Bangladesh Market Carrefour Expansion and Entry Plan Research Paper

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Carrefour Expansion and Entry Plan into the Bangladesh MarketExecutive summaryThe increase in globalization has increased market opportunities for large companies and organizations, making them go international. Carrefour is one of these organizations that have been sought to increase their market share by venturing into the global market. This expansion plan is for the organization’s expansion and entry into the Bangladeshi retail market. PESTLE Analysis of the Bangladesh market shows that the external environment is very conducive for the business. There were no concerns found for the company to do business in Bangladesh. A SWOT analysis reveals that Carrefour has a strong market and product base to support companies seeking expansion. One of Carrefour’s main challenges in entering the Bangladesh market is determining that local participants could share the burden of operations and promote Carrefour’s understanding of local customs and operating regulations. Carrefour will enter the Bangladesh retail market in a joint venture with a local company. Due to the special circumstances in Bangladesh at that time, such as the limited operating space of hypermarkets, the government stipulated that Carrefour would start to limit the scale of operations to small hypermarkets or supermarkets of 43,00 to 5,600 square meters. The marketing strategy for this market will involve the establishment of a hyper/supermarket in Dhaka. The products involved will be the main offerings typical of Carrefour. Pricing will be done to ensure competitive advantage and to reach the spending-conscious middle-class buyer. Within Dhaka, the company will initially rely on the existing distribution chain for the partnering store and delve into e-commerce. Promotion will involve digital ads, compensation programs, community influence, and traditional marketing. Based on BCG Matrix, it is clear that this expansion and entry plan has the potential for success; however, once the company has launched operations, there will be a need for continuous analysis of customer demand for existing products and determine if any changes need to be made.IntroductionCarrefour is a French multinational retail company based in Massy, ??France. In terms of revenue, it is the eighth largest retailer globally, operating supermarket chains, grocery stores, and convenience stores. As of January 2021, it has 12,225 stores in more than 30 countries (Carrefour n.d.). Carrefour has more than 321,000 employees worldwide. The turnover in 2019 was close to 80.7 billion Euros, more than half of which came from regions outside of France (Carrefour n.d.). Carrefour invented the hypermarket model in 1963, and its subsequent success made it possible for the model to be replicated in several countries. Carrefour’s strategy to become the preferred retailer in Europe is to maintain a customer-oriented culture and ensure transformation and innovation. However, this is insufficient when it comes to global expansion. To be successful in global operations in the fierce competition caused by market liberalization, companies must execute global marketing strategies to meet the needs of foreign customers (Chinomona and Sibanda 2013; Day Translations 2019). Before a service/product is advertised in a foreign country, it is very important to consider the unique political, social, technological, and cultural ideologies of people in different countries.

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Ignoring the needs of foreign customers will lead to a decline in the company’s reputation and sales. This is why international marketing services are essential. What will the game be like? What are the legal requirements? Is the government hostile? What do people want? What’s the weather like? These are aspects that companies must take into account when changing the market mix (products, prices, promotions, locations) to adapt to the needs/complexities of new customers.Even though Carrefour has made a considerable expansion globally, there are still some potential markets that it has not…

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…bottleneck that organizations must deal with successfully.Carrefour will enter the Bangladesh retail market in a joint venture with a local company. The advantage of this joint venture entry strategy is that Carrefour will rely on the local companies’ existing supply and marketing channels, use its retail trade experience in the Bangladesh market and Bangladeshi cultural knowledge, and customers’ preferences and buying habits. Also, due to the special circumstances in Bangladesh, such as the limited operating space of hypermarkets, the government stipulated that Carrefour would start to limit the scale of operations to small hypermarkets or supermarkets of 43,00 to 5,600 square meters.The marketing strategy for this market will involve the establishment of a hyper/supermarket in Dhaka. This will provide the company with a good initial understanding of the Bangladeshi retail market. Once this initial store picks and turns profitable, the company will explore other stores in other major urban areas within Bangladesh. The products involved will be the main offerings typical of Carrefour. Pricing will be done to ensure competitive advantage and to reach the spending-conscious middle-class buyer. Within Dhaka, the company will initially rely on the existing distribution chain for the partnering store and delve into e-commerce. Promotion will involve digital ads, compensation programs, community influence, and traditional marketing. Carrefour will also focus on developing people and building people through training and motivational strategies. For the success of this expansion into Bangladesh, Carrefour management will need to fully and continuously analyze the demand for existing products and determine if any changes need to be made. The company offers a wide range of products in its stores, ranging from electronics and furniture to food, stationery, beauty products, fitness products, furniture, light accessories, etc. In this area, the operations manager will need to identify market trends to determine which products are gaining….....

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