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Carrefour Hypermarket Essay

A hypermarket or multi department store is a superstore which combines a supermarket and a department store. The result is a very large retail facilitywhich carries an enormous range of products under one roof, including full linesof groceries and general merchandise. When they are planned, constructed, andexecuted correctly, a consumer can ideally satisfy all of his or her routine weeklyshopping needs in one trip. The example of hypermarket have been set up inMalaysia is Carrefour, Tesco, Jusco, and Giant (foreign hypermarkets) besidesother local hypermarket such as Mydin. Following are background of theCarrefour hypermarket and Mydin hypermarket.The first Carrefour store opened on 3 June 1957, in suburban Annecy near a crossroads (carrefour in French). Today it is the smallest Carrefour location inthe world. The group was created by Marcel Fournier and Denis Defforey andgrew into a chain from this first sales outlet.

In 1999 it merged with Promodès,known as Continent, one of its major competitors on the French market.Marce Fournier and Denis Defforey had attended several seminars in theUnited States led by “The Pope of modern distribution” Bernardo Trujillo, whoinfluenced other famous French executives like Édouard Leclerc (E.Leclerc),Gérard Mulliez (Auchan), Paul Dubrule (Accor), and Gérard Pélisson (Accor).Their slogan was “No parking, no business.”The Carrefour group pioneered the concept of a hypermarket a large supermarket and a department store under the same roof. They opened their first hypermarket 15 June 1963 in Sainte Geneviève des – Bois, near Paris inFrance.1976 Carrefour introduces ³produits libres´ which are unbranded product but³just as good, and cheaper´.

In 1992, Carrefour creates filiere quality systems,which quarantee product origin and traceability. Carrefour opened their firsthypermarket 1994 in Malaysia. In the 21st century, hundreds of millions of men and women will become part of the consumer society within a globalized economy. Globalization does, however,pose new types of risk for both human society and our planet. Faced with suchrisk, and in order to improve prospects for future generations, it is crucial tofollow the path of sustainability, which combines economic profitability, respect for the environment and both social and ethical development. mission

Carrefour are totally focused on meeting the expectations of their customers. Carrefour mission is to be the benchmark in modern retailing in each of their markets, by offering : * Their customers: – the best prices and the best merchandise, in every banner and every country. * Their staff: – the possibility of growth and fulfillment in a trusting environment, withinteresting jobs and motivational compensation. * Their shareholders: – a sustained return on their investment and the growthprospects of a global, multi – format retailer. * Their partners, franchisees or affiliates: – leading banners and brands, marketingand sales expertise, purchasing power and constantly improving techniques. * Their suppliers: – markets, customer intelligence, and cooperation to improveproducts through long – term, mutually beneficial relationships. * Public, local and national authorities: – a deep commitment to the community,as a socially responsible economic actor and good corporate citizen.

Objectives
•Improve customer satisfaction
•Improve profitability
•Significant reduction in excess inventory

Carrefour is a public limited company with a share capital of 1,790,354,427.50 euros divided into 716,141,771 shares and with some 460,000shareholders. Carrefours employees own 2.98% of the Groups share capital.Their attention to social and environmental performance preserves their share price and attracts new investors sensitive to social and environmental issues.Carrefour strives to guarantee to its shareholders the transparency of its corporategovernance. Ethical, social or environmental issues are dealt with by Carrefour’s key decision making bodies : 1. The Board of Directors – is Carrefour’s main governing body. It comprises 11members of whom 3 are independent directors, and is assisted by a Strategic Steering Committee, an Audit Committee and a Wages and Salaries Committee.

2. The Executive Committee – is the backbone´ of Carrefour’s managementstructure. Under the impetus of its chairman, it recommends strategic directionsand guidelines and organises their deployment. Its membership reflects the waythe Group is structured per geographic area with cross – sector support functions. 3. The Quality & Sustainable Development department, – which manages thesustainable development programme, reports directly to the CEO and advises theExecutive Committee on sustainability issues.

