Strategic Marketing Plan

Gourmet

Acknowledgements
We would like to acknowledge some persons who helped us providing information regarding their
company. Mr. Ali Suqrat who gave us the time out of his busy schedule to designate one of his
resource person Mr. Zubair in Sundar Industrial State to provide us with the required information.
who helped us a lot and provide us with the necessary details. Moreover he referes us to Mr. Ali
Ahmed Javed and Mr. Mazhar Hussain (Manager Shps)at Kot lakh pat who also helped us in making
and completing our project.
We would specially like to thank who gave us a chance and comprehensive knowledge of strategic
tools and techniques to complete this project. He really enhanced our knowledge by assigning this
project and utilizing it by applying all strategies in it.

Table of Contents
Acknowledgement
Executive Summary
Company Description
Mission/Vision/Strategic Goals
Situational Analysis
External Analysis
Industry Analysis
Competitive analysis/Competitive Pressures
NESTLE
COCA COLA-Minute Maid

SHEZAN

HALEEB
MARKET ANALYSIS
Market Segmentation
Target Markets
Positioning
Marketing and Product Objectives
Current Markets
New Markets
Environmental Analysis
Demographics:
PEST Analysis
The Customer Environment
Internal Analysis
S.W.O.T Analysis
SWOT Matrix
Current Strategy
Product Strategy
Pricing Strategy
Promotion Strategy
Place/Distribution
Positioning
Positioning Map (BY PRICE/QUALITY)
Corporate Culture
Financial Analysis
Strategic Analysis
Key Strategic Issues
Strategic Tools
Product Life Cycle
BCG Matrix
Identification of Strategic Alternatives
Identification & Analysis Of &Choice Of Alternatives
Arguments Of Preferred Choic
Strategic Recommendations
Three Years Final Objectives
Strategic Intent
Operating Programmes To Achieve Diversity
Trigger (Contingency Plan)
Methodology of Research
Implementation & Control Matrix

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References:

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Executive Summary
Gourmet was founded by Mr. Nawaz Chatha in 1987 as a single outlet of a bakery unit.
Over a period of two decades it has grown in stature and apart from excelling in bakery products it has
introduced new trends in a variety of businesses such as restaurants and dairy products business. The
main aim of the company is to provide quality products at a competitive price to its valued customers.
To produce the best quality products, company has invested a huge amount of capital in placing state of
the art technology to meet the demands of the customers. The company wants to increase its market
standings by opening new outlets at key locations of the city. For any company market sustainability is
very important and for this the company wants to break the monotony on a timely basis by introducing
new products and enhancing the quality of current products through innovative ideas.
The current disadvantages that the company is facing is that they dont have a paperless
environment which is a major hurdle in effective communication among various departments of the
company, to overcome this deficiency the company is committed to implement an ERP (Enterprise
Resource Planner), in order to minimize the time wastage. The companys major strengths include
hiring skilled personnel on a permanent basis, company owned outlets (no franchise), state of the art
technology to produce quality products,

innovative trends in providing services (especially in

restaurants), the company believe in charity and for this they provide meals to the patients in hospitals
of Lahore. To cope with the current and future threats, the company is committed in introducing change
in the current and increase in the product lines.
The company has a very comprehensive marketing program which includes both promotions
and pricing. Promotions are generally made through POP, banners, brochures along with push strategy.
Price is a key factor in the growth of a company. Gourmet has a very straight forward pricing strategy
and is following cost leadership strategy. For bakery products the price ranges are uniform in all the
outlets, but in dairy and restaurant business it depends on the income level of the target markets. In
short the company is on a growth stage and they want to compete in the market in a positive way.

Company Description
Gourmet Bakers and Sweets is the largest food retail chain of Pakistan. It is based in Lahore, the
second largest city of Pakistan known for its traditional foods and passion for eating. With their 4
processing units and 73 sales outlets plus 3 outlets are under construction they try to reach out to a
huge population for their food needs.
The company has shown an explosive annual growth of more than 25 % in its business since 1987,
when Mr. Muhammad Nawaz Chatha started this unique business with only one sale outlet. With his
commitment and strenuous effort to provide the consumers with best quality food products in a
convenient and unmatched displaying manner, Gourmet has become a success story of business growth
in Pakistan. At moment we have more than 1700 employees working in the organization.

