Professional Documents
Culture Documents
Sahil Juneja
Gaurav Sengupta
Carrefour
Carrefour S.A. (Euronext: CA) is a French international hypermarket chain. Headquartered
in Levallois-Perret, France, Carrefour is the largest hypermarket chain in the world in terms of
size, the second largest retail group in the world in terms of revenue and third largest
China, Colombia and in the Dominican Republic, but also has shops in North Africa and other
Recognized as one of the most active shopping concept developers throughout the region, the
Group first introduced the hypermarket model to the Middle East in 1995. Majid Al Futtaim
Retail manages Majid Al Futtaim Hypermarkets, a joint venture company with the world’s
second largest retailer Carrefour, and offers shoppers the same quality, variety and value-for-
money that have made the brand a household name to millions over the world.
Lulu
Lulu Hypermarket is a retail venture started by EMKE Group, based in Abu Dhabi. Lulu
Hypermarket has outlets in countries like UAE, Kuwait, Oman, Bahrain, Yemen, Qatar. Shri
M.A Yusuffali is the Managing Director of EMKE Group. Lulu Hypermarket has over 20,000
Arabia and India.
SWOT Analysis
Carrefour
Strengths Weaknesses
Clear Market Leader Focused too much on price rather than product
differentiation
High Quality Lack of traditional products
Diversified client base
Effective marketing and sales promotions.
Opportunities Threats
Development of additional Products and Increasing competition from stores like Lulu,
sevices. Geant.
Could open a few more stores in newly Limited market size hinders further growth.
developed areas.
Lulu
Strengths Weaknesses
A loyal Asian customer base. Lack of diversified customer base.
Offers traditional products Not very competitive pricing.
People associate with low quality.
Consider it an Indian market.
Less Variety.
Less marketing and promotions.
Opportunities Threats
Could offer more variety of products. Competition from big players like Carrefour.
Could try and increase its customer base.
Can really bank and grow on its niche market.
Market Dominance
Carrefour is the market leader and Lulu can be termed as a challenger. It is also a nicher as it
Growth Strategies
Both Carrefour and Lulu from being retailers they have also started producing their own products
and selling them. Carrefour with its own Carrefour brand and Lulu with its Ikon and Lulu
products.
Positioning
Carrefour
Low prices and much more. That is the tag line for Carrefour and how it wants to position itself
in the minds of the consumers. We believe that Carrefour has been successful in this as in our
survey 60% of the people said that they associated Carrefour with lower prices and that is the
best thing about them. The much more part is also covered as most people associate Carrefour
70 70
70
60
50
50
Large Variety
40
High Quality
Low Prices
30
20
10
0
What is the best thing about Carrefour?
Lulu
Where the world comes to shop, that is the tagline of Lulu and that is how they look to position
themselves. However, that is not the case, visiting any Lulu you would see that about 80% of the
people are Asians and of those 90% are Indians or Pakistanis. They are trying to reach Carrefour
Targeting
Lulu and Carrefour both target the same audience which is the lower to middle income groups
Carrefour
Product
Carrefour being a retail sector it sells the products of various brands as well as its own brand,
Carrefour. Moreover, it sells services like after sales service, customer service, etc. They offer
One very important factor for Carrefour is that it has a lot of variety in its products. A lot of
competitors sell the same products but Carrefour’s variety and quality are hard to match. For
1. A bakery
4. 22 varieties of cheese.
When asked we asked the people one of the best things about Carrefour, 70% said it was
the variety of products and 50% said it was the high quality.
80
70
70
60
50
50
40 Large Variety
High Quality
30
20
10
0
What is the best thing about Carrefour?