Carrefour products

Besides, With its customers needs in mind, Carrefour decided in 1985 toreplace its “produits libres”, generic product line created in 1976, with an own -brand line, which is produced for the most part by small – and medium – sizedbusinesses and manufacturers. Today, Carrefour sells over 2,000 products thatmeet very strict specifications with regard to their price / quality ratio, taste,authenticity, food safety, traceability and innovation. Carrefour also sells 5,000 non- food products under its own brand names. Outside laboratories conduct qualityaudits of our non-food products at various stages in their production to make sure theymeet our specifications.

Carrefour’s organic line now offers 130 products in its freshfood, grocery and frozen food aisles. All products in the Carrefour organic lineare inspected and certified by the independent certification organization ECOCERT,and must meet organic farming specifications (no chemical fertilizers, no syntheticpesticides). Everyone who works with Carrefour to produce its organic line makes a long – term commitment to adhere to demanding production control and producttracking specifications. Regular inspections are conducted at every stage of themanufacturing process, up to and including inspections of the finished product.

Carrefour market positioning

Carrefour does business, its stores have further moved its marketpositioning towards the discount end through a policy of low prices andlargescale promotions. The banners concerned by the conversion to the eurolocked in their prices through May 2002 and maintened a freeze on own brandsover the whole year. The price positioning was supported by many promotionalcampaigns. In the first half, Carrefour won back market share in Brazil byconducting three short promotional campaigns a week. In the second half, thegroup’s 40th Anniversary offered a worldwide opportunity to display thecompetitive nature of the product range. Other international promotions such asthe ones in countries involved in the World Football Cup, helped to boostthe stores financial performance.

Carrefour branches

With operations in 30 countries, Carrefour is the world’s second largestretail group. It is the number one retailer in Europe. Carrefour has also been present in the Americas since 1975 and in Asia since 1989. This success stems from their ability to adapt their strategy to fit local markets and to make globalisation an Opportunity for progress. Wherever they do business, they striveto raise local standards in terms of quality, service, working conditions and preserving the environment. They also mindful of their contribution to the labour market, in some countries, like Argentina. Carrefour is the largest private sector employer. Market positioning is the act of designing the company’s offerings and image to occupy a distinctive place in the mind of target market for its product, brand, or organization. It is the ‘relative competitive comparison’ their product occupies in agiven market as perceived by the target market. Market positioning strategy usedby all retail industry such as foreign hypermarket. Below type of market positioning strategy used by retail industry .

Product offered by Carrefour is a basis to differentiate other hypermarket product. The bases used in Carrefour hypermarket are * Quality – Quality is one of Carrefour main source of competitive differentiation and is partof the fundamental policies defining the implementation of the Carrefour’s strategy. It always corresponds to what the customer explicitly or implicitly wantsand must be clearly perceived as such. The value for money must be the best.Controlled products whether banner brands or own brands, offer exemplary qualityand safety. A product must demonstrate the required quality level before it canbe approved for purchase. * Guaranteeing food products safety and quality – The best possible value for money is offered at every price level (first priceproducts/ own brand and banner brand products). For own brand and banner brand products, the quality process includes signing a set of specifications,approving production sites and product control plan, processing and archiving anycon-compliant products and following up of customers claims.

To complete thissystem, Carrefour has deployed in 2005 a Quality Scorecard available on theintranet site, which enable all the Carrefour to track products at every stage of their marketing and to react more efficiently in case of a crisis. * An approach shared with our suppliers – To guarantee the quality of its food products and its own brand and banner brand products, Carrefour systematically conducts audits on its suppliers’s production sites, which are audited health and safety conditions. Suppliers’s production sites are audited by Carrefour, its service providers or certificationagencies. Suppliers are audited with respect to health and safety conditions, riskcontrol, traceability and compliance with specifications. In addition, Carrefour endeavours to verify progress in product development Quality at the best price: first price products First price No1´ products launched in Malaysia. Drawing on synergies andpurchasing volumes at the Carrefour, these products are intended to offer consumers quality products at a price that is 5% to 7% below hard – discountprices. In addition to meeting existing legal requirements, No1 products alsoreflects the quality and safety approach that characterizes all their own brandand banner brand products.

