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Case study on:

Metro
Cash & carry
Group: 11
Subhabrata Saha
Suproteek Sinha
Harshda Gaur
Udit Bansal
Sarin P
Table of Contents
• Retailing
• Challenges faced by big players
• Rural Retailing:
• Reason of the Growth:
• Division of retail:
• Metro Cash & Carry:
• Metro Cash & Carry in India:
• SWOT Analysis of Metro:
• VARIOUS FORMS OF MANAGEMENT
• LOGISTICS DEPARTMENT HIERARCHY OF METRO
• THE SUPPLIER RELATIONSHIP MANAGEMENT
• VARIOUS ISSUES INVOLVED:
• Suggestions:
Retailing
• The word 'retail' is derived from the French word 'retailer' meaning 'to cut a
piece off' or 'to break bulk'. In simple terms it involves activities whereby
product or services are sold to final consumers in small quantities.
• The whole concept of shopping in India has altered in terms of format and
consumer buying behaviour, resulting in a revolution in shopping in India.
• It is one of the most dynamic and fast paced industries with several player
entering the market.
• Modern retail has entered India as seen in sprawling shopping centres,
multi-storied malls and huge complexes offer shopping, entertainment and
food all under one roof.
Challenges faced by big players

• Although the organized retailing in India is coming up in a big way, it cannot


simply ignore the competition from the conventional stores because of
various factors.
Extending credit facility.
Other intangible factors like the human touch provided only by the
conventional stores.
Rural Retailing:

• The trends in the rural market also have been changing from the old Haats
and Meals to
The rural malls like ‘ChaupalSagar’ launched by ITC
DCM Shriram Groups one-stop shopping destination called ‘Hariyali Bazaar’
Godrej groups agricultural store ‘Andhra’ etc
Reason of the Growth:

• This emergence of organized retailing has been due to the demographic and psychographic
changes taking place in the life of urban consumers.
Growing number of nuclear families.
Working women.
Greater work pressure.
Increased commuting time.
• All the above reasons have changed the needs and wants of consumers shifted from just
being Cost and Relationship driven to Brand and Experience driven, while the Value
element still dominating the buying decisions.
Division of retail:

• Organised retail:
 IT refers to trading activities undertaken by licensed retailers, that is, those who are registered
for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail
chains, and also the privately owned large retail businesses.
• Unorganised Retail :
This on the other hand, refers to the traditional formats of low-cost retailing, for
example, the local kiranashops, owner manned general stores, pan/beedi shops,
convenience stores, hand cart and pavement vendors etc.
Metro Cash & Carry:

• METROCash & Carry is an international self-service wholesaler. It operates across Europe and
in some countries of Asia and Northern Africa. It is the largest sales division of the German
trade and retail giant MetroAG.
• METROCash & Carry is different from B2C retail chains (such asWalmart, Carrefour or Tesco)
in that its business concept is targeted towards professional customers rather than end
consumers. The cash-and-carry concept is based around self-service and bulk buying. METRO
Cash & Carry serves to registered customers only. Core customer groups are hotels,
restaurants, caterers, traders and other business professionals.
Metro Cash & Carry in India:

• METRO Cash & Carry entered the Indian market in 1996. The company currently operates
twenty-four wholesale distribution centers including six in Bangalore, four in Hyderabad,
two each in Mumbai and Delhi, and one each in Kolkata, Jaipur, Jalandhar, Amritsar,
Vijayawada, Ahmedabad, Surat, Indore and Lucknow.

• METRO Cash & Carry India’s core customers include small retailers and kirana stores, hotels,
restaurants and caterers (HoReCa), corporates, SMEs, all types of offices, companies and
institutions, as well as self-employed professionals. Only business customers are allowed to
purchase at METRO, all of them duly registered and provided with a customer registration
card.
SWOT Analysis of Metro:
• Strengths:
• Pure and natural products
• Qualified staff
• Strong financial backup
• Good network
• Fulfill the international quality standards
• Effective market research campaign
• Largest whole seller platform.
• They are selling few products with their own brand name.
• Metro don’t spend money on advertisements through electronic media.
• Metro Values its Employees and Customers.
• Weakness:
• Stores are at located at remote areas
• Tax evaders sell product on much less prices and retailers blackmail for better profit margins.
• Not providing goods on credit bases.
• Location of the store is quite far away.
• Only deals in wholesales.
• Relatively poor security check and balance on few items.
• High priced imported items
• Opportunities:
• Diversification of products
• Addition of new varieties
• Modification according to present requirement
• Changing trend of shopping, people prefer to go the place where they can find maximum
variety under one roof.
• Metro is planning to open new stores at different locations.
• 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.
• People are coming more towards hygienic food.
• Threats:
• Instable political conditions
• Discounts offered by competitors
• Less awareness of markets
• Launch of Wall-Marts
• Inflation
• Government instability
VARIOUS FORMS OF MANAGEMENT

• Supply Chain Management:


A supply chain consists of three types of entities: customers, a producer, and the producer's
suppliers. The extended supply chain includes customers’ customers and suppliers’ suppliers.
Supply chain management oversees and optimizes the processes of acquiring inputs from
suppliers (purchasing), converting those inputs into a finished product (production), and
delivering those products – or outputs - to customers.
• Cold Chain Management:
The distribution of products that are temperature-sensitive is a huge challenge. Quality and
freshness can only be assured if the goods are constantly kept under a temperature controlled
environment, right from the time they leave the producer till they reach the customer.
LOGISTICS DEPARTMENT HIERARCHY OF METRO:

• The Floor manager and the store manager can make the
order demand in system. After that the order demand is
delivered to supplier automatically through the system.
Stock demand is issued by the supervisor to the floor
manager or the stock manager. Sales person report the
supervisor about demand. After that supervisor inform
the store manager for the stock replacement.
THE SUPPLIER RELATIONSHIP
MANAGEMENT :

• The best categorization according to which Metro Cash & Carry can choose
its suppliers is represented by:
The respect of delivery time
The power of suppliers in establishing pricing policy
The balanced between volume and discount of purchasing
The strategy and ways according of which those products are well known –
commercializing
The percentage contribution at the Metro Cash & Carry profit
VARIOUS ISSUES INVOLVED:

• Tactical issues & Queues: 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.
• Positioning & Segmentation issues: Metro position itself as a wholesaler
brand in India but people who don’t have retail stores they also come here
and shop, according to the analysis, they target only businesses and they
should position their brand also for ordinary customers who use products in
their homes.
Suggestions:

• To increase the awareness, Metro needs to adopt a new marketing strategy.


• Mobile billboard advertising, street advertising could be used to make the
customers aware of the latest happenings in Metro Cash and Carry.
• Ongoing promotional offers are needed to be revised to make them more
useful for the customers.
• . Metro is still in its growing stage and therefore needs to adopt more
channels to communicate its name to the potential customers.
Thank you!

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