Carrefour Discount: our response to consumer

 Carrefour Discount:
our response to consumer expectations
A tough economic situation is changing consumer behaviour
With the global economic crisis, rising unemployment and declining consumption, purchasing power
has become the main concern for 61% of French households1. Purchasing behaviour has changed
radically as consumers adapt their needs, change their spending priorities and have begun to make
budgetary decisions that push them more towards essential products.
A recent study by TNS World Panel shows that priority is being given foremost to basic food products
to the detriment of non-food items, notably household and personal care products. Similarly, when
shopping for food, households are now turning more deliberately towards new distribution channels,
such as hard discount banners and towards lower-priced items like distributor brands. Even so, 60% of
consumers agree that price is not the only motivating factor. Moreover, not all households are
convinced by “low cost” banners1.
Moreover, when questioned about how they adapt their spending, French consumers say they cut
back on food spending or try to consume better by purchasing2:
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Only necessary products and eliminating non-essentials (40%)
Quality products (39%)
Fewer food items (10%).
A new tailor-made product line covering core consumer needs
In today’s tough economic environment, Carrefour wants to provide consumers with a tailor-made
solution for keeping a grip on spending on everyday needs while offering the support of a national
brand. With its hard discount pricing policy, Carrefour Discount proposes 400 reference items ranging
from food to household goods and personal care products, covering the essential needs of everyday
life:
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83% food products:
o Dry goods: cereal, coffee, tea, biscuits, flour, sugar, canned goods, prepared dishes…
o Fresh produce: yoghurt, cheese, cold cuts, frozen foods, bakery goods…
o Liquids: fruit juice, soda, bottled water…
17% household goods and personal care products:
o Household goods: cleaning products…
o Beauty and personal care products: tissue paper, diapers, wipes, shampoo…
1
2
Référenseigne Study, 2008 – TNS World Panel
Ipsos – Consume better survey – April 2009
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This has been confirmed by our first consumer surveys. Among those that tested items in the
Carrefour Discount product line3:
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93% of customers surveyed said they would have no problem buying Carrefour Discount
products
95% of our customers surveyed said they found the prices of Carrefour Discount products to
be affordable
72% of non-Carrefour shoppers said they found the Carrefour Discount line to be appealing,
including both the name and packaging.
A multi-banner product line available in stores at the end of May
With Carrefour Discount, Carrefour offers its customers a direct alternative to hard discount brands
while letting them benefit from the strengths of the Carrefour brand: quality, innovation and prices. The
Carrefour Discount product line rounds out Carrefour’s brand portfolio by offering consumers greater
choice.
To be launched in France at the end of May, Carrefour Discount will be available in 1200 Carrefour
hypermarkets, Carrefour Market and Champion supermarkets, Carrefour City and Carrefour Contact
convenience stores, as well as online at Ooshop, Carrefour’s online grocery store.
Carrefour Discount becomes the first multi-banner low-cost product line. It will be displayed alongside
national brands as well as the other Carrefour brand product lines. From now on, shoppers will have
access to the full pricing range, under the same banner and within the same store.
3
Study conducted in December 2008 on a sample of 700 consumers, customers and non-customers of the banner – Panel on
the web
Carrefour Discount:
the quality of the Carrefour brand at very low prices
Quality: a commitment inscribed in the genes of the Carrefour brand
Carrefour Discount fits within the tradition of Carrefour brands by proposing the best price/quality trade
off for all 400 reference items. The prices of Carrefour Discount products are aligned with those of
hard discount banners, but without sacrificing in the least the quality demanded by the Carrefour
group.
The Carrefour Discount product line meets the quality commitments of the Carrefour Charter:
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Products are made by Carrefour-certified suppliers in compliance with precise, rigorous
specifications, that notably specify the origins of selected raw materials;
Products contain no GMOs;
Food irradiation is not permitted (no radiation treatments for better conservation);
Products are tested and analysed to verify quality compliance
Before marketing, products are tested by external consumer panels to guarantee organoleptic
quality.
Of special note: organoleptic tests conducted with our customers before launching the Carrefour
Discount brand gave a satisfaction rate of over 98%.
Quality: an approach shared with our suppliers
To guarantee the quality of its food products, notably for its own-brand products, Carrefour has set up
a concrete quality control procedure divided into several phases, including the establishment of strict
specifications and audits of quality control procedures at its suppliers’ production sites.
Suppliers are audited with respect to health and safety conditions, risk control and application of an
HACCP plan to guarantee food safety, traceability and compliance with specifications. In addition,
Carrefour endeavours to verify progress in product development and compliance with the application
of the Group’s “no GMO” policy.
Carrefour Discount:
Simple packaging makes all the difference
With Carrefour Discount, Carrefour offers a product line that appeals to the customers of all Carrefour
banners, thanks notably to simple, easy-to-identify packaging that makes all the difference.