Carrefour has decided to apply the same position for No1 products as for own brand and banner brand products by excludinggenetically modified organisms from the composition of all products. * Quality information on non – food products labels To promote the quality of its own – brand products and retail brand productsamong consumers, Carrefour hypermarkets decided to optimize the quality of information on the packaging of its Carrefour brand non – food products. Four criteria, symbolized by four icons, were adopted, referring to usage, safety, health and the environment or social conditions of production. The packaging points outthe most striking criterion for each product by explaining in one or two sentencesthe product’s added – value. This is signed with the commitment logo of Carrefour, which provides Consumer services with evidences of its procedures.Carrefour has already used this method on paints, backpacks, toys and scents.

This approach will be extended to include children’s products, paper goods,sporting goods and food containers. * Ensure in store safety and quality The proper upkeep of stores and the respect for the cold chain and food safetyare key elements of the Carrefour’s policy in Malaysia . Thus the Carrefour mobilizes all its employees to ensure respect for health and safety rules. Thisinvolves training, establishing procedures, and systematic hygiene and qualityaudits in stores and warehouses.

* Improve nutritional information on food products labels Facing with a disturbing rise in food-related problems and to help customers tocombine food products better for a more balanced diet, in early 2005, Carrefour has optimized the labelling of its Carrefour brand products. The Carrefour’s Commercial Department has worked with the CLCV to develop a more accessibleand helpful presentation of nutritional information. The packaging has now a³nutrition box´ indicating the share of daily needs for six main nutrients ( fats,sugar, carbohydrates protein, fibre and salt) provided by the products.

Brand

The Carrefour has had successful financial results, has gained market share,and makes customer happy. This is a reward for all employees, as all of themplay a role in this result. In fact, over 90% of the employees work in contactwith customers. That means that customer happiness is closely linked to theemployees’ performance. The Carrefour has developed various tools, depending onthe employee’s position to assess the employee’s performance. For instance,tools for cashiers include such indicators as turnover and absenteeism. A number of teams participated directly in the preparation of the strategicplan through participating.

In task forces that brought together people from allstore formats and all geographical areas. Being linked to the global strategy is agreat motivation for store managers. Moreover, the strategy is probably moreappropriate this way, so it is in turn easier for managers to implement theprograms with the employees. Since 2000, hypermarkets have systematized listening to employees toassess their satisfaction. Over 8,000 persons, both managers and employees,used it to express their point of view. It enables the Group to have a fair overview of labour relations, to adjust its management style and to draft actionplans that factor in employees’ recommendations and comments. Besides, general staff benefits include such as

* Contractual Bonus
* Service Awards Programme
* Out Patient Treatment Benefits
* Group Personal Accident Plan
* Group Health Plan (Cover includes immediate family members)
* Structured Skills Career & Development (Programmes Structured SkillsCaree)

Additional benefits for Non-Executives include allowances for:
* Transportation
* Attendance
* Punctuality
* Cashier ( cashier only )
* Festive incentive ( ie: Hari Raya, Chinese New Year, Deepavali)

At Carrefour, they constantly strive to be a responsible corporate citizen andundertake various measures to give back to the community and society as awhole. Carrefour strive to make a difference in the lives of the community fromthe urban to the rural and they are driven by the belief that all life is special anddeserves attention. Carrefour believes in operating business with integrity andcommitment to quality. This conviction that begins with us as an individual andthrough this inward conviction, Carrefour will make a difference in the lives of people around Malaysia.