Mission Statement
The mission of Gourmet Bakers & Sweets is to provide quality products at a low price to be the market
leader.

Vision Statement
The vision of Gourmet Bakers & Sweets is to be the leading health, wellness and nutritional company
at national level.

Strategic Goals
This section will cover the overall goals of gourmet bakers and sweets.

Non Financial Strategic Goals

To get the maximum market share by taking an advantage of our strengths of latest technology,
own distribution, best quality with competitive prices by maintaining good relations with
suppliers.

To increase outlets on key/main locations of every area of the city, Lahore.

To expand the business to other main cities of Pakistan in next 5 years.

To be among the top companies in the food business.

To increase the number of outlets of the company 25 % annually.

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To increase the product mix by adding new product lines.

To build strong customer relationships by providing them quality products at the low cost.

To introduce quality products for health conscious people.

To introduce unique ideas of product marketing.

To implement paperless environment throughout the company.

Using paper bags replacing plastic bags within next two years.

To build better relationships with supplier

Financial Strategic Goals

Minimum branch revenue growth rate will be 10 % annually.

To double the annual sales in a period of five years.

To reduce the cost of production by backward integration strategy.

To increase the companys profits by maintaining the current customers through consistent
quality and low prices and getting new ones by opening new outlets.

To reduce the cost by reducing the wastages during the production and transportation.

SITUATION ANALYSIS
Situational analysis involves in it both external and internal factors with respect to the environment that
will have an influence on gourmet.

External Analysis
Industry Analysis
Pakistan produces good quantity and quality of fruit but because of lack of proper storage, distribution
and processing facilities, Pakistan could not earn as much revenue as it can. The fruit juices market is
growing for several years, and will be continuing to expand, mainly because these products are aligned
with general trends regarding food and beverages consumption.
Currently the whole world economy is moving towards deflation. Overheads are sky high that is
affecting cost of product and is not giving much profit in return. This depression on world economy
will slash down our GDP growth as well.
Several changes take place in the fruit juices distribution channels environment in Pakistan, a growing
importance of foodservice, the penetration of the global beverage brands (mainly Coca-Cola and Pepsi)
These changes are threatening and also bringing opportunities to companies.
Gourmet has been in the food industry of Lahore for the last 21 years and is dominant in its industry
because of having more market share than its competitors. Soon they will start a new product line of
fruit juices in the next two months for which a better offering is needed in order to gain more share by
attracting customers. For Example Nestle, Shezan, Haleeb, Coca Cola are Gourmets direct competitors
in the field of fruit juices and beverages who have already captured a reasonable market share by
serving all the classes of customers (high to low). Indirect competitors are those offering bottled water,
soft drinks, tea, coffee & red drinks. They are more focused on drinks also because of health conscious
to use natural products and increase our immunity against diseases.

Competitive analysis/Competitive Pressures

In Fruit juices its direct competitors are Nestle, Shezan, Minute Maid, and Haleeb. Lets take a close
look of each Competitor:-

NESTLE
Nestl was founded in 1866 by Henri Nestl with headquarters in Vevey, Switzerland. It has employed
around 250,000 people and has factories or operations in almost every country in the world

Infrastructure
It is one of the world's biggest food and Beverage Companies.

Target Market:
Nestle targets both genders, male and female of all the age groups. It targets the upper and middle
class people who are health conscious and can afford to drink fruit juices. Tourists are also the target
market of nestle as they have to drink safe and healthy fruit juices.

Products
Nestle offers a variety of brands of which the most well known are Nescafe, Nestl Kit Kat, Nestl
bottled waters and Nestl juices which include mix fruit juices, apple juice, mango juice, grape juice &
orange juice e.t.c in 200ml & 1 liter packing. Following is the product line regarding fruit juices.

