Careefour India Strategy and Plan
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Transcript of Careefour India Strategy and Plan
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Retail Marketing
Ronak Shah 08Mitesh Mehta 06
Bhavana Kanwarjani 04Sameer Chavan 26
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Over the past 40 years, the Carrefour group has grown to become one of the world’s leading distribution groups. The world’s second-largest retailer and the largest in Europe, the group currently operates five grocery store formats:
1) Hypermarkets, the retail business of today2) Carrefour market, the ideal supermarket3) Convenience: always attuned to customer needs4) Cash & carry: proximity and accessibility for catering professionals5) E-commerce
The Carrefour group currently has over 9,500 stores with a presence in 32 countries, either company-operated or franchises.
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The Indian retail market, the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the retail sector by AT Kearney's latest annual Global Retail Development Index (GRDI).
The retail sector is expected to contribute to 22 % of India's GDP by 2012. At present, the retail industry in India is estimated at US$ 400 billion
As of now, the organized part accounts for around 6.5% of the Indian retail market. Though, it is expected to maintain a faster growth rate in the coming years with an estimation of touching 13% by the end of 2013
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Till 2005, no FDI was allowed in Indian retail market. Hence, number of international luxury brands were very limited.
In 2008, government announced 51% FDI in single-brand format, the number of luxury brands increased to 25.
India allows 100% FDI in wholesale cash and carry, but multi-brand retailing is not open to foreign investments.
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Sourcing office in the country for over two decades
Playing hard to get over the last five years as negotiations with almost all big Indian companies – Bharti, Wadias, DLF, Parasvnath and Reliance Retail – ended without any results
Carrefour currently operates two wholly owned subsidiaries in India, Carrefour Wholesale Cash and Carry India Pvt Ltd and Carrefour India Master Franchise Co Pvt Ltd.
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Indian strategy
Entering the Indian Market via Cash & Carry Concept.
Building Awareness and Brand Loyalty
Partnering with right Indian Retail Partner to open Franchises model store across the country.
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Indian strategy
Localisation - has been the biggest strength of carrefour in the countries it operates. Local tie-ups to hiring local executives to run stores, local sourcing to merchandising
Supply chain strategies -Using 'direct procurement strategy' in the Indian market
Store openings - Decentralisation is another key strategy for Indian Market
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Focusing on Tier – II cities, with the first store being in the National Capital.
Advantages of T – II cities Carrefour can buy huge spaces which they might not get in the Tier 1 cities
The cost of the land would be less expensive
These are growing at a rapid pace
The buying power of people in these cities is substantial
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Seelampur, Delhi
Sale area of – 55,952 sq. feetTotal area of – 56,000 sq. feetSKU – over 10,000 units
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Vastrapur, Ahmedabad
Sale area of – 43,000 sq. feetTotal area of – 50,000 sq. feetSKU – Over 10,000 units
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Magarpatta, Pune
Sale area of – 52,000 sq. feetTotal area of – 60,000 sq. feetSKU – Over 9,000 units
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Meerut
Sale area of – 23,000 sq. feetTotal area of – 30,000 sq. feetSKU – Over 8,000 units
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Fatehpur Sikhri, Agra
Sale area of – 33,000 sq. feetTotal area of –40,000 sq. feetSKU – Over 9,000 units
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Mansarovar, Jaipur
Sale area of – 55,000 sq. feetTotal area of – 65,000 sq. feetSKU – Over 10,000 units
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Product range
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Others ElectronicsMobilesBooksArt & HandicraftSports equipmentsInsurance Travel PlansMultiplex
Services Kids zoneFood CourtGaming zoneFree Home deliveryGas station
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a global approaCh Combining:
Carrefour offerings in India to meet economical, social andenvironmental challenges.
progress
Economical social Environmental
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Balanced Diet For Everyone
• A factor in many diseases, obesity affects children and, and adults• Provide information and raising their awareness, as well as to this problem.• By offering them accessible products to ensure that everyone – children and adults alike – can enjoy a tasty yet balanced diet
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Healthy Bache
• Sell Miniature Fruits in fun sized and appealing packages to encourage children to eat more of it.
• Organize learning activities with the help of dieticians. Eg :- Tournaments like Football, tennis etc to put across a message to children.
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Club Card - Provide Club cards to members.
Products required in Indian Shelf’s
• Introduce a wide range of organic and environmental friendly products.
• Local brands.
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Go Regional
Adapt to the regional environment of the city :- e.g. Regional Lingo, Regional Clothing’s (Color) in the store to connect with the customers' emotionally.
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Thank You