GRADE - XII MARKETING PROJECT (2017-18) NAME OF STUDENT: LOVELL MENEZES MENEZE S PROJECT SPECIFICS: FUNCTIONING OF DEPARTMENTAL STORE 1
The Millennium School, Dubai MARKETING
CERTIFICATE
Certified to be the bonafide record of the project work done by Master/Miss. ……Lovell …… Lovell…… …… of Grade XII as prescribed by the Central Board of Secondary Education, Delhi during the academic year 2017 – 2018.
…………………… Teacher in- Charge
……………………… Principal
Submitted for the Practical Examination on………..2018 held in The Millennium School, Dubai.
……………………… Internal Examiner
……………………… External Examiner
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ACKNOWLEDGEMENT
I , Lovell do hereby declare that this project is my original work and I would like to thank Mr.Masood Mr.Masood for his wholehearted support and guidance for making it possible for me to complete this project on time. I would also like to thank my friends and family members for their kind support and guidance without which this project would not have completed.
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“ Visited a departmental store/retail store/retail shop or consumer co-operative store located nearby to study and report on the functioning of the store or shop.”
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INDEX
S.no
Topic
Page
Signature
1
Cover page
1
2
Ce Certificate
2
3
Acknowledgement
3
4
Project Topic
4
5
Index
5
6
Carrefour
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7
Introduction
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Functioning of the store
9
Product Mix
11-13
10
Price Mix
14-17
11
Place Mix
18-19
12
Promotion Mix
20
13
Major Competitors
21
14
Case Study
22
15
SWOT Analysis
16
Co C onclusion
25
Bibliography
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17
7-10 11
23-24
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Founders: Marcel Fournier, Denis Founders: Marcel Defforey, Jacques Defforey
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Introduction History of the founders Carrefour emerged in 1959 as a collaboration between two entrepreneurs, Marcel Fournier and Louis Defforey, in Annecy, a city in eastern France that had become increasingly industrialized since World War II. Both men came from successful, enterprising families, and each was anxious to expand his own business by building large supermarkets. Fournier already had established the department store (Grand Magasin de Nouveautés Fournier d’Annecy) and had connections in the Casino supermarket company, and Defforey was president of Badin-Defforey in Lagnieu. History of the store In the 1950s the French grocery industry consisted primarily of family operations. Traditional grocery stores, committed to providing a variety of high-quality products, accounted for 83 percent of food sales. As fewer young people entered into family businesses, however, and grocers' unions, independent wholesalers, and food cooperatives increased in number, a need for alternatives to the smaller markets developed. At the same time, big department department stores, generally located in the center of cities, often proved inconvenient, inconvenient, and the high prices they charged for luxury items and value-added services were prompting consumers to look elsewhere for nonfood items.
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Moreover, the concept of free service was becoming increasingly popular. Free service, prevalent in retail by the 1990s, was invented in 1916. Prior to its institution, consumers consumers relied heavily on assistance from sales clerks in selecting and obtaining merchandise. Under the free service system, however, customers used bags, carts, or baskets to collect their needs--placed within easy reach and individually priced--while sales clerks served primarily as cashiers. The supermarket, which first appeared in France in 1954, used the concept of free service. With larger facilities located outside the center of cities, supermarkets could provide fresher produce, a greater variety of products, and lower prices than the traditional grocery store. By the end of the decade, however, only 33 free service supermarkets were in operation in France, and none of them was modeled after the large discount supermarkets in the United States. Thus, in May 1959, Fournier and Defforey decided to incorporate these virtually unexploited concepts for their store in Annecy. An offering of 7,000 shares of stock was made to ten stockholders, and a facility already under construction in Annecy was purchased. The ground floor of the building was to be used as the supermarket, while the upper floors, containing apartments, were to be sold to help finance the business. Marcel Fournier was elected president, and Denis Defforey, Louis's son, was chosen as general director. Fournier named the business Carrefour, the French transliteration of the Greek word agora, or marketplace.
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Growth Profile 1959 - The Carrefour supermarket company is set up by the Fournier, Badin and Defforey families who run a discount supermarket in Annecy. 1960 - Carrefour - Carrefour opens its first supermarket in Annecy, Haute-Savoie. 1963 - Carrefour invents a new store concept: the hypermarket. The first Carrefour hypermarket opens in Sainte-Geneviève-des-bo Sainte-Geneviève-des-bois, is, with a floor area of 2,500 sq.m, 12 checkouts and 400 parking spaces. 1969 - Carrefour invents a new store concept: the hypermarket. The first Carrefour hypermarket opens in Sainte-Geneviève-des-bois, Sainte-Geneviève-des-bois, with a floor area of 2,500 sq.m, 12 checkouts and 400 parking spaces. 1970 - Carrefour shares are listed on the Paris stock exchange 1976 - In April 1976, Carrefour Carrefour launched a private label Produits libres (free (free products – libre meaning free in the sense of liberty as opposed to gratis ) line of fifty foodstuffs, including oil, biscuits (crackers and cookies), milk, and pasta, sold in unbranded white packages at substantially lower prices. 1992 - Carrefour creates filière quality systems, which guarantee product origin and traceability.
