Raynonplus is a small, family-owned eyewear business located in Ottawa, Ontario, Canada. Started by Pierre Dupuis in 1962 under the name of Visionplus, the company has been exclusively owned and operated by the Dupuis family for over 50 years. Currently, the businessa sole proprietorshipis owned and managed by Gerald Dupuis, grandson of the original entrepreneur. The Dupuis' changed the business name in 1967 to capitalize on a trend in polarized sunglasses that swept the neighboring French-speaking province of, Quebec.

Traditionally, Raynonplus sold a wide range of generic and brand-name eyewear including prescription lenses, contact lenses, frames, and sunglasses, but no proprietary goods. After Gerard took over the business in 2014, he and his fashion designer wife Dominique introduced their own brand of sunglasses under the trademarked name of Ray Porter. Initially, the brand was marketed as an alternative to lower-end or generic prescription sunglasses. The demand for these sunglasses, fueled by the bold and unconventional styles and materials used by Dominique in her original designs, soon elevated the Ray Porter brand into designer label market status. Customers from Quebec made up a large part of the target audience, accounting for 35 percent of sales.

I wear my sunglasses... in France.

One of Ray Porter's biggest customers is Quebec pop sensation Zo, an international superstar in the French-speaking world. In addition to wearing them in her everyday life, Zo incorporated custom-designed Ray Porter sunglasses as part of the wardrobe for her European concert tour. The unsolicited celebrity endorsement sparked a frenzy of demand for sunglasses in France.

Keep your vision in focus.

Having been a relatively small family-owned business selling goods exclusively in Canada for half of a century, Gerald Dupuis now had to decide his best market strategy for his newfound international success. Taking a cautiously optimistic approach to their new opportunity, Gerald and Dominique decided to keep the manufacturing of Ray Porter's sunglasses in-house initially by contracting to local artists and art schools to meet demand.

Determining the optimum way to sustain the market momentum as well as to distribute the goods effectively and efficiently in France was the biggest dilemma for Raynonplus. Gerald was not convinced the success was more than a trend and wanted to preserve the business as a family operation for as long as possible. As such, he was reluctant to relinquish operational control or jeopardize the existing business success in Canada.

After careful research and consultation with specialized trade lawyers and experts in international marketing, Gerald narrowed his choices to either contracting with an international sales agent or finding a distributor in France. He chose a small, established upscale chain of family-operated accessory stores named Le Seul Choix (translates to 'the only choice") as a distributor.

Ray Porter continues to sell well in France, accounting for 20 percent of all the overall sales for the Raynonplus proprietary brand.

Discussion Questions

Q1. What are some of the benefits that would have compelled Raynonplus to choose a distributorship agreement over an international sales agent agreement?

Q2. List another possible form of foreign market entry Raynonplus could have considered as a market entry strategy. Given the details of this case, would this option be the better choice for Gerald? Compare with the distribution agreement.

Q3. When negotiating the distribution agreement, what are some of the items Raynonplus and Le Seule Choix should include in the contract? Please list and explain each item in detail and your reasoning for inclusion. (Minimum 5 items you would include in the agreement as a business person).

Q4. Regarding intellectual property, what measures will Gerald need to take to protect Ray Porter from losing financial compensation and creative control of its brand? Consider - France, Europe, Canada, and internationally.

Note:- Please share referencing to sources