Carrefore Pakistan (MBA final Project)

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CHAPTER 1
INTRODUCTION
Retail is defined as the sale of goods, products or you can say services from some business to a
customer for one’s personal use. A retail transaction purposes to handles small quantities of
products while on the other hand wholesaler tend to deal with the purchase of goods on a large
sector. Retail transactions are different from the online transactions; goods must be sold from a
sole point directly to a customer for end users.
A retailer is a person from which one purchase goods. Retailers typically don’t produce
their own items or goods. They purchase items from a manufacturer, producer or a wholesaler and
sell these items to the consumers in relative small quantities. Retailing is the known to be
distribution process of a retailer, obtaining goods or services and then selling them to customers
for use. This process is well explained through the supply chain.
The very first Carrefour shop (not a hypermarket) was opened in 1960, within suburban
Annecy near a crossroads. The group was created by Marcel Fournier, Denis Defforey and Jacques
Defforey in 1958, who attended many seminars and were influenced by these seminars in the
United States led by "the Pope of retail" Bernardo Trujillo.
The Carrefour group was the first one in Europe to open a hypermarket, a large supermarket
and a departmental store under the same roof. They opened their first hypermarket in Sainte-
Geneviève-des-Bois, near Paris in France on 15 June 1963.
Carrefour launched a private label Products libres (free products – libre meaning free in
the sense of liberty as opposed to gratis) in April 1976, line of fifty foodstuffs, including oil,
biscuits (crackers and cookies), milk, and pasta, sold in unbranded white packages at notably lower
prices.
It merged with Promodès, known as Continent, one of its major competitors in the French
market in 1999. Carrefour updated its logo in September, 2009.

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In May 2011, Carrefour assessed its situation under conditions of stagnant growth and
increasing competition in France from their rivals including Casino Guichard Perrachon SA, and
then planned to invest $2.1 billion to change the supermarket with the new concept of Carrefour
Planet.
In April 2015, Brazilian businessman Abílio Diniz disclosed that he was in talks to raise
his 5.07 percent stake in Carrefour and also had the support of shareholders to take a board seat.
The Board of Directors chose Alexandre Bompard on 9th
June,2017 as the new Chairman
and Chief Executive Officer of Carrefour with effect as of 18 July 2017.
In 2017, Carrefour was working with a small French start-up, Expliceat, on a trial basis.
Expliceat built a commercial mill which is designed to crumb down leftover bread. It rent mill for
commercial bakeries and then uses these crumbs to bake cookies, muffins and pancakes.
Alexandre Bombard announced a strategic plan for the company in January,2018, entitled
"Carrefour 2022", that intends to make Carrefour the "leader of the food transition for all". The
plan includes measures for better food and package sustainability, limitation of food waste,
development of organic products, e-commerce partnerships, two billion euros in annual
investments from 2018 as well as organizational and cost reduction measures.
1.1 CARREFOUR IN PAKISTAN
Majid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer across the
Middle East, Africa and Asia, has announced to rebrand “Hyperstar” to “Carrefour” across
Pakistan effective 20 December 2018.
Majid Al Futtaim holds rights to operate Carrefour in 38 countries across the Middle East
along with Africa and Asia. Today it has a portfolio of more than 257 hypermarkets and
supermarkets in several countries.
Since 2009 Majid Al Futtaim had a presence in Pakistan through the Hyperstar brand,
which encouraged introducing modern retail to the country. Hyperstar grew from one store to six
hypermarkets and then expanded to three major cities in Pakistan which includes Lahore, Karachi
and Islamabad. The rebranding to Carrefour will boost modern retail further in Pakistan and

