Chapter I

Introduction

1. Company description
General Information

Carrefour SA is an international hypermarket chain with

headquartered in Boulogne Billancourt, France, in Paris. This is one of the largest chains of
hypermarkets in the world (with 1,395 hypermarkets at the end of 2009, the second largest
retail group in the world, in terms of revenue and the largest profit - third, after Wal-Mart and
Tesco.

Carrefour operates mainly in Europe, Argentina, Brazil, China, Colombia, Republic

Dominican Republic, United Arab Emirates, and Saudi Arabia, but also has stores in Africa.
from the North and other parts of Asia, most of the stores being smaller in size
hypermarket or even supermarket. Carrefour means 'crossroads' in the language
French.

1
 In the following figure, we will list the countries in Europe where Carrefour operates and under what

form:

Europe (at the beginning of the year 2011)

Opening Magazine Magazine Cash

Hypermarket Supermarket
Country first of of &
uri uri
magazine discount proximity Carry

Albania 2011 1 – – – –

Azerbaijan
2010 3 3 – – –
n

Belgium 2000 56 280 – 257 –

Bulgaria 2009 5 3 – – –

Cyprus 2006 7 8 – – –

France 1960 218 1,021 897 3,245 134

Greece 1991 28 210 397 216 –

Italy 1993 59 485 – 1,015 20

Monaco – – 1 – – –

Poland 1997 72 277 – 5 –

2
 The opening Magazine Magazine Cash
Hypermarket Supermarket
Country first of of &
uri uri
magazine discount proximity Carry

Portugal 1991 – – 365 – –

Romania 2001 24 39 – – –

Spain 1973 172 115 2,912 3 –

Slovakia 1998 4 0 0

Slovenia 1998 15 12 6 1.98 2

Turkey 1993 19 99 519 – –

In the last 40 years, the Carrefour group has grown and become one of the groups of
top distribution.

The second largest in the world and the largest retailer in Europe, the group operates in
present four formats of grocery store: hypermarkets, supermarkets, cash & carry
It is a proximity magazine. The Carrefour Group currently has over 9,500 stores.
companies or franchises.

Whenever present, Carrefour is actively committed to promoting

local economic development. Since retail activities are all related to
in contact with people, the group constantly emphasizes local recruitment, training in
management and personnel at the workplaces wherever they work. The group aims to
supports local suppliers, 90-95% of the products on its shelves coming from the local level,
country function.

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 In Romania, there are only two types of Carrefour stores: Hypermarkets and
Market. These are located as seen in the image below, those in blue.
hypermarkets are marked while those in red are type market stores.

Objectives

Because GroupeCarrefour is very demanding regarding the distribution of brands

his own, because he wants his products to be preserved and to always arrive in the best
I chose the following favorable conditions for the beneficiaries:

a) Channel dimensions - direct distribution (producer - beneficiary)

b) The degree of participation of the company - distribution through its own device.

c) Degree of control - distribution that implies total control.

d) Degree of elasticity - distribution with a high flexibility because it reaches from one location to another
or very quickly while still being in different countries.

e) Logistics of goods - strategies regarding transportation with own means.

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 2. Branch analysis

Positioning against competitors

Carrefour Romania took over in the fall of2007, the Artima supermarket chain, for
55 million euros, with the aim of consolidating its market position. The Artima network owned 21 of
magazine, concentrated in the west, with a total sales area of 21,000 square meters.
After acquisition, the Artima stores were renamed to Carrefour Express, and in December
In 2010, they were renamed again to Carrefour Market.

In September 2011, Carrefour operated a network of 23 hypermarkets and 38 in Romania.

Carrefour supermarkets. In2012Carrefour intends to open, atPloieșyou, to the 50th
supermarket of the network and the third in this city.

Carrefour's competitors in the hypermarket segment are Auchan, Cora, Real, Pic and
Kaufland, and in the supermarket segment, it competes with Billa, MegaImage, Interex, and Spar.

Carrefour sales in Romaniathey increased by 3.6%in the first quarter of 2012, at 277
millions of euros. Worldwide, the retailer's sales rose in the first quarter by 1.5%, to 22.49
billion euros. Carrefour Romania has a network consisting of 52 supermarkets, 5 franchises and 25
of hypermarkets. The retailer ended last year with sales of 1.18 billion euros, up
with 4.8%.

Market description

Main target audience:

The actual clients of this company are varied, as they are both clients with a certain level of
lower income as well as clients with high incomes and generally aged between 18
and 70 years old. Also, Carrefour customers are generally individuals.

