Project Outline

&
Table of Contents
A) EXECUTIVE SUMMARY:

Page #

EXECUTIVE SUMMARY

BRIEF HISTORY

VISION STATEMENT

MISSION STATEMENT

STRATEGIC GOALS

B) SITUATION ANALYSIS:
EXTERNAL ANALYSIS
INDUSTRY ANALYSIS

COMPETITIVE ANALYSIS

10

MARKET ANALYSIS

14

ENVIRONMENTAL ANALYSIS (PEST)

20

INTERNAL ANALYSIS
SWOT ANALYSIS

22

CURRENT STRATEGY

23

CORPRATE CULTURE

25

C) STRATEGIC ANALYSIS
KEY STRATEGIC ISSUES (SCA)

27

IDENTIFICATION OF STRATEGIC ALTERNATIVE

28

ANALYSIS OF AND CHOICE OF ALTERNATIVES

29

ARGUMENTS FOR PREFERRED CHOICE

29

D) STRATEGIC RECOMMENDATION
FIVE YEAR ANNUAL OBJECTIVES

30

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 gourmets 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
Porters 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 FMCGs. 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
will initially be launched only in flavors that are commonly accepted by

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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 doesnt 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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Brief History
The word gourmet is from the French term, defined as "refined and
uncontrolled love of good food". Gourmet is an industry classification
for high-quality premium foods in the United States. Gourmet may
describe a class of restaurant, cuisine, meal or ingredient of high
quality, of special presentation, or high sophistication. Gourmet food is
characterized by high quality, accurate preparation, and artistic
presentation. This name gourmet was suggested by his daughter
who is living in America.
Gourmet Bakers and Sweets is the largest food retail chain of
Lahore. It is based in Lahore, the second largest city of Pakistan
known for its traditional foods and passion for eating. It was started
with a single outlet in Ichra in 1987 by Mr. Muhammad Nawaz
Chathha, in the begging they did not get good response which resulted
in shut down. He again started in 1992 at different place at Muslim
town, and Gourmet did not look back since then.

Now with its 5

production units, 2 restaurants and 88 sales outlets, gourmet

outreaches to a huge population for their food needs.
Mr. Chathha the founder of Gourmet stared his business with 20
million rupees. He is holding the position of Managing Director of the
company. He was serving in Shezan Bakers as a General Manager and
later on he decided to make his own bakery. He started his business
through getting employees from Shehzan bakers in the beginning.
Gourmet produces a wide variety of bakery items, sweets and dairy
products and offers high quality services in their restaurants. Gourmet
has introduced many new items in bakery products categories which
were previously not in the market of 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.

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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. Recently gourmet shows 65% of annual growth in its business
from 2006 to 2009. 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 the moment Gourmet has
more than 4500 employees working in the organization.
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. This will be achieved from the dedication of
each employee in conjunction with supportive participation from
management at all levels.
Strategic Goals:
The strategic goals are considered when company is thinking of the
long-term objectives. However, they are reviewed every year in the
annual meeting to make sure that they are in line with the changing
environment.
To project an outstanding product image by providing best
quality in our products.
After successful launching in Lahore we intent to grow our
distribution network of juices in all major cities of Pakistan.
Being an agriculture country there is sufficient demand for
Pakistani juices in international market. Therefore, after studying

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international beverage market well plan to introduce our product

in international market.
To increase the market share from the preceding year.
B) SITUATION ANALYSIS:
External Analysis:
Industry analysis:
Different

segments

which

come

under

beverage

industry

are:

carbonated drinks, fruit juices and mineral water; for the purpose of
this study, we are confined to the fruit juice segment.
Currently in Pakistan, there are 34 fruit juice/ pulp processing units
and a number of small units in the informal sector are working. The
present installed capacity is estimated around 800,000 metric tons per
annum with a demand for juices growing at a combined annual growth
rate of 31%. The fruit juice industry reported sales of 11.32 billion
Rupees in year 2007.

