Strategic Marketing Plan

Gourmet

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 aved and Mr. Ma!har "ussain #Manager Shps$at %ot lakh pat who also helped us in making and completing our pro&ect. We would specially like to thank who gave us a chance and comprehensive knowledge of strategic tools and techniques to complete this pro&ect. "e really enhanced our knowledge by assigning this pro&ect and utili!ing it by applying all strategies in it.

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Table of Contents
Acknowledgement ()ecutive Summary +ompany ,escription Mission./ision.Strategic 0oals Situational Analysis ()ternal Analysis Industry Analysis +ompetitive analysis.+ompetitive 2ressures 4(S56( +7+A +76A8Minute Maid S"(9A4 "A6((: MA;%(5 A4A6<SIS Market Segmentation 5arget Markets 2ositioning Marketing and 2roduct 7b&ectives +urrent Markets 4ew Markets (nvironmental Analysis ,emographics> 2(S5 Analysis 5he +ustomer (nvironment Internal Analysis S.W.7.5 Analysis SW75 Matri) +urrent Strategy 2roduct Strategy 2ricing Strategy 2romotion Strategy 2lace.,istribution 2ositioning 2ositioning Map #:< 2;I+(.@AA6I5<$ +orporate +ulture Cinancial Analysis Strategic Analysis %ey Strategic Issues Strategic 5ools 2roduct 6ife +ycle :+0 Matri) Identification of Strategic Alternatives Identification D Analysis 7f D+hoice 7f Alternatives Arguments 7f 2referred +hoic Strategic ;ecommendations 5hree <ears Cinal 7b&ectives Strategic Intent 7perating 2rogrammes 5o Achieve ,iversity 5rigger #+ontingency 2lan$ Methodology of ;esearch ' * 1 1 1 3 3 11 1' 1* 11=

1=

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13 1? '1 '1 '1 ''

'B 'B 'B 'B '''= '1

'3

Implementation D +ontrol Matri) ;eferences>

'? BE

Executive Summar
0ourmet was founded by Mr. !awa" C#at#a in 1?31 as a single outlet of a bakery unit. 7ver a period of two decades it has grown in stature and apart from e)celling in bakery products it has introduced new trends in a variety of businesses such as restaurants and dairy products business. 5he main aim of the company is to provide quality products at a competitive price to its valued customers. 5o produce the best quality productsF company has invested a huge amount of capital in placing state of the art technology to meet the demands of the customers. 5he company wants to increase its market standings by opening new outlets at key locations of the city. Cor 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. 5he current disadvantages that the company is facing is that they donGt have a paperless environment which is a ma&or hurdle in effective communication among various departments of the companyF to overcome this deficiency the company is committed to implement an (;2 #(nterprise ;esource 2lanner$F in order to minimi!e the time wastage. 5he companyGs ma&or strengths include hiring skilled personnel on a permanent basisF company owned outlets #no franchise$F state of the art technology to produce quality productsF innovative trends in providing services #especially in restaurants$F the company believe in charity and for this they provide meals to the patients in hospitals of 6ahore. 5o cope with the current and future threatsF the company is committed in introducing change in the current and increase in the product lines. 5he company has a very comprehensive marketing program which includes both promotions and pricing. 2romotions are generally made through 272F bannersF brochures along with push strategy. 2rice is a key factor in the growth of a company. 0ourmet has a very straight forward pricing strategy and is following cost leadership strategy. Cor bakery products the price ranges are uniform in all the outletsF 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.

Com$an %escri$tion
0ourmet :akers and SweetsH is the largest food retail chain of 2akistan. It is based in 6ahoreF the second largest city of 2akistan known for its traditional foods and passion for eating. With their * processing units and 1B sales outlets plus B outlets are under construction they try to reach out to a huge population for their food needs. 5he company has shown an e)plosive annual growth of more than '- I in its business since 1?31F when Mr. Muhammad 4awa! +hatha 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 mannerF 0ourmet has become a success story of business growth in 2akistan. At moment we have more than 11EE employees working in the organi!ation.

Mission Statement
5he mission of 0ourmet :akers D Sweets is to provide quality products at a low price to be the market leader.

&ision Statement
5he vision of 0ourmet :akers D Sweets is to be the leading healthF wellness and nutritional company at national level.

Strategic 'oals
5his section will cover the overall goals of gourmet bakers and sweets.

