A

PROJECT REPORT
ON
STUDY ON CONSUMER BEHAVIOUR AND PROMOTINAL STRATEGY
METRO CASH AND CARRY(INDIA)
BY
G. SUPRIYA (1058-21-401-016)
K. NIHARIKA (1058-21-401-056)
Submitted in partial fulfilment of the requirement for the award of the
BACHELOR OF COMMERCE
B.Com (General)
(2020-2023)
Under the Guidance of
DR. J. SARITHA
(Associate Professor)
(HEAD & DEAN OF THE DEPARTMENT)

DEPARTMENT OF COMMERCE
ANDHRA MAHILA SABHA ARTS AND SCIENCE COLLEGE FOR
WOMEN (AUTONOMOUS)
NAAC Re-Accredited
OSMANIA UNIVERSITY CAMPUS, HYDERABAD-500007
 CERTIFICATE

This is to certify that the report titled “A STUDY ON CONSUMER BEHAVIOUR AND

PROMOTIONAL STRATEGY METRO CASH AND CARRY(INDIA)” practices in

ANDHRA MAHILA SABHA ARTS AND SCIENCE COLLEGE FOR WOMEN. Submitted

in partial fulfilment for the award of degree of B.Com program of UG. O.U. Hyderabad was

carried out by Ms. G. SUPRIYA and K. NIHARIKA under the guidance. This has not been

submitted to any other university or institute for the award of any degree/diploma certificate.

INTERNAL GUIDE
DR. J. SARITHA (Associate professor)
(HOD OF COMMERCE AND MANAGENENT)

Signature

EXTERNAL EXAMINER:
SIGNATURE
 DECLARATION

G. SUPRIYA, K. NIHARIKA hereby declare that the project entitled “A STUDY ON

CONSUMER BEHAVIOUR AND PROMOTIONAL STRATEGY METRO CASH AND

CARRY(INDIA)” submitted in partial fulfilment for the award of degree of Bachelor of

Commerce at ANDHRA MAHILA SABHA ARTS AND SCIENCE COLLEGE FOR WOMEN

(autonomous) affiliated to OSMANIA UNIVERSITY, HYDERABAD, is an authentic work

and has not been to any other university/institute for the award of any degree or diploma.

DATE G. SUPRIYA (1058-21-401-016)

PLACE: HYDEARBAD K. NIHARIKA (1058-21-401-056)

 ACKNOWLEDGMENT

This project is entitled “A STUDY ON CONSUMER BEHAVIOUR AND PROMOTIONAL

STRATEGY METRO CASH AND CARRY(INDIA)” submitted in partial fulfilment for the
award of degree of Bachelor of Commerce.

I offer the heartiest thanks to our college ANDHRA MAHILA SABHA ARTS AND SCIENCE
COLLEGE FOR WOMEN (autonomous) for allowing me to undertake this project. I thank our
beloved principal DR. K. JHANSI RANI and DR. J. SARITHA Associate professor, Head and
Dean Department of Commerce and Management.

I take immense pleasure in conveying my thanks and deep sense of gratitude to my project
guide to Mrs. DR. J. SARITHA Associate professor, Head and Dean Department of Commerce
and Management for giving me such an opportunity to sharpen my skills and translate the
wisdom and creativity into actions though constant guidance and informative discussion on the
project.

I wholeheartedly thank all my work to my teachers, family, friends and their support as a
gesture of respect.

Regards,
G. SUPRIYA (1058-21-401-016)
K. NIHARIKA (1058-21-401-056)
 A STUDY ON CONSUMER BEHAVIOUR AND
PROMOTIONAL STRATEGY METRO CASH AND
CARRY(INDIA)
 TABLE OF CONTENTS
INDEX

LIST OF TABLES

LIST OF CHARTS

ABSTRACT

INTRODUCTION 1
1.1 Introduction 2-4
1.2 Customer satisfaction measurement 4
CHAPTER:1 1.3 Need of the study 5
1.4 Objectives of study 5
1.5 Scope of the study 6
1.6 Limitation of the study 8
9
INDUSTRY AND COMPANY PROFILE
2.1 Company profile 10 – 11
2.2 The Metro concept 11 – 12
2.3 Company Profile/Industry Details/Product/Services 12 – 13
2.4 Metro Cash and Carry Guiding Principle Trust And
CHAPTER:2
Respect 13 – 14
2.5 Definition of The Market
2.6 Marketing Strategy 14 – 16
2.7 Product Strategy 16 – 21
2.8 SWOT Analysis of Metro Cash and Carry 22 – 26
27 - 29
30
PROMOTIONAL STRATEGY AND TOOLS
3.1 Introduction 31 – 33
3.2 Promotion 33 – 34
CHAPTER:3 3.3 Sales Promotional Tools Used by Metro Cash and 35 – 30
Carry

3.4 Impact of Brand Endorsement on promotion.

39 - 41
 DATA ANALYSIS AND INTERPRETATION
CHAPTER:4 42-52

FINDINGS, SUGGESTIONS
AND CONCLUSION 53
CHAPTER:5 5.1 Finding 54
5.2 Suggestion 55
5.3 conclusion and recommendation 56

BIBLIOGRAPHY 57-58

ANNEXURE
59-61
 LIST OF TABLES

TITLT TITLE OF THE TABLE PAGE NO.

NO
1 Distribution of respondents according to their 43
age factor.

2 Distribution of respondents according to their 44

occupation.
3 Distribution of respondents according to their 45
monthly income.
4 Distribution of respondents according to their 46
type of business.

5 Distribution of respondents according to their 47

awareness of metro cash and carry.
6 Distribution of respondents have been customer 48
at metro cash and carry.
7 Distribution of respondents according to their 49
frequency visiting to metro cash and carry.

8 Distribution of respondents according to their 50

kind of transaction preferred.
9 Distribution of respondents according to their 51
rating of metro cash and carry services.
10 Distribution of respondents according to their 52
recently launched offer pay less get more
option.
 LIST OF CHARTS

CHART TITLE OF THE CHART PAGE NO.

NO
1 Distribution of respondents according to their 43
age factor.

2 Distribution of respondents according to their 44

occupation.

3 Distribution of respondents according to their 45

monthly income.
4 Distribution of respondents according to their 46
type of business.

5 Distribution of respondents according to their 47

awareness of metro cash and carry.
6 Distribution of respondents have been customer 48
at metro cash and carry.

7 Distribution of respondents according to their 49

frequency visiting to metro cash and carry.

8 Distribution of respondents according to their 50

kind of transaction preferred.
9 Distribution of respondents according to their 51
rating of metro cash and carry services.
10 Distribution of respondents according to their 52
recently launched offer pay less get more
option.
 ABSTRACT

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 offers you a selection of over 7000 products under one roof. Pick up from our widest
assortment range including beverages, biscuits & snacks, detergents & toiletries, fruits,
vegetables & dry fruits, apparel & footwear, household items, large & small appliances,
stationery, textiles, luggage and a lot more. Get the best of local and national brands at great
prices.

METRO brings you the best of market offers and assortment to maximize your profit on each
purchase. Get fabulous offers 365 days a year and maximize your profits with METRO.
CHAPTER:1
INTRODUCTION

1
 INTRODUCTION
1.1 INTRODUCTION
Why Organizations Focus on Consumer Behaviour and Satisfaction.

Businesses monitor consumer Behaviour and satisfaction in order to determine how to

increase their customer base, customer loyalty, revenue, profits, market share and survival.
Although greater profit is the primary driver, exemplary businesses focus on the customer and
his/her experience with the organization. They work to make their customers happy and see
customer satisfaction as the key to survival and profit. Customer satisfaction in turn hinges on
the quality and effects of their experiences and the goods or services they receive.