PRODUCT LINE FOR NESTLE FRUIT JUICES

Item Name
Mango
Orange
Red Grapes (Nectar)
Apple (Nectar)
Pine Apple (Nectar)
Guava(Nectar)
Chaunsa (Nectar)
Cocktail

Packing size
200 ml
1 Ltr (normal)
200 ml
1 Ltr (normal)
200 ml
1 Ltr
200 ml
1 Ltr
200 ml
1 Ltr
200 ml
1 Ltr
200 ml
1 Ltr
200 ml
1 Ltr

Rate
Rs: 18/Rs: 68 /Rs: 18 /Rs: 68 /Rs: 18/Rs: 72/Rs: 18 /Rs: 72 /Rs: 18 /Rs: 72 /Rs: 18 /Rs: 72 /Rs: 18 /Rs: 72 /Rs: 18 /Rs: 72 /-

Key Strengths & Weaknesses

STRENGTHS

High quality obtained by the usage of a special production process.

Own industrial laboratories that perform constant control for physical-chemical and
bacteriological parameters.

Daily sensor water analysis for flavor, color and odor.

Safety and Purity from the source to the consumer

Produced locally, close to the consumer.

WEAKNESSES:

Nestle fruit juices are relatively expensive than other brands.

MARKETING MIX STRATEGIES

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DISTRIBUTORS:
They are using two types of distribution channels.
Single level channel: Manufacturer
Dual level channel: Manufacturer

Retailer
Wholesaler

Customer
Retailer

Customer

PROMOTION:
They are using television and radio advertisements in electronic media. In print media they are using
billboards, newspapers, pole signs and posters.
Point of Purchase Promotion (POP) : In big departmental store they have display corner in which
Nestle Juices are refrigerated.
In summers direct marketing is used for promotion by providing cool points of Nestle Pure Life where
chilled Nestle Pure Life is available for instant drinking.

PRICE:
Nestle is following pricing strategy through which it provides functional and psychological satisfaction
to its target customer. The pricing strategy of Nestle is market skimming.
Prices of Nestle fruit juices are relatively higher than their competitors. Market prices of individual
consumables (200 ml) are Rs.18. The price of 1 Litre pack is Rs.68-72.

PRODUCTION:
Nestl has been treated and rematerialized using a standardized industrial process to ensure purity and
quality. Nestle is leading producers of fruit juices.

COCA COLA-Minute Maid

Item Name

Packing size

Introductory Rate
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Minute Maid

500 ml
1.5 Ltr

Price
Rs: 35 /Rs: 85 /-

Rs: 45 /Rs: 90 /-

STRENGTHS

High quality

Purity by using pulp(giving effect of natural juice)

Heavy Promotions

High level of availability

Strong Brand Image

No local competitors of pulp juices

WEAKNESSES:

High Prices

Pricing Strategy
Initially Coca Cola practiced penetration strategy at introductory level and after attaining the
positioning they shifted to price skimming strategy.

Distribution strategies
They are also using same two types of distribution channels.
Single level channel: Manufacturer
Dual level channel: Manufacturer

Retailer
Wholesaler

End user
Retailer

End User

Promotion Strategies
They believe in the power of promotion to break the competition

Advertising

Consumer Promotion

Trade Promotion

Direct Marketing-Vending Machines

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SHEZAN
Shezan bakers & confectioners started their business in 1969 and since then it is running successfully.

Infrastructure
Currently it has 20+ outlets through out in Lahore operating by 5-6 family directors. Shezan bakers
opened their first outlet in ABID MARKET MOUZANG having target of Lahore with 100-150 items
in first outlet. Now shezan has different product range includes bakery products, sweets, cereal
products and disserts and Fruit juices. Following is the product line regarding fruit juices.

PRODUCT LINE FOR SHEZAN FRUIT JUICES (PLAIN)

Item Name
Mango
Orange
Fruit Punch
Apple

Packing size
250 ml
1 Ltr
250 ml
1 Ltr
250 ml
1 Ltr
250 ml
1 Ltr

Rate
Rs: 10/Rs: 45 /Rs: 10/Rs: 45 /Rs: 10/Rs: 45 /Rs: 10/Rs: 45 /-

ALL PURE JUICES-(SHEZANS BRAND)

