Revamping Makro
Evangelista, Marianne
Lim, Eric
Ong, Valerie
Rocafor, Shirley
Teh, Germaine
“You have been appointed
Vice President for Corporate Planning
by Makro”.
Problem Trigger
K
N
D
Who appointed you? Why "you"? Is "you"
a leader?
maybe you were appointed by Makro Why "you"? Are you a new or pirated
Board of Directors
employee? How long have you been in
the corporation? Who was your previous
employer? Were you promoted?
Have been
maybe the appointment was made
When was the appointment done?
Internet research on possible
last year
changes in Makro Structure
maybe the appointment was made in For what reason was "you" appointed?
Internet research on possible
maybe
you have certain To whom does the VP report to?
middleasofVP,
acquisition
Makro
Structure
Vice the
Internetchanges
researchinon
identity
of VP
dutiesMakro
and responsibilities
to
What
are was
the duties
or
Maybe
was
acquired
by
a
When
the
acquisition
and
by
whom?
Research
through
internet
CP
President both Makro and SM
responsibilities
of VP
CP?
corporation
Why was Makro
acquired?
news articles and interviews
Appointed
maybe you were appointed by SM
Why were you appointed? And by
Internet research
maybe as VP, you are now
Internet research on the ownership
To whom
Management
whom?does the VP report to?
under SM
of Makro
Maybe you were appointed by Makro Why were you appointed? And by
Newspaper articles/archives
whom?
Corporatemanagement
maybe you're appointed to do What
are the future plans of
Research through internet news
Vice President
maybe
as
VP,
you
have
certain
To
whom
does
the
VP
report
to?
What
research on identity of
long
term
Strategic
plans
Makro?
articles Internet
and interview
Planning
duties and responsibilities to both
are the duties or responsibilities of VP
VP CP
maybe to plan and direct
What does the department
Research on Corporate Planning
Makro and SM
CP?
business and organizational contribute to Makro? What
job description; research on
maybe as VP, you are now under SM To whom does the VP report to?
Internet research on the
operations
happened to Makro?
internet articles
ownership of Makro
Corporate Planning maybe you're appointed to do long
What are the future plans of Makro?
Research through internet
term Strategic plans
news articles and interview
maybe to plan and direct business
What does the department contribute to Research on Corporate
and organizational operations
Makro? What happened to Makro?
Planning job description;
research on internet articles
You
I
maybe Hans Sy appointed you
maybe the Corporate Planner sets
goals and realize goals
What is corporate planning? What does a Research on Corporate
corporate planner do?
Planning job description;
research on internet articles
Maybe the Corporate Planner sets
the growth plans of the company
What is corporate planning? What does a Research on Corporate
corporate planner do?
Planning job description;
research on internet articles
KIND Template
K
Makro
I
maybe Makro is losing money
N
What is the financial standing of Makro?
Are they profitting or losing?
maybe Makro is like S&R but cheaper What exactly is Makro?
D
Makro financial statements
Internet research on company
profile from website
maybe Makro is membership grocery What is Makro specifically? What does it Internet research on annual
shopping type of company
offer to its customers?
report and internet research on
company profile from website
maybe Makro has been existing in the How long has Makro been in existing?
Internet research on company
maybe Makro
is losing
Philippines
for more
than 10 years What is the financial standing of
from
website
Makro profile
financial
statements
Makro money
Makro?
Are
they
profitting
or
losing?
maybe it is into retail and wholesale What industry does Makro belong to?
Research on it articles of
Who are the main competitors of Makro? incorporation, research on the
internet
andon
Makro's
website,
maybe Makro is like S&R but
Internet
research
company
What exactly is Makro?
and
interviews
cheaper
profile from website
maybe it is a local company
Is Makro a local, international,
Newspaper articles/archives
multinational company? What size is
maybe Makro is membership
Internet research on annual
WhatMakro?
is Makro specifically? What
grocery shopping type of
report and internet research on
it offer
to its
customers?
maybe
it is a private corporation doesWhat
is the
vision/mission/goals
of company
Articles
of incorporation
company
profile
from websiteand ByMakro? Where is its principal place of
laws
business?
maybe it has been acquired by SM
What is Makro Planning to do? What are Personal Interview with Makro
their future plans? Did SM acquire Makro? employees and research on the
Why?
internet
maybe it is in liquidation
Why did it liquidate? Did they encounter
any problems?
maybe it has been in a process of
Why is it selling-out? Did they encoutner
selling-out
any problems?
