Project on makro Pakistan

Vision & Mission

The mission statement of Makro is the distribution of products with excellence in price, quality
and variety to professional customers, offering them advantages and opportunities of growth.

Makro Cash & Carry is the leading cash-and-carry wholesaler of food and non-food products in
Asia and South America. At present we are located in 5 countries in Asia and 4 countries of
South America with a total of 172 stores. Makro employs more that 15,000 people and serves
hundreds of thousands of professional customers everyday, resulting in an annual turnover
exceeding 4 billion Euros.

Makro is a high volume, low cost - low price, no frills Cash & Carry Wholesaler, selling to
registered professional customers a full range of food and non-food products, with
communication solely based on direct mailing. The core customer base is the retailer, caterer
and professional in the service sector. Our registered customers are informed of new product
developments and promotions through our biweekly Makro Mail.
Market satisfaction
Makro Habib Pakistan Limited owned by joint venture between Makro Cash and Carry and
House of Habib, Makro Super Stores is a well known Chain of Super Wholesale Stores in
Pakistan, currently having 5 Branches in Pakistan 2 of their branches are in Lahore, 1 branch in
Karachi, 1 in Faisalabad and 1 in Islamabad.
You can easily buy fresh fruits,fresh vegetables, All types of meat, packaged food, consumer
Products, electronics Items, non-food items, household consumer goods, pharmaceutical
products, electrical Products, Sports etc.
People Take This Kind of Shopping positively as they easily buy everything from there under a
single roof.
People also came at Makro for outing and to have fun of having a Shopping place full of almost
everything you need, Families love to have an international level Store in their country.
Customer satisfaction

Makro Core Customer Base

Professional customers of all socio-economic segments are important at Makro and all possible
growth potential is being pursued for each one of them.  Customer Relationship Management is
a vital function at all Makro Stores. 
Dedicated teams at each Store work with the aim of focusing on customer satisfaction, with
particular emphasis on our core customer base. 
Regular and personalized interaction with our active customers help them to stay abreast of
Makro offers and promotions, while it supports the Company in making improvements to its
food and non food assortment. 

We believe that the biggest opportunity of growth is in service to the catering sector thus a
large portion of our assortment is stocked with the need of Hotels, Restaurants, Cafeterias and
Catering Services in mind.
The impact of this relationship management can be seen in the growing customer loyalty and
the increased spending on an average transaction.   Makro will continue to professionalize its
competency in the area of customer interaction.

Financial measures
Finance Advisor Shaukat Tarin said on Tuesday that the government was operating on a
modern concept of associating all stakeholders in planning and implementation and also a
periodic review of how the plans were being implemented.“Modern management concepts are
being introduced in government” the advisor said while inaugurating the 11th management
Association of Pakistan (MAP) Convention 2008 here.He said the government faced a challenge
of unprecedented nature and was almost in an “act or die” situation when it was voted into
power.“The government accepted the challenge and acted to overcome the crisis,” he
informed the audience while recalling that the fiscal deficit at one time last fiscal year had
touched almost 10 per cent level.

It ended at 7.5 per cent fiscal deficit and 8.4 per cent current account deficit.

He added that when the government took over, the world had come under impact of an
unprecedented global financial crisis and Pakistan’s access to international finance market was
also blocked.The government took tough decisions of cutting down heavily on energy subsidies
to contain expenditure budget and narrow down budgetary imbalance and reduce dependence
on State Bank of Pakistan borrowing.

Mr. Tarin raised a question before his audience as to why Pakistan confronts an economic crisis
after every decade. His own answer to this question was to prepare a long term plan with
consultation on stakeholders and then a periodical review.He said the nine point agenda on
which the government was working was a consensus strategy. It would be reviewed quarterly
by a body headed by the prime minister

.Flexibility

Prime Minister Syed Yousuf Raza Gilani on Tuesday said all economic sectors in Pakistan are
open to Foreign Direct Investment and a level playing field is provided to both local and foreign
investors allowing 100 per cent foreign equity. He was talking to Farhad Zulficar, Executive
Chairman, Makro - Habib Pakistan a joint venture between Makro Cash and Carry, a leading
Dutch wholesaler of food and non-food products in Asia and South America and House of
Habib, Pakistan who called on him here at the PM House this morning.

The Prime Minister said that the government has announced favorable incentive packages to
attract investment in all sectors including reduced customs duty, sales tax and withholding tax
relief on the import of machinery. Farhad Zulficar told the Prime Minister that Makro Cash and
Carry has 172 stores worldwide including in five countries of Asia and four countries of South
America and has an annual turnover exceeding four billion Euros.