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 The Carrefour brand is one that is oriented towards all categories of customers, towards satisfying everyone.
the requirements for the best quality-price ratio. To this end, private labels have been created that
offers the lowest prices on the market while maintaining high quality standards
for each category:
Carrefour - private label for consumer goods and bazaar;
Carrefour Home - private label for household products and appliances;
Carrefour Selection - premium private label products;
Carrefour Bio - range of organic food products;
Carrefour baby - range of food and hygiene products for babies;
Carrefour kids - range of food and hygiene products intended for children;
Carrefour light - range of dietary products.
Secondary target audience:
Producers and suppliers of organic products;
Other business partners of the Carrefour Group.

Chapter II

Logistics warehouse management

1. Choosing the location

The problem of the importance of location consists of:

a) the importance of locating production units near sources of raw materials

the importance of transport in goods logistics

We decided to place our warehouse in the city of Iaș i, near the hypermarket.
Carrefour Era, at the address Ș oseaua Păcurari, No. 145, Iaș i, Iaș i County. I chose this location.

6
because we will consider 3 Carrefour hypermarkets: Era and Felicia, from Iaș i, and Carrefour.
Suceava.

The objective considered in choosing the location of the production is

minimization of combined production, transport, communications costs and those caused by
environmental factors.

In the placement of a production unit, aspects will be taken into account primarily.
raw materials. If the raw material is bulky, heavy and is used for
the acquisition of more products, the placement decision will prioritize an area
geographical proximity to the raw material supplier company. In the case of production processes
synthetic characteristics of assembling various parts acquired from multiple suppliers
located in different geographical areas, the production units will be placed in a more
close to the market, resulting in clear competitive advantages for the future
business.

2. Technical characteristics
The logistics department has chosen to opt for a specialized warehouse based on types of
products namely alcoholic and soft drinks. I chose this warehouse because we benefit
of a series of advantages:

storage capacity of 3000 pallets (2500 m²)

a storage area of approximately 2500 m², with the potential for expansion up to
20,000 m² and a height of 10 m.
3 hydraulic ramps (extendable), 1 hydraulic platform
equipment (RT, EPT)
the areas are protected with the help of a protective fence (2.5 m high) and access through
individual entry into the warehouse.
guarding provided even outside work hours, which patrols the area permanently and
video cameras.
equipped with a fire alarm with a sprinkler directly connected to the fire brigade
control access
storage possibility at low temperatures (+5°C).

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 3. Scale model of the warehouse

Annex

4. Material flow in the warehouse

Pickup of goods - The soft drinks will be picked up directly from the warehouse, where they are
they were delivered by the producers. The transport to supermarkets is an operation
fundamental because it is necessary to have a transport every time the implementation of
the disposition of a product requires its relocation.

Storage conditions - Products are stored at a temperature between 1-

10°C, on the right side at the entrance to the warehouse, with a storage area of 700
m².

Manipulation - Manipulation occurs in every transport operation, it involves

prepare the products to be loaded, as well as their loading and unloading. For
to facilitate handling and protection, the products are packed in insulated cardboard boxes with
6 bottles.

Loading - To reduce transportation costs, loading optimization is necessary.

the products intended for the Carrefour supermarket will be loaded together with other products
different.

The grouping operation involves loading soft drinks onto the same vehicle with more
many different types of products, but with the same destination, namely Hypermarkets
Carrefour. To ensure product availability and to avoid stock shortages
The logistics department will create a stock of 500 lots, 18,000 bottles.

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 Capitol III

Upstream logistics configuration

1. Description of the upstream market

The market for products sold in Carrefour stores is characterized by the number
a range of local producers as well as foreign producers. Having a wide variety of products,
The vast majority of producers dominating the market in Romania are foreign.
Carrefour stores sell both household products and food, cosmetics, or even
electronics and textile products. Refreshing products such as carbonated drinks of all flavors,
Mineral flat apples, the nectars bring substantial profit to Carrefour retail chains.

In addition to the large volume of imports, another feature of the market is the existence of
a broad category of niche products, a particularly interesting aspect if we consider
the fact that the level of penetration of these products among consumers is still quite
reduces. The increasing importance of modern trade and large retail chains has implicitly led to
a positive evolution of the soft drink market, and within it of products
of quality, more natural even with a higher price.

The soft drink market

100% juices are gaining ground: the Romanian consumer is becoming increasingly well-informed
the difference between the three categories of fruit soft drinks: still drink (with up to 25%
fruit content), nectar (between 25% and 99% fruit) and juice (100% fruit), choosing to consume with
preference for premium products: 100% juice and nectar. This preference is also present for
citrus aromas and seasonality is no longer as important as before (Daniela Dumitru,
the brand manager of Prigat). Consumers of natural juices in the premium category especially
people with average and above average incomes. A study by Daedalus Milward Brown showed that
79% of Romanians prefer the scent of oranges. At the top of preferences, orange is followed by

