A Report on Aniversary Branding

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A Report on Promotion Understanding & Role of Private Labels in Organized Retail

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A Report on Promotion Understanding & Role of Private Labels in Organized Retail OF

Submitted to:

METRO Cash & Carry India®

Vaibhav Verma

Brand Manager

Submitted by:

Mr. Aditya.N.Dave

Management Trainee

Indo German Training Centre




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DECLARATION

I hereby declare that the report titled METRO Anniversary Branding is abonafide record of the study done by me at Metro Cash and Carry India Pvt Ltd,

Bangalore as a part of my PGPBA programme at Indo German Training Centre

This study has been undertaken in fulfilling the requirement for the Award of Post

Graduate Programme in Business Management (PGPBM) by Indo German Training

Centre.

Date: 6-7-2010 Signature:

Place: Bengaluru Name: Aditya Dave






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EXECUTIVE SUMMARY

Metro Cash and Carry India Pvt Ltd is a B2B firm which is into organized format of wholesale.

The Main Business of Metro comes from Hotels, Restaurants, Caterers, Kiranas, Traders,

retailers and small to medium business enterprises.

Due to certain government restrictions Metro Cash & Carry cannot advertise in the market so

as to improve the brand name and sales of Metro cash & carry in India Metro Celebrates an

Anniversary celebration programme in the month of July & during the Anniversary celebration

all the major suppliers (HUL, P&G, Reckitt benckiser etc) provide Promotional offers on their

product in accordance with metro. This creates a win-win situation as Metro gets more clients

and the supplier gets more sales.

The basic task as a trainee in metro was not only controlling the branding of Metro Anniversary

under Mr. Vaibhav Verma but also takes care of other activities related to branding, Non-Branding & research activities.

Anniversary related tasks performed are mentioned below

y E-mail Id correction for sending Anniversary mails

y Update and cross checking of MM 1014 and 1015 ( Anniversary metro mail)

y T-shirt Distribution of Anniversary

y Managing the Sugar Promotion and survey on commodity purchase.

y In store branding for Anniversary.

y out store branding for anniversary

y Data Updation for anniversary

Apart from tracking the anniversary there were other small & routine projects were undertaken

by us whose detail is mentioned below.

y Telephonic survey on Credit card acceptability in Metro

y Home brand Research. (Fine Food & Aro)

y Metro Sales Vs Market sales for DC 60. (Ac Nielsen Report)

y Coding for Budget.(Advertisement Budget)

y Cross checking of Bandhan Customer. (Reward amount conflicts)

y Work orders.




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Contents Page

Section Page Number

Introduction of METRO and cash and carry concept 6

a. Brief to Metro Anniversary activities 8

b. Brief to Other related work 11

Objective of the Anniversary & other Report 15

Scope of the Anniversary & other Report 18

Issues & Recommendations or Suggestion if any 19

Findings If any (Findings other then Anniversary work) 20

Conclusion 21




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Introduction of METRO and cash and carry concept

Introduction to METRO

METRO Cash & Carry is an international self-service wholesale retailer. It operates acrossEurope and in some countries of Asia and Northern Africa. It is the largest sales division of the

German trade and retail giant METRO AG.

METRO Cash & Carry is different from B2C retail chains (such as Wal-Mart, Carrefour or Tesco)

in that its business concept is targeted towards professional customers rather than end

Consumers. The cash-and-carry concept is based around self-service and bulk buying. METRO

Cash & Carry serves to registered customers only. Core customer groups are hotels,

restaurants, caterers, traders and other business professionals. With 655 stores in 29 countries,

METRO Cash & Carry is an international leading player in self-service wholesale. The product

range and services are tailored exactly to the needs of the professional customers. Hoteliers,

restaurateurs, caterers and small-scale food retailers find everything they need to guarantee

their business success. Their trademarks include top quality, huge choice and excellent value for

money. METRO Cash & Carry has an international identity and a true international corporate

culture to support it. This has helped them greatly in their efforts for expansion in the

international market. They are the major growth drivers of the METRO Group, one of the

worlds leading retailing companies.

The Cash and Carry concept

METRO's Cash & Carry business model is based on a Business to Business (B2B) concept and

focuses on meeting all the needs and requirements of business customers. It is a modern

format of wholesale trading, catering only to business customers.

The cash and carry business model brings together small, medium and large-sized producers,

farmers, agricultural cooperatives and manufacturers, with the dispersed community of hotels,

restaurants, caterers, traders, retailers and small to medium business enterprises, under one

roof.

A cash and carry retailer buys directly from producers and manufacturers and sells to business

customers from its no-frill approach wholesale centers.

