Slide 1: Building the Carrefour brand
Building the Carrefour brand
Slide 2: Building the Carrefour brand - Agenda
Building the Carrefour brand - Agenda 1. Focusing on the Carrefour brand The brand portfolio post merger was confusing and inconsistent The brand has a crucial role in the economic model and the relationship with the customer The brand guarantees for each product the values of the company 2. Evolvin
Slide 3: In 2000, Carrefour inherited a confusing and inconsistent brand portfolio
In 2000, Carrefour inherited a confusing and inconsistent brand portfolio GENERAL CONSUMER FOOD BEAUTY APPAREL MERCHANDISE ELECTRONICS Specific ranges Core market Entry level 27
Slide 4: In 2005, own label already had a strong role in the commercial and economic model of retailers
In 2005, own label already had a strong role in the commercial and economic model of retailers Own label % of sales in 2005 Customer trends 2005 Total market Carrefour % households Annual budget (€) Annual frequency (HM+SM+ purchasing of purchase convenience+HD) own label 53 28,6% 27.9% 98,2 99,7 43
Slide 5: In 2005, customer perception of own label improved in general even as it declined for Carrefour
In 2005, customer perception of own label improved in general even as it declined for Carrefour The customer increasingly recognised the attractions of own label Less than 30% of customers believed that national brands had an advantage over own label (a 4 percentage points drop since 2000) While Car
Slide 6: The game has been to develop a true Carrefour brand
The game has been to develop a true Carrefour brand … capitalising on the banner’s brand name, unlike most French retailers A brand at the heart Products with of the product the Carrefour name Generic products at Carrefour 1985 2005 1976 30
Slide 7: Translating the values of the banner to products under the Carrefour brand
Translating the values of the banner to products under the Carrefour brand An every day commitment: making accessible all levels of quality for all our products, always guaranteeing the lowest prices Quality Respect Choice Progress Freedom / Confidence in Quality for everyone Individualising the the
Slide 8: Building the Carrefour brand - Agenda
Building the Carrefour brand - Agenda 1. Focusing on the Carrefour brand The brand portfolio post merger was confusing and inconsistent The brand has a crucial role in the economic model and the relationship with the customer The brand guarantees for each product the values of the company 2. Evolvin
Slide 9: Evolving from a brand project to brand management
Evolving from a brand « project » to brand management 2005: Creation of a brand development team with 8 brand managers (not category heads) covering food non-food services Objective: to bring a cross function vision to merchandising which allows us to develop products with our suppliers Presenting o
Slide 10: First step: Clarifying the portfolio around the Carrefour brand
First step: Clarifying the portfolio around the Carrefour brand GENERAL CONSUMER DRY FRESH MERCHANDISE ELECTRONICS SERVICES APPAREL < Premium Premium < Including ranges with specific targets • Baby Exotic Core Core • Kids • Home market market • Cosmetics • Christmas • Men • Topbike • Light Entry Ent
Slide 11: Second step: Refocusing No.1 on core products
Second step: Refocusing N 1 on core products Positioning: Products which are indispensable, used daily, of a satisfactory quality, and the cheapest in market, for those who are always or sometimes looking to manage their budget Competition: Goal: cheapest prices while respecting quality Action Plan:
Slide 12: Third step: Repositioning more than 15,000 products in 3 years
Third step: Repositioning more than 15 000 products in 3 years Positioning: Tasty, varied, practical, reliable products which meet customers daily needs and wants, capitalizing on Carrefour’s know-how and commitment, at the best price Action Plan: Repositioning more than 17 500 products, in terms of
Slide 13: Fourth step: Broadening the core market with targeted ranges
Fourth step: Broadening the core market with targeted ranges Carrefour Baby Food range, hygiene, perfumery, childcare products, toys, apparel developed under the advice of a committee of pediatricians and specialists, in order to guarantee the baby’s development from 0 to 36 months with security and
Slide 14: Fifth step: Differentiating non-food
Fifth step: Differentiating non-food Carrefour Home Positioning: Products designed to completely furnish a house, with each style of product found in general merchandise, consumer electronics, and apparel, with a permanent range supplemented by seasonal ranges. Action Plan: 3 « Carrefour Home » coll