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provide customers with the retailer’s exceptional shopping experience along with customer service
offering.
The rebranding to Carrefour is an important milestone for Majid Al Futtaim in Pakistan
that comes with major development plans in the country. As part of the rebranding, Majid Al
Futtaim will also launch a loyalty program for Carrefour, along with a mobile application for the
first time in Pakistan. To reduce the environmental impact, Carrefour continues to use bio-
degradable, reusable bags. The stores continue to offer a wide selection of food and non-food
products at unbeatable prices. Moreover, free Wi-Fi and power banks are available across the
stores for customers.
Carrefour opened up its first store in Lahore, Pakistan in a joint venture with MAF in 2009
under the name of Hyperstar, and a second one in Karachi in 2011. Hyperstar has 7 stores in total
i.e. 3 in Lahore, 2 in Karachi and 1 in Islamabad. In 2019, Carrefour was opened in Faisalabad.
1.2 ORGANIZATIONAL STRUCTURE
The structure of Carrefour is hierarchical with a more functional managerial organizational
structure. The top of the hierarchy in Carrefour’s organization comprises of presidents of
management board and supervisory board. Under them are Directors of organization, systems,
Merchandize and Marketing. Also there is a director for every specific zone in which Carrefour is
located.
This kind of structure proved to be very efficient for Carrefour. It authorizes to important functions
the abilities to take care of pivotal business dealings of each division. It helps in comparing the
performance of each division with the performance of other divisions. In addition to this, it also

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helps in coordination among the functions of each division, reducing the chances of confusion and
of overlapping responsibilities.
1.3 VISION
Carrefour has one ambition to be the most preferred retailer wherever it operates.
1.4 MISSION
Carrefour is totally focused on meeting the expectations of its customers. Our mission is to
be the benchmark in modern retailing in each of our markets. As a global retailer, Carrefour is
committed to enabling as many people as possible to purchase consumer goods, in accordance
with the principles of fair trade and sustainable development. Our mission is to offer the largest
number of customers the widest range of quality products at the best possible price.
1.5 LOGO
1.6 SLOGON
“LOW PRICE AND SO MUCH MORE”

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1.7 SIGNIFICANCE OF STUDY
CARREFOUR deals with no of large items under one roof in this study we discuss about
the strategies of Carrefour which they are adopt for increase their customer and maximize their
market share. As we know only in Faisalabad the customer have many other options to choose like
imtiaz, Al fatah , chase up E-mart and so many other and why customer choose Carrefour. In this
project we elaborate the strategies of Carrefour and give some suggestions according to market
demand and how Carrefour competes with their rivals by adopting simple techniques.
1.8 OBJECTIVES OF THE STUDY
This project has following objectives:
 To meet the specific needs of customers and offering these products at competitive,
reasonable prices that will still yield profits.
 To Increase Customer Loyalty and brand image.
 To understand the customer need and make a connection between customer and Carrefour
with direct marketing.

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CHAPTER 2
LITERATURE REVIEW
In this chapter we are going to discuss the previous studies that have been reviewed by us. These
studies have been conducted by different people at different times in the world. These studies are
used just as a proof to present the importance of the research topic.
Dick and Basu (1994) had conducted a research on “Customer loyalty: Toward an
integrated conceptual framework”. According to the study customer loyalty has been defined as
the strength of the relationship between the individual relative attitude and repeat patronage
towards products. The relationship is seen as mediated by social norms and situational factors.
Cognitive, affective, and conative antecedents of relative attitude are identified as contributing
to loyalty, along with motivational, perceptual, and behavioral consequences.
Bowen and Chen (2001) had conducted a research to study “The relationship between
customer loyalty and customer satisfaction”. The researchers found the relationship between
customer satisfaction and customer loyalty was non‐linear. The study revealed Developing and
implementing methods to identify attributes that will increase customer loyalty
Afande and John (2005) had conducted a study on “Factors Affecting Customer Loyalty
of Supermarkets in Nyeri Town, Kenya”. The study was carried by the following objectives: to
explore the extent to which price differences in supermarkets affect customer loyalty; to examine
the extent to which competition affects supermarkets in maintain customer loyalty; to assess the
extent to which changing customer preferences has affected customer loyalty; and to investigate
the extent to which the supermarkets’ image affect customer loyalty. The study revealed the factors
that affect the loyalty of their customers. Price is one of the factors that the supermarkets face as
different supermarkets had different pricing strategies. Secondly, the changing customer
preferences also do influence the loyalty of customers since the supermarket owners are uncertain
of the customer’s frequent change of preferences. Moreover, the study established that the image
of the supermarket does influence the customer’s loyalty and finally the study revealed that the
customer loyalty of supermarkets is affected by the stiff competition among the supermarkets as