Item Name
Grapes
Orange
Tropical Nectar
Apple

Packing size
250 ml
1 Ltr
250 ml
1 Ltr
250 ml
1 Ltr
250 ml
1 Ltr

Rate
Rs: 17/Rs: 62 /Rs: 17/Rs: 62 /Rs: 17/Rs: 62 /Rs: 17/Rs: 62 /-

SHEZAN JUICES IN BOTTLED PACKING

Item Name
Lemon

Packing size
240 ml

Rate
Rs: 15/13

1 Ltr
240 ml
1 Ltr
240 ml
1 Ltr
240 ml
1 Ltr

Mango
Lychee
Orange

Rs: 70/Rs: 15/Rs: 70/Rs: 15/Rs: 70Rs: 15/Rs: 70-

STRENGTHS

Highly Experienced (Among Pioneers)

Serving Low income class

Market Share on Local level

WEAKNESSES:

Less Promotion

Pricing Strategy
Market Penetration strategy.

Distribution strategies
They are using both direct and indirect strategies.
Single level channel: Manufacturer
Dual level channel: Manufacturer
Vertical integration (zero level channel):

Retailer
Wholesaler

Customer
Retailer

Manufacturer

Customer
Customer

Promotion Strategies
It is using both Print and electronic media to promote its product.

Advertising

Trade Promotion

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HALEEB
Item Name
Apple
Mango
Orange

Packing size
1 Ltr
250 ml
1 Ltr
250 ml
1 Ltr
250 ml

Rate
Rs: 68/Rs: 10/Rs: 68/Rs: 10/Rs: 68/Rs: 10/-

STRENGTHS

Established Brand Name

Serving Low to Medium income class

WEAKNESS:

Relatively Low Perceived Quality

Lesser Availability

Pricing Strategy
Its prices are almost equal same as Nestle while perceived quality is no better then competitors, so it is
stuck in the middle.

Distribution strategies
They are using both direct and indirect strategies.
Dual level channel: Manufacturer

Wholesaler

Retailer

Customer

Promotion Strategies
It is using both Print and electronic media to promote its product.

Advertising

Trade Promotion
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MARKET ANALYSIS
First we should know what Market is; it is defined as a set of Potential and actual buyers and sellers
who give market offerings to the customers.
The beverage industry, through innovation, is launching several new products, like
fruit flavored, iced teas, energy drinks, Fruit flavored water, fruit based non alcoholic beverages, fruit
flavored milk drinks, freshly Squeezed, fruit juice with juice bits, with yogurt, juice added with
vitamins and others.

Market Segmentation
We have adopted undifferentiated marketing approach that assumes all customers in the market have
similar needs and wants for our products i.e fruit jices

Target Markets
The people from income point of view is middle to low class is our target market.

Positioning
Gourmet Quality Gourmet Prices
Means High Quality with Low prices

Marketing and Product Objectives

The main aim of the company is to cash on the current standing of the company in the fruit
business.

To maintain the actual customers and to attract the potential customers

To provide new products with best quality at low prices based on their needs.

To meet nutritional needs of consumers of all age groups

To be the preferred choice for the consumers

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The market according to gourmet has been categorized into various segments which are as under.

Current Markets

New Markets

Current Markets
Our current market is Lahore city covering its key/main locations

New Markets
As the population is growing at a rapid rate, new housing and industrial units are being set into place.
This is a big opportunity for the company to reach out to those customers by increasing companys
outlets & these concepts are also useful to launch new products like fruit juices

ENVIRONMENTAL ANALYSIS
Demographics:
Pakistan has large density of population. This is the very important factor that indicates that there is
potential market for purified fruit juices. It is for both male and female of all age groups with all
income groups.

Political/Legal Factors
The beverages industry is one of the five major spinners revenue in the central excise duty (CD) regime
for the federal board of revenue of Pakistan and the variation in rate of CD imposition will certainly
affect the beverages industry.