In Pakistan the company has so far set up 4 stores in Karachi and Lahore, and plans to set up 30
stores, he said. In his presentation
Marek Andrzej Minkiewicz, the former CEO and Managing Director of Makro Stores in Pakistan
informed the Prime Minister that Makro - Habib plans to invest around $ 300 million in the next
four years out of which $ 200 million will be inward remitted as Foreign Direct Investment. He
said that the monthly turnover of each store is around Rs 160 million. Secretary Industries and
Secretary Board of Investment attended the meeting.

Quality for distribution

Distribution System for Imported Products

Imported products often move to a distributor or agent, who in turn, sells directly to modern
retail outlets. Delivery of the products may be direct to stores or to the warehousing
facilities of the retailer. Only a few retailers buy directly from foreign suppliers and assume
responsibility for logistics.
Most imported products are sold to the modern retail stores, including hypermarkets,
supermarkets, wholesalers, convenience stores, and mini-markets. Products that move to
the traditional sector face a more extensive distribution process. There are about 10 major
cities that serve as distribution hubs in Indonesia: Bandung, Yogjakarta, Surabaya,
Denpasar, Makassar, Manado, Balikpapan, Banjarmasin, Medan, Pakanbaru, Padang,
Palembang, Batam. Generally, products move to warehousing facilities of distributors in
these hubs, then to sub-distributors and wholesalers for delivery to retailers.

Trends in Distribution

The modern retail sector is expanding rapidly, but the traditional sector is expected to continue
to dominate the distribution system for the foreseeable future.
Distribution channels will shorten. Large retailers will increasingly import produce and other
products directly from foreign exporters, or will be supplied directly by local manufacturers and
fresh produce suppliers or growers. The products are placed in central warehousing and
distribution systems in major urban areas utilizing modern technology and equipment. They will
open more outlets in cities on Java outside of Jakarta to make these systems efficient. Adequate
infrastructure is a major problem on the other islands.
The success of large retailers, wholesalers, and hypermarkets in offering Indonesian consumers a
wide variety of products at lower prices will stimulate growth of imported food sales. More
middle and low-income consumers are beginning to shop in these outlets. Increasing
competition will force existing supermarkets and other modern retailers to focus on targeted
consumer groups, to become more sophisticated in their marketing efforts, and to improve
efficiency of store operation.

Supermarkets, Hypermarkets, and Warehouse Outlets

This segment is the most likely to purchase imported products. Imports can account for
anywhere between 5 and 30 percent of the food items sold, increasing to 60 percent for
specialty retailers catering to higher end consumers. In the near future, smaller quantities of
imported products are expected to be featured, but with a greater variety of brands and items.
Fruits and Vegetables
Fruits and vegetable corner was fine, the only thing that you have to keep in mind is that you
have to get it tagged for weight and price right in that section.
As for ourselves, we did not know that and missed the counter (which is not at a very
conspicuous place), completed our shopping and found out only when we reached the checkout
counter. So I had to go all the way back to the vegei area to get the things weighed and priced,
and mind you its the other corner of the shopping area (30 times bigger than Alfatah in Lahore
and Aghs's in Karachi.
Prices
The prices of most of the the items were definitely cheap, but one item which I incidently found
and could compare not to be cheap was WD-40 spray (cleanser), which you can find in the
market for Rs.150-155 and it was available at Makro for Rs.156 (so not everything is really
cheap).
The prices of general food items and crockery, cutlery etc. was cheaper than the market.

Fresh Bakery
The fresh bakery concept was really good and was releasing good aroma as well. Mom also
bought a couple of things from there, including my favourite "Cake Rusk" (i'm lovin' it!). They
had already wrapped packs of them for take away and looked really fresh and golden. It was
only when we reached back home that mom opened the pack to find out that only the top ones
were golden and all the rest under the top layer were burnt (very bad quality - bluff I would
say). So be careful the next time you are there.

Delivery

It has received well by the local community as this business is growing day by day and it is
expanding in other areas of Lahore. This concept is international concept and its opening has
been appreciated by the whole community as it is proving every thing under one roof and even
people come here for shopping as well. Moreover it is good in resolving complaints from
customers and suppliers. For example if customer complaints about expiry products, price
issues and deliveries then they deal with customers in an efficient way. Similarly there may be
complaints from suppliers which they try to resolve as early as possible.
 Approaching roads/areas:
Although it is located in an area that is highly congested and not really advance but roads are
spacious and their width is 150 square yards approximately. So mostly there is no traffic
blockage.
 Parking:
There is huge parking at the ground store and approximately space for parking is around 4.2
acres. People do not face any problem for parking cars, only they have to travel a lot if they
park their car at a distant place but there is no shortage of available space.