Consumer Behaviour and Satisfaction

The definition of customer Behaviour and satisfaction has been widely debated as
organizations increasingly attempt to measure it. Consumer Behaviour and satisfaction can be
experienced in a variety of situations and connected to both goods and services. It is a highly
personal assessment that is greatly affected by customer expectations. Satisfaction also is based
on the customer’s experience of both contact with the organization (the “moment of truth” as
it is called in business literature) and personal outcomes. Some researchers define a satisfied
customer within the private sector as “one who receives significant added value” to his/her
bottom line—a definition that may apply just as well to public services. Customer satisfaction
differs depending on the situation and the product or service. A customer may be satisfied with
a product or service, an experience, a purchase decision, a salesperson, store, service provider,
or an attribute or any of these. Some researchers completely avoid “satisfaction” as a
measurement objective because it is “too fuzzy an idea to serve as a meaningful benchmark.”4
Instead, they focus on the customer’s entire experience with an organization or service contact
and the detailed assessment of that experience.

Customer satisfaction depends on the product’s performance relative to a buyer’s

expectation, the customer is dissatisfied. If preference matches expectations, the customer is
satisfied. If preference is exceeding expectation, the customer is highly satisfied or delighted
outstanding marketing insurance companies go out of their way to keep their customer
satisfied. Satisfied customers make repeat purchases insurance products and tell other about
their good experiences with the product. The key is to match customer expectations with

2
company performance. Smart insurance company’s aim to delight customers by promising
only what they can deliver, then delivering more than the promise. Consumers usually face a
broad array of products and services that might satisfy a given need. How do they choose
among these many marketing makers offers? Consumers make choices based on their
perception of the value and satisfaction that various products and services deliver.

Customer value is the difference between the values the customer gains from owning
and using a product and the costs of obtaining the products customers from expectations about
the value of various marketing offers and buy accordingly. How do buyers from their
expectations? Customer expectations are based on past buying experiences, the opinion of
friends and marketer and competitor information and promises.

Customer satisfaction with a purchase depends on how well the product’s performance
lives up to the customers’ expectations. Consumer satisfaction is a key influence on future
buying behaviour. Satisfied customers buy again and tell others about their good experiences
dies-satisfied customers of ten switches to competitors and disparage the products to
others. An insurance provider opens only to active duty, retired and separated military
members and their immediate families and therefore not included in the rankings, achieved a
satisfaction ranking equal to that any insurance company.

Depending on the industry and the nature of the bad experience, dissatisfied customers will
complain to 10 to 20 friends and acquaintances, which is three times more than those with good
experiences are. Hence, the negative information is influential, and consumers generally place
significant weight on it when making a decision. If that is not the reason enough, fierce
competitor is needed more and more to differentiate firms from one another. With technology
available to virtually every one today, the traditional features and cost advantages are no longer
relevant. Still product and service quality provide an enormous opportunity to distinguish a
firm from the rest. The Japanese have recognized this and have though us to expect quality.
Today’s consumers do, and they know more about products and services than they ever did.

Customers are the best source of information. Whether to improve an existing product
or service or whether firms are planning to launch something new. There is no substitution for
“getting it from horse’s mouth” When you talk to your customer directly, to increase your odds
for achieving success you “mistake-proof” your decisions and work on what really matters.

3
When you routinely ask the customers for feedback and involve them in business, they, in turn,
become committed to the success of your business.

1.2 CUSTOMER SATISFACTION MEASUREMENT

A basic and effective base line customer satisfaction survey program should focus on
measuring customer perceptions of how will the company delivers on the critical success
factors and dimensions of the business as defined by the customers:

For example:

 Service Promptness
 Courtesy of Staff
 Responsiveness
 Understanding the customer problem, etc.

The findings of the company performance should be analysed both with all customers and by
key segments of the customer population. The essential starting point for Customer Satisfaction
Measurement (CMS) is exploratory research. Since satisfaction is about an organization’s
ability. To meet customer requirement, one has to start by clarifying with customers exactly
what those requirements are. This is done through exploratory research using focus groups or
one to one depth interviews.

Two main factors determine the accuracy of CMS. The first is the asking the right
question and the second is the asking them to the right people sample of customers which
accurately reflects the customer base.

Three things decide the accuracy of a sample. They are:

 It must be representative.
 It must be randomly selected.
 It must be adequate enough.

4
1.3 NEED OF THE STUDY
Customer satisfaction survey is a systematic process for collecting consumer data, analysing
this data to make it into actionable information, driving the results throughout an organization
and implementing satisfaction survey is a management information system that continuously
captures the voice of the customer through the assessment of performance from the customers’
point of view.

1.4 OBJECTIVES OF STUDY

The setting of objective is the corner stone of a systematic study. The study will be fruitful one
when the basis laid down is a concrete one, they represent the desired solution to the problem
and help in proper utilization of opportunities.

Objectives:

The objectives of the research are:

1) To find out which sales promotion tools will increase the sales
2) To find out how brand ambassador can influence sales promotion.

3) To find out the market share of “Metro Cash and Carry”

4) To know the features that attracts the consumer towards Metro Cash and Carry.

5) To know the level of satisfaction of consumers towards “Metro Cash and Carry”.

5
1.5 SCOPE OF THE STUDY

The scope of the study is limited to the marketing activity of Metro cash and carry. It will give
an in-depth theoretical and practical knowledge of the marketing aspects and the strategies used
to introduce products/services of Metro cash and carry according to their customer choice and
satisfaction. People now are becoming more advanced in terms of their health and the value for
their money. They want profitable benefits out of their investment. So, there is a need to know
the company’s efforts towards satisfying the customer with their product.

Survey method:

A Survey is a complete operation, which requires some technical knowledge Survey

methods are mostly personal in character. Surveys are best suited for getting primary data. The
research obtains information from the respondents by interviewing them.

Sampling: It is not always necessary to collect data from whole universe. A small
representative sample may serve the purpose. A sample means a small group taken in a large
lot. This small group taken in a large lot. This small group should be emanative cross section
and really “representative” in character. This selection process in calls sampling.

Sample size: Samples are devices for learning about large masses by observing a few
individuals. The selected sample is 100.

Collection of data:

One of the important tools for conduction market research is that availability of necessary
and useful data. Date collection is more of an art than a science. The methods of marketing
research are in a way the methods of data collection. The sources of information fall under two
categories.

Internal sources:

Every company has to keep certain records such as accounts, reports etc. these records
provide sample information which an organization usually keeps collection in its working.

6
External sources:

When internal records are insufficient and required information is not available, the
organization will have to depend on external sources of data are: -

a) Primary data:

The data collected for a purpose in original and for the first time is known as primary
data. The researches collect this data to study a particular problem.

Here the primary data is data collected through questionnaire by directly meeting the
customers

b) Secondary Data:

The data, which is collected from the published sources i.e., not originally collected
of the first rime is called secondary data.

Here the secondary data is data collected from the company’s brochures, pamphlets,
catalogues and the website.

QUESTIONNAIRE DESIGN:

The data was collected by means of questionnaire and was classified and analysed carefully.
Questionnaire is constructed so that the objectives are clear to the respondents. In this research,
the questionnaire was formed as a direct and structured one. The type of questions that were
included was:

1. Close-ended questions:

This type of question has only two answers in the form of yes/no or true/false.

2. Multiple-choice questions:

In this case, the respondents are offered two or more choices. The respondent has
to indicate which is applicable in his case.

3. Dichotomous Questions:

Question with two possible answers to the question, for example “yes” or “No” were
used.

7
1.6 LIMITATION OF THE STUDY

 Metro Cash and Carry India Private Limited does not no any business on the internet.
All purchases must be undertaken physically at our Cash & Carry Distribution
centers.
 Only registered customers of the company are allowed to make purchases from
METRO in India. Registration can be obtained only by approaching metro. You
cannot obtain registration over the internet.
 The company reserves the right to reject your application for membership for any
reason whatever. The company is not obliged to disclose the reasons for rejecting
your application for registration as a customer.

