Carrefour.ppt

Hong Kong’s situation of Carrefour Marketing segmentation Geographic: Hong Kong is a small city in the world. About 6 million population during 1997 In higher population density. The average living size is 450 square feet Less supply of the shops over 100 thousand square feet in the commercial centre. (place for development ???) Hong Kong’s situation ofCarrefour Marketing segmentation Demographic: High household income in 1997 but decreasing since 1998 by financial crisis. Higher ratio of rent in the commercial market. Behavioral : Quality and price perspective are equally important. Directly Distribution The marketer reaches the intended final user by distributing the product directly to the customer.? There are no other parties involved in the distribution process that take ownership of the product.?  Question 2:As a manufacturer, why would some Chinese companies engage directly distribution of products in China? What kinds of problems does it reflect in China’s distribution system? Example : GREE (格力電器) ? Manufacturer consumers No parties involved between each others GREE plays 1. Manufacturer 2. Retailer REASONS 1. Cost ? ? 10% to 15% cheaper than others 2. Profit ↑ ?smooth ordering, packing and delivery without intermediaries 3. Customer loyalty ?Protection of trademark, patent and copyright REASONS 4. Degree of control ?take over all aspect transactions ( example , logistics of shipment, collecting payment ) 5. People Power ( Channel Power ) ?customers feel more secure in doing business with you Problems 1. More Risky ?lack of information about Chinese culture ?require the largest involvement in the export process 2. Conflict ?Boycott of supplies in China Problems 3. Cost ↑ ? Responsible for every level of organizations ? Handle all the logistics of the transaction Question 3: Base