marketing strategy of carefour in Taiwan

Question

arefour one of the largest retail in the world decided on expanding into asia in 2005 due to the high growth potential in the region. After considering several markets it decided to start its Asian foray from Taiwan. Initially carefour has planned to use the strategies it followed in France and other European countries in Taiwan as well, but it soon realised that there was a significant difference between the behaviour of Taiwanese shoppers and that of shoppers in Europe. The Taiwanese shoped more frequently and in small quantities and were extremely price conscious. In addition the consumers were not satisfied with some of carefours practice like high profit margin of imported goods parking fees and long ques at cash counters even when the supermarket was crowded . though carefour was extremely successful in establishing itself in Taiwan. Its revenue began to decline after 2007.

carefour was no longer attractive and modern for Taiwanese. therefore ot has decided to adopt different marketing strategies and approach to review their business and increase their sales

As the head of the marketing department identify the main problems and prepare an action plan in not more than 150 words which would help carefour to uplift its profit

Answer 1

Key Problems Identified

1. Misalignment with local shopping behavior (frequent, small purchases)
2. Perception of high prices, especially on imported goods
3. Negative customer experiences (long checkout lines, parking fees)
4. Loss of brand relevance post-2007

Action Plan to Revive Profitability

1. Localized Merchandising: Prioritize local and regional suppliers to meet taste preferences and reduce import costs.
2. Frequent Shopper Strategy: Launch loyalty programs with everyday discounts, digital coupons, and app-based rewards tailored to frequent visits.
3. Operational Improvements: Add more self-checkout stations and staff during peak hours to reduce wait times. Offer validated or free parking with minimum spend.
4. Modernize the Brand: Reposition Carrefour as a smart, affordable, and community-connected brand, leverage social media, livestreams, and influencer partnerships.
5. Customer Feedback Loops: Establish in-store and app-based feedback tools to rapidly adapt to customer needs.

By adapting to local behavior and upgrading brand relevance, Carrefour can regain consumer trust and drive sustainable growth.