Makro is an international Dutch chain Who owns Makro?
of stores
maybe majority shares were sold to
Who are the stockholders of Makro?
SM
KIND Template
Research through internet news
articles
Research through internet news
articles
Research through internet news
articles and websites
Research through internet news
articles
Is a
Makro
has
Warehouse type
Wholesale Store
12
Outlets
whose
market is
whose general task is
to maintain
by
Class A, B, & C
and
its
Major
customers are
hotels,
restaurants,
caterers and
sari-sari stores
acquired
fully by SM
group of
Companies
Concept Map
Continuous
Increase in
Market
share
appointed a
VPCorporate
Planner
Growth
in
Outputs
through
of
and
Continuou
s
Increase in
Market
profits
Self-service wholesale
that sells to
intermediaries and
large commercial
users on a
membership basis.
 Food and non-food
products

Background
on Makro
Then
2004
2006
2007
Now
• Previously owned by SHV Holdings N.V.,at 60 percent, SM Prime Investments of the Sy Group at
20 percent, and Ayala Corporation at 20 percent.
• Ayala decided to go another direction as they sold their existing shares to the joint venture
• Makro plans to add smaller branches all over the Philippines
• Makro planned on a reformatting of their existing stores that would give consumers a quick and
easier time in shopping while having special packs and promos to increase sales.
• In October 2007 (SM 2008 Annual Report, 2009), SM increased its ownership to 60 percent and
consolidated with Makro.
• The SM group now holds 100 percent of Makro, having already converted 3 Makro outlets to SM
Hypermarkets.
Background on the Problem
• Hotels
• Restaurants
• Catering
Businesses
• Traders
• Other
Business
Users
offices,
Food Products
and
Supplementary
goods
Small retail
outlets,
neighborhood
stores,
kiosks,
private
entrepreneurs
(resale of goods)
service companies,
government
agencies,
other
organizations
(professional use
of office
equipment,
detergents, etc)
Main Customers of Makro
Revamping Makro:
Strategic Management Process
Vision
• To be the leading cash and carry distributor of Food
and Non-Food products
Mission
• The distribution of products with excellence in price,
quality, and variety to professional customers,
offering them advantages and opportunities to
growth.
• The employment of good and knowledgeable staff
who will be trained to realize the full potential of the
Makro concept.
Vision and Mission
Objectives and Task of the
Corporate Planner
Puregold
SNR
SM Hypermarkets
Strategic
Map/Group
Makro
Cash and Carry
Competitors
SM Hypermarkets
SO
To overcome
economic downturn
and the limited
market by using corebusiness model of low
cost, low margin,
adjusting structure for
innovation for local
Philippine market.
ST
To overcome
competitors, and
similarly structured
companies with better
adaptation towards
the local Philippine
market
WO
Adjust amenities and
services fitting for the
local Philippine market
WT
Avoid attack by
competitors and
similarly structured
organizations with
differentiation and
deeper understanding
of the local Philippine
market.
Strategic Objectives
from SWOT Analysis
Redefine
focus of
target
segment
3
2
1
Research
into the
market and
the channels
it services
and create a
Makro
Tracking
Program
General/Main Strategies
Strategy Formulation
Update the
Corporate
Identity
Stability Strategy
Growth Strategy
•Pause and Then Proceed strategy
may also be used considering that
Makro did go through a turbulent
experience with SM acquiring it.
•Makro may take the time to pause,
do in depth market research first.
•Horizontal Growth - “expanding the
company’s existing products into
other locations and/or market
segments.”
•introduce the selling of both bulk
and non-bulk goods
•New Target Segment: sari-sari store
market and the direct customers or
the end-product users.
