All store formats: Introduction stage

Characteristics:
Sales Costs Profits Customers

Low sales
Seeking to sell lower-cost products but face difficulties due to few economies of scale

Few / negative
Emerging markets, seeking to penetrate market

Competitors Weak competition

All store formats: Introduction stage

Marketing Objectives

Create awareness

Brand positioning

All store formats: Introduction stage

Strategies:

Product

Less assortment of products Reduced store size Testing of store layout

Service

Few services offered

Strategies: Price

Low cost

Distribution

Advertising/ Sales promotion

Testing of marketing policies

All store formats: Growth stage

Characteristics:
Sales Costs Profits Customers Competitors
Rapidly rising sales Lower-cost products due to economies of scale

Rising profits
Growing penetration in emerging markets

Growing number (eg. When Carrefour first entered

the Chinese market in 1995, Walmart followed suit and opened its first supermarket in 1996 in Shenzhen.)

All store formats Growth stage

Marketing Objectives

Maximise market share

Build a strong brand Brand sponsorship

Carrefour create its own store brand

Strategies:
Product

Hypermarkets & Supermarkets Growth stage

Greater assortment of products (introduction of store brands) Larger store size Improved store layout (more spacious) More services offered
In 1960, launched self-service hypermarkets throughout France In 1999, Carrefour launched Spectrum 24R wireless local network infrastructure in its stores in Asia. This system helped improve both productivity and inventory management. -Eg. In China: free delivery for large appliances, free parking, goods exhangeable within 15 days -Provide information to customers through information desks, websites, catalogs

Service

Strategies: Price
Focus on good-value pricing

Distribution

Advertising/ Sales promotion

Marketing campaigns emphasizing on low-cost, high quality goods Use of slogans (Eg. France, 1988-2003 : "I have a positive outlook with Carrefour France campaign: Consuming better)

Hypermarkets & Supermarkets Maturity stage

Characteristics:
Sales Costs Profits Customers Competitors
Peak sales

Lower-cost products due to economies of scale and greater channel efficiency

High profits Full penetration (millions of customers shop at Carrefour hypermarkets everyday in France)

Stable number, beginning to decline as Carrefour acquire smaller retailers

Hypermarkets & Supermarkets Maturity stage

Marketing Objectives

Maximise profit while defending market share

Brand development - Increase brand equity - Create competitive advantage

Hypermarkets & Supermarkets Maturity stage

Strategies:
For both its store brand and national brands that it stocks, Carrefour can:

Product

Add new product lines, widening its product mix Lengthen its product line Deepen its product mix

Service

Internal marketing: conducted employee satisfaction surveys, improved work environment, training customer satisfaction survey Greater range of services such as ATM terminals, facilities for the handicapped

Strategies: Price
Good-value pricing Value-added pricing

Distribution

One of Carrefours main advantages in Asia is its ability to integrate fully into the local context. In every country, the Group takes up the position of a local player. To achieve this, it develops close and long-term relations with local suppliers

Advertising/ Sales promotion

Introduced the loyalty program, enable additional price reductions (strenghten brand loyalty, give better insight into consumers habits)

Hypermarkets & Supermarkets Decline stage

Characteristics:
Sales Costs Profits Customers Competitors
Declining sales

Competitors offering even lower cost products

Declining profits
Loss of customers as Carrefour no longer understands customers changing needs Loss of competitive advantage to competitors. Rapid growth of competitors

Hypermarkets & Supermarkets Decline stage

Marketing Objectives

Increase profit, gain back the market share that it has lost

Reinvention
- eg. Carrefour Planet

Brand development - Increase brand equity - Create competitive advantage

Hypermarkets & Supermarkets Decline stage

Strategies:
Carrefour Planet
a retail space organized to surprise shoppers. A big central aisle offers different specialist areas identified by simple colorful signage, designed to offer a new shopping experience focused on easy shopping, novelty and pleasure. New ideas: a salmon smokery, a sushi bar, cookery courses A frozen food department is near checkouts allowing customers to finish their shopping here and pay for their goods before things start to defrost. A media section that leverages partnerships with Apple

Product

Service

Childcare area A Beauty offers services like a nail bar, rapid make-up and hair styling Free clothes alteration service provided

Strategies: Price

Good-value pricing Value-added pricing

Distribution

Advertising/ Sales promotion

Another innovation is a space devoted to events at the entrance to the store. Renewed every two weeks, the space hosts major promotional events highlighting the prices in the store

Hard-discount: Growth stage

Characteristics:
Sales Costs Profits Customers

Low sales
Seeking to sell lower-cost products but face difficulties due to few economies of scale

Few / negative
Emerging markets, seeking to penetrate market

Competitors Weak competition

Hard-discount: Growth stage

Strategies:
Product

Low sales
Seeking to sell lower-cost products but face difficulties due to few economies of scale

Service
Price Distribution Advertising/ Sales promotion

Few / negative
Emerging markets, seeking to penetrate market

Weak competition

Hard-discount: Maturity stage

Characteristics:
Sales Costs Profits Customers

Low sales
Seeking to sell lower-cost products but face difficulties due to few economies of scale

Few / negative
Emerging markets, seeking to penetrate market

Competitors Weak competition

Hard-discount: Maturity stage

Strategies:
Product

Low sales
Seeking to sell lower-cost products but face difficulties due to few economies of scale

Service
Price Distribution Advertising/ Sales promotion

Few / negative
Emerging markets, seeking to penetrate market

Weak competition