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each supermarket store strives to develop a market share of the available customers and develop
patronage.
Harridge (2008) conducted a research on “Direct marketing and relationships: an opinion
piece”, He found customer loyalty is the consumer consistence relay on particular brand, services,
store, and particular product. It is assumed that one of the basic motto of relationship marketing
because organization enjoy strategic benefit for loyal customer.
Jeevananda, S. (2011) had conducted a study on “Study on Customer satisfaction level at
Hypermarkets in Indian Retail Industry”. The studied aim to identify the important customer
service attribute that helps in making buying decision and to analyze the correlation
between customer satisfaction level and loyalty of customers. It is found that personal
assistance is the most important service attribute that helps in customers’ buying decision
making process. The study revealed that loyalty of customers is highly dependent on customers’
satisfaction level in the store and therefore retailer should take every step possible to increase
satisfaction level in order to generate customer loyalty. From the study it is concluded that the
retailer believes that retail mix variables such as store layout, atmosphere, assortment of
products and promotion tools, pricing are highly important in order to increase customer
satisfaction level while shopping in the store.
Ardhanari, et al., (2013) conducted a study on “Consumer behavior in selecting retail
format: The perspective of theory of planned behavior” and found the factors that motivate the
behavior in which social status becomes the background of the consumer behavior through
implementation of the theory of planned Behavior to explore consumer behavior in selecting retail
format at shopping can be conducted.
Dudu and Agwu (2014) had conducted a research on “A Review of The Effect of Pricing
Strategies on the Purchase of Consumer Goods”. They investigated the effect of pricing strategies
on the purchase of consumer goods. The study deals with issues associated with pricing strategies
and purchase decision process. The authors recommended that as much as firms should focus on
communicating value to customers through prices, firms should also be on the watch for
competitor’s prices and examine how much it affects purchase of their products.

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Anhar (2014) had conducted a study on “The Impact of Relationship Marketing on
Customer Loyalty at Tesco Plc, UK”. The research aimed to examine the impact of relationship
marketing on customer loyalty considering the context of Tesco plc. Study found that quality of
product is dominate factor of relationship marketing to make loyal customer and other relationship
marketing factor works to being loyal in the long run.
Basavaraj and Shivashankar (2017) conducted a study on “Brand Image and Trust on
Customers Loyalty”. The study focuses on the relationship between the brand image, trust and
customer’s loyalty towards private label brands in Hubli-Dharwad city. This study consisted of
194 valid questionnaires. The study revealed that there exist a relationship between direct brand
image and customer loyalty, between Brand image and trust, between trust and customer’s loyalty
and trust mediates the relationship between the brand image and customers loyalty. The study
evident that there is a mediating effect of trust between the brand image and customers loyalty.

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CHAPTER 3
DATA COLLECTION
3.1 MARKETING MIX OF CARREFOUR
Marketing Mix of Carrefour analyses the brand/company which covers 7Ps (Product, Price, Place,
Promotion, People, Process, Physical Evidence) and explains the Carrefour marketing strategy. In
this report discuss about the pricing, advertising & distribution strategies used by the company.
3.1.1 PRODUCT
The existing set of products is focused around the wholesaler's market and each store is
customized to address need of professional customers. Carrefour offers a wholesale price that
leaves the customer room for healthy margins and provides a one-stop-shop for the customer. In
the food range, freshness is Carrefour's first priority. This is guaranteed by the efficient supply-
chain and quality control management Carrefour have in-place .In non-food, Carrefour only offers
products that are up-to-date in terms of technology as well as design, and meet all the safety
standards.

