1.

INTRODUCTION TO METRO:
METRO Cash & Carry – this name stands for one of the great success
stories in moderncommerce. The unique wholesale business-to-
b u s i n e s s m o d e l o f M E T R O C a s h & C a r r y i s focused only towards professional
customers such as hotels, restaurant, and caterers as well assmall and mid-sized
retailers. METRO Cash & Carry offers this target group a greater efficiencythan the multilayered
supply chain thus helping them to improve their business: By offering thema one-stop solution
for their purchases, by helping them to improve their assortment, by offeringthem high quality
products at reasonable and transparent prices and by offering them a consistentsupply source.
What does METRO offer?
METRO Cash & Carry is a reliable partner for more than 20 million professional
customersworldwide. 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 buyfood 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 oneroof. Depending on the size and type of wholesale center,
the assortment includes up to 20,000items in the food range and 30,000 items in the
nonfood sector. As the name implies, METROCash & Carry customers select their own
items and take them with them to their restaurants ands h o p s . W i t h t h i s u n i q u e
b u s i n e s s - t o - b u s i n e s s c o n c e p t , t h e c o m p a n y h a s g r o w n t o b e c o m e a leading
international player in self-service wholesale.
Company History
METRO Cash & Carry is a leading international company in self-service wholesale and
operatesmore than 600 outlets in 29 countries. With over 100,000 employees
worldwide, the companya c h i e v e d s a l e s o f € 3 1 . 7 b i l l i o n i n 2 0 0 7 . B y
g e n e r a t i n g a l m o s t 5 0 p e r c e n t o f t h e t o t a l s a l e s , METRO Cash & Carry is the
top-selling sales brand of the METRO Group. Assortment andservice of METRO Cash
& Carry’s unique business-to-business model are targeted only towards professional customers
such as hotels and restaurants as well as small and mid-sized retailers or institutions. The
company offers these special groups a high level of assortment competency bothin food and
nonfood as well as attractive wholesale prices. An efficient and
internationallyconferrable concept ensures success in entering new markets.

METRO in Pakistan
METRO Cash & Carry announced its operations in Pakistan in January 2006. Since then, it
hasestablished itself as a potential market leader in wholesale. Under the supervision of
ManagingDirector Mr. Giovanni Soranzo, METRO Cash & Carry Pakistan has opened its first
store in thecity of Lahore in October 2007. The company’s country head office is also based in
Lahore andcurrently employs over 400 people in two offices.1
METRO Cash & Carry’s commitment to Pakistan is also echoed in its
donations to thePresident’s Earthquake Relief Fund.
– The company donated €100 000 in January
2 0 0 6 towards President's Earthquake Relief Fund. It also has plans to
fund development
activities int h e c o u n t r y i n a s s o c i a t i o n w i t h t h e G e r m a n I n v e s t m e n t a n d D e v
elopment Company. Sucha c t i v i t i e s h a v e s u c c e s s f
u l l y b e e n c a r r i e d o u t i n o t h e r c o u n t
r i e s . METRO Cash & Carry plans to invest in Pakistan on a sustained and reliable basis
in the years tocome. The company’s unique business model offers potential for a decrease in
market prices and promotion of local goods and personnel.
Issues:
Tactical sales issues & queues
Metro faces many tactical issues because they have to change their inventory after every 14
dayson Thursdays. They need very active workforce which shifts inventory from the top into the
shelf space for this. Sales force facing problem of managing queues on the cash
counter. Sales forcemotivation and activate participation in work is shrinking. Giving sales
force up to date productknowledge in shorter span of time is a problem
Positioning or segmentation Issue
Metro position itself as a wholesaler brand in Pakistan but people who don’t have
retail storesthey also come here and do shopping ,according to our analysis and their
advertisement the targeto n l y b u s i n e s s e s a n d t h e y s h o u l d p o s i t i o n t h e i r b r a n d
a l s o f o r o r d i n a r y c u s t o m e r s w h o u s e products in their homes.
Competition’s Prices issues
If we analyze the prices of makro and other whole sale markets then we can see that metro
pricesare almost less than all so in order to maintain prices metro face problem during setting
customer p r i c e s b e c a u s e c u s t o m e r s e l e c t t h o s e w h o l e s a l e m a r k e t s w h o
o f f e r m a x i m u m d i s c o u n t s o n quantity and transportation.
2.External and Internal Analysis:
Key success factors:
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 service2
• Enhanced customers’ competitiveness• Excellence in supply chain and quality management•
Strengthening of local suppliers• Development of national infrastructures• Career opportunities•
internationally transferable concept
Competitive analysis:
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
detailedintroduction about the business and its products.
•
Both Metro and Makro are in a wholesale business
•
Both Spent not much on Marketing campaigns
•
Metro believes in the concept of in source while Makro outsources its food production
•
They both have teams for customer service
•
Metro has trained staff while Makro has just hired sales person
•
Metro has proper shelf placement of products whereas Makro does not
•
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 onlyin store
it does not has any warehouse
•
Metro hire logistics for transportation
•
Metro focus on proper shelf placement of products while Makro has not practicing this.
SWOT Analysis of Metro:
Opportunities:
1.Changing trend of shopping, people prefer to go the place where they can find
maximumvariety 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 theycan expand business with any company they like to.4 . P e o p l e a r e
coming more towards hygienic food.3
Threats:
1.Launch of Wal-Mart in Pakistan.2 . I n f l a t i o n 3 . G o v e r n m e n t
instability4 . T e r r o r i s m
Strength:
1 . L a r g e s t w h o l e s e l l e r p l a t f o r m . 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 . M e t r o V a l u e s i t s E m p l o ye e s a n d C u s t o m e r s . 6 . D e f i n e d f o r m a t
adapted to local market needs7.Efficient and low-cost operations
Weakness
1.Not providing goods on credit bases.2.Location of the store is quite far
a w a y. 3 . O n l y d e a l s i n w h o l e s a l e s . 4.Relatively poor security check and
balance on few items.5 . H i g h p r i c e d i m p o r t e d i t e m s .
METRO DEFINING QUALITY