9
aroma of peach, grapefruit and pear. Exotic flavors (pineapple) are also appreciated.
passion fruit, mango, etc.) and berry flavors. Juice sales are influenced
of the season, both in terms of flavors, as well as packaging and categories. In summer, they are purchased with

juice decrease in small volume packaging, up to 0.5 liters, with citrus flavors, especially
grapefruit. During the spring and winter holiday season, beverages are preferred.
carbonated drinks in larger quantities. The market grew by 15% in volume, the category with the highest
growth being nectar (24%), followed by 100% juice (20%) and still drink (9%).
In the market for non-carbonated beverages, players such as Carlsrom Beverages (Granini), Coca-
Cola (Cappy), Quadrant (Prigat), Tymbark (Tymbark, Tedi, Carotella, Duo Fruo, Ciao), Parmalat
(Santal), European Drinks (Fruttia), Romsilva (Silva Fruct), as well as importers of some brands
like Pfanner. Sophisticated tastes have led to the production of light or sugar-free juices.

The Romanian soft drinks market is dominated by 3 players: the major rivals Coca-
Coca-Cola and Pepsi, as well as the local producer European Drinks, these are completed by a maximum of 10.

players with national coverage, but with a market share infinitely smaller.

According to the market structure of beverages carried out by MEMRB (international company of
soft drinks rank second, with a market share of
20.6%, being preceded by beer, with 30% of the market. In the same market, we can list coffee (10%),
mineral water (8.2%), Ice Tea (1.7%) or energy drinks (0.8%). After a period of
consistent and continuous growth (20-30% annually) for representatives of the soft drink market
It seems that a period of moderate growth and business consolidation will follow.

Types of suppliers

According to the manufacturers, the most important regions in terms of sales of

soft drinks are represented by the capital area, first of all, followed by Muntenia and
Dobrogea. Another extremely important sales center is also the western part of the country.
Transylvania, an important area with a large number of consumers, does not fit into the top.
sales by regions. The most important are:

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 1. Coca Cola România: Coca-Cola (Normal, Light, Zero), Fanta (Orange, Lemon,
Madness), Sprite, Nestea, Cappy, Schweppes, Burn, Dorna
2. Pepsi Americas Romania: Pepsi (Normal, Light, Max, Twist, Twist Light), Mountain
Dew, Mirinda Orange, 7UP (Normal, Light), Black Forest.
3. Harghita Pearl

Market relations

In supplier-distributor relationships, it is essential to establish who has the power to

negotiate.

In the case of the relationship between Coca Cola Romania and Carrefour Romania, Coca Cola Romania is

is situated at higher net rates due to the following negotiation qualities:

it offers brands that are present in the hypermarket, generating sales for
the other products.
their products are an important input for Carrefour's sales
no they are required to cope with substitute products.
Coca Cola products are differentiated from other products on this specialized market.

Coca Cola has the capacity and ability to expand its production within
the Carrefour hypermarket, in case the negotiations do not proceed according to the proposed objectives,
because their products are generally sought after and accepted, being recognized as brands.

In the relationship between Pepsi Americas Romania and the Carrefour store chain, Carrefour

acquire large quantities of the products from these suppliers.

Characteristics of the procurement process

The purchasing process is based on products specific to the activity of the hypermarket,
including articles that still present risks, but minor ones. Requests for quotes have been sent to Coca
Coca-Cola Romania, Pepsi Americas Romania, and Perla Harghitei. Following the study of the offers, and the

The negotiations have concluded the supply contracts.

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 2. Strategy chosen upstream

Type of contracting and clauses

A separate supply contract will be concluded with each of the 3 suppliers for a
a period of 6 months.

Clauses regarding:

The object of the contract - the list of products to be supplied is in Annex 3.

Marking, packaging - falls under the responsibilities of the supplier, is carried out according to the standards

and is included in the contract value.

Delivery, terms and quantity - the supply of goods will be carried out every 7 days.

If Carrefour's sales forecasts do not match the actual sales,

Carrefour reserves the right to adjust the quantities of products delivered, granting the right
suppliers to raise the price under these conditions (between 3% and 5%), (actions regulated by a
special clause)

INCOTERMS Clause – DDP

The price - set at the conclusion of the contract, subsequent changes will need to be negotiated
Payment will be made by bank transfer concurrently with the delivery of the goods.
Carrefour reserves the right to refuse payment for:

a) uncontracted, unrequested, or dispatched after the contractual deadline, without consent

to the buyer;

b) substandard goods;

c) the seller's failure to adhere to the price established in the contract, if the price changes do not
are carried out under the law.

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 For the delay in the execution and delivery of the products, the supplier owes
the buyer damages in the amount of 0.1% for the first 7 days of delay, 0.2% in
the next 14 days and if the delay exceeds the 14-day term, Carrefour has the right to
refusal of non-payment. For non-delivery of products, the supplier owes the buyer damages.
compensatory.