In this way, cash and carry operators shorten the supply chain and eliminate the high costs

associated with a fragmented supply chain (estimated as high as 25 per cent in India). It also

cuts costs and wastages by building modern trade infrastructure and implementing modern IT

based systems, which improve efficiency.

By aggregating the demand of small and medium businesses, cash and carry formats are able to

buy in bulk quantities for the advantage of its customers. Some of the savings made are passed




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on to the suppliers, some to the customers, while cash and carry retailers benefit from the

supply chain efficiency that they are able to create.




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Introduction toMETRO Anniversary work.

Metro Anniversary is a way to celebrate the annual month for which metro invited its customer to visit the

store by offering them various offers, promotions and discounts on many products to make the anniversary a

successful event. Being a trainee we were supposed to integrate small and important activities and align themto make the anniversary a success.

Below is the list of work which was related to metro anniversary and helped Metro in many ways.


Sugar promotion was one of the most important promotion since it was the first ever

commodity based promotion and we looked after Promoters of sugar for entire month. Also

supported promoters with queries of customers and tracked sugar sale initially to check the

impact of advertising done by us.

A telephonic survey was conducted to know the commodity purchase behavior of customers in

Bangalore and Hyderabad DC. The format for the same is mentioned below


Anniversary tracking was a prime work allocated to us which included small tasks such as co-

ordinate with buyers for offers available from suppliers.

Segregate various offers based on company and based on nature of offers.

Advertising and Buying department integration was done by crosschecking MM1014 and 1015

with the buyers confirmation.


E-Mail Id Correction was done for all the DCs and around 11,000 Email Ids were crosschecked and

Around 800 Ids were corrected from the List of 11,000 Email Ids. The basic concept behind this work

was to get more customers and footfalls to visit METRO for anniversary and increase the Business.

All Dc wise break up of Correction Is mentioned below.

Dc Total Email Id Corrected Email ID % corrected




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The Above mentioned Break up shows that total work done and break up of all the work as per DC.

y

T-shirt Distribution of Anniversary

T shirt Distribution was Done as a part of anniversary in Head Office and T-shirt count for Key account

managers and customer Consultants were done to make sure that the distribution of T shirt is done

to the right Person, in time and at right place.

Head Office Distribution was done on one on one basis with confirmation of the respective person or

Responsible person was taken on paper to avoid any miscommunication.

KAM and CCs Count were done for all the DCs which helped to get the delivery of T shirts on time.

Below is the Total Count of KAM and CCs

* DC 20 was not done by us

T-Shirt Count For CC/ KAM

S M L XL XXL Total

DC-10 1 6 5 6 1 9

DC-11 1 3 10 4 3 21

DC-12 4 10 1 15

DC-60 4 18 2 1 1 26

Total 6 27 21 21 6 81

10 732 172 23.49726776

11 612 125 20.4248366

12 9394 242 2.576112412

20 222 89 41.29213483

60 356 147 41.29213483




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T-shirt distribution done in HO

T-Shirt Count For HO

Size S M L XL XXL XXXL

Count 1 4 17 21 3 1

Total 48

y In Store and Out store Branding

The in store and out store Branding were look after with the help of Mr. Naveen in DC 10 and DC 11.

The Various activities of the in store and out store branding included Checking All the branding

articles, counting the correct Numbers of articles, placing the various Branding articles at the right

place and look after the Banner of anniversary.

Below is the list of articles which were looked after for the anniversary in DC 10 & DC 11.

Description Qty Dc Qty Dc 1 Content For BRANDING

Shelf cards 300 300 Anniversary logo + Tagline

Dangler square 450 450 Gio + 1 Lakh Offer

Drop Down 12 12 With Bandhan

Standee Roll up 3 3 Gio+Gold offer+Sugar+3000 Offer with Bandhan

Lucky dip BOX 1 1 -

Driveway flags 7 - Various offers

End Caps Food 31 36 Anniversary LOGO (Behind Bandhan)

End Caps Non- Food 16 16 Anniversary LOGO (Behind Bandhan)

Entrance Main gate 1 - Anniversary logo + Tagline

Entrance Panel Below METRO 1 1 Anniversary logo + Tagline

Parking Banner-Vertical 40 40 Various offers

Parking Banner-Horizontal 5 5 Various offers

Anniversary counter in store 1 1 1-Enterance,1-Parking

Mega Prize display centre 1 1 GIO offer + Rs 3000 Offer + Buying Req.

