National University of Modern Languages

Strategic Marketing
BBA- 7th (A) Morning

Project
Company Competition Analysis

Submitted By:
Adeel Ahmed (2181016)
Zain Ul Abidin (2181007)
Jawad Ur Rehman (2181003)
Umer Shahzad (2181014)

Submitted To:
Ms. Javeria Shabbir

Date:
24th May, 2021
Table of Contents

Company Competition Analysis .......................................................................................................... 2

Jawad Ur Rehman’s Work .................................................................................................................. 2
Company Information: ..................................................................................................................... 2
Business Scope:.................................................................................................................................. 2
Gourmet Objectives: ..................................................................................................................... 3
Gourmet Weaknesses: .................................................................................................................. 3
Management Experiences and Capabilities: .................................................................................. 3
Zain Ul Abidin’s Work ......................................................................................................................... 4
Market Position and Trends: ........................................................................................................... 4
Objectives of Gourmet: ................................................................................................................ 4
Competitors of Gourmet: ............................................................................................................. 4
Product Lines of Gourmet: .......................................................................................................... 5
Positioning and Branding of Gourmet: ........................................................................................... 5
Brand Positioning: ........................................................................................................................ 5
Brand Image/Reputation/Personality: ........................................................................................ 5
Positioning: ........................................................................................................................................ 6
Product Analysis: .......................................................................................................................... 6
Segmentation and Target Market: .................................................................................................. 6
Umer Shahzad’s Work ......................................................................................................................... 7
Positioning Strategy for Each Market: ........................................................................................... 7
Adeel Ahmed’s Work ........................................................................................................................... 9
Financial Performance of Gourmet: ............................................................................................... 9
Levels of competition for Gourmet: .............................................................................................. 10
Product form competition: ......................................................................................................... 10
Product category competition: ................................................................................................... 10
Generic competition:................................................................................................................... 11
Budget competition: .................................................................................................................... 11
References:........................................................................................................................................... 12

Page | 1
 Company Competition Analysis
Gourmet Pakistan

Jawad Ur Rehman’s Work

Company Information:
Type: Bakers

Industry: Sweets and Bakers

Founded: 10th September, 1987

Founder: Zubair Nawaz Chattha

Headquarter: Lahore, Pakistan

Number of Locations: 250+

Website: gourmetpakistan.com

Business Scope:
Gourmet Bakers and Sweets is the top food retail chain of Lahore. Gourmet is the number one
brand in the market of bakers and sweets due to its quality and valuable services. Before 1984,
Mr. Nawaz Chattha was the employee of the Shezan bakers at the post of manager. While he
was doing his job, he decided to start his own business separately because he was proficient
dealer, a technical supporter and maintained check and balance in every branch. Mr. Nawaz
Chattha started his business from one out let in Muslim Town with bakers in 1987.

After seeing the profitable result, he decided to introduce new product like sweets, milk, and
ice-cream and gourmet cola. In continuous success of gourmet in providing quality service and
products for the health and happiness of all family, Gourmet also started a family restaurant.
Since the emergence of Gourmet bakers, it has shown explosive annual growth of more than
25% in its business. It has 1700 employees working in its all departments. It has around 95
branches and will enhance its coverage to One hundred branches making it The Largest Bakers
and Confectionaries of the city as well as the country.

Page | 2
Gourmet Objectives:
Objectives are the guidelines which direct toward the chosen destiny. The objectives of the
Gourmet are marketing objectives which are as under:

1. To build profitable customer relationship by delivering superior value.

2. To provide such products those can increase targeted markets.
3. To become a leader in the bakery and confectionary industry.
4. To provide the quality products to the target market.

Gourmet Weaknesses:
• Gourmet is not paying proper attention on its promotion and advertisement.
• There is lack of space for parking in every branch.
• Gourmet most demanding products are short in stores most of the time.

Management Experiences and Capabilities:

Gourmet provides a very peaceful
and motivating environment to its
employees and give them a free
hand of working to provide comfort
to its employees. Most of the
gourmet’s employees are very
satisfy and love to work with them.
By sharing their experiences, they
said gourmet provide us very professional experience and gourmet provide proper attention
towards its employees, gourmet give instant response to its employee’s queries. We can also
see their online ratings and reviews which has given by their employees.

Gourmet follows decentralized system for management which allows employees to take small
decisions by their own with the help of creativity and polish their skills and evaluate them.

Page | 3
 Zain Ul Abidin’s Work
Market Position and Trends:
Firstly, in order to understand market position, we must define it formally. Market positioning
may be defined as the ability to influence customer perception regarding a brand or a product
against its competitors.