Personnel Differentiation

The Carrefour Group has formalized its progressive approach based onthree key commitments: quality and safety, respect for the environment andeconomic and social responsibility. Safety commitment on Drug Perfume and Hygiene products (DPH) All suppliers are required to abide by Carrefour’s policy on cleaning,detergent and cosmetic products. No cosmetic product has been tested onanimals by Carrefour’s purchasing office or on its behalf for 10 years. Products and their formulas are rigorously scrutinized by a team of six internal specialists,with the support of an additional team of recognized external experts. Some of the group’s banners are taking this approach even further.

Safety commitment on textiles and clothing for babies and children In 2003, Carrefour has developed specifications to improve the safety of clothing and textile products intended for children and babies. In two years, morethan 5,000 textile products involving over 200,000 substances were tested byindependent agencies. This safety requirement has been boosted by regular monitoring conducted with the help of specialists, toxicologists and allergists for all textile products.

Based On services Differentiation

The Carrefour puts its customers at the heart of everything it does. To thisend, it has simplified its organization, giving more independence to storemanagers to enable them to adapt their business as closely as possible to theneeds of their catchment area. Alongside this, the Carrefour has expandedcustomer choice, adapted its store brand ranges and increased its serviceoffering. New store concepts have been introduced to respond to evolutions intheir customers’ lifestyles. For some years now, the Carrefour has also beenstrengthening its loyalty programs around this country to ensure that they reflectthe latest consumer and social trends.Over the years, Carrefour has added numerous practical and accessibleservices to its offering. The Carrefour has thus become a competitive player andthe benchmark in several areas of activity outside of its core business line.Carrefour made significant capital expenditures in 2002 to reconfigure its stores tomake them more attractive and improve customer service.

Reorganized salesareas and product staging make the best of the Carrefour’s various areas of expertise. This applies to both the food and non ± food areas in hypermarkets. At Carrefour, they welcome customer views and comments which will help themimprove their service to customer. As in many other businesses, it is a crucial point for the Carrefour to learnabout their customers and to do everything they can to satisfy them. ThusCarrefour has defined what builds up a positive experience for the customer;apart from the differentiation strategies, price positioning strategies, distributionchannel and marketing mix, can see that the success factors contribute on itsproducts or services.

The Carrefour mostly sells consumer goods and servicessuch as: * Convenience goods (food products, gas) which are sold by all formats of retail stores. * Shopping goods and services (household appliances, electronic devices)which are sold by hypermarkets only. * Cash & Carry and wholesale stores sell industrial goods (mostly food) asthey sell to businesses (food trade professionals).Carrefour’ s success factors used on its product are: * The Carrefour¶s product be unique and different from the existingproducts in the market. (CG Home theatre system very unique and different from other Hometheatre at market). * The product has sales in needed and wanted by the consumers.(Carrefour arrange different product in festival seasons such as HariRaya, Chinese New Year, Deepavali and Christmas. Example: LuckyBamboo, cai Shen scoll, honey mandarin and assorted paper card – inChinese New Year and Christmas table, Christmas trees and colourfullights ± in Christmas.) The product have high consumer demand and a high growth rate. ( allkind of product).

* The product has to be reasonably priced and affordable to the majorityof consumer. ( all kind of product). * The Carrefour have sufficient funds to build consumer awareness andcarry on other promotional activities. ( Carrefour Gift Vouchers, Carrefour Bonus ) . Form The products design different from other products, example GC product.QualityCarrefour always guarantee that all products they sales are safety and goodquality. Brand At Carrefour they sales CG brand products, which one mostly unique anddifferent from other brand products at market. Besides Carrefour also sales other product such as TOSHIBA, PENSONIC, ELBA, FABER, SAMSUNG, SHARP, LG,Goldsonic and etc.Durability A product that can last for many years is perceived as a product of goodquality.FeaturesCG products have various attractive features such as CG television set with loudstereo sound, clear picture quality , remote control and a big screen falls into thegood quality product category.

