We visited Gourmet bakers in a group Ior the completion oI this assignment and aIter comparing
it with the given guidelines come to know
It comes under the Ioods retailers` category, as they oIIer basically the products oI bakery. The
type oI merchandize they are oIIering they have an average variety and deep assortment .e.g.
they oIIer several products with deep assortment such as in milk they have Prima, Gourmet, Milk
pack, Haleeb, Nurpur etc.
It is a kind oI category specialist store. Gourmet bakers have many retail stores in Lahore.
Gourmet oIIer Iranchising Ior this purpose to improve their availability to the customers.
As gourmet is a very well known bakery in Lahore and almost every Lahori knows about
gourmet so this Iactor has an immense impact on the buying behavior and buying decision oI the
customers. And they are also in Iood business so mostly consumers use limited buying process
decision making while buying something Irom there. As they already know very much about
gourmet and its products and all the products that gourmet oIIers are FMCGs and Irequently
purchased and mostly are not oI very high cost. Many consumers also do impulse buying on
gourmet .e.g. in winters a customer goes to buy bread and eggs and aIter watching Halwa trays
displayed near entrance buys Halwa too. Many customers uses habitual buying decision too in
case oI some products .e.g. only eats gourmet ice cream, drink gourmet water or buys products
Irom Gourmet as it`s a pure Lahori chain oI bakery and available at nearby places etc.
Gourmet targets social classes such as
O Middle class
O Upper middle class
O Upper class
In gourmet`s retail Iormat it oIIers basically Iood and bakery items in their merchandise
category. And using penetration pricing strategy according to their target market. Gourmet uses
micro or local advertisement and promotion within Lahore. For this they are using Lahore city`s
new channel C42. And whenever a new branch oI gourmet opens anywhere in Lahore they
choose broachers mailing, banners etc Ior it promotion in area and also oIIer discount Ior a Iirst
Iew days to grab customer attention.
Any retial store can gain its competive advantage in many ways now we have compared
Gourmet`s competitive advantage with these point.
Positioning: gourmet positioned itselI as a good quality brand in an aIIordable price. And this is
also reIlected Irom its pricing and product qualities.
Loyality program: gourmet is not oIIering any kind oI loyality program even to its loyal
customers that is a draw back.
Location: gourmet is enjoying a kind oI competitive advantage by having its availabilty to the
customers all over lahore due to its many outlets. Now douce is giving a hard time to gourmet by
opening new branches very next to gourmet.
Distribution and information system: gourmet has a strong distribution channel within lahore,
but iI take gourmet water example here we come to know that in summers many oI their outlets
outstocked oI water.Talking about inIormation system that are not very established in it.
Unique merchandise: gourmet is well ahead in this Iactor oI building competitive advantage by
establishing its own private label brands within lahore.
Customer service: gourmet don`t have such a competitive advantage in its customer service
area. Straightly spaeking they had kind oI monoply in this kind oI business at that scale so they
didn`t much bother about customer service Iactor. But now with the presence oI new players in
the market such as kitchen cusine, douce etc they are Iocusing on it too.
Location is the most important decision that a retailer takes. And it is the prime consideration in
this type oI retail store that`s why gourmet choosen 'inner city location¨ or 'main road
location¨kind oI strategy to attract more customers. That`s why gourmet has its branch almost in
every location oI lahore.
Gourmet have its outlets at more than 75 sites in lahore. They have choosen their site very
careIully aIter examining diIIerent segments and target market. Almost every oI their outlet has
its own parking in Iront oI it that is also one oI its positive points that grab more attraction Irom
the customers in sense oI convinience they want. They also starts their outlet mostly in saturated
market area where they have no or very less competition.
As i have already stated that they had kind oI monoply in this kind oI business at that scale so
they didn`t much bother about customer service and establishing any CRM Iactor. But now
with the presence oI new players in the market such as kitchen cusine, douce etc they are
Iocusing on it too. Reason oI this is also a weak inIormation system oI Gourmet. They don`t
have proper database oI their customers this thing limits gourmet to establish proper CRM
program oI gourmet.
Concluding this report we suggested that gourmet must need to improve and establish it
strong inIormation channel by which it can eIIectively retain its customers because in this
world oI business customer is everything and gourmet is having new entrants in market so it
need to retain its existing customers. They need to improve their customer service because
many usually wait Ior long in gourmet outlets, they have improve the experties and train their
empolyees Ior improved customer service. Need to imrove gourmet water distribution in

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