E-Leclerc in China: Fictive case

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E-Leclerc in China: Fictive case

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Abstract

The objective of this report is to introduce a marketing plan to implant E-Leclerc centers in China. Currently the French market of supermarkets is saturated. The European market is a part of international strategy of E-Leclerc. Nevertheless, China represents an “Eldorado” with a population which constitutes the quarter part of the humanity ! Another aspect of the chinese population is the percentage of poverty: according to the french Chamber of Commerce and Industry, China gets 18 % of the world poverty (2005 figures). These two aspects are the determining factors in our decision to implant E-Leclerc in China. Being currently the leader of supermarkets in France (with a market share of 17.1 %), it could be the opportune moment to expand the company. Then, the main objective is to expand the company in the order to earn consumers and then to increase the company turnover. In this aim, we have to set E-Leclerc as “The supermarket where to do shopping”. E-Leclerc has to be where its competitors are – indeed, Carrefour is implanted since 10 years in China. To accomplish this objective, we should implement an efficient marketing plan. The efficiency will come from the capacity to E-Leclerc Company to adapt their supermarkets to chinese customers. To accomplish this objective, we should implement an efficient marketing plan. The efficience will come from the capacity to E-Leclerc Company to adapt their supermarkets to chinese customers.

Executive summary.
Situation analysis.
1. Situation analysis: Category factors (Porter's 5 Forces Model).
2. Situation analysis: Environmental factors.
Current marketing strategy.
1. Product features matrix.
2. Benchmark of product features matrix.
3. Competitive overview.
Customer analysis.
1. Customer and product.
2. Attitudes of the customer.
3. Purchasing process.
Objectives.
1. Volume and profit.
2. Time frame.
3. Secondary objectives: Brand equity, customers and new product.
4. Marketing strategies.
Product/brand strategies.
1. Core strategy.
2. Product/service feature strategies.
Supporting marketing programs.
1. Integrated marketing communications plan.
2. Advertising & promotion.
3. Partnerships/joint ventures.
Implementation.
Conclusion.
References.

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[...] Advertising & Promotion As we could guess, the advertising and promotion of E-Leclerc in China will use the same tools than in Europe (billboard, fliers, etc.) but not the same cultural arguments as we saw before. Firstly, in the order to make a lot of noise about E-Leclerc arrival, we have to well choose the place to implant the first store. This one has to be freed of any strong competitors (as Carrefour), then it has to be a big city in the order to target a maximum of people. [...]

[...] Strengthening the group's position in its key markets In order to take on local and international competition from a position of strength, the group has set itself a clear, challenging strategic objective: to figure among the three leading players in each of the markets where it has a presence. Where it is unable to rapidly achieve this objective, it is not afraid to withdraw from the market: it pulled out of Japan and Mexico in 2005, of South Korea, Slovakia and the Czech Republic in 2006, of Switzerland and Portugal in 2007. [...]

[...] That is why we could include E-Leclerc in the hypermarket family. In 2005, the food supermarkets, that is to say supermarkets and hypermarkets, used persons and accomplished a 157,7 billion euro turnover. B / category growth Supermarkets sector is in constant growth. Nevertheless the financial power of french people is decreasing Indeed, in France, the law of orientation of the business and the crafts of December 27th untitled law Royer, from which the purpose was to save the small business by limiting the growth of hypermarkets, subjected their setting-up to the agreement of the departmental Committees of commercial city planning. [...]

[...] The products: In a second step we have to adapt E-Leclerc products (Product): The food is really not the same than in Western People tastes are very different Products have to be very fresh (for instance, fishes have to be alive because chinese prefer being aware of what they eat). The stores (Place): Then, the chinese people have not the same habits than western people. That means they do shopping in a very different way: They prefer when stores seems to general stores even if it is a supermarket They prefer buying retail The prices: China is a big country with about of its population which belong to the lower class. [...]

[...] This one must be a profit for consumers: oil market in 1979, books market in 1981, perfume market in 1983, gold in 1986, la parapharmacy in 1988 Strategy 4 : Private labels The Marque Repère Created in 1997, Marque Repère born in the will of E-Leclerc centres to better defends the power of purchase of the consumers. The “Marque Repère” always developed its products around four main requirements: quality, price, service, citizenship. Nowaday, more than products constitute Marque Repère” bid. [...]

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