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In this Project we will see the distribution phase of Metro Pakistan. We visited Metro to complete this task.

Free essay example:

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Acknowledgment

Thanks to Almighty Allah, Sir Naveed Ahmad Bhutta

and our Parents whom help

enable us to complete this project

Executive  Summary

In this Project we will see the distribution phase of Metro Pakistan. We visited Metro to complete this task. Where Mr. Najam the marketing sales manager provide us Necessary and valuable information as he can. We took help From the marketing plan provided by Sir. Naveed bhutta. We also took help from the book of “Principles of marketing” by Philip Cutler. We have seen the corporate VMS, disintermediation, supply chain management of metro. Metro has contracts will large distributor of markets in different businesses and it catter to regular as well as business users. It has very sophisticated and appropriate distribution network all across Pakistan and it can be considered as there competitive advantage

Introduction

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, 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.         

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 and 30,000 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 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.

At a Lahore :

Location:                        

METRO Cash & Carry Pakistan Wholesale Centers

Pakistan’s first wholesale center has opened in Lahore in October 2007, followed by a second opening in Islamabad on 3rd April 2008.

METRO Cash & Carry Pakistan (Pvt.) Ltd.
Thokar Niaz Baig, Multan Road
Lahore 53700
Pakistan
Telephone: +92 (0)42 7508001
Fax: +92 (0)42 7508094

image01.jpg

METRO Cash & Carry Pakistan (Pvt.) Ltd.
Plot 1-A, I-11/4 adjacent Railway Carriage Factory
Islamabad 44000
Pakistan
Telephone: +92 (0)51 4020006

Design:                            Bright, and  colorful. Depend

upon different products.

Size:                                17000-20000  square  feet.

Employees:                    Round about1750 employees are working.

Types of  Transactions:     75%  take  out.                                  

Keys  to  Success

      Effective distribution, selection  criteria  are  critical  to success.

.

Metro Customers


Only
commercial customers are allowed to purchase at METRO Cash & Carry. All customers are registered and provided with a customer card.

Our core customers are small and medium-sized traders as well as hotel, restaurant and catering businesses and other companies and institutions. For them the METRO Cash & Carry distribution network promises much greater efficiency than the multilayered supply chain. They can purchase goods more flexibly and at more favourable prices, compared to traditional procurement sources.

This enables METRO Cash & Carry to strengthen the competitiveness of its professional customers.

METRO Cash & Carry’s customers select their merchandize at the centre in the quantities they need, pay in cash and transport it all back to their businesses by themselves. All product categories are offered on a permanent basis and in large quantities.

Social Contract

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.

Market  Demographics:

The  profile  for  Metro  customers  consists of  the  following  geographic, demographic,

and  behavior  factors:

Geographics:

Metro  divides  the  market  on  the  geographic bases  in  which  Metro divides  market  in  nation status,  regions  and  neighborhood,  e.g;  Metro provided a lot of necessities of life.

1-Urban area:

Urban  area  consist  of  60%  of  Metro  market because  rural  living  people  are  very  conscious about  their  buying pattern, and always seeking good quality   such  as  Lahore  city.  

2-Total Lahore:

Total Lahore area consists  of  40%  of  Metro  market share  in  Pakistan.

Supply Chain Goal:

The goal of Supply Chain at METRO is to efficiently handle thousands of orders, shipments and deliveries and ensure that goods arrive at the right place at the right time.

Supply Chain Management plays an important role in our high-performance logistics system and enhances our capacity to supply food and non-food products on a daily basis with consistent high quality, diversity and freshness.

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.

At METRO Cash & Carry Pakistan, the warehousing and transport for frozen and chilled products is ensured at a constant temperature (in minus or plus degrees), according to product requirement. Temperature monitoring is done manually and by computerized mechanisms, both during transportation truck and in cold storage.

A) Fruits & Vegetables:
For the first time in Pakistan, METRO Cash & Carry offers a platform for Fruit & Vegetables equipped with modern accessories for product processing. This ensures hygienic, temperature-controlled, clean and packed fruit and vegetables as per international standards of Hazard Analysis of Critical Control Points (HACCP).