8
Chapter 2

Industry and company

profile

9
 INDUSTRY AND COMPANY PROFILE
2.1 COMPANY PROFILE

METRO CASH AND CARRY is an international self- service wholesaler. It operates across
Europe and in some countries of Asia and North Africa.

It is the largest sales division of the German trade and retail giant.

METRO cash and carry is different from Business-to-Business retail chains (such as
Walmart, Carrefour or Tesco) in that its business concept is targeted towards professional
customer rather than end consumers. The cash –and –carry concept is based around self-service
and bulk buying. METRO cash and carry serves to registered customers only. Core customers
are hotels, restaurant, caterers, traders and other business professional.

THE GLOBAL PIONEER IN CASH AND CARRY WHOLESALING :

METRO cash and carry pioneered the self-services Business to Business wholesale concept.
Our dynamic business model adapts seamlessly to the most demanding markets. Headquarter
in Germany. METRO cash and carry is the largest sales division of the $67.3billion.

METRO’S success story began over 4 decades ago in 1964, with the opening of its first
wholesale distribution center in Germany today, the company in a leading player in almost
every market. It operates in around 700 wholesale centers across 30 countries.

THE CASH AND CARRY CONCEPT:

Cash and carry wholesale is primarily defined by its customer base and the unique
business model. This means, registered business customers visit the outlet, select their own
purchases and carry these back themselves instead of placing orders with multiple vendors.
Every day at METRO outlet across the world, more than one lakh employees serve business
customers with a wide assortment of up to 50,000 food and non-food products available under
one roof at wholesale prices.

THE METRO CASH AND CARRY is designed as an agglomeration of bazaars or Indian

markets with clusters offering a wide range of merchandise including fashion and apparels,
food products, general merchandise, furniture, electronics, books, fast food and leisure.

10
 THE METRO CASH AND CARRY stores are aimed at providing a local marketplace
feel to the shoppers. They offer a wide variety of household items including retail apparels,
food products, general merchandise, furniture, electronics, books, fast food, etc. Several stores
also have leisure and entertainment sections.

2.2 THE METRO CONCEPT

 Wholesale exclusively for business customers.
 Customers are registered and need a customer card to enter the premises.
 The point of sales is a large warehouse.
 The customer picks merchandise, pays and transports the goods or uses our
transportation services.
 A high percentage of the goods are from local suppliers.
 METRO Cash & Carry ranked 2nd in country’s top ten retail companies in GREAT
PLACE TO WORK Survey

 Is the only wholesaler to receive the coveted honor

 New Delhi, February 12, 2015: The country’s most trusted wholesaler METRO Cash
& Carry has been ranked second in the Great Place to Work Survey of the country’s Top
Ten Retail Companies.

 METRO Cash & Carry India operates sixteen wholesale distribution centers including
three in Bangalore, two each in Hyderabad and Mumbai, and one each in New Delhi,
Kolkata, Ludhiana, Jaipur, Jalandhar, Amritsar, Vijayawada and Indore. The company
takes pride in being the only wholesale company in the entire list of retail/wholesale
companies nominated for the survey. Ranked 6th last year in the same list, METRO has
now moved four rungs ahead in the Top Ten Retail Companies ladder in 2015. The
German brand METRO is the pioneer of Cash & Carry model across the globe and has
completed its 50th anniversary last year. METRO was the first Business to Business
wholesaler to enter the Indian market in 2003 and at present has a headcount of about
3100 employees. Cutting edge HR practices such as innovative employee engagement
initiatives, dynamic career growth opportunities and a progressive organizational
structure are a few factors which helped METRO bag.

11
  Speaking on the occasion, Dr. Sagarika Ghoshal, Director, HR, METRO Cash &
Carry India said, “It gives me immense pleasure to receive the honour on behalf of
METRO Cash & Carry. We at METRO strive to maintain optimum employee satisfaction
and understand the need to provide a positive and supportive work environment to our
employees.
With over a decade of customer insights, market understanding and a vast supply chain
network that supports local suppliers, METRO Cash & Carry contributes to the growth
of the local economy. With each store opening, METRO creates around 300 local jobs
(150 direct and 150 indirect). The workforce at each store undergoes in-depth and
rigorous on-the-job training in the various operational aspects of the wholesale business.
 METRO Cash & Carry is represented in 27 countries with over 750 self-service
wholesale stores. With a headcount of about 110,000 employees worldwide, the
wholesale company achieved sales of about € 32 billion in the financial year 2012/2013.
METRO Cash & Carry is a sales division of METRO GROUP. METRO Cash & Carry
entered the Indian market in 2003. The company currently operates sixteen wholesale
distribution centers including three in Bangalore, two each in Hyderabad and Mumbai,
and one each in New Delhi, Kolkata, Ludhiana, Jaipur, Jalandhar, Amritsar, Vijayawada
and Indore.

2.3 COMPANY PROFILE/INDUSTRY DETAILS/PRODUCT/SERVICES

METRO Cash & Carry is a leading international company in self-service wholesale and
operates more than 600 outlets in 29 countries. It is 3rd largest trader in world, 2nd largest in
Europe and the Largest in Germany with a turnover of €59.9 billion in 2006. METRO is
operating around 2,378 locations in 29 countries, with employees numbering over 263,000. At
the operational level, the group's five sales divisions conduct business independently in their
respective markets. With over 100,000 employees worldwide, the company achieved sales of
€ 31.7 billion in 2007. By generating almost 50 percent of the total sales, METRO Cash &
Carry is the top-selling sales brand of the METRO Group.

12
Mission
"METRO is a Cash & Carry Wholesaler for businesses and professionals. METRO provides
quality products and business solutions at the lowest possible prices."

Vision
"METRO will dominate the Cash & Carry wholesale segment globally, through our unique
business formula which improves the competitiveness of our customers all over the world."

Metro cash & carry Overview

Metro cash & carry describe themselves as "Market Leaders" in cash & carry wholesale
business. This claim is based in the approach to their core competition.

The competitive advantage on which compete in the market is the low Prices with high level
of Quality at a same place with convenience. METRO provides each and every thing of
household use like food items, electronics, automobile parts and much more at the same place
and the major factor is the low prices and they maintain the high-quality level. And for this
purpose, they directly deal with the companies for the supply of their products so that the
competitive advantage can be enhanced more.

2.4 METRO CASH AND CARRY GUIDING PRINCIPLE TRUST AND

RESPECT
 Everybody's opinion counts
 Everybody is equal that’s Why metro treat every person the same way

 Open Door Policy

Metro avoids organizational barriers
Two-way communication
Metro always encourage change and sharing of ideas
 Empowerment to Personal Responsibility
By allowing people to take risks
Metro think "making mistakes" as part of the game
 Setting Clear Personal Objectives and Tasks
Metro have implemented a management-by-objectives concept

13
  Recognition and Reward
Metro considers honest and transparent feedback

Metro reward high performance (not only with money)

 Team Spirit
Metro encourages maximum team engagement and knowledge

 Positive Working Environment

Metro guarantees a safe and healthy working environment

Metro encourages innovation and creativity

 Corporate Social Responsibility

Metro is committed to the principles of social responsibility

2.5 DEFINITION OF THE MARKET

The METRO cash and carry business lies in the Monopolistic Competition. There are
few sellers and each has its own specialization and it charge the prices according to the product
quality and characteristics. There is no entry or exit barrier in this market. Even five more cash
and carry businesses are allowed by government to open their branches in Pakistan.

Market Focus and Segmentation

Segmentation

METRO segmentation of customers is mainly concerned with the two factors, Retailers, and
professionals of every sector design the proper segmentation of the METRO Cash and Carry:

Demographic

Income Level Minimum Rs. 20000.Economic factor Inflation, reduced Productivity.

Psychographic

Social Class Working Class (Retailers and Professionals) Buying Habits Convenience
Perception High Quality with low price Personality Profit Conscious

14
Behavioural

Benefits shopping at one place, Customer Care Usage rate weekly Occasion Regular Loyalty
status Strong customer relationship Readiness Stage Desirous.

