Business Decision Modeling

METRO CASH & CARRYS ELEMENTS OF

DIFFERENTIATION

Submitted by:
Nazish Hussain 01-121171-019
Zainab Khanum 01-2211711-028
Asad Aziz 01-2211711-008
Nida chohan

Submitted to: Mr. Firdous Ahmed Sheri

10-0ct-2017
MBA 1.5 (E)
 METRO CASH N CARRY
METRO is one of the leading international companies in the wholesale and food service
sector. As a partner, investor and impetus to its customers, METRO's business is
headquartered in Germany. MCC is the largest sales division of $67.3 Billion. 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.

In this report, we have discussed MCCs differentiation techniques. Below is the brief
description of its differentiating factors.

Product Features

A firm can make its products more valuable than competitors by offering features that the
competitors products do not possess, MCC has differentiated itself on the basis of many
factors. MCC has the basic strength of low prices with high quality and serving the
customers with the wide variety of products. Moreover, it covers all business solutions
under one roof named METRO. It has a strong cash and carry business background. MCC
displays excellent layout and make an effective use of space in its stores. Another feature
that adds to the brand is sufficient parking and safety & security measures ensure by the
management. The staff over there is friendly and co-operative ensuring after sales services
by providing guidance and solving queries. In terms of technology the computerized data
base system facilitates both customer and the brand by offering simple billing systems. It
is a one stop shop which is always stocked well. MCC promises quality and convenience
for its customers by offering attractive promotional activities. MCC has always encouraged
innovation and creativity

Brand Name

Over the period of years MCC has managed to recognize itself as a first choice Cash &
Carry Wholesaler by its continuous focus on customer needs and satisfaction and
commitment to ethical and environmental values. Metro cash & carry describe themselves

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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 manifolds. Due to its unique business
model, quality and convenience MCC has been recognized as a leading brand thus
customers perceive its products to be more valuable

Network Size

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 showing a tremendous
growth every year. MCC 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 to manage a huge network size. By
generating almost 50 percent of the total sales, METRO Cash & Carry is the top-selling
sales brand of the METRO Group. On the basis of these facts, customers value its products
even more. They perceive it to be a quality brand because of huge customer base and by
exhibiting network externalities MCC has differentiated its products to a great extent.

Timings

MCC pioneered the self-service Business to Business wholesale concept. The dynamic
business model adapts seamlessly to the most demanding markets. MCC has gained a first
mover advantage in many countries and an informed adaptation of the basic Metro C& C
model to local market conditions has been its formula for success. Strong Research and
Development corporate team conducts an extensive country screenings and feasibility

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studies at both macro and micro level prior to opening in emerging markets. Quick alternate
solutions to entry barriers in new market and business development solutions like investing
logistics, improving distribution system, customizing products/packaging to cater the
special requirements of local community/customers are adapted in a timely manner. In this
way, it manages to enter new markets at the right timings thus grabbing sufficient
competitive edge. These right timings along with the right use of strategies at the right
times helps MCC to differentiate its brand as compared to competitors.

Location

Customer value physical locations over to the

other firm and Metro cash & carry gain this
competitive advantage over other grocery store
because they provide parking Deck to
eliminate the difficulties for customers. Metro
has a dedicated parking space for it customer.
A facility that can accommodate up to 100-150
cars at a time. 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 that customer usually
face in other grocery or shopping store. The
sole purpose behind this humungous parking
space is facilitating the customer and makes
the shopping easy.

Services

Offering utmost convenience to its customers has always been the pulse of Metro cash &
Carry. MCC provide Delivery service that is yet another service that sets Metro apart. To
make it more convenient for customers MCC provide delivery to its customers door step
with a minimum purchase value and save precious time to make their customer loyal.

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After sale service encourage customers to fulfill their need without any hesitation. MCC
do not just make a sale and leave it at that, were with you all the way. Our Customer
Service Team is available to you for resolving your queries, and problems, if any. They
also facilitate customers with offers promotion. In Every two weeks customers receive their
catalogue, METRO Mail, with over 300 offers for business at the best wholesale prices.
Also receive instant alerts through e-mail and SMS. Other services include Clear and easy
invoice, detailed invoice makes it easy for customers to monitor purchases. All purchase
information is available on a single invoice, enabling to manage stocks better. As well as
provide membership card.

Extended Business hours to make the customer more satisfied by serving their services
from 6 am to 10pm 7 days a week.

Product Mix

Metro Cash & Carry offers a wide range of products under one roof covering a large
spectrum of Horace needs ranging from Fresh Meat & Poultry, Fruits & Vegetables, Fresh
Fish, Dairy & Delicatessen, Deep Frozen, Vegetables, Beverages, Grocery, Coffee & Tea,
Tableware, Glassware, Kitchenware, Electronics & Appliances to cleaning solution,
crockery, clothing etc. It is the one stop station to save the customer time and make the
shopping easier.

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