B) Live Fish:
METRO Cash & Carry Pakistan offers live fish at Metro centers. Now you can choose live fish of your choice and enjoy the taste of freshness.

1. Fresh

The Fresh department comprises fresh meat, fish, fruit and vegetables and dairy section. Special care is taken in handling, storage and maintaining freshness of products throughout their shelf life. Freshness of food products is checked on a daily basis to make sure that no product is left on the shelf that does not fulfill standard requirements of quality and freshness.
Ultra fresh products such as meat, fish, fruits and vegetables require special attention because of their delicacy and sensitivity. These products are presented with guaranteed freshness while maintaining the natural texture and flavor of the products through strict inspections and controlled temperatures. These products are sourced from very carefully selected suppliers who are totally committed to quality and hygiene and who have demonstrated their strength to fulfill Metro’s requirements for quality, temperature control, process control and goods manufacturing and hygienic practices. Slaughter houses and processing units are regularly audited by our Quality Assurance department.

Metro Cash & Carry Pakistan has the highest concern for the health of customers and considers it a social, ethical and moral obligation to make available the best of Nature’s products.


2. Dry Food

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.

Imported canned goods containing meat and derivatives are very vigilantly selected, keeping in view that imported meat products are purchased only from Halal-certified companies audited by the recognized Halal certification bodies of their respective countries. We also maintain a list of Recognized Halal Certification Bodies of different countries and ask the supplier to send us a copy of their Halal certificate for verification.

Our In-store bakery is one of its kind. All recipes, cooking temperatures and time are pre-defined. Proper preparation control is done through fully mechanized plants. The hygiene and sanitation standards are fully complied too and our staff is trained to fulfill such requirements.


3. Hygiene & Sanitation

We are extra cautious about the hygiene and sanitation conditions to be ensured by our 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.

4. Cold Chain

A cold chain is a temperature-controlled supply chain. Correct temperature controls are imperative to keep fresh food products in their original form till their shelf life.

Therefore, maximum importance is given to the cold chain to ensure that our fresh products such as meat, fish, fruits, vegetables and dairy items, are produced, handled and transported to our stores through the cold chain and proper records of temperatures are verified by recording the internal temperature of the products at the time they are received.

For this purpose all vehicles supplying fresh products to Metro Stores are fitted with temperature loggers that automatically keep a record of vehicle temperatures at certain time intervals throughout the journey. This is verified by the Metro Quality Assurance & Operations staff.

Inside the Metro centre, the cold storages and selling areas are well-equipped to maintain the temperatures as required by each fresh product.

HACCP

HACCP stands for Hazard Analysis Critical Control Point. HACCP is a pro-active process control system by which food quality is ensured. This system has been adopted by all Metro stores around the world and is mandatory for all Metro stores to establish their food hygiene systems based on HACCP principles and be certified from an accredited and reputed certification body.

The HACCP process consists of seven principles:
1. Hazard Analysis
2. Identifying Critical Control Points (CCP)
3. Establishing Critical Limits for each CCP
4. Monitoring CCP requirements and using the data gathered to effectively control processes
5. Corrective Action
6. Record keeping
7. Verification.


The process starts with the identification and documentation of potential hazards. The range of hazards could include safety hazards such as toxins, contamination, foreign bodies, decomposition, microbiological and non-safety hazards such as product quality, product substitution, etc. The next step is to identify "critical control points" in the production process and establish critical limits. The key is to separate the important control issues from those that have no real impact. CCP's are those where the failure of the process would cause or contribute to the occurrence of a hazard. Critical Limits are then established for each CCP. These limits may be determined by Government regulation and are used to establish that the HACCP system is working correctly.

Market  Needs:  

Metro  is  providing  its  customers  with  a  wide selection  of  high-quality and  pleasing  in presentation,  offer  a  wide  selection  of  health conscious choices,  and  utilizes  top  ingredients. Metro  seeks  to  fulfill  the  following  benefits  that are  important  to  their  customers.

Selection                  

A  wide  choice  of  daily necessities.

Accessibility

The customer can gain access to  the  Metro.