Value for price paid

People who purchase products from Metro feel that they charge the right amount for
goodsthat they usually buy.

Support services
Metro gives warranty depending on the type of product purchased. Example it gives warrantyon
its electronics.

Psychological
It has a good ambience, staff is friendly & responsive.
TYPE OF LAYOUT BEING USED IN PAKISTAN
Metro Pakistan is using the “junior” Layout. This kind of layout is equal to 10,000
sqm i.e120 kanals.

4
Advantages of Proper Layout Planning
•
Proper Layout is it self Marketing of products.
•
Critical in building good working relationships
•
Increasing the flow of information
•
Improving communication
•
Promoting the visibility of key items in retail business
•
Contributing to customer satisfaction
•
Customer convenience
WAREHOUSE LAYOUT
•
Metro has its warehouse at Sharakpur which is known as the “Metro Platform”
•
They use the “Proactive approach”
•
Metro itself is a of kind ware house
•
To locate the inventory & order placement, Metro has a software known as GMS
Suppliers

M e t r o i s o u t s o u r c i n g t h i s s e r v i c e b y h i r i n g “ L o g i s t i c C o m p a n y” f o r t r a n s p
o r t a t i o n services

Metro has its own suppliers who supply directly to its warehouse from all over the world& local
suppliers supply both to Metro & its warehouse
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 choosesuch
a location in which labor supply is adequate
Site considerations
Metro also considers the following factors while choosing the location,
t h e y h a v e l o c a l zoning & taxes, access to utilities, utility cost, soil conditions,
climate, adequate drainage,approach roads, parking and etc.5