Economical Factor
Almost 1/3 of the population is below poverty line. Upper and middle class who are health conscious
will prefer fresh fruit juices.
New housing and industrial units are developed in Lahore district which offers a big opportunity for the
company to open outlets in the new housing and industrial units. And these establishments and
developments are helpful to further promote their product.
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Unpredictable law and order situation, electrical shortage and political instability is one of the negative
factor to make it difficult for Gourmet to achieve its future growth objectives
Social & Cultural
Gourmet does not affect any of the social and cultural factor like race, religion, language etc. It is
consumed by low middle & high class health conscious people. They are also implementing concept of
societal marketing by giving donations & charities in various sectors. For example they are providing
lunch boxes in Children Hospital and contributing operation fees of heart surgery patients in PIC
(Punjab institute of cardiology).

Technological & Phyical Factors:

Although physical infrastructure of Pakistan is not very good but Gourmet has its own Industries and
laboratories to meet quality standards and ensure value. The company is putting their best effort to
utilize latest information technologies in its business applications. For example web based
communication systems which promote paper less organization.

THE CUSTOMER ENVIRONMENT

Pakistan has large density of population. This is very important factor that indicates that there could be
a potential market for fruit juices. It is for both male and female of all age groups.

Gourmet is operating its outlets in different class localities in Lahore. Since it has medium level
prices it will serve mainly the middle class income group.

As it will be a pure fruit juice so their major consumer will be health conscious people of all
age groups.

People who are heavy users of pure fruit juices are aware about their nutritional values and
benefits and light users basically use it for refreshment and to quench their thirst.

Our customers will find our products in our outlets which are situated at key locations.
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We will aware our customers that they will not only find the competitive price edge but it also
contains extra nutritions.

Our Goumet juice will be a good deal to overcome constant overdrive in your life and give your
body to equip yourself to fight against daily ware out.

INTERNAL ANALYSIS
S.W.O.T Analysis
S.W.O.T analysis is a study of Strengths, Weaknesses, Opportunities and Threats. Now we will discuss
each and every step in detail.

Strengths
The major strengths of the company will be as under.

To gain state of the art technology to produce the products.

It is a major strength of gourmet that they have kept all their employees on permanent basis.
This feature creates a sense of security of the job from lower to higher management.

Great and neutral taste which suits all the family

Quality is ensured at each and every step.

Adequate pricing to meet the demands of the customers.

Own distribution network.

Excellent relationships with the suppliers.

Outlets on key locations of the city.

The company will ensure that it will do as much as it can for the society in terms of charity.

Product assortment and placement.

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Weaknesses
The weaknesses, which the company has to focus on and get rid of them, are as under.

No paperless environment. The company needs to develop an integrated computerized system

to make things happen efficiently.

Non availability of a website.

Focus on only one city that is Lahore. We need to reach out to as much cities as we can to gain
more market share.

No treatment plant for industrial wastes.

Advertisement on electronic media is not that much aggressive as their competitors do. So we
need to focus this area in order to get to the maximum number of customers.

Less communication among various functional departments.

Employee politics.

Opportunities
The major opportunities for the company are as under.

External markets. The company can advertise and introduce its outlets in other cities of
Pakistan to gain more market share.

Growth by vertical integration.

i.

Backward Integration
By growing through backward integration we mean that we will become the
supplier of all the input materials.

New housing and industrial units. It is a big opportunity for the company to open outlets in the
new housing and industrial units.

Publicity through trade shows.

Threats
The major threats to the company are as under.

Competitors such as Nestle, Shezan & Malee in the field of beverages industry poses threat for
gourmet. All restaurants, all major dairy products manufacturers.

Law and order situation of the country.

Oil pricing in the country.

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Political instability.

Electricity shortage.

SWOT MATRIX COMPARISON OF SWOT ANALYSIS

Strength

Opportunities

Weakness

Threats

According to this concept strengths can be converted in to opportunities or weaknesses can be

converted in to threats or opportunities so in SWOT all the four factors like strengths, weaknesses,
opportunities & threats are interlinked.

MATCHING, CONVERTING, MINIMIZING & AVOIDING STRATEGIES:

Gourmets strengths like technology, best quality, reasonable prices and own distribution
network can be used to exploit opportunity of expanding business in other regions.
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 Our weakness of outdated information system for e.g having no websites can be
converted into strength by introducing latest information technology.