For each day of delay in the payment of the price of the products, the buyer owes
the seller damages of 0.1% for the next 7 days and 0.2% for the next 21
days, without exceeding 45 days, from the value of unpaid products.

The seller fulfilled their delivery obligation at the moment when the goods were placed at
the buyer's disposition at the agreed destination. The seller must bear all
the costs and risks associated with bringing the goods to the agreed destination, including any
DDP customs duties represent the maximum obligations for the seller.
Integrating the strategy into the marketing mix

The commercial relationship between Hypermarket Carrefour and the 3 suppliers will be established for a

the best implementation of the logistics plan by analyzing all components of the mix
marketing.

Product

For high-quality products that command a higher price, it has been established a
collaboration contract with Coca Cola Romania and Pepsi Romania. The costs of the contract
Supply with this company is more expensive, but their products are generally
recognized as brands, and this fact gives them added value. The products supplied by Perla
Harghita products are of superior quality just like the rest of the products placed on the market by

the Carrefour hypermarket.

PRICE

Coca Cola Romania and Pepsi Romania products have average prices and support the image of
superior quality product

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PROMOTION

The products marketed by the suppliers with whom collaboration has been decided enjoy
effective promotion and notoriety, for example: Fanta, Sprite, Cappy, Poiana Negri, Mountain
Thus, the presence of these products within Carrefour enhances the image.
hypermarket.

PLACEMENT

The central warehouse from which the supply is made to the 3 Carrefour hypermarkets
in Iaș i and Suceava it is in the city of Iaș i where there are two Carrefour stores that benefit from
this short distance to the warehouse. The distance from Iaș i to Suceava is 146 km.

3. Supplier description

Number 1 in the market, Coca-Cola has national coverage, with an emphasis on urban areas. Being
considering a producer with prices at the upper limit of the range, we can say that it
addresses individuals with medium to high incomes, with secondary and higher education, targeting a specific age group

14-45 years, 45+ extended. Through the brands in the portfolio, it reaches a quite wide audience, thus:

Coca-Cola, targeting ages 14-45, extended 45+, through promotional campaigns aimed at
as well as consumers, both young people/youth groups and groups of individuals/families;
Coca-Cola Light, targeting ages 14-35, addressed to females;
Coca-Cola Zero, target age 14-35 years, mainly addressed to individuals of the sex
masculine, active individuals, nonconformist, with inclinations towards urban culture and
entertainment;
Fanta, targeting the age group of 14-45 years, aims at both families and young consumers;
available in multiple variants: "Oranges" is the classic flavor for Fanta, but
there are also 'Lemon', 'Madness' and other seasonal varieties for those seeking new sensations;
Sprite, target age 14-30 years, 30+ extended, mainly male individuals,
unmarried, active, lovers of extreme sports and outdoor activities, with inclinations towards
urban culture.

Pepsi Romania

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 Number 2 in the market, in close competition with number 1, has national coverage, predominantly.
urban. With prices at the upper limit of the range, targets clients with medium to high incomes,
with secondary and higher education, target 14-40, extended 40+. We can say that they are fighting approximately

for the same category of consumers targeted by Coca-Cola. Depending on the brands,
we can make a segmentation like this:

Pepsi, target age 14-40 years, 40+ extended;

Pepsi Light, targeting the age group 14-35 years, aimed at females;
Pepsi Max, - target age 14-35 years, addressed to male individuals;
Pepsi Twist, - target age 14-35 years, unique taste combination on the market;
Pepsi Twist Light, target age 14-35, aimed at females,
the perfect combination of a Cola product and Twist flavor;
Mountain Dew, target age 14-30 years, unmarried individuals, young and active.
lover of extreme sports and outdoor activities;
Mirinda Orange, target age 14-35 years, product with low visibility on the market
Romanian
7UP, target age 14-30 years, unmarried, young and active people; available in 3
variant: 7UP, 7UP Light and 7UP ICE (during the summer).

Harghita Pearl

In her portfolio, there are products that are defined as juices with natural mineral water.
with numerous flavors, relatively new products in the Romanian soft drink market and with a share
small from the market, due to reduced visibility and consumers who are uneducated towards this niche.

Location

Coca-Cola Romania:

Coca-Cola HBC Romania headquarters

Global City Business Park, Building 02
Bucharest North Road, No. 10, Postal Code 077190
Website:[Link]
Pepsi Romania:

15
Pepsi Romania Headquarters: Calea Văcăreș ti No. 391, Sector 4
040069
Website:[Link]
Harghita Pearl

Headquarters Gară Street No. 600, Harghita

332686
Website:[Link]

SWOT

Coca Cola Romania

Strong points Weak points

the products supplied by them represent brands In certain games, ingredients are used.
recognized harmful to the body
long experience in production Certain packaging is not recyclable
a market presence of over 100 years
developed marketing strategies
extensive experience in the field
Opportunities Threats

Launching a natural product The population's orientation towards more products

slightly harmful
Pepsi Romania

Strengths Weak points

Superior quality of products High sugar levels

High quality of assortments

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 Established clientele
Opportunities Threats

The conquest of a larger segment of The change of mentality a

category of non-carbonated beverages consumers and increasingly opposing opinions
but of specialists

Harghita Pearl

Strong points Weak points

Professional bottling network The packaging is not recyclable.