3.
Sales management practices:
Strategic planning

Metro Cash & Carry hopes to double its international own-brand sales share from the current
10to around 20 percent by 2012 with its new private label strategy and streamlined portfolio of
sixexclusive labels.T h e n e w s t r a t e g y i n c l u d e s a t i g h t e r a s s o r t m e n t , a
sharpened customer focus and even
morecompetitive pricing, according to a company
s t a t e m e n t . T h e n e w p r i v a t e l a b e l b r a n d s a r e gradually rolling out in all 655
self-service wholesale stores in the 29 countries where MetroCash & Carry does
business.Combined with a very competitive pricing, our own brand assortment will
significantly helpmetro professional customers to boost their own business. With new own-
brand strategy we aref o c u s i n g e v e n m o r e o n t h e s p e c i a l n e e d s o f c o r e
c u s t o m e r s , s u c h a s h o t e l s a n d r e s t a u r a n t s , traders and offices and knowledge
and understanding of their business has helped to develop ahigh quality, user-friendly
and tailor-made product range.The new own brand portfolio includes:•
Aro
sold on a price entry level, below the benchmark competition and comprises 700 reliablefood
and non-food products.•
Fine Food
, which “stands for high-value products, addressing independent food traders as wellas service
stations with 700 items..•
Horeca Select,
which offers 1,500 food and non-food products for professional kitchen use.•
H-Line
, an assortment of 350 non-food and “near food” products that offer solutions for
thehotel and [restaurant] sector. “The professional look and performance of H-Line offers a
realisticalternative to franchising,” the company said.•
Rioba
, a line of 150 coffee and cocktails making supplies for bars, cafés, hotels, companies
andoffices.•
Sigma
, a line of 600 office supplies that serves all customer groups.6
On average the selling price will be 10 to 20 percent less than similar branded
products, whileoffering a quality that is comparable to the best standard on the market,
according to a companystatement.“Altogether, this new approach allows us to offer our
professional customers a real added value.This is especially important in the course of an
economic downturn,” said Thomas Rudelt, headof corporate own-brand management.
Strategy for sustainable, profitable growth
At the heart of the Company’s strategy are customer focus, positioning and expansion along
withefficient processes and structures. The objective is to boost the value of METRO GROUP in
thelong term by means of profitable, sustainable growth. The Company’s
management cultureencourages each individual employee to act autonomously. ‘As
decentralized as possible, ascentralized as necessary’ is the guiding principle.In 2009,
METRO GROUP launched the efficiency and value-enhancing program me Shape 2012to tap
existing potential for further growth within the Group. With this scheme, the Group hopesto
improve earnings by €1.5 billion per annum from 2012 onwards. Cost cutting will account
for some €800 million of this. METRO GROUP aims to generate the remainder by
taking steps toincrease productivity and improve customer relations, for example.
Shape 2012 had a tangibleeffect on profits even in the first half of 2010.
Personal selling approach
Personal selling, unlike advertising or sale promotion, involves direct relationships between
theseller and the prospect or customer. In a forma sense, personal selling can be defined as
a two-way flow of communication between a potential buyer and a salesperson that
is designed toaccomplish at least three tasks: (1) identify the potential buyer’s needs; (2)
match those needs toone or more of the firm’s products or services; (3) on the basis of this
match, convince the buyer t o p u r c h a s e t h e p r o d u c t . F i n a l l y, i t i s a c o m p l e x
c o m m u n i c a t i o n p r o c e s s , o n e s t i l l n o t f u l l y understood by marketers.
Personal selling techniques:
The importance of the personal selling function depends partially on the nature of
the product.As a general rule, goods that are new and different, technically complex
or expensive requiremore personal selling effort. The salesperson plays a key role
in providing the consumer withinformation about such products to reduce the risks
involved in purchase and use. Metro havea c t i v e s a l e s f o r c e s t a n d i n g i n e a c h
r o w t o h e l p c u s t o m e r . C o m p a n y i s p u b l i s h i n g t h e M e t r o magazines of new food
items.7
The sales process1 . P r e a p p r o a c h ( P r e p a r i n g )
Review key decision makers especially for business to business
o
assess credit histories
o
prepare sales presentations
o
Identify product needs.Helps present the presentation to meet the prospects needs.
2.Approaching the Customer
Sales force objective is not only reaching to the potential customer and strive to
develop arelationship rather than just push the product. First impression of the sales person
isLasting and therefore important, Sales force wore proper uniform. Neatness andcleanliness
important. Sales force use referrals, cold calling or repeat contact. Sales forcewore proper
uniform.
3.Making the Presentation
Need to attract and hold the prospects
A
ttention to stimulate
I
nterest and stir up
D
esire inthe product so the potential customer takes the appropriate
A
ction. AIDATry to get the prospect to touch, hold or try the product. Sales force is trained so
they areable to change the presentation to meet the prospect needs.
Overcoming Objections
Seek out objections and address them.Anticipate and counter them before the prospect can raise
them.Try to avoid bringing up objections that the prospect would not have raised.Price objection
is the most common Need to provide customers with reasons for the $s, build up the value before
price ismentionedMust be convinced of price in
own
mind before you can sell to customer.Get budget info. on buyer before you try to sell, and
must
know what they want, must sellservice on top of product
augmented product
--

