This document provides an overview and analysis of Lulu Hypermarket, a UAE-based retail chain. It outlines Lulu's vision, mission, strengths, weaknesses, opportunities and threats in a SWOT analysis. It also analyzes Lulu's brand positioning, marketing mix including the 7Ps, segmentation strategy using the 3Vs, and compares Lulu to competitors like Carrefour, Choithrams and Spinneys. Recommendations are provided such as expanding product categories and own brands, improving customer relationship management, and promoting customer loyalty programs.
2. TABLE OF CONTENTS
• IN TR OD U C TION
• R ESEA R C H OBJ EC TIV E
• SWOT A N A LY SIS
• BR A N D POSITION IN G
• M A R KETIN G M IX
• COMPARATIVE ANALYSIS
S p in n ey s
C a rref o u r
C h o it h ra ms
• RECOMMENDATIONS
3. About LULU
Industry Retail
Founded Late 1990s
Headquarters Abu Dhabi ,UAE
Number of locations 117 stores
Area served Middle east, Asia, Africa
Key people M. A. Yousuf Ali (Managing Director)
Revenue $5 billion (2014)
Parent LuLu Group International
Slogan "Where the world comes to shop!"
Website luluhypermarket.com
4. VISION
To become a truly global retail
brand by retaining our No.1
position in the organized retail
sector of the regions strive to be
the most preferred employer for
and current and future multi-
ethnic employees
5. MISSION
To provide a unique shopping
experience to the customers with
unmatched quality in terms of
products & services, while
continuously exploring new
market opportunities and
adding value to all the business
associates.
6. RESEARCH OBJECTIVE
To gain insight into Lulu Hypermarket, &
compare the brand to its competitors w.r.t the
customer satisfaction in the GCC retail market
7. Strengths
32% GCC Market Share
Good Quality and large variety
Brand Loyalty - Old Chain
Fastest Growing Retailer in GCC - Deloitte Survey
Multiple CSR Initiatives
Weaknesses
Lack of Qualified/Trained Staff
Neglected Customer Feedback - Poor CRM
Opportunities
Global Expansion – UK-logistics, East Asia(Malaysia,
Indonesia), GCC
Own Label Products
Health Conscious Customers
Customer Loyalty Programs and Collaboration with Banks
Social Media Marketing
Threats
Competitors - International Mass Grocery Retailers
Political Instability
Loss of Reputation due to poor CRM
SWOT
10. Lulu Hypermarket – “Where the World comes to
Shop”
• Sprawling parking spaces, play areas for children, food court, money
exchange and bank counters
• Panoply of international and regional brands
• One stop shop for all home needs.
Justifying its tagline - "LuLu, where the world comes to shop”.
• CSR – multiple large scale initiatives.
• Large Network - Oman, Qatar, Kuwait, Bahrain, Yemen, Egypt, Saudi
Arabia and India.
BRAND POSITIONING
12. 7 P’s
PRICE
Competitive Prices
PRODUCT
Convenience Stores
PROMOTION
Advertising, Social Presence, PR, CSE
PLACE
Physical and Online Store. All across GCC
PROCESS
Supply Chain, Inventory Management
PEOPLE
Employees, Customer Service, Culture-CSR
PHYSICAL EVIDENCE
Online Reviews, Recommendations, Additional
Facilities
LAUTERBORN’S 4 C’S
CONSUMER
Variety, Assurance, Quality
COST
Total value to customer – Travelling, Method Of
Payment, time invested
COMMUNICATION
Direct, Private chat on website, social media
response
CONVENIENCE
e-retail website, unique pick-away service, large
presence.
3 V’s
SEGMENT
General coverage includes the native
demographics- all except blue collar workers,
with emphasis on Indian population
PROPOSITON
Variety, Quality and Availability
NETWORK
Physical stores, now aided by online options as
well
13. COMPARATIVE ANALYSIS
CARREFOUR
Started operations in France, 1958.
Among the largest- 1,452 hypermarkets at the end of
2011
Major Competition to Lulu Hypermarket.
Large reach - Europe, Argentina, Bahrain, Brazil,
China, Dominican Republic, Iran, United Arab
Emirates, Qatar, Lebanon, Kuwait and Saudi Arabia
CHOITHRAMS
Came to UAE in 1974
More than 33 supermarkets in the emirates.
Expansion into Oman, Bahrain and Qatar
Wholesaling, Commodity Brokerage, and
Manufacturing of edible and non-edible
items
SPINNEYS
Premium supermarket retailer in the Middle East.
Started operations in Egypt in 1924.
30 Spinneys stores in the UAE
Plans aggressive expansion across the Middle East,
North Africa and South Asia.
Low market presence as of now. Hardly any Social
Media presence
17. Recommendations
• Expansion to other countries
• Promote Own Label Products
• Enter into the organic and private label segments
• Train staff better and provide better CRM
• Expand ready to eat and baked food section
• Continue with the same segmentation strategy
• Continue with Social Media marketing
• Market CSR projects better
• Customer Loyalty programs should be promoted more