Floor branding 3 2 Enterance-1 & Exit 1

Checkout glass panel 2 2 Various offers

Roof top branding 2 2 Anniversary logo

T&C Board at entrance 1 1 T&C

Free Gift counter 1 1

Sugar promotion branding 1 1 Sugar branding




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Trolley Branding 25 25 Various offers

All the above articles were looked after to make sure that everything is arranged before the

beginning of the anniversary and hence helped and created awareness amongst the customer for

offers and schemes in the DCs for various brands and applicability so as to qualify for the same.


Data Updation was one of the most important and critical task done by us during this

anniversary whose purpose was updating the client information and contact details so as to

reach the right client in future. Around 2000 customers data was uploaded in the system and

more were Upgraded with edition of the old one which will help us to generate more business

since we will be able to contact the customer on given correct DATA in future and will increase

the accuracy of customer reach.

Introduction to Other related work

Apart from doing the anniversary tracking there were other major tasks where we were involved. All

these tasks were not related to the anniversary yet the analyses and the report generated from this

activity were useful for various departments.

y Telephonic survey on Credit card acceptability in Metro.

A telephonic survey was done on credit card acceptability at METRO. The main purpose of doing

credit card survey was to know the buying behavior of customer with credit card and customers

reaction if we accept different bank credit cards at METRO. Different questions were asked related to

their Buying behavior with credit card and Usage of credit card at various places with amount of

money used on average basis and on what articles the money was spent. Also customers were asked

about the credit card acceptability in METRO with their usages of card in METRO.

Below was the format of Credit card Questionnaire asked to customer.

No Question

1 Do you Own A Credit Card

2 If Yes which bank issued the card & is it a Visa , Master , Amex Etc

3 Do you make purchases on your Credit Card




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The

Outcome of the survey was that 90% of the people are having credit cards which they use regularly

for their normal purchases and many of them feel safe to carry credit card rather then carrying Hughcash along with enjoying good credit period. Hence the learning for us with this survey was that if we

accept other credit cards then we can get more customers and more purchases per customer since

the customer can purchase more on credit and hence we can give a tough completion to other

wholesalers in the market who provides goods on credit.


1. Research on Fine Food Articles

Research was conducted on more then 50 Fine Food articles in different areas like PICKLES, NIBBLES

(savories), Dry Pulses, Dry Fruits, NUTS (DFN), SEASONINGS (Spice) & Ghee.

The major reason for doing Fine food research was to know the finding the competitive advantage

with other articles available in the market to increase the sales base on the competitive advantage

along with finding the loop holes in the Home brand articles so that some steps can be taken towards

the improvement of Fine Food products.

The Benchmark articles were selected which were the market leaders in its segment and two major

competitive advantages were found out with the Fine Food in terms of Price competitiveness and

Life span between fine food and market leader. By doing the study we found that more than 80% of

the articles were priced 5 to10% less then market leaders with having almost equal or more of shelf

life than its competitors.

To know further we studied the international quality standards requirement or international

standards fulfillment of Fine Food as compare to competitors and we found out that we meet

4 For what type of purchase do you use your credit card

5 For what reason do you make a purchase on your credit card.

6 What is the minimum & Maximum expenditure you make on your credit card

7 What percentage of your current monthly shopping is made on your credit card

8 You Must be aware that Metro does not accept credit cards hence has thatmade you not purchase or purchase less at Metro?

9 Would you prefer to buy more products from Metro if we accepted credit cards?

10 Do you use the ATM machine at Metro to withdraw money

11 Would you prefer Metro to accept debit cards also?

12 Would it be OK if Metro accepted your credit or debit card but only

for purchases made above Rs 3000

13 In the event that credit cards are allowed - How would you like the experience to be




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international quality standards on all products that we make and hence further strengths and

weaknesses were found out of Fine food to improve on Weaknesses and maintain the strengths.

The outcome of finding strengths and weaknesses were that we have strengths in terms of pricing

and shelf life where as we are lagging behind from competitors on the basis of branding issue whichcreated lack of awareness amongst consumer for Fine Food articles

2. Research on Aro Articles.

Around 250 articles were taken for the research and same research methods were used for Aro

articles but it was only half done during our tenure and hence more information can not be provided


A quarterly sale from Jan 2010 to March 2010 was compared with the sale of entire Market forDc 60 (Kolkata) provided by AC Nielsen. A major driving factor for doing a research was to know

the products market demand and METRO share of demand in the market.

A report was provided by AC Nielsen which was compared with the sale data available in metro

and certain products were found to have a good growth and increasing market share where as

certain products were losing the grip from the market and those were the products we had to

work on to stable the decline growth and then regain the growth.


