METRO CASH AND CARRY

1. Metro Cash &
Carry:
Profitability in
the Indian
Market
GROUP NO.- 02
VARSHINI R- 21035
SURAJ MAHESHWARAM- 21088
AKASH SUBEDAR - 21122
SHUBHAM S CHAUHAN -21165
SIRI R KINI- 21166

2. Metro C&C
METRO Cash & Carry entered the Indian market in 2003. The company
currently operates 31 wholesale distribution centers under the brand METRO
Wholesale including six in Bangalore, four in Hyderabad, two each in Mumbai
and Delhi, and one each in Kolkata, Jaipur, Jalandhar, Zirakpur, Amritsar,
Vijayawada, Ahmedabad, Surat, Indore, Lucknow, Meerut, Nashik,
Ghaziabad, Tumakuru, Visakhapatnam, Guntur and Hubballi.
METRO Cash & Carry India offers close to 7,000 world-class products across a
multitude of categories - such as fruits & vegetables, general grocery, dairy,
frozen & bakery products, fish & meat, confectionery, detergents & cleaning
supplies, health & beauty products, media & electronics, household goods and
apparel - all under one roof, and at transparent, low wholesale prices. This helps
us improve our customers’ offerings, while providing them with a reliable
supply source. Analyzing the local requirements, a large percentage of the
goods are sourced locally and are tailor-made to meet the specific demands of
the region.

3. Target customers
TRADERS AND SMALL RETAILERS HORECA
(HOTELS, RESTAURANTS,CATERS)
OFFICES AND INSTITUTIONS

4. HORECA
Hotels
Large packages of different
food products from Metro C&C
to use as raw materialin their
businesses.
dominated by small,
unorganized players.
Restaurants-
hygieneaudits and quality
training initiatives to help them
raise hygiene standards and food
quality.
flexible payment facilities
 (HACCP)–certified quality
assurance.
 Caterers and canteens-
bulk packing and doorstep
delivery service.

5. Offices and institutions
 Institutional buyers purchased office supplies, commercial
products, and electronic goods for business usage.
 Unlike kirana stores, many of these customers had to be
managed individually.
 The company appointed dedicated key account managers,
who had knowledge about specific industries and could
inform specific institutions about relevant product
portfolios, promotions, and technological advances. Other
initiatives for institutionalbuyers included specific product
ranges, doorstep delivery, and logistics assistance.

6. Traders and small retailers
 Traders and small retailers dominated the food and grocery segment in the country.
 These stores got products either through brand distributors or through wholesalers.
 Some of these retailers shopped at Metro C&C for better prices and promotions.
 These retailers had loyal customer bases in their respective catchment areas. While large in
number, many of these retailers lacked modern infrastructure and professional management
skills.

7. Traders and small retailers
Challenges:
These stores were losing business to sophisticated MT stores
and e-commerce platforms.
Ideas:
Super Trader program and Super Trader conventions
Periodic workshops
Result: increased shelf spaces, better display merchandising,
improved customer service etc.
Metro C&C digitization initiative
Result: 40% increase in sales

8. Competitors
 Brand image
 Lag in customer service
 “Best Price”- brand name
 Excellent customer service
 Expertise in running retail stores worldwide
 Financially strong

9. Suppliers
Metro frequently works with more than 2000
suppliers of food and non-food items, and
METRO centres provide more than 10,000
products.
Metro is able to guarantee quality and
availability for their customers because of
reliable, long-term partnerships with these
suppliers. Hindustan Lever Ltd., Proctor &
Gamble, Colgate Palmolive, Dabur, PepsiCo,
Coca-Cola Beverages, Cadbury, Nestle, Maggi,
Kellogg’s, Godrej, Henkel, Wipro, ITC, and S
Johnson Products are a few of the top worldwide
and Indian brands Metro directly work with.
Additionally, They source goods for our in-house
brands from over 150 sources.

10. Strategies
adopted by
Metro C&C
towards its
suppliers
Strengthening its local suppliers
Increase the quantity and calibre of fresh produce produced
Buy products in bulk from the source and sell them for less
Training to improve fish procurement and post-harvest practises and
meat suppliers
METRO's collecting centres for farmers
These practises and strategy of building long term relationship with
suppliers and enacting proactive Quality Management processes and by
training them has helped the company to source good quality and
merchandise at attractive price

11. Private label
program
The program helped the company earn better
margins
It helped the company differentiate itself from the
competitors
The retailers have pushed their private labels to fill
the gaps in supply chain due to production
shortage and transportation from other
manufacturers

12. Strategies for Metro Cash & Carry
The company
needs to build an
ecosystem for its
business in India
Opening smaller
stores in big cities
with good
infrastructure
Search for better
intermediaries
Joint venture Targeting
Differentiation &
Positioning
Low Private Brands
Elimination of
Intermediaries
Different Duckling
Approach
Regimented
Business Model
Lowest Product
Inventory Turnover
Conscious Pricing
Approach
Value Based
Management and
Team

13. Thank You