Marketing Plan for Carrefour Bakery: UAE Retail Market Analysis Report

This report provides a detailed marketing plan for Carrefour Bakery, focusing on its operations in the UAE retail market. It begins with an introduction to Carrefour S.A. and its expansion into the UAE, highlighting its commitment to social and environmental responsibility. The report then analyzes the competitive landscape using Porter's Five Forces, assessing the intensity of rivalry, bargaining power of buyers and suppliers, threats of substitutes, and new entrants. It identifies key competitors like LuLu Hypermarket and Spinneys. The marketing goals for a new product, a cream-filled donut, are defined, including revenue growth, market share expansion, and customer targeting. Two pricing strategies, premium and economy pricing, are analyzed. The report also includes customer analysis and retail strategy. The analysis shows how Carrefour can leverage its brand and adapt to the competitive environment. The report targets students seeking insights into retail marketing strategies and market analysis.

Running head: MARKETING PLAN FOR CARREFOUR BAKERY
MARKETING PLAN FOR CARREFOUR BAKERY
Name of the Student
Name of the University
Author Note

1MARKETING PLAN FOR CARREFOUR BAKERY
Table of Contents
1.Introduction.................................................................................................................2
2.Analysis of competition..............................................................................................2
Porter’s five forces analysis of the retail industry in UAE........................................3
3.Marketing goals for product or service.......................................................................5
4.Analysis of pricing methods........................................................................................6
5.Customer analysis.......................................................................................................8
6.Retail strategy for the product.....................................................................................9
References....................................................................................................................12

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1.Introduction
Carrefour S.A. is a multinational retailer which has its origins in France and the
headquarter of the organization is located in Boulogne Billancourt. The organization has
largest chain hypermarkets in the world which consists of 12,300 self-service based shops.
The hypermarket chain has its operations in greater than 30 countries which are located in
America, Africa, Asia and Europe. The first shop of the organization opened in the year 1960
within the suburban Annecy near the crossroads. The Carrefour Group is considered to be the
first in Europe to have started a hypermarket store, a departmental store and a large
supermarket within the same area. The store also has its operations in the United Arab
Emirates which will be the major focus of discussion in the analysis. The operations of the
Carrefour Group were started in UAE with the partnership of an organization named Majid
Al Futtaim Retail Group. The organization believes in conducting its operations in a social
and environmentally responsible manner. The company is a participant in the key initiatives
that have been taken by the Carrefour Group and are pioneered by Majid Al Futtaim Retail.
The Carrefour Group conducts its business activities by reducing the footprint that the
operations of the organization have on the environment. The company is believed to be an
active contributor in maintaining the environment conservation and the ecological balance as
well. The Carrefour Group has many exclusive brands which have been able to acquire high
levels of credibility and trust so that a suite of products can be developed. The price and the
quality of products have exceeded the expectations of the customers. The products that are
offered by the organization are traceable and famous in the industry. The various French
products are brought together by Carrefour Group and high trust levels are built among the
customers.

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2.Analysis of competition
The operations of Carrefour hypermarket were expanded in UAE in the year 1995.
The company had been quite conscious about the expansion related policies in the various
emerging countries. The organization saw huge potential in the market of Dubai, UAE. The
retail industry of the Emirate was flourishing and the economy of the country was also found
to be strong. The major objective of the organization in this case was to find an entry mode in
the country which can be helpful in reducing the risks that are related to the failure of the
organization in the market (Armstrong et al. 2014).
Porter’s five forces analysis of the retail industry in UAE
The Porter’s Five Forces model is useful for the analysis of the competitive
environment of an organization. The model provides a close look of the competition that is
faced by the organizations in the market and the various barriers related to entry that are
faced by them. The bakery industry shows that the barriers to entry of the new organizations
in the market is quite low. The process of production is also quite easy and the ingredients
can also be accessed in an easier manner (Atwong 2015). The model will be used in this
discussion for analysing competitive environment of Carrefour Bakery which is a major part
of the Carrefour Group in UAE. The major forces of the Porter’s model are as follows,
Intensity of the competitive rivalry – Carrefour Group has to face intense
competition in the retail sector of Dubai. The major reason being the presence of large of
number of organizations already operating in the sector. The various factors that affect the
revenues of Carrefour in the Dubai retail market are related to the large number of firms, the
large variety of products that are offered by the firms and the high levels of aggressiveness of
the various firms that operate in the retail market which operate in the market. Carrefour
Group experiences huge competition from organizations like Walmart, LuLu Hypermarket,

