1. Background of the Carrefour.

A hypermarket or multi ± department store is a superstore which combines a supermarket and a department store. The result is a very large retail facility which carries an enormous range of products under one roof, including full lines of groceries and general merchandise. When they are planned, constructed, and executed correctly, a consumer can ideally satisfy all of his or her routine weekly shopping needs in one trip. The example of hypermarket have been set up in Malaysia is Carrefour, Tesco, Jusco, and Giant (foreign hypermarkets) besides other local hypermarket such as Mydin. Following are background of the Carrefour 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 in the world. The group was created by Marcel Fournier and Denis Defforey and grew 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 the United States led by "The Pope of modern distribution" Bernardo Trujillo, who influenced 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 in France. 1976 Carrefour introduces ³produits libres´ which are unbranded product but ³just as good, and cheaper´. In 1992, Carrefour creates filiere quality systems, which quarantee product origin and traceability. Carrefour opened their first hypermarket 1994 in Malaysia.

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In Malaysia, Carrefour is a leading hypermarket chain selling a wide range of household grocery products ranging from frozen goods and fresh products to textiles, garments and shoes, as well as electrical goods such as home kitchen items and audio - visual appliances. Carrefour is widely recognised as a convenient one - stop shopping centre that caters to a mix of consumers from housewives to students and working professionals. MYDIN and its first store were introduced by Tuan Mydin Mohamed in 1956. The first store started by selling toys from Thailand in Kota Bharu, Kelantan. The second branch in Kuala Terengganu in 1979 saw Encik Murad Ali, the eldest son of Tuan Mydin in charge. In less than 10 years, the third of MYDIN branch which marked MYDIN¶s rooted presence in the Klang Valley was opened at Jalan Masjid India by Dato¶ Ameer Ali. MYDIN was incorporated on 23 July 1991 under the Companies Act 1965, as a private limited company under the name of Melati Makmur Sdn Bhd. The reason to incorporating the business was to take over the business of Syarikat Mydin

Mohamed, which was a sole proprietorship, founded in 1957 by Encik Mydin
Mohamed and Syarikat Mydin Mohamed Brothers, a partnership formed between Encik Mydin, Rowshan Bhai a/p Kassim Bhai, Murad Ali bin Mydin Mohamed, Dato¶ Ameer Ali bin Mydin, Ahimmat bin Mydin Mohamed and Salim bin Mydin Mohamed. The Company, on 17 January 1992, had changed its name to Mydin Mohamed & Sons Sdn. Bhd. Subsequently on 25 June 2001, the company became Mydin Mohamed Holdings Sdn Bhd and is presently known as Mydin Mohamed Holdings Bhd.

From then on MYDIN has grown steadily and at a commendable pace. With its vision, to be the leading Malaysian Wholesale Hypermarket in Malaysia, it is now known as MYDIN MOHAMED HOLDINGS BERHAD. From establishing its headquarters in 1991 in

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WISMA MYDIN at Jalan Masjid India, its Board of Directors have worked towards the company¶s vision and mission which in 47 outlets nationwide inclusive of 3 Hypermarkets, 19 Emporiums, 2 Superstore (Bazaar), 14 Mini Markets (MYMydin), 4 Convenient Stores (MyMart) , and 5 Mydin Mart which is part of its franchise program.

With the continuous belief that hard work, teamwork as well as strong customer relationship are the fundamentals to a successful business, this is what led to the opening of MYDIN WHOLESALE HYPERMARKET in USJ 1, Subang Jaya on 19 August 2006. Far from resting its laurels, MYDIN is still forging ties with the guide of its vision and the next MYDIN wholesale hypermarket is already at the finishing stages.

Carrefour vision of the world at the dawn of the 21st century 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 such risk, and in order to improve prospects for future generations, it is crucial to follow the path of sustainability, which combines economic profitability, respect for the environment and both social and ethical development. Vision of Carrefour in Malaysia ³The´ hypermarket for Malaysia, with a strong sense of belonging and ownership thus upholding a unique identity led by price & service.´ Mission Carrefour are totally focused on meeting the expectations of their customers. Carrefour mission is to be the benchmark in modern retailing in each

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Develop this freedom by 4 . and cooperation to improve products through long . as a socially responsible economic actor and good corporate citizen. Public. purchasing power and constantly improving techniques.format retailer. Their suppliers: markets. by offering : Their customers: the best prices and the best merchandise. customer intelligence. Objectives  Improve customer satisfaction  Improve profitability  Significant reduction in excess inventory Carrefour core values Carrefour core values are the heritage of all the people and companies that have built the Group. Their staff: the possibility of growth and fulfillment in a trusting environment.term. in every banner and every country. Their shareholders: a sustained return on their investment and the growth prospects of a global. ‡ Freedom: Respect the customers¶ freedom of choice through a variety of store formats and a diversity of products and brands. Their partners. mutually beneficial relationships. marketing and sales expertise.of their markets. multi . franchisees or affiliates: leading banners and brands. with interesting jobs and motivational compensation. local and national authorities: a deep commitment to the community.

