Retail Marketing Management.ppt

* Carrefour has three level pricing departments: national, regional, and store. National pricing department is responsible for creating national price list, collecting and giving feedback to the information from market research, collecting and giving feedback on the information regarding the products that have negative profits. It is also responsible for the entry negotiation of national brands. Regional merchandising department is responsible for the entry negotiation for regional brands. Then it helps to determine the initial price and promotion prices and put all the information into computer system. It is also responsible for supervising stores’ market research and implication of market research policies. Stores are responsible for ordering products. They can directly negotiate store promotion with suppliers. Stores set up the promotion prices and period. Stores use the pricing list from the headquarter to do market research on their competitors, and then modify their initial prices and promotion prices. Regional department prepares the posters and flyers for the stores in that region. It has a better negotiation power and can get a lower price for their posters and flyers. However, each region covers many cities. Customers vary in different cities. The factors such as local tastes, seasons, and profit were neglected. The promotion products in the posters or flyers were not attractive. Promotions on posters and flyers had bad targeting, and could not stimulate sales. In addition, the prices on the flyers and posters were often different from those in Stores. As a result, it damaged the price image of the stores. The headquarter makes the list of sensitive and non-sensitive products. Because of the regional differences, the high sensitive products may not be appropriately selected. As a result, the price image of Carrefour was damaged. The decentralized management created chaos in management, leading to bribery and corruption. For example, 11 store managers