Retail marketing: Carrefour private labels

Résumé du document

Given the surge of discounting in France, various chains are keen to develop their own brand stores (retailers). What is a cause of concern for hypermarkets is that private labels are becoming increasingly important, especially with the declining purchasing power of households. In some cases private labels of equivalent quality have even been produced by the same companies as national brands. The national brands are less prominently displayed in stores. The year 2006 saw an overhaul of both national and store brands due to the congestion of shelves for many chains. Thus, Intermarché and Système U supplanted their competitor's goods in the markets. Brand name products hold a considerable share of the market in France, though they have not yet reached the significance that they have in Great Britain, where they were pioneered back in 1869 in Sainsbury's stores. In the first part of this document we will study the role of private labels in merchandising strategy, and in the second part, the competitive benefits of private labels.

Extraits

[...] Nevertheless, most of them were mere copies of national brands. The enrichment of the second generation of private label marketing occurred at the end of the 1980s upon the arrival of German hard discounters in France. This was the beginning of a slow marketing revolution for private labels, which was based on finding a quality to fulfil market positioning to obtain the best value for money. This strategy paved the way in certain product categories and for certain chains for the third generation of private label development. [...]

[...] In hypermarkets the private labels are becoming increasingly important especially with the declining purchasing power of households. In some cases equivalent quality private labels have even been produced by the same companies as national brands. The national brands are less prominently displayed in stores. The year 2006 saw for many chains an overhaul of both national and store brands due to the congestion of shelves. Thus, Intermarché and Système U removed their competitor's goods. Brand name products hold a considerable share of the market in France, though they have not yet reached the share they enjoy in Great Britain where they were pioneered back in 1869 in Sainsbury's stores. [...]

[...] Lhermie.C Carrefour ou l'invention de l'hypermarché, Vuibert, 2nd édition, Paris. Reports Carrefour, Annual Report www.carrefour.com. ACNielsen Global Services The power of private Label, www2.acnielsen.com Websites www.plmainternational.com www.lesechos.fr www.brandchannel.com www.retailindustry.about.com Articles Ferral J-L Turn Around Hypermarkets, www.privatelabelmag.com, Carrefour Group Taps PL. Database Distrivision Tns Sofres Retail Private labels in hypermarket. Mintel 2006, Carrefour Annual Report. [...]

[...] Today, retailers face a number of important products which may affect the private labels. In addition, the stores can not ignore national brands. Carrefour implements coherent strategies, firstly with the capitalizing strategy on brands and its specialization policy, secondly a comprehensive strategy on their product range. The French market share of private labels has not yet reached the level they enjoy in Great Britain, where they are wholly regarded as full- fledged brands in their own right. References Randall G A practical guide to Branding, First Edition Kogan Page, London. [...]

[...] Price The price is an important option for private label. Indeed, the best price positioning of these brands is claimed by all retailers- they all claim to offer products as good as but less expensive than their rivals. The price is generally 15% cheaper than leading brands and 59% than the top brands in that market. Place The careful control of the distribution of private labels is facilitated since Carrefour itself decides on the location of its products. In addition, Carrefour has a wide range of distribution channels, more than five different formats Promotion Today retailers have several means of communication. [...]