This document is a report on increasing customer penetration and base at Metro Cash & Carry in Amritsar through sales promotional tools. It was submitted as part of an MBA program. The report analyzes promotional tools used by Metro, including advertisements, loyalty programs, in-store promotions, events, magazines and newsletters, and discounts. It finds that while customers are aware of promotions, more can be done to increase awareness and satisfaction through improved communication of offers. Recommendations include adopting new marketing strategies like mobile advertising and surveying customers regularly to develop better promotions.

1. Increase in Customer penetration & Customer Base
in Metro Cash & Carry Amritsar
(Through sale promotional tools used by metro cash and ca
Submitted by:
Sarabpreet Singh
MBA (hons) MRM
Roll no. 2012MMB1021
Submitted
to: Amarjit Singh Sidh
Dr
GURU NANAK DEV UNIVERSITY, AMRITSAR
SESSION 2012-2014

2. Metro Group
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METRO Group is a German global diversified retail and
wholesale group based in Düsseldorf, Germany.
It is Founded 1964
It is the fourth largest retailer in the world measured
by revenues (after Wal-Mart, Carrefour and Tesco).
Over 280,000 employees from 180 nations are working
at over 2,200 outlets in 32 countries in Europe, Africa
and Asia.
It has the largest market share in its home market, and
is one of the most globalised retail and wholesale
corporations.

3. Metro Group Companies
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METRO GROUP comprises
METRO Cash & Carry, the world's market leader in
cash & carry wholesale business
Real hypermarkets deal in food retailing
Media Market and Saturn, Europe' s leader in
consumer electronic retailing
Galeria Kaufhof, the system leader in the department
store business
Metro Properties
METRO GROUP Advertising

4. METRO Cash & Carry
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Metro Cash and Carry is an international self-service
wholesale retailer
METRO Cash & Carry is different from B2C retail chains
(such as Wal-Mart, Carrefour or Tesco)
its business concept is targeted towards professional
customers rather than end consumers.
The cash-and-carry concept is based around selfservice and bulk buying. METRO Cash & Carry serves
to registered customers only
METRO Cash & Carry is the largest sales division of the
METRO Group with € 67.3 Billion of revenue

5. Business Concept
Manufacturers
Metro Cash & Carry
Business Customers
Consumers

6. INTODUCTOIN TO TOPIC
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Customer Penetration is defined as the
number of people who buy a specific brand or a
category of goods at least once in a given
period, divided by the size of the relevant
market population.
Sales promotion is one of the seven aspects of
the promotional mix. It is used to increase
customer demandExamples include contests,
coupons, prizes, product samples, and rebates
etc
The customer base is the group of customers
who repeatedly purchase the goods or services
of a business.

7. Need of Study


The research involves understanding the
promotional tools used by Metro Cash and
Carry and to identify the existing problems and
to give appropriate recommendations and
solutions.
This will help the company to identify the weak
promotion areas in the stores and will help
them realise the actual places to be focused
upon.

8. Objective of the study
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Understanding the Cash & Carry format
To study the Promotional tools used by Metro
Cash and Carry
To study the awareness of such promotional
Tools among customers
To give adequate recommendations and
solutions to increase the sales by employing
effective promotions

9. Research Methodology
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The consumers were asked about their awareness about the
promotional tools and proper knowledge of the store’s
advertisements. The results were compiled in the form of a
pie charts and bar charts through which the percentage of
Consumers aware about the Promotional Tools was
calculated.
Data source
Primary sources.
Secondary.
Sample Design
The sample size taken was 100.The questionnaires were
given to the customers to be filled. The survey was conducted
at Metro Cash and Carry AMRITSAR.

10. 
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Sampling method
In this marketing research project, we are
using Non Random sampling (convenience
sampling) method.
Limitation of the Study
All the observation and recommendation will
be made on the feedback obtained from
survey.

11. SALES PROMOTIONAL TOOLS USED BY METRO
CASH AND CARRY
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Advertisements
Loyalty Programs
In store promotions
Events
Magazines and Newsletters
Discounts and offers

12. 
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MGA METRO GROUP Advertising is an internationally
operating service company of METRO GROUP. It takes
over central tasks concerning the preparation,
procurement and management of advertising activities
and projects for its clients
LOYALTY PROGRAMS Metro Cash and Carry offers 2
types of loyalty programs in India. These loyalty
programs differ with respect to the benefits and
privileges offered to the customers. The three loyalty
programs are listed below:
Gold Loyalty Program @ 2.5%
Silver Loyalty Program

13. Gold Loyalty Program @2.5%
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Benefits and Privileges offered under this loyalty
program:
Monthly bonus of up to 2.5% your total purchases
Privileges Outside Metro world
Exciting gifts & surprises
Dedicated Billing counters
Dedicated Relationship Managers
Bandhan Helpline:1860-266-2010 (between 10am to
7pm)