!on (inancial Strategic 'oals

5o get the ma)imum market share by taking an advantage of our strengths of latest technologyF own distributionF best quality with competitive prices by maintaining good relations with suppliers. 5o increase outlets on key.main locations of every area of the cityF 6ahore. 5o e)pand the business to other main cities of 2akistan in ne)t - years. =

5o be among the top companies in the food business. 5o increase the number of outlets of the company '- I annually. 5o increase the product mi) by adding new product lines. 5o build strong customer relationships by providing them quality products at the low cost. 5o introduce quality products for health conscious people. 5o introduce unique ideas of product marketing. 5o implement paperless environment throughout the company. Asing paper bags replacing plastic bags within ne)t two years. 5o build better relationships with supplier

(inancial Strategic 'oals

Minimum branch revenue growth rate will be 1E I annually. 5o double the annual sales in a period of five years. 5o reduce the cost of production by backward integration strategy. 5o increase the companyGs profits by maintaining the current customers through consistent quality and low prices and getting new ones by opening new outlets. 5o reduce the cost by reducing the wastages during the production and transportation.

S)T*AT)+! A!A,-S)S
Situational analysis involves in it both e)ternal and internal factors with respect to the environment that will have an influence on gourmet.

External Anal sis

)ndustr Anal sis
2akistan produces good quantity and quality of fruit but because of lack of proper storageF distribution and processing facilitiesF 2akistan could not earn as much revenue as it can. 5he fruit &uices market is growing for several yearsF and will be continuing to e)pandF mainly because these products are aligned with general trends regarding food and beverages consumption. +urrently the whole world economy is moving towards deflation. 7verheads are sky high that is affecting cost of product and is not giving much profit in return. 5his depression on world economy will slash down our 0,2 growth as well. Several changes take place in the fruit &uices distribution channels environment in 2akistanF a growing importance of foodserviceF the penetration of the global beverage brands #mainly +oca8 +ola and 2epsi$ 5hese changes are threatening and also bringing opportunities to companies. 0ourmet has been in the food industry of 6ahore for the last '1 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 &uices in the ne)t two months for which a better offering is needed in order to gain more share by attracting customers. Cor ()ample 4estleF She!anF "aleebF +oca +ola are 0ourmetGs direct competitors in the field of fruit &uices 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 waterF soft drinksF teaF coffee D red drinks. 5hey are more focused on drinks also because of health conscious to use natural products and increase our immunity against diseases. 3

Com$etitive anal sis.Com$etitive Pressures

In Cruit &uices its direct competitors are 4estleF She!anF Minute MaidF and "aleeb. 6etGs take a close look of each +ompetitor>8

/!EST,E0
4estlJ was founded in 1866 by Henri Nestl with headquarters in /eveyF Swit!erland. It has employed around '-EFEEE people and has factories or operations in almost every country in the world

)nfrastructure
It is one of the worldKs biggest food and Beverage +ompanies.

Target Market1
4estle targets both gendersF 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 &uices. Tourists are also the target market of nestle as they have to drink safe and healthy fruit &uices.

Products
4estle offers a variety of brands of which the most well known are 4escafeF 4estlJ %it %atF 4estlJ bottled waters and !estl2 3uices which include mi) fruit &uicesF apple &uiceF mango &uiceF grape &uice D orange &uice e.t.c in 'EEml D 1 liter packing. Collowing is the product line regarding fruit &uices.

1E

P4+%*CT ,)!E (+4 !EST,E (4*)T 5*)CES

)tem !ame Mango 7range ;ed 0rapes #4ectar$ Apple #4ectar$ 2ine Apple #4ectar$ 0uava#4ectar$ +haunsa #4ectar$ +ocktail Packing si"e 'EE ml 1 6tr #normal$ 'EE ml 1 6tr #normal$ 'EE ml 1 6tr 'EE ml 1 6tr 'EE ml 1 6tr 'EE ml 1 6tr 'EE ml 1 6tr 'EE ml 1 6tr 4ate ;s> 13.8 ;s> =3 .8 ;s> 13 .8 ;s> =3 .8 ;s> 13.8 ;s> 1'.8 ;s> 13 .8 ;s> 1' .8 ;s> 13 .8 ;s> 1' .8 ;s> 13 .8 ;s> 1' .8 ;s> 13 .8 ;s> 1' .8 ;s> 13 .8 ;s> 1' .8

6e Strengt#s 7 8eaknesses ST4E!'T9S

"igh quality obtained by the usage of a special production process. 7wn industrial laboratories that perform constant control for physical8chemical and bacteriological parameters. ,aily sensor water analysis for flavorF color and odor. Safety and 2urity from the source to the consumer 2roduced locallyF close to the consumer.

