Business strategy

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Business strategy: distribution market in France

The industry of the French distribution is composed by 3 big types/channels of market: the hypermarket, the supermarket, the hard-discount market(1 667 hypermarkets, 5 709 supermarkets and 4 531 hard-discount markets in 2009). All those different types of business use different strategies. For several years we noticed an increase of the numberof hard-discount (now remaining stable) due to the economic crisis. But the consumer has changed too; he is more demanding towards the quality and the accessibility.

For instance, the Hypermarketsuch as Carrefour uses the strategy of the “overall low cost provider”. In fact, Carrefour is usually in the suburb of big cities (so it can benefit from a lower price when buying the land to settle),and provides the consumer a large range of choices and insist on the fact that it’s less expensive (more family packages products are available). Plus, as it’s an important hypermarket, thenegotiation with the suppliers is on the advantage of Carrefour. The key success of Carrefour is a wide and reliable range of goods at affordable price.
While Monoprix (a French supermarket) uses the strategyof the “broad differentiation” in the way that this supermarket provides good quality products and its strength is that it’s usually in downtown so it’s really easy to access there. The key successesof Monoprix are proximity and reliability/good quality of the products. They want to differentiate themselves by the service provided to the customer (good quality products, smiling and welcomesemployees).
As for Leader Price its strategy is the “focused low cost” strategy. Indeed, their objective is to provide cheaper goods than its competitors. So, communication budget is really basic (couponsbut no commercials on TV like Carrefour, and no advertising in magazines like Monoprix); for instance in the aisle you can find your product that still are in the cardboard of the delivery (in...