Carrefour FreshFOod Carrefour also offer fresh food to consumers which one given the opportunity toconsumer to make many choices, an opportunity which has so far been lacking in Malaysia Carrefour. In terms of fresh produce, choice also pervades. Pursuingthe unconventional, for example, Carrefour will carry those items that other storesshy away from: at Carrefour one can find curved cucumbers, freshly harvestedcabbage (ones that have not gone through any additional processes), and other items that suffer from no real, discernible defect in quality.

Besides Carrefour also carry fresh food like fresh chicken, fresh fish, fresh Australia Beef, freshprawn and etc.Differentiation strategies on Carrefour Fresh Food are based on productdifferentiation.QualityThe “Quality Way” products are the result of the collaboration between Carrefour and chosen producers, who have committed themselves to strictly follow a qualityletter statutes agreement. The aim of the collaboration is to provide consumerswith healthy and safe products. The products certified with the “Quality Way” signare quality and safety guaranteed, from the first production stage until the finalpositioning on the shelves. Some fresh food in Carrefour certificated as “QualityWay” are : “Halvah quality way”,

“Chicken quality way”,
“Free Range Eggs quality way”,
“Fresh Fish tsipoura quality way”,
French beef,
Salmon,
Biological bread,
“Barrel Feta quality way”,
“Pork quality way”,
“Apples agorin quality way”,
“Peaches and Nectarines Veria quality way”,
“Seabass quality way”,
“Kiwi quality way,
Feta Tin quality way

Based on services differentiation.Carrefour also provide customer service such as Cutting Service (Scalling / Cuttingservice for meat products upon request). Carrefour Family G oods. Carrefour also carry family Goods such as Carrefour Baby Goods (Food range,hygiene, perfumery, childcare products, toys, apparel developed under the adviceof a committee of pediatricians and specialists, in order to guarantee the baby’s development from 0 to 36 months with security and comfort.), Carrefour KidsGoods ( Food range, general merchandise, apparel, designed to develop goodhabits (fight against obesity with less fats, sugar and salt), as well as developingautonomy, satisfying the tastes of children between 4 and 10 years old throughadapted packaging and the use of the mascot: Genius), Men’s clothes, Lady’ sclothes (variety of clothes) and etc.

Differentiation strategies on Carrefour Family Goods are based on productdifferentiation.QualityCarrefour always guarantee that family goods they sales are safety and goodquality specially Babys Goods. To guarantee the quality of its products and itsown brand and banner brand products, Carrefour systematically conducts auditson its suppliers’ production sites, which are audited health and safety conditions..Suppliers are audited with respect to health and safety conditions, risk control,traceability and compliance with specifications.

Distribution Channel

The Carrefour as a whole is an efficient channel of distribution: it is a whole setof marketing intermediaries that have joined together to transport and store goodsfrom producers to consumers. The Carrefour acts as a wholesaler as the Groupsells products to franchises. All the retail stores are other intermediaries. Some of the producers are local while other goods are bought by bulk purchases or global sourcing. That means that Carrefour has to organize the wholetransportation to its retail stores. Carrefour is mainly concerned with outboundlogistics as they manage flows of finished products to ultimate customers (and tobusiness buyers for cash & carry). This is a critical activity for Carrefour: they just cannot have empty shelves because that would not make customers happy!Each day, 8 trucks are needed to deliver products to one hypermarket! They usesophisticated software to create an efficient link between sales and purchases.They use ³push ± pull – push´ logistics.

It means that they both do forecasts andthey also control what is sold in order to adapt. Before the merger Carrefour ±Promodès, both firms had their own channels of distribution. After the merger,they decided to organize a common and efficient channel of distribution. It can bedivided into three networks: grocery products which stay a very short time in warehouses for hypermarkets the same products for supermarkets, convenience stores and Promocash products which stay a bit longer in warehouses, and that are delivered toall formats of stores This new system enables to reduce the distance over which the products aretransported (thus reducing the cost), and also shortens the time for the delivery.Moreover, with the ³multidrop system´, only one truck is used to transportproducts from a manufacturer to two close warehouses.