‡ Integrity: Stand by their commitments and act honestly towards customers.50 euros divided into 716. Listen to them and accept their differences.427. ‡ Solidarity: Contribute to the development of the local economy. ‡ Responsibility: Fully assume the consequences of their actions on customers. which is shared among customers. Carrefour shareholders Carrefour is a public limited company with a share capital of 1. Implement a policy of fair trade by developing value sharing. staff and suppliers.providing thorough.000 shareholders. Provide the largest number of people with the opportunity to purchase consumer goods. job creation. suppliers and customers. Embrace change in a pioneering spirit and encourage innovation. staff. function or banner. partners and suppliers. both as individuals and as a group. Give consumers the freedom to buy at prices consistent with their purchasing power.790. cities and neighbourhoods where they operate. Carrefour¶s employees own 2. objective information. ‡ Sharing: Leverage their expertise and strengths to create value. Empower all staff to take initiative.98% of the Group¶s share capital. countries. Act with integrity. their company and staff. cultures and individual interests in all countries and regions where we do business. training and the fight against social exclusion in the communities. ‡ Respect: Respect their staff. Their attention to social and environmental performance preserves their share 5 .771 shares and with some 460. Express professional solidarity within the Group regardless of their personal skills. customs.354. Understand and respect the lifestyles.141. towns. ‡ Progress: Support progress and the development of new technologies to serve the needs of people. institutions and the environment. shareholders.

it recommends strategic directions and guidelines and organises their deployment. Carrefour decided in 1985 to replace its "produits libres". authenticity. Carrefour products Besides.food products under its own brand names. Its membership reflects the way the Group is structured per geographic area with cross . Ethical. reports directly to the CEO and advises the Executive Committee on sustainability issues. social or environmental issues are dealt with by Carrefour¶s key decision ± making bodies : The Board of Directors is Carrefour¶s main governing body. taste. which manages the sustainable development programme.price and attracts new investors sensitive to social and environmental issues. The Executive Committee is the ³backbone´ of Carrefour¶s management structure.000 non . grocery and frozen food aisles.000 products that meet very strict specifications with regard to their price / quality ratio. traceability and innovation. All products in the Carrefour organic line are inspected and certified by the independent certification organization ECOCERT. which is produced for the most part by small . The Quality & Sustainable Development department.and medium . Carrefour also sells 5. food safety. Carrefour strives to guarantee to its shareholders the transparency of its corporate governance. an Audit Committee and a Wages and Salaries Committee. Carrefour's organic line now offers 130 products in its fresh food. With its customers needs in mind. Outside laboratories conduct quality audits of our non-food products at various stages in their production to make sure they meet our specifications. generic product line created in 1976. with an own brand line.sector support functions. Under the impetus of its chairman. Today. and must meet organic farming specifications (no chemical fertilizers. It comprises 11 members of whom 3 are independent directors. no synthetic pesticides).sized businesses and manufacturers. Everyone who works with Carrefour to produce its organic line makes 6 . and is assisted by a Strategic Steering Committee. Carrefour sells over 2.

in some countries. its stores have further moved its market and towards the discount end through a policy of low prices largescale promotions. They also mindful of their contribution to the labour market. Following are Carrefour branches surrounding world: 7 . Carrefour market positioning Carrefour positioning does business. the group¶s 40th Anniversary offered a worldwide opportunity to display the competitive nature of the product range. Wherever they do business. In the first half. Other international promotions such as the ones in countries involved in the World Football Cup. The price positioning was supported by many promotional campaigns. This success stems from their ability to adapt their strategy to fit local markets and to make globalisation an Opportunity for progress. like Argentina. they strive to raise local standards in terms of quality.a long . up to and including inspections of the finished product. Carrefour is the largest private sector employer. service. working conditions and preserving the environment. Carrefour has also been present in the Americas since 1975 and in Asia since 1989. helped to boost the stores¶ financial performance. The banners concerned by the conversion to the euro locked in their prices through May 2002 and maintened a freeze on own brands over the whole year. Carrefour branches With operations in 30 countries. Regular inspections are conducted at every stage of the manufacturing process. Carrefour won back market share in Brazil by conducting three short promotional campaigns a week.term commitment to adhere to demanding production control and product tracking specifications. It is the number one retailer in Europe. Carrefour is the world¶s second largest retail group. In the second half.

Americas Country Argentina Brazil Colombia Dominican Republic Asia Country China Indonesia Japan Jordan Kuwait Malaysia Oman Qatar Saudi Arabia Singapore Taiwan Thailand United Arab Emirates Africa Country Algeria Egypt Tunisia First store Hypermarkets Supermarkets Hard Discounters 2005 2002 2001 1 5 1 2 First store Hypermarkets Supermarkets Hard Discounters 1995 1998 2000 2007 2007 1994 2000 2000 2004 1997 1989 1996 1995 122 37 7 1 1 12 2 3 5 2 48 25 11 275 First Hard Convenience Hypermarkets Supermarkets store Discounters Stores 1982 1975 1998 2000 59 150 46 1 103 38 395 300 5 Cash & Carry 34 - Europe Country First Hard Convenience Hypermarkets Supermarkets store Discounters Stores Cash & Carry 8 .

245 216 1.Belgium France Greece Italy Poland 2000 1960 1991 1993 1997 56 218 28 59 72 11 161 19 280 1. It is the 'relative competitive comparison' their product occupies in a given market as perceived by the target market.021 210 485 277 21 87 99 897 397 471 2. or organization. Below type of market positioning strategy used by retail industry .912 519 257 3. 9 . Market Positioning Strategy.015 5 3 - 134 20 - Portugal 1992 Romania 2001 Spain Turkey 1973 1993 ii. Market positioning strategies used by Carrefour 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. Market positioning strategy used by all retail industry such as foreign hypermarket. brand.