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 Carrefour is a multinational retailer; in short it has every product or a brand which a person
could see in his day to day life.
 The broad range of product categories include movies, gifts, college essentials, Electronic
items, home appliance, jewelry, photo center, outdoor living, grocery, video games, fresh
food, etc.
3.1.2 PRICE
 Carrefour business model does not include manufacturing of any product; it procures
products across the globe in large quantities in order to enjoy benefits of economies of
scale.
 This makes price of Carrefour to offer products at lower price than other retailers.
 Carrefour uses different pricing concepts to get focus of the customers and compel a
purchasing behavior through discount strategies.
 They focused on the term “Always lows prices” and “Everyday low prices”; according to
this each product is offered at different discount prices based on the time and demand of
the hour.
Carrefour generally follows ‘low prices every day’ policy, but frequently switches between
a mixes of policies. Carrefour usually keeps a low price for the sensitive products i.e. the
products which are highly price elastic, non-sensitive products are reasonably priced and
imported products are priced very high. While the major portion of the revenue comes from

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the sale of Carrefour’s own brand products which are priced as per the demand. This gives
awareness about the pricing strategy in the marketing mix of Carrefour.
3.1.3 PLACE
 Carrefour has more than 12,000 stores operating in more than 30 countries in Europe,
America, Asia and Africa and Carrefour has8 store in Pakistan 2 in Karachi 3 in Lahore 1
in Islamabad and also 1 in Faisalabad. Carrefour ensured its presence in 19 countries and
has franchised stores in 20 other countries.
 In addition to the traditional format the group has developed a wide range formats to cater
to all kinds of shopping pattern, be it daily purchases, weekly hypermarket visits or bulk
buys by business customers.
 Carrefour makes sure that all its stores appear inviting via the use of attractive & modern
designs with different banners in every store. Such steps provide Carrefour a competitive
advantage and helps in increasing sales and market reach. As of June 2016, Carrefour has
1481 hypermarkets, 3462 Supermarkets, 7181 convenience stores and 171 Cash & Carry
stores.
 It sells both by brick and mortar i.e. traditional stores and Brick and click, which is called
e-commerce, formats. The average size of each Carrefour store is more than a 10,000
square feet.
3.1.4 PROMOTION
The promotional and advertising strategy in the Carrefour marketing strategy is as follows:

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IBM along with its partners developed an in-store promotion system for Carrefour’s supermarket
& hypermarket stores, that can be entirely operated by Carrefour and thus enabling them to plan
and execute more targeted campaigns and have feedback about how effective they were.
Carrefour, as a part of its Relationship Management Strategy launched “My CLUB” loyalty card
for its retail customers to achieve their loyalty and ensure customer retention. This card enables
customers to earn points on every purchase which can be redeemed in place of cash on their next
visit.
3.1.5 PEOPLE
Carrefour puts in a lot of effort and funds to train its existing employees not only to provide
excellent services to the customers but also to pass on their expertise and ultimately raise the
service standards. In addition to salaries, employees are offered various other facilities like-
medical benefits, supplementary pension scheme, profit-sharing schemes etc. Carrefour offers a
lot of options for the employees to enhance their skills and climb the ranks, like- individual training
paths and annual interviews.
3.1.6 PROCESS
Carrefour has streamlined its distribution and delivery by choosing the right store formats
as per the preference of its customers. The strategy of renovation of existing stores and
development of new stores for expansion has shown considerable impact in its financial report. In
addition to the brick and mortar stores, Carrefour’s online shopping portal has made shopping very
convenient and efficient for the customers.
3.1.7 PHYSICAL EVIDENCE
Carrefour constantly tries to update itself as per the preferences of its customers. It adapts
itself to the market (Urban or Rural), this is not restricted to the products only, and this extends to
lighting, furnishings, and additional services. For example: Carrefour rejuvenated Bairro
supermarkets in Brazil to provide a better shopping experience to its customers and renovated its
stores in Italy and Belgium to enhance the offering by using its design to seduce the customers.
Hence, this completes the Carrefour marketing mix.