Targeting

The targeting strategy of METRO cash & Carry depends upon the segmentation. METRO
carries the differentiated market targeting strategy. They take the whole customers as a market
and carry out the marketing strategy same for the whole. At this time METRO cash and carry
is concerning with the differentiation strategy. They can also come up with the focus strategy
for the retailers so that they think that METRO cares them and conducting a major portion of
business just for the retailers. It will convince and internally force them to come to METRO
just to admire its services and respect to the retailers.

Is it a focused strategy?

Yes, in the sense that all their customers are users of databases. No in the sense of that they are
all different sizes and sectors. Also –Well Data do not sell the software applications licenses.
They can, and do, sometimes sell hardware but this is as a convenience for their customers.

Is it a differentiation strategy?

 Yes, in the sense that they are looking specifically at wholesalers and retailers.
 Yes - as their approach to the core function is fundamentally different to the rest of the
marketplace (no fail).
 Yes - as they have a key "Business Ready" report for customers before the start of the
working day.
 Yes, as all technical staff are employed and not contracted. On balance this seems to be
a differentiated approach.

Is it a cost leadership strategy?

 Possibly because Metro always believes in low prices. METRO is the symbol of whole
sale departmental store as the lower prices with the high quality and availability of
everything at a same place. You just visit it and you can get everything. what you can
think to buy.

15
  Based on the above, very simple, observations, the metro cash & carry strategy would
fall somewhere between the differentiation strategy and the focused strategy. In terms
of Bowman's Strategy Clock, the picture is clearer. Metro fall under clearly into the
Differentiation strategy.

Premium Priced

The question of price premium is open to further discussion. Although this next section should
really be covered in the analysis of Metro cash & carry under Porters five forces model. Quantix
will open the proposition with a low price and low added value service. If the customer buys
into this it is a relatively simple matter to "upsell" the customer to more expensive, but more
added value, services.

1. Low price/low added value Likely to be segment specific.

2. Low price Risk of price war and low margins/need to be cost leader.

3. Hybrid Low-cost base and reinvestment in low price and differentiation.

4. Differentiation.

(a) Without price premium. Perceived added value by user, yielding market share benefits.

(b) With price premium. Perceived added value sufficient to bear price premium.

5. Focused differentiation Supposed added value to a particular segment, warranting price

premium.

6. Increased price/standard Higher margins if competitors do not value follow/risk of lo

losing market share.

7. Increased price/low value Only feasible in monopoly situation.

8. Low value/standard price Loss of market share.

2.6 MARKETING STRATEGY

Marketing strategy audit is conducting to analyse and identify the significance of mission
statement and the vision and objective of the METRO cash and carry and the consistency and
interrelation between them. The METRO cash and carry has the clear mission statement. It has
no doubt. They clearly stated that the professionals and retailers are their customers and they
try to serve them with high quality products along with low prices.

16
Apart from this the objectives and goals are almost accordingly. They also describe their
objectives along with the principals of METRO which has to follow by every staff member and
these principals give the respect and care to the customer and this thing is already stated in
mission and objectives.

Who are the existing / potential customers?

At METRO Cash & Carry only the commercial customers can purchase goods. Metro provided
a customer card to all their registered customers. Metro's main customers are small and medium
sized traders, hotels, restaurant, some catering businesses centers, companies and institutions.
They can purchase goods more easily and at more prices as compared to usual sources.

This enables METRO Cash & Carry to strengthen the competitiveness of its professional
customers. METRO has the limit of minimum RS. 2000 on shopping which restrict the
customer mentally to think before visiting so it should be eliminated.

It has the membership fees of Rs.300 which is also be demolished. It also has the limit of 3
persons at a single card, it may be happening that more than three retailers want to come on a
single card which restrict them to come together so also remove this one. Metro cash & carry
customers are mostly wholesalers and retailers.

What are the current / future needs?

In general terms the basic needs of customers can be categorized into three main areas
Operational Cost Reduction/control, Operational Scalability, Effectiveness. The primary driver
has to be operational effectiveness. The whole purpose for the database is to provide the
underlying platform for mission critical services within the customer organization. This is the
area in which Well Data claim leadership. Technological expertise and a proactive approach to
Database support and administration underpin the solution offered by Well Data. In this aspect
the marketing massage is clear - high value-add/premium quality. Operational Scalability is
more related to the internal demand and resources of the customers. However, the Well Data
model is designed to be flexible and can cope with either increases in scope or decreases. The
marketing message here is neutral.

Operational Cost Reduction/control is an area where the Well Data proposition is in danger of
being unclear. They have lost customers as a result of a perception that are cheaper. They have
also regained customers following by the customers that Well Data are technically more

17
competent and offer better overall value for money. This aspect of their marketing proposition
needs to be given further thought and a clear policy communicated to the market place.

PEST Analysis:

Political Environment-

These are the factors regarding the government which influences the workings of METRO
Cash and Carry. The management always keep in mind the threat of change in government.
They analysed several times before doing further expansion in this market. The tax rebates and
certain other favours given by the previous government can be set aside by the change in the
government. The ineffective control of every government regarding the prices of products and
inflation creates certain problems because customers' demands product at the same and low
price while in such conditions prices changes rapidly. Any political activity regarding labour
and political matters strikes creates hurdles in the way of the METRO's success.

Economical Environment-

Economical changes of country effects METRO Cash and Carry in such a way that the interest
rates charged by banks can not only restrict the spending power of customers but also in the
fund raising for the company. Interest Rate is about 14.5% on deposits and 17% on loans. The
rapid growth in inflation rate is the major factor influencing the spending power of buyer.
Inflation rate in India is about 9.3% yarely while inflation rate of 3rd quarter was 21.5%
approximately. Devaluation of money and increasing exchange rate discouraging the investors
to invest in Indian market. Policies of state bank can be influenced by the existing political
party and government and every person either business or a separate citizen entity holder has
to follow these rules govern by the State bank.

Switching cost matters a lot in the buying decision behaviour of customer. The switching cost
can be higher in terms of time and the distance competitively the other specialized whole sale
markets. Un-fair distribution of wealth is the key factor of purchasing and also the major
characteristic of third world countries. A person's spending only shifts from necessaries to
luxuries with the increase in money it does not increase his spending.

Socio-Cultural Environment-

First of all, society and the culture of people in Hyderabad and its markets is not as much
adapting to change. They do not easily accept the new arrivals in any field of the product or

18
services. So, METRO Cash and Carry for cash kind of product still there is not a huge market.
Although departmental store concept is already good here but it will take time to understand
and develop the kind of shopping culture. The habit of people in Hyderabad is to buy goods
from the nearest market on the day-to-day basis and needs. They do not purchase the whole
month grocery and other things. Secondly, they prefer to buy on credit. And to pay in
instalments.

Technological Environment-

METRO Cash and Carry, a huge departmental store chain more than in 29 countries is already
using the update and high-tech mechanism for the shifting of products and for other purposes.
They have not too much threat of any technological changes. Customer's card is already in use
along with the entry with that card, precautionary measures like cameras are installed for safety
reasons. They have not any proper or main manufacturing which requires machines so their
use of machines is just the cranes and folk lifters and such that machineries.

Porter's Five forces mode:

Bargaining Power of Buyer-

As far as the bargaining power of METRO buyer's is concerned, METRO is not in a strong
position. They have low power against the customers because customer influence in pricing
and shifts towards other sellers if he/she is not satisfied with the quality or price of the
manufactured goods or services.

Bargaining Power of the Supplier-

METRO has many options to buy products from any supplier. So, suppliers try to make possible
their products at their store. So, we can say that METRO has high bargaining power with
respect to the suppliers.

Threats of Substitutes-

METRO has the close substitutes the specialized whole sale markets are the great threat to the
organization. If the customer is not satisfied with any factor they can easily switch to the other
because he/she has the almost exact or the same kind of substitutes.