Carrefour developed a strong image through the use of slogans and symbols. Carrefour used to differentiate products that are offered based on following aspects : The product itself Services offered Company staff or personnel Distribution channel used Company image y y y y y A competitive advantage can be gained through hypermarket. Besides. pushing out the local retailers. Although Carrefour has been successful had many local department stores and small l. brand such as Carrefour establish a strong global brand. there were large . The bases used in Carrefour hypermarket are : Quality 10 .scale supermarkets. established a clear store image that is associated with high quality. in terms of sales. Carrefour has not been successful in Malaysia. For example. brand and store image. Likewise.scale chain stores or large ± scale discount shops selling electrical household appliances or clothing.In Malaysia. the 'Lebih Jimat Lebih Hemat ' slogan have enhanced the image of this hypermarket. Carrefour became a top four retailer. Based on products differentiation Product offered by Carrefour is a basis to differentiate other hypermarket product. in have worked hard to Carrefour have Malaysia . Without differentiation. For example.

In 2004. along with the training of auditors in several countries also Malaysia. In addition. A product must demonstrate the required quality level before it can be approved for purchase. traceability and compliance with specifications. Carrefour endeavours to verify progress in product development . which are audited health and safety conditions. The value for money must be the best. processing and archiving any con-compliant products and following up of customers claims. Guaranteeing food products safety and quality The best possible value for money is offered at every price level (first price products/ own brand and banner brand products). For own brand and banner brand products. the quality process includes signing a set of specifications.Quality is one of Carrefour main source of competitive differentiation and is part of the fundamental policies defining the implementation of the Carrefour¶s strategy. To complete this system. These audits are followed by action plans 11 . Controlled products whether banner brands or own brands. Suppliers are audited with respect to health and safety conditions. An approach shared with our suppliers To guarantee the quality of its food products and its own brand and banner brand products. which enable all the Carrefour to track products at every stage of their marketing and to react more efficiently in case of a crisis. risk control.. Carrefour has deployed in 2005 a Quality Scorecard available on the intranet site. offer exemplary quality and safety. approving production sites and product control plan. its service providers or certification agencies. Carrefour systematically conducts audits on its suppliers¶ production sites. It always corresponds to what the customer explicitly or implicitly wants and must be clearly perceived as such. Suppliers¶ production sites are audited by Carrefour. specific criteria for environmental factors were set up.

food products. Drawing on synergies and purchasing volumes at the Carrefour. Carrefour has decided to apply the same position for No1 products as for own brand and banner brand products by excluding genetically modified organisms from the composition of all products.brand products and retail brand products among consumers. retail banner and first price products. No1 products also reflects the quality and safety approach that characterizes all their own brand and banner brand products.discount prices. the Carrefour shares with its suppliers the points of satisfaction or of improvement reported by the claims. thanks to analysis made by its customers services. Moreover. In addition to meeting existing legal requirements. were adopted. regional. The Carrefour¶s own brand. health 12 .arranged with suppliers to improve the production process. Providing their customers with freedom of choice Carrefour is committed to offering its customers broad freedom of choice by structuring its product mix to include major national brands. referring to usage. safety. Quality information on non .brand. own .food products labels To promote the quality of its own . these products are intended to offer consumers quality products at a price that is 5% to 7% below hard . symbolized by four icons. Four criteria. Quality at the best price: first price products First price ³No1´ products launched in Malaysia. retail banner and first price products give the customers a selection of non ± GMO and organic products as well as the opportunity to choose quality at price that suit every pocketbook. Carrefour hypermarkets decided to optimize the quality of information on the packaging of its Carrefour brand non .

sugar. This is signed with the commitment logo of Carrefour. toys and scents. establishing procedures. Ensure in store safety and quality The proper upkeep of stores and the respect for the cold chain and food safety are key elements of the Carrefour¶s policy in Malaysia . paper goods. This ³nutrition box´ has been deployed in several countries and in Malaysia. sporting goods and food containers. The Carrefour¶s Commercial Department has worked with the CLCV to develop a more accessible and helpful presentation of nutritional information. This approach will be extended to include children¶s products. backpacks. This involves training. and systematic hygiene and quality audits in stores and warehouses.and the environment or social conditions of production. in early 2005. carbohydrates protein. The packaging has now a ³nutrition box´ indicating the share of daily needs for six main nutrients ( fats. Carrefour has already used this method on paints. fibre and salt) provided by the products. The packaging points out the most striking criterion for each product by explaining in one or two sentences the product¶s added . Carrefour has optimized the labelling of its Carrefour brand products. Thus the Carrefour mobilizes all its employees to ensure respect for health and safety rules.value. which provides Consumer services with evidences of its procedures. Improve nutritional information on food products labels Facing with a disturbing rise in food-related problems and to help customers to combine food products better for a more balanced diet. Brands 13 .

The brand guarantees for each product the values of the Carrefour.added features that enhances the quality of life. Besides. In 2002. The quality and safety of products sold in Carrefour stores is one of the Carrefour¶s priorities. Based On Staff Or Personnel Differentiation 14 . The brand has a crucial role in the economic model and the relationship with the customer. recognised for its quality. Carrefour own label is ready to play the role of a true brand. a data processing tool that can predict and manage risks by monitoring controlled products throughout preparation. Carrefour set up a ³Safety Observatory´ for its own store brand products. value . All product categories are represented by the Carrefour Brand. Carrefour making the brand work harder because Carrefour want:    Increase CUSTOMER Awareness Increase EMPLOYEE Pride Increase SHAREHOLDER Returns Carrefour have only begun to capitalize on the strengths of the brand because making the brand work harder will help Carrefour grow sales and profits in Malaysia. Carrefour works closely with its suppliers to ensure the traceability and their bacteriological quality of products as well as the implementation of the precautionary approach and a rapid recall procedure. notably for their store brand food products and retailer brands. they boast of innovative. from daily necessities such as cheese and pasta. (not simply a copy or an alternative price point). Carrefour also developed a Quality Management Chart. For these items. to cosmetics and clothing. and its accessibility to the customer. after the initiatives launched in 2005. Carrefour understand Customer knowledge that Single brand to serve all customer needs and even further the performance of their growth markets.Carrefour brands are comparable in quality of perhaps better ± known market leaders. its commitments.