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2000 - The Carrefour Foundation ( Fondation d'Enterprise Carrefour ) is a philanthropic fund created by Carrefour in 2000 to support social welfare programmes 'linked to [its] core business as a retailer' in countries the company operates and in countries where its suppliers are located. 2011 - In - In May 2011, Carrefour reviewed its situation under conditions of stagnant growth and increasing competition in France from rivals including Casino Guichard-Perrachon SA, and planned to invest "1.5 billion ($2.1 billion) to change the supermarket with the new concept of Carrefour Planet in Western Europe.
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Functioning of the store 1. Product Mix 1. Toys : Some of the products in this category are : i) Majorette - Lamborghini 5pcs Set Giftpack ii) LEGO L EGO 60137 "Tow "Tow Truck Trouble" Trouble" Building Bui lding Toy 2. Home and Festive Decor : Some of the products in this category are : i) Christmas Gift Parcel 5Cm Gold ii) Pinecone With Glitter 5Cm Gold 3. Smartphones , Tablets : Some of the products in this category are : i) Apple iPhone 8 256GB Silver ii) Apple iPad Pro 512GB WiFi+Cellular 10.5" Space Grey
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4. Groceries : Some of the products in this category are : i) Milco Natural Yoghurt Full Cream 400g ii) Golden Loaf Milk Buns 220g 5. Home Appliances : Some of the products in this category are : i) Miele Washer Wkg120 8Kg ii) Samsung Microwave Me6194St
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6. Health & Beauty : Some of the products in this category are : i) Philips Hair Dryer Hps910 ii) Head Treadmill W/ Auto Incline 2Hp 7. Outdoor Living : Some of the products in this category are : i) Trampoline 8Feet With Ladder ii) Intex Prism Frame Round Pool (305x76cm)
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2. Price Mix The following are the prices of the above mentioned product categories : 1. Toys
2. Home and Festive Decor :
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3. Smartphones , Tablets :
4. Groceries :
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5. Home Appliances :
6. Health & Beauty :
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7. Outdoor Living :
Pricing method used Carrefour generally follows ‘ Everyday low pricing ’ strategy, which means that the prices of the products are set according to everyday demand and supply. They use this strategy for perishable goods , and the prices differ even on the basis of early hours of market and late hour of market . However, the major portion of the revenue comes from the sale of Carrefour’s own brand products which are priced as per the demand , which is the ‘ Demand oriented oriented pricing ‘ strategy . 17
3. Place Mix Branches Location
Dubai
Abu Dhabi
Al Shindagha
Abu Dhabi Marina Mall
Arena Mall Dubai Sports City
Airport Road Abu Dhabi
Century Mall, Al Mamzar
Bawabat Al Sharq Mall, Baniyas
Deira City Center
Dalma Mall
Dubai Investments Park (DIP)
Deerfields Town Square
Mall of the Emirates (MOE)
Ajman
Madina Mall
Ajman City Centre
Mirdiff City Center
Al Ain
Umm Suqeim, Al Wasl Road
Al Jimi Center (Mall)
Fujairah
Bawadi Mall Al Ain
Fujairah City Center
Boutik Al Ain
Ras Al Khaimah 18
Manar Mall
Sharjah
Sharjah City Center
Suppliers There are a large number of suppliers for Carrefour , many are small wholesalers , and others are directly from manufacturers like: - Global Food Industries LLC - Arab & India Spices LLC - McCain International Inc Carrefour has more than 12,000 stores operating in more than 30 countries in Europe, America, Asia and Africa. Carrefour has ensured its presence in 19 integrated countries and has franchised stores in 20 other countries. The group, in addition to the traditional format has developed a wide range formats to cater to all kinds of shopping pattern, be it daily purchases, purchases, weekly hypermarket visits or bulk buys by business customers. Buying through electronic auctions is an unavoidable standard of the Group which allows to a quick, transparent transparent and fair decision.This type of negotiation is used since 2000 (1000 users in 18 countries), with proven value added such as transparency in negotiation and formalization of buying processes. Suppliers are selected and invited by Carrefour in accordance with our usual selection rules (quality, ethic, SME protection). The RFQ (Request For Quotation) allows the evaluation of the market trend and the cycle of price qualification to select suppliers who will participate to the auction. 19
4. Promotion Mix Advertising Since Carrefour is a large international organization , it has a lot of financial resources . The main point of advertising is to inform and convince customers about products in a very attractive way . Unlike other local retail stores , Carrefour indulges in a more aggressive advertising strategy , they use both internal and external medias of advertising . Carrefour Carrefour uses ‘ Through-The-Line Through-The-Line Promotion ‘ . Internal medias used are newspapers and magazines , and the external medias used are mobile advertising , billboards , posters . Sales Promotions Types of sales promotion offered are: - Free offers - Extra fill packs - Discounts - Coupons - Sale Personal Selling There is very little personal selling used by Carrefour , the concept of ‘ free service ‘ is used , where customers choose whichever products they feel like , and are not pursuaded by the store employees to buy certain products . Store employees provide information to customers if they need to know more information other than what is already mentioned .