to create value!!Must know value of product, provide warranties etc.!!8

4 . C l o s i n g
Ask prospect to buy product/products. Use trial closes, Metro ask about financial
terms, preferred method of delivery. 20% sales people generally close 80% sales.The following
are popular closing techniques:
o
Trial Close (Minor decision close)
o
Assumptive close (Implied consent close)
o
Urgency close
o
Ask for the sale closeIf prospect says no, they may just need more reasons to buy.
5.Following Up
Metro follow up sale, determine if the order was delivered on time, installation OK
etc.Also helps determine the prospects future needs. Accomplishes four objectives:
o
customer gain short term satisfaction
o
referrals are stimulated
o
in the long run, repurchase
o
prevent cognitive dissonanceSteps of SalesP±PositvestaeofmindO±OpendiscusionU±UnderstandcustomernedsC±ClosethediscusionH±Handshake
Benefits to metro:
From customer’s point of viewi . P e r s o n a l s e l l i n g p r o v i d e s a n o p p o r t u n i t y t o t h e
c o n s u m e r s t o k n o w a b o u t n e w p r o d u c t s introduced in the market. Thus, it informs and
educates the consumers about new products.ii. It is because of personal selling that
customers come to know about the use of new productsBusiness Studies in the
market. The sellers demonstrate the product before the prospective buyers and explain
the use and utility of the products.iii. Personal selling also guides customers in selecting goods
best suited to their requirements andtastes as it involves face-to-face communication.iv.
Personal selling gives an opportunity to the customers to put forward their
complaints anddifficulties in using the product and get the solution immediately.9

Relationship selling:
The relationship-building process which is designed to meet the
o b j e c t i v e s c o n t a i n s s i x sequential stages. These stages are (1) prospecting, (2) planning
the sales call, (3) presentation,(4) responding to objections, (5) obtaining commitment/closing
the sale and (6) building a long-term relationship.Metro move beyond functional
relationships, they develop strategic partnerships or
strategica l l i a n c e s . T h e s e a r e l o n g -
t e r m , f o r m a l r e l a t i o n s h i p s i n w h i c h b o t h p a r t i e s m a k e s i g n i f i c a n t commitmen
ts and investments in each other in order to pursue mutual goals and to improve
the p r o f i t a b i l i t y o f e a c h o t h e r . M a r k e t i n g m a n a g e r s a n d s a l e s m a n a g e r s m u
s t m a k e s o m e v e r y important decisions regarding how the sales fore should be organized.10
“Continuous Improvement & Metro”:

Proper shelf placement & training of staff

Metro trains its staff by two process:

o
Process
o
System

It has its own in-house training organization called HOT (House

o f Training)

They also send their staff abroad for proper training

They use “train the trainer” approach

Team Approach
They have a team of more than 300 employees working as a team
Quality Awards and Standards
Metro maintains their quality by the standard of ISO 9000
Service departments support the sales departments in their vending activities:
•
Customer entrance and after sales services11
Welcoming customers check & issue customer cards at the entrance. Sales force is dealing
withgoods returns and After Sales Service, Customer Care.
•
Customer manager:Acquiring new customer and visiting registered customers.
•
Human Resources:Manager is dealing with all human resources topics for the stores staff.
•
Decoration and maintenance:Settling of