so it is in turn easier for managers to implement the programs with the employees. Over 8. over 90% of the employees work in contact with customers. to adjust its management style and to draft action plans that factor in employees¶ recommendations and comments.The Carrefour has had successful financial results. Participating in the strategic plan A number of teams participated directly in the preparation of the strategic plan through participating. general staff benefits include such as y y y y Contractual Bonus Service Awards Programme Out Patient Treatment Benefits Group Personal Accident Plan 15 . the strategy is probably more appropriate this way. In task forces that brought together people from all store formats and all geographical areas. tools for cashiers include such indicators as turnover and absenteeism. depending on the employee¶s position to assess the employee¶s performance. This is a reward for all employees. Listening to Employees tool Since 2000. Moreover. as all of them play a role in this result. has gained market share. It enables the Group to have a fair overview of labour relations. The Carrefour has developed various tools. That means that customer happiness is closely linked to the employees¶ performance. In fact. For instance. Being linked to the global strategy is a great motivation for store managers. Besides. used it to express their point of view. and makes customer happy. both managers and employees.000 persons. hypermarkets have systematized listening to employees to assess their satisfaction.

Chinese New Year. Safety commitment on Drug Perfume and Hygiene products (DPH) All suppliers are required to abide by Carrefour¶s policy on cleaning. Deepavali) At Carrefour. Personnel Differentiation The Carrefour Group has formalized its progressive approach based on three key commitments: quality and safety. No cosmetic product has been tested on animals by Carrefour¶s purchasing office or on its behalf for 10 years. Carrefour strive to make a difference in the lives of the community from the urban to the rural and they are driven by the belief that all life is special and deserves attention. This conviction that begins with us as an individual and through this inward conviction. detergent and cosmetic products. Carrefour will make a difference in the lives of people around Malaysia. Products 16 . respect for the environment and economic and social responsibility.y y Group Health Plan (Cover includes immediate family members) Structured Skills Caree) Career & Development (Programmes Structured Skills Additional benefits for Non-Executives include allowances for: y y y y y Transportation Attendance Punctuality Cashier ( cashier only ) Festive incentive ( ie: Hari Raya. they constantly strive to be a responsible corporate citizen and undertake various measures to give back to the community and society as a whole. Carrefour believes in operating business with integrity and commitment to quality.

Some of the group¶s banners are taking this approach even further. This applies to both the food and non ± food areas in hypermarkets. Carrefour made significant capital expenditures in 2002 to reconfigure its stores to make them more attractive and improve customer service. the Carrefour has also been strengthening its loyalty programs around this country to ensure that they reflect the latest consumer and social trends. the Carrefour has expanded customer choice. Over the years. Safety commitment on textiles and clothing for babies and children In 2003. Based On services Differentiation The Carrefour puts its customers at the heart of everything it does. giving more independence to store managers to enable them to adapt their business as closely as possible to the needs of their catchment area. Carrefour has added numerous practical and accessible services to its offering. The Carrefour has thus become a competitive player and the benchmark in several areas of activity outside of its core business line. To this end. At 17 . adapted its store brand ranges and increased its service offering.000 textile products involving over 200. For some years now. more than 5. it has simplified its organization.000 substances were tested by independent agencies. with the support of an additional team of recognized external experts.and their formulas are rigorously scrutinized by a team of six internal specialists. This safety requirement has been boosted by regular monitoring conducted with the help of specialists. Alongside this. Carrefour has developed specifications to improve the safety of clothing and textile products intended for children and babies. In two years. Reorganized sales areas and product staging make the best of the Carrefour¶s various areas of expertise. toxicologists and allergists for all textile products. New store concepts have been introduced to respond to evolutions in their customers¶ lifestyles.

Carrefour. 12. Please visit our Easy Payment Scheme counters for more information.  Automated Teller Machines 18 .  Easy Payment Scheme Interest rate at 1% to 1. We have payments schemes for durations of 6. For Maybank & Southern Bank Card Holders only. Replacement Plan Free 1 new replacement for items in 2nd year within the extended warranty period. 24 & 30 months.5% monthly. Services given by Carrefour are :  Extended Warranty Free parts & labour on items repaired within the extended warranty period. 9.  Free Delivery Service Free delivery for selected items within 30km radius of our stores. 15.   Wrapping Service Cutting Service Scalling / Cutting service for meat products upon request  Handicap Friendly Store Facilities Wheelchairs. lifts and parking spaces is available for disabled customers.  Textiles Alteration Service Hemming alteration for Carrefour customers. they welcome customer views and comments which will help them improve their service to customer.  0% Interest Free Terms & Conditions apply. 18.