19
Threats of New Entrants-

Government is allowing certain new investors to invest in the cash and carry business. Although
initial investment for this industry is much high but for such kind of chains like Wal-Mart and
others have no problem in that. So, METRO also has a high threat of new entrants.

Rivalry among Existing Competitors-

Presently, the existing competitor of METRO is only the whole sale markets of every product.
But the specialized whole sale market dealers cannot run any customers' concerning marketing
campaign.

Customer Buying Decision Behaviour-

The main customers of METRO are the retailers and the hotels, restaurants and other
professionals who do not buy goods for their own use but to serve their further own customers.

METRO is expecting the Variety Seeking and convenience shopping behaviour from their
customers. Because it is such kind of product that the customer can change its mind just on a
factor of pricing and shift on the other exactly direct competitors and also has the option of
specialized wholesale markets. Customer has full knowledge along with the choices.

Product Life Cycle of Metro:

- Product development - sales are zero, investment costs are high

- Introduction - profits do not exist, heavy expense of product introduction
- Growth - rapid market acceptance and increasing profits
- Maturity - slowdown in sales growth. Profits level-off. Increase outlay to compete
- Decline - sales fall-off and profits drop

This is the least risky of all the routes. It fits well with the results of the customer profile
analysis which shows that the Well Data customer base contains significant numbers of large
companies who are also national or Global in their nature. By focussing on the existing
customers and cross selling or up selling, Well Data have the opportunity to tap into a market
segment that already likes what they do and where the strength of internal customer references
should work favourably on their behalf.

20
Same Product - New Market (Market Development):

This is a more risky approach as it involves WellData being able to clearly identify a new
market segment in which to operate. Given the difficulty in identifying a clear segment in which
they already operate, the danger is that the chosen segment is hard to define, hard to identify
and hard to quantify. In addition WellData have no "Brand" name outside their existing area of
operation and in this aspect would face the same barriers to entry outlined in Porter's analysis
above.

New Product - Same Market (Product Development):

For WellData this lies between Market Penetration and Market Development in terms of Risk.
They are already established in their own market place and have a good reputation amongst
their existing customers. An area of relatively simple product development is the move to
desktop support.

This is a function that WellData already carry out for some existing customer and which lies
within their functional capabilities. They can simply offer the extended service to existing
customers as an upgrade to the current services.

New product - New Market (Diversification):

This is a high-risk approach and is not one that would be simple to bring about in Metro. The
move away from current skill sets and current markets would place a burden on Metro that they
are unlikely to want or be able to afford.

Management Process

Analysis/Audit - where are we now?

Currently Metro cash & carry is a problem. They have a small market share in a growth market.
In order to develop they need to increase sales and revenue and their customers. Their sales
revenue is quite good. And their desire is to be a leading player in the cash and carry market
place. To achieve this goal, they have to focus their activities in those areas where their
strengths (technical expertise and a low-cost base) can be brought to bear.

21
2.7 PRODUCT STRATEGY

For Metro cash & carry the market penetration and Product development are the two key
directions. Product quality is maintained and additional features and support services may be
added. Product branding and quality level is established and intellectual property protection
such as patents and trademarks are obtained.

Generic Strategy:

Metro cash & carry transitioning from a focussed/differentiation strategy to one of cost
leadership/ differentiation without a price premium. In Bowman's terms this would be a hybrid
strategy. Such a strategy is designed to attract market share.

Pricing Strategy:

Pricing strategies need to be rethought in order to counter the tactical threat. Metro cash &
carry at low penetration pricing to build market share rapidly of high skimming pricing to cover
development costs.

The 4 P's:

PRODUCT-

Is the product the right product?

Do Metro have the portfolio of products that they need?

The existing set of products (services) is focussed around the wholesaler's market. And each
store is customized to address. Â needs of professional customers. Metro offers 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 Metro's first priority. This is guaranteed by the efficient
supply-chain and quality control management Metro have in-place. In non-food, Metro offer
only products that are up-to-date in terms of technology and design, and meet all safety
standards.

PLACE-

Place ensures that the product is available at the right time, right place and in an effective and
efficient manner. For METRO Place decisions are important due to two aspects. First, they

22
require long term commitments in buildings and facilities, which means that mistakes can be
difficult to correct. Second, these decisions require large financial investments and can have a
large impact on operating costs and revenues. Poor location can result in high transportation
costs, insufficient supplies of raw materials and labour, loss of competitive advantage and
financial loss.

PRICE-

METRO cash & carry follows the pricing strategy of Markup Pricing along with Competitor
base Pricing. Mark Up pricing strategy in such a way that they charge 3% profit on each item.
The prices are displayed inclusive and exclusive of taxes to facilitate and to create awareness
among retailers and professionals that they can get the tax credit on the resale of the items
which are purchased from METRO Cash & Carry.

METRO is also following the Competitor base pricing because it is not working in lonely
system and its products are not unique so it has not only to follow the prices which are being
charged by the competitors but try to charge lower prices as compared to competitors.

PROMOTION-

METRO cash and carry promotes its product not intensive marketing campaign because their
customers are just retailers and professionals so they just opt that media sources which directly
hit target market.

They are promoting by the following ways

Billboards: METRO place billboards at the outside of the store.

Newspaper: METRO advertised in newspaper such as Jang and The Nation to create
awareness.

Catalogues: METRO provides products and new offers catalogue not only at the stores but
also mail it to the customers and members.

Personal selling: METRO has staffs who visit restaurants and professionals to convince them
and create interest to purchase products for the use of their business.

23
Social Networking

Much has been made of the emergence of social networking as a modern phenomenon
especially amongst the young. However, it is increasingly the case that modern legislation is
preventing suppliers from communicating with potential customers unless the customer has
already agreed (Telephone Preference Service, Corporate Telephone Preference Service, Mail
Preference Service, Data Protection Act etc). This clear Catch-22 is forcing suppliers down
two, increasingly expensive and unproductive routes.

Media advertising

Social Networking (Facebook, Twitter, LinkedIn, and Myspace etc.) offers a new route to
potential customers that is currently still open to businesses. Although these routes are not free,
they are still novel enough to attract attention and be considered as a user friendly/personal
route to market.

However, these routes are not without challenges of their own. The time and human resource
required creating and, even more importantly, maintaining these pages on a daily or hourly
basis is a considerable investment in its own right.

E.G. A Facebook page is free. Facebook adverts operate on a pay per click basis (similar to
Google). Although these adverts can be targeted to specific job titles the actual number of
people who will be targeted is still small as many Facebook users do not include their job title
in their profile. A combined approach of Twitter and Facebook seems to work well and have
little external cost. IE Twitter an update (Windows 7 etc.) and link it to Facebook. This gives
two opportunities to get your name out to interested parties without massive expense.

24
Own Brands at METRO

10 Advantages of Shopping at METRO:

Lowest prices-

With our huge purchasing power & efficient operations, we make sure to provide you quality
products at the best prices.

It's Your Warehouse-

With our computerized goods management system, you are assured about availability of all our
products, in the quantities you need. That means you don’t need to tie up money in slow-
moving stock: just order what you want, when you want it!

Free Parking-

Hassle-free parking space is provided at each METRO center for literally hundreds of vehicles,
to make sure that you are free of parking problems.

After-sales Service-

We do not just make a sale and leave it at that, we’re with you all the way. Our Customer
Service Team is available to you for resolving your queries, and problems, if any.

25
Clear and easy invoice-

Our detailed invoice makes it easy for you to monitor your purchases. All your purchase
information is available on a single invoice, enabling you to manage your stocks better.

Quality Guaranteed-

Strict quality checks and modern storage technology including cold storage ensure that you get
the best quality, always.

Everything Under One roof-

METRO stocks more than 10,000 different Food & Non-food items to meet all your different
needs under one roof. Imagine the time you’ll save now that you no longer need to go to
multiple sources!

Extended Business Hours-

We’re here for you, nearly anytime you need us! To make sure that you are always served, we
are open 7 days a week, from 6 a.m. to 10 p.m.