High and non-negotiable prices
Opportunities Threats

accessible transport routes the possibility of delays in delivery

the possibility of stock ruptures
SWOT analysis

4. Volume and layout of commands

Provisional calculation for 12 months

In setting up future orders, I took into account previous sales of

Carrefour hypermarkets. The central warehouse receives goods from suppliers, at each of
the days of Tuesday and Friday of the week.

Coca Cola - 30 pallets with 24 packs per pallet, each pack has 6 bottles. Total: 4320
products in 2-liter bottles

6 pallets with 36 boxes per pallet, each box has 24 products. Total: 5184
packaged products in cans

Pepsi - 26 pallets with 24 cartons per pallet, each carton has 6 bottles. Total: 3744 products
2 l bottles

17
 6 pallets with 36 boxes per pallet, each box has 24 products. Total: 5184 products
embalate the dose

Harghita Pearl: 8 pallets with 24 boxes per pallet, each box contains 6 bottles. Total: 1152
products

Reception and storage

The reception of transports from the three suppliers in Suceava and Iaşi is carried out at
the central deposit in Iaș i. The quantities required for the 3 hypermarkets are sent to them,
and the rest of the quantity is stored in the central warehouse. Delivery is made based on the quantitative reception,

qualitative, the invoice and the quality certificate.

Reception and storage

The reception of goods is very important and therefore it will be carried out based on some
documents such as the invoice, delivery note, order slip, transport documents, etc.
This will take place at the Carrefour warehouse and will be both qualitative and quantitative. The goods will
verification at the moment of receipt, both based on documents and through counting, measuring, and weighing
in accordance with what is stipulated in the contract.

The handling of goods is done with the help of forklifts and pallets.
standardize. The aisles between the pallets have been specially created for goods to be brought in and
loaded with the help of forklifts. They are used because they can load, unload, and lift.
The loads at higher elevations for storage. The goods will be placed on the available pallets.
in storage.

The storage of products will be done in accordance with ISO 9001 standards, which means
that the entire storage system will comply with the required sanitation and hygiene safety standards.
similarly, the warehouse is equipped with ventilation systems for the storage and preservation of products
it will take place in clean, ventilated, cleaned spaces protected from sunlight or direct sources of heat
and freeze. These conditions are necessary for maintaining the stability of the quality parameters.
The warehouse staff will avoid any conditions of storage, warehousing, and transport that could

18
 it affects the quality of products, so their use does not endanger health
consumers.

Capitol IV
Downstream logistics setup

1. Description of the downstream market

The content of service marketing involves grouping the company's clients based on
their place and role within the service, in two categories:

a) potential clients: are those to whom the company addresses its services in the form of an offer,
before the actual service is performed. In order to attract these potential clients Carrefour
comes to meet them with various offers at attractive sale prices, and the promotion
taking place in Carrefour magazines.
b) actual clients: consist of individuals who have purchased the service or have decided to
to acquire by attending the meeting with the provider. Most of the people from Iasi fall into this category.
(estimated at 80%) who have used the services of Carrefour Iaș i at least once.
once considering that the hypermarket generates an annual traffic of 2.96 million

19
 visitors and about 6500-7000 customers a day.. The actual clients of this company are varied,
these being both clients with a lower income level and clients with high incomes and in
generally aged between 18 and 70 years. Also, Carrefour customers are generally
natural persons.

Most of the actual customers of the Carrefour hypermarket in the two cities of Iaș i and
Suceava is of the supporter type who periodically calls on his services and of the loyal supporter type.
calling whenever the need arises. The individuals targeted are aged between 18 - 70 years.
they are over, with an active lifestyle, eager for new challenges. The target individuals are so
both male and female, but especially women being more attentive to these details. The income
The targeted individuals fall within both the medium-sized economic sector and the large medium-sized sector.
It has been found that Carrefour customers:
The average age is 42 years.
Family composition: 66% with children
17% of clients have an income below 1,400 lei/family
10% of clients have incomes of over 3500 lei/family
48% of customers are loyal.
In this way, Carrefour aims to build a loyal customer base as the services
they fit better all desires and customer categories

Consumption behavior description

The shopping of the people from Iaș i and Suceava has a periodic character, being done periodically and

cyclic, at an interval of at least one week, maximum one month, their frequency usually increasing
on the occasion of the holidays, the summer period, or various promotions or price discounts.