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Spinneys and Choithrams. These organizations have provided tough competition to the
operations of Carrefour group in UAE (Blackburn, Hart and Wainwright 2013).
Bargaining power of the buyers – The power of the buyers in the retail based sector
of UAE is quite high. The country has a strong and flourishing economy which has caused
huge pressure on the revenues of the group. The population of the buyers in Dubai retail
sector is high. This is a strong force that affects the revenues and the profitability of the
Carrefour Group due to the discounts that need to be provided to the customers. The
individual purchases of the customers are quite low which is a weak force that affects the
profitability of Carrefour Group. The buyers of the bakery group are also quite high as there
are a large of small organizations which offer the same kind of products (Challagalla, Murtha
and Jaworski 2014).
Bargaining power of the suppliers – The bargaining related power of the suppliers
are low as the organizations have huge number of suppliers in the industry. The bakery
related products of the group are also provided by many suppliers. The large number of
suppliers in the market and their levels of rivalry have a positive effect on the prices that are
decided by the organizations. The suppliers of Carrefour Group are not able to exert pressure
on the organization related to the raw materials that are required for production. The stronger
suppliers are however capable of providing pressure on the revenues of the organization
based on the cost of the raw materials that are provided by them (Chandra 2016).
Threats related to the substitutes in the market – The variety of goods that are
offered by the Carrefour Group and the Carrefour Bakery are huge. This factor reduces the
force that is created by the substitutes of the products that are offered to the customers. Some
of the substitutes of the products that are offered by Carrefour Group are however provided

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by the other organizations in the retail sector of UAE. The force that is experienced by the
Carrefour Group in the retail market from the substitutes is therefore low (Fine 2017).
Threats related to the entry of new organizations- The threat that has been faced
by Carrefour Group in the retail market of UAE related to the entry of new companies in the
market is high. The major reason behind this factor is that the barriers related to entry of the
organizations are low. The new firms are easily able to enter the market and capture a share
of that sector. The low costs that are related to conducting business in these areas has reduced
the barriers that are faced by the organizations. Carrefour Group has to face the costs that are
related to the formation of its brand in the market to face the competition from the new
entries (Garoufallou et al. 2013).
The two organizations which will be targeted by the new product of Carrefour Group
is Spinneys and LuLu Hypermarket. These organizations are providing huge competition to
Carrefour Group and are considered to be the top three in the country based on the revenues
that are earned by them.
The major marketing strategy of LuLu Hypermarket was opening the first
hypermarket in Dubai. The organization provides a much more opportunities to the customers
than a mere shopping place.
The brand of Spinneys has been built by the changes that have occurred in the
expectations of the customers. The store works on the strategy offering fresh products to the
customers (Kaur 2016).
The two organizations which will not be targeted by the new products of Carrefour
Group is mainly Awok and Techlink. The reason behind this choice is that the companies

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operate only on the online platforms which is not a target area of the product that is being
offered by the organization.
3.Marketing goals for product or service
The marketing goals need to fit into or further support the overall goals of the
business. the marketing goals need to be measurable in nature and the marketing plan mainly
provides actions that are used for achieving the goals (Kotler 2015). The marketing related
goals of the organizations are related to the achievement of the various objectives like,
 Increasing the sales.
 Building the awareness of the brand.
 Growing the share of the market.
 Launching the new services and products.
 Targeting the new customers.
 Entering the new markets locally and internationally as well.
 Improving the stakeholder relationships.
 Enhancing the relationships with the customers (Lee et al. 2013).
The setting up of marketing goals is related to the proper division and allocation of
time and money for the achievement of the various marketing goals. The marketing goals that
has been set for the launch of the new product of Carrefour Group are as follows,
 Increasing the revenues of the organization.
 Providing new services or products to the customers.
 Improving the existing product line of the organization.
 Targeting customers from the premium and the economic segment of the
customers.

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 Achieving at least 10% growth in the market within the next five years
(Magrath and McCormick 2013).
4.Analysis of pricing methods
The product that is being introduced in the existing product line of the Carrefour
Bakery is a Cream-filled Donut”. The product will be offered in different varieties and
different types of flavours. The variety of the products will contain high priced and low
priced items. The bakery will offer the donuts in various shapes and sizes to address the
different needs of the customers of the organization. The huge variety of the donuts can
further help in satisfying the needs of the customers belonging to the different groups and
areas of the industry (McDonald and Wilson 2016). The two different pricing strategies that
can be implemented for the purpose of deciding the prices of the new product and its varieties
are as follows,
Pricing at premium rates – The premium pricing related strategy relates to the
process by which the organization is able to set the price of the product that is
unique in nature. This pricing process is effective for the new product as it is
in the early stages of the entire life cycle of the products. The high quality of
the product enables the customers to have good perceptions related to the
products that are offered to them. The marketing related efforts of the
organization also need to be effective and the packaging needs to be premium
in nature (McDONALD 2016).
Economy pricing policy – The process of economy pricing can be used by
Carrefour Group to target the customers who ae concerned about the prices
that are offered to the customers. The strategy enables the business to
minimize the costs that are related to the production. This helps the company