Carrefour owns manyhuge logistics platforms (also called distribution warehouses). They gather products from different manufacturers (which are suppliers for Carrefour), andredistribute these products to the different stores when they need them. Theyhave introduced technological tools: those who prepare orders are helped by avocal recognition tool, in order to avoid any mistakes. Manufacturers used tostore finished goods in their own warehouse, and then, the goods weretransferred to Carrefour warehouses. Carrefour now wants to transport directly thefinished goods from the manufacturers’s to Carrefour warehouses.

Marketing mix

The marketing mix looks at the four main factors that go into a marketingprogram (Product , Price , Place , Promotion ) , which are referred to as the 4 Ps. PRODUCT

The Carrefour needs to design their stores so that they meet customers need.This includes having the right store format, helpful services, the appropriateproduct mix , and a reliable private label brand.Carrefour have adapted the kinds of products they sell to the local culture. For instance , Chinese people do not always have a huge refrigerator , so theyappreciate fresh products. Thus , Carrefour , by guaranteeing both prices andquality for lots of fresh products has a real advantage : it is much easier andpractical to buy fresh goods.Moreover , in Carrefour , they also sell western products for the western peopleliving here.

This market segment needs were not yet fulfilled, as westernproducts are not sold elsewhere. In Carrefour Malaysia, people can buy suchgoods as chocolates, wine, and even cheese or cookies just like in France. Thegroup also adapted its services to local shopping habits. For instance, inMalaysia , people often drive to hypermarkets , only once a week. They buyeverything they need for the week, and a car is very useful to transport thegoods back home. That is why big parking lots are needed. ( in convenience stores ) Although the Carrefour sells a lot of goods with a manufacturer’s brand names(such as Danone , Yoplai t or Nestlé ), they also sell dealer (private – label)brands:

* Carrefour (in Carrefour hypermarkets) ,
* Champion( in Championsupermarkets )
* Grand Jury ( in convenience stores ).

Thus, these products donot carry the manufacturer’s name. The Carrefour product range now includes11,000 mass-market products and miscellaneous household goods.They have paid a special attention to the packaging so that the brand isimmediately recognizable . It has a special colour code , displays the Carrefour’squality commitment, complete labelling information and a display of the Carrefour’s satisfaction or consumer money back´ policy. In order to improve these brandsequity, they use widely recognized labels to promote trust among customers.

The brand loyalty is very high. The Carrefour brand is the best – selling brand inCarrefour hypermarkets, representing 25% of the total sales. Nine out of 10customers fill their shopping carts with Carrefour brand products. Thus, these products donot carry the manufacturerss name. The Carrefour product range now includes11,000 mass-market products and miscellaneous household goods.They have paid a special attention to the packaging so that the brand isimmediately recognizable . It has a special colour code , displays the Carrefourssquality commitment, complete labelling information and a display of the Carrefourss satisfaction or consumer money back´ policy. In order to improve these brandsequity, they use widely recognized labels to promote trust among customers. Thebrand loyalty is very high. The Carrefour brand is the best – selling brand inCarrefour hypermarkets, representing 25% of the total sales. Nine out of 10customers fill their shopping carts with Carrefour brand products.

PRICE

This is a very important P in Carrefour’s strategy, they even talk of the ³priceimage´ of the group.The objective of the Carrefour is to reduce prices in all formats of stores.In 2005, the clearly stated objective of each hypermarket was to be the leastexpensive store within its market radius. This is a competition – based pricing,their strategy is based on what other competitors are doing (including harddiscounters and informal traders), and the Carrefour tries to set the price belowthe competitors.However, they also seem to have a demand – based (or target) pricing as theyconstantly try to reduce prices to meet or exceed customers expectations, eventhough they are already under their competitors’ price. The objective of this pricereduction strategy is to attract more people to the stores, thus gaining market shares.