Price
Carrefour offers lower and competitive prices than a large number of its competitors. Most of its
promotional activities have the price aspect linked to it. For example, all its advertisements
specifically highlight its low price factor. The current promotion (21.12.2010) going on is also
Store Placement
Number of stores: 5
Locations:-
1. Al Shindagha Store
4. Mall of Emirates
All of the Carrefour stores are located in either malls or near big markets. This is done by
Carrefour to tap into the strong mall culture prevalent in Dubai. It helps them increase their
impulse buy sales as many people frequently visit malls for other reasons and end up shopping
from Carrefour. It also helps them to cater to all sections of the society as people from all income
groups come to malls in Dubai. As Carrefour keeps products for everyone, the multicultural
crowd pull at a mall further improves its sales. Thus, the store placement of Carrefour has been
Another important factor is the connectivity. Carrefour being in all the major malls, these malls
are well connected both by the Dubai metros and have 24 hour cab stands within the mall
grounds.
Product Placement
The first section you see when you enter any Carrefour is the electronics section. This is
probably a good strategy of Carrefour because most shoppers in Dubai (mostly the tourists) are
looking for electronics which are considered to be cheaper here. So, when they enter the store
they do not have to look for the section as it is right in the front and clearly visible from the
entrance. Other sections of Carrefour are also nicely marked and with easy to shop in. The
shelves are big and products related to each other are kept close by. For example, the entire foods
section is one side, entire section for utensils and related products on the other.
When we asked people to rate the quality easy to shop in; these were the results.
Easy to shop in
10
8
40
Excellent
Very Good
Good
Fair
Poor
22
20
Promotion
Print: Carrefour regularly gives advertisements in the various newspapers like Gulf news or the
Khaleej times. Most of its ads are big and easily noticeable. In addition, it gives a small
advertisement in the top right corner of the newspaper. It also gives brochures along with the
1. Low prices.
2. The name of the sale promotion like “fabulous festive food at very tempting prices”.
5. A small picture of the product along with the price and description.
In-Store Advertisements: The promotional ads are clearly visible with a yellow background
and prices written in big bold black or red letters. Each label also carries a description of the
product. The labels are placed directly on the products or at the starting of each the rows or
hanging from the ceiling. Each row has some promotion related to the products in it.
Yes
No
70
When asked to rate the sales and promotion, the results are as follows
Sales and Promotion
10 20
10
Excellent
Very Good
Good
Fair
Poor
24
36
Lulu
Product
Lulu carries all the products that any other retail store carries but it has one major difference. Its
products are targeted at the Indian/Asian population in Dubai and that is its major point of
differentiation. It has separate sections for Indian ethnic wear, electronics and home appliances
It also has Indian aluminum utensils in all shapes and sizes. Separate Indian Snacks and food
When asked we asked the people one of the best things about Lulu, 70% said it was the fact
60
50
Indian Products
40
30
20
10
0
What is the best thing about Lulu?
Price
Lulu prices its products competitively. However, when people were asked to rate its ‘low prices’,
Excellent
Very Good
Good
Fair
Poor
14
50
Promotion
Radio: It regularly gives radio advertisements for promoting its store offers and products. It also
promotes the fact that it provides low prices and high quality.
In-Store Brochures:-
They have also promotions like scratch cards, deal of the day and seasonal promotions like the
can earn redeemable points every time you buy something from Lulu and also get discounts and
offers.
The ad recall of Lulu is not good as the add recall came to about only 40%.
40
Yes
No
60
Place
Store Placement
Number of stores: 6
Locations:-
All of Lulu’s stores are stand alone stores unlike carrefour’s. They do have six stores but three of
those are in the same area, Karama. This seriously flaws their placement as they could have
easily utilized the other two stores at a different location and clubbed all Karama locations into
one. Most people would just go to their hypermarket as it has more options.
Moreover, of the six Lulu’s only three are hypermarkets. The rest are small local centers or
stores. Lulu tries to mimic Wal-Mart’s culture of huge stand alone warehouse kind of stores
Another factor is connectivity. All lulu stores are low in connectivity both by cabs and metros. It
is not very easy to find a cab or get a metro while on your way back from Lulu.
