24465504 metro in pakistan

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THE LEADERS Superior Group of College Page 1 of 6

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Retail Management

MBA Professional (Evening)

Section X

Session 2007-09

Group Profile

Group Name The Leaders

Group Logo

Group Slogan DARE TO LEAD


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Members Detail


KHALID AZEEM 8257

AHMAD IKRAM 8278

AHMAD KHAN 8259

ADIL NAWAZ 8249

FARHAN BUTT 8227

BILAL RASHEED 8231


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DEDICATION



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We are dedicating our work to our parents and respected teacher

PROF. Asim Jamil, who have played a vital role in our studies

and have guided us at every step with their precious ideas. No

doubt this dedication is insufficient and we can never repay forthe role they have played in our studies but we are sure that his

work will prove itself an asset in our life.

ACKNOWLEDGEMENT

We are very thankful to SARDAR ABID ALI KHAN who helped

a lot us by giving up to date information.



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We are very proud of our teacher Prof. Asim Jamil, whose help

and instructions enable us to bind papers into project manner.

We are very thankful to him.

Company History

METRO Cash & Carry is a leading international company inself-service wholesale and operates more than 600 outlets

in 29 countries. With over 100,000 employees worldwide,

the company achieved sales of 31.7 billion in 2007. By

generating almost 50 percent of the total sales, METRO

Cash & Carry is the top-selling sales brand of the METRO

Group. Assortment and service of METRO Cash & Carrys

unique business-to-business model are targeted only towards

professional customers such as hotels and restaurants as well as smalland mid-sized retailers or institutions. The company offers these special

groups a high level of assortment competency both in food and nonfood

as well as attractive wholesale prices. An efficient and internationally

conferrable concept ensures success in entering new markets.

METRO Cash & Carry A story of expansion



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The self-service wholesale trade came to Europe in the year 1964 when

METRO SB-Gromrkte GmbH & Co. KG was founded in

Mlheim/Ruhr. The initiator and driving force behind this concept was

Prof. Dr. Otto Beisheim. In 1967 the Franz Haniel & Cie. company

became a partner in the new venture. Prof. Dr. Otto Beisheim, the Franz

Haniel & Cie. GmbH company and the Schmidt-Ruthenbeck family then

each held one third of the shares in the German METRO activities and

thus constituted the original group of partners.

As from the year 1968 the concept was extended beyond the German

borders, with the Dutch company Steenkolen Handelsvereeniging N.V.

(SHV) as a new partner. The two sides jointly established Makro

Zelfbedienigsgroothandel C.V. with the original group of partners holding

40 percent of the shares in this activity. Within the framework of a first

major expansion drive METRO/MAKRO Cash & Carry entered the

market in nine Western European countries by 1972. In the nineties,

METRO Cash & Carry expanded its activities to Portugal, Turkey,

Morocco and to Eastern Europe.

In July 1996 METRO Cash & Carry merged with Kaufhof Holding AG

and Asko Deutsche Kaufhaus AG and the METRO Group was founded.

That year also saw the groups going public. The Metro stock is the only

retail stock listed in the German blue-chip index DAX 30.The first step into Asia was taken when METRO Cash & Carry moved

into China in 1996. Today the company is present in 5 Asian countries:

China, India, Japan, Pakistan and Vietnam. The METRO Cash & Carry

business is going to be further internationalized and expanded with the

focus on Eastern Europe and Asia. Already by today, more than 80

percent of the staff is working outside of Germany. In many countries the

company is on of the major employers.

What is METRO Cash & Carry?

METRO Cash & Carry this name stands for one of the great success

stories in modern commerce. The unique wholesale business-to-

business model of METRO Cash & Carry is focused only towards



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professional customers such as hotels, restaurant, caterers as well as

small and mid-sized retailers. METRO Cash & Carry offers this target

group a greater efficiency than the multilayered supply chain thus

helping them to improve their business: By offering them a one-stop

solution for their purchases, by helping them to improve their

assortment, by offering them high quality products at reasonable and

transparent prices and by offering them

a consistent supply source.

What does METRO offer?

METRO Cash & Carry is a reliable

partner for more than 20 million

professional customers worldwide. It

gives them a clear competitive

advantage in their own markets.

Professionals can purchase everything

they need to run their business: A restaurant owner, for example, can

buy food like fish or vegetables as well as kitchen equipment and office

supplies.

METRO Cash & Carry offers an exceptionally wide range of high-quality

products under one roof. Depending on the size and type of wholesale

center, the assortment includes up to 20,000 items in the food range and30,000 items in the nonfood sector. As the name implies, METRO Cash

& Carry customers select their own items and take them with them to

their restaurants and shops. With this unique business-to-business

concept, the company has grown to become a leading international

player in self-service wholesale.