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Major Competitors 1. Lulu Hypermarket The UAE economy has shown such robust growth that the hypermarket has opened its 88th Hypermarket in Baniyas. At present, the retail sector in UAE is seeing aggressive expansion efforts by the market leaders like EMKE Group. The hypermarket sells groceries, food, drinks and domestic products. They also have a wide range of brands like the IKON products which encompasses hi-tech gadgets and home appliances. Another brand is the Lulu products which are comprised of food and non-food products that have been manufactured by international companies. 2. Spinneys As of 2011, the Spinneys Group Limited is is a premium supermarket retailer retailer in the Middle East, and operates hypermarkets and supermarkets . They provide a very similar offering to Carrefour , and have begun an aggressive expansion expansion strategy similar to that of Lulu . Therefore , Carrefour should always keep a keen eye on its competitors , otherwise they will loose their market share to the competition . By analyzing the competitors actions , they can adjust the sales and marketing strategy accordingly .
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Case Study Business Challenge 1: A recent problem faced by Carrefour is the introduction of tax on carbonated and ener energy gy drinks , which has led to a rise in their prices . Carrefour wanted to find a solution to the problem and solve it so that there wont be any decrease in sales or profits . Solution: Carrefour solved this problem by promoting healthier drinks like fruit juices on which there is no tax so that customers continue buying products in place of unhealthy drinks . Business Challenge 2: To maintain its leadership in the increasingly competitive retail grocery industry, Carrefour sought to gain more control over its marketing processes and more effectively leverage its business intelligence— with the ultimate aim of strengthening customer loyalty. Solution: Carrefour teamed with IBM and its partners to put in place a groundbreaking in-store promotion system across its supermarket and hypermarket stores—operated entirely by Carrefour—that enables the planning and execution of more targeted campaigns, with more rapid feedback as to their effectiveness. 22
SWOT Analysis Strengths
- The largest hypermarket hypermarket in terms of its size. - Currently, the retail store is the third in the world in terms of profit after Tesco and Wal-Mart. This -
gives them the resources for expansion and shows they have a good market share. Its joint venture in different countries has given it experience in international expansion and has increased its market share. It has a network of grocery, discount and convenient cash and carry stores and supermarkets and hypermarkets. It has a wide range of products, services and has several brands. It operates in 31 countries of the world and has the strongest brand in the retail sector.
Weaknesses
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It has a very weak position in the Middle East and the Asian markets. It has high operating expenses. It has poor labour relations with the employees and unions. It has spent too many resources in the expansion efforts. Their own brands have a weak market segment. They have a poor e-commerce strategy.
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Opportunities
- The many joint ventures and acquisitions which the company has engaged in provide room for -
expansion and diversification. They have been able to develop their discount stores effectively. They also have been able to reduce their operating costs in the recent years. They are in the process of improving their labour relations. They are making use of research and development in marketing.
Threats
- Stiff competition from other retailers like EMKE and Spinneys - They are being threatened by the low prices that local groceries offer - They are facing the challenges of operating in the Asian and Middle East markets that have become too dynamic for the company.
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Conclusion By doing this project , I learned about the Carrefour brand and chain of retail stores in a very detailed way . I learnt that though they are very successful , they still face a lot of problems and challenges which must be overcome for them to remain successful . Carrefour is one of the largest retailers in the Middle East and has a lot of scope for success in the future if they keep adjusting to the business environment , and respond to the threats in a better and more efficient way .
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Bibliography -
http://www.fundinguniverse.com/company-histories/carrefour-sa-history/ http://www.carrefour.com/group/presentation-of-the-group http://www.carrefour.com/content/history https://www.carrefouruae.com Class 12 Marketing handout https://www.mbaskool.com/marketing-mix/services/16808-carrefour.html http://www.carrefour.net/en/articles.html?t=47 https://en.wikipedia.org/wiki/Spinneys
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