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An easy-to-identify logo
The logo of the new product line is an astute combination of
the Carrefour icon, which brings to mind the commitments
of the group’s quality charter, and the word “discount”, a
clear and simple pronouncement of the product positioning.
The design expresses the values of the product line: simple,
visible and modern. The logo’s placement and handwritten script reinforce the notion of being close to
customers.
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Modern, simple packaging, easy to spot on the shelf
The product is pictured without frills against a white background, which increases its visibility
on the shelf and reinforces the idea of an essential product. Very sharp colour segmentation is
used to facilitate readability. The simplified packaging also conveys a sense of complicity and
closeness.
The visual illustrating the product can be photographed, hyper-realistic or simply
sketched depending on the printing constraints. Information is also prioritised to facilitate
the customer’s choice.
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Nutritional labels to guide consumers
To guide customers when making purchases, nutritional information based on the
French National Food Health Plan (PNNS) is displayed on the back of all packaging, in
the same way as for other Carrefour brand products. Nutrition labels were developed
with experts from Carrefour’s Scientific Committee and from consumer associations. A
set of dials portrays the key nutritional components depending on the product, including
fat, simple and complex carbohydrates, protein, fibre and salt. Each dial symbolises the
daily recommended amount of that component and the coloured portion indicates how
much a serving of the product contributes to the recommended daily requirement.
Calculations are always based on a person with a recommended daily calorie intake of
1,900kcal.
Carrefour: Over 30 years of innovation on behalf of our
customers Carrefour Discount: a new product line to strengthen the Carrefour
brand portfolio
Carrefour Discount, the Group’s latest innovation, is positioned as the low-cost product line of
Carrefour’s brand architecture. Carrefour Discount rounds out the group’s existing brand portfolio by
providing a direct alternative to hard discount brands, while offering customers a broad selection as
budgetary concerns influence consumer behaviour.
Responding to a real consumer need, Carrefour Discount offers quality products at very low prices, in
keeping with the pioneering spirit of the Carrefour banner.
Historical overview of the Carrefour brand
A pioneer in its market for over 30 years, Carrefour has always innovated in response to customer
expectations and consumer trends.
1976: Carrefour launched Produits Libres, the first line of unbranded
products
To counter fears of certain national brands that hesitated to market their products in hypermarkets,
Carrefour launched Produits Libres. This unbranded line of about fifty products broke with the classic
conventions of the consumer market. With sober packaging and a very aggressive pricing policy, the
line was developed in partnership with French small and medium-sized enterprises (SME) to meet the
banner’s quality requirements.
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• 1985: Carrefour develops the first distributor brand
Ten years ahead of its competitors, Carrefour launched its first Carrefour brand product line. Aware of
its important role with respect to consumers, Carrefour went even further by introducing precautionary
product principles. These innovative initiatives included dating eggs or banning GMOs from all ownbrand products. In 1991, Carrefour created Carrefour Quality Commitment Lines to guarantee quality,
taste and product authenticity while offering attractive prices to consumers and fair pay to producers.
Carrefour further enriched its offer through complementary product lines geared towards specific
segments in keeping with consumer expectations. Regional specialities were highlighted through the
Reflets de France brand (1995) followed by the Carrefour Bio certified organic brand in 1997, and
“Marque n°1”, a discount product line offering the lowest prices on the market.
• 2005: Carrefour splits its brand into three product lines
To clarify its offer and brand portfolio, Carrefour overhauled all the brand’s product lines and visual
identities through the creation of three distinct product lines. Customers can chose between everyday
products (Carrefour), products complying with specific sustainable development commitments
(Carrefour Agir) and exceptional products or original recipes (Carrefour Selection).
The Carrefour brands
Carrefour (core brand)
Responding to customers’ daily needs
Combining a full range of everyday products with the best price/quality trade off,
the Carrefour brand is perfectly adapted to all the needs and expectations of
consumers through a variety of product themes: Carrefour Light, Carrefour Kids,
Carrefour Baby, Carrefour Exotic, Carrefour Men, Carrefour Home, Carrefour
Cosmetics.
This product line accounts for 80% of the banner’s assortment.
Carrefour Agir:
Responding to the sustainable development commitments of customers
By combining Carrefour’s quality standards with responsible consumption, the
Carrefour Agir line offers customers the possibility of making purchases that also
promote sustainable development. This product line has been divided into four
themes, each with its own private label:
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Carrefour Agir Bio: organic food products
Carrefour Agir Eco Planète: environmentally-friendly products that help
preserve the planet
Carrefour Agir Solidaire: fair trade products
Carrefour Agir Nutrition: health foods
Carrefour Sélection:
Responding to the exceptional needs of customers
To offer gourmet and gourmand consumers the possibility of treating themselves to a
unique moment of pleasure, the Carrefour Selection line proposes over 150 high
quality food products that combine refinement, original recipes and affordable
prices.
Carrefour’s brand portfolio