Monday, 12 November 2007

Finance and scandals

Marionnaud is a very important firm , it’s the leading perfumery chain in France with a market share of 30%.

The company has a strategy of low prices. The company offers its products at the same prices in the spaces in the shopping centres and in the stores in the town centres.

Marionnaud is a profitable company, in 2005 its turn over was 1,136 billions of euros.

But Marionnaud it’s too a scandalous firm, in September 2007, Marcel Frydman the ex chairman was sentenced to breach of trust. Frydman must pay 15 000 euros of fine and several thousands of euros of damages.

He reselled illegally perfume bottles of test of prestigious brands.

Marcel Frydman

In addition to this scandal, the firm was sentenced to vertical agreement about the prices between 1997 and 2000.

These financial scandals can give problems to the company, Marcel Frydman, the founder of the firm was a charismatic chairman and I think these problems can create bad feelings among the employees.
The consumers can be shocked by these scandals. They touch the integrity and the brand image of the company.
I think these problems are bad for the image of all perfumery chain in France because the scandal of 2000 implicated the entire sector of perfumeries and beauty.

But Marionnaud is a strong company, it succeed in creating a unique link with its customers and the firm will overcome these problems.

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