Mgt501 - Assignment solution

Marketing Management (MKT501)

Semester fall 2009

Assignment # 01

Total Marks: 20

Last Date of Submission: Wednesday, 10th February, 2010

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analytical assignment.

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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.

Only commercial customers are allowed to purchase at METRO Cash & Carry. All

customers are registered and provided with a customer card. Working hours at METRO

Cash & Carry, Monday to Saturday: 7:00am to 11:00pm. Sunday: 11:00 am to 8:00 pm

Customers select their merchandize at the centre in the quantities they need, pay in cash

(no credit option) and transport it all back to their businesses by themselves. Parking

facilities are available for customer. All product categories are offered on a permanent

basis and in large quantities.

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 favorable prices, compared to

traditional procurement sources.

Supply Chain Management plays an important role in high-performance logistics system

and enhances capacity to supply food and non-food products on a daily basis with

consistent high quality, diversity and freshness.

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

supply-chain and quality control management. 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.

In non-food, Metro Cash & Carry offers only products that are up-to-date in terms of

technology and design, and meet all safety standards. With over 10,000 non-food articles,

METRO Cash & Carry Pakistan (Pvt.) Ltd. offers one of the largest assortment of nonfood

articles under one roof in Pakistan with detailed attention paid to quality, guarantees

and after-sales service.

Requirement:

Read the above given Scenario of Metro Cash & Carry and give the answers of following

questions.

Questions:

1. Discuss the supply chain management system of Metro Cash & Carry and which

segment of the market is being attracted by the Metro Cash & Carry.

2. Compare this modern trade outlet (Metro Cash & Carry) with traditional setup.

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solution:

1. Discuss the supply chain management system of Metro Cash & Carry and which segment of the market is being attracted by the Metro Cash & Carry.

Metro Cash & Carry is an international market leader in the sector of self-service wholesale and at the same time also one of the growth drivers of METRO *****.

A mature, efficient and internationally reproducible concept guarantees the successful tapping of new markets. The assortment and services offered by Metro Cash & Carry are geared to meeting the specific needs of professional customers. At 655 stores in 29 countries the company offers a broad selection of high-quality goods at wholesale prices to customers such as hotel and restaurant operators and small to medium-sized retailers.

The business of Metro Cash & Carry aims at professional commercial customers such as hotel, restaurant and Kiryana stores, caterers and small food retailers, hospitals, authorities, and to an increasing extent also service providers. Metro Cash & Carry is a one-stop-shopping solution for everything they need. The company offers assortments, services and store architectures tailored to their specific requirements. A restaurant owner, for example, can buy fish or vegetables as well as kitchen equipment and office supplies. The unique business-to-business concept also caters to the professional work schedule with extended opening hours of up to 16 hours a day. By this means Metro Cash & Carry is the perfect partner for professional customers in 29 countries.

In Pakistan Metro Cash & Carry is offering a wide range of high-quality goods under the brand names Metro. One of Metro Cash & Carry’s unique selling propositions is its great competence in terms of freshness. An efficient supply chain and a *****-wide standardized quality assurance system ensure that customers have a broad choice of fresh fish, meat, fruits and vegetables every day. In addition, a wide range of non-food articles is available with a focus on restaurant supplies, household goods, stationary and multimedia. Good value for money and the consistent availability of high-quality goods contribute to the global success of the Metro Cash & Carry sales concept.

2. Compare this modern trade outlet (Metro Cash & Carry) with traditional setup.

Metro Cash & Carry modern trade & Traditional Wholesale trade difference
1) Only commercial customers are allowed to purchase at METRO Cash & Carry
1) In traditional wholesale any customer can purchase in bulks

2) All customers are registered and provided with a customer card
2) No need for any type of customer card

3) Working hours at METRO
Cash & Carry, Monday to Saturday: 7:00am to 11:00pm. Sunday: 11:00 am to 8:00 pm
3) Mostly traditional wholesale market open at 9:00 am and no specific time for closing stages

4) Customers select their merchandize at the centre in the quantities they need, pay in cash (no credit option) and transport it all back to their businesses by themselves.
4) Customers select their goods pay in cash and some time also in credit card most of time wholesaler provide transport faculty

5) Parking facilities are available for customer
5) No parking facilities available

6) All product categories are offered on a permanent basis and in large quantities
6) It is not necessary that all product categories are offered on permanent basis

7) Customer can purchase goods more flexibly and at more favorable prices
7) Every wholesaler has it’s own price of there goods

8) In the food range, freshness is the first priority
8) It is not necessary in wholesale business

9) In non-food, Metro Cash & Carry offers only products that are up-to-date in terms of technology and design, and meet all safety standards.
9) Most of the wholesaler do but not all

10) With over 10,000 non-food articles,
METRO Cash & Carry Pakistan (Pvt.) Ltd. offers one of the largest assortments of non-food articles under one roof in Pakistan with detailed attention paid to quality, guarantees and after-sales service.
10) It is not necessary in wholesale business that they deal in all non-food articles, most of the wholesaler deal in one or two categories of product.

by VUsolutions