Customer service      

The patron  will  be  impressed  with  the  level  of  attention  that  they  receive.

Competitive pricing

All products/services  will  be  competitively. Priced relative  to  compare  the other  competitors.

Product range

Each store is tailored to address the needs of professional customers. We offer a wholesale price that leaves the customer room for healthy margins 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 of technology and design, and meet all safety standards.

For more details on the product range we offer at our centers click on the links below:

> Food

> Non Food

> Own brands

METRO caters to the needs of modern business by providing a wide range of office equipment and materials. These include: Computers, Accessories, Printers, Mobile phones, Fixed Line Phones, Faxes, School Products, Copy Paper, Packaging Materials, Office Supplies, POS material and Stationary. All major brands are available under one roof, such as HP, Samsung, LG, Motorola, Nokia, Aurora, Sigma, Max, Pelikan, Piano, Picasso, etc.

Media , Radio &  Accessories

METRO offers all the famous brand names such as Samsung, Sony, LG, Philips, Olympus, Nikon, Yashica, Nobel, Fuji, etc. The product range includes TV sets, DVD Players, Home Theatre, Hi Fi, MP3/MP4 Players, Digital Camera, Camcorder, Game Consoles, Car Audio, Batteries and Chargers, Books, Journals, Magazines, Newspapers, Recorded, Unrecorded Media and Storage Media. METRO prides itself in bringing the latest technologies & innovations to its customers. 

Home Electronics/House Hold

A wide range of Home Appliances such as washing machines, refrigerators, freezers, cookers, microwave ovens, air conditioners, built-in appliances, hand blenders, mixers, deep fryers, irons, vacuum cleaners and all small electric appliances. All leading brands such as LG, Samsung, Mitsubishi, Haier, Dawlance, PEL, Panasonic, Siemens, etc. are available at most reasonable prices. 

Household Goods

The Household range includes products from pots and pans and chaffing dishes to commercial tableware and glasses for Hotels, Restaurants and Caterers. The selection includes brands in the following segments:

  • 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)

The Do It Yourself (DIY) department caters to all home improvement needs under one roof with strong competitive prices in both local & international brands. Categories available:

  • 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, car care solutions (MOTHERS, COSMIC) and good quality tyres at low rates (GOODYEAR, NEXEN).

Home Textile/Home Decoration

METRO offers a comprehensive array of Bed Linen, Towel, Quilts, Cushions, Blanket, Table cloth, Carpets, Mattress and Office Furniture to suit domestic and commercial needs 

Ladies wear/Men’s wear/Children’s wear/Shoes/Luggage

The Apparels Division at METRO offers a wide variety of  brands and high quality products at wholesale prices. The Ladies wear category offers both Eastern and Western wear. Men’s wear offers top brands such as Wrangler, Bonanza, Leeds, etc. for formal and casual wear. The Children’s wear section offers Skids and Colors and a modern collection of shoes under such brands as Servis, Bata, Starlet. The luggage category besides American Tourister, Eminent and Lambertazzi (a METRO brand) are available. 

Sports & Seasonal

This section offers high quality Gym Accessories, Motorcycles, Sports Apparel, Swimwear and Sports Shoes. There is a complete collection of top brands is available at compatible prices, such as Puma, Servis, Cheetha, and Ihsan Sports, besides Pak Hero motorcycles. The section also offers a complete range of imported Garden Furniture and Accessories, Lawnmowers, Camping, Water Sports, BBQ, Decoration Items, Artificial Flowers and Planting Pots. Additionally, some leading brands that are available include Barbie, Disney, Fisher Price, Hot Wheel and Leapfrog

Core Market Entry Strategy

METRO Cash & Carry examines potential market entries with great care. Before setting foot in a new country, an intensive advance assessment is carried out. Should this scoring yield positive results, it is then followed by a comprehensive feasibility study. This includes thorough on-site research along with an assessment of all modalities involved in doing business at the proposed location. A team of specialists analyzes all aspects relevant to operations, such as purchasing, sales and marketing, laws, human resources and logistics. The decisions on market entry and on the actual location, type and size of the planned outlets are based on the results of this study.

