Carrefour Case Study
Q1 A) Market segmentation is the segmentation of customer markets into homogenous
groups of customers, each of them reacting differently to promotion, communication,
pricing and other variables of the marketing mix. Ideally, relevant differences between
buyers within each segment are as small as possible. Thus, every segment can be addressed
with an individually targeted marketing mix.
As already stated, segmentation is the basis for developing targeted and effective marketing
plans. Furthermore, analysis of market segments enables decisions about intensity of marketing
activities in particular segments. A segment-orientated marketing approach generally offers a
range of advantages for both, businesses and customers.
It is possible to satisfy a variety of customer needs with a limited product range by using
different forms, bundles, incentives and promotional activities.
B) There are four types of consumer buying behavior on the basis of buyer involvement while
purchasing any product.
High involvement Low involvement
Significant differences Complex buying behavior Variety seeking behavior
between brands (motor cycle ) (washing detergent)
Few differences between Dissonance buying behavior Habitual buying behavior
brands (floor tiles) (toothpaste)
1) Complex buying behavior:- when the consumer is highly involved in the buying and
there is significant differences between brands then it is called complex buying behavior. So in
this case the consumer must collect proper information about the product features and the
marketer must provide detailed information regarding the product attributes.
2) Variety seeking behavior:- in this case consumer involvement is low while buying the
product but there are significant differences between brands. Consumers generally buy different
products not due to dissatisfaction from the earlier product but due to seek variety.
3) Dissonance buying behavior:- here consumer is highly involved in the purchase but there
are few differences between brands.
4) Habitual buying behavior:- in this case there is low involvement of the consumer and
there are few differences between brands. The consumer buys the product quickly.
C) Consumer involvement will tend to vary dramatically depending on the type of product. In
general, consumer involvement will be higher for products that are very expensive or are highly
significant in the consumer’s life in some other way. It is important to consider the consumer’s
motivation for buying products. To achieve this goal, we can use the Means-End chain, wherein
we consider a logical progression of consequences of product use that eventually lead to desired
end benefit.
for high involvement products, consumers are more likely to use an external search. Before
buying a cell phoner, for example, the consumer may ask friends’ opinions, read reviews in
Consumer Reports, consult several web sites, and visit several dealerships. Thus, firms that
make products that are selected predominantly through external search must invest in having
information available to the consumer in need—e.g., through brochures, web sites, or news
coverage.
Q2 a) In going outside the France, Caerrefour had the option of entering Europe, Asia or other
countries in the Western hemisphere. It could not afford to enter them all simultaneously for at
least two reasons. First, in 1991 Carrefour lacked the necessary competencies and resources -
financial, organizational and managerial. Second, a logically sequenced approach to market entry
allows a company to apply the learning gained from its initial market entries to its subsequent
entries.
Q2 b) Marketing orientation is a business model that focuses on delivering products designed
according to customer desires, needs, and requirements, in addition to product functionality and
production efficiency (i.e., production orientation)
With the widespread adoption of Internet technology, e-commerce, and social media
technologies, the customer has clearly become the driving force behind contemporary business
strategies. Marketing-oriented companies revolve around internal business processes that gather,
synthesize, and package market intelligence into integrated marketing communications programs
(i.e., advertising campaign, new product launch, promotional offer, etc.). Furthermore, it
involves a brand planning its marketing activities around a singular concept -- the customer --
and supplying products to suit diverse tastes.
Components which define a marketing orientated organization include:
1. Customer orientation
2. Competition orientation
3. Interfunctional coordination
As stated, the most important focus in a market-orientated business is the customer. Similar to a
production-oriented company, one of the primary goals of marketing-oriented or customer-
oriented businesses is long-term profitability. Nevertheless, organizations that follow a
marketing orientation model realize that delivering superior customer value through product
innovation, as well as products and services tailored to customer needs, directly correlates with
generating revenue.
Competitive analysis is also a significant component of market orientation. Generally, companies
gather this information using market research, consumer surveys, and focus groups with
prospective customers to identify needs, preferences, as well as competitor strengths and
weaknesses. Since its introduction, marketing orientation has been reformulated and repackaged
under numerous names including customer orientation, marketing philosophy, and customer
intimacy.
