Carrefour’s Retail Marketing Promotional Strategy:
Retail marketing strategies plays a very important role on the purchasing behavior of the customers. The strategies prove to be very helpful in order to drive the customers towards retail outlet and make them satisfy with the services and facilities provided by the retail stores so as to achieve the loyalty of the customers. (Carrefour launches ‘MyCLUB’ loyalty card, 2012).
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Launching of “MY CLUB” Loyalty Card as a part of Customer Retention and Relationship Management Strategy in Retailing:
Carrefour launched “MY CLUB” Loyalty Card for its retail customers in UAE. The card provides the facility to gain earning points at the rate of per Dirham on the purchasing of the food and beverages, household products and groceries etc. This retail marketing strategy has been used by the second largest retailer group after Wal-Mart i.e. “Carrefour” by the joint venture started with Majid Al Futtaim in UAE. (Carrefour launches ‘MyCLUB’ loyalty card, 2012).
MY CLUB loyalty program is the unique initiative taken by Carrefour in the hypermarket sector. It will develop the expansion of Carrefour’s retail chain through continuous delivery of augmented quality, value, convenience and variety of brands in the products and services as per the tastes and preferences of UAE retail customers; moreover it helps in having competitive advantage in the Middle East region (Carrefour launches ‘MyCLUB’ loyalty card, 2012).
The MyCLUB loyalty card has been launched for every Carrefour customer free of cost where any customer above the age of 21 years can obtain it from any supermarket or hypermarket of Carrefour. The card includes loyalty account numbers on each household strictly and the customer will be allotted with 4 physical cards, 1 card for himself and 3 other for his family members. The customers holding such card will gain 1 bonus point for each specific amount of cash spent on the purchase in the retail store. And on reaching the level of 500 points the customers will receive a voucher worth AED 50 Dirham to buy back their next retail purchases. In order to get all the benefits of the card the customers should register it on the loyalty website of Carrefour. Presently the loyalty card is not valid on the purchase of pharmaceuticals products i.e. Medicines, products with unlimited warranty, gift items, Salik, Nol, Du, Etisalta in the retail stores of Carrefour. “Henry Changeux” said that they started the operations regarding the loyalty card have achieved good responses of UAE customers (Carrefour launches ‘MyCLUB’ loyalty card, 2012).
Strategic Impact of “MY CLUB” Loyalty Card on the Market Competitiveness of Carrefour:
The retail marketing strategy of Carrefour is proving to be very helpful in providing various strategic advantages to the Carrefour and in increasing the global retail market competitiveness. Additional advantages are as follows:
It helps in the creation of potential retail customers and the retention of the existing customers.
It helps in attracting more and more customers to the Carrefour retail shop in order to gain the points benefit of the loyalty cards.
It will helps in boosting or increasing the sales and profit of Carrefour retail chain in UAE and Middle East.
It enables Carrefour in performing effective segmentation, targeting customers and product positioning.
It acts as a better promotional tool for the retail products and services of Carrefour.
It will enhance market awareness of the Carrefour among the retail customers which further leads to increase the market share and market image of the company.
It helps in better customer relationship management which benefited organization in terms of more and more customers.
It leads to influence marketing of the retail products and services in the UAE which increase the profitability of Carrefour.
It helps in changing the perception and behavior of the customers towards the retail stores.
It provides a strong foundation or base for Carrefour to further expand its retail chain with more companies like LULU hypermarket apart from Majid Al Futtaim.
It insists Carrefour to provide more and more innovative products and services in the retail segment so as to retain the attracted customers due to loyalty cards.
It is helpful for winning the loyalty of UAE retail customers and achieving customer delight.
It is helpful for winning the competitive advantage in UAE retail market (Carrefour launches ‘MyCLUB’ loyalty card, 2012).
Carrefour’s Retail Marketing Promotional Strategy in enhancing its Market Competitiveness:
Retail marketing strategies of Carrefour i.e. launching of “MY CLUB Loyalty Cards” regarding the customer benefits leads to create new customers and retain existing customers which helps in profit maximization of the company in the UAE retail market. Moreover it helps in increasing the market competitiveness of the company and in having competitive advantage over Wal-Mart in UAE.
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