Slide 15: Fifth step: Differentiating non-food (Carrefour Christmas)
Fifth step: Differentiating non-food Carrefour Christmas Positioning: A large range of seasonal products, designed to decorate the house and the Christmas table. Certain styles are coordinated with the Carrefour Home range Actions Plan: Choice of 6 styles, developed across Christmas tree decorations
Slide 16: Fifth step: Differentiating non-food (TeX)
Fifth step: Differentiating non-food TeX Positioning : A more modern brand organised around 5 ranges, Baby, Girls and Boys, Women, Men, and Household, combining know-how of materials, colours and designer brands for seasonal products Action Plan: To position Tex more as a fashion brand combining wom
Slide 17: Sixth step: developing the range Carrefour Agir
Sixth step: developing the range Carrefour Agir Positioning: Products developed with the values of sustainable development in mind, endorsed by recognised third parties, at an accessible price, for those who value solidarity with causes that they hold dear Action Plan: To make the brand visible acro
Slide 18: Seventh step: developing the Premium range
Seventh step: developing the Premium range Positioning: Top of the range products, of which the recipes, the style, the composition, and the packaging are original and modern, with a price point which allows customers to buy them regularly Action Plan: To improve the existing offer and differentiate
Slide 19: Eighth step: Launching an ambitious plan of innovations over the next three years
Eighth step: Launching an ambitious plan of innovations over the next three years Over the three years between 2005 and 2008, the objective is to launch around 4,000 new products under the Carrefour own label / Tex / and Reflets de France, (equivalent to tripling the average number of innovations be
Slide 20: Ninth step: Placing the brand at the centre of the commercial offer
Ninth step: Placing the brand at the centre of the commercial offer Promotions that increase brand value Strong promotions highlighting own label Thematic seasonal ranges, explaining the ranges More in-store theatre In-store campaigns More than 10 000 days of campaigns in 2006 to explain 3 ranges (C
Slide 21: Tenth step: Communicating the brand
Tenth step: Communicating the brand Promotional offers by Carrefour on the radio, in the press, and on billboards: In 2006, in press + on billboards, a campaign developing three key messages of the Carrefour brand: A campaign on the quality and accessibility of the Carrefour brand The commitment of
Slide 22: Building the Carrefour brand - Agenda
Building the Carrefour brand - Agenda 1. Focusing on the Carrefour brand The brand portfolio post merger was confusing and inconsistent The brand has a crucial role in the economic model and the relationship with the customer The brand guarantees for each product the values of the company 2. Evolvin
Slide 23: Objectives – sales and margin mix
Objectives – sales and margin mix Interbrand – Classement 2006l Objective: to achieve at least €5 bn of sales in 2008: With an increase of close to 6% per annum, own label sales are growing three times faster than the rest of the offer Leveraging scale through sales growth: potential to differentiat
Slide 24: First results – customer perception
First results – customer perception Customer perception of own label quality 2007 Carrefour is a leader according to customers with 35,5 regards to the perception of quality of the Carrefour own label, an item measured since 2006 26,5 26,5 25 Carrefour has made progress on the two other indicators:
Slide 25: First results: a strong draw for new customers
First results: a strong draw for new customers Ent ry price 50,0 The greatest gaps in perception between Loyalt y card 40,0 Qualit y/ Own label price clients and non-clients 30,0 20,0 are in : 10 , 0 Qualit y/ Quality of the Own label qualit y 0,0 Freshness - 10 , 0 Carrefour brand -20, 0 Services -
Slide 26: Building the Carrefour brand - Agenda
Building the Carrefour brand - Agenda 1. Focusing on the Carrefour brand The brand portfolio post merger was confusing and inconsistent The brand has a crucial role in the economic model and the relationship with the customer The brand guarantees for each product the values of the company 2. Evolvin
Slide 27: Positioning the brand at the heart of our customer relationship and commercial model
Positioning the brand at the heart of our customer relationship and commercial model After the initiatives launched in 2005, Carrefour own label is ready to play the role of a true brand, recognised for its quality, its commitments, and its accessibility to the customer, (not simply a copy or an alt