14. Silver Loyalty Program
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This loyalty does not provide any direct
monetary benefits it only offers
Exciting Gifts & Pleasant Surprises
Assured Rewards

15. IN STORE PROMOTIONS
The most basic and extensively used in store
promotions are:
 Hoardings
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Drop down banners

16. 
Short Drop down banners
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Pallet Wraps

17. 
Bay Talkers
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End Caps

18. 
EVENTS
An event is an occurring of a social occasion or activity
which is being held for a specific purpose. Metro Cash
and Carry realized and seized this opportunity to spread
the word of mouth and to bring its customers closer to
the company. The marketing department regularly plans
events and activities for customers.

19. 
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MAGAZINES AND NEWSLETTERS
Metro Cash and Carry prints out 3 types of Magazines
and Newsletters:
Metro POST
Bandhan Newsletter
Corporate Brochure
Metro Mail
DISCOUNTS AND OFFERS
Metro Cash and Carry advertises itself as a wholesale
company, so as to give a feeling of reduced prices and
plenty of offer and schemes. New discount schemes and
offers are implemented and highlighted in the store
every day

20. DATA ANALYSIS
Question Asked:
Age:
20-35
35-50
50 and
above
5%
50 and above
35-50 years
33%
20-35 years
62%

21. DATA ANALYSIS

Question asked:
To which customer category you belong?
HORECA
Small business
End consumer (Household
Others
10%
purpose)
HORECA
12%
Others
End
Consumers
52%
Small
Business
26%

22. DATA ANALYSIS
Question asked:
How often do you shop at Metro Cash and carry?
Once a month

Once in 2-3 months
Once in 6 months
Once in
6 months
5%
Once in
2-3
months
38%
Once a
month
57%

23. DATA ANALYSIS
Question asked:
Are you aware of seasonal promotions and offers?
Yes
No

No
45%
Yes
55%

24. DATA ANALYSIS
Question asked:
Metro is currently running “Mango Mela”, are you aware of
the activity?
Yes
No

No
46%
Yes
54%

25. DATA ANALYSIS
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Question asked:
By what means do you come to know about the promotional activities
of Metro?
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Newspaper advertisements
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Emails
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Radio FM
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Word of mouth (Friends/Relatives)
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By visiting metro
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Others
Others
11%
Newspaper
Ads
21%
By visiting
Metro
34%
Emails
15%
Word of
Mouth
13%
Radio FM
6%

26. DATA ANALYSIS
Question asked:
What makes you shop in Metro?
 Good quality
 Prices
 offers

offers
12%
Good quality
48%
Prices
40%

27. DATA ANALYSIS
Question asked:
Which product category do you prefer buying from Metro?
 Household
electronic
 Grocery
9%
other
 Electronics
7%
 Others

houshold
47%
grocery
37%

28. DATA ANALYSIS
Question asked:
Do you find the promotional schemes attractive?
 Yes
 No
No

26%
Yes
74%

29. DATA ANALYSIS
Question asked:
Do you get proper assistance while shopping with Metro?
 Yes
 No

No
24%
Yes
76%

30. FINDINGS AND CONCLUSIONS

The survey affirmed that most of the customers are aware of the
various promotional schemes

However, certain issues were determined during the course of the
analysis which has been listed as follows:

As mentioned earlier, Metro Cash and Carry is actually based on a
B2B (Business to business selling) format, still more than half of the
customers are end consumers.
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Only half of the customers are aware of the promotional offers and
other schemes.
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About one-third of the customers come to know about the
promotions after visiting the store. This implies that there is a need
to spread mass awareness in order to attract the customers towards
Metro.
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Another aspect was that those customers who were aware of the
promotional schemes were not exactly satisfied with them

31. OTHER PERLONAL FINDINGS
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The store has only 2 forklifts; as a result the associates
are not able to lift the pallets on the bays. This reduces
the space for customer movement.
The MRP mentioned on the rail card is sometimes
different from the original listed MRP of a certain article.
This creates confusion amongst the customers.

32. RECOMMENDATIONS
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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.
A survey could be done every quarter and
accordingly, customer friendly promotion scheme could be
developed.
Metro is still in its growing stage and therefore needs to
adopt more channels to communicate its name to the
potential customers.
The frequency of ads in newspapers, radio FM should be
increased.
The company should also plan to increase the number of
forklifts. Most of the operations are being performed with
the help of a forklift. It is important for the smooth working
of the departments.

33. MANAGERIAL IMPLICATION
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The study is helpful in understanding that
there is a need of using new marketing
strategy such as mobile billboards, FM radio, e
mails etc.
It is also specifying the need of using
marketing tools more frequently
Ongoing promotional offers are needed to be
revised to make them more useful for the
customers