METRO in Pakistan

METRO Cash & Carry announced its operations in Pakistan in January2006. Since then, it has established itself as a potential market leader inwholesale.Under the supervision of Managing Director Mr. Giovanni Soranzo,METRO Cash & Carry Pakistan has opened its first store in the city ofLahore in October 2007.



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The companys country head office is also based in Lahore and currentlyemploys over 400 people in two offices.



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METRO Cash & Carry Pakistan (Pvt.) Ltd.

Main Air Port Road, DHA, Near Divine Garden Scheme,

Lahore 54792.

Pakistan

Telephone: +92 (0)42 35609000

Fax: +92 (0)42 35702100.

10 METRO Cash & Carry principles

The success of the company is based on the following principles:

Focus on professional customers

One-stop shopping

Efficient store concept designed for professional needs

Advanced customer service

Enhanced customers competitiveness



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Excellence in supply chain and quality management

Strengthening of local suppliers

Development of national infrastructures

Career opportunities

internationally transferable concept

Product range

Each store is tailored to address the needs of professional customers.We offer a wholesale price that leaves the customer room for healthymargins and provide a one-stop-shop for the customer.

In the food range, freshness is our first priority. This is guaranteed by the

efficient supply-chain and quality control management we have in-place.

In non-food, we offer only products that are up-to-date in terms oftechnology and design, and meet all safety standards.

Food

At the METRO wholesale center you can find a wide range of foodproducts



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Dairy, Frozen

Meat

Fresh Fish & Seafood

Fruits & Vegetables

Edible Groceries, Canned Goods and Bakery

Sweets and Confectionary

General Grocery

Tobacco and Beverages

DetergentsCosmetics & Toiletries

Non Food



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Office EquipmentMedia , Radio & AccessoriesHome Electronics/House HoldHousehold Goods

Pots & Pans (Tefal, Sonex, Majestic, Prestige) Tableware (Luminarc, Clayworks) Glass (Pasabache, Bormioli Rocco, Toyonasic, Ocean) Cutlery & Cutting Tools (Cocktail, Kiwi) Kitchen Utensils & Serving Articles (Fackleman). The range also include decoration products (Walther Glass), Candles Cleaning items.

Home Improvement/DIY (Do it Yourself)

Lamp fixtures, lamps & bulbs (OSRAM, PHILIPS) Electrical items (BUSH) Bathroom & Sanitary (Faisal & ICL) Flooring (Krono Flooring) Paints and painting accessories (ICI,Master Paints) General use and specialized hand tools (Stanley) Power tools (BOSCH, Black & Decker)

Generators (Honda) and operating equipment.

DIY also offers a wide range of car interior and exterior equipment, carcare solutions (MOTHERS, COSMIC) and good quality tyres at low rates(GOODYEAR, NEXEN).Home Textile/Home DecorationLadies wear/Mens wear/Childrens wear/Shoes/LuggageSports & Seasonal

METRO own brands

In several food and non-food product categories METRO Cash & Carryoffers a wide range of its own brands. These brands are highly popularacross the globe.

The availability of these brands allow our customers to save money



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without compromising on the quality for which we are famous and feelproud of it.Their brands are following

AlaskaFairlineEnhil

All of these three are related to electronics equipments.

Identify the type of retail outlet, and type of ownership.

The Metro categorized itself as a wholesaler. They sell in bulk quantity. We

can say that they are business to business sellers. The type of ownership isSole Proprietorship. There is only one Person who is the Owner of Metro all

over the world. There are more than 600 hundred branches all over the

world.

Has the retail outlet identified its target market and competitors? If so

describe the target market, and identify the competitors, of the store?

According to them they are HORECA which offers products to

Shopkeepers, Hotels, restaurants and canteens. Metro have no any competitor in the Market of

such a standard. They are unique in the Pakistani Market.

Is the store management making efforts Building Sustainable

Competitive Advantage, and loyalty program with the help of

positioning, service, database retailing, and unique merchandise? If so

how?

Metro is leader in such a situation. It has no any strong competitor as well.

But they have made strong position in the mind of consumers. They haveinternational GMS system which handles their management system. Their

system is made by Germany. The system is online which collect data and

create data base of INVENTORY and customers.

They call their platinum customers to have proper feedback and solve their

problems. In this way they successfully create customer Loyalty.



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What kind of vendor relation do they have? Are they deriving any kind

benefit out of that relationship? Pen down the details.

They have almost all famous companies with them. They directly purchase

through companies in very huge bulk quantity. They contract with

companies and get best quality and quantity.