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8EA6!ESSES1
4estle fruit &uices are relatively e)pensive than other brands.

MA46ET)!' M): ST4ATE')ES

%)ST4);*T+4S1
5hey are using two types of distribution channels. Single level channel> Manufacturer ,ual level channel> Manufacturer ;etailer Wholesaler ;etailer +ustomer +ustomer

P4+M+T)+!>
5hey are using television and radio advertisements in electronic media. In print media they are using billboardsF newspapersF pole signs and posters. Point of Purc#ase Promotion <P+P= > In big departmental store they have display corner in which 4estle uices are refrigerated. In summers direct marketing is used for promotion by providing cool points of 4estle 2ure 6ife where chilled 4estle 2ure 6ife is available for instant drinking.

P4)CE1
4estle is following pricing strategy through which it provides functional and psychological satisfaction to its target customer. 5he pricing strategy of 4estle is market skimming. 2rices of 4estle fruit &uices are relatively higher than their competitors. Market prices of individual consumables #'EE ml$ are ;s.13. 5he price of 1 6itre pack is ;s.=381'.

P4+%*CT)+!1
4estlJ has been treated and remateriali!ed using a standardi!ed industrial process to ensure purity and quality. 4estle is leading producers of fruit &uices.

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C+CA C+,A>Minute Maid

)tem !ame Minute Maid Packing si"e -EE ml 1.- 6tr )ntroductor Price ;s> B- .8 ;s> 3- .8 4ate ;s> *- .8 ;s> ?E .8

ST4E!'T9S
"igh quality 2urity by using pulp#giving effect of natural &uice$ "eavy 2romotions "igh level of availability Strong :rand Image 4o local competitors of pulp &uices

8EA6!ESSES1
"igh 2rices

Pricing Strateg
Initially +oca +ola practiced penetration strategy at introductory level and after attaining the positioning they shifted to price skimming strategy.

%istribution strategies
5hey are also using same two types of distribution channels. Single level channel> Manufacturer ,ual level channel> Manufacturer ;etailer Wholesaler (nd user ;etailer (nd Aser

1B

Promotion Strategies
5hey believe in the power of promotion to break the competition Advertising +onsumer 2romotion 5rade 2romotion ,irect Marketing8/ending Machines

/S9EZA!0
She!an bakers D confectioners started their business in 1?=? and since then it is running successfully.

)nfrastructure
+urrently it has 'EL outlets through out in 6ahore operating by -8= family directors. She!an bakers opened their first outlet in A:I, MA;%(5 M7A9A40 having target of 6ahore with 1EE81-E items in first outlet. 4ow she!an has different product range includes Mbakery productsF sweetsF cereal products and disserts and Cruit &uices. Collowing is the product line regarding fruit &uices.

P4+%*CT ,)!E (+4 S9EZA! (4*)T 5*)CES <P,A)!=

)tem !ame Mango 7range Cruit 2unch Apple Packing si"e '-E ml 1 6tr '-E ml 1 6tr '-E ml 1 6tr '-E ml 1 6tr 4ate ;s> 1E.8 ;s> *- .8 ;s> 1E.8 ;s> *- .8 ;s> 1E.8 ;s> *- .8 ;s> 1E.8 ;s> *- .8

1*

A,, P*4E 5*)CES><S9EZA!?S ;4A!%=

)tem !ame 0rapes 7range 5ropical 4ectar Apple Packing si"e '-E ml 1 6tr '-E ml 1 6tr '-E ml 1 6tr '-E ml 1 6tr 4ate ;s> 11.8 ;s> =' .8 ;s> 11.8 ;s> =' .8 ;s> 11.8 ;s> =' .8 ;s> 11.8 ;s> =' .8

S9EZA! 5*)CES )! ;+TT,E% PAC6)!'

)tem !ame 6emon Mango 6ychee 7range Packing si"e '*E ml 1 6tr '*E ml 1 6tr '*E ml 1 6tr '*E ml 1 6tr 4ate ;s> 1-.8 ;s> 1E.8 ;s> 1-.8 ;s> 1E.8 ;s> 1-.8 ;s> 1E8 ;s> 1-.8 ;s> 1E8

ST4E!'T9S "ighly ()perienced #Among 2ioneers$ Serving 6ow income class Market Share on 6ocal level

8EA6!ESSES1 6ess 2romotion

Pricing Strateg
Market 2enetration strategy.

