Варненска търговска гимназия „Георги Стойков Раковски“

Market Leader 3rd Edition – Intermediate Unit 1: Brands Group A

Class: XI „А“ Name: ................................................................................................................... Number: .............
READING
REAL CHIEF SAYS 1. Look through the whole article and find the
OWN BRAND IS THE WAY AHEAD following information about Joel Saveuse:
Joel Saveuse walks across the Real hypermarket in 1) His nationality ________________________
northern Germany in search of “those little biscuits”. 2) His age _________________________
Moving from toys to the freezer section, the 55-year-old, 3) His job _____________________
who runs the country’s biggest food retailer, finds what 4) The organisation that he worked for before
he is looking for in aisle 45. “This is my favourite ______________________________
product,” Mr saveuse says, holding a packet of chocolate- __ / 4
filled Mini Double Biscuits. “Look, here’s a simple 2. What two phrases are used in Pragraph 2 for a
picture of the contents,” he says as his finger moves brand owned by the store selling it?
across the packaging, “and top left is the “Real Quality” 1) _____________________________________
logo.” 2) _____________________________________
Together with a handful of rivals, the Frenchman is __ / 2
starting a small revolution in Germany by replacing its 3. Use information from the first three paragraphs
different in-house brands with a single own brand that to complete the table. If the information is not
links the retailer with a product range. The aim is to raise given, write N/A.
in-house brand sales from 15 per cent up to 25 per cent of Real Tesco Carrefour
food sales in two to three years’ time. Mr Saveuse says (UK)
that customers get top quality for at least 15 per cent less Percentage of own-brand
than they would pay for a name brand – and Real gets a food products now
better profit margin. Company’s objective for
Such logic has seen Real’s foregn rivals push true percentage of its own-brand
own-brand lines for decades. Real reckons up to 60 per food products in its shops in
cent of Tesco’s UK sales come from its three Tesco 2-3 years from now
brands, and Carrefour is aiming for a 30-per-cent quota, Typical price of a store-
up from 25 per cent now. brand product as a
After working on the concept for the last year, Real percentage of the price of a
introduced 850 Real Quality items this September – name brand for the same
coincidental but “absolutely perfect timing” for the type product
economic downturn that followed the banking crisis, the __ / 9
Real head says. Although Mr Saveuse says thet shopping 4. Match the words to make expressions.
habits at Real have not yet been affected by economic 1 banking a downturn
woes, he stresses that next year could see shoppers 2 economic b habits
buying more own brands as they look for more value for 3 perfect c timing
money. “Crisis doesn’t just bring disadvantages,” he
says. 4 shopping d discounters
Given the power of own brands in good times and 5 economic e crisis
bad, it is surprising that German retailers only launched 6 powerful f woes
distinctive lines las year. The cause lies with Germany’s
powerful discounters. Aldi and Lidl have in the past 1 __, 2 __, 3 __, 4 __, 5 __, 6 __.
generation helped corner 40 per cent of the food retail __ / 6
market – as against 6 per cent in the UK – by selling little 5. Match the expressions in Exercise 4 to their
else than a small range of own brands, a move copied by meanings:
Real, with, say, its low-cost “Tip” range. 1) Retail organizations that sell chap products and have
“But we are internationalising now,” Mr Saveuse a lot of influence on the market
says. “In Poland and Turkey, we’re competing against _________________________
Carrefour and Tesco, in Russia and Romania against 2) Where, when, how, etc. people usually buy things
Carrefour – that has forced us to focus on true own-brand _______________________
as a way of building our presence.” Strengthening the 3) When financial institutions were in extreme
Real brand is key to reviving the chain. A format held difficulty _________________________
back by discounters. Mr Saveuse reckons the German 4) When the time to do something is just right
hypermarket has a future. He should know. Until 2005, _________________________
he was second-in-command at hypermarket pioneer 5) When sales, profits, etc. go down
Carrefour. ____________________
6) When the economy is in difficulties
___________________
__ / 6
Why have own brands not been as important in
Germany as elsewhere? (Paragraph 5)
____________________________________________
_________________________________________
__ / 3
__ / 30