coverage, control and communicationAlthough the company’s strategy has significantly increased the company’s fixed cost base, Le Creuset is still confident that the benefits accrued will still outweigh the additional costs. Some of these benefits are: Better control to the point of sale Improved communication with customers-securing customer’s satisfaction and confidence The ability to exert greater influence on price and ensure it reinforces brand imageIn each of its key markets thus the company has sought to build its own distribution network. Examples are: UK market: the company purchased the Kitchenware Merchants Limited which has been its main UK distributor since 1960. US market: Le Creuset of America Inc. and its former affiliate Schiller and Armus Inc. were legally merged into one distribution company in 1991. Japan: Le Creuset Japan KK was set up in 1998 to consolidate distribution. It has its own dedicated marketing and sales staff that serves over 80 department stores, which display the company’s products. Germany: Le Creuset in 1993 purchased a German distribution firm Wolo GmbH to create a Le Creuset sales and distribution company which became operative in 1994.In other markets Le Creuset hopes to penetrate the market through using another method of distribution-the use of independent agents. Agency agreements have been established with independent distributors by the company in some 20 countries including Western Europe, Scandinavia, Korea, Malaysia and Singapore.Another measure is adopted by the company to improve its distribution scheme and avoid the long delivery times in meeting customer orders. Usually orders for the US take two to three month and for the UK four weeks to fulfil. Traditionally the company used to hold high levels of finished goods. However more recently the company is beginning to move both production and delivery...
