Strategic Marketing Plan

Gourmet

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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.

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 Table of Contents
Acknowledgement 2
Executive Summary 4
Company Description 5
Mission/Vision/Strategic Goals 5
Situational Analysis 7
• External Analysis 7
• Industry Analysis 7
Competitive analysis/Competitive Pressures 8
• NESTLE 8
• COCA COLA-Minute Maid 11
• SHEZAN 12
• HALEEB 14
MARKET ANALYSIS 15
• Market Segmentation 16
• Target Markets
• Positioning
Marketing and Product Objectives 16
• Current Markets
• New Markets
Environmental Analysis 17
• Demographics:
• PEST Analysis
• The Customer Environment 18
Internal Analysis 19
• S.W.O.T Analysis
SWOT Matrix 21
Current Strategy 21
• Product Strategy 21
• Pricing Strategy 22
• Promotion Strategy
• Place/Distribution
• Positioning
• Positioning Map (BY PRICE/QUALITY) 23
Corporate Culture 23
Financial Analysis 23
Strategic Analysis 23
• Key Strategic Issues
Strategic Tools 25
Product Life Cycle 25
BCG Matrix 26
Identification of Strategic Alternatives
Identification & Analysis Of &Choice Of Alternatives
Arguments Of Preferred Choic 27
Strategic Recommendations
Three Years Final Objectives
Strategic Intent
Operating Programmes To Achieve Diversity
Trigger (Contingency Plan) 28

Methodology of Research

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Implementation & Control Matrix 29
References: 30

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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 don’t 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 company’s 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.

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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.
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 • To be among the top companies in the food business.
• To increase the number of outlets of the company 25 % annually.
• 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 company’s 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.

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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
Gourmet’s 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.

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Competitive analysis/Competitive Pressures
In Fruit juices its direct competitors are Nestle, Shezan, Minute Maid, and Haleeb. Let’s take a
close look of each Competitor:-

“NESTLE”

Nestlé was founded in 1866 by Henri Nestlé 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, Nestlé Kit Kat,
Nestlé bottled waters and Nestlé 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.

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PRODUCT LINE FOR NESTLE FRUIT JUICES

Item Name Packing size Rate

200 ml Rs: 18/-
Mango
1 Ltr (normal) Rs: 68 /-
200 ml Rs: 18 /-
Orange
1 Ltr (normal) Rs: 68 /-
200 ml Rs: 18/-
Red Grapes (Nectar)
1 Ltr Rs: 72/-
200 ml Rs: 18 /-
Apple (Nectar)
1 Ltr Rs: 72 /-
200 ml Rs: 18 /-
Pine Apple (Nectar)
1 Ltr Rs: 72 /-
200 ml Rs: 18 /-
Guava(Nectar)
1 Ltr Rs: 72 /-
200 ml Rs: 18 /-
Chaunsa (Nectar)
1 Ltr Rs: 72 /-
200 ml Rs: 18 /-
Cocktail
1 Ltr 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.

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WEAKNESSES:
• Nestle fruit juices are relatively expensive than other brands.

MARKETING MIX STRATEGIES

DISTRIBUTORS:

They are using two types of distribution channels.

Single level channel: Manufacturer Retailer Customer
Dual level channel: Manufacturer Wholesaler 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:

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

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COCA COLA-Minute Maid

Item Name Packing size Introductory Rate

Price
500 ml Rs: 35 /- Rs: 45 /-
Minute Maid
1.5 Ltr Rs: 85 /- 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 Retailer End user
Dual level channel: Manufacturer Wholesaler Retailer End User

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

• Advertising

• Consumer Promotion

• Trade Promotion

• Direct Marketing-Vending Machines

“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 Packing size Rate
250 ml Rs: 10/-
Mango
1 Ltr Rs: 45 /-
250 ml Rs: 10/-
Orange
1 Ltr Rs: 45 /-
250 ml Rs: 10/-
Fruit Punch
1 Ltr Rs: 45 /-
250 ml Rs: 10/-
Apple
1 Ltr Rs: 45 /-

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ALL PURE JUICES-(SHEZAN’S BRAND)
Item Name Packing size Rate
250 ml Rs: 17/-
Grapes
1 Ltr Rs: 62 /-
250 ml Rs: 17/-
Orange
1 Ltr Rs: 62 /-
250 ml Rs: 17/-
Tropical Nectar
1 Ltr Rs: 62 /-
250 ml Rs: 17/-
Apple
1 Ltr Rs: 62 /-

SHEZAN JUICES IN BOTTLED PACKING

Item Name Packing size Rate
Lemon 240 ml Rs: 15/-
1 Ltr Rs: 70/-
Mango 240 ml Rs: 15/-
1 Ltr Rs: 70/-
Lychee 240 ml Rs: 15/-
1 Ltr Rs: 70-
Orange 240 ml Rs: 15/-
1 Ltr 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.

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Single level channel: Manufacturer Retailer Customer
Dual level channel: Manufacturer Wholesaler Retailer Customer
Vertical integration (zero level channel): Manufacturer Customer

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

• Advertising

• Trade Promotion

HALEEB “
Item Name Packing size Rate
Apple 1 Ltr Rs: 68/-
250 ml Rs: 10/-
Mango 1 Ltr Rs: 68/-
250 ml Rs: 10/-
Orange 1 Ltr Rs: 68/-
250 ml 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.

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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

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.

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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

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
company’s outlets & these concepts are also useful to launch new products like fruit juices

ENVIRONMENTAL ANALYSIS
Demographics:

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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.

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:

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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.
• 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.”

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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.

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.

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 • 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.
• Political instability.
• Electricity shortage.

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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:

• Gourmet’s strengths like technology, best quality, reasonable prices and own
distribution network can be used to exploit opportunity of expanding business in
other regions.
• 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 Gourmet’s current strategy on the basis of marketing mix:-

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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 it’s 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 it’s strong private brand label that will be supportive in
running it’s fruit juices business.

Place/Distribution
With it’s 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 it’s reasonable number of outlets located
at various places (from low to middle class consumer markets) it can easily provide variety of it’s
fruit juices to the customers. Gourmet will also serve its drinks in it’s restaurant.
Gourmet is following corporate virtual marketing system in which the retailer also own the
manufacturing and distribution channel.

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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

CORPORATE CULTURE

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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 GROWTH MATURITY DECLINE

(our present stage)

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
Dog
cash cow

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

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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 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.

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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.

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 don’t 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

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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.

IMPLEMENTATION & CONTROL MATRIX

May 01, 2009 to May 01,2011
Product (Testing & Launch)
Pricing (Maintain price)
Time Frame
May 01, 09-Nov 01,2009
Nov 01,2009- Nov 01, 2010
Control Measures
Survey current customer about
their likes and dislikes
Verify if the market share is
increasing or not from monthly
sales report.

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Office Automation Feb 04, 2010 Verify updated systems are
Employee training seminars available with appropriate
software and evaluate the sales
force

Promotion May-July, 2009 Survey to measure popularity

REFERENCES:

Websites:
www.shezan.com.k
www.nestle.com
www.haleebfoods.com
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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

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