The Carrefour such as:    Convenience goods (food products. distribution channel and marketing mix. Carrefour success analysis. it is a crucial point for the Carrefour to learn about their customers and to do everything they can to satisfy them. Cash & Carry and wholesale stores sell industrial goods (mostly food) as they 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 existing products in the market. price positioning strategies. apart from the differentiation strategies. Thus Carrefour has defined what builds up a positive experience for the customer.     Food Court Surau / Moslem Prayer Room Baby Changing Rooms Taxi Stand Bus stand iii. Shopping goods and services (household appliances. electronic devices) which are sold by hypermarkets only. gas) which are sold by all formats of retail stores. As in many other businesses. can see that the success factors contribute on its products or services. mostly sells consumer goods and services  19 .

Example: Lucky Bamboo.in Chinese New Year and Christmas table. Chinese New Year. vacuum cleaner.) The product have high consumer demand and a high growth rate. The Carrefour have sufficient funds to build consumer awareness and carry on other promotional activities. with a permanent range supplemented by seasonal ranges. ( Carrefour Gift Vouchers. The product has to be reasonably priced and affordable to the majority of consumer. Digital jar rice cooker and etc. wardrobe. Christmas trees and colourful lights ± in Christmas. honey mandarin and assorted paper card . (Carrefour arrange different product in festival seasons such as Hari Raya. automatic washer.(CG Home theatre system very unique and different from other Home theatre at market). ( all kind of product). The product has sales in needed and wanted by the consumers. 20 . For examples.     Analysis on type of product Carrefour Home Products Products designed to completely furnish a house. with each style of product found in general merchandise. Deepavali and Christmas. cai Shen scoll. and apparel. Differentiation strategies on Carrefour Home Products are based on product differentiation. ( all kind of product). consumer electronics. Carrefour Bonus ) . electronic devices such as Home theatre.

Brand At Carrefour they sales CG brand products. PENSONIC. an opportunity which has so far been lacking 21 . LG. Features CG products have various attractive features such as CG television set with loud stereo sound. Besides Carrefour also sales other product such as TOSHIBA. SHARP. clear picture quality . Quality Carrefour always guarantee that all products they sales are safety and good quality. remote control and a big screen falls into the good quality product category. FABER. ELBA. Durability A product that can last for many years is perceived as a product of good quality. Carrefour Fresh Food Carrefour also offer fresh food to consumers which one given the opportunity to consumer to make many choices. which one mostly unique and different from other brand products at market.Form The product¶s design different from other products. SAMSUNG. Goldsonic and etc. example GC product.

choice also pervades. "Peaches and Nectarines Veria quality way". "Apples agorin quality way". who have committed themselves to strictly follow a quality letter statutes agreement. fresh prawn and etc. fresh fish. Pursuing the unconventional. The aim of the collaboration is to provide consumers with healthy and safe products. from the first production stage until the final positioning on the shelves. freshly harvested cabbage (ones that have not gone through any additional processes). 22 . The products certified with the "Quality Way" sign are quality and safety guaranteed. fresh Australia Beef. Differentiation differentiation. Carrefour will carry those items that other stores shy away from: at Carrefour one can find curved cucumbers. and other items that suffer from no real. Biological bread. Salmon. Besides Carrefour also carry fresh food like fresh chicken. for example. "Fresh Fish tsipoura quality way". discernible defect in quality. Some fresh food in Carrefour certificated as "Quality Way" are : y y y y y y y y y y y y "Halvah quality way". "Pork quality way".in Malaysia Carrefour. "Barrel Feta quality way". "Chicken quality way". In terms of fresh produce. "Free Range Eggs quality way". "Seabass quality way". French beef. strategies on Carrefour Fresh Food are based on product Quality The "Quality Way" products are the result of the collaboration between Carrefour and chosen producers.

general merchandise. which are audited health and safety conditions.). Suppliers are audited with respect to health and safety conditions. apparel developed under the advice of a committee of pediatricians and specialists. toys.. satisfying the tastes of children between 4 and 10 years old through adapted packaging and the use of the mascot: Genius). Feta Tin quality way Based on services differentiation. sugar and salt). Differentiation strategies on differentiation. in order to guarantee the baby¶s development from 0 to 36 months with security and comfort. Carrefour systematically conducts audits on its suppliers¶ production sites. traceability and compliance with specifications. Carrefour also provide customer service such as Cutting Service (Scalling / Cutting service for meat products upon request). apparel. Lady¶s clothes (variety of clothes) and etc. risk control. designed to develop good habits (fight against obesity with less fats. To guarantee the quality of its products and its own brand and banner brand products.y y "Kiwi quality way. as well as developing autonomy. Carrefour Family Goods. 23 . Carrefour also carry family Goods such as Carrefour Baby Goods (Food range. perfumery. Men¶s clothes. Quality Carrefour Family Goods are based on product Carrefour always guarantee that family goods they sales are safety and good quality specially Baby¶s Goods. childcare products. hygiene. Carrefour Kids Goods ( Food range.

price strategy by dealing directly with manufacturers that allows it to undercut rivals by 20 . P/Q Higher Price Lower Price Higher Quality Premium Strategy Good Value Strategy Lower Quality Overcharging Strategy Economy Strategy 24 .  Textiles Alteration Service Hemming alteration for Carrefour customers. it is still a figure that has not yet been attained by any other retailer.50%. Below table of price positioning strategies.Based on services differentiation. Although negotiations with manufacturers ran into some difficulties and the percentage of directly negotiated goods sold at the Carrefour store reached only 55%. Stimulated by low prices.  Wrapping Service price positioning strategies One of Carrefour's most distinct characteristics is its low . stores have found effective and inventive tools to drive the sales momentum. Carrefour also provide customer service such as:  Free Delivery Service Free delivery for selected items within 30km radius of our stores.