CURRENT STRATEGY
We can explain Gourmets current strategy on the basis of marketing mix:-

Product Strategy
Gourmet will offer variety of fruit juices to cater the needs of various market segments eg it will offer
fresh fruit juices by following new product strategy as MARKET NICHER.
Gourmet will also offer energy drinks (specially young people, sports man etc) and also sugar free
fruit drinks. Even it is offering various fruit juices in different packing like tetra pack (250 ML &
1.5ML), Bottle juices (500ML).

Pricing Strategy
The pricing strategy of Gourmet is market penetration. Prices of Gourmet fruit juices will be lower
than their competitors Price is certainly its competitive advantage for example it will offer 1 liter pack
juice with 15-20% less in price than its competitors e.g. Nestle1 liter juice (Guava/Pine apple/Orange
is Rs. 72 & Shezan is Rs.44 while gourmet is planning to offer juices in same packing but with less
price.

Promotion Strategy
Unlike competitors Gourmet is not using Main media. We will use point of sales promotion (POP),,
posters, broshuers, LCD TV, Sales promotion for consumer with push strategy for the promotion of
fruit juices. Although its strong private brand label that will be supportive in running its fruit juices
business.

Place/Distribution
With its four processing units and 73 sales outlets plus 3 outlets are under construction they try to
reach out to a huge population for their needs. So due to its reasonable number of outlets located at
various places (from low to middle class consumer markets) it can easily provide variety of its fruit
juices to the customers. Gourmet will also serve its drinks in its restaurant.
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Gourmet is following corporate virtual marketing system in which the retailer also own the
manufacturing and distribution channel.

Positioning
Positioning Map (BY PRICE/QUALITY)

High Price
Nestle, Coca Cola&Shezan

Haleeb

High Quality

Low Quality
.

Gourmet

Shezan

Low Price
Over a period of two decades gourmet has positioned its products as quality products in the minds of
the customers. GOURMET QUALITY GOURMET PRICES. The big success in the bakery products
has helped gourmet to position other business products such as restaurant and dairy products in an
effective manner and now this success will also support in positioning its fruit juices business
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CORPORATE CULTURE
The culture of Gourmet is certainly democratic where there is an open door communication between
employer & employees. This thing creates a feeling of self respect within the employees and motivates
them to work for growth of their organization.
One of the main objective is to facilitate customers by providing them with good service, good quality
building good relation ship and accommodating them in a best possible way.
To improve the capabilities of our employees we give training sessions to them at operational level to
make them understand how to deal with customers, helping them in making decision after knowing
their needs.
Our corporate culture involves in it a hygienic environment which is maintained every where i.e. from
manufacturing plant to outlets.
Gourmet top management highly care for their employees rights to grow more by getting high market
share because in their view growth of the company is directly proportional with the growth of
employees and behind all this practice they want to get the brand recognition globally.

FINANCIAL ANAYSIS
Gourmet has invested 600 million on its beverages plant. Their main financer/banker is Citibank. Apart
from investment they have total of 73 outlets out of which 5 outlets are on rental basis and 68 outlets
are owned by them. And from this huge investment they are expecting return on investment (ROI) from
10-15 %.
Our break even sales volume will be 6975 Ltrs/day in the first year and there after we will further
enhance it by 10% in proceeding years.

STRATEGIC ANALYSIS
Key Strategic Issues

Distribution Channel Ownership

Strong Private label brand (developed by whole seller and retailer) and this is the first private brand in
Pakistan among Bakers & Confectionaries that competes with national brands like nestle, coca cola with
their low price and high quality offerings.

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STRATEGIC TOOLS
Product Life Cycle

INTRODUCTION
(our present stage)

GROWTH

MATURITY

DECLINE

Our marketing objective is to create a product awareness and trial of it. As our product will be at
introductory stage in which we are expecting low sales because of huge competition that we have
already discussed in competitive analysis. We are offering fruit juices at low rates and expecting
negative profit in the very beginning but for the growth of our product we have made following
strategies of it.
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Initially we will offer a basic product means by keeping the available packages (pack size) to make the
customer familiar and easy to understand and absorb our product. We will make it available in our all
outlets. And will reshape our strategies according to PLC model.

