This document summarizes marketing research conducted for Carrefour Egypt regarding expanding their "Mini-Carrefour" stores outside of Cairo. The research included: 1. Conducting surveys of customers in other governorates to understand purchasing behaviors, brand preferences, spending habits, and factors influencing shopping decisions. 2. Analyzing Egypt's demographics, economy, competitors' strategies, and segmentation opportunities to identify target customer groups for Mini-Carrefour stores. 3. Developing recommendations around positioning Mini-Carrefour as a source for quality, discounted products and an easy shopping experience in convenient locations. The 4P's framework was also applied to outline placement, product, promotion, and low-price

1. Marketing research1
Carrefour Egypt
Tamer El-Arid

2. Marketing research2
• Introduction.
• Methodology.
• Finding.
• Conclusion.
• Recommendation.

3. Marketing research3
Introduction
• Active shopping concept developers
throughout the region, introduced the
hypermarket model to the Middle East in
1995.
• In the expansion of Carrefour across the
region currently there are 37 hypermarkets
in the Middle East.
• Carrefour Egypt started fully functioning at
the end of 2002.
• Carrefour reputation has been built, above
all, on the quality and freshness of the
products, customer service and competitive
prices.
• Carrefour’s own retail brands are a
significant medium for brand differentiation
and customer loyalty.

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Methodology
• Problem definition:
• Pressure of hypermarkets and increase
number of competitors and increase its
share, scope for further growth of
Carrefour in Egypt is large.
• Decision:
• Expansion of Carrefour branches all over
Egypt to increase its share, profit and
brand image.
• One approach to open “Mini-Carrefour”
outside Cairo.

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Objectives
1. Studying demographic of Egypt.
2. Consumer behavior and lifestyle.
3. Consumer spending power.
4. Retail Greenfield.
5. Growth potential.
6. Governmental support.
7. Labor force and its role in business.
8. Cost base and affect on profit.
9. Support of feeder industries.
10. Studying competitors and their strategy.

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Research design
 Exploratory design:
 The search began internally with Carrefour.
 have asked to allow us to consult personnel
who may have access to records.
 Gain access to (possibly indirectly) internal
reports on the domestic marketplace;
information on distribution; correspondence
with customers at different regions; regional
buying patterns; any complaints.
 inspect published research for any indications
of retail sales.
 portfolio for advertising and promotional
materials used by the competition.

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Descriptive research
 Explore and understand the attitude of potential customer.
 Consumer behavior and lifestyle.
 Quantity like to buy.
 Carrefour brand for them to other competitor.
 Carried out questionnaire as cost effective way to connect with customers.

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Validation
 Used a flexible and powerful data cleaning tool to check for any data errors or any
logical inconsistencies.
 Validation question.
 Sampling error.

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Findings
• Results were obtained by questionnaire. We interviewed 40 respondents from
different regions outside the Capitals (Cairo & Alex). We put into mind the
variation in the Age group and Gender.
• Purchasing per month
• 37.5% of customer purchase once monthly.
• 22.5% do purchasing 3-6 time/week.
• 22.5%1-3 time per month.
No. of purchase
0
2
4
6
8
10
12
14
16
No
No
Once
Everyday
3-6 W
1-3 time M.

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• 80% of customer in sample purchase
from supermarket .
• 65% of customers in sample spend less
than 1 hour in purchasing .
• 50% of customers in sample spend in
purchasing 1000-5000 L.E.
Gerocerytype
0
5
10
15
20
25
30
35
NO
NO
Super market
Special gerocery
Time spend
0
5
10
15
20
25
30
No
No
less 1hr
1-2 hr
More 2hr

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• 67.5% of the customers
attracted by sales offers. offer attract you
0
5
10
15
20
25
30
No
No
Ab. Yes
Not so much
Not at all

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• 75% of customers in the sample buy all needs form the same market.
• 25% of customers in the sample purchased their goods for Spinnyes, 22.5% form
Carrefour and 15% form Hyper and also Metro.
Supermarket prefer
0
2
4
6
8
10
12
No
No
spinnyes
Carrefour
Ragab sons
Abo khalifa
Hyper
Metro
Royal house
Amir
Amira market
Soedi
Mega
Mercato

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• 37.5% of customers in sample interest in availability of food and 20% interest in
fresh food.
• 92% of customers in sample interest in improving of food quality.
Imp. of food quality
0
5
10
15
20
25
30
35
40
No
No
Fair
V. imp.
Imp. pf purchase
0
2
4
6
8
10
12
14
16
No
No
Food fresh
Avilability
Price
Quality
Convenience

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• Increasingly competitive retail grocery industry, Carrefour sought to gain more
control over its marketing processes and more effectively leverage its business
intelligence—with the ultimate aim of strengthening customer loyalty.
Market share
54
110
17.6
25
17.5
Carrefour
Metro
Hyper
Spinneys
Alpha

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Conclusion
• Egyptian market is a great opportunity for investment in supermarket sector due to increase of
population and prefer to purchase products from well trusted company.
 SWOT analysis:

