Global Marketing Strategy of Carrefour in Malaysia

Global Marketing Strategy Carrefour is one of the hypermarket that offers a wild range of products such as grocery product, clothing, consumer goods and household appliances besides these commodity products, It is able to satisfy all of the customers’ need in only one trip. On the other hands, Carrefour offers some healthy product such as organic products for health-conscious customers. In its operation, Carrefour adhere to the concept of “fresh quality product at discounted price and direct from producer to customer” (Kamath & Godin, 2001).

Carrefour identifies all fresh products that supply from its vendors base on the Carrefour Control Line (CCL). Carrefour Control Line (CLL) is a pioneering sustainable development approach that Carrefour use to meet customer expectations of quality by control the safely, quality and authentic of fresh products, maintain long-term relationships with producers and respect for environment. Producers are required to comply with set of related specifications, such as ban on chemical treatments after harvesting.

As Carrefour is a first mover to open the hypermarket in the Asia; they were lack of information about Asian’s custom, culture and preference. Thus, Carrefour choose to formed the partnerships or joint venture with local retail companies in each Asia countries in order to gain local knowledge of products, customers’ preferences, taste, brand perception. For example: In the year of 1994, Carrefour was formed a partnership with Magnificent Diagraph Sdn Bhd in order to smoothest their business in Malaysia (Kamath & Godin, 2001).

Besides acquire important information of target market, Carrefour is able to identify the potential suppliers and build up vendor relationship with them at the same time. Carrefour is also innovated private label products which called “produits libres” since 1976 (Butz, No date). Private label product refers to product that offers by a retailer under its own brand name. Carrefour offer private label products with low price but high quality in order to provide greater choice for customers. Private label products in Malaysia market include mineral water, detergent, toiletries, cooking oil, tomato and chili sauces, beverage, snack and so on.

Carrefour launched the private label products in order to target cost-conscious customers in Malaysia market during the period of inflation. Furthermore, Carrefour created one brand which is different with its own name such as “Harmonie”. Harmonie is a Carrefour’s brand that specializes in fabric. Carrefour has create one slogan which is “poor people need lower prices while rich people love low prices” in order to attract all type of income groups (Butz, No date). The pricing strategy that adopt by Carrefour is aggressive low price policy (the lowest prices every day).

This pricing strategy is able to increase customer’s purchasing power and encourage them to buy more in Carrefour. The price of private label products that produce by Carrefour will be 20% lower compare to other product which purchased from suppliers (Nistorescu & Puiu, No date) . It was aim to target lower income groups and give alternative of substitute product for other customers. According to a survey by The Nielsen Co, The demand of the private label product of local hypermarket or supermarket is growing in Malaysia market during the year of 2009 since more consumers attempt to increase purchase power.

Carrefour is one of the hypermarkets that benefit from its own private label products (Kam, 2008). One of the promotional strategies that Carrefour uses in Malaysia is place the advertisement on television and newspaper (Anonymous, 2009). It is effective way to help Carrefour to spread out the information about promotions or events that held in its stores to wide audiences. Besides that, Carrefour prints a lot of leaflets and distribute to the nearby settlements or housing areas (Anonymous, 2009). It is more cheaper way to promote its variety types of products with detail information such as price, percentage of discount and available date.

Carrefour also provides the PDF version catalogues on its website. Customers can get to know the latest promotion and sale that offer by Carrefour on any time and any place. Moreover, Carrefour also having a lot of event or fair in order to attract more customers in Malaysia such as Goaaal With Carrefour, Carrefour Malaysia 2010 Japanese Fair and Carrefour-Wine-Fair, Carrefour Xmas Fair, Beauty Fair and so on (Anonymous, 2010). There are three type of Carrefour distribution channel in Malaysia which is hypermarket, supermarket and convenience stores.

Hypermarket provides an extraordinary diversity of products under the concept of “everything –under-one-roof” (Butz, No date). Carrefour normally will choose the site that are “located in the center of broad catchment areas” (out of town location) as location for hypermarket. It is because Carrefour can cut down the higher cost of choosing the location in urban area and it is more easily accessible for vehicles (Butz, No date). The convince stores in Malaysia is called “Express Store”, it has only 10% of total floor space of the hypermarket and it sell more types of Carrefour brand products in the store (Hee, E, 2009).

In Malaysia, Carrefour comply the local food regulation and requirement by display all “Halal” products within its stores but separate “Non-Halal” products outside its catchment zone and clearly label the alcohol content on all alcoholic beverage as reference for customers (Michael A, Hitt, R, Duane Ireland, Robert E, & Hoskisson, 2009). By using this distribution system, Carrefour able to increase the satisfaction of the Islamic customers and they will have more willingness to buy their daily needs in Carrefour hypermarket or express stores. Besides that, Carrefour can able cater to the larger ethic Chinese customers in Malaysia market.

Leave a Reply

Your email address will not be published. Required fields are marked *