The content of their shopping cart: from pickles, canned goods, cheeses or
detergents to computers, refrigerators, or clothing. The Romanian consumer assumes
fewer risks and tends to buy from narrower categories of products, limiting itself
the ones she knows, as much as possible to those she needs, to the detriment of the premium ones
and super premium.

The majority of the population in Romania goes to the supermarket and no longer chooses from very

many products. He/she sticks to the ones he/she knows, no longer tries so many new brands and neither
just so many new categories.

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Characteristics of the distribution process

Because the soft drink section is made up of groups of goods that do not require a
preferential treatment, as they can be stored for the long term, this constitutes an advantage
because the supply of hypermarkets in Iaș i and Suceava will be done weekly on the day
from Monday.

Given that there is a desire to supply 3 relatively close centers to each other,
the distribution process to all centers is carried out through cross-docking using platforms
logistics at the level of Romania.
The application of the trace and tracking system via GPS allows for real-time monitoring of
goods trucks, approaching the real transport time to each center. At the same time through a
a private web system hypermarkets will place their orders. These will be entered into
the central data system where they will receive a tracking number and can be monitored at any time
moment.

The distribution channel for household products in Real hypermarkets has the following
component:

deposit

carrier

magazine

final consumer

The distribution channel is indirect, short, and selective from the point of view of
For the final consumer, the distribution channel is sales in stores.

2. Chosen strategy downstream

Chosen distribution strategy (JIT vs. inventory)

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 For the sale of goods, those from the supply departments of
The Real hypermarkets together with those from the central warehouse decided to choose a strategy.
based on the creation of stocks for the following reasons:

because there is a need for a sufficiently flexible supply flow and

precis so as to limit sales losses due to stock shortages.

this strategy was chosen because all Carrefour hypermarkets in

Iaș i and Suceava are supplied from the same central depot, the chosen option.
being considered the optimal one. A JIT type supply was considered one
inadequate because transport optimization would not have been possible.

Advantages of provisioning:

Favorable negotiation based on larger orders, accumulated for all

the stores
Control over relationships with suppliers;
Optimization of transportation and inventory control through redistribution.

We can say that the Just in Time method is not suitable because the products in the aisle
Refreshing drinks sell quite quickly and it's good to have stocks to avoid stock shortages.

A Just in Time supply would mean a very high cost for transportation and
an inadequate supply system for this type of products.

Integrating the strategy into the marketing mix

PRODUCT

For products of superior quality that command a higher price, a was established a
collaboration contract with those from European Drinks Romania. The costs of the contract
sourcing with this company is more expensive. Their products are generally recognized.
brand rights and this fact gives them added value.

22
 All products put on the market by the Carrefour hypermarket are quality products.
however, they are differentiated as a result of the brand under which they are marketed.

THE PRICE
Among the components of the mix, in services, the price variable is characterized by a
a particularly complex character determined by the specific way in which it reflects the demand-supply relationship,
the relationships with the product, its promotional role, its perception by customers, etc.
Regarding the temporal variation of demand, Carrefour employs differentiated strategies.
price that involves setting the price levels, the length of the period for each level, the difference
among levels etc.
The service offering, Carrefour uses a strategy of distinctive pricing.
because the products are customized, and the sale and consumption take place without the existence
there is a connection with the consumption of the product as a whole, but the practice of pricing is also applied

combine (for example the offers of 2 products, on the second one purchased the price is half, or
offer 4 for the price of 3
The level and manner of price formation are complementary criteria that stand at
the basis of some types of combined strategic alternatives. In this case, Carrefour practices pricing
orient both according to competition and demand.
Competition-oriented prices entail establishing a correspondence between products
own and those of the competition, price differentiation and the targeted consumer segment.
Demand-oriented prices use a low-price strategy,
represented by psychological prices, encouragement and penetration, and the pricing strategy in which
value represents 'the quality received for the price paid' which implies price differentiation
depending on consumer segments by providing appropriately tailored services (of
example of granting discounts within a well-specified time frame).

PROMOTION

The products sold by the suppliers with whom collaboration has been decided enjoy
effective promotion and notoriety, for example: Coca Cola, Pepsi, Cappy, Tymbark, Nestea.
Thus, the presence of these products within Carrefour enhances the image of the hypermarket.

Placement

23
 The Carrefour hypermarket has a distribution network made up of many places of
performance with a large number of services.
Carrefour is trying to reduce costs by personally handling everything that means
the distribution of this brand because it is special and whose products would have a high price
if there had been intermediaries in the distribution chain, the expenses with them would have been added to
the price of the products. The "promotional flow" is used because the products go directly to
the final consumer. They receive information about the products, the description, the properties and
their characteristics, without an intermediary that distorts the image of the products.
Carrefour Iasi Shopping Center sources either from direct producers or
with the help of intermediaries (suppliers). Various economic agents send their sales agents
to discuss the opportunity of taking their products for sale in the commercial complex.

