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CASE 11
Synopsis: Ladurée, a famous French pastry company, is known worldwide for its macarons but
only recently has entered the U.S. market. This entry has produced not only
opportunities but also challenges for this company. In particular, this case focuses on
questions related to appropriate locations, types of retail ownership, and ideal target
markets.
Uses:
Chapter 2 Provides an example of a specialty store retailer. Discuss the types of ownership.
Discussion Questions:
1. target market and retail strategy in the United States?
Ladurée, an upscale pastry brand, targets high-income, well-educated customers and fashion-forward
buyers (mostly women) who can afford to pay high prices for luxury food and enjoy both good food
2. Explain the reasons Ladurée owns its stores in some countries and uses franchising with
local licensees in others.
Business in a foreign country always entails risk. Some countries are riskier than others, so operating
Case Synopsis, Uses, Discussion Questions, and Answers
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3. Which type(s) of retailing format(s) and location(s) is (are)
marketing strategy in the United States?
Retailing
formats/location
Advantages Disadvantages
Specialty stores – Enough space to have a deep
assortment: pastries, macarons, and
additional products (e.g., fragrances,
candles, bags)
– High costs: rent, store layout,
salespeople
Pop-up stores – Creates buzz: spreads the image of
Ladurée around big cities in a cost–
effective way (rent and wages only for a
short period of time)
– Allows Ladurée to evaluate the sales
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products fit this description
4. Could Ladurée sell its products online? Why or why not?
It could sell products online, though it needs premium transportation capabilities, because pastry
products are perishable goods that need specific transportation facilities (freezers, anti-bacterial).
Even if the price would be somewhat more expensive because of extra transportation costs,
customers seemingly should be willing to pay for something really special, and
are special.
Ladurée has two options if it wants to sell its products online:
– Follow the same shipping process as in Australia (i.e., products frozen and shipped from
Switzerland), and then, instead of delivering them to the stores, the company could use a
– Open a pastry lab in the United States. Macarons could not be made in the United States,
because Holder wants them prepared in France, but Ladurée could provide a new facility to