Corporate Level Strategies
Cost leadership
Differentiation
Tactics
•Using the Makro Website
as a new channel for
buying products online
•Encirclement
•Greater product variety
by offering non-bulk
items
•Guerrilla Warfare
•Aggressive
marketing/promotions
Competitive (Business Level)
Strategies
Operations
Marketing
Finance
spearheading
the market
research
Minimize costs
and risks,
feasibility and
profitability of
new programs
Value-chain
analysis
Support by
delivery,
packaging
(products into
bulk), customer
services
MIS
Human Resources
Training staff
(delivery, onlinebuying manager,
customer service)
to handle any new
technologies and
overall
improvement
Close monitoring
and management is
essential for the
corporate planner in
order to keep tabs
on the execution of
the strategic plan;
Development of
Online-Buying
Function
Functional Strategies
Stability: Pause-Then-Proceed
Step
No.
Action Item
Responsibility
Measure
Time Frame
1
Assess the buying
behavior of current
hotel, restaurant and
caterers
Marketing (Mr. Lim) and
Operations/Productions
(Ms. Ong)
2 dealers
from each
category
1 to 2 months during
Stabilization period
2
Identify areas of
improvement and sucess
for each part of the value
chain
Marketing (Mr. Lim) and
Operations/ Productions
(Ms. Ong)
Evaluation
from all
department
heads
1 month
3
Assess the interface of
Makro (products and
services) with its customers
Maketing (Mr. Lim) and
MIS (Ms. Evangelista)
2 dealers
from each
category
2 months
Detailed Action Plan
Growth Strategy: Horizontal Growth
Step
No.
Action Item
Responsibility
Measure
Time Frame
1
Do Market research on
buying behavior of new
target segment: sari-sari
stores and end-product
consumers
Marketing (Mr. Lim)
200 Sari-sari
stores and 200
end-product
customers
1 to 2 months during
Stabilization period
2
Develop onlinebuying/ordering function for
existing market in the Makro
Website
MIS (Ms. Evangelista),
Marketing (Mr. Lim) and
Operations/ Productions
(Ms. Ong)
Program pilot
testing
3 months
3
Training and support of
Operations/ Productions
staff
Operations/ Productions
(Ms. Ong) and Human
Resources (Ms. Rocafor)
Program pilot
testing
3 months
4
Introduce non-bulk
products in the market to
cater to new target
segment
Operations/ Productions
(Ms. Ong) and Markeitng
(Mr. Lim)
10 Makro
stores
3 months
Detailed Action Plan
Competitive (Business Level) Strategy and
Tactics
Step
No.
Action Item
Responsibility
Measure
Time Frame
1
Assess the feasibility
and incorporate into
promotions
Finance (Ms. Teh) and
Marketing (Mr. Lim)
20 dealers
1 to 2 months
2
Promote of the new
online-buying/ordering
function in the Makro
Website
Marketing (Mr. Lim)
1000 site
visits
2 months
3
Diversification into nonbulk product offering to
cater to different
markets - promotion
Marketing (Mr. Lim) and
Operations/ Production
(Ms. Ong)
10 Makro
stores
3 months
Detailed Action Plan
Tactic 1: Market Expansion by Abolishing Membership Requirement
• Makro stores are not open to the general public. They are currently marketing to traders,
caterers, and complementary business users.
• The main competitors of Makro: SNR/Pricesmart, Cash and Carry, and SM Hypermarkets
all have one thing common that Makro is that although all three are basically of the same
product range, these companies do not require membership cards for customers to be
able to shop.
Tactic 2: Increase Promotions: Sales Promotion and more Publicity/Public Relations
• Makro may be offering low prices just as much as Cash and Carry and SM Hypermarkets.
However, it is not at all doing enough promotions targeted to the general public. Their
existing marketing strategies, are of course, dependent on the media habits and lifestyle
of their current market.
• SM Hypermarkets are more aggressive in their PR efforts such as events. Seen in their
websites under the "Featured Events" side bar are only some of the events that enable SM
Hypermarkets to gain more publicity from the market.
Tactics
To reflect positive changes in the
organization - new strategies, services –
and communicate this to its consumers
 Current Logo:


Proposed Logo:
• Capitalized “M” of
Makro to indicate
leadership
•Italicized to show
Makro’s pro-activeness
and promptness in
providing its services
to its consumers
Updating the Corporate Identity
Evaluation and Control
End of Presentation
Thank you very much!