Carrefour discount case
We decided to study the launching campaign of Carrefour Discount, the new French private label of Carrefour, which occurred at the beginning of 2009. We will first analyze the objectives of the campaign. Then, we will present its different steps and some means to evaluate the overall success of the campaign. Toconclude with, we will see how the campaign increased Carrefour shareholder value.
Before 2009, Carrefour had an image of a qualitative but expensive retailer. Customers knew that they could not expect very low prices on basic products in Carrefour stores. So Carrefour decided to launch a new private label named Carrefour Discount. The idea was to offer qualitative products at discounted prices. Wecan easily understand that this launch was an important challenge for Carrefour to improve its global image as a retailer.
I. Objectives of the campaign
It is important first to focus on the campaign objectives.
For a retailer, a launching campaign as huge as this one is very rare. The fact that Carrefour invested a lot in it highlights how it is important for the retailer to be successfulfor this launch of a new brand. As a matter of fact, Carrefour expectancies on Carrefour Discount are very high and relying on many objectives.
The natural objectives for a new brand is the brand awareness : the new products have to be known to be purchased. The consumers prefer to buy if they know the brand values and the brand promises. As a consequence, the objective of Carrefour discountcampaign was to make people know the new brand. We will see later on how they realized the campaign to achieve this goal. But the fact that someone knows Carrefour Discount brand does not mean that he/she would buy the product.
The next objective is to incite people to buy for the first time a Carrefour Discount product in order to try it. In other words, we want to make people buy our products. Infact, being known by consumers is not sufficient enough to make them buy the product. It is necessary to convince them of the high quality and value for money of the product or brand to create the purchasing act. The whole launch is at stake at that specific moment. If a lot of people want to buy the product after being touched by the campaign, then, the campaign is a success. Thus, the campaignshould explain the different advantages and specificities of the brand by making a deep impression on people. It will increase also the brand recognition and allow once more to support the awareness of Carrefour Discount.
Then, it is easy to understand that such a communication campaign create the brand image Carrefour Discount brand and has an impact on Carrefour brand image as a retailer.Carrefour Discount is a new brand that did not exist before : all the brand image has to be built. For Carrefour, it is quite different because it already has a brand image. This new brand will change Carrefour image. Thanks to the campaign, the customer knows that he can now find affordable basic products at Carrefour. Thus, Carrefour is launching a new private label brand to improve its brand image onvalue for money. Carrefour Discount has to be identified quickly as a brand of Carrefour by customers, the name chosen with the word “Carrefour” inside is an evidence that Carrefour try to do it. In fact, they try to establish connections between the new brand and the retailers, thanks to new associations. But the challenge is quite huge : primary associations linked to Carrefour have to stay,otherwise, Carrefour will lose its identity. The campaign should explain the positioning on low prices, the wideness of the range of products (more than 420 different references) and the categories concerned (every basic products that every shoppers should need: bred, pastas, fruit juices...).
Thus, the conditions for a good launch of a new private label brand are an increase of the notoriety of...