Carrefour egypt


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Carrefour egypt

  1. 1. Marketing research1 Carrefour Egypt Tamer El-Arid
  2. 2. Marketing research2 • Introduction. • Methodology. • Finding. • Conclusion. • Recommendation.
  3. 3. Marketing research3 Introduction • Active shopping concept developers throughout the region, introduced the hypermarket model to the Middle East in 1995. • In the expansion of Carrefour across the region currently there are 37 hypermarkets in the Middle East. • Carrefour Egypt started fully functioning at the end of 2002. • Carrefour reputation has been built, above all, on the quality and freshness of the products, customer service and competitive prices. • Carrefour’s own retail brands are a significant medium for brand differentiation and customer loyalty.
  4. 4. Marketing research4 Methodology • Problem definition: • Pressure of hypermarkets and increase number of competitors and increase its share, scope for further growth of Carrefour in Egypt is large. • Decision: • Expansion of Carrefour branches all over Egypt to increase its share, profit and brand image. • One approach to open “Mini-Carrefour” outside Cairo.
  5. 5. Marketing research5 Objectives 1. Studying demographic of Egypt. 2. Consumer behavior and lifestyle. 3. Consumer spending power. 4. Retail Greenfield. 5. Growth potential. 6. Governmental support. 7. Labor force and its role in business. 8. Cost base and affect on profit. 9. Support of feeder industries. 10. Studying competitors and their strategy.
  6. 6. Marketing research6 Research design  Exploratory design:  The search began internally with Carrefour.  have asked to allow us to consult personnel who may have access to records.  Gain access to (possibly indirectly) internal reports on the domestic marketplace; information on distribution; correspondence with customers at different regions; regional buying patterns; any complaints.  inspect published research for any indications of retail sales.  portfolio for advertising and promotional materials used by the competition.
  7. 7. Marketing research7 Descriptive research  Explore and understand the attitude of potential customer.  Consumer behavior and lifestyle.  Quantity like to buy.  Carrefour brand for them to other competitor.  Carried out questionnaire as cost effective way to connect with customers.
  8. 8. Marketing research8 Validation  Used a flexible and powerful data cleaning tool to check for any data errors or any logical inconsistencies.  Validation question.  Sampling error.
  9. 9. Marketing research9 Findings • Results were obtained by questionnaire. We interviewed 40 respondents from different regions outside the Capitals (Cairo & Alex). We put into mind the variation in the Age group and Gender. • Purchasing per month • 37.5% of customer purchase once monthly. • 22.5% do purchasing 3-6 time/week. • 22.5%1-3 time per month. No. of purchase 0 2 4 6 8 10 12 14 16 No No Once Everyday 3-6 W 1-3 time M.
  10. 10. Marketing research10 • 80% of customer in sample purchase from supermarket . • 65% of customers in sample spend less than 1 hour in purchasing . • 50% of customers in sample spend in purchasing 1000-5000 L.E. Gerocerytype 0 5 10 15 20 25 30 35 NO NO Super market Special gerocery Time spend 0 5 10 15 20 25 30 No No less 1hr 1-2 hr More 2hr
  11. 11. Marketing research11 • 67.5% of the customers attracted by sales offers. offer attract you 0 5 10 15 20 25 30 No No Ab. Yes Not so much Not at all
  12. 12. Marketing research12 • 75% of customers in the sample buy all needs form the same market. • 25% of customers in the sample purchased their goods for Spinnyes, 22.5% form Carrefour and 15% form Hyper and also Metro. Supermarket prefer 0 2 4 6 8 10 12 No No spinnyes Carrefour Ragab sons Abo khalifa Hyper Metro Royal house Amir Amira market Soedi Mega Mercato
  13. 13. Marketing research13 • 37.5% of customers in sample interest in availability of food and 20% interest in fresh food. • 92% of customers in sample interest in improving of food quality. Imp. of food quality 0 5 10 15 20 25 30 35 40 No No Fair V. imp. Imp. pf purchase 0 2 4 6 8 10 12 14 16 No No Food fresh Avilability Price Quality Convenience
  14. 14. Marketing research14 • Increasingly competitive retail grocery industry, Carrefour sought to gain more control over its marketing processes and more effectively leverage its business intelligence—with the ultimate aim of strengthening customer loyalty. Market share 54 110 17.6 25 17.5 Carrefour Metro Hyper Spinneys Alpha
  15. 15. Marketing research15 Conclusion • Egyptian market is a great opportunity for investment in supermarket sector due to increase of population and prefer to purchase products from well trusted company.  SWOT analysis:
  16. 16. Marketing research16 SWOT Analysis S •54 USD sales by five stores all over Egypt. •2nd largest retailer all over the world. •Market leader. •Wide range of products. •Huge selling area. •Good service. W •Take long time to open new store. •Not have branches all over Egypt in all governorates. •Not have more employee assist customer in buying. •No delivery. •Weak own brand sales. •Poor E-commerce performance. O •Branches all over Egypt. •Improve sales performance. T •Political and commercial issue in Egypt after revolution. •Competitor power (Metro-Hyper-Spinnyes). •Power of buying after revolution
  17. 17. Marketing research17  PESTEL Analysis • Political: After revolution Egypt in political issue due to not presence of president or stable government and there is any clear position about commercial and industrial view of Egypt. • Economical: After revolution, Egypt pass through instability situation, increase in inflation rate, decrease of economic growth. • Social: Shopping in modern and clean supermarkets with a variety of different products is becoming a lifestyle and leisure activity among Egyptians. • Technological: Improvements in technology will allow Carrefour to perform better analysis of data related to existing and future customer bases.