Offers at your Fingertips-

Every two weeks you receive our catalogue, METRO Mail, with over 300 offers for your
business at the best wholesale prices. Also receive instant alerts through e-mail and SMS.

Great value for money-

A wide range of our own in-house brand products offers high quality at the lowest price, which
adds to your profits even more.

26
2.8 SWOT ANALYSIS OF METRO CASH AND CARRY

STRENGTHS-
The first step in doing a SWOT analysis for retail entails identifying certain strengths. METRO
has the basic strength of low prices with high quality. Serving the customers with the wide
variety of products. Covering all business solutions under one roof named METRO. Having
the strong cash and carry business background.

Best location for such kind of big store and also covering many areas. Efficiently using the
place and excellent layout. Sufficient parking and safety and security measures ensure the
quality in every sector. Friendly and co-operative staff. Computerized data base system which
helps both customer and METRO. Cafeteria in the building for the refreshment of customers.

One possible strength may be the retailer's financial backing, meaning it has plenty of
capital and access to bank loans. Another strength may be the retailer's cheaper wholesale
prices. Additionally, the retail company may offer unique products compared to other retailers.
For example, a clothing store may sell high quality but slightly defective clothing at a low
price. Whatever the case, a retailer should make a list of all its strengths vs. key competitors

WEAKNESSES-
When reporting weaknesses, the retail store or company should start with its most palpable
weaknesses. Less awareness regarding cash and carry business. Although location for a big
store is suitable but outside the city and not suit for all customers. No proper transportation for
customers to carry their products far away. Limit of 3 persons on a single membership card
Restriction of shopping minimum Rs 2000 Membership or subscription fees for cards.
Shopping from METRO is much time consuming because the travelling and in store visiting
time.

For example, through market research, the retailer may have discovered it has a weak brand
image versus key competitors. The retailer may also lack an identity. For instance, the store
may sell cheap and expensive brands. It may also be lacking in customer service. Essentially,
the store has no competitive advantage that sets it apart from other retailers. Retailers should
list all weaknesses, then make improvements as needed.

27
OPPORTUNITIES-
Another step in a retail SWOT analysis is identifying key opportunities in the market. Growing
market of cash and carry Expansion in major cities. Online shopping is much better option to
save time contracting with major hotels and restaurants. Proper METRO owned convenes
facilities. There is a myriad of opportunities a retailer may discover through both its sales force
and market research. Opportunities can include an unfilled consumer need, according to
quickmba.com, an online business reference site. For example, a small web design company
may see an opportunity to add consulting services, if it has customers that desire it. Or a retail
company may have the opportunity to purchase a smaller retailer to increase market share.

THREATS-
A retailer can identify certain threats through a SWOT analysis. Threats can include a decrease
in consumer demand, a recession, price wars among key competitors, or even an increase in
competition. Even a change in shopping habits can be a major threat to a retailer. For example,
when people starting migrating to the suburbs in the 1950s and 1960s, downtown retailers,
which represented the traditional way of shopping, were affected.

Sales promotion:

Sales promotion consists of a diverse collection of incentive tools, mostly short term,
designed to stimulate quicker or greater purchase of particular products or services by
consumers or the trade. Sales promotion is a key ingredient in marketing campaigns.

Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.
Sales promotion includes tools for consumer promotion- samples, coupons, cash refund offers,
price offs, premiums, prices, point - of- purchase displays and demonstration; Trade promotion
– prices off, advertising and display allowances, and free goods; and business and sales for
promotion – trade shows and conventions, contests for sales reps and specialty advertising.

28
Factors that contribute to the rapid growth of sales promotion:

Internal Factors:

Promotion is now more accepted by top management as an effective sales tool; more
product managers are under great pressure to increase current sales.

External Factors:

The number of brands as increased; competitors use promotions frequently, many brands
are seen as similar: consumers are more price-oriented; the trade has demanded more deals
from manufactures; and advertising efficiency has declined because of raising costs, media
clutter and legal restraints.

1) Communication: They gain attention and usually provide information that may lead the
consumer to the product.

2) Incentive: They incorporate some concession, inducement or contribution that gives value
to the consumer. Incentive-type promotions are given to attract new tiers, to reward loyal
customers and to increase the repurchase rates of occasional users.

3) Invitation: They include a distinct invitation to engage in the transaction now. Companies
use sales promotion tools to draw a stronger and quicker buyer response. Sales promotion can
be used for short- run effects such as to dramatize product offers and boost sagging sales.

Major decisions in sales promotion:

In using sales promotion, the following decisions are to be taken:

 Establish objectives
 Select the sales promotion tools
 Develop the program
 Pre-test the program
 Implement and control the program
 Evaluate the results

29
Chapter 3
PROMOTIONAL
STRATEGY AND TOOLS

30
 PROMOTIONAL STRATEGY AND TOOLS

3.1 INTRODUCTION

The promotion element of marketing mix is concerned with activities that are undertaken to
communicate with customers and distribution channels to enhance the sales of the firm. The
promotional communication aims at informing and persuading the customer to buy the product
and informing him about the merits of the products.

Promotion mix

It refers to all the decisions related to promotion of sales of products and services. The
important decisions of promotion mix are selecting advertising media selecting promotional
techniques, using publicity measures and public relations, etc.

There are various tools and elements available for promotion. These are adopted by firms to
carry on its promotional activities. The marketer generally chooses a combination of these
promotional tools.

Following are the tools or elements of promotion. They are also called elements of promotion
mix:

 Advertising
 Sales promotion
 Personal selling
 Publicity

Product promotion is one of the necessities for getting your brand in front of the public and
attracting new customers. There are numerous ways to promote a product or service. Some
companies use more than one method, while others may use different methods for different
marketing purposes. Regardless of your company's product or service, a strong set of
promotional strategies can help position your company in a favourable light with not only
current customers but new ones as well.

Contests:
Contests are a frequently used promotional strategy. Many contests don't even require a
purchase. The idea is to promote your brand and put your logo and name in front of the public

31
rather than make money through a hard-sell campaign. People like to win prizes. Sponsoring
contests can bring attention to your product without company overtness.

Social Media:
Social media websites such as Facebook and Google+ offer companies a way to promote
products and services in a more relaxed environment. This is direct marketing at its best. Social
networks connect with a world of potential customers that can view your company from a
different perspective. Rather than seeing your company as "trying to sell" something, the social
network can see a company that is in touch with people on a more personal level. This can help
lessen the divide between the company and the buyer, which in turn presents a more appealing
and familiar image of the company.

Mail Order Marketing:

Customers who come into your business are not to be overlooked. These customers have
already decided to purchase your product. What can be helpful is getting personal information
from these customers. Offer a free product or service in exchange for the information. These
are customers who are already familiar with your company and represent the target audience
you want to market your new products to.

Product Giveaways:
Product giveaways and allowing potential customers to sample a product are methods used
often by companies to introduce new food and household products. Many of these companies
sponsor in-store promotions, giving away product samples to entice the buying public into
trying new products.

Point-of-Sale Promotion and End-Cap Marketing:

Point-of-sale and end-cap marketing are ways of selling product and promoting items in stores.
The idea behind this promotional strategy is convenience and impulse. The end cap, which sits
at the end of aisles in grocery stores, features products a store wants to promote or move
quickly.

This product is positioned so it is easily accessible to the customer. Point-of-sale is a way to

promote new products or products a store needs to move. These items are placed near the
checkout in the store and are often purchased by consumers on impulse as they wait to be
checked out.

32
Customer Referral Incentive Program:
The customer referral incentive program is a way to encourage current customers to refer new
customers to your store. Free products, big discounts and cash rewards are some of the
incentives you can use. This is a promotional strategy that leverages your customer base as a
sales force.

Causes and Charity:

Promoting your products while supporting a cause can be an effective promotional strategy.
Giving customers a sense of being a part of something larger simply by using products they
might use anyway creates a win/win situation. You get the customers and the socially conscious
image; customers get a product they can use and the sense of helping a cause. One way to do
this is to give a percentage of product profit to the cause your company has committed to
helping.

