INTRODUCTION TO MARKETING 2 – LEADER PRICE CASE

SECTION A CLASS (13H00 - 16H00)

DEGBE LANGLOIS Emmie B00814185

KO Bokyung B00810615
TRAN Alisa B00812056
TRAN Hai Binh B00812344

1. Evaluate the Leader Price’s strategy with respect to segmentation, targeting,

differentiation and positioning.

For segmentation, Leader Price identifies several segments according to its competitors
position. Firstly, the difference is identified with elements such as “city” stores and “city off-
center” stores, which is based on a geographical dimension. Another element that highlights
its distinction is for “quality seeking” customers such as the Monoprix or Naturalia clientèle,
in contrast to “value for money” customers which will look for discount stores.

In terms of targeting, Leader Price is mostly aiming at a combination of "city stores'' and
“value for money” segments. Indeed, they focus on French families, looking for convenient
and responsible spending alternatives by providing them with an easy solution. Within this
large segment, several others are targeted by the numerous product lines of the brand. With
explicit product lines such as “Leader Price Baby” or “Leader Price Bio”, the retailer is
indicating clearly to the consumers that they have what they are looking for. This leads to a
brief wrap-up that explains the aim of the discount shop, emphasizing the fact that there is
no need for customers to go to a different store to meet their specific needs.

Leader Price differentiates itself from other retailers and discount stores mostly by its limited
amount of products. Among the 4000 products, 3000 of them are produced from Leader
Price. These allow customers to have an easy and simple shopping experience by reducing
the array of options for one product. Leader prices also display 300 products from large
brands and groups at a discounted price relative to other retailers' stores, attracting “loyal”
customers from big groups such as Coca Cola.
To conclude, Leader Price mostly differentiates itself through low prices, easy shopping
experience through discounter channels.

In consumers’ minds, Leader Price positions itself as the convenience choice that is easy to
find and access, as well as being family-friendly. Thanks to its strategic stores locations, its
cheap options and its essential stands out for the customers.

2. List the reasons why Leader Price has been able to compete with regular
convenience stores.

- Unique selling proposition (offering low price while maintaining quality)

- The array of products is carefully selected, meaning the number of products in each
category is limited. so that the consumer doesn't need to look elsewhere for a better V4M.
This also gives them the ability to reach a wide audience.
- They sell a variety of seasonal fresh fruits, vegetables and meats supplied everyday to
ensure freshness and quality.
- Most stores are located in places where parking is easy, making them difficult to miss.
- They invested in making their stores more visually pleasing which enhances the shopping
experience.
- They offer discount vouchers and catalogs with further price cuts as well as momentary
offers as a promotional strategy.

3. Leader Price is part of the Casino group, which included Casino Super, Monoprix.
Petit Casino, Naturalia, and others. Briefly describe how each positions itself and
what segments they likely target.

Casino Super and Monoprix position themselves as high-quality product suppliers. In terms
of targeting segments, they seem to focus on geographical domains, targeting individuals in
urban areas as well as targeting individuals who pay attention to product’s quality, which
focuses on behavioral targeting.

Petit Casino positions itself as a small convenience store and easy to approach, with an
arranged selection of items which leads to individuals saving time in purchasing their
necessities. The store seems to be designed to target all segments,

Naturalia, as a subsidiary company of Monoprix, focuses on products based on organic

farming, biodynamic agriculture, as well as organic cosmetics and eco-products. It aims to
position itself as a niche food supplier that provides mostly organic products. In terms of
segment targeting, it concentrates on behavioral segmentation with high health
consciousness, attracted to BIO.

4. If Leader Price were to expand its selection of products, what products should they
add? Please justify your reasons. Do you think this is a good idea? Why or why not?

Various selections of products in Leader Price are already displayed with the intention for the
customers to not shift shops when deciding their purchases. However, expanding its
selection of products could be a change to attract more customers. Leader Price could try to
incorporate locally sourced products which could be considered more fresh and sustainable.
As Leader Price is known for the reliability of their products supported by other chains, this
change would be considered positive.

Moreover, Leader Price could also take in consideration of adding plant-based and vegan
alternatives as well as hygiene products. This will be able to show that it has a diverse
product range like big shops, and allow the customers to fulfill their needs directly. In
addition, this could give Leader Price a competitive advantage over other retailers, showing
that they offer various products, portraying its image of “good quality, low price.”

Nevertheless, the propositions above may be mitigated by Leader Price with the facts that
the discount store already provides various products for specific categories, answering
customers’ essential needs. The expansion of selection of products will have to be
considered before implementing such changes, as it may lead to overstocking and waste.