3. Description of hypermarkets

Carrefour Felicia Iaș i

TO PRAY
Monday-Saturday: 8:00-22:00
8:00 AM - 10:00 PM

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0232.205.050 / 0374.146.000
0232.234.131

Carrefour Era

Pacurari Road, No. 121, Iasi

TO PRAY
Monday-Saturday: 8:00 AM - 10:00 PM

Sunday: 8:00 AM - 10:00 PM

0232.421.400
0232.245.133 / 0232.246.133

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Carrefour Suceava

27 B Unirii Road Suceava

TO PRAY
Monday-Saturday: 8:00 AM - 10:00 PM

Sunday: 8:00 AM - 10:00 PM

0374.146.200
230.208.896 / 897

All Carrefour hypermarkets are retail, with products intended for

end consumers (individuals).

Swot

Strong points Weak points

-Large coverage of the Romanian market-Currently facing logistics issues
The company's profile is adapted.
the specifics of the market

Diversified product categories

Large spaces of hypermarkets

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 High notoriety among
consumers
Positioning strategic a
hypermarkets in the cities of the country

Low price policy

Opportunities Risks
Opening capacity for new - Road infrastructure the fool may
hypermarkets in the E region of the country are causing delays in the process of
(Iasi, Botosani, Vaslui, Piatra Neamt). to supply
- Competition very powerful
Carrefour, Kaufland, Cora, Plus, Billa

4. Management of offers

Grouping - Fractionation - Assortment

The category of products in the Refreshments section belongs to the category of products
industrial non-alcoholic drinks with a shelf life of > 1 year.

The splitting of orders is done for each hypermarket individually.

Commands and time framing

The supply will be made by a truck for each store individually, this will be
loaded with all the necessary products for each of the 3 hypermarkets in Ia ș i
Suceava. Each order will be sent at least 24 hours before the supply date.
The provision is made once a week, every Monday.

5. Management of stock breaks

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 The avoidance of a stock break issue will be prevented by adopting the creation of inventories.
finding the best option for such logistics services. We will also observe when
there is a need for restocking due to the decrease in stock of the number of products. Thus, a
Stock rupture could only be possible due to the carelessness of the warehouse staff.

In order to eliminate any risk of a stock rupture, a series of decisions have been made, such as:

- to constitute small reserve stocks in the warehouses of each hypermarket;

The products will be ordered through the logistics platforms.

Through the GPS trace and tracking system, cargo transportation is monitored and thus
this estimates the time the route of the cargo trucks from the central warehouse to the 3.
hypermarkets.

Chapter V

Transport and fleet

The need for transport

The distribution, which includes all activities that take place in time and space, from
the completion of the product before it enters final consumption, plays the role of intermediary between
productionandconsumption,ensuringthecompletionofactivitiesbytheproducerandobtainingbytheconsumer
fulfilling needs.

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 From our warehouse, the soft drinks will be transported to the three Carrefour centers.
thus: once a week to Carrefour Suceava in a larger quantity, and twice a
week to Carrefour Eraș i Felicia in Iaș i.

During the winter holidays, the Easter holidays, and during the summer, the amount that we will...
the transportation to the three sales points will be double the constant quantity that we will
transport in the remaining months. Namely:

if Coca Cola → 4,320 products in 2-liter bottles/week => 207,360 2l bottles/year.

From here we will calculate the need for a year taking into account the fact that four months/year are
consumes double quantities.
207.360 + (207.360/12) * 4 = 276.480 products in 2-liter bottles for one year.
Here, 5184 packaged products in cans will be added.
 Pepsi → 3744 products in 2 l bottles/week => 179,712 2l bottles/year.
The requirement for a year considering that four months/year consume double the amounts:
179.712 + (179.712 / 12) * 4 = 236.616 products in 2-liter bottles/year.
Here will be added 5184 canned packaged products.
Perla Harghitei -> 1152 products in 2-liter bottles/week => 55,296 bottles 2l/year.
The requirement for a year considering that four months/year consumes double the quantities:
55.296 + (55.296 / 12) * 4 = 73.728 products in 2-liter bottles/year.

2. Transportation Standards

Palletizing

For the transportation of products

For the transportation of dairy products, we have decided to use a truck. It will be used.
normal wooden box pallets. In the configuration of future orders, I took into account the sales
previously of Carrefour hypermarkets. The central warehouse receives goods from suppliers, at
each Tuesday and Friday of the week.

