INTERNATIONAL MARKETING, KROGER & CARREFOUR

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Choosing markets, Option 1, Grenoble Graduate School of Business

November 16th, 2009

Author Note

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INTERNATIONAL MARKETING, KROGER & CARREFOUR

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For the purpose of this essay, we will analyze the marketing strategies of two companies evolving in the retailing industry. One of them, which operates in both, developed and developing countries, and the other one just in a developed country. The companies would be, respectively, Carrefour and Kroger co. Kroger co, general information Kroger co. is an American company, headquartered in Cincinnati, Ohio. It is the 26th fortune of the country. It celebrated its 125th anniversary in 2008. They employ more than 310,000 people, working in 2490 supermarkets in 31 states under different banners like Kroger, Ralphs, Fred Meyer, Food 4 less, Fry’s, King Soopers, Smith Dillons, QFC and City Market. In 2008 it reported US$59,577 million in Net sales. From 2007 to 2008 the Net sales has grown about 2.7%. It is one of the largest grocery chains in the US (Ranked second in terms of value share) and the fifth biggest retailer in the world. However, Kroger operates only in the US, and despite the fact that the company also operates in 782 convenience stores, 394 jewellery stores and 686 supermarket fuel centers, grocery retailing account for the vast majority of the company’s value sales. Besides pure distribution activity, Kroger operates 42 plants in 17 states (wholly own or used with operating agreements) in order to produce its private label products. We will see that private labels are a key point of their marketing strategy. Product As I said, Kroger is mainly a grocery retailer, so we will focus only on that activity. Kroger offer a full range of private label grocery products from budget to premium. Private labels is central to its merchandising strategy, it accounts for 25% of its grocery sales.