2009

Japan, Nagoya

France, Versailles

France, Paris

Ireland, Dublin

Germany, Zurich2010

Italy, MilanEmirates, Dubai

Liban, Beyrouth

LuxembourgTurkey, Istanbul

Koweit, Koweit city

2011

UK, LondonFrance, Paris Airport

USA, New York City

2012

Qatar, DohaFrance, Paris Airport

Japan, Shinjuku

Sweden, Stockholm

1862

Total 48

Paris 8

Japan 6

UK 4

2013

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

Shops today

BRAND ANALYSIS Competitors

Shops 39

France 20

Japan 16

Germany 2

Shops 34

France 10

Japan 10

Hong Kong 5

Shops 31

France 14

Japan 12

UK 2

BRAND ANALYSIS Visual identity : old roots

Second Empire Style L’Ange Pâtissier

1871Ceiling of 16, rue Royale painted by Jules Chéret

1850s - 1920sGreat Success among the Bourgeoisie

BRAND ANALYSIS Visual identity : Packaging

L’Ange PâtissierPleasure to Open the Box Pleasure to make Gifts

BRAND ANALYSIS Visual identity : Architecture

Second Empire Style

BRAND ANALYSIS Visual identity : outside

Green and Gold Typical 19th French shop Magical products presentation Great entrance

1. See & Recognise 2. Identify quality food 3. Desire for tasting 3. Get in

BRAND ANALYSIS Visual identity : Long Counter

Showcase for smalls and talls

1. Visual choice 2. Efficent Service

Cakes as jewels …

Anywhere the same feeling to be in Ladurée

New York shop

BRAND ANALYSIS Visual identity : tearoom

Salon Second Empire Style

1. Get in an other time 2. Read the Menu 3. Enjoy

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

Parisian’s Lab

50 000 macarons per day80 000 macarons per day (Chrismas time)

Every day in every Ladurée

Food is cook with fresh products

BRAND ANALYSIS Occasion of use : Core Business

Macarons - Cakes1,5 - 6 !

Products - Gift 45 - 150 !

Restaurant 30 - 45 !

Restaurant Private use+ 150 !

Event+ 1,000 !

Tearoom12 - 18 !

BRAND ANALYSIS Occasion of use

Macarons - Cakes1,5 - 6 !

BRAND ANALYSIS Occasion of use

Tearoom12 - 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 Clothes

2001

Home

2007

Books

2006 2010

Maquillage

2008

BRAND EXTENSION Co-Branding : communication

LANVINLOUBOUTIN

TSUMORI CHISATOMATHEW WILLIAMSON

JOHN GALIANO…

DISNEYHELLO KITTY

DOG…

Fashion Kids

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

Resellers 68

France 26

Italy 7

USA 6

Total 48

Paris 8

Japan 6

UK 4

Total 1k

Europe 640

North America 240

Chine 60

Total 1k

Japan 794

China 177

South Corea 90

Others…

Food Make up Clothes

T-shirts, accessories…Bath, perfume, make up…Pastry, chocolate, restaurant…

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

Louboutin2009

Fashion Magazine Fashion Ad

Plastik2012

PRODUCT VALUE Soft Communication

Cinema Product Visibility

Sofia Copolla’s Marie-Antoinette2006

Royal Wedding : Monaco 2011

Event Special Edition

Gossip girls2009

TVProduct Visibility

PRODUCT VALUE Communication : Message

Happyness Paris Excellence

II. Brand Extension Project

&

home in french

*

Armani

2000

Kenzo

1991

BRAND EXTENSION PROJECT Trend : fashion to home design

Ralph Lauren

1983

BRAND EXTENSION PROJECT Trend : Interior market developpement

Coccooning

People spend more and more time home

Decoration

People spend more and more money for their home

BRAND EXTENSION PROJECT Partner analysis : Core business

Lifestyle products

Global Interior Designer

Fabrics and wall paper Furniture

BRAND EXTENSION PROJECT Partner analysis : co-branding

The Royal Collection

Pillow : 140 - 180 US$

Ralph Lauren Christan Lacroix William Yeoward

Pillow : 140 - 190 US$ Pillow : 90 - 140 US$Pillow : 220 - 380 US$

BRAND EXTENSION PROJECT Partner analysis : diffusion

AMERICA

CanadaUSA

MexicoBrasil

ArgentinaChile

UK & EireFrance

BelgiumItalySpain

Portugal

GermanyAustria

NetherlandPolandTurkeyRussia

ASIA

IndiaSingapour

ChinaAustralia

EUROPE

Resellerstrought 23 countries

BRAND EXTENSION PROJECT Joint venture co-branding

Provides :

French Second Empire Style

Graphics and colors

Brand Value : Luxury

Coherent interior collection

High quality products

Luxurious positionning

International distribution

Provides :

Interior design Know-How

International Distribution Network

BRAND EXTENSION PROJECT Product value : development

&

Products Design

Second Empire Style

Graphics and colors

Coherent identity

Production Distribution Interior Design Installation

Showrooms & ResellersLadurée Architects network

- Custumer’s architect

Ladurée workers network-

Architect’s workers

Quality raw materials

Quality control

Cost saving

International network

Reputation established

Efficient stock managing

Architect as a partner

Quality interior

Lifestyle products

Great and luxurious interior

Workers as partners

Quality finishing details

Long term 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 Architects and interior designers

Seduced by :

Luxurious and harmonious interiors

High quality product

Unique interior

Fast Installation Service

Seduced by :

Easy interior conceptionglobal design with many options

Time savings Online tools of selection products

Network of professionals

Interior Resellers

Seduced by :

Complete interior to sellwith progressive prices

Time savings Fast stock delivery

Network of professionals

BRAND EXTENSION PROJECT Communication

Upper class consumers Architects and interior designers

Professional magazines

Profesionnal events : design weeksDifferentiation with food and home collection

Profesional network : Architects certified Ladurée

Internet : photos as inspirationsfind trought sharring and blogging

Fashion and lifestyle magazines

Ladurée shops as a showcase and brochures

Interior resellers : highlight spot

Internet : photos as inspirationsfind trought sharring and blogging

Interior Resellers

BRAND EXTENSION PROJECT Final considerations

Differentiation with strong atmosphere and identity

Visibility in main cities around the world

Two worldwide brands adding value to each other

Deep knowledge of quality products and interior’s market

Distribution established in 25 countries

People are charmed by Ladurée interiors

Ladurée’s style has an important commercial value