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3.2 SWOT ANALYSIS OF CARREFOUR
3.2.1 STRENGTHS
The first step in SWOT analysis for retail entitles identifying certain strengths.
CARREFOUR has the basic strength of low prices with high quality, serving the customers with
a wide range of products, covering all business solutions under one roof named as CARREFOUR
and having the strong cash and carry business background.
Carrefour has very friendly and co-operative staff. It has computerized data base system which
helps both customer and CARREFOUR .There’s Cafeteria in the building for the refreshment of
customers.
One possible strength may include retailer's financial backing, meaning it has plenty of capital and
access to bank loans. Strength may be the retailer's cheaper wholesale prices. Moreover, the retail
company may offer unique products compared to other retailers. For example, a clothing store may
sell high quality but slightly defective clothing at a low rate. Whatever the case, a retailer should
make a list comprising of all its strengths vs. key competitors.
 Carrefour is the largest hypermarket chain in terms of size.
 Second Highest revenues in the retail industry after Wal-mart in world and 3rd highest
retail industry in Pakistan after Imtiaz and Metro cash and carry.
 Ranked third in terms of profit in the industry after Metro and Imtiaz.
 Large network of Discounts, grocery and convenience stores
 Employee base of approximate 10,000+ in Pakistan
 Selling number of products with its own brands.
 Strong brand in retail industry.

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 Operating in 4 major cities.
3.2.2 WEAKNESS
When reporting weaknesses, the Carrefour retail store or company should start with its most
palpable weaknesses. Carrefour may have discovered it has a weak brand image versus key
competitors. The Carrefour may also lack an identity. For instance, the store may sell cheap as
well as expensive brands. Carrefour should list all weaknesses, and then make improvements as
needed.
 Reduce operating expenses.
 Weak position in domestic level customer in Pakistan
 Labor relations.
 Taking too much time in establishing new stores.
 Not been able to attract middle class customers.
 Poor E-commerce performance.
3.2.3 OPPORTUNITIES
Another step in a retail SWOT analysis is to identify key opportunities in the market. Online
shopping is much better option for time saving and contracting with major hotels and restaurants.
There are infinite opportunities that a retailer may discover through both its sales force and market
research. Opportunities can include an unfilled consumer need, according to an online business
reference site. For instance, a small web design company may see an opportunity to add consulting
services, if it has customers that need it or a retail company may have the opportunity to purchase
a smaller retailer in order to increase market share.
 Joint ventures and acquisition for more expansion
 Discount stores development
 Improve sale performance
 Reduce operating cost
 Research and development required in marketing area for understanding the dynamics of
different segment.

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 Maintain better labor relations.
3.2.4 THREAT
A retailer can identify certain threats through a SWOT analysis. Threats can include a decrease
in consumer demand, a recession, price wars among key competitors, or even an increase in
competition. Even a change in shopping habits can be a major threat to a retailer.
 Threat from Imtiaz and Metro, who are bigger player than Carrefour.
 Rising competition from other discount stores in France and abroad.
 Rising Labor costs and Economic slowdown to increase costs.
 Strict government policies and taxation can affect global business of Carrefour.
3.3 PESTEL ANALYSIS
PESTEL Analysis is a strategic management tool that Carrefour managers can use to make better
decisions. PESTEL stands for – Political, Social, Economic, Technological, Environmental and
Legal factors that impact the macro environment of the organization that it operates in.
Carrefour operates in a dynamic environment where it is influenced by – regulatory framework,
collective social trends, technological changes, increasing environmental activism among
consumers, consumer spending behavior, increasing regulatory framework for environmental
factors, government decisions, and ever evolving legal system.
3.3.1 POLITICAL
The revenue and profitability of any retail store are affected by government policies. These
regulations impact the economy, consumer buying habits, and international trade laws. The only
thing left for the company to do about these changes is abide by them.