On the other hand the companies also save their cost, because companies put

their stock in METRO at once. And they purchase on debt, the terms of debt

vary company to company.

How does the retailer motivate its employees does it help in retaining

them?

The bonus, benefits and incentives are given to employees. They have

created a strong culture. They arrange different Picnic trips and other

function to entertain and motivate their employees.

How do they keep the operation low cost? And build multiple sources of

advantage?

When they purchase in huge bulk they got reasonable discount as comparedto others. On other Metro is self services wholesaler, so they reduce their

cost in customer services. But most of the companies send their own sale

representative to Metro on their own stall to facilitate the customer I

purchasing the product

What kind of growth strategies do they follow, like market penetration,

Market expansion, retail format development, and or diversification?

They have adopted market penetration strategy. They are now working hardto create more and more business. They are now investing more on their

business retailer.



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How do they define their Mission statement?

Mission Statement

"Metro is a Cash & Carry Distributor for businesses andprofessionals. Metro provides quality products and business solutions

at the lowest possible prices".

Are they carrying Strength and Weakness analysis?

They have ATM facility at their store, they also offer installment plans in

which bank is involved. (HABIB BANK LIMITED)IT is also their strength that they do not have strong competitor at their level.

The registered business person can refund GST (General sales tax which he

has paid on metro) when paying the tax to FBR (FEDERAL Board of

Revenue)

What is the basis of selecting their retail site? Please give details.

The Metro mostly select the site at the extreme corners of any city the

location that they have selected near AirPort is surrounded by DHA

PUNJAB COOPERATIVE and other societies, As we know that the finalconsumer is not a target of Metro, they are focusing Business and Business

Class which mostly lives in that areas.What kind of retail organization structure do they have? Is it single

store, regional department store chain, corporate organization of a

regional department chain, or any other type? Please discuss in detail.

The Metro classifies itself as business to business wholesaler. They are

following vertical organizational structure with proper hierarchy. At each

level the authority and span of control is predefined



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The hierarchy starts with store manager and there are Four Flour managers

and each manager controls 10 Departments and there are total 40

Departments. The proper authority and moderate Spam of control make itpossible to operate functions efficiently.

What kind of incentives do they offer to their employees?

Normally incentives are given to them on basis of their performance. The

incentives in the form of bonus are mostly given in Metro store. On

quarterly basis the performance is analyzed and rewards are given to

employess.

How are they managing diversity in their workforce?

The Metro is accommodating divers workforce at their working area their

training is carried out to manage them properly


Store Manager

Floor Manager Floor manager Floor manager

Department

Manager

Department

ManagerDepartment

Manager

Floor manager

Department

Manager

Assistant

Department Manager

Store Associates


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Do they have CRM in place and how do they manage it?

The Metro has created CRM successfully with its customers. Their Data

Base deals with the customer information. They also call to their platinum

customers. In cause of problem they sincerely solve it.On other hand Metro create CRM through his offers. They distribute

magazines monthly to their registered customers. This trend is deeply

practiced by Metro only in Pakistan.

How do they evaluate store employees and provide feedback?

They evaluate their employs on the basis of their Task. The Monthly

performance reports are prepared. After evaluation the hardworking employs

are promoted as well as rewarded.Metro also have a teaching staff to train their existing and new staff.

What steps do they take to detect / prevent shoplifting?

The shop lifting is common all over the world. Metro has created a strategy

to minimize this loss. They place a tag or Sticker on every single piece of

product. When shop lifter try to take any product without billing. The

Automatic scanner on Exit gates are activated and detect the bar code (which

is pasted or tagged on product). The shoplifters have to pay double of the

price. Other wise they are given in the custody of Police.

What are your overall evaluations of the store? In your point of view

what are the critical success factors of the store? And what are your

suggestions to further improve the stores business?

The setup of Metro is good and standardized. They have gained competitive

advantage. But it will take time to change the perception of Local retailer.

On the other hand the prices of products not have much difference as

compared to local market. There is a miner difference in their prices. Onlybig retailer can have fruit of Metro.

They have better Parking Place then others.



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Suggestions

The Metro should facilitate Local consumer. In simple words they

need to break bulk.

There should be more branches of metro in Pakistan.

They should also invite international brands to enter in Pakistan.

There should also be facility of E-retailing on Metro Site.

They can start Metro Cards to salaried Persons. The Card should beworth of 5000-100000Rps. It will be new in Pakistan and easy for

salaried persons to accommodate their salary on Merchandise.

They should also start charity related activities to attract customers

and help desired peoples.


24465504 metro in pakistan

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