MAUBOUSSIN JAPAN: A FRENCH GEM IN ASIA Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

MAUBOUSSIN JAPAN: A FRENCH GEM IN ASIA Case Solution

_{The Problem}

_{This case examines the different types of the global opportunities and the global marketing strategies which have been applied by the Mauboussin brand especially its expansion in Japan. Alain Nemarq who is the managing director of the company was the one who had turned around the company with his cost reduction plan not only in the French Market but also in all the other markets around the world. However, Nemarq had been informed in 2007 that the distributor of the Mauboussin brands in Asia, Desco, which had the exclusive rights had decided to close all the operations. In the same period, the performance of the company in Asia was also worsening especially in Japan because of its failed marketing strategy. Therefore, the problem faced by him now is to determine the best entry mode for the company to improve the performance in Japan and how to deal with the exit of Desco.}

_{The Answer}

_{After a detailed analysis of the financial conditions, brand image, craftsmanship and the similarities between the preferences of the customers of Mauboussin in France and Japan, the best alternative for Nemarq is to establish a joint venture partnership to distribute its products in Japan and other Asian markets.}

_Rationale

_{The main rationale behind this strategy is that the company would gain control over its distribution operations without burdening its financing resources and it will also be able to market its products by targeting specific segments through differentiated marketing.}

_{Situation Analysis}

_{The luxury market had hit a historic high in the year 2007. The forecasted growth rate of the market was 7% for 2008 and the total market had been estimated to stand at $170 million. Europe represented as the biggest market for the luxury products with a market share of 38%, outpacing the American market with a market share of 34% and on third rank was the Japan market with a market share of 13%. The Japanese market had been one of the most leading markets in the world for the luxury products since the 1970s. This case deals with the Mauboussin entry in Japan and how it became unsuccessful in one of the giant luxury goods market in the world.}

_{Mauboussin had found itself quite difficult to place the company in Asia especially in Japan. Furthermore, the company did not have the financial resources to drive the uniform development of the brand across all of its markets including the Japanese market. On the other hand, most of the markets such as the Japan market were huge global markets for introducing the luxury goods. After the appointment of Alain Nemarq, Mauboussin had been revolutionized from scratch and now major decisions need to be made regarding the international market entry modes and strategies for the Mauboussin’s luxury goods brand.}

_{Case Analysis}

_{Before analyzing the case and evaluating the available alternatives for Nemarq, we perform a SWFT analysis for the Mauboussin Company.}

_Strengths

Strong brand: This brand is highly renowned for its pricey baubles. Despite not being a family business in 2001, it remained independent of the world’s largest multinational luxury firms.

_{Strong Leadership: The duo of Fremont and Nemarq was the only reason for the survival of the company. Nemarq’s cost reduction plan had created room for future development of the brand.}
Key Values: The Mauboussin brand possessed a strong development potential because of the key values possessed by the brand such as craftsmanship, creativity, rich heritage and independence.
International Expansion: Despite being a family owned brand, the company had expanded into a number of countries of the world such as Singapore, Japan, Macau, Hong Kong and Taiwan.........................
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