Overcharging Strategy and Economy Strategy." If true.unless the premium product offers more status or "badge value" (snob appeal). " Carrefour have high quality. and if the quality . For those think this type product very expensive in Carrefour can get money back from Carrefour but need follow Terms & Conditions. No questions will be asked!).) Carrefour Fresh Food At Carrefour low price does not mean low quality. Besides.e. Their value for money Brand Values & Assurance gives you the assurance that the entire range of Carrefour¶s competitively priced product range has withstood the stringent quality control standards developed by Carrefour. Carrefour avoid offer their products at Premium Strategy. "Consumer will still get a refund from Carrefour even if they changed my mind or made a wrong purchase" (If consumer are not happy with their purchases or bought the wrong item. 25 . Carrefour Family Goods At this product also Carrefour offer low price with high quality and services given by Carrefour are .The good value strategy is a way to attack the premium pricer. but at a lower price.sensitive segment believes the good ± value pricer. The services offered by Carrefour is ³Lowest Price Guaranteed Or Twice Your Money Back!´ (Carrefour will give two times the price difference if consumer ever find any item they have purchased at Carrefour being sold cheaper elsewhere. Quality is one element which is never compromised in their quest to provide the best deals for consumer. i. simply return it to Carrefour. they will sensibly buy the product and save money -. Carrefour Home Products In this type product Carrefour follow good value strategy. So that fresh food at Carrefour also have Higher Quality with Lower Price. They'll refund 100% of consumer money. Carrefour presenting lower prices for their product offerings.

convenience stores and Promocash   products which stay a bit longer in warehouses. Carrefour is mainly concerned with outbound logistics as they manage flows of finished products to ultimate customers (and to business buyers for cash & carry). Before the merger Carrefour ± Promodès.push´ logistics. they decided to organize a common and efficient channel of distribution. Some of the producers are local while other goods are bought by bulk purchases or global sourcing. The Carrefour acts as a wholesaler as the Group sells products to franchises. They gather 26 .Distribution Channel The Carrefour as a whole is an efficient channel of distribution: it is a whole set of marketing intermediaries that have joined together to transport and store goods from producers to consumers. both firms had their own channels of distribution. It means that they both do forecasts and they also control what is sold in order to adapt. with the ³multidrop system´. That means that Carrefour has to organize the whole transportation to its retail stores. It can be divided into three networks: grocery products which stay a very short time in warehouses for  hypermarkets the same products for supermarkets. 8 trucks are needed to deliver products to one hypermarket! They use sophisticated software to create an efficient link between sales and purchases. This is a critical activity for Carrefour: they just cannot have empty shelves because that would not make customers happy! Each day. All the retail stores are other intermediaries. Carrefour owns many huge logistics platforms (also called distribution warehouses). After the merger. only one truck is used to transport products from a manufacturer to two close warehouses. They use ³push ± pull . Moreover. and that are delivered to all formats of stores This new system enables to reduce the distance over which the products are transported (thus reducing the cost). and also shortens the time for the delivery.

people can buy such goods as chocolates. Carrefour have adapted the kinds of products they sell to the local culture. Promotion ) . so they appreciate fresh products. only once a week. helpful services . Chinese people do not always have a huge refrigerator . 27 . and a car is very useful to transport the goods back home. by guaranteeing both prices and quality for lots of fresh products has a real advantage : it is much easier and practical to buy fresh goods.products from different manufacturers (which are suppliers for Carrefour). in Carrefour . the goods were transferred to Carrefour warehouses. in Malaysia . in order to avoid any mistakes. Carrefour . This market segment needs were not yet fulfilled. and then. people often drive to hypermarkets . The group also adapted its services to local shopping habits. wine. They have introduced technological tools: those who prepare orders are helped by a vocal recognition tool. as western products are not sold elsewhere. Manufacturers used to store finished goods in their own warehouse. they also sell western products for the western people living here . Moreover . Price . Carrefour now wants to transport directly the finished goods from the manufacturers¶ to Carrefour warehouses. That is why big parking lots are needed. which are referred to as the 4 Ps. Place . the appropriate product mix . PRODUCT The Carrefour needs to design their stores so that they meet customers need. and even cheese or cookies just like in France. They buy everything they need for the week. Marketing mix The marketing mix looks at the four main factors that go into a marketing program (Product . This includes having the right store format . and a reliable private label brand. For instance . and redistribute these products to the different stores when they need them. For instance. In Carrefour Malaysia. Thus .

they even talk of the ³price image´ of the group. thus gaining market 28 . Nine out of 10 customers fill their shopping carts with Carrefour brand products. Champion ( in Champion supermarkets ) and Grand Jury ( in convenience stores ). This is a competition . and the Carrefour tries to set the price below the competitors. even though they are already under their competitors¶ price. The objective of the Carrefour is to reduce prices in all formats of stores.based pricing. The objective of this price reduction strategy is to attract more people to the stores. It has a special colour code . PRICE This is a very important P in Carrefour¶s strategy.based (or target) pricing as they constantly try to reduce prices to meet or exceed customers expectations. The Carrefour brand is the best . their strategy is based on what other competitors are doing (including hard discounters and informal traders).selling brand in Carrefour hypermarkets. they use widely recognized labels to promote trust among customers.000 mass-market products and miscellaneous household goods. However. They have paid a special attention to the packaging so that the brand is immediately recognizable . The Carrefour product range now includes 11. In order to improve these brands equity. Thus. In 2005. these products do not carry the manufacturer¶s name. the clearly stated objective of each hypermarket was to be the least expensive store within its market radius.label) brands: Carrefour (in Carrefour hypermarkets) . complete labelling information and a display of the Carrefour¶s ³satisfaction or consumer money back´ policy.Although the Carrefour sells a lot of goods with a manufacturer ¶ brand names (such as Danone . representing 25% of the total sales. Yoplai t or Nestlé ). The brand loyalty is very high. they also seem to have a demand . they also sell dealer (private . displays the Carrefour¶s quality commitment.