BCG MATRIX

Growth Rate

gourmet
cash cow

Dog

Market Share
As we are launching fruit juices and we will try our level best to put it in category of STARS (by
getting high growth & high market share) of BCG matrix. In the beginning we have to bear heavy
capacity cost failing to achieve economies of scale. As per our market research we see a potential
growth in fruit juices due to change in behavior of consumers towards natural product (because of
health consciousness).

IDENTIFICATION OF STRATEGIC ALTERNATIVES

As we are following multi product strategy in which we are not only launching fruit juices but also
other items to sustain gourmet business and making brand extension along with other product lines that
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will act as an alternative to each other. For example first we launched gourmet milk, then gourmet
water and then gourmet cola, further gourmet fruit juices, gourmet squashes & gourmet powder milk
are included in our future projects. And these all products are related to beverages plant so they are
working as an alternative to one another and also playing a role in supporting company based business
i.e of bakery and confectionaries.

IDENTIFICTION AND ANALYSIS OF & CHOICE OF ALTERNATIVES

We have different alternatives to support our business or to minimize our loss.

Invest more

Wait & see

Harvesting

Start Divesting.

ARGUMENTS OF PREFERRED CHOICE

The preference will be made on the kind of situation we are in so accordingly we will take a decision.

STRATEGIC RECOMMENDATIONS
THREE YEARS FINAL OBJECTIVES
Our 3 years annual objectives include launching of multiple products regarding beverages i.e dairy
products (gourmet powdered milk, gourmet pasteurized milk, & gourmet fruit juices) that will support
each other sales. This will also result in increasing the turn over.

STRATEGIC INTENT
Our long term plan is to get maximum market share through cost leader ship. Gourmet will only place his own
products in their outlets in near future replacing products of other brands by manufacturing the same products
with their own brands.
The strategy behind launching fruit juices is to get maximum turn over. i.e Keeping customers stick to our brand
through cost leadership strategy.
Establishing outlets at national level.

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OPERATING PROGRAMMES TO ACHIEVE DIVERSITY

As we are consistent with existing Food product line that is in growth stage and will stay in the same
product line so we dont have any operating programmes to achieve diversity. Unless we do not capture
the whole market to its maximum level along with stability we will not go for it.

TRIGGER (CONTINGENCY PLAN)

This is a basically situational plan which we used to divest unproductive product and promote
profitable products. Currently they have a plan to launch fruit juices by entering in the market with
market penetration strategy that will prevent to enter new competitor and in case of entry of new
competitor they will further reduce the price by maintaining or keeping same good quality. So in this
way their contingency plan will be cyclical as per situation.
Our whole business is based on multiple product strategy so in case of any failure of one product the
other product will support the gourmet business.
Under prevailing economic crises there is probability of increase in production cost due to high
inflation rate and imposition of new taxes. Gourmet has planned to reduce cost by and backward
integration.

METHODOLOGY OF RESEARCH
We have no special marketing teams or R& D department. For the last ten years we were keeping the
sales record of the competitors which make us aware about significant changes in trends and responses
of customers and it helped us to forecast future sales and making effective strategic decisions. But now
we will establish marketing department along with R& D department. We will conduct surveys of
customers to find out there preferences about Gourmet products and analyze sales reports to identify
significant trends. The R&D department will be responsible to perform situational analysis.
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IMPLEMENTATION & CONTROL MATRIX

May 01, 2009 to May 01,2011

Time Frame

Control Measures

Product (Testing & Launch)

May 01, 09-Nov 01,2009

Survey current customer about

their likes and dislikes

Pricing (Maintain price)

Nov 01,2009- Nov 01, 2010

Verify if the market share is

increasing or not from monthly
sales report.

Office Automation

Feb 04, 2010

Employee training seminars

Verify
available

updated
with

systems

are

appropriate

software and evaluate the sales

force
Promotion

May-July, 2009

Survey to measure popularity

29

REFERENCES:
Websites:
www.shezan.com.k
www.nestle.com
www.haleebfoods.com
www.coca-cola.com

Names
Mr. Ali Surat

CCO Gourmet

Mr. Zubair

GM Gourmet Beverages Plant

Mr. Ali Ahmad

Manager Shop

Mr. Mazhar Hussain Manager Shop

30

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