Branded Promotional Gifts:

Giving away functional branded gifts can be a more effective promotional move than handing
out simple business cards. Put your business card on a magnet, ink pen or key chain. These are
gifts you can give your customers that they may use, which keeps your business in plain sight
rather than in the trash or in a drawer with other business cards the customer may not look at.

Customer Appreciation Events:

An in-store customer appreciation event with free refreshments and door prizes will draw
customers into the store. Emphasis on the appreciation part of the event, with no purchase of
anything necessary, is an effective way to draw not only current customers but also potential
customers through the door. Pizza, hot dogs and soda are inexpensive food items that can be
used to make the event more attractive. Setting up convenient product displays before the
launch of the event will ensure the products you want to promote are highly visible when the
customers arrive.

3.2 PROMOTION

METRO cash and carry promotes its product not intensive marketing campaign because their
customers are just retailers and professionals so they just opt that media sources which directly
hit target market.

33
They are promoting by the following ways:

Billboards: METRO place billboards at the outside of the store.

Newspaper: METRO advertised in newspaper such as Jang and The Nation to create
awareness.

Catalogues: METRO provides products and new offers catalogue not only at the stores but
also mail it to the customers and members.

Personal selling: METRO has staffs who visit restaurants and professionals to convince them
and create interest to purchase products for the use of their business.

Social Networking

Much has been made of the emergence of social networking as a modern phenomenon
especially amongst the young. However, it is increasingly the case that modern legislation is
preventing suppliers from communicating with potential customers unless the customer has
already agreed (Telephone Preference Service, Corporate Telephone Preference Service, Mail
Preference Service, Data Protection Act etc). This clear Catch-22 is forcing suppliers down
two, increasingly expensive and unproductive routes.

Media advertising

Social Networking (Facebook, Twitter, LinkedIn, Myspace etc) offers a new route to potential
customers that is currently still open to businesses. Although these routes are not free, they are
still novel enough to attract attention and be considered as a user friendly/personal route to
market.

However, these routes are not without challenges of their own. The time and human resource
required creating and, even more importantly, maintaining these pages on a daily or hourly
basis is a considerable investment in its own right.

Ex.: A Facebook page is free. Facebook adverts operate on a pay per click basis (similar to
Google). Although these adverts can be targeted to specific job titles the actual number of
people who will be targeted is still small as many Facebook users do not include their job title
in their profile. . A combined approach of Twitter and Facebook seems to work well and have
little external cost. IE Twitter an update (Windows 7 etc) and link it to Facebook. This gives
two opportunities to get your name out to interested parties without massive expense.

34
3.3 SALES PROMOTIONAL TOOLS USED BY METRO CASH AND
CARRY

 Advertisements
 Loyalty Programs
 In store promotions
 Events
 Magazines and Newsletters
 Discounts and offers

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 two loyalty programs are listed below:

 Gold Loyalty Program @ 2%

 Silver Loyalty Program

GOLD LOYALTY PROGRAM:

Benefits and Privileges offered under this loyalty program:

 Up to 2% Bandhan Bonus on your monthly purchases

 Exclusive Bandhan Desk

 Bandhan Team to Serve you in the store

 Faster Check out - Exclusive Bandhan Cash Tills

 Customer Care Number

 Privileges Outside Metro world

35
  Exciting gifts & surprises

SILVER LOYALTY PROGRAM:

This loyalty does not provide any direct monetary benefits it only offers

 Exciting Gifts & Pleasant Surprises

 Assured Rewards

INSTORE PROMOTIONS:

 Hoardings
 Drop down banners
 Short drop-down banners
 Pallet wraps

36
  Bay talkers
 End cap

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.

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.

Sales promotion:

Sales promotion consists of a diverse collection of incentive tools, mostly short term,
designed to stimulate quicker or greater purchase of particular products or services by
consumers or the trade. Sales promotion is a key ingredient in marketing campaigns.

Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.
Sales promotion includes tools for consumer promotion- samples, coupons, cash refund offers,
price offs, premiums, prices, point - of- purchase displays and demonstration; Trade promotion
– prices off, advertising and display allowances, and free goods; and business and sales for
promotion – trade shows and conventions, contests for sales reps and specialty advertising.

37
Factors that contribute to the rapid growth of sales promotion:

Internal Factors:

Promotion is now more accepted by top management as an effective sales tool; more
product managers are under great pressure to increase current sales.

External Factors:

The number of brands as increased; competitors use promotions frequently, many brands
are seen as similar: consumers are more price-oriented; the trade has demanded more deals
from manufactures; and advertising efficiency has declined because of raising costs, media
clutter and legal restraints.

1) Communication: They gain attention and usually provide information that may lead the
consumer to the product.

2) Incentive: They incorporate some concession, inducement or contribution that gives value
to the consumer. Incentive-type promotions are given to attract new tiers, to reward loyal
customers and to increase the repurchase rates of occasional users.

3) Invitation: They include a distinct invitation to engage in the transaction now. Companies
use sales promotion tools to draw a stronger and quicker buyer response. Sales promotion can
be used for short- run effects such as to dramatize product offers and boost sagging sales.

Major decisions in sales promotion:

In using sales promotion, the following decisions are to be taken:

 Establish objectives
 Select the sales promotion tools
 Develop the program
 Pre-test the program
 Implement and control the program
 Evaluate the results

38
3.4 IMPACT OF BRAND ENDORSEMENT ON PROMOTION

Research on image built through endorsement of celebrities show that there are three aspects
that influence a consumer’s attitude of a brand.

These are:

 Attractiveness
 Trustworthiness
 Expertise

Examples of how some celebrities in India have been use in advertising in India have been used
in advertising to enhance brand image are listed below.

A film actress like Madurai Dixit is a credible source of information for soap. Khaitan, the
owner of the brand himself assures 100% reliability of the brand in the advertisement thus
making the information dependable. The Uprightness of Season makes him credible when he
recommends a frozen vegetable brand claiming that if you are a vegetarian, you need not be
“soft.” Nanina Bolsover, well-known beautician can credibly advertise for sun silk and
Tendulkar for Rocker

39
Aspects of a Image Celebrity Product

Brand

Attractiveness Elegant Renuka Sahni Whisper

Beautiful Madurai Dixit Lux

Classy Pataudi “Asian

Paints”

Royale

Trustworthiness Dependable Khaitan Khaitan Fan

Honey Seshan T.N Frozen Vegetable

Reliable Kapil Dev Boost

Expertise Knowledge Sachin Rockers Shoes

Qualified Tendulkar Shampoo

Skilled Naina Balsavar Bazooka

Amjad Ali Khan

40
“What is Neff to one person can be cult to someone else. The key is making sure an advert
or endorsement hits the right note with the people you are looking to retain or convert into
consumers.”

 Celebrity endorsements help garner saliency, connectivity, brand differentiation and

brand values. For Nerolac one of the biggest takeaways from the advert with Amitabh
Bachchan was saliency. He cut across all class, caste barriers because of his cult status
and his attention getting value.
 Celebrities can increase consumer’s awareness of the advertisement, capture their
attention and make adverts more memorable
 Heroes, authors, entertainers, and athletes; almost everybody seems to have been a part
of this tradition. In more ways than one, a celebrity is the product of information age.
Celebrities may be manufactured, but they do meet a psychological need.
 Using a celebrity in advertising is therefore likely to positively affect consumers’ brand
attitudes and purchase intentions.
 They help in raising awareness of not only you’re your ad campaign but also help in
profiling your organization to larger audiences and get media coverage.
 Not only that, but they help in repositioning the organization in the public perception
and bolster a long running campaign.
 Celebrities are known to be fine spokespersons and great tools for marketing because
they provide a “set of characteristics”
That supports consumers in evaluating the presented brand. In contrast to anonymous
endorsers, celebrities add value to the image transfer process by offering meanings of extra
depth and power.