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Carrefour must be abide by the Pakistan’s political regulations. The regulations affect
which products can be imported, exported, and sold in stores. Stores offering food products must
comply with health guidelines proposed by the government. If they don’t, not only will the food
by pulled from the shelves, but it could also lead to legal troubles for the company.
Carrefour need to abide by the policies in the country too. In some cases, this can be
beneficial. But if the country’s political parties are fickle, it can easily turn into a problem.
3.3.2 ECONOMICAL
A stronger economy allows consumers to buy products they want. Rather than just buying
products they only need. It also means more investors are becoming interested in the profitability
offered by retail stores. This is only possible when the economy is on the rise.
When it’s on the decline, the opposite is true. People save their money for products of necessity.
They’ll spend the bare minimum on food while the rest goes towards unpaid bills. This can happen
when unemployment rates spike.
The retail industry was able to hold itself up even during the period of recession. It’s one of the
few industries who managed to scrape through. Currently, the economy of Pakistan is not in a great
spot for retail industries to expand. Customers have not more disposable income to spend on
frivolous products.
3.3.3 SOCIAL
Consumer preferences are the main social factors that affect the retail industry. For
instance, people enjoy buying products in bulk. This is the exact premise behind Carrefour. Here
you can find food products, clothing, and electronics, in large quantities.
Carrefour use market research to identify buying trends and shifts in consumer behavior.
Understanding these two things helps to find items more likely to boost profits.
Retailers who offer products online can collect data provided by their customers. They can easily
see which products people are buying, leaning towards, or completely ignoring. Then, they shape
their offerings based on this data. It’s a never-ending process.

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Carrefour set targeted ads to customers most likely to visit their stores and buy from them. Larger
retailers can achieve this easier than mom and pop shops. But even smaller shops can benefit from
offering discounts and sales on products. All consumers love a good deal.
However, if the economy is poor, it doesn’t matter how many products are offered. Because no
one can afford or justify the purchases unless the retail corporations react accordingly (cutting
prices), they’ll suffer profit loss.
3.3.4 TECHNOLOGICAL
Technological factors have grown all the more important for businesses in the 21st century.
Whether it is the online businesses or the traditional brick and mortar stores from marketing to
finance and HR everywhere technology has acquired a central role. It is equally important for
Carrefour.
From marketing to customer service and HR management as well as supply chain management
everywhere the use of technology has become important for effectiveness. Whether it is down its
supply chain or inside the stores, everywhere Carrefour is investing in technology to serve the
customers better and to improve the customers’ shopping experience. A lot depends upon real time
data and analytics. Brands like Carrefour are using data and IT in new ways to drive up sales and
profits.
3.3.5 ENVIRONMENTAL
Sustainability has become an important concern for all businesses globally. Even in the
retail sector business need to focus upon waste management, energy consumption, packaging as
well as several other related areas. Apart from these areas, Carrefour is also focusing on
responsible sourcing down the supply chain. Apart from that Carrefour is also targeting zero waste
and better packaging.
In the Pakistan more than 81% of the materials that flow through our stores, restaurants,
and distribution centers are being diverted from landfills. Environmental concerns are an important
focus because they are not just helping the brands manage better reputation but also with their
energy consumption and helping them to save on sourcing and other areas.

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3.3.6 LEGAL
There are several laws that the retail brands are required to remain compliant with.
Noncompliance can result in poor reputation as well as financial losses. In its history the largest
number of law suits that “Carrefour” has faced has been related to labor force.
From discrimination to low wages, several types of legal issues have continued to make
the situation difficult for Walmart. In the recent years, Carrefour has focused on making work
conditions better for its staff. Still, the labor related issues are far from being over for Carrefour.
Law is an important factor because legal pressures do not just result in loss of business but legal
challenges can also result in substantial fines and financial losses.

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CHAPTER 4
DATA ANALYSIS
4.1 TARGET MARKET
Our target market is
 Discount oriented singles and Families
 Working class
 House wives
 Quality and value oriented customers
4.2 MARKET SEGMENTATION
Carrefour has following segmentation strategies:
Demographic
They use demographic segmentation to divide them according to their ages, sex, education and
life style, income and social classes. As they are having all different kinds of brands so they
target different classes, ages and income rate consumers. People who are of upper classes visits
Metro store more than Carrefour. We can say 60% upper class /elite class visits Carrefour,
30% of the middle class visits and 10% lower class visits.
Geographic
They use geographic segmentation to divide the market into different units like continents,
cities, regions, countries and neighborhood by this segmentation they can take quick snapshot
of delimitated areas. They can also consider the climate differences between geographic units.
Psychographic
They use this segment of marketing to divide them according to their life styles, usage rate,
benefit sought, occasions and loyalty.

