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 2Executive Summary 4Company Description 5Mission/Vision/Strategic Goals 5Situational 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 21Current Strategy 21

Product Strategy 21 Pricing Strategy 22 Promotion Strategy Place/Distribution Positioning Positioning Map (BY PRICE/QUALITY) 23

Corporate Culture 23Financial Analysis 23Strategic Analysis 23

Key Strategic IssuesStrategic Tools 25Product Life Cycle 25BCG Matrix 26Identification of Strategic AlternativesIdentification & Analysis Of &Choice Of AlternativesArguments Of Preferred Choic 27Strategic RecommendationsThree Years Final ObjectivesStrategic IntentOperating Programmes To Achieve Diversity Trigger (Contingency Plan) 28

Methodology of ResearchImplementation & Control Matrix 29References: 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.

To be among the top companies in the food business.

To increase the number of outlets of the company 25 % annually.

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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

Mango200 ml Rs: 18/-

1 Ltr (normal) Rs: 68 /-

Orange200 ml Rs: 18 /-

1 Ltr (normal) Rs: 68 /-

Red Grapes (Nectar)200 ml Rs: 18/-

1 Ltr Rs: 72/-

Apple (Nectar)200 ml Rs: 18 /-

1 Ltr Rs: 72 /-

Pine Apple (Nectar)200 ml Rs: 18 /-

1 Ltr Rs: 72 /-

Guava(Nectar)200 ml Rs: 18 /-

1 Ltr Rs: 72 /-

Chaunsa (Nectar)200 ml Rs: 18 /-

1 Ltr Rs: 72 /-

Cocktail200 ml Rs: 18 /-

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

Price

Rate

Minute Maid500 ml Rs: 35 /- Rs: 45 /-

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

Mango250 ml Rs: 10/-

1 Ltr Rs: 45 /-

Orange250 ml Rs: 10/-

1 Ltr Rs: 45 /-

Fruit Punch250 ml Rs: 10/-

1 Ltr Rs: 45 /-

Apple 250 ml Rs: 10/-

1 Ltr Rs: 45 /-

ALL PURE JUICES-(SHEZAN’S BRAND)

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Item Name Packing size Rate

Grapes250 ml Rs: 17/-

1 Ltr Rs: 62 /-

Orange250 ml Rs: 17/-

1 Ltr Rs: 62 /-

Tropical Nectar250 ml Rs: 17/-

1 Ltr Rs: 62 /-

Apple 250 ml Rs: 17/-

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.

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Distribution strategies

They are using both direct and indirect strategies.

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

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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.

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

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Target Markets

The people from income point of view is middle to low class is our target market.

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:

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

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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.”

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.

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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.

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 Integration19

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.

SWOT MATRIX COMPARISON OF SWOT ANALYSIS

Strength Opportunities

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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:-

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.

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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.

Positioning

Positioning Map (BY PRICE/QUALITY)

High Price

Nestle, Coca Cola&Shezan Haleeb

. .

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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

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

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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.

STRATEGIC TOOLS

Product Life Cycle

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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.

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

gourmet?

cash cowDog

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Growth Rate

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

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.

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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.

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

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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

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 Time Frame Control Measures

Product (Testing & Launch) May 01, 09-Nov 01,2009 Survey current customer about

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their likes and dislikes

Pricing (Maintain price) Nov 01,2009- Nov 01, 2010 Verify if the market share is

increasing or not from monthly

sales report.

Office Automation

Employee training seminars

Feb 04, 2010 Verify updated systems are

available with appropriate

software and evaluate the sales

force

Promotion May-July, 2009 Survey to measure popularity

REFERENCES:

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Websites:

www.shezan.com.k

www.nestle.com

www.haleebfoods.com

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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