the more economies of scale they can do. the Carrefour has different store formats. Possession utility. 29 . PLACE This P is about putting the product in a place where people will buy it. the Carrefour has developed a new format according to consumer needs and wants. In order to sell products where people want them. baguettes departments such as the butchers¶ and the fish department also perform form Time utility. The objective can be explained as a virtuous circle: the more they sell. Form utility. The main ones are fresh product price competitiveness. various Other ingredients utility. to The make fresh bakery department bread and in hypermarkets on the uses spot. In order to make products available when they are needed. Place utility. With the PASS Card. croissants. For instance. the more they can lower prices thus attracting more customers. hypermarkets can deliver them to you. They have also studied what factors contributed to this image. price competitiveness of the private label range. The Carrefour also helps to take a loan to buy a car for example. hypermarkets are in town suburbs easily accessible by cars. They pay a particular attention to the pricing of ³sensitive´ categories of products (those that the customers notice). reliability and quality of the price indications. The Carrefour has reduced the necessary time to analyze the research data and to adjust price displays in each department to 24 to 72 hours maximum. The Carrefour adds value to goods or services by different means. The group provides credit. in Malaysia . customers can spread out their payments and make their purchases on credit. When you buy big goods.shares.

public relations. as Carrefour is one of the biggest firms. they do not use personal selling. It is worth noticing that as other big retailers. It is quite simple to remember. can be very optimistic as everything is so great in these hypermarkets. Carrefour uses various tools (advertising. it is highly efficient as people see the billboards many times. Time to time. sales promotion) which altogether are called the promotion mix. and to show how this is a good thing to customers. Public relations In order to inform the public of the changes that are being made by Carrefour. they use other medias such as the TV to promote nation ± wide events. Lebih Hemat ) is probably one of the best known among Malaysian people. these publications are a good publicity for the Carrefour. 30 . It just means that with Carrefour.term activities. Moreover. Overall. Carrefour has a very efficient information programme.PROMOTION Promotion is the effort to inform and remind people in the market about products on sale in the stores. and to persuade them to buy. Carrefour Hypermarkets regularly send catalogues to all households that live nearby. Advertising Carrefour slogan (Lebih Jimat. Sales Promotion Sales promotion is the promotional tool that stimulates consumer purchasing and dealer interest by means of short . In each hypermarket. As they target the local market. there are many newspaper articles about the Carrefour.

so that people can easily access to work offers and have information about them. for which all the shops are separated). They can have reductions of 20% on most popular products. for example. Using Technology To Manage Information The development of technologies has been very important for the development of Carrefour. The development of computers has been very useful for logistics reasons too. And these databases are very important in the strategy of Carrefour.they have a reserved zone where they make special displays to present new products. Carrefour keeps information for each customer that has a loyalty card. The use of servers has also allowed developing giant databases of customers. Carrefour created a website for recruitment purposes. Increasing purchasing power The overall trend of the distribution sector in the world is mergers and acquisitions. The global market for distribution companies is very competitive because customers are always looking for the cheapest products for everyday live purchases. 2. allowed Carrefour to develop new kinds of activities like the online supermarket. The Internet. But the most important point with the Internet is the creation of a B2B extranet. and thus reduce significantly the costs. Finally. The main technology that has been useful is the computer. Special events are organized each time they open a store. They also use bonuses (buy one. for example. Faster computers can generate more accurate delivery schedules. especially one they want to get rid of their stock Marketing management strategies 1. no need to browse lot of time to find a simple information. For most formats of retailers. the market can best be described 31 . and then the Internet. Suppliers can manage their relations with Carrefour more easily and more efficiently. There are also reduction coupons for those who have the loyalty card Carrefour. and whichever shop are going to consumer are known and can use the advantages of their loyalty card (for example. get one free).

Decreasing purchasing power is also a classic reason for players to cut prices. Almost everyone would agree on a simple statement that prices never go down. it was incorporated on October 31. 1969. Carrefour needs to make SWOT analysis to increasing purchasing power. Carrefour must see the market place by place. according to the 2007 Fortune Global 500. even this market tends to be an oligopoly nowadays. The only exception may be for district shops which could have been described as a perfect competition. and psychographic to be first retailer in Malaysia. and listed on the New York Stock Exchange in 1972. Brazil. It has wholly . by demographic. Inc.owned operations in Argentina. and the UK. 32 . the British National Health Service. as there were many different brands. Canada. with an estimated 20% of the retail grocery and consumables business. It is the largest private employer in the world and the fourth largest utility or commercial employer. purchasing power would have a hard time moving up. If that were the complete truth. and the Indian Railways. as well as the largest toy seller in the U. Wal-Mart's investments outside North America have had mixed results: its operations in South America and China are highly successful. and in Japan as Seiyu.S. geographic.Mart Stores. Inc. Puerto Rico. discount department stores. So. Wal-Mart operates in Mexico as Walmex. is an American public corporation that runs a chain of large. and Carrefour¶s SWOT analysis Mart Stores. but it sold its retail operations in South Korea and Germany in 2006 after sustained losses. However.as an oligopoly. with an estimated 22% share of the toy market. iv) Wal. Founded by Sam Walton in 1962. It is the world's largest public corporation by revenue. in the UK as ASDA. trailing the Chinese army.. Wal-Mart is the largest grocery retailer in the United States. as only a few sellers dominate the market.