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4.3 SUGGESTED MARKETING MIX
4.3.1 PRODUCT
For Carrefour the market penetration and Product development are the two key directions.
The quality of the products should not be compromised.
Carrefour should enhance its product line according to domestic market. The products that are
selling in large quantities should not be shortened as per customers requirements. Short expiry
products should be sold first so that loss could be minimized. Carrefour should launch promotional
strategies for their own brand products in order to generate more and more profit. Quality of the
products should be maintained and additional features should be added for the customers. Product
branding and quality level should be established and intellectual property protection like patents
and trademarks should be obtained. Need of customers is an important key for market penetration.
4.3.2 PRICE
Carrefour should follow the pricing strategy of Markup Pricing along with Competitor base
Pricing. The prices should display inclusive and exclusive of taxes to facilitate and to create
awareness among retailers and professionals that they can get the tax credit on the resale of the
items which are purchased from Carrefour.
Carrefour is also following the Competitor base pricing because it is not working in lonely system
and its products are not unique so it has not only to follow the prices which are being charged by
the competitors but try to charge lower prices as compared to competitors.
4.3.3 PLACE
For Carrefour Place decisions are important in the aspect that poor location can result in
high transportation costs, insufficient supplies of raw materials and labor, loss of competitive
advantage and financial loss.
Right now Carrefour is located near Canal road, Faisalabad while Chase up is located on Satiana
road and Imtiaz Super Market is located on Skp road. While comprising Carrefour with Chase up

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and Imtiaz Super Market, Chase up and Imtiaz super market are located where there are lots of
targeted, potential customers. While Carrefour lacks potential customers than both of them.
Carrefour should be launched mainly in the areas where targeted customers are available like D-ground
etc.
4.3.4 PROMOTION
Carrefour promotes its product not intensive marketing campaign because their customers
are just retailers and professionals so they just opt that media sources which directly hit target
market.
They are promoting by the following ways
Billboards:
Carrefour places billboards at the outside of the store they should also place billboards in
different areas of the city as a promotional strategy.
Newspaper:
Carrefour should advertise in newspaper such as Jang and The Nation to create awareness
to the customers.
Catalogues:
Carrefour should provide products and new offers catalogue not only at the stores but
also mail it to the customers and members.
Personal selling:
Carrefour should hire staff who visits professionals to convince them and create interest
to purchase products for the use of their business. Meanwhile the staff is not well trained and a bit
ill mannered. The staff should be well trained in order to satisfy customer’s needs.

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4.3.5 PEOPLE
It is mainly the employees of the firm who are the face of the organization and they translate
the quality in service. In people there are two variants; firstly there are employees of the brand.
The behavioral attitudes of the employees should be cooperative with the customers. Because for
the customer, that employee of your brand is the company. For the improvements of those
representatives of your brand the things that should be considered are;
Seminars should be arranged for the improvements of their selling skills and behavior with
customers.
The recruitment should be done on the basis of merit and professionalism not on the basis of less
salaried agreement.
Because all the marketing activities are done for the people to bring them in the store, once people
are in the store, the rest is upto the employees that how they treat and greet the customers and to
identify that which is a potential customer and which is not. The employees should be trained on
the aspect of not letting the customer to leave the store unless they buy their desired product.
And to make this aspect possible, the employees should be awarded incentives on the basis of their
sale record regardless of their basic salary. Adding on, the potential customers visiting the store
should be asked about the behavior of selling staff, get remarks and suggestions for improvements.

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4.3.6 PROCESS
This element comprises all activities and services in which people involved play an
important role. The process that is followed by Carrefour is almost like the global superstores, but
as they say that “There is always room for improvement” some suggestions should be followed.
Online portal for enhanced experience of shopping should be created for the customers making
their life easier.

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Not much processing errors are there as it is an international chain following all the international
standards.
4.3.7 PHYSICAL EVIDENCE
In Carrefour Faisalabad, the proximity to the customers is easy.
Everything you need is so reachable and easy in access. But the point of suggestions is that there
is everything so close that it confuses the customers to reach to a specific product takes time.
The space should’ve been added to make this thing possible that everything should be available
on different places or floors so that customers can easily roam about and judge things easily.