The task involved in coding for the budget was to give the codes for various Expenses occurred

on advertising. This helped us (Metro) in reduction of time for finding the particular kind of

expenses occurred and increased the efficiency and accuracy for coding and raising the Work

orders correctly


This was a manual task of cross checking the printed Bandhan Bonus issue letters and receiver

of the same mentioned in the system where correct amount should be delivered to correct card

holder in correct Dc

y Work orders.

Work order task was a major task since there was an up gradation of metro way took place and

the new metro way had issues due to which there was loss of coordination between accounts

department and vendor management department.




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The issue was major issues since the Vendors were suppose to receive the money for rendering

service and this has been delayed due to Issues in Metro way.

Our major tasks were raising a Work order in the system, Upload the same in system and store

it in the system for future reference.




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Objective of the Anniversary and otherWork

The prime Objective for the anniversary is to increase the brand image of Metro by providing manyoffers, Discounts, promotions Etc to its Clients and attract them to visit the store. Since Metro is

basically in to B2B activity all the products in metro are catered to SMEs and Hospitality Industries

and small and scattered individual buyers.

Being a trainee my objective was to co-ordinate and conveys the correct information to Advertising

department with ZERO Mistakes.

The anniversary were and others works were divided in to several tasks and hence each task had its

each objective which is described below


The prime activity of our internship with metro was to co-ordinate with all the department of

Buying so as to avoid any miss communication between Branding and buying department. Also

we kept a track of all the offers for different Distribution centers with different promotional

activities.

The crosschecking for Metro mail was essential because what was planned and what should

have been delivered had to be in line and hence we crosschecked all the offers in PDF for Metro

mail 1015 & 1016 with all the off we got from Buyers and communicated all the correct

information to customers for both the metro mail 1014 & 1015.

y In store branding for Anniversary.

y out store branding for anniversary

Both in store and out store branding were very important since the message should have been

conveyed to the customers accurately with right advertisement at right place to get the

maximum impact of our Branding.

W

e assisted Metro for both in store and out store branding in Kanakpura and yashwantpura DCand the deadline of finishing the task was 30th

of June which was accomplished by us.


The sugar promotion was unique and most attractive promotional offer Metro had for the

anniversary 2010. Unique because this was the first commodity based promotion and attractive




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because this promotion was targeted to attract prime customers to buy commodity & increased

the commodity based buyers in Metro.

A telephonic survey was conducted for the purpose of buying behavior of a commodity based

customer. The purpose was to know how customers purchase commodity, what are thepreferences while buying commodity and from where they purchase commodity so as we can

work on the same and come out with some solution to improve the Metro sale.

y T-shirt Distribution of Anniversary

All the T-shirts according to the Size of all the employee in Head office and DCs were sorted

and distributed as per the size on the time. The prime objective of this task was to distribute T-

Shirts to all the staff members in various cities for the branding purpose so that on the day one

of the anniversary all the staff can wear the same and promote Anniversary inside the Metro.


E-mail id correction was done to increase the reach of customers & increase footfall in Metro.

The basic purpose was to increase the accuracy of E-mail delivery to the customer and increase

the awareness of anniversary and offers to the customer.


Data Updation was done to get the maximum information of customers who are visiting the

store and also to increase the future reach by getting correct detail of customers. It was acrucial activity and we not only hired Promoters but also kept a prize of Gold coins so as to

attract the customer to fill the data. It was aimed to increase the customer data base in the

system of Metro.

y Telephonic survey on Credit card acceptability in Metro

The main objective of the telephonic survey was to know if a customer wants various credit

cards to be accepted in metro and what are the terms and conditions they are willing to accept

while using the credit cards.


Brands such as ARO and Fine foods are owned by Metro and the research was done for the

purpose of finding different ways to improve the sales of this brands.




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Also various other objectives were worked up on such as Comparison with market leading

brands it the same segment, Price segmentation and Quality segmentation to differentiate the

competitive advantage.


The report was generated by AC Nielsen for Kolkata Dc and comparison was done with metro sale for

the same Dc.

The objective for doing the same was to know the articles which are having good market share and

problem articles which are not doing well in the market so we can work up on them.


Objective of the Coding work was to segregate various expenses to put under different heads

so in future all the expenses can be tracked as per the nature of expense and it can help in work

order by raising a right work order for right expense.


This work was done to avoid the conflict of wrong bonus amount or wrong address delivery for

bonus customers and increase the accuracy of delivery.

y Work orders.

Work orders issues was a major activity and objective of the same was to raise and issues

correct work order and deliver the payment to the vendors on time along with keeping a soft

and hard copy for the record purpose.




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Scope of the anniversary.

The scope for the Metro anniversary was wide in terms of Sales, Footfall and Brand image. All the

offers were given for the customers to visit the stores since Metro in to B2B business and footfalls

and promotional offers are most important way to increase sales. Various offers were provides in

various sections and on various articles

The anniversary was concentrated on all the sections of Metro to make the anniversary a Generaland target all the segments of buyers. Offers such as electronically appliances, FMCG goods,

Groceries Etc we kept to make it more general.

Anniversary of 2009 was a success on YOY basis with a good increase of sales and revenue and a

similar trend is expected this year too. Also the 2010 Anniversary has a scope in terms of commodity

sales as sugar promotion was included in the anniversary for the first time and a special sugar

promotion counter with promoters were allocated in stores to promote the same

Scope of anniversary could have increased by keeping anniversary from 28th

of June to 3rd

of august.

The basic reason behind this is the salary slab of most people comes around month end and hencespending is generally high during the beginning of the month and so the sales of our customer

increase in the beginning of the month and by keeping it on the mentioned dates above our client

can keep two months stock and increase the benefits from the anniversary where as we get a better

sale.

Also we could have done indirect Advertising by tying up with suppliers like P&G, HUL, Reckit Etc in

many Newspapers about Anniversary such as Buy HUL products and get Gio Free In Metro so as to

reach more people or customer by advertising through supplier and not through us.




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Issues & Suggestions in Branding.

Issues in branding.

1. Promoters were not trained adequate to handle sugar and data collection

2. Floor branding was not used much.

3. Video branding was not used inside the store

4. Audio branding was confusion

5. Free gifts were not attractive

6. No home brand branding was done inside DC

7. A promotion on Home brand was missing.

Suggestions

1. Proper training should have been provided and a 1 day mock should have been done to know

about the skill level of promoters and training should have been provided according to their

skill level.

2. Data Updation should have been automated so as to avoid the manual process of data

gathering and putting in system.( Two Promoters with two computers should have been used

at the entrance and data Updation should have made mandatory after which the trolley forthe shopping should have provided so at to get the maximum data and remove the

complexity of the process)

3. Floor branding should have used to create all offers and their ways on the floor so as to ease

the communication OR a route map of all the offers on the floor should have done in such a

way that customer attain maximum articles in the floor.




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4. An audio & video branding could have been done by using the TV sets in Media section.

5. Home brand articles should have distributed as a gift on 3000, 6000 & 9000 purchases and

should have kept a banner of all home brand articles in Dcs to increase the awareness and

sale, also free samples or demo should have provided to increase the sale.

6. Tie up with retail stores for keeping home brand articles such as Neelgiris, Namdharis Etc or

major retail houses to keep home brand so as to increase the sale of home brand and also

keep a high margin to retailer so even he/she will be willing to sell our product.

Findings

The major findings were that commodity promotion was a success and anniversary not only had a

major impact on the foot falls and commodity buying but also other customers and it will help in

future and inspire us to have more Commodity based Promotions so as to capture various segments

and customer base.

Many promotions did well where as many didnt work out as planned.

Promotion such as Axe was a big failure as purchase amount to qualify was too high and hardly any

customer found this interesting so we should learn from this and keep the purchase amount less to

make it successful. Also we can do a market research, understand the mind of customer and then

place the Offers and Promotions which will help us to increase the efficiency and reduce the failure

of promotion.

Articles involved in promotions were very less and more articles should have been involved and

more company participation should have taken place to make it a real BIG event by taking all major

FMCG companies in the celebration. A lot more could have done if participation companies should

have increased and in future we can work on it to make the Anniversary not only of Metros but a

celebration of supplier (company such as P&G, HUL, Parle, Britannia, Nestle Etc) so as to involve

them in anniversary.




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CONCLUSIONS

The major conclusions from the study are

Anniversary was a Hugh success and the offers such as SUGAR along with other FMCG products wereplaced rightly in the mind of customer.

Prize slab was placed accurately but we could have taken the advantage of promoting home brand

articles by keeping home brand article as a free gift rather than outside product.

Also few things that we can work up on are.

Data Updation on the counter which could have done accurately by removing the manual process

and training should have provided to sugar promotion guys.

Branding could have been improved inside the store by using the Media section as a tool of in store

advertising to promote offers and location of offers.

Sugar promotion could have done better by keeping it at the entrance to attract the customers and

Credit card survey indicated that customers want metro to accept all credit cards and not only Citi

bank so we have to accept all credit cards or if not all major of the credit cards we can accept

So I would like to conclude this report by saying that there are various alternatives and other ways

available for us to do Branding and Advertising which we can look up on in future for not only

Anniversary but other event.




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Documents

A Report on Aniversary Branding