Most of the fruit juice manufacturing units are operating in Lahore,

Sargodha, Bahawalpur, Hyderabad, Gujranwala, Hatter, NWFP and
Karachi.
The market can be categorized in terms of product content and there
are three major product contents available:

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

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MAJOR PLAYERS:
NAME
Nestle
Fresh Juices
Shezan
Indus Fruit Juices
Tops Foods & Beverages
Shaheen Foods
Malik Food Industry

NAME
Fruit Sap
Pakistan Fruit Juices
Kamran Distributors
Popular Food Industry
Mitchells
Benz Industries

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

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industry that tried to emotionally attach the consumers with their

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

Product category
Pepsi

Coca-
Cola

Nestle
Milk
Pak

Carbonated
water
Pepsi
7-up
Miranda
Diet Pepsi

Fruit juices
Tropicana Juices
Orange

Mineral water
Aquafina

Energy drink

Flavored
milk

Apple
grapefruit

Diet 7-up
Mountain Dew
Kinley

Coca Cola
Fanta
Sprite
Diet Coke
Sprite Zero
Nestle Juices
Apple

Orange
Grape
others

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Pure life

Milo

Red
Bull

Others

Red Bull

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

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Aquasafe
Sufi
Masafi
Eagle

Blue Ox
Energile

Ovaltine
Horlicks

Porters forces of competition:

Supplier power:
i.

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, as we are not
dealing with something thats supplied by only a
couple of people.

ii.

There might be some degree of differentiation of the

inputs as fruits from different territories have a bit
different taste.

Buyer power:
i.

Buyer power in terms of volume buying is not high.

But in terms of his or her experience, because a
buyer

having

good

or

bad

experience

will

immediately share it with others and may affect

other buyers behavior.
ii.

The switching cost from one product to another is

almost nonexistent which empowers the buyer.

iii.

The number of substitutes is so much high that any

mistake in distribution will make buyer to use other
product to fulfill its need.

iv.

Buying behavior is inclined more towards price

sensitivity rather than quality or brand loyalty.

Barriers to entry:
i.

Luckily there are no barriers to enter the market on

part of the government.

ii.

The industry is easy to enter as the technology is not

a very complicated one and the assets are not very
specialized ones.

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iii.

Considering that the behavior of general consumer is

price driven therefore it also encourages others to
enter the market.

Threat of substitutes:
i.

A large number of substitutes are available in

beverage industry.

ii.

Because of highly competitive industry there is no

switching cost of buyer from one product to another.

iii.

The buying behavior of customers is more sort of

price depended rather than taste.

Degree of rivalry:
i.

Intensity of rivalry in beverage industry is very high.

Big brands such as Coca-cola, Pepsi, Nestle, Shezan,
Country etc. are competing in this industry.

ii.

As the beverage industry itself is very vast for

instance soft drinks, hot drinks, mineral water and
juices no of

direct and indirect competitors is also

large.
iii.

Most

of

the

brands

in

competition

are

recognized giants.
Market analysis:
I) Segmentation:
Segmentation Variables

Data

Geographic
Country

Pakistan

Cities

Lahore,Islamabad,Karachi

Density

Urban, Semi urban

Climate

Hot and Dry

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world

Demographic
Age

10 and above

Marital Status

Married, Unmarried

Income

Rs. 10, 000 or above

Psychographics
Social class

Middle class, Upper class.

Behavioral:
Occasions

Regular Usage

Regular Benefits

Quality, Taste & Nutrition

User Status

First time user

Readiness Stage

Awareness

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.
II) MARKETING MIX
Product:
Well be adding up to the number of product lines Gourmet is currently
offering by introducing Gourmet juices. People have quite a number of
options when it comes to quench the thirst pure water, carbonated
drinks and juices. To fulfill this need we will be offering pure juices to
the market. Juices are considered to be nutritious and good for health.
With high health consciousness among the people these days it has
become any time product, it could be used in breakfast, noon, evening
any time as it doesnt

have any bad affect on the health. Gourmet

juices will be launched in three different sizes 250 ml, 500 ml and 1
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liter. The 250ml and 1 liter juices will be presented in tetra packaging
where the 500 ml juice will be delivered in pet bottles. The reason for
offering the product in three different packaging is to target different
segments of the market e.g. households, children and youngsters. The
juices will be launched in the flavors that are very well accepted by the
market i.e. Mango, Apple, Orange, Pineapple, Mix fruits. The packing
will have the picture of the particular fruit and Gourmet label and it will
be called Gourmet Juice. While offering juices of very common flavors
there is nothing much to offer something different. But for the sake of
differentiating our juices from the rest well be offering them at
comparatively lower prices than our competitors. So the length that
will be offered in this product line will be five, referring to the different
flavors that well be offering, and the depth will be three, referring to
the different sizes in which the product will be offered. 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.
Currently we are offering:

MANGO

APPLE

ORANGE

PINEAPPLE

MIX FRUITS

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Nutrition Facts:
Serving Size 250 ML
Servings per Container: 1
Vitamin A

0%

Vitamin C

80%

Calcium

2%

Iron

Thiamin

10%

Riboflavin

4%

Niacin

4%

Vitamin B

66%

Foliate

20%

1.5%

Magnesium

8%

Price:
Price is a very important part of the marketing mix as it can affect
both the supply and demand for any product. The price of Gourmets
beverages is one of the most important factors in a customers
decision to buy. Price will often be the difference that will push a
customer to buy our product over another, as long as most things are
fairly similar. For this reason pricing policies need to be designed with
consumers and external influences in mind, in order to effectively
achieve a stable balance between sales and covering the production
costs.
Price

strategies

are

important

to

Gourmet

because

the

price

determines the amount of sales and profit per unit sold. Businesses
have to set a price that is attractive to their customers and provides
the business with a good level of profit. 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. Under this strategy well be using two
pricing methods Cost plus pricing and Competition based. 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
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no use as there is not a big profit margin in that size. While for the
other sizes well be using cost plus strategy to penetrate into the
market. The prices will be as follows
250 ml
500 ml
1000 ml

Rs. 12
Rs. 24
Rs. 45

Shipping Units
250 ml
500 ml
1000 ml

36 Packs/ Shrink-wrapped tray

24 Packs/ Shrink-wrapped tray
12 Bottles or Tetra Packs/ Carton

Place
Selecting the most appropriate distribution channel is important, as
the choice will determine sales levels and costs. The choice for a
distribution channel for any business depends on numerous factors,
these include:

How far away the customers are

The type of product being transported

The lead times required

The costs associated with transport

There is one problem that you cant find Gourmet beverages from any
shop like its competing brands (Pepsi, Coca Cola, nestle, shezan etc.)
are found. You can find these brands from any general store where as
Gourmet soft drinks are only available in their own outlets. 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. Even that was not enough so gourmet beverages are also
available now on the general stores located nearby. Placing the
Gourmet beverages to other general stores as well will definitely result
in increased sales and more market share.

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Promotion:
In todays competitive environment, having the right product at the
right place at the right time may still not be enough to be successful.
Effective communication with the target market is essential for the
success of the product and business. Promotion is the p of the
marketing mix designed to inform the marketplace about who you are,
how good your product is and where they can buy it. Promotion is also
used to persuade the customers to try a new product, or buy more of
an old product. The promotional mix is the combination of personal
selling, advertising, sales promotion and public relations that it uses in
its marketing plan. Above all promotions refers to mainstream media:
Advertising

through

common

media

such

as

television,

radio,

transport, and billboards and in newspapers and magazines. Because

most of the target is most likely to be exposed to media such as
television, radio and magazines, Gourmet has not carried out
promotional activities for its products until the launch of its beverages
to ordinary retailers. 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. And same approach will be
used with the gourmet juices as well, 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. The promotions will be intended to increase awareness of
health consciousness among people. The promotions will be kept low
profile.
Environmental Analysis:
PEST Analysis:

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Political analysis
Political scenario in Pakistan has seen many important changes in
recent years. The political environment directly influences all the
industries working in the country. Similarly the production distribution
and use of Gourmets products are subject to some federal laws, such
as the Food and Drug Act. 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.
They also have to comply with federal, state and local environmental
laws and regulations.
Economic analysis
Despite inhospitable domestic and international environment resulting
from the either the global recession or due to the terrorism acts,
Pakistans economy grew by 2 percent in the financial year 2008-09
according to Economic survey 2008-09. Reports have shown increase
in GDP, 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. Like all the other companies are subject to the
harvest of the raw material that they use in their soft drink and juice,
like corn, oranges, grapefruit, vegetables etc. Gourmet also relies
heavily on trucks to move and distribute many of their products, fuel is
a very

important subject, so they are subject to the fuel prices.