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to set low prices for the products so that the price conscious customers. The
customers can thereby purchase the products without any frills. The economy
pricing policy can help the retail organizations to gain high amounts of profit
in the industry. This policy further helps the company to provide high levels of
discounts to the loyal customers. The Carrefour Bakery can further offer the
cheaper variety of products to the customers who are quite conscious about the
prices. These products can be provided at discounted rates to the customers
(Mistilis, Buhalis and Gretzel 2014).
The advantages that are related to the premium pricing policy is based on the high
quality based perceptions that are provided to the premium customers who are more
concerned about the quality as compared to the prices. On the other hand, in case of the new
products the high prices can cause a lack of revenues of the organization in case of creating a
huge customer base.
The advantages of economy pricing are related to attracting huge number of
customers towards the products that are offered to the customers. The drawback in the other
hand is related to the association of the products with lower quality (Naeem, Bilal and Naz
2013).
The price that has been decided for the premium range of products is around 20 AED.
On the other hand, the prices that have been decided for the economy range of products range
from 5 AED to 15 AED. The prices that have been set for the various range of products will
enable the organization to gain high levels of profit with the help of huge customer base that
will be gained by the company in the process. The projected outcome of the entire operations
of the organization and the supply of the new products will thereby help in increasing the
market share of Carrefour Group in the retail industry.

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5.Customer analysis
Segmentation of the market can be done with the help of the following processes,
Psychographic segmentation – The lifestyle of the consumers which include
the people who belong to the premium group who are more concerned about
the quality of the products. The personality of the consumers belonging to this
group are also related to the choice of the products that they wish to prefer.
The premium customers belong to the high social class and further the
products can be able to represent the status that they hold in the society. The
lifestyle of people who belong to economy group of people are more
concerned about the prices of the products as compared to the quality of the
products. The personality of the customers and their social class also affects
the choice of products (Paley 2017).
Behavioural segmentation – The process that is followed by the consumers for
taking the buying decision related to the product is a part of this segmentation
process. The premium customers have a different behaviour towards the
products as compared to the customers who are a part of the economy based
group. The buying decision is taken by the customers with the help of the
behaviour that they have while purchasing the product.
Demographic segmentation – The age, ethnicity, gender, neighbourhood and
the dwelling classification of the customers help in deciding the purchase
related process of the customers. The age of the customers is a major factor
related to the purchases that are made in the retail market. The bakery industry
is also related to the age of the consumers who visit the stores (Quinton and
Fennemore 2013).

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The best target segment that of the market with the help of the products that the
organization is planning to introduce in the market are the consumers who belong to the age
group of 25 to 35 years of age. The middle to high income group of people are the major
target segment for the Carrefour Bakery. The products that are being introduced by the
company in the market will be mainly used and consumed by the consumers who belong to
this group.
6.Retail strategy for the product
The retail marketing implementation based strategy are the various procedures that
are undertaken by a retail business to sell the products to the customers. The retail
implementation strategy of the organizations is based on the four factors which are, price,
product, promotion and place. These factors are related to the controlling of the financial
profits that are made by the business organizations in the industry. The marketing mix of the
retail implementation of the company are as follows,
Product – The Carrefour Group is a leading retail store in the international
market. The stores offer products to the customers so that the different needs
and demands can be solved easily. The hypermarkets of the organization are a
major shopping destination for people belonging to different age groups. The
new product namely, cream filled donut will be offered in the bakeries of the
organization. The products will be provided to the customers with the help of
multiple channels (Paley 2017).
Prices – The Carrefour Group mainly follows the strategy of providing the
products at the lowest prices each day. The sensitive products that are offered
by the group are low priced. The insensitive products are offered at higher
prices. The main portion of the revenues of the company are gained from the

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brand products which are high priced. The prices of the products are thereby
kept at different ranges which include the premium prices and the economy
prices. The main portion of the revenues that are earned by Carrefour Group
are earned from the premium priced products (Naeem, Bilal and Naz 2013).
Place – The organization has more than 10,000 stores operating in more than
30 countries of the world including UAE. The traditional format of the
organization has been developed with the wide range of products that are
offered to the customers. The stores of the company are formulated with the
help modern and attractive designs with the help of different banners. The
bakeries of the Carrefour Group are chosen for the effective distribution of the
products to various customers.
Promotion – Carrefour hypermarket stores conducts the various promotional
activities with the help of marketing campaigns. The social media platforms
are used by the organization for the purpose of promoting the new product
range that is being launched by the group The loyalty club of the organization
is formed for the purpose of providing the products to the customers at
discounted rates (Mistilis, Buhalis and Gretzel 2014).
People – The delivery and distribution related policies of the organization are
related to the correct formation of the store designs with respect to the
preferences of the customers. The new product range will also be offered on
the online portal of the organization according to the convenience of the
customers.
Physical evidence – The organization aims at updating its operations with
respect to the preferences of the customers. The products will be offered in the
urban and rural stores based on customer preferences.