ICT and e-Business Impact in the Retail Industry - empirica
ICT and e-Business Impact in the Retail Industry - empirica
ICT and e-Business Impact in the Retail Industry - empirica
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e-<strong>Bus<strong>in</strong>ess</strong> <strong>in</strong> <strong>the</strong> <strong>Retail</strong> Sector5.5 Cas<strong>in</strong>o Group, FranceAbstractThe Cas<strong>in</strong>o Group is a lead<strong>in</strong>g food retailer <strong>in</strong> France. Founded <strong>in</strong> 1898, <strong>the</strong> firm sellsits products through various channels <strong>in</strong>clud<strong>in</strong>g different types of stores such ashypermarkets <strong>and</strong> discount shops. In 2006, <strong>the</strong> Cas<strong>in</strong>o Group implemented a CustomerRelationship Management (CRM) system at its hypermarket branch. With this solution,<strong>the</strong> firm aims to improve relationships with <strong>the</strong> ‘professional groups’ customers which<strong>in</strong>clude public <strong>in</strong>stitutions, large enterprises <strong>and</strong> associations. Giv<strong>in</strong>g sales peopleaccess to a centralised database significantly improved sales operations at <strong>the</strong> Cas<strong>in</strong>oGroup. The solution fur<strong>the</strong>rmore has a positive effect on market<strong>in</strong>g strategies <strong>and</strong>activities. Overall, <strong>the</strong> solution has resulted <strong>in</strong> efficiency ga<strong>in</strong>s for <strong>the</strong> sales force <strong>and</strong><strong>the</strong> market<strong>in</strong>g department; productivity ga<strong>in</strong>s for <strong>the</strong> till employees; <strong>and</strong> improvement oflogistics, quality, hygiene, security <strong>and</strong> environment management with<strong>in</strong> <strong>the</strong> Group.Case study fact sheetFull name of <strong>the</strong> company:Cas<strong>in</strong>o groupLocation (headquarters / ma<strong>in</strong> branches): Sa<strong>in</strong>te Etienne, FranceNo. of employees: 192 948Sector:<strong>Retail</strong>Ma<strong>in</strong> bus<strong>in</strong>ess activity:Food <strong>and</strong> non food retailerPrimary customers:ConsumersYear of foundation: 1898Turnover <strong>in</strong> last f<strong>in</strong>ancial year (€): €M 22,505Most significant market area:France, North America, Asia, Indian OceanMa<strong>in</strong> e-bus<strong>in</strong>ess applications studied: * Customer Relationship Management5.5.1 Background <strong>and</strong> objectivesThe Cas<strong>in</strong>o Group is strongly driven by its home market with 75% of its net salesorig<strong>in</strong>at<strong>in</strong>g from sales <strong>in</strong> France <strong>in</strong> 2006. Before exp<strong>and</strong><strong>in</strong>g <strong>in</strong>to <strong>the</strong> <strong>in</strong>ternational market,<strong>the</strong> Group strongly consolidated its French home market position. These firm roots are<strong>the</strong> source of <strong>the</strong> Cas<strong>in</strong>o Group’s ambitious <strong>and</strong> susta<strong>in</strong>able <strong>in</strong>ternational expansionwhich started <strong>in</strong> <strong>the</strong> late n<strong>in</strong>eties. Internationally <strong>the</strong>re are two priority markets: SouthAmerica <strong>and</strong> South East Asia. Across <strong>the</strong>se markets, a diversified sales channel portfolio<strong>in</strong>clud<strong>in</strong>g hypermarkets, supermarkets, convenience stores <strong>and</strong> discount stores ensuresthat <strong>the</strong> Cas<strong>in</strong>o Group reaches a wide array of consumers.Strategically, <strong>the</strong> Cas<strong>in</strong>o Group seeks to differentiate its offer from competitors with afocus on <strong>the</strong> customer. To accentuate this differentiation <strong>in</strong> a competitive marketplaceassertive market<strong>in</strong>g <strong>in</strong>itiatives have been designed to make every aspect of <strong>the</strong> bus<strong>in</strong>esscustomer-centric. Profoundly affected by this strategy is <strong>the</strong> hypermarket branch, which<strong>in</strong>cludes 108 stores <strong>in</strong> France hav<strong>in</strong>g a market share of 3.7% <strong>and</strong> represent<strong>in</strong>g 36% ofCas<strong>in</strong>o Group’s revenues (€6,294 million <strong>in</strong> 2006). Market<strong>in</strong>g activities with<strong>in</strong> this groupare based on <strong>the</strong> susta<strong>in</strong>ed development of <strong>the</strong> Cas<strong>in</strong>o br<strong>and</strong>, <strong>the</strong> <strong>in</strong>troduction of newfood <strong>and</strong> non-food concepts <strong>and</strong> an ambitious customer loyalty program. An importantdriver of both, revenue growth <strong>and</strong> marg<strong>in</strong> improvement is this customer loyalty program:purchases paid for with <strong>the</strong> Cas<strong>in</strong>o card cont<strong>in</strong>ued to rise dur<strong>in</strong>g 2006, reach<strong>in</strong>g 60% of150
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