Product Placement
When you enter a lulu store you see nothing distinct as you enter. There is no particular section
that you see. You see a huge line of rows where you can start shopping. Another thing to note is
that Lulu always keeps separate areas instead of sections. For example, Lulu Al Barsha has
ground floor general groceries, food items, etc and second floor for electronics, furniture,
clothes, etc. Lulu at Karama has three different Lulu stores next to each other and all three carry
different products.
3. Lulu shopping has optics, watches, jewelry, a large assortment of electronics, coolers,
Lulu too has clearly marked rows and is easy to shop in.
When we asked people to rate the quality easy to shop in; these were the results.
Easy to shop in
10 20
6
Excellent
Very Good
Good
Fair
Poor
24
40
Lulu
1. Lulu has a lot of weaknesses (refer to SWOT) it has to take care of. People perceive it as
an “Indian” low quality moderately priced store. Therefore, the positioning done by Lulu
has not been very effective. It has to change its positioning so that people perceive it as a
high quality and low price store as Carrefour.
2. Lulu does not have a lot of variety in its products as compared to the huge variety of
Carrefour. Therefore, it should bring more variety to its products by adding more brands
to itself. It can also add more sections or increase the size of its sections. For example,
Lulu lacks a sushi bar and an Arabic sweets bar which Carrefour has.
3. Carrefour clearly wins in the price’s section. Lulu should focus on lowering its prices so
4. Lulu could take a note from Carrefour about product placement as product placement of
Carrefour is much superior. They utilize their entry to display products which are the
most popular in Dubai (electronics) and which have the highest discounts. Lulu does not
utilize its entrance efficiently. Moreover, Carrefour has everything on one floor while
Lulu has separate floors or shops or building for it. This should be improved as people
5. Lulu should also advertise more vigorously as they have a very poor ad recall of just
40%. Moreover, they are almost non-existent in the most common media i.e. the print.
They should advertise more in the newspapers and could even give away some
redeemable coupons in the newspapers so that the people are attracted to the stores.
6. Lulu should develop its presence on the internet and try and compete with Carrefour’s
webstore which offers online buying and viewing of all items available in Carrefour.
Carrefour
7. Carrefour should focus on other aspects of its store also than just the price. It is the
market leader and can maintain it if it reminds people from time to time that it not only
8. Carrefour on the other hand should consider tapping into the Indian market as it has large
customer base which it can attract. For example, Lulu has a separate freshly prepared
On the Internet
Carrefour
Carrefour has a very clear and informative site regarding its products and promotions, which is
updated regularly. The site categorises the various products of carrefour into different sections,
namely:-
2. Computers and IT
3. Consoles Gaming
4. Photo Video
5. TV & Audio
7. Home Households
The site has eight sections which further has different subsections so that the customer finds
exactely the products he is searching for. When you choose a sub-section, you also get more
filtering options. For example, if you select PDA mobiles from Comm. & Telephones, you get
1. Price
2. Brand
3. Attributes
Moreover. the page shows relevant promotions to the catergory you are in. For example, in PDA
mobiles you will see promotions for PDA phones. You can also read about the products and
order them online. You can also see the shipping time and the available stock.
Therefore, carrefour covers all the 4 P’s on its website. They have all their products listed, you
can easily see the price of all the products and compare them to other stores. The products are
placed in the most accessible place to potential buyers, the internet. Their promotion is good
where you see what is relevant to you and what is new. The home page shows what products are
Lulu’s site is not as informative as carrefour’s. It has a separate section for its own brands and a
promotions tab but all of its products are not listed on the website. The promotions page just
shows the a catalog with all the products which takes a long time to load and not very appealing.
Even when you go to its own brands microsite you can only see the product with limited product
information and no price or delivery information. In fact, Lulu does not support online buying.
The 4 P’s of marketing are not clearly visible from their website. The website does not inform
about all their products, the prices are not mentioned, promotions are there but they do not
instantly catch your eye and placement on the internet is good but it needs a lot of improvements
links available.
Price Prices are clearly mebtioned. Prices are not mentioned at all.
Place Internet- website Internet- website
Promotion Promotions relevant with what All promotions in a separate
appealing.