%istribution strategies
5hey are using both direct and indirect strategies.

1-

Single level channel> Manufacturer ,ual level channel> Manufacturer /ertical integration #!ero level channel$>

;etailer Wholesaler ;etailer Manufacturer

+ustomer +ustomer +ustomer

Promotion Strategies
It is using both 2rint and electronic media to promote its product. Advertising 5rade 2romotion

9A,EE; /
)tem !ame Apple Mango 7range Packing si"e 1 6tr '-E ml 1 6tr '-E ml 1 6tr '-E ml 4ate ;s> =3.8 ;s> 1E.8 ;s> =3.8 ;s> 1E.8 ;s> =3.8 ;s> 1E.8

ST4E!'T9S
(stablished :rand 4ame Serving 6ow to Medium income class

8EA6!ESS1
;elatively 6ow 2erceived @uality 6esser Availability

Pricing Strateg
Its prices are almost equal same as 4estle while perceived quality is no better then competitorsF so it is stuck in the middle.

1=

%istribution strategies
5hey are using both direct and indirect strategies. ,ual level channel> Manufacturer Wholesaler ;etailer +ustomer

Promotion Strategies
It is using both 2rint and electronic media to promote its product. Advertising 5rade 2romotion

MA46ET A!A,-S)S
Cirst we should know what Market isN it is defined as a set of Potential and actual buyers and sellers who give market offerings to the customers. 5he beverage industryF through innovationF is launching several new products, like fruit flavoredF iced teasF energy drinksF Cruit flavored waterF fruit based non alcoholic beveragesF fruit flavored milk drinksF freshly Squee!edF fruit &uice with &uice bitsF with yogurtF &uice 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 &ices

Target Markets
5he people from income point of view is middle to low class is our target market. 11

Positioning
M0ourmet @uality 0ourmet 2ricesH Means "igh @uality with 6ow prices

Marketing and Product +b3ectives

5he main aim of the company is to cash on the current standing of the company in the fruit business. 5o maintain the actual customers and to attract the potential customers 5o provide new products with best quality at low prices based on their needs. 5o meet nutritional needs of consumers of all age groups 5o be the preferred choice for the consumers

5he market according to gourmet has been categori!ed into various segments which are as under. Current Markets !ew Markets

Current Markets
7ur current market is 6ahore city covering its key.main locations

!ew Markets
As the population is growing at a rapid rateF new housing and industrial units are being set into place. 5his is a big opportunity for the company to reach out to those customers by increasing companyGs outlets D these concepts are also useful to launch new products like fruit 3uices

E!&)4+!ME!TA, A!A,-S)S
%emogra$#ics1
13

2akistan has large density of population. 5his is the very important factor that indicates that there is potential market for purified fruit &uices. It is for both male and female of all age groups with all income groups.

Political.,egal (actors
5he beverages industry is one of the five ma&or spinners revenue in the central e)cise duty #+,$ regime for the federal board of revenue of 2akistan and the variation in rate of +, imposition will certainly affect the beverages industry.

Economical (actor
Almost 1.B of the population is below poverty line. Apper and middle class who are health conscious will prefer fresh fruit &uices. 4ew housing and industrial units are developed in 6ahore 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. Anpredictable law and order situationF electrical shortage and political instability is one of the negative factor to make it difficult for 0ourmet to achieve its future growth ob&ectives Social 7 Cultural 0ourmet does not affect any of the social and cultural factor like raceF religionF language etc. It is consumed by low middle D high class health conscious people. 5hey are also implementing concept of societal marketing by giving donations D charities in various sectors. Cor e)ample they are providing lunch bo)es in +hildren "ospital and contributing operation fees of heart surgery patients in 2I+ #2un&ab institute of cardiology$.

Tec#nological 7 P# ical (actors1 1?

Although physical infrastructure of 2akistan is not very good but 0ourmet has its own Industries and laboratories to meet quality standards and ensure value. 5he company is putting their best effort to utili!e latest information technologies in its business applications. Cor e)ample web based communication systems which promote paper less organi!ation.

T9E C*ST+ME4 E!&)4+!ME!T

2akistan has large density of population. 5his is very important factor that indicates that there could be a potential market for fruit &uices. It is for both male and female of all age groups. 0ourmet is operating its outlets in different class localities in 6ahore. Since it has medium level prices it will serve mainly the middle class income group. As it will be a pure fruit &uice so their ma&or consumer will be health conscious people of all age groups. 2eople who are heavy users of pure fruit &uices are aware about their nutritional values and benefits and light users basically use it for refreshment and to quench their thirst. 7ur 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 e)tra nutritions. 7ur 0oumet &uice 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.H

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)!TE4!A, A!A,-S)S
S.8.+.T Anal sis
S.W.7.5 analysis is a study of StrengthsF WeaknessesF 7pportunities and 5hreats. 4ow we will discuss each and every step in detail.