Local staff a priority

The objective is to staff a new store as quickly as possible with local employees, and to qualify them in the company’s own intensive training programs. The people who call the region home have the advantage of knowing the professional customers. They are able to perfectly adapt the service offering to the national or regional culture. By hiring local staff, from salespeople to managers, the company also contributes to the country’s job market. In many nations, METRO Cash & Carry has grown to become one of the largest private employers within just a few years.

Corporate VMS

Metro has their baking products range which is produce inside by metro.

Disintermediation.

Metro has contracts with large producers or directly with producers, that’s why it reduces middlemen and its commission which help them to lower its cost.

For example, Metro has given shlf space to Pepsi and Coke, these companies have there staff in Metro which maintain inventory level and whole layout of stock.

Requirements for Suppliers


Metro applies strict Quality Assurance controls over its suppliers of fresh food products which include meat and meat products, fish and fish products, fruits, vegetables and their products like salads and packaged food.

The suppliers of meat, fish and their products are required to assure Quality Assurance department of Metro that they are fulfilling basic requirements of hygiene, sanitation and Good Manufacturing Practices. QA department pay surprise and regular visits to slaughter house(s) and processing unit(s) of fish to check their operations. In case of any nonconformity, the QA department may reject the whole lot ensuring that only the healthy and hygiene products find their place in the Metro stores. QA department has also engaged third party inspection bodies to check the operations of meat and fish suppliers and submit report to QA department for follow up.

Suppliers also have to ensure that they shall abide by all temperature control protocols as defined by Metro, not only during production but also during transportation to Metro stores.

QA department has also engaged recognized and highly reputable testing laboratories for testing the food products and samples are collected regularly from the production as well as from the Metro stores and are tested to check whether they are “fit for consumption”.

Suppliers of Metro have to implement the HACCP requirements in their whole production process and Metro encourages those potential suppliers who are HACCP certified and maintain their systems ethically and professionally.

SWOT  Analysis :

The  following  SWOT  analysis  captures  the  key

strengths  and  weaknesses within  the  company,

and  describes  the  opportunities  and  threats

facing  Metro.

Strengths :

Strong  relationships  with  vendors  that  offer

high-quality  ingredients  and fast/frequent  delivery

schedules. Excellent  staff  who  are  highly  trained

and  very  customer  attentive. Great  retail  space

that  is  bright,  hip,  clean, and  located  in  an  upscale

mail, suburban  neighborhood,  or  urban  retail  district.

high  customer  loyalty  among  repeat  customers.

High- quality  food  offerings  that  exceed  competitors

offerings  in  quality, presentation, and  price.

Weaknesses :

A  limited  marketing  budget  to  develop  brand

awareness. The  struggle  to  continually  appear

to   be  cutting  edge.

Opportunities :

Growing  market  with  a  significant  percentage

of  the  target  market  still  not  aware  about Metro

Increasing  sales  opportunities  in  take  out

business. The  ability  to  spread  overhead  over

multiple  revenue  centers. Mertro  will  be

able  to  spread  the  management  overhead  costs

among  the multiple stores, decreasing  the  fixed

costs  per  store.

Threats :

Competition from local areas  that responds  to

superior  offerings. Metro  chain  found  in

other  markets  coming  to  Pakistan.

A  slump  in  the  economy  reducing  customers

disposable  income  spent  on  eating  out.

Conclusion

This project has given us a exposure and inside view of metro Pakistan. We had a great experience as we come to know how to apply things in business environment and for that we are thankful to our teacher. We have understood the distribution phase and different elements of distribution of Metro Pakistan. Metro eliminate the intermediaries and buy direct from produce and this give him cost leadership by offering low prices. It has international presence, as it buy abundant quantity from one country and sale it out in a country where it is short at higher prices which contribute a large chunk into its profit.

Bibliography

http://www.metro.pk/servlet/PB/menu/-1_l2/index.html

Mr. Najam

Marketing Sales Manager

METRO Cash & Carry Pakistan (Pvt.) Ltd.
Thokar Niaz Baig, Multan Road
Lahore 53700
Pakistan

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