  18. 18. Marketing research18 • Environmental: Egypt’s substantial population makes it the largest market in the Arab world, with the population increasing from 78mn in 2009 to an estimate of 84mn by 2014, and GDP per capita predicted to rise by 72% reaching USD 4,201 by 2014. • Legal: Egypt after revolution will support investment and businessmen to increase their business and expansion in all sectors.
  19. 19. Marketing research19 Competitor analysis  Metro Supermarkets: • USD 110 million in sales across 40 stores with an average sales area of 863 square meters. • Domestic chain owned by Mansour Group. • Mainly mini-markets in middle-income residential areas. • The company has introduced discount format at three stores under the name Kheir Zaman.
  20. 20. Marketing research20 • Spinneys: • USD 25 million in sales at one store of 9,000 square meters. • Gulf retailer is present in Cairo’s CityStars modern shopping facility. • Plans further expansion in the country. • Alfa: • USD 17.6 million in sales across five stores with an average sales area of 2,500 m2 . • Established Egyptian chain of department stores with an aging profile. • HyperOne: • USD 17.6 million in sales at two stores with an average sales area of 10,000 m2 • Owned by Egyptian retailer El-Hawary. • More discount oriented than Carrefour, targeting average and lower income.
  21. 21. Marketing research21 Segmentation • Geographic segmentation: • Egypt is divided into 27 governorates, Carrefour establish in two governorates only (Cairo-Alex.). • Demographic segmentation: • Population growth rate: 1.96% (2011 est.) • Birth rate: 25.43 births/1,000 population (2010 est.) • 0-14 years: 33% (male 13,308,407/female 12,711,900) • 15-64 years: 62.7% (male 25,138,546/female 24,342,230) • 65 years and over: 4.3% (male 1,546,774/female 1,818,778) (2010 est.)
  22. 22. Marketing research22 • Psychographic segmentation: – The average of Egyptian income 5400 USD /year. – 2% of Egyptian earns 20000000 /year, ultra luxuries enjoy money. – 8% of Egyptian earns 2000000/ year, – 30% of Egyptian earns 80-150000/ year, well educated striving for growth and capitalism mentality. – 20% of Egyptian earns 15-40000/ year ambitious but only covering basics and social needs. Earn for good future for their children. – 40% of Egyptian earns 1-15000 /year focus on life necessities. • Behavioral segmentation: • Egyptian behavior in last years changed toward buying from hypermarkets.
  23. 23. Marketing research23 Recommendation • Targeting • Based on the previous segmentation, Mini-Carrefour target market will be mostly all segments with focusing mainly on age 15-64. It will also target the Class A and B customers .. and class C to smaller extent.
  24. 24. Marketing research24 Positioning • “Positive is back” an expression of the brand’s unshakeably optimistic and committed state of mind. Its new stance is in line with the current concerns of Egyptian citizens, who are seeking simple, accessible solutions to improve their day-to-day lives.. • High quality discount products, easier shopping, accessible organic goods, new technologies, eco-friendly products ... these are all examples of positive undertakings Mini-Carrefour intends to reinforce as the Group evolves.
  25. 25. Marketing research25 4 p’s • Place: • Based on our target, Mini-Carrefour will open in places where there’s high volume of customers. It should be almost near to most population in the city for convenience. • Product: • Mini-Carrefour has to adapt its merchandise to the culture. For example, certain food nuances had to be appreciated, such as the sale of halal food that lacked pork. Second, Mini-Carrefour has to adapt to Islamic cultural holidays like Ramadan and Eid, which would build its peak sales. During these holidays, Mini- Carrefour has to account for increased demand and plan its supply accordingly to not disappoint shoppers. Third, operating hours in Egypt had to accommodate Egypt’s workweek from Saturday to Thursday, and the weekend which is mainly Friday.
  26. 26. Marketing research26 • Promotion • Mini-Carrefour main promotional effort will be discounting certain items. Also, we will handle local promotions, and coordinate some of these regionally with its stores throughout the Middle East. Promotions will be placed in print media and in-store, to attract mall-walking traffic. Because Egypt is a society emphasizing the importance of social relationship, Mini-Carrefour could reasonably expect that consumers might discuss some of the deals. • Price • Mini-Carrefour’s price position will be as a discounter, and will use pricing as part of its promotional effort.
  27. 27. Marketing research27