In our case, Gourmet Pakistan may position itself as the provider of best quality bakery and
fast-food items at cheap, competitive and reasonable price.

Objectives of Gourmet:
Objectives are actually the guidelines which guides the company or business toward the chosen
destiny i.e., achieving its goals and mission. Objectives of Gourmet Pakistan are stated below:

• To build profitable customer relationship by delivering superior value.

• To become a competitive and leader brand in bakery industry.
• To provide ultimate quality products to customers.
• To establish a complete and overall bakery of first choice to facilitate the customers.
• To attain customer trust.

Competitors of Gourmet:
As Gourmet Pakistan is one of the leading brand and business in bakery industry but at the
same time it is surrounded by several key competitors which are constantly competing and
giving tough time to Gourmet Pakistan. These competitors are given below:

• Tehzeeb Bakers.
• Rahat Bakers.
• Bakeman.
• Al Safa Bakers.

Page | 4
Product Lines of Gourmet:
Some of the major product lines of Gourmet Pakistan are:

1. Sweets

This is one of the main and vital product line of Gourmet Pakistan. It possesses Gulab Jaman,
Barfi, Laddoo, Cham, Patisa, Jalaibee, and Ras Malai.

2. Bakers

This product category/segment contains bread, buns, rusks, cookies, cakes, pastries, pizzas,
and sandwiches.

3. Beverages

It includes Gourmet Cola, Gourmet ice-cream soda, Apple Sidra/Big Apple, and Gourmet
Lemon etc.

Positioning and Branding of Gourmet:

For a long time, Gourmet carries its image in a positive and good manner. According to
consumer’s perception, Gourmet is manufacturing hygienic and high-quality products.
Moreover, the packaging is also suitable and appropriate according to the occasion.

Brand Positioning:
Gourmet position their products in the mind and thoughts of their customers by
offering:
• Superior Taste.
• Quality.
• Freshness.
• Home Delivery.
• Affordable Price.

Brand Image/Reputation/Personality:
• Superior in Price and Taste.
• Status Conscious.
• Strong Commitment.
• No Compromise on Quality.

Page | 5
Positioning:
Product Analysis:
The primary and main product because of which Gourmet was able to make its name and has
been continuing to go and on is mithai and they are famous for it but their bakery items and
products and beverages also give value and satisfaction to their customers. Their products
include:

• Quality.
• Freshness.
• Purity.
• Good Taste.
• Uniqueness.
• Cleanliness.

Segmentation and Target Market:

Gourmet is different from its
competitors. They have been
continuously upgrading themselves
over the years. They started their
business from inner, congested and
some selective big cities. But as time
passed, they upgraded themselves and
now their stores are found in almost
every main city of Pakistan.

If we look closely, the prices of Gourmet products are relatively on higher side against their
competitors. Moreover, their stores are mainly located in some selective and costly areas of the
cities. Keeping these factors in mind, we can say that there target market is upper middle to
upper class people.

Page | 6
 Umer Shahzad’s Work
Positioning Strategy for Each Market:
Gourmet got a great success in positioning its products in Punjab the main reason for such a
success is that it has provided wide variety of high-quality product at low prices. The economy
condition of Pakistan is in bad condition and the per capita income of people is also low in such
a condition Gourmet has gained a high audience attention toward its products and also gained
a great annual growth 35% to 45% from year 2006 to 2009 and still now it going to provide its
more services at more cities in Punjab.

With the positioning of its product and services gourmet is also adding some more products
just like it is going to start its mobile phone market in the mid or in the end of this year. The
exact date is not conformed and the mobile phone brand will be named as “Gourmet”.

Gourmet also brings “Bon Vivant” as premium cuisine with an exquisite treat in chocolate and
caramel for Bon Vivant cakes and other products the ingredients used are imported. But with
lot of success and advantages there are also some problems with gourmet like its
undifferentiated market strategy with not work properly when it will try to spread its services
in other provinces of Pakistan because it has no efficient system of supply chain management
or logistics. Gourmet has to innovate a unique supply chain management or logistics to spread
in the whole Pakistan.

The following ANSOFF matrix will help to understand its market Positioning.

Existing Products New Products

Market Penetration Product Development

Existing Market New ice-cream flavor Bon Vivant candies.

packaging of milk, Toffees, dry milk etc.
changed new jams flavor.
Market Development Diversification

New Market
Supplier to many Burgers Restaurant Business
and Pizza Vendors. Catering Service
Suppose (Gourmet
university.

Page | 7
Overall Positioning on the basis of Value Proposition As far as the positioning of the brand is
concerned, Gourmet uses ‘More for Less’ positioning strategy. Gourmet give more benefits to
their customers and charge fewer prices for their product as compared to other competitor
brands. Effects on Consumer Behavior Special editions of Gourmet chocolates will be used to
affect consumer behavior.