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SWOT Analysis
S
•54 USD sales by five stores all over
Egypt.
•2nd largest retailer all over the world.
•Market leader.
•Wide range of products.
•Huge selling area.
•Good service.
W
•Take long time to open new store.
•Not have branches all over Egypt in all governorates.
•Not have more employee assist customer in buying.
•No delivery.
•Weak own brand sales.
•Poor E-commerce performance.
O
•Branches all over Egypt.
•Improve sales performance.
T
•Political and commercial issue in Egypt after
revolution.
•Competitor power (Metro-Hyper-Spinnyes).
•Power of buying after revolution

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 PESTEL Analysis
• Political:
After revolution Egypt in political issue due to not presence of president or stable
government and there is any clear position about commercial and industrial view
of Egypt.
• Economical:
After revolution, Egypt pass through instability situation, increase in inflation rate,
decrease of economic growth.
• Social:
Shopping in modern and clean supermarkets with a variety of different products is
becoming a lifestyle and leisure activity among Egyptians.
• Technological:
Improvements in technology will allow Carrefour to perform better analysis of
data related to existing and future customer bases.

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• Environmental:
Egypt’s substantial population makes it the largest market in the Arab world, with
the population increasing from 78mn in 2009 to an estimate of 84mn by 2014, and
GDP per capita predicted to rise by 72% reaching USD 4,201 by 2014.
• Legal:
Egypt after revolution will support investment and businessmen to increase their
business and expansion in all sectors.

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Competitor analysis
 Metro Supermarkets:
• USD 110 million in sales across 40 stores with an average sales area of 863 square
meters.
• Domestic chain owned by Mansour Group.
• Mainly mini-markets in middle-income residential areas.
• The company has introduced discount format at three stores under the name
Kheir Zaman.

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• Spinneys:
• USD 25 million in sales at one store of 9,000
square meters.
• Gulf retailer is present in Cairo’s CityStars
modern shopping facility.
• Plans further expansion in the country.
• Alfa:
• USD 17.6 million in sales across five stores
with an average sales area of 2,500 m2 .
• Established Egyptian chain of department
stores with an aging profile.
• HyperOne:
• USD 17.6 million in sales at two stores with an
average sales area of 10,000 m2
• Owned by Egyptian retailer El-Hawary.
• More discount oriented than Carrefour,
targeting average and lower income.

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Segmentation
• Geographic segmentation:
• Egypt is divided into 27 governorates, Carrefour establish in two governorates
only (Cairo-Alex.).
• Demographic segmentation:
• Population growth rate: 1.96% (2011 est.)
• Birth rate: 25.43 births/1,000 population (2010 est.)
• 0-14 years: 33% (male 13,308,407/female 12,711,900)
• 15-64 years: 62.7% (male 25,138,546/female 24,342,230)
• 65 years and over: 4.3% (male 1,546,774/female 1,818,778) (2010 est.)

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• Psychographic segmentation:
– The average of Egyptian income 5400 USD /year.
– 2% of Egyptian earns 20000000 /year, ultra luxuries enjoy money.
– 8% of Egyptian earns 2000000/ year,
– 30% of Egyptian earns 80-150000/ year, well educated striving for
growth and capitalism mentality.
– 20% of Egyptian earns 15-40000/ year ambitious but only covering
basics and social needs. Earn for good future for their children.
– 40% of Egyptian earns 1-15000 /year focus on life necessities.
• Behavioral segmentation:
• Egyptian behavior in last years changed toward buying from
hypermarkets.

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Recommendation
• Targeting
• Based on the previous segmentation, Mini-Carrefour target market will be mostly
all segments with focusing mainly on age 15-64. It will also target the Class A and B
customers .. and class C to smaller extent.

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Positioning
• “Positive is back” an expression of the brand’s unshakeably optimistic and
committed state of mind. Its new stance is in line with the current concerns of
Egyptian citizens, who are seeking simple, accessible solutions to improve their
day-to-day lives..
• High quality discount products, easier shopping, accessible organic goods, new
technologies, eco-friendly products ... these are all examples of positive
undertakings Mini-Carrefour intends to reinforce as the Group evolves.

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4 p’s
• Place:
• Based on our target, Mini-Carrefour will open in places where there’s high volume
of customers. It should be almost near to most population in the city for
convenience.
• Product:
• Mini-Carrefour has to adapt its merchandise to the culture. For example, certain
food nuances had to be appreciated, such as the sale of halal food that lacked
pork. Second, Mini-Carrefour has to adapt to Islamic cultural holidays like
Ramadan and Eid, which would build its peak sales. During these holidays, Mini-
Carrefour has to account for increased demand and plan its supply accordingly to
not disappoint shoppers. Third, operating hours in Egypt had to accommodate
Egypt’s workweek from Saturday to Thursday, and the weekend which is mainly
Friday.

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• Promotion
• Mini-Carrefour main promotional effort will be discounting certain items. Also, we
will handle local promotions, and coordinate some of these regionally with its
stores throughout the Middle East. Promotions will be placed in print media and
in-store, to attract mall-walking traffic. Because Egypt is a society emphasizing the
importance of social relationship, Mini-Carrefour could reasonably expect that
consumers might discuss some of the deals.
• Price
• Mini-Carrefour’s price position will be as a discounter, and will use pricing as part
of its promotional effort.

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