41
Chapter 4

DATA ANALYSIS AND

INTERPRETATION

42
 Data Analysis and Interpretation

1: Ownership of Business on the basis of age factor.

TABLE 1

AGE NO. OF PERCENTAGE (%)

RESPONDENTS
18-25 79 76%

26-40 20 19.2%

41- Above 5 4.8%

TOTAL 104 100

GRAPH 1

Inference:
From the study it can be inferred that 76% respondents are between 18-25 years, and 19.2%
respondents are between 26-40 years and remaining 4.8% are above 41+ years old.

43
2: Nature of occupation that respondent own.

TABLE 2

OCCUPATION OF NO. OF PERCENTAGE (%)

RESPONDENT RESPONDENT
Student 65 63.7%

Employee 23 22.5%

Other 14 13.7%

Total 102 99.9

GRAPH 2

Inference:
From the study it can be inferred that 63.7% of respondents are students, and 22.5% of
respondents are employees. And remaining 13.7% respondents are belonging to other
occupation.

44
3: Respondent monthly income.

TABLE 3

INCOME OF NO. OF PERCENTAGE (%)

RESPONDENT RESPONDENT
Below 5000 19 19.6%

5000-20,000 23 23.7%

20,000 – above 12 12.4%

NILL 43 44.3%

Total 97 100

GRAPH 3

Inference:
From the study it can be inferred that 19.6% of respondent’s monthly income is below 5000,
23.7% of respondent’s monthly income is around 5000 - 20,000 and 12.4% of respondent’s
monthly income is from 20,000 – above and 44.3% of respondent’s monthly income is NILL.

45
4: Nature of business that respondent own.

TABLE 4
TYPE OF BUSINESS NO. OF PERCENTAGE (%)
RESPONDENT
Service 34 35.4%

Manufacturing 12 12.5%

Other 50 52.1%

Total 96 100

GRAPH 4

Inference:
In the above data it shows, that what type business respondent do. From the study it can be
inferred that 35.4% of respondents are belongs to service sector, 12.5% of respondents are from
manufacturing department. And 52.1% of respondents are from other sectors.

46
5: Awareness of metro Cash and carry.
TABLE 5
TYPE OF MEDIA NO. OF PERCENTAGE (%)
RESPONDENT
Personal 14 14.1%

Print media 12 12.1%

Friends/relatives 54 54.4%

Online portals 19 19.2%

Total 99 99.8

GRAPH 5

Inference:
From the study it can be inferred that the awareness of metro Cash and carry from the
respondents, where as 14.1% of respondents are aware of metro cash and carry by personally,
12.1% of respondents are aware of metro by print media (such as pamphlets, newspaper,
magazines etc,.) 54.5% of respondents are aware of metro by friends and relatives. And 19.2%
of respondents are aware metro by online portals.

47
6: how long respondent have been customer at metro cash and carry.

TABLE 6

BEEN CUSTOMER NO. OF RESPONDENT PERCENTAGE (%)

FROM
Less then, 6 months 50 50%

1 year 27 27%
3 years 10 10%
More then, 3 years 13 13%
Total 100 100

GRAPH 6

Inference:
In the above data it shows that the how long respondent have been customer at metro cash and
carry, 50% of respondents are been customers for less then 6 months, 27% of respondents are
customers from 1 year, 10% of respondents are been customer from 3 years. And 13% of
respondents are been customers from more than 3 years.

48
7: Frequency of respondent visiting to Metro Cash and Carry.

TABLE 7

NO. OF PERCENTAGE (%)

PERIOD OF TIME
RESPONDENT
Daily 15 15%

Weekly 15 15%

Monthly 41 41%

Yearly 29 29%

Total 100 100

GRAPH 7

Inference:
From the study it can be inferred that the 15% of respondents are visiting daily to metro, 15%
of respondents are visiting weekly to metro, and 41% of respondents are visiting to metro
monthly. And 29% of respondents are visiting yearly.

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8: Kind of transaction preferred.
TABLE 8

Type of transaction NO. OF PERCENTAGE (%)

RESPONDENT
Debit/credit 50 49.5%

cash 51 50.5%

Total 101 100

GRAPH 8

Inference:
From the study it can be inferred that the 49.5% of respondents are willing to pay by debit/credit
cards and 50.5% of respondents are willing to pay by hand cash only.

50
9: Respondent rating of “Metro Cash and Cary” services.

TABLE 9

RATING NO. OF PERCENTAGE (%)

RESPONDENT
Excellent 30 29.7%

Good 49 48.5%

Satisfied 18 17.8%

Poor 4 4%

Total 101 100

GRAPH 9

Inference:

In the above data it is shown that the respondents rating of metro cash and carry service,
From the study it can be inferred that the 29.7% of respondents are given excellent for the
services in metro, 48.5% of respondents are given good for the services in metro. And 17.8%
of respondents are satisfied by the metro service. And 4% of respondents are given poor for the
metro services.

51
10: Option towards recently launched offer pay less get more (PLGM)

TABLE 10

RATING NO. OF RESPONDENT PERCENTAGE (%)

Excellent 23 23.2%

Good 48 48.5%

Satisfied 25 25.3%

Poor 3 3%

Total 99 100

GRAPH 10

Inference:

From the study it can be inferred that 23.2% of respondents are given excellent for the option
towards recently launched offer pay less get more PLGM. 48.5% of respondents are given good
ang 25.3% of respondents are satisfied, and 3% of respondents are given poor.

52
CHAPTER – 5

FINDINGS,
SUGGESTIONS
AND
CONCLUSION

53
5.1 FINDINGS

 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.

 Only half of the customers are aware of the promotional offers and other schemes.

 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.

 Another aspect was that those customers who were aware of the promotional schemes were
not exactly satisfied with them

 Most of the consumers of Metro prefer direct purchasing by visiting stores than via making
order through calls or online.

 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.

54
5.2 SUGGESTIONS

 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.

55
5.3 CONCLUSION AND RECOMMENDATION

 Most of the respondents are satisfied with the products and services provided by the
Metro cash and carry.

 Most of the Customers are visiting Metro cash and carry Market since many years.

 Metro cash and carry created very effectiveness and good brand image in minds of
customers.

 The promotional activities provided by Metro cash and carry are very relevant to the
originality.

56
BIBLIOGRAPHY

57
Sources

1) D.D. Sharma, MARKETING RESEARCH

2) Philip Kotler, MARKETING MANAGEMENT, 10th Edition

Websites
https:/www.metro.co.in
www.metrocashandcarry.com
www.metroindia.com

58
ANNEXURE

59
Questionnaire:
Questionnaire for consumer’s behaviour and promotion of metro cash and carry.

1. Do you own a Business? [ ]

(a) Yes (b) No

2. Which type of Business do you do? [ ]

(a) service (b) manufacturing

(e) Any other (specify) __________________________

3. Your monthly income? [ ]

(a) Below 5000 (b) 5000- 10,000

(c) 10,001-15,000 (d) Above 15000

4. How you came to know about Metro Cash and carry? [ ]

(a) Personals (b) print media

(c) Friends /relatives (d) online portals

5. How long have you been customer to Metro cash and carry? [ ]

(a) Less than 6 months (b) 1 Year

(c) 3 Year (d) More than 3 year

6. How frequently did you visit Metro cash and carry? [ ]

(a) Daily (b) Weekly
(c) Monthly (d) Yearly

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7. Which kind of transaction do you prefer? [ ]
(a) Debit/Credit (b) Cash

8. Which rating would you like to give to Metro service? [ ]

(a) Excellent (b) Good
(c) Satisfactory (d) poor

9. Opinion towards recently launched offer pay less get more (PLGM)? [ ]
(a) Excellent (b) good
(c) Satisfactory (d) Poor

10. Are you facing inconvenience with Metro cash and carry? [ ]
(a) Yes (b) No

61