The objective can be explained as a virtuous circle: the more they sell,the more economies of scale they can do, the more they can lower prices thusattracting more customers. The Carrefour has reduced the necessary time toanalyze the research data and to adjust price displays in each department to 24to 72 hours maximum. They pay a particular attention to the pricing of ³sensitive´categories of products (those that the customers notice). They have also studiedwhat factors contributed to this image. The main ones are fresh product pricecompetitiveness, reliability and quality of the price indications, pricecompetitiveness of the private label range.

PLACE

This P is about putting the product in a place where people will buy it.The Carrefour adds value to goods or services by different means. Form utility – The fresh bakery department in hypermarkets uses variousingredients to make croissants, bread and baguettes on the spot. Other departments such as the butchers’s and the fish department also perform formutility. Time utility. – In order to make products available when they are needed, theCarrefour has developed a new format according to consumer needs and wants.

Place utility – In order to sell products where people want them, the Carrefour has different store formats. For instance, in Malaysia , hypermarkets are intown suburbs easily accessible by cars. Possession utility – The group provides credit. With the PASS Card, customerscan spread out their payments and make their purchases on credit. TheCarrefour also helps to take a loan to buy a car for example. When you buybig goods, hypermarkets can deliver them to you.

PROMOTION

Promotion is the effort to inform and remind people in the market about productson sale in the stores, and to persuade them to buy. Carrefour uses various tools(advertising, public relations, sales promotion) which altogether are called thepromotion mix. It is worth noticing that as other big retailers, they do not usepersonal selling. Advertising – Carrefour slogan (Lebih Jimat, Lebih Hemat ) is probably one of the best knownamong Malaysian people. It is quite simple to remember. It just means that withCarrefour, can be very optimistic as everything is so great in these hypermarkets. As they target the local market, it is highly efficient as people see the billboardsmany times. Time to time, they use other medias such as the TV to promotenation ± wide events. Public relations – In order to inform the public of the changes that are being made by Carrefour,and to show how this is a good thing to customers, Carrefour has a veryefficient information programme. Moreover, as Carrefour is one of the biggestfirms, there are many newspaper articles about the Carrefour.

Overall, thesepublications are a good publicity for the Carrefour. Sales Promotion – is the promotional tool that stimulates consumer purchasing anddealer interest by means of short – term activities. Carrefour Hypermarketsregularly send catalogues to all households that live nearby. In each hypermarket, they have a reserved zone where they make special displays to present newproducts. There are also reduction coupons for those who have the loyalty cardCarrefour. They can have reductions of 20% on most popular products. Specialevents are organized each time they open a store. They also use bonuses (buyone, get one free), especially one they want to get rid of their stock. The Carrefour’s need to attract the greatest possible number of people totheir retail stores.

As different market segments have different needs, they needto have different formats of retail shops to fulfill these needs. For instance,elderly person often do not have a car and live alone, so they need a storenear their house, they need district shops. However, large families with childrenare looking for hypermarkets where they can buy goods at a cheap price, justonce a week. So that Carrefour need deploying an ongoing and aggressive low-price policy by expanding its in ± store promotions and communications.Besides Carrefour need to: Strengthen environmentally conscious product and packaging design anddevelop a range of products with social and environmental added – value.

* Ensure product safety and quality, and customer and and employee safetyat our store locations. * Guarantee respect for human rights internally and along their products’supply chain. * Promote staff training and development, and inform staff of their view of the world, and their core values, their policies and their approach tosustainability. * Respect customers’ freedom of choice by offering them a wide range of products at attractive prices with full, factual information. * Making the brand work harder will help Carrefour grow sales and profitsin Malaysia. * Offer a more diversified product mix than traditional with hard discount.

Reference

* Carrefour Malaysia. (online). Available: www.Carrefour.com.my. * Carrefour Group. (online). Available:
* www.Carrefour.com.
* Wal-mart store inc. (online). Available: www.Wal-mart.com


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