Project Outline & Table of Contents

A) EXECUTIVE SUMMARY: EXECUTIVE SUMMARY BRIEF HISTORY VISION STATEMENT MISSION STATEMENT STRATEGIC GOALS B) SITUATION ANALYSIS: EXTERNAL ANALYSIS INDUSTRY ANALYSIS COMPETITIVE ANALYSIS MARKET ANALYSIS ENVIRONMENTAL ANALYSIS (PEST) INTERNAL ANALYSIS SWOT ANALYSIS CURRENT STRATEGY CORPRATE CULTURE C) STRATEGIC ANALYSIS KEY STRATEGIC ISSUES (SCA) IDENTIFICATION OF STRATEGIC ALTERNATIVE ANALYSIS OF AND CHOICE OF ALTERNATIVES ARGUMENTS FOR PREFERRED CHOICE D) STRATEGIC RECOMMENDATION FIVE YEAR ANNUAL OBJECTIVES 30 27 28 29 29 22 23 25 8 10 14 20 Page # 4 6 7 7 7

A) EXECUTIVE SUMMARY: Gourmet a name that needs no introduction at least for the people living in Lahore, with over 85 outlets throughout the city and still growing in numbers they are referred to as undisputed leader in Bakers and confectioners in Lahore. Keeping hold of their image in the bakers and confectioners field they also entered the beverage industry by first launching Mineral water giving Nestle a serious headache and then by launching carbonated drink successfully. The successful launch of gourmet’s carbonated drinks the industrial analysis showed that the trend for juices is on a high because of increase awareness of health consciousness among people. Taking this into account and cashing onto the repute that gourmet has established will surely going to help a lot. The competitive analysis identified that the intense competition within the industry as the industry has some humongous names in it (Pepsi, Coke, Nestle etc). Then applying Porter’s five forces to the Pakistani beverage industry gave us a view of the potential attractiveness in terms of profitability of the industry. By doing PEST analysis we learnt that although the political situation of the country is not very good but the GDP and per capita income has increased and raised demand of FMCG’s. Also awareness about health consciousness has increased a lot and people are accepting juices as a social drink rather than a child drink and there are no technological barriers to enter the industry as well. Then the SWOT analysis reflected that the industry is full of opportunities obviously with some weaknesses and threats but these using our current strengths these opportunities can also add up to our strengths and overcome our weaknesses. At the end the strategies for launching juices will be quite similar that were used while launching carbonated drinks. The juices

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will initially be launched only in flavors that are commonly accepted by the public (orange, apple, pineapple, mango and mixed fruit). Will be delivered to the customer in three different sizes 250ml, 500ml and 1liter and initially be sold only on gourmet outlets. Penetration pricing strategy will be used with different pricing methods. Competition base pricing strategy will be applied on 250ml juices for the other ranges cost plus strategy will be used to get hold of the market. Along with these strategies and the competitive advantages such as quality, price, distribution and brand image it seems to be a fruitful venture. But incase it doesn’t work out as planned a contingency plan is also there, in which the juices will be distributed to local retailers and general stores as people might be finding it inconvenient not to find it easily and visit to the outlet for purchasing a juice. Further high intense promotion will be done for causing awareness of nutritious diet. This will surely help in increasing sales. We also have future plans to launch these juices in other major cities of Pakistan and capture market share.

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and artistic presentation. Chathha the founder of Gourmet stared his business with 20 million rupees. Gourmet produces a wide variety of bakery items. Gourmet has introduced many new items in bakery products categories which were previously not in the market of Lahore. Gourmet food is characterized by high quality. Gourmet is an industry classification for high-quality premium foods in the United States. in the begging they did not get good response which resulted in shut down. and Gourmet did not look back since then.Brief History The word gourmet is from the French term. “Gourmet Bakers and Sweets” is the largest food retail chain of Lahore. accurate preparation. This name “gourmet” was suggested by his daughter who is living in America. 2 restaurants and 88 sales outlets. He is holding the position of Managing Director of the company. He again started in 1992 at different place at Muslim town. He was serving in Shezan Bakers as a General Manager and later on he decided to make his own bakery. outreaches to a huge population for their food needs. cuisine. Now with its 5 production units. meal or ingredient of high quality. sweets and dairy products and offers high quality services in their restaurants. or high sophistication. Mr. defined as "refined and uncontrolled love of good food". the second largest city of Pakistan known for its traditional foods and passion for eating. Muhammad Nawaz Chathha. It is based in Lahore. Gourmet stresses hard on quality and taste of their products and making them affordable for their customers at the best prices in the market. He started his business through getting employees from Shehzan bakers in the beginning. It was started with a single outlet in Ichra in 1987 by Mr. gourmet -4- . of special presentation. Gourmet may describe a class of restaurant.

they are reviewed every year in the annual meeting to make sure that they are in line with the changing environment. Therefore. Gourmet has become a success story of business growth in Pakistan.The company has shown an explosive annual growth of more than 25% till 2006 in its business since this unique business was started in 1992. • To project an outstanding product image by providing best quality in our products. after studying -5- . Mission statement: “Our mission is to provide quality products at lowest prices” Vision: “Leader of quality juice providers in the region by offering products enjoyed in every home. At the moment Gourmet has more than 4500 employees working in the organization. Recently gourmet shows 65% of annual growth in its business from 2006 to 2009. • After successful launching in Lahore we intent to grow our distribution network of juices in all major cities of Pakistan.” Strategic Goals: The strategic goals are considered when company is thinking of the long-term objectives. However. This will be achieved from the dedication of each employee in conjunction with supportive participation from management at all levels. With his commitment and strenuous effort to provide the consumers with best quality food products in a convenient and unmatched displaying manner. • Being an agriculture country there is sufficient demand for Pakistani juices in international market.

The present installed capacity is estimated around 800. Gujranwala. fruit juices and mineral water. The fruit juice industry reported sales of 11.international beverage market we’ll plan to introduce our product in international market. B) SITUATION ANALYSIS: External Analysis: Industry analysis: Different segments which come under beverage industry are: carbonated drinks. Bahawalpur. • To increase the market share from the preceding year. Sargodha. Hyderabad.000 metric tons per annum with a demand for juices growing at a combined annual growth rate of 31%. Currently in Pakistan. for the purpose of this study. NWFP and Karachi. we are confined to the fruit juice segment. 12 10 8 6 4 2 0 2004 2005 2006 2007 Annual Sale s of Juices in Pak istan Most of the fruit juice manufacturing units are operating in Lahore. there are 34 fruit juice/ pulp processing units and a number of small units in the informal sector are working. Hatter.32 billion Rupees in year 2007. The market can be categorized in terms of product content and there are three major product contents available: -6- .

In the early 80’s only 20% of the whole population had the knowledge of Natural flavor. Shezan and many others. with dominant consumption being observed in the company of family and friends. Traditionally. Slowly but surely packaged fruit juices are getting recognized as social drinks now.The canned juice market initially covered brands like Nestle. but these days the fruit juice manufacturers are focusing on young generation. From 1990 to 2000 media played western culture played an important role in the awareness of people and people started using the Juices. with consumption being spread more or less evenly between the mid mornings. The nutritive value of real fruit beverages is far greater than that of synthetic products. unattractive packaging and lack of right promotion program. -7- . Pulpy Minute Maid. These were fruit juices and nectars and not drinks. People have started to perceive fruit juices as anytime beverages. The companies working in this industry will have to organize various promotional activities from time to time mainly to educate the consumers about packaged fruit juice. that it is as pure and nutritious as fresh juice. which are being bottled and sold in large quantities throughout the country. and since then its juice market in increasing day by day right now there are only a few companies in Pakistan which has a great market value and are the best selling people. Nestle started its business in Pakistan in 1988. afternoons and evenings. Consumers are starting to perceive fruit juices at home in 1 liter packs. fruit drinks in Pakistan were aimed at children. But they did not make a mark in the market due to reasons such as high price.

As a result very quickly they were thrown out of the business. As for example the soft drink industry is dominated by the basic carbonated range of traditional giants Coca-Cola and PepsiCo.MAJOR PLAYERS: NAME Nestle Fresh Juices Shezan Indus Fruit Juices Tops Foods & Beverages Shaheen Foods Malik Food Industry Competitive Analysis: The beverage industry in Pakistan is highly competitive and is further divided into different segments 1. Fruit juice 4. Nestle being the leader is followed by the domestic players such as Shezan and Country Juices. A number of domestic players tried to get themselves into the industry but they relied totally on emotional selling of their products. Fruit juice industry in Pakistan is also highly saturated. Carbonated drink 2. Mineral Water Each segment has global players in it with history of success. Tea/coffee 3. Pepsi cola is the market leader of carbonated water in Pakistan. surely because of the big price difference gourmet is offering on its beverages. But the entry of Gourmet in soft drink industry has shown great signs and people are looking to buy gourmet’s soft drinks. As compared to the domestic players in soft drink NAME Fruit Sap Pakistan Fruit Juices Kamran Distributors Popular Food Industry Mitchells Benz Industries -8- .

Kinley but the introduction of gourmet water has given a serious headache to all these players. One of the biggest problems that the people of Pakistan are facing today is the absence of clean drinking water. Aquafina. -9- . Being necessity of life and its absence made many firms work their way in supplying distilled water.industry that tried to emotionally attach the consumers with their products these firms have survived on the basis of their quality. As a result many water supplying firms came into existence. They key names include Nestle. Sufi.

• Cola • • • • Carbonated water Pepsi 7-up Miranda Diet Pepsi Diet 7-up Mountain Dew Coca Cola Fanta Sprite Diet Coke Sprite Zero Fruit juices Tropicana Juices • Orange • Apple • grapefruit Mineral water Aquafina Energy drink Flavored milk Kinley Nestle Juices • Apple • Orange • Grape • others Pure life Milo Red Bull Red Bull Others • • • • • • RC cola Pakola Amrat Cola Mecca Cola Zam Zam cola Shandy • • • • • • • • • • Shezan Maza Kwikool Tops Tang Sunsip Rooh Afza Malee Mitchells Squash Jam-e-shereen • • • • Aquasafe Sufi Masafi Eagle • • Blue Ox Energile Ovaltine Horlicks .10 - .Product category Pepsi Nestle Milk Pak • • • • • • Coca.

ii. . iv. ii. Buyer power in terms of volume buying is not high. Nature has blessed Pakistan with an ideal climate for a wide range of delicious fruits. So there will be no such thing as supplier monopoly. The switching cost from one product to another is almost nonexistent which empowers the buyer. Luckily there are no barriers to enter the market on part of the government. Buying behavior is inclined more towards price sensitivity rather than quality or brand loyalty. ii. as we are not dealing with something that’s supplied by only a couple of people. because a buyer having a good or bad experience will immediately share it with others and may affect other buyers behavior. There might be some degree of differentiation of the inputs as fruits from different territories have a bit different taste. iii. But in terms of his or her experience. Buyer power: i. Barriers to entry: i. The industry is easy to enter as the technology is not a very complicated one and the assets are not very specialized ones.11 - . The number of substitutes is so much high that any mistake in distribution will make buyer to use other product to fulfill its need.Porter’s forces of competition: Supplier power: i.

Because of highly competitive industry there is no switching cost of buyer from one product to another. The buying behavior of customers is more sort of price depended rather than taste. iii. A large number of substitutes are available in beverage industry. Pepsi. mineral water and juices no of large. As the beverage industry itself is very vast for instance soft drinks. Considering that the behavior of general consumer is price driven therefore it also encourages others to enter the market. iii. Big brands such as Coca-cola. Degree of rivalry: i. Intensity of rivalry in beverage industry is very high. are competing in this industry. Threat of substitutes: i.Karachi Urban. Nestle. Semi urban Hot and Dry . Most of the brands in competition are world recognized giants. ii.iii. Shezan. hot drinks.12 Data direct and indirect competitors is also . ii. Country etc. Market analysis: I) Segmentation: Segmentation Variables Geographic Country Cities Density Climate Pakistan Lahore.Islamabad.

it could be used in breakfast.13 Regular Usage Quality. Taste & Nutrition First time user Awareness Middle class. Unmarried Rs. Upper class. With high health consciousness among the people these days it has become any time product. To fulfill this need we will be offering pure juices to the market.Demographic Age Marital Status Income Psychographics Social class Behavioral: Occasions Regular Benefits User Status Readiness Stage Positioning Gourmet will position itself as a no – compromise drink where a person does not have to make any compromise with the fun element of having the refresher and the health element and that it is also socially appreciated/ accepted. 10. People have quite a number of options when it comes to quench the thirst pure water. 10 and above Married. Juices are considered to be nutritious and good for health. carbonated drinks and juices. 000 or above . evening any time as it doesn’t have any bad affect on the health. II) MARKETING MIX Product: We’ll be adding up to the number of product line’s Gourmet is currently offering by introducing Gourmet juices. noon. Gourmet juices will be launched in three different sizes .

Orange. The juices will be launched in the flavors that are very well accepted by the market i. Currently we are offering: • • • • • MANGO APPLE ORANGE PINEAPPLE MIX FRUITS . But for the sake of differentiating our juices from the rest we’ll be offering them at comparatively lower prices than our competitors. So the length that will be offered in this product line will be five. and the depth will be three. Launching juices will be following a product overlap strategy as gourmet is already serving in mineral water and carbonated water product line and introducing another product line that fulfils the same utility (thirst quenching) will provide indirect competition to those line ups and will be affecting their sales. But all is done to achieve increase market share and in crease growth.14 - .e. The reason for offering the product in three different packaging is to target different segments of the market e. 500 ml and 1 liter. Mix fruits. referring to the different flavors that we’ll be offering. Mango.250 ml. The 250ml and 1 liter juices will be presented in tetra packaging where the 500 ml juice will be delivered in pet bottles. While offering juices of very common flavors there is nothing much to offer something different. referring to the different sizes in which the product will be offered. Apple. households.g. children and youngsters. The packing will have the picture of the particular fruit and Gourmet label and it will be called Gourmet Juice. Pineapple.

5% 4% 66% 8% .Nutrition Facts: Serving Size 250 ML Servings per Container: 1 Vitamin A Calcium Thiamin Niacin Foliate Price: Price is a very important part of the marketing mix as it can affect both the supply and demand for any product. For this reason pricing policies need to be designed with consumers and external influences in mind. Under this strategy we’ll be using two pricing methods Cost plus pricing and Competition based. Businesses have to set a price that is attractive to their customers and provides the business with a good level of profit. as long as most things are fairly similar. Competition base pricing will be used for 250ml juices as the competitors are already selling it at a very low price and pricing our juices higher than their prices will not attract the customers and placing it lower will be of . Even in the past while launching Gourmet Cola they opted for Penetration pricing to get hold of some of the market share and even now while launching juices penetration pricing will be used.15 0% 2% 10% 4% 20% Vitamin C Iron Riboflavin Vitamin B Magnesium 80% 1. The price of Gourmet’s beverages is one of the most important factors in a customer’s decision to buy. in order to effectively achieve a stable balance between sales and covering the production costs. Price will often be the difference that will push a customer to buy our product over another. Price strategies are important to Gourmet because the price determines the amount of sales and profit per unit sold.

But now they have more than 90 outlets in Lahore which cover almost every part of Lahore so people use to travel a little far to have Gourmet soft drinks. Coca Cola.16 - . nestle. as the choice will determine sales levels and costs.no use as there is not a big profit margin in that size. While for the other sizes we’ll be using cost plus strategy to penetrate into the market. 24 Rs. Placing the Gourmet beverages to other general stores as well will definitely result in increased sales and more market share. shezan etc. these include: • • • • How far away the customers are The type of product being transported The lead times required The costs associated with transport 36 Packs/ Shrink-wrapped tray 24 Packs/ Shrink-wrapped tray 12 Bottles or Tetra Packs/ Carton Rs. 45 There is one problem that you can’t find Gourmet beverages from any shop like its competing brands (Pepsi. The choice for a distribution channel for any business depends on numerous factors. 12 Rs. Even that was not enough so gourmet beverages are also available now on the general stores located nearby. The prices will be as follows 250 ml 500 ml 1000 ml Shipping Units 250 ml 500 ml 1000 ml Place Selecting the most appropriate distribution channel is important. You can find these brands from any general store where as Gourmet soft drinks are only available in their own outlets.) are found. .

The promotions will be kept low profile. how good your product is and where they can buy it. Because most of the target is most likely to be exposed to media such as television. Effective communication with the target market is essential for the success of the product and business. radio and magazines. The promotions will be intended to increase awareness of health consciousness among people. The promotional mix is the combination of personal selling. and billboards and in newspapers and magazines. Above all promotions refers to mainstream media: Advertising through common media such as television. Promotion is also used to persuade the customers to try a new product. advertising. the juices will only be sold at their own outlets and electronic media will be used for the promotional activities as it is the most powerful source of information in Pakistan now days. having the right product at the right place at the right time may still not be enough to be successful.17 - .Promotion: In today’s competitive environment. sales promotion and public relations that it uses in its marketing plan. Gourmet has not carried out promotional activities for its products until the launch of its beverages to ordinary retailers. Environmental Analysis: PEST Analysis: . The simple reason for that was they used to sell their products only on their own outlets but after the increased demand of their gourmet colas they started to distribute it to other shops as well apart from their own outlets. radio. transport. Promotion is the p of the marketing mix designed to inform the marketplace about who you are. And same approach will be used with the gourmet juices as well. or buy more of an old product.

with prices sky rocketing. They also have to comply with federal. Economic analysis Despite inhospitable domestic and international environment resulting from the either the global recession or due to the terrorism acts. The businesses are subject to the Government stability in the countries as the businesses are directly subjected to the taxation policy of the country they are operating. fuel is a very important subject. increase in per capita income and increase in IT development as well which are positive signs for the industry but there are some negativities as well.Political analysis Political scenario in Pakistan has seen many important changes in recent years. Pakistan’s economy grew by 2 percent in the financial year 2008-09 according to Economic survey 2008-09. such as the Food and Drug Act. so they are subject to the fuel prices. like corn. – Gourmet also relies heavily on trucks to move and distribute many of their products. . Such economic factors have resounding impact on such industries and increase the cost of goods. The political environment directly influences all the industries working in the country. there has been a crisis in the production of sugar in Pakistan. state and local environmental laws and regulations. Moreover.18 - . Reports have shown increase in GDP. Like all the other companies are subject to the harvest of the raw material that they use in their soft drink and juice. vegetables etc. oranges. Similarly the production distribution and use of Gourmet’s products are subject to some federal laws. grapefruit. Another crisis that Pakistan is dealing is the shortage of electricity.

Technological analysis Pakistan is considered as developing country. or the software industry. inventory management. The age distribution of Pakistan is also very balanced. Technology plays a secondary role in this industry. Gourmet beverages and moreover Juices are subject to the lifestyle changes as the awareness of health consciousness is rising in the people now.Socio-culture analysis The population of Pakistan is on the rise where as the health consciousness among the people is also a lot more than it has been in the past.19 - . Even though one have to take into account that specialized factors involve a heavy and . It has to pay attention to the new distribution techniques as well. major portion of its population consists of youth. Because beverage products are non-tech based in nature. Further Income of people is increasing more trends towards FMCG. Gourmet has to pay a special attention on the lifestyle changes. Although it is a nuclear power yet it lacks behind in other technologies. Further a major social trend in the rural areas of Pakistan has been a shift from presenting guests with drinks such as lassi towards such beverages. as it is not heavily dependant on technological advancements like the consumer electronics industry. technology in this industry is therefore limited to function as a catalyst to improve production capacities. All these situations are calling for new and new opportunities and investors. speed of product manufacturing cycles. Socioculture impacts hugely such industries where the carbonated water industry has ruled but now the trend of health consciousness is taking place which give a positive signs for entering juice industry.

20 - .sustained investment. but also at the same time if one is able to achieve them. . he could generate competitive advantage.

Increasing population Increasing per capita income Increase in demand of FMCG Health consciousness Technological progress Changing lifestyle Increased demand in rural industry Increased demand in pure juices Small number of pure juice producers High cost of production Limited distribution network No participation in social development Advertisement is weak The Name of the company Established distribution network Repute for producing quality products For all times and for all ages Outlets recognized for its good environment No complains on the quality Strong financial backup . vi. Opportunities i. ii. iii. iv. iii. ix. Weakness i. vi. iii. ii. v. viii. v. iv. ii. vii.21 - .INTERNAL ANALYSIS SWOT Analysis Strengths i. iv. vii.

Further because of the intense competition we’ll be facing high Elasticity of Demand. CURRENT STRATEGY: Firstly we are offering a consumer base product. viii. xii. xi. v. secondly the product belongs to a very competitive industry the beverage industry. iii. In it we have a number of direct competitors as well as indirect competitors ranging from multinational firms to domestic firms with history of success behind them. Shezan etc requires more . vi. iv. Nestle. xiii. Introducing new taste ranges More segments can be targeted Exports can be made By increasing advertisement and creating awareness sales will increase situation not up to mark Political ups and downs Increase in foreign imports of beverages Rising Inflation Strong campaigns from competitors This product is seasonal Law and order Less awareness of health Main competitors are international giants of industry Rising prices of sugar and sugar substitutes vii.22 - . Because of the extreme intensity of competition in beverage industry we’ll be entering the industry with demand lead strategy. ix.x. Getting into the market and surviving there with the names such as Pepsi. While delivering a product a manufacturer can opt for either of the two strategies Supply lead strategy or Demand lead strategy. Threats i. ii. Coke.

Other reason is their outlets. 60. Mostly Gourmet drinks are used in 1. Everyone knows that their taste is not as good as international brands are giving but their prices are low. as long as most things are fairly similar. Getting into industry of highly intense competition will also require us to be very rational with the pricing strategies as price higher than our competitors and customer will not be inclined towards buying our juices. Orange. So our strategy for launching juices will be quite similar as we’ll be differentiating our product on basis of price from our direct competitors such as Nestle. Price will be the difference that will push a customer to buy our product over another. Maka Cola etc would’ve never diminished. We’ll be launching juices in the most commonly accepted flavors like Apple. children. households and youth. 45 and other big brands are of Rs. Shezan etc.e. Pineapple and Mixed Fruit in three different packaging to get hold of different segments of consumer market i.than just quality.5 liter which is of Rs. The increase in sales of Gourmet soft drinks is not because of their superior taste. because the name Gourmet is recognized for its quality products in the minds of people of Lahore. Generally people like Gourmet outlets environment and believe that products are of good quality. . Similarly lesser prices are not the only factor contributing to the sale increase of their soft drinks.23 - . which are very neat & clean and give a high quality look. Moreover the success of Gourmet cola has revealed the trend that the consumer marker is price driven. if only that would’ve been the case the other domestic players like Amrat cola. Mango. The 250 ml juices will be sold on the same prices as the others in the market are currently selling as there is not enough profit margin that we can reduce and we’ll be using competition base pricing for this range of juices whereas for other sizes we’ll use cost plus pricing to penetrate into the market.

these core values keep evolving. and as times change.CORPORATE CULTURE: Gourmet’s Corporate Culture possesses an autocratic style as all the major decisions are made by the management without considerable consultancy of employees. . The work environment is dynamic and friendly. The manager is used to give instructions. Gourmet is one of largest group of food chain in Lahore and thus endless potential to learn and to grow. Rizwan Chaudhry. Gourmet’s corporate culture based on a set of fundamental principles and values. Zubair and Syed Ali Raza Naqvi) are the only persons contributing to the decision making process in the business. These are: • • • • • • High commitment to quality food Respect of other cultures and traditions Commitment to strong work ethic Personal relations based on trust and mutual respect Being committed to work and quality Preferring the long-term perspective to short-term thinking They're proud of these traditions and heritage. They tell employees what to do instead of asking for their opinion on the matter in hand.24 - . They have a small and casual team. The managers (Mr. but very professional about their duties. never a dull moment at Gourmet.

ORGANIZATIONAL/ HIERARCHY CHART OF GOURMET: Director G.M Production G.M Market Assistant General Manager Area Managers Branch Supervisor Complaint Manager/ Auditor Purchase Manager Assistant Branch Supervisor Purchaser Store Supervisor Salesman Gate Keeper .25 - .

26 - . For delivering Cola to other retailers they have hired third the services of party logistics which ensures efficient and on-time delivery of products. which has been improving and growing over time due to the reason that they are providing highest quality products at the best prices in the market. . This has been a key reason for the rapid growth of their sales revenues and demand for their products. Freshness Gourmet is very focused at ensuring the freshness of the products that are provided to their customers because this is one major issue when it comes to the food items category. Prices Gourmet Bakers offer the best prices in the market which is a prime competitive advantage for them. Their brand image has been further supplemented due to the fact that they ensure standardization of products and uniformity of prices throughout their 88 outlets.C) STRATEGIC ANALYSIS Key Strategic Issues: Gourmet Baker’s core competency and competitive advantage can be classified as following: Quality Gourmet Bakers strive very hard to deliver the best quality products to their consumers and stress heavily on quality control both in their production areas and outlets. Brand image One major growing advantage for Gourmet is their brand image. As there are over 88 outlets in Lahore and the distribution to all those outlets is carried out through their personally owned distribution. Distribution They have a well developed distribution network.

Therefore we’d have more than one strategy that can be used as backup strategy if in case our prior strategy failed to get the desired results.27 - . Gourmet instead stepped into the beverage business with this strategy placing its cola at such a lower price that the people considered it worth a try and with the renowned name of Gourmet for its quality products it worked for them. The alternate marketing strategy will seek to first create customer awareness regarding product. Gourmet Juices will seek to communicate the message that it is the natural and healthy juice in the market and will help them in not compromising on health. This message will be communicated through a variety of methods with the communication tools/ promotional mix. That’s why any good marketer will develop an alternate strategy for such reasons. The same strategy would be applied while launching juices.IDENTIFICATION OF STRATEGIC ALTERNATIVE: While launching a product there is no single strategy that can guarantee the success of your product. develop the customer base and work towards building customer loyalty. Because this was one aspect of the marketing mix that was not fully utilized to its full potential even while launching cola’s but luckily it succeeded but in case of juices this alternate strategy will be used. . is that the prices are lowered to get the people to atleast try the product for once. The ads and the promotional activities will be concentrating only on the cities in which Gourmet Juices are served hence the main weightage will be given to the local media. that is used when a product is finding it really hard to get attention of customers. The last tactic. Incase it doesn’t produce the desired results that it produced with their cola’s something different will have to be done. Investments will be made to create this awareness among the people.

Gourmet Bakers have used this strategy with Cola’s as well. If the product even doesn’t click the market then there are not many options available than to quit. This will provide convenience to customer and convenience is what the customer is looking for. Everyday thousands of people visit their outlets which is serving the purpose of promotion for them. The second alternative will be make the juices available to common retail stores as gourmet has only 88 outlets that might not cover the entire Lahore city which is on the grow. But because of the strong financial back bone of Gourmet we can withstand such situation for some time and work on intensive promotion to create more and more awareness of health consciousness. ARGUMENTS FOR PREFERRED CHOICE The reason for selecting the current strategy is that using the same strategy gourmet launched its Cola’s and they are a success. because Gourmet doesn’t need high promotion for its new product when launching it only in Lahore. the substitutes of which are easily available at any retail store. Because what advertisement does it converts wants into needs and can help in improving sales. As some people may find it inconvenient to travel to gourmet outlets for making purchase of juices. And intensive promotion is kept as a backup that if incase it fails to . for increasing the sales but in case of Gourmet the prices are already very cheap.28 - .At start we would provide these juices in gourmet outlets and for getting the desired results and to provide our product within an easy access to our precious customers we’ll placing juices at most of retail shops. ANALYSIS OF AND CHOICE OF ALTERNATIVES As mentioned before reducing the price of the product is the last tactic that marketers opt. Using the same strategy is expected to deliver very similar results.

 To satisfy the customer through extra ordinary service and an excellent service along with the complete tactical and operational support. FIVE YEAR ANUAL OBJECTIVES These are:  To continue to be an organization providing the quality products to the valuable customers.  To build an image of Gourmet juices in International Market.  To project an outstanding corporate image.  To provide our product in all major cities of Pakistan and within access of every targeted valuable consumer.  To capture 50% of beverage market in Lahore. .29 - .produce the desired results extensive promotion will be carried out to create awareness about the product.

pakistanmba.scribd.com http://www.scribd.jimdo.30 - .REFERENCES: http://en.com/doc/GOURMET-Bakers-Lahore-Project http://www.com/doc/24043888/Nestle-Pakistan .org/wiki/porter_five_analysis http://www.wikipedia.

31 - .Marketing Project SUBMITTED TO: MADEM FAZAILA TEAM MEMBERS: SEHRISH INAYAT SARWAR KAMAL RIZWAN SAEED TAHIR AYUB (090016) (090015) (090012) (090006) ABDUR REHMAN (090001) .

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