Super Stroe Chain in Pakistan

There has been a marked decrease in traditional 'kiryana' stores, n increase in general stores and the emergence of new formats such as superstores, malls and retail chains to cater to the increasingly time-compressed consumer. Long ago, it was a simpler time for inventory management: the owners knew their customers well, what products they needed and how much they would be willing to pay for them. If a customer requested something the store did not carry, it was simply added to the next purchase order.Today, the shopping experience looks much different.

The proliferation of department stores, grocery store chains and big- ox stores during the past two decades has ushered in dramatic changes to the retail landscape”rendering customer-centricity an increasingly elusive goal. The food and other items are need of every human. We see in Pakistan, from small shops to whole sale dealers, from corner pan shop to multi stories super stores. The progress in this regard is tremendous as new ideas and techniques are keep coming to sell the items.Recently we saw the chain of Makro and Metro giant store where you get everything under one roof.

Makro Pakistan - A brief history Makro is a part of House of Habib group. House of Habib is the business house of the Mohammedali Habib Family. Mohammedali Habib, a man of vision and exceptional leadership together with his brothers was the architect and builder of the Group which includes Habib Metropolitan Bank and Habib Insurance Co. Ltd. , established in 1941 and 1942 respectively.

Today, HOH employs over 10,000 people who work to provide an array of products and services in Pakistan.These activities range from chemicals. Managing a network of public and private companies, the House of Habib has equity and technical collaborations with British, Japanese and Norwegian ompanies. House of Habib despite its conservative and traditional values places great emphasis on decentralized professional management that has resulted in a progressive and dynamic organization.

MAKRO is a Dutch chain of large-scale wholesale supermarkets having a strong presence in many countries around the world.In Pakistan, it entered the market as a joint venture between its parent company SVH and the House of Habib to launch as Makro Habib Pakistan Limited. Habib group opened Makro in 2005. Makro demonstrated a commitment to grow in Pakistan by entering the wholesale sector nd with plans to invest around USD 300 mn in the next four years.

Pakistan's wholesale sector has been a grossly neglected segment of the economy; Makro pioneered into its age old customs and led the change by introducing modern and transparent rules of trade.Makro has also brought the latest technology and techniques to preserve and enhance the life of fresh farm produce. This will not only benefit the farmer but also the common man. Each Makro Wholesale Centre provides direct employment to 200 people, and brings in countless business transactions into the documented part of the economy, which s a significant step towards complimenting Governments' efforts. It was soon realized by Makro that more and more individual customers are coming for shopping and thus Makro enhanced its products range.Makro categorize its products in three categories: * Dry food * Fresh food * Non food Makro main focus is on * Competitive Prices * Quality Guaranteed * Everything Under One Roof * Air-conditioned and clean environment * Bulk Packing * Detailed Sales Invoice * Extended Business Hours - 8:00 am to 12 Midnight * Open 7 days a Week including national holidays * Vast and secure parking space Makro Mail: a fortnightly price list with special promotions on a vast range of products Market Competitive Edge Entering into the consumer goods was a great experience.

As CEO Makro Jamal Mustafa Siddiqui rightly said that local supermarkets often offer many things, while quality. CEO further added that one of the factors which distinguish Makro from other outlets is the ample parking space and the cozy environment. This makes a visit to Makro a family event. Visitors not only come in search on quality products available at most competitive prices but also avail a chance to eat together. They don't have to bother about the security of any kind.

The huge hall on a single floor gives customers a sense of easiness and it has been witnessed that parents are relaxed while shopping as they know their children are around "somewhere safe". The availability of variety of product range with proper price tag is a feature where customers decide instantly what to buy and how much to buy. There are teams of sales person everywhere in the store but it was found that people normally find things easily and hardly they talk to sales person. The board of each product are laced everywhere so that customer can read where ever he is on the floor.

The store was started as a whole sale way concept but soon it turned out to be the fact that 50% of sale is coming from individual costumers. CEO Makro mentioned in his one of interview that we did not go for huge electronic marketing campaign like TV or radio or even newspapers. We grew by word of mouth. And that gives us a competitive edge over other stores.

The daily sale is a more than 1 million. The suppliers are giving Makro a handsome discounts and Makro is passing this discounts to customers. Few more stores are coming.For example, Metro which is totally whole sale store and recently Naheed Supermarket shifted their style in a same way as Makro does.

But still Makro has 34% market share in whole sale market and 41% in individual customers market. It has opened few more stores in Karachi as well as in Lahore. Makro Customers Makro has two types of customers. * Institutional * Individuals Both type of customer want quality, price and convenience It is now a fact that only providing items is not enough, there has to be service in front end.

In institutional customers, the whole sale customers are included. The requirement of this category is totally different as compared to individual customers. Therefore, the planning and strategy for both types of customers is different. Initially the strategy was made only for institutional customers and less focus on individual costumers.

But when data available showed that the more revenue is generated from these customers then it is time to be customer centric. Makro has realized the fact that customers are now expecting more form Makro.They are now expecting that what ever they want to buy, it will be available in Makro. If Makro does not fulfill its customer needs, then it will oon start loosing its existing customers and it means loss in profit.

One more complaint received is that Makro does not have "ALL" products and sometimes people have to compromise in few items. Makro has started taking feedback form customers so that they can understand the behavior of customers. They have observed that many people buy routine fixed item and many does not like bulk quantity schemes.As the CEO Makro said that we don't compromise on quality, this is true as customers don't get any less quality products there but through feedback it was also learnt that ome good quality products are missing from the shelf which is required by A active database system is in place where total inventory management is controlled and in fact it gives information ahead of time that which items are required in three months time.

The system is also connected with other outlets across the country and a centralized database is maintained.This gives Makro an advantage to place its order to its supplier for all store in one go. As far as customers inputs are concerns, this system need update, so that customers complaints can also be handled from centralized management. Further, it is not connected with supplier and manual work has to be done. Challenges The challenges currently Makro is facing are: * ALL items are not available in store * New stores are coming with enhanced services * Sale might go down by 10% * Closure of Makro Saddar Karachi by Supreme Court.

No inputs from customers in CRM system and connection with supplier is missing Meeting local market needs is Just one of many factors contributing to the increasingly complex task of store management. How do balance changing market conditions, financial risks and supplier limitation, all while accommodating fast- hanging trends? How do Makro accurately forecast inventory positions for the upcoming holiday season when previous buying patterns dont hold true in the current economic environment? And how can Makro ensure that their merchandise forecasts and plans are actually achievable?Targets After analyzing the market trend and customers need and expectation, it is time for Makro to sit again and do its home work and come up with right strategy and an action plan to face the challenges mentioned above. The management of Makro was sure on one thing and that they will succeed if they focus customer and align its trategy according to their needs. To create a customer-centric shopping experience, it is critical for Makro to make smarter decisions about product selection and inventory management.