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Coca Cola - 30 pallets with 24 cases per pallet, each case has 6 bottles. Total: 4320.
products in 2-liter bottles

6 pallets with 36 boxes on each pallet, each box has 24 products. Total: 5184 products
unpack the can

Pepsi - 26 pallets with 24 boxes per pallet, each box contains 6 bottles. Total: 3744 products.
2 l bottles

6 pallets with 36 boxes each, each box contains 24 products. Total: 5184 products
pour the dose

Harghita Pearl: 8 pallets with 24 boxes each, each box contains 6 bottles. Total: 1152
products

Technical details

The new Eurocargo truck is built with an extremely robust chassis, designed for...
any casing should be easy to implement. The range of mounting is also very
generous, with sizes between 3105 mm and 6570 mm, to optimally meet each mission
for any length requested by a certain bodywork

Truck Brand Iveco Eurocargo

Manufactured: 2011
Consumption: diesel- 9 liters/ 100km
Power: 320 HP,
Euro 4
Cylindrical capacity: 7257 cm3
Total weight: 11.000 kg
Payload: 6500 kg unladen
Air conditioning
Airbag

DIESEL

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Suspensions: the configuration can be specifically designed for the truck's mode of use and
ensures comfort and an exceptional driving posture in all working conditions. Eurocargo offers
three types of suspensions: parabolic, semi-elliptical, and air, with the ECAS system (Electronically
controlled air suspension - electronically controlled air suspension. This system keeps the chassis at
a constant height on the road and can also raise or lower the chassis, depending on
on the nature of the charge.

Braking systems for trucks from 6 to 10 tons have been significantly improved.
significant, which brings our client the benefit of significantly reducing their costs of
maintenance. Eurocargo is equipped with disc brakes on the front and rear axles, across the entire range
4x2. ABS (Antilock Braking System) is standard equipment for all models. ABS coupled with
ASR (Anti-Slip), ESP (Electronic Stability Control) and Hill Holder are also available.
at request.

3. Route configuration

Transport planning

The supply of soft drinks Fanta, Sprite, Cappy, Poiana Negri, Mountain Dew
it will be done twice a week at the hypermarkets in Iasi, and at the one in Suceava one
Data per week. There will be a single truck operating on each route.

Route 1: central depot – Carrefour ERA Iasi

Route 2: central depot - Carrefour FELICIA Iasi
Route 3: central depot – Carrefour Suceava

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 The framing of transport in time and space

Central deposit

Carrefour ERA Iasi: 0.2 km in

0.010 h

Carrefour FELICIA Iasi: 10

km in 0.6 h

Carrefour Suceava: 150 km

in 2 hours

4. Fleet configuration
The size of the fleet

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 For the delivery of goods from the warehouse to the three Carrefour locations, the warehouse has a
fleet consisting of:

Three trucks (IVECO Stralis), driven by a single driver. Such a truck

has a maximum transport capacity of 33 europallets (1.2 m x 0.8 m), and with them
before the weekly deliveries to the Careefour centers;
- A van (Mercedes Sprinter) with a transport capacity of 8 euro pallets, used in
the case of stock breaks or additional merchandise requests;
- Three forklifts (Linde H16D-03) that will be used for loading pallets with
goods in trucks;
Three drivers: they do not need a replacement due to the relative transport distances.
short.

The reduced size of the fleet is due to the fact that two of the centers to which it operates
the branches are in Iaşi, and the third center, the one in Suceava, is located about
140 km, which can be covered in 2 hours and 30 minutes.

Fleet characteristics

Due to the short distances, each driver will work on a single truck, without companions. The first and
the second driver will deliver to the Carrefour Era and Carrefour Felicia centers in Iaș i, and the third
The driver will deliver goods to Carrefour Suceava.

Costs and investments

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 The main costs related to the transport fleet are represented by salary costs.
drivers, gasoline consumption, maintenance of trucks and forklifts. Investments
the acquisition costs of these machines are: 8,500 € per truck, 5,700 € per forklift
and €4,000 for the van. These were purchased second-hand, with the cost of the Euro being € = 4.4.
Ron, all having a total cost of 205,040 Ron.

Costs Value Total value

Salaries of drivers 2000 Ron/driver/month 6000 Ron/month
Truck maintenance 400 Ron/month 1200 Ron/month
Van maintenance 200 Ron/month 200 Ron/month
Gasoline 5.80 Ron/liter 6,495 Ron/month
Total 13895 Ron

5. Service and technical support

To ensure the proper functioning of the trucks and the van and for the conduct
the correct distribution process each month is subjected to a technical inspection for
detecting any malfunctions or irregularities. Maintenance of the vehicles is ensured by
the Neptun Service SRL service, in Iaș i, Bd. Independenț ei, where they will be subject to verification
brakes, belts of transmission of the oil of
of motors and axles of support a
of the remorses and of any other elements from
the truck cabin that not in accordance anymore
and could endanger the driver's life.

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