1. Describe Leader Price according to the different types of retailers discussed in the chapter.
2. As a retail brand, assess the Leader Price strategy with respect to segmentation, targeting, differentiation, and positioning.
3. List all the reasons why Leader Price has been able to compete with regular convenience stores.
4. Would the Leader Price model be successful in your country? What would have to be changed to adapt to your culture? Support your answer.
5. How can Leader Price expand its selection of products in a way that will cater to more customers?
Leader Price has emerged as one of France's leading discount stores. It presents itself as "the smart choice for living well." In a society known for seeking value-oriented items and practicing responsible spending, Leader Price has reached a well-earned spot among the major players in the country. Leader Price Holding was founded in 1998 as a subsidiary of Groupe Casino, which ranks as the fifth biggest food retailer in France. It came in to complete the group's already existing brands, which are the Giant Casino hypermarkets; Casino supermarkets; Monoprix, which is targeted at an urban clientele and emphasizes high quality; Petit Casino markets, which are small convenience stores; and finally Naturalia, which carries only organic products and caters to the health conscious.
In food retailing in France, hypermarkets are dominating the sector. The turn over of Carrefour, the market leader, in 2011 was 35,179 million euros, whereas Groupe Casino's turnover amounted to 18,748 million euros, but it is worth noting that the number of stores owned by Carrefour is 4,631, while those owned by Groupe Casino total 9,461. Of course, as most of Carrefour's stores are of large square footage and are usually located on the outskirts of urban areas, even with fewer stores than its competitors it is able to exceed their numbers. In terms of discount stores, the German Lidl and Aldi have the largest market shares of hard discount stores in France. With the hype of discount retailing in France, even the largest chains have been trying to develop their versions of discount stores. French names such as Carrefour, Casino, and Leclerc have launched a new arm of discount stores.
Leader Price is unique in the way it portrays itself as committed to providing French families with their entire daily needs with simplicity. Its unique selling proposition is offering low prices while maintaining quality. The array of products is carefully selected so that the consumer doesn't need to look elsewhere for better value for the money. This also makes the shopping experience a simple and pleasant one, as the number of products is limited in each category. Besides regular fast-moving consumer goods, Leader Price sells a variety of seasonal fresh fruits, vegetables, and meats supplied every day to guarantee quality.