demonstration furniture, display material and signage for the presentation of goods
Recruiting and Selecting SalespeopleMetro have assessment centers--intense training
environment that places candidates inrealistic problem settings in which they give
priorities to their activities, make and act
ondecisions.R e c r u i t m e n t s h o u l d b e a c o n t i n u a l a c t i v i t y a i m e d a t r e a c h i n g t
h e b e s t a p p l i c a n t s . Applicants chosen that most match the demographics of the target
marketCompensating Sales People
To attract, motivate and retain sales people that facilitate and encourage good treatmentof the
customers. Metro try to understand personalities of sales people. Strive for proper balance of
freedom, income and incentives. They know the Need to determine the bestlevel of
compensation required, and the best method of calculating it.
o
Straight salary
o
straight commission (selling insurance)--single percentage of sales or sliding rate
o
Combination plan
Motivating Sales People
Providing systematic approach must also satisfy non-financial needs:
o
Job security
o
Working Conditions
o
Opportunities to succeed12
Forecasting;
The purpose of this section is to provide a brief summary of market research literature
regardingt h e f o r e c a s t i n g o f s a l e s o f p r o d u c t s w i t h g u i d a n c e t h a t g o e s
b e yo n d a n a d h o c c h o i c e o f
af o r e c a s t i n g t o o l . T h e g u i d a n c e p r o v i d e d b y y e a r s o f m a r k e t r e s e a
r c h w i l l l e a d t o t h e recommendation of a forecasting model that has been
developed from product adoption theoryand rigorously tested in its ability to performA n
S-curve pattern implies that product sales initially grow at a rapid rate,
t h e n t h e r a t e o f growth tapers off, and finally declines with time.Historical analysis of
product sales curves indicates this is one of the most common, if not themost
common pattern of new product sales over time.Exhibit 1 shows the cumulative percentage of
the potential market (i.e., total number of adopters)that has made an initial purchase of a
product. As move up and to the right of the S-curve inExhibit 1, i.e., as look at the
rate of adoption of a product over time by first time purchasers,initially have the
innovators buying the product, then early adopters, and so on as if move up theS-curve, until you
get to the point of market saturation, where the last set of first-time buyers areknown as the
laggards.Exhibit 2 shows the time of adoption of buyers for the product. If the buyer
is to the left of thevertical line in their time of adoption they are innovators, early
adopters or part of the earlymajority, if to the right they are the late majority or the
laggards.Exhibit 3 displays types of S curves developed from alternative types of product sales
forecastingmodels.Exhibit 4 displays the types of diffusion models, including the highly adopted
Bass (1969) model(hereafter referred to as the "Bass Model") that combines the innovation and
imitation propertiesinto one increasingly generalized model
Evaluating Sales force Performance:
1.To ensure that compensation and other reward disbursements are consistent
withactual salesperson performance2.To identify salespeople that might be
promoted3 . T o i d e n t i f y s a l e s p e o p l e w h o s e e m p l o y m e n t s h o u l d b e
t e r m i n a t e d a n d t o s u p p l y evidence to support the need for termination
The table shows the five measurement items used to generate data on sales force
competencedevelopment. On the general question (P1), the firms were found to do well with a
score of 83.37%representing 356 (156 + 120 + 80 = 356) points. Specifically, they did better in mentoring (P4)
with ascore 84.56% representing 367 points. This is closely followed by coaching (P3), which had
a score
13

of 83.14% representing 365 points. Project team staffing (P5) came next with a
score of 81.86%representing 334 points. Sales force skills training (P2) came last with a score of 80.60%. In
total, thea g g r e g a t e s c o r e i s 5 2 . 4 0 % r e p r e s e n t i n g 1 4 1 5 ( 3 4 9 + 3 6 5 + 3 6 7 +
3 3 4 = 1 4 1 5 ) p o i n t s o u t o f a maximum of 2700 (135 responses x 5 grade points x 4 SFCD
tasks = 2700) points. This indicates anaverage level of involvement of these participating firms
in sales force competence developmenttasks. On the whole, it can be observed from this
descriptive analysis that the participating firmswere doing well in their sales force
competence development programmes, however, coaching ismostly emphasized, followed by
mentoring and project team staffing, and finally by skill training
Diagnosis and Alternatives
Metro is very well serving their customer. We analyze that why the retailer are not goingto
metro. The issue the customer are facing is time consuming visit, outside city (transportation)so
the corrective action need to take like online shopping and rickshaw scheme that
will helpretailers to transport goods to metro.
Recommended Sales Strategy
To get the long term benefits Metro need to focus on Relationship building strategy.
Likeconsultancy service for the retailers. Those wanted to open a business regarding the retail
shopwith the low initial capital , Metro consultant give them the complete idea,
graphical layout of the store how they can effectively run with the business with
low cost . This not only facilitateretailer but Metro will develop partnership with
many retailers, Help Metro with goods andstrong image and standing in the market.

CONCLUSION:
Metro Cash & Carry Pakistan has proved itself as to be a company for investment.Taking in
hand flag of satisfaction Metro is heading towards professional advancement andcompetency by
providing high quality services to his. Customers and prove to be a successfulcompany from
investment point of view.14
Exhibit 1:Exhibit 2:15
Exhibit 316