 Transportation system:
They have readily available transport and they don’t have to face any problem regarding
transportation. They have there drivers readily available to carry bulk. For female employees
the have transport system as well but not for male employees.
 Operations
External effectiveness

Plans, organizes, directs and controls all activities related to improving customer market
share, sales and profitability, including but not limited to registration, canvassing and
telemarketing.

 graduate of marketing or management related courses

 at least 3 years managerial experience ; with strong leadership qualities, excellent
interpersonal, coordination, negotiation and communication skills, analytical;
computer literate
 ·Oversees and manages Customer Reception, Canvassing, Telesales, Gold Card
program, and internal sales force.
 Executes the marketing plan – who are our customers and what are their needs.
 Build and leverage our strategic plans to attain sustainable growth and advantage by
building customer loyalty.
 Develops and execute strategies, in line with the overall corporate and store
objectives, to improve customer base, retention and growth on all areas of key
customer variables.
 Develops strategies in the efficient handling of customer complaints and feedback
and provide solutions.
 Develops and implements effective canvassing strategies, correct mapping and
training.
 Ensures effectiveness of Makro Mail delivery; provides timely data to evaluate
courier and distribution strategies.
 Responsible for the supervision and coordination of commercial promotion.
 Manages subordinates’ performance by setting performance expectations, and
leading them towards attainment of the same. Sets global objectives and targets
while analyzing the past performance of the customer list. Sets quantifiable
objectives for the store.
 Analyze the customer reports to track the evolution of the business unit and manage
the customer life cycle or customer database.
 Ensures compliance to established store policies and procedures.
 Ensures proper management of costs, productivity and manpower complement in
his/her group.
 Develops good attitude, high motivation for his/her team by training, analyzing
competencies, and coaching.
 Performs other duties that may be assigned from time to time.
Internal effectiveness

Responsible for taking strategic cross categories Supply Chain decisions that maximize the
total profit of Country Supply Chain. Contributes to the country results (all categories)
through the deployment of an efficient and reliable Supply Chain. Manages, breaks down and
controls the overall Supply Chain costs and also

 taking the different Supply Chain actions in order to meet target Service Level at the
most economical way
 University graduate of Transportation or Logistics
 at least 5 years similar position at managerial level; with substantial exposure from a
service-oriented organization; interpersonal skills good planning, leadership,
communication and negotiation skills; computer literate
 Managing the infrastructure and cross category costs. Determining costs and cost
targets related to the different activities. Setting up a monitoring system to control
and analyze the cost evaluation per activity and reporting it functionally to Regional
SCM. Insuring that cost elements related to Supply Chain decision making process
are available
.
 Taking tactical decisions needed to adapt the Supply Chain network to the market
evolution (Flow Optimization). Analyzing the different flow paths and (re)-assigning a
product group to the most economical and efficient flow path. Preparing decisions
about the logistics flows used for the articles in the assortment (decision category
management).

 Proposing targets, actions and projects to improve the Supply Chain to the country
management team. Coordinating the players and processes in the supply chain
according to the business target/strategy. Coordinating the different Supply Chain
functions (e.g. Supply Chain category manager, Supply Chain cost controlling,…) in
order to keep the whole logistic organization coherent.

 Integrating the Supply Chain competence at country level and develops a Supply
Chain competence network, taking into account the guidelines of SCM from Makro
Asia. Being the link between the Regional SCM and the national SCM organization.
 Negotiating with the Logistics Service Provider. Ensuring the interface with Logistics
Service Provider on a daily basis. Managing the Supply Chain and logistics
irregularities on a daily basis.
 Improving inventory management and performance along the whole supply chain.
Making and running capacity planning. Breaking down Supply Chain processes into
activities.
 Working with the Distribution Center and the stores to define the most efficient
delivery plan (optimization of the Supply Chain)
  Analyzing the Key Performance Indicator (KPI) in order to redefine/re-parameterize
the SCM Network. Measuring the supply chain
performance (stocks, quality, time, …) as well as costs and benefits.
 To perform any other assignment assigned by the Business Unit Manager.

Conclusion
After studying MAKRO, the above information is collected. By this information maintain a
balanced scorecard. Which contains information about the customers satisfactions,
transactions of MAKRO, how to become a registered member, employees performance, sales
growth, technology used in MAKRO. I learn from MAKRO how they work their routine work,
daily jobs, how they satisfy their customers.