Market research has shown that consumers prefer special editions to be available for limited
periods only and that consumers will likely to purchase the original Gourmet Chocolate at the
same time or shortly after. They are, therefore, a good way of injecting new life into the
Gourmet chocolate product life cycle. Depending on their popularity, some special editions
will be introduced more than once. Pricing strategy a key advantage of maintaining a strong
brand image in a competitive market is a degree of flexibility in the pricing strategy. It is a
common characteristic of imperfectly competitive markets for producers to concentrate on non-
price competition.

Gourmet pricing strategies are as follows Propose Price Weight Prices 20gm pack, Rs.10 50
gm. Pack, Rs.25 150 gm. Pack, Rs.75 We will provide good quality in an economical price.
We have made the Price of our Product so economical so that even a lower class can afford it.
We have not made this Product for only one class but it is for all. Market penetration pricing.
we will set the low initial price in order to penetrate the market. Quickly and deeply and win a
large market share. The high-sales volume results in falling cost, allowing the company to cut
its prices further several conditions must be for this low-price strategy to work, First the market
must be highly price sensitive so that the low price produces more market growth.

Page | 8
 Adeel Ahmed’s Work
Financial Performance of Gourmet:
As if we see the financial performance of
Gourmet Pakistan by taking the historical
data of the company, we come to know
that in previous years Gourmet has
achieved excellence and become the most
competing brand in Pakistan in foods
industry. In this report I’m going to share
the previous performance of gourmet of 2008, 2009, 2010 and also, we will see the positive
change in overall financial performance of the company which indicates that company has a
good and reputable image created in overall industry due to the efforts put by the company.
Now in below mentioned record of sales of 2008, 2009, 2010.

Avg. per day sale of Gourmet Sweets in 2010 85,000

Avg. per month sale of Gourmet Sweets in 2010 25550,000

Estimated sale of 2010 30600,000

Avg. per day sale of Gourmet Sweets in 2010 70,000

Avg. per month sale of Gourmet Sweets in 2010 2100,000

Estimated sale of 2010 25200,000

Avg. per day sale of Gourmet Sweets in 2010 50,000

Avg. per month sale of Gourmet Sweets in 2010 1500,000

Estimated sale of 2010 18000,000

Page | 9
If we compare the company Gourmet in terms of specific product like sweets with other
companies making sweets items, we come to know that Gourmet itself made a huge competing
environment for its competitors. Here we will do a comparison of Gourmet with Fazal Sweets
and Nirala Sweets.

In above mentioned table the comparison of Gourmet’s sales with Fazal Sweets and Nirala
Sweets and we can see huge change in the sales of both companies. These are the historical
data of Gourmet but if we talk about the current financial performance of Gourmet Pakistan,
we can see that Gourmet achieve success by implementing different strategies. So, this is the
financial performance of Gourmet using the past historical data based on facts and figures.

Levels of competition for Gourmet:

Here I am going to explain the levels of competition for Gourmet Pakistan and after that I will
show you in proper format. So, the level of competition here we will let suppose take for
beverages industry like Gourmet cola.

Product form competition:

So according to above mentioned that we will take example of beverage industry so here we in
product form competition we take product like colas including gourmet cola, coca cola, Pepsi
cola etc.

Product category competition:

In product category we will include like these are soft drinks but there comes multiple
categories in soft drink also so here we going to take lemon, cola etc. These are product
category like soft drinks.

Page | 10
Generic competition:
In this we will see that we are competing on the basis of which industry if we see that all these
are including in beverages industry so we will categorize it or our competition on the basis of
beverages making industry.

Budget competition:
The last and important point is budget competition so there are many brands like coke, Pepsi,
gourmet are also competing on the basis of budget so as gourmet is a Pakistani brand so it is
capturing the local industry and there is no need for competing on international level but
international brands are competing in our country so it should invest in budget or add more
budget to compete with them. So, as all these are related to food items so in budget competition,
we see the lifestyle of people on the basis of lifestyle gourmet is spending budget.

Page | 11
References:

• https://www.glassdoor.com/Overview/Working-at-Gourmet-Foods-Pakistan-
EI_IE525882.11,33.htm
• https://pk.indeed.com/cmp/Gourmet-Foods/reviews
• https://web.pakcheers.com/gourmet-f-7markaz-islamabad
• https://www.gourmetpakistan.com
• https://www.facebook.com/gourmetislamabad/
• https://en.wikipedia.org/wiki/Gourmet_Foods

Page | 12