Wal-Mart Stores Strengths The slogan. store-by store at a glance. The company has a core competence involving its use of information technology to support its international logistics system.        33 . low rates of employee health insurance enrollment. People are key to Wal-Mart¶s business and it invests time and money in training people. women's rights groups. Wal-Mart has grown substantially over recent years. and alleged sexism. and labor unions. which it had increase purchasing power. Wal-Mart's goal was to be a "good steward for the environment" and ultimately use only renewable energy sources and produce zero waste. "Save Money Live Better. Wal-Mart is a powerful retail brand. specifically for its extensive foreign product sourcing. For example. Sell products at prices lower than those asked by traditional retail outlets.Wal-Mart has been criticized by some community groups. convenience and a wide range of products all in one store. It has a reputation for value for money. grassroots organizations. Always" slogan." replacing the "Always Low Prices. it can see how individual products are performing country ± wide. A focused strategy is in place for human resource management and development. resistance to union representation. IT also supports Wal-Mart¶s efficient procurement. and retaining a developing them. and has experienced global expansion (for example its purchase of the United Kingdom based retailer ASDA).

Carrefour is the second largest retail group in the world in terms of revenue and sales figures after Wal-Mart. Textiles Alteration Service.  Guaranteeing food products safety and quality. Easy Payment Scheme.  34 . 0% Interest Free. Free Delivery Service. institutions and the environment. Food Court.  Give more services to consumer such as Extended Warranty. suppliers and customers. and good health care. Wal-Mart is one competitor of Carrefour in the world. Handicap Friendly Store Facilities.  Fully assume the consequences of their actions on customers. SWOT analysis Strengths  Carrefour Offer low price with high quality products. Automated Teller Machines.  Respect their staff.  Providing their customers with freedom of choice. Have good working conditions. their company and staff. Cutting Service. Taxi Stand and Bus stand. Surau / Moslem Prayer Room. Baby Changing Rooms. and the first in Europe. so that Carrefour in Malaysia need to improve market positioning and make SWOT analysis as well before Wal±mart operate in Malaysia. Wrapping Service.

 Carrefour can make repositioning strategies to reduce the impact of the competition. For example. Weaknesses   Carrefour always located at town side. the Carrefour ¶s own brands met with undeniable success. locally and globally. then that Carrefour manufacturer need seek to reposition the product by modifying the product to be lower in fat 35 .   Carrefour will provide new services in Malaysia as soon such as in France. if Carrefour consider that a certain product to be high in fat and sugar. Being a global retailer means that they are exposed to political problems in the countries that they operate in. Offering excellent value for the customer¶s money. (people stay at out of town need to make long travel to purchasing in Carrefour). Threats  Being second retailer means that they are target competition. Repositioning may be required to change consumer's perception of a brand relative to competing brands. The services are ³self check . attracting an ever more demanding clientele. Opportunity New locations and store types offer Carrefour opportunities to exploit market development. paying for them at automatic checkout facilities and then bagging them themselves.out´ system which offers customers the option of scanning their purchases themselves.

elderly person often do not have a car and live alone. so they need a store near their house. For instance. and customer and and employee safety at our store locations. Sometimes consumers have misperceptions about the brand or do not adequately value a particular product attribute. Besides Carrefour need to: Making the brand work harder will help Carrefour grow sales and profits in Malaysia.value. The Carrefour¶s need to attract the greatest possible number of people to their retail stores. However. Ensure product safety and quality. they need to have different formats of retail shops to fulfill these needs. just once a week.      36 . Offer a more diversified product mix than traditional with hard discount. and then communicating the lower fat and sugar content to consumers. As different market segments have different needs. Guarantee respect for human rights internally and along their products' supply chain.and sugar. large families with children are looking for hypermarkets where they can buy goods at a cheap price. So that Carrefour need deploying an ongoing and aggressive lowprice policy by expanding its in ± store promotions and communications. The Carrefour can seek to change consumer's attitudes through promotional activities that educate the consumer on the product's attributes and benefits. Strengthen environmentally conscious product and packaging design and develop a range of products with social and environmental added . they need district shops.

(1995). CarrefourCompany Report. 1995h. Distributed by Information Access. and inform staff of their view of the world. Anonymous. (UBS Research Limited. Respect customers' freedom of choice by offering them a wide range of products at attractive prices with full. and their core values. 1995. 2995). 2. March 29. factual information. Promote staff training and development. Euromonitor 1995: World Retail Directory and Sourcebook. CA. Great Britain: Euromonitor plc. their policies and their approach to sustainability.  References 1. In Investext [Database on CD-ROM]. Foster City. London. 37 .

1995. 1995h. 2995). Available: www. (Salomon Brothers. (online). October 11. CA. Wal-Mart Company Report.. Carrefour Malaysia. Distributed by Information Access. March 29. Available: www. Inc.Wal-mart. Websites 1.my 2. Wal-mart store inc. (online).3. (online). (UBS Research Limited. 1995g. Foster City. Foster City. CarrefourCompany Report. Anonymous.com 38 . Carrefour Group. In Investext [Database on CD-ROM].Carrefour. 1995. In Investext [Database on CD-ROM].com. Anonymous. CA. Available: www. Distributed by Information Access. 1995).Carrefour.com 3. 4.

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