Metro
Metro
METRO
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 professional customers such as hotels, restaurant, and
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.
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.
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 group’s 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.
METRO in Pakistan
METRO Cash & Carry announced its operations in Pakistan in
January 2006. Since then, it has established itself as a potential
market leader in wholesale.
Under the supervision of Managing Director Mr. Giovanni Soranzo,
METRO Cash & Carry Pakistan has opened its first store in the city
of Lahore in October 2007.
The company’s country head office is also based in Lahore and
currently employs over 400 people in two offices.
.
METRO Cash & Carry’s
commitment to Pakistan is
also echoed in its donations to
the President’s Earthquake
Relief Fund.– The company
donated €100 000 in January
2006 towards
President's Earthquake Relief
Fund. It also has plans to fund
development activities in the country in association with the German
Investment and Development Company. Such activities have
successfully been carried out in other countries. A recent example in
Vietnam and a similar program for fishermen and sheep farmers in
India where more than 900 fishing crew and 18,500 sheep farmers
were trained about the best practices.
Food
1. Fresh
2.DryFood
The Dry Food department comprises edible grocery, canned goods, beverages,
sweets, confectionery, as well as detergents and toiletries.
Special attention is given to the storage of high quality grocery items such as rice,
pulses, lentils, spices, etc., to maintain their colour, texture, and aroma. A separate
area has been designated for spices and nuts for the ease and comfort of
customers. They have their Halal certificate for verification.
3.Hygiene&Sanitation
Metro is extra cautious about the hygiene and sanitation conditions to be ensured by
theirr suppliers especially for fresh food items.
Not only that we ask our suppliers to follow the quality standards, we also apply strict
hygiene and sanitation requirements in the day-to-day operations of our stores.
We only buy products that are hygienically prepared and properly handled at source
by suppliers. We ensure that sanitation measures are a key part of their production
and processing procedures.
LAYOUT OF DEPARTMENTS
Metro has designed their departments in such a way that all the
products of the same kind like fresh food, non-food & dry-food etc.
are grouped together. For the convenience of the customers
currently they have 16 departments and they are:
• Process Layout
• Fixed-Position Layout
PROCESS LAYOUT
In this kind of layout, one has to group similar resources together
CLASSIC
This kind of layout is above 10,000 sqm
JUNIOR
This kind of layout is equal to 10,000 sqm i.e 120 kanals
ECHO
This layout is between 5000-6000 sqm
Suppliers
Metro is outsourcing this service by hiring “Logistic Company”
for transportation services
Customers
Metro is catering not only for the customers of Lahore but also
outside areas like Gujranwala, Sheikupura & Sargodha
Labor
In metro, most of the work is being done by the labor. So it is
important for Metro to choose such a location in which labor
supply is adequate
Site considerations
Metro also considers the following factors while choosing the
location, they have local zoning & taxes, access to utilities, utility
cost, soil conditions, climate, adequate drainage, approach roads,
parking and etc.
Support services
Metro gives warranty depending on the type of product purchased.
Example it gives warranty on its electronics.
Psychological
It has a good ambience, staff is friendly & responsive.
Team Approach
“COMPARATIVE ANALYSIS
Regarding competition”
There is one major competitor in pakistan’s whole
sale industry and that is Makro.
• Both use News papers, internet, pamphlets and book lets
because it contains detailed introduction about the business
and its products.
• Both Metro and Makro are in a wholesale business
• Metro has trained staff while Makro has just hired sales person
• Metro follows the same layout all over the world and Makro
does not
• Metro places its inventory in its store and warehouse, while
Makro places inventory only in store it does not has any
warehouse
Opportunities:
1. Changing trend of shopping, people prefer to go the place where they
can find maximum variety under one roof.
2. Metro is planning to open new stores at different locations.
3. Company name itself is an opportunity as “Metro” itself is a very
popular name and they can expand business with any company they
like to.
4. People are coming more towards hygienic food.
Threats:
1. Launch of Wal-Mart in Pakistan.
2. Inflation
3. Government instability
4. Terrorism
Strength:
1. Largest whole seller platform.
2. They are selling few products with their own brand name.
3. Metro don’t spend money on advertisements through electronic
media.
4. Metro is operating their business according to the buying pattern of
the customers.
5. Metro Values its Employees and Customers.
6. Defined format adapted to local market needs
7. Efficient and low-cost operations
Weakness
1. Not providing goods on credit bases.
2. Location of the store is quite far away.
3. Only deals in wholesales.
4. Relatively poor security check and balance on few items.
5. High priced imported items.
4 P’s at Metro
Product:
They give more attention on Fast moving consumer goods but they don’t
give service after sale because they follow such standards which cause 0.2
% error occurrence ratio regarding defected products
Price:
if we observe the prices of Metro then we come to know that they are
providing unique prices as compare to their competition ,they give quantity
discount to their customer most of the time and which is their core
competency with respect to Industry of whole sellers.
Promotion:
when we observe their Promotion strategy then we see that most of the time
they promote their name with the following promotions.
• News Papers
• Magazines
• Bill board
• Pamphlets
• Catalogs
Place or Placement:
When metro came in Pakistan it observe that Makro its major competitor was operating
in that area where people face so much traffic problem so they chose the place in Lahore
near Thokar Niaz baig road which was less traffic area customer have motorway
(highway) to reach here even from other cities. And they place some products to
customers at their desired place but it requires specific amount and distance regarding
shopping.
Metro faces many tactical issues because they have to change their
inventory after every 14 days on Thursdays. They need very active
workforce which shifts inventory from the top into the shelf space for
this. On the cash counter they face problem of queues.