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CHAPTER 5
CONCLUSIONS
5.1 CONCLUSIONS
 It has become the leading retailing store of Pakistan.
 Due to Product variety, shelving, display, marketing and business plans, we can concluded
that Carrefour is one stop shopping place.
 It fulfills all needs of customer and gives a high degree of satisfaction.
 Pricing strategy is high as compared to imtiaz and metro and it is due to freight cost and
other cost that other retailers don’t bear.
 Staff behavior is somehow aggressive as compared to metro, chase up and imtiaz. After
some words with the franchise manager, he said that we are working on it.
 Competition is comparatively due to multiple options for its target market.

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5.2 RECOMMENDATIONS
 Since Carrefour’s first entry into Pakistan its strategies are more aggressive, therefore there
expansion and development is not as rapid and fluent as Imtiaz and Metro.
 Due to its slow and aggressive expansion Carrefour neglect some important issues.
 The most important one is that Carrefour needs to pay some attention on the relationship
with customers and suppliers.
 In comparison with Imtiaz and Metro, Carrefour received more complaints from customers
and suppliers, and also received warning from government.
 The prices of products there in Carrefour are widely considered to be much expensive than
other retail stores like Imtiaz and Metro, the customer services are also vital for survival of
a retailer.
 In addition to this, Carrefour always reaps great profits from suppliers, and hence suppliers
can obtain a small profit margin.
 Thus it is dangerous for Carrefour if these suppliers leave and stop supplying in the future
especially when other stores have a stronger buying power.
 Carrefour needs to focus on its long-term development and plan strategies to create values
resources in order to achieve competitive advantages. For example, having an integrated
supplier network for its sourcing and distribution centers should be more important than
opening more and more new stores.
 Empowered purchasing and distribution rights and management hinder the delivery quality
of goods, which is critically important for retailers.
 In addition, Carrefour should develop advanced information systems on communicating
with suppliers and stocking, which will save significant costs and benefit Carrefour’s stock
management in the long-term.
 To increase the awareness, Carrefour needs to adopt a new marketing strategy. Mobile
billboard advertising, street advertising should be used to make the customers aware of the
latest happenings in Carrefour.
 They should open more famous restaurant inside Carrefour
 Carrefour should discover more sales promotions to attract customers.
 They need to increase advertisement in TV to attract more customer.

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 They need to attract workers that they have many languages to communicate with
customer.
 There should be a survey done every quarter and accordingly, for developing customer
friendly promotion.

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1. Afande, F. O. and John, K. (2005), Factors Affecting Customer Loyalty of
Supermarkets in Nyeri Town, Kenya, Journal of Marketing and Consumer
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2. Basavaraj, S. and Shivashankar, K. (2017), “Brand Image and Trust on Customers
Loyalty: A Study on Private Label Brands in Hubli-Dharwad Conglomerate City of
Karnataka”,International Journal of Engineering Research and Applications, 7(9): 1–
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3. Bowen, J. and Chen, S. (2001), The relationship between customer loyalty and
customer satisfaction, International Journal of Contemporary Hospitality
Management, 13(5):213-217.
4. Dick, A.S. and Basu, K. (1994), Customer loyalty: Toward an integrated conceptual
framework, Journal of the Academy of Marketing Science, 22:99-113.
5. Dudu, O. F. and Agwu M. E. (2014), A Review of The Effect of Pricing Strategies on
The Purchase of Consumer Goods, International Journal of Research in Management,
Science & Technology, 2(2):88-102
6. Ardhanari M, Hadiwidjojo D, Rahayu M, and Rohman F (2013),Consumer
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Behavior. International Organization of Scientific Research - Journal of Business and
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7. Carrefour. 2013. Registration Document 2013 Annual Financial Report.
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8. Anhar, S. M. (2014), The Impact of Relationship Marketing on Customer Loyalty at
Tesco Plc, UK, European Journal of Business and Management, 6(3):21-55
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