Strengt#s
5he ma&or strengths of the company will be as under. 5o gain state of the art technology to produce the products. It is a ma&or strength of gourmet that they have kept all their employees on permanent basis. 5his feature creates a sense of security of the &ob from lower to higher management. 0reat and neutral taste which suits all the family @uality is ensured at each and every step. Adequate pricing to meet the demands of the customers. 7wn distribution network. ()cellent relationships with the suppliers. 7utlets on key locations of the city. 5he company will ensure that it will do as much as it can for the society in terms of charity. 2roduct assortment and placement.

8eaknesses
5he weaknessesF which the company has to focus on and get rid of themF are as under. 4o paperless environment. 5he company needs to develop an integrated computeri!ed system to make things happen efficiently. 4on availability of a website. Cocus on only one city that is 6ahore. We need to reach out to as much cities as we can to gain more market share. 4o 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 ma)imum number of customers. 6ess communication among various functional departments. (mployee politics.

+$$ortunities
5he ma&or opportunities for the company are as under. ()ternal markets. 5he company can advertise and introduce its outlets in other cities of 2akistan to gain more market share. 0rowth by vertical integration. i. ;ackward )ntegration :y growing through backward integration we mean that we will become the supplier of all the input materials. 4ew housing and industrial units. It is a big opportunity for the company to open outlets in the new housing and industrial units. 2ublicity through trade shows.

T#reats
5he ma&or threats to the company are as under. +ompetitors such as 4estleF She!an D Malee in the field of beverages industry poses threat for gourmet. All restaurantsF all ma&or dairy products manufacturers. 6aw and order situation of the country. 7il pricing in the country. 2olitical instability. (lectricity shortage.

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S8+T MAT4): C+MPA4)S+! +( S8+T A!A,-S)S Strengt# +$$ortunities

8eakness

T#reats

According to this concept strengths can be converted in to opportunities or weaknesses can be converted in to threats or opportunities so in SW75 all the four factors like strengthsF weaknessesF opportunities D threats are interlinked.

MATC9)!'@ C+!&E4T)!'@ M)!)M)Z)!' 7 A&+)%)!' ST4ATE')ES1

0ourmetGs strengths like technologyF best qualityF reasonable prices and own distribution network can be used to e)ploit opportunity of e)panding business in other regions.

7ur weakness of outdated information system for e.g having no websites can be converted into strength by introducing latest information technology.

C*44E!T ST4ATE'We can e)plain 0ourmetGs current strategy on the basis of marketing mi)>8 'B

Product Strateg
0ourmet will offer variety of fruit &uices to cater the needs of various market segments eg it will offer fresh fruit &uices by following new product strategy as MA;%(5 4I+"(;. 0ourmet will also offer energy drinks #specially young peopleF sports man etc$ and also sugar free fruit drinks. (ven it is offering various fruit &uices in different packing like tetra pack #'-E M6 D 1.-M6$F :ottle &uices #-EEM6$.

Pricing Strateg
5he pricing strategy of 0ourmet is market $enetration. 2rices of 0ourmet fruit &uices will be lower than their competitors 2rice is certainly itGs competitive advantage for e)ample it will offer 1 liter pack &uice with 1-8'EI less in price than its competitors e.g. 4estle1 liter &uice #0uava.2ine apple.7range is ;s. 1' D She!an is ;s.** while gourmet is planning to offer &uices in same packing but with less price.

Promotion Strateg
Anlike competitors 0ourmet is not using Main media. We will use point of sales promotion #272$FF postersF broshuersF 6+, 5/F Sales promotion for consumer with push strategy for the promotion of fruit &uices. Although itGs strong private brand label that will be supportive in running itGs fruit &uices business.

Place.%istribution
With itGs four processing units and 1B sales outlets plus B outlets are under construction they try to reach out to a huge population for their needs. So due to itGs reasonable number of outlets located at various places #from low to middle class consumer markets$ it can easily provide variety of itGs fruit &uices to the customers. 0ourmet will also serve its drinks in itGs restaurant. 0ourmet is following corporate virtual marketing system in which the retailer also own the manufacturing and distribution channel.