Moreover, there has been a crisis in the production of sugar in

Pakistan, with prices sky rocketing. Another crisis that Pakistan is
dealing is the shortage of electricity. Such economic factors have
resounding impact on such industries and increase the cost of goods.

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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. The age distribution of Pakistan is also very balanced, major
portion of its population consists of youth. Gourmet beverages and
moreover Juices are subject to the lifestyle changes as the awareness
of health consciousness is rising in the people now. 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. Gourmet has to
pay a special attention on the lifestyle changes. Further Income of
people is increasing more trends towards FMCG. 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. All these
situations are calling for new and new opportunities and investors.
Technological analysis
Pakistan is considered as developing country. Although it is a nuclear
power yet it lacks behind in other technologies. Technology plays a
secondary role in this industry, as it is not heavily dependant on
technological advancements like the consumer electronics industry, or
the software industry. Because beverage products are non-tech based
in nature, technology in this industry is therefore limited to function as
a

catalyst

to

improve

production

capacities,

speed

of product

manufacturing cycles, inventory management. It has to pay attention

to the new distribution techniques as well. Even though one have to
take into account that specialized factors involve a heavy and

- 19 -

sustained investment, but also at the same time if one is able to

achieve them, he could generate competitive advantage.

- 20 -

INTERNAL ANALYSIS
SWOT Analysis
Strengths
i.

The Name of the company

ii.

Established distribution network

iii.

Repute for producing quality products

iv.

For all times and for all ages

v.

Outlets recognized for its good environment

vi.
vii.

No complains on the quality

Strong financial backup

i.

High cost of production

ii.

Limited distribution network

iii.

No participation in social development

iv.

Advertisement is weak

Weakness

Opportunities
i.

Increasing population

ii.

Increasing per capita income

iii.

Increase in demand of FMCG

iv.

Health consciousness

v.

Technological progress

vi.

Changing lifestyle

vii.

Increased demand in rural industry

viii.

Increased demand in pure juices

ix.

Small number of pure juice producers

x.

Introducing new taste ranges

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xi.

More segments can be targeted

xii.

Exports can be made

xiii.

By increasing advertisement and creating awareness

sales will increase

Threats
i.

situation not up to mark

ii.

Political ups and downs

iii.

Increase in foreign imports of beverages

iv.

Rising Inflation

v.

Strong campaigns from competitors

vi.

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.
viii.
ix.

CURRENT STRATEGY:
Firstly we are offering a consumer base product, secondly the product
belongs to a very competitive industry the beverage industry. 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. While delivering a product a manufacturer can
opt for either of the two strategies Supply lead strategy or Demand
lead strategy. Because of the extreme intensity of competition in
beverage industry well be entering the industry with demand lead
strategy. Further because of the intense competition well be facing
high Elasticity of Demand. Getting into the market and surviving there
with the names such as Pepsi, Coke, Nestle, Shezan etc requires more
than just quality. Moreover the success of Gourmet cola has revealed
the trend that the consumer marker is price driven. The increase in
sales of Gourmet soft drinks is not because of their superior taste.
Everyone knows that their taste is not as good as international brands

- 22 -

are giving but their prices are low. Mostly Gourmet drinks are used in
1.5 liter which is of Rs. 45 and other big brands are of Rs. 60. Similarly
lesser prices are not the only factor contributing to the sale increase of
their soft drinks, if only that wouldve been the case the other
domestic players like Amrat cola, Maka Cola etc wouldve never
diminished. Other reason is their outlets, which are very neat & clean
and give a high quality look. Generally people like Gourmet outlets
environment and believe that products are of good quality. So our
strategy for launching juices will be quite similar as well be
differentiating

our

product

on

basis

of

price

from

our

direct

competitors such as Nestle, Shezan etc. because the name Gourmet is

recognized for its quality products in the minds of people of Lahore.
Well be launching juices in the most commonly accepted flavors like
Apple, Orange, Mango, Pineapple and Mixed Fruit in three different
packaging to get hold of different segments of consumer market i.e.
children, households and youth. 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. Price will be the difference that
will push a customer to buy our product over another, as long as most
things are fairly similar. 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 well be using
competition base pricing for this range of juices whereas for other
sizes well use cost plus pricing to penetrate into the market.

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CORPORATE CULTURE:
Gourmets Corporate Culture possesses an autocratic style as all the
major decisions are made by the management without considerable
consultancy of employees. The manager is used to give instructions.
They tell employees what to do instead of asking for their opinion on
the matter in hand. The managers (Mr. Rizwan Chaudhry, Zubair and
Syed Ali Raza Naqvi) are the only persons contributing to the decision
making process in the business.
The work environment is dynamic and friendly, never a dull moment at
Gourmet. They have a small and casual team, but very professional
about their duties. Gourmet is one of largest group of food chain in
Lahore and thus endless potential to learn and to grow.
Gourmets corporate culture based on a set of fundamental principles
and values. 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, and as times change,

these core values keep evolving.

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ORGANIZATIONAL/ HIERARCHY CHART OF GOURMET:

Director

G.M Production
G.M Market

Assistant General Manager

Area Managers

Branch Supervisor

Complaint Manager/ Auditor

Assistant Branch Supervisor

Purchaser

Store Supervisor

Salesman

Purchase Manager

Gate Keeper

- 25 -

C) STRATEGIC ANALYSIS
Key Strategic Issues:
Gourmet Bakers 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.
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. This has been a key reason for the
rapid growth of their sales revenues and demand for their products.
Distribution
They have a well developed distribution network. As there are over 88
outlets in Lahore and the distribution to all those outlets is carried out
through their personally owned distribution. For delivering Cola to
other retailers they have hired third the services of party logistics
which ensures efficient and on-time delivery of products.
Brand image
One major growing advantage for Gourmet is their brand image, 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.
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.

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IDENTIFICATION OF STRATEGIC ALTERNATIVE:

While launching a product there is no single strategy that can
guarantee the success of your product. Therefore wed have more than
one strategy that can be used as backup strategy if in case our prior
strategy failed to get the desired results. Thats why any good
marketer will develop an alternate strategy for such reasons. The last
tactic, that is used when a product is finding it really hard to get
attention of customers, is that the prices are lowered to get the people
to atleast try the product for once. 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 same
strategy would be applied while launching juices.
Incase it doesnt produce the desired results that it produced with their
colas something different will have to be done. The alternate
marketing strategy will seek to first create customer awareness
regarding product, develop the customer base and work towards
building customer loyalty. 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. Investments will be made to create this
awareness among the people. 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.
Because this was one aspect of the marketing mix that was not fully
utilized to its full potential even while launching colas but luckily it
succeeded but in case of juices this alternate strategy will be used.

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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 well placing juices at most of retail
shops. Gourmet Bakers have used this strategy with Colas as well.
ANALYSIS OF AND CHOICE OF ALTERNATIVES
As mentioned before reducing the price of the product is the last tactic
that marketers opt, for increasing the sales but in case of Gourmet the
prices are already very cheap. If the product even doesnt click the
market then there are not many options available than to quit. 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. Because what advertisement does it converts wants

into needs and can help in improving sales. 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. As some people may find it inconvenient to travel to
gourmet outlets for making purchase of juices, the substitutes of which
are easily available at any retail store. This will provide convenience to
customer and convenience is what the customer is looking for.
ARGUMENTS FOR PREFERRED CHOICE
The reason for selecting the current strategy is that using the same
strategy gourmet launched its Colas and they are a success. Using the
same strategy is expected to deliver very similar results, because
Gourmet doesnt need high promotion for its new product when
launching it only in Lahore. Everyday thousands of people visit their
outlets which is serving the purpose of promotion for them. And
intensive promotion is kept as a backup that if incase it fails to
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produce the desired results extensive promotion will be carried out to

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

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REFERENCES:

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

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Marketing Project

SUBMITTED TO:
MADEM FAZAILA
TEAM MEMBERS:
SEHRISH INAYAT (090016)
SARWAR KAMAL

(090015)

RIZWAN SAEED

(090012)

TAHIR AYUB

(090006)

ABDUR REHMAN (090001)

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