Carrefour

THE CARREFOUR CASE

Retail Sector Case Study

1. How should Carrefour launch this new approach? A new card? What services?

 We think that the best idea is to advertise this ¨new product¨ by informing people with publicity leaflefts and inside Carrefour with promotional posters. People will be informed about it and if they are interested they will have to fill in a form and the card will be delivered to their adress.

 We are offering 3 types of cards.

▪ First one will be blue: this means everyone will have this cards during first month and everyone will be able to get this card.

▪ Second card will be pink: this means customers will have to spend over 500 € per month.

▪ The last one will be golden: this means customers will have to spend more than 1000€ per month.

 What services? (focusing on golden card)

 Special stands in every section which will have golden colour with the best quality products. Everyone could buy these prodcts. And then we will have golden section very exclusive in which only golden card members could buy inside. (For first month it will be open to everyone).

2. What kind of price offer should be offered?

 We will offer accumulative points and when customers reach an amount of points they could choose between two options:

 First one: they could get a discount by getting these points.

 One point means „1 €“ in next shopping reduce. You don't have to use this discount but you can select more points for next shopping or getting some presents.

 Second one: with these points they will be able to choose between several gifts.

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If you have a golden card you have babysitting or guarding dogs for free.

3. How should this ¨product¨ look like?

 It will look like a credit card with specific colour for each card but they won't be abel to pay with it, they will have to give this card when they pay and the points will be introduce to it. The main idea of these cards is to permite carrefoure management to know all the movements of their customers, everytime these cards are used they will receive the information of their customers and the list of things they bought. So it will be easier for them to create promotion, discounts and maybe create specific marketing to each client so they can fill unique (direct email/catologue eg. with special offers that could be interesting for them).

4. What are the competitors doing?

Carrefour has many competitors, we are going to analyse AUCHAN and TESCO.

• AUCHAN group : what they want to do is to strengthen the buying power and choice of consumers; offer the lowest prices, but also propose a wide selection and innovative services. They want people to think : All Auchan services, everywhere, all the time, whenever I want them ; they have olso decided to create a dedicated e-commerce business line.

Auchandirect : Paris, Lyon, Lille, Toulouse, and Marseille since 2010

Auchan.fr : delicatessen, non-food, services

Grosbill: high tech products through its stores (9 webstores) and via Internet

To reinforce the relation of proximity with the customer, the chains are also developing loyalty cards.

• ALDI group : They eliminate virtually all of the extras. There are no baggers, fancy displays, check cashing or preferred customer savings programs. Customers shop out of open displays, which are easy to replenish and require the least amount of labor. They also use a shopping cart rental system. The customer is required to put a coin in the grocery cart and when the cart is returned the customer gets the coin back. This tactic

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