Professional Documents
Culture Documents
Metro Romania How To Improve Promotion?
Metro Romania How To Improve Promotion?
ROMANIA
How to improve
Promotion?
Why METRO Group?
METRO AG 2005
Agenda
METRO AG 2005
Internationalization of Retailing
METRO AG 2005
World retail evolution
METRO AG 2005
Grocery Retail Market Sizes 2007e
Top 10 Eastern European Markets Top 10 Global Markets
METRO AG 2005
Central Europe (CE) - TOP 10 Retailers
Retail Banner Sales (EUR mn)e
0 5,000 10,000 15,000 20,000 25,000
8,243
Schwarz Group
20,780
10,147
Metro Group
17,537
7,397
Tesco
13,513
5,828
Carrefour
13,146
5,088
Rewe Group
11,817
2007 2013
2,726
Mercator
5,630
3,095
Ahold
5,582
2,459
Maxima
5,460
2,579
5,189
4,007
CBA
4,997
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METRO AG 2005
Estimated Retail Market Evolution
2007 2013
Traditional Traditional
channels Channels
72% 59%
Hypermarkets
Hyperm arkets and
and Cash & Carry Superstores
Cas h & Carry
Superstores 8.6% 21.5%
10.9%
10.3%
Supermarkets
Superm arkets Forecourt and and
Forecourt and and Discount
Convenience Neighbourhood
Convenience Discount Neighbourhoo Stores Stores Stores
Stores Stores d Stores 0.3% 4.7% 5.2%
0.5% 2.5% 3.3%
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METRO AG 2005
Top 10 Retailers 2006 in Romania
Retailer Net Net % Change Grocery Retail No. of Sales Area
Grocery Grocery Grocery Sales Market Stores (sqm)
Sales Sales 2006 v 2005 Share*(%)
2006 2005
(€m) (€m)
METRO AG 2005
METRO ROMANIA Company Overview
Background
Pioneered by Dr. Otto Beisheim, first C&C store in
Germany in 1964
The Metro C&C Model
Self-service wholesaler (C&C) — targeting small business
owners rather than individual consumers and households
Exporting the C&C Concept
Often the first foreign C&C wholesaler to enter the market
In 2005, Metro C&C - 43 new wholesale stores, a record for the
company
Metro C&C initially expanded from Germany to Austria in 1971
In Romania since 1996
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1997 - Metro took over Makro
METRO AG 2005
METRO Romania - Characteristics
METRO AG 2005
P.E.S.T Analysis
Political
challenges.
METRO AG 2005
P.E.S.T. Analysis
Economic
METRO AG 2005
P.E.S.T. Analysis
Social
Aging population
(ACNielsen data)
Technological
IT technology available
High quality/innovative equipments available
HACCP – good safety quality assurance regulation accord to EU
METRO AG 2005
S.W.O.T Analysis
Strengths - Weaknesses
Strenghts Weaknesses
Local and international good image Distribution-delay of deliveries
First entry – 10 years ago High personnel flow
Dinamic expansion Different purchasing terms
Import increase Cost increase
Productivity increase Decreased no of clients
Fidelity programms Decrease of some suppliers‘
Top quality suppliers production capacity
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METRO AG 2005
S.W.O.T Analysis
Opportunities - Threats
Threats
METRO AG 2005
Promotional activity expansion
Why? How?
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METRO AG 2005
Influence of promotion on product life cycle
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METRO AG 2005
Promotional Strategies
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Extensive promotion – for several markets (diversified promotion)
METRO AG 2005
Metro - Promotional Strategies
METRO AG 2005
Metro Top High Quality Suppliers
METRO AG 2005
Promotional Activities - Tactics
METRO AG 2005
Communication channels
Metro Post
Website
Direct letters to clients
Indoor
Outdoor (ex. “Metro – The partner of professionals”)
Magazines
Telemarketing
SMS
Clients as consultants
METRO AG 2005
Factors influencing promotion
» Company objectives
» Clients purchasing habits
» Advertising pannel
» Finacial resources
METRO AG 2005
How to improve promotion?
METRO AG 2005
Shaping the future of Metro retailing today
Thank you!
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METRO AG 2005