All united against the expensive life!!

ByMarvin Chauve

&Julie Dumas

Les Mousquetaires, Intermarché

Enterprise are essential for economic system :

• Places of production and distribution of products of consumption => Mouvement of Money.

• Several competitors :

Plan

I) Presentation of the group Les Mousquetaires, Intermarché.

II) The Strategies of Les Mousquetaires, Intermarché : A) The Vertical Integration.B) The Diversification.

III) Why they have chosen those 2 strategies ?

Presentation of the group Les Mousquetaires, Intermarché :

• Company established in 1969 with the name : EX Offices de distribution

• By Jean-Pierre Le Roch

• In 1972, the EX became Les Mousquetaires, headquarters settled down in Paris.

Presentation of the group Les Mousquetaires, Intermarché :

• On June 9th 2009, Les Mousquetaires announced the extension of the name Intermarché for all their food subsidiaries except Netto.

New visual identity

Presentation of the group Les Mousquetaires, Intermarché :

The sign is declined according the sales area and its localization :

Intermarché Hyper for largest stores, more than 3200 square meter.

Intermarché Super for stores around 2000 square meter. Most stores with the old concept of Les Mousquetaires.

Intermarché Express for retail outlets less than 1000 squatter meter. This type of store is located in large cities : Paris, Lyon, Lille, Toulouse, Nice, …

• 24 Intermarché Express in 2011• 50 by the end of 2012

Presentation of the group Les Mousquetaires, Intermarché :

Intermarché Contact replaces the old Ecomarché in the rural areas.

• In 2002, total sales areas more than 2.66 million square meters.

Presentation of the group Les Mousquetaires, Intermarché :

• Intermarché has its own brand : Top Budget

• Top Budget includes more than 450 food products : 50% or 75% cheaper than products of top brand.

Presentation of the group Les Mousquetaires, Intermarché :

• The slogan of Intermarché is:

All united Against

The expensive life!!

The strategies of Les Mousquetaires, Intermarché : V.I

What is The vertical Integration ?

Vertical Integration is an approach to increase or decrease the level of control that a company has on its products as input and product distribution of outputs. With Vertical Integration enterprises control more than one of the successive production stages.

The strategies of Les Mousquetaires, Intermarché : V.I

There are two types of Vertical Integration:

• Backward Integration

• Forward integration.

The strategies of Les Mousquetaires, Intermarché : V.I

• The Backward Integration :

The Backward Integration integrates the preceding production stages of a product. The enterprise has a control of its product of input or its alimentation. This type of Integration is also called the upstream expansion.

The strategies of Les Mousquetaires, Intermarché : V.I

• The Backward Integration :

Raw Materials

Intermediate Manufacturing&

ASSEMBLY

Distribution : Supermarket Intermarché

End customer

The strategies of Les Mousquetaires, Intermarché : V.I

• The Forward Integration :

Also called the downstream expansion. This integration integrates the next production stage and allows the firm to control the distribution.

The strategies of Les Mousquetaires, Intermarché : V.I

Raw Materials

Intermediate Manufacturing

ASSEMBLY&

Distribution : Supermarket Intermarché

End customer

The strategies of Les Mousquetaires, Intermarché : V.I

• The Internal expension : The firm creates a new line of production.

• The External expension : The firm buy an existing compagny.

No more opportunism with subcontractors.

More efficient.Prices of products sold more low.

The strategies of Les Mousquetaires, Intermarché : V.I

• Intermarché is the only one in France to have its own fishing boats:

- 40 fishings boats - 33 000 tons of fish per year - 20000 tons for Intermarché - One thousand of workers thanks to fishing boats.

The strategies of Les Mousquetaires, Intermarché : V.I

• Gulf Stream for fresh fish.• Captain Cook for smoked fish and canned fish.• Captain Houat & Odysée for frozen fish

The strategies of Les Mousquetaires, Intermarché : V.I

• Intermarché is also the owner of 6O factories, mainly in food-processing industry:

- Bouton d’Or

- A gigantic slaughterhouse - A canning vegetable and even water sources minerals - A wine factory

The strategies of Les Mousquetaires, Intermarché : V.I

• Most part of all industries are located in western France.

The strategies of Les Mousquetaires, Intermarché : V.I

• 38% of products purchased in Intermarché are from its own factories.

• Today Intermarché is the head of a small industrial empire of 9,000 employees who weighs 2.8 billion in revenue.

The goal of Intermarché : To make 4 million euros of turnover per year by 2015. To take part of the top 5 of the big French

Food-processing industries

The strategies of Les Mousquetaires, Intermarché : Diversification.

• Strategy used to expend firm’s operations by adding new markets, new products, new services, or new stages of production to the existing business.

• Goal : To allow the company to enter linesof business that are different from current operations.

The strategies of Les Mousquetaires, Intermarché : Diversification.

• In 1979 Les Mousquetaires are studying several possible path of development.

foundation of Bricomarché the same year.

In 1980 : Restaumarché.

The strategies of Les Mousquetaires, Intermarché : Diversification.

• In 1982 : Stationmarché, today called

• Restaurant :

Why they have chosen those two strategies ?

To be one of the biggest French food-processing.

To control quality, quantity. Avoid opportunism of subcontractor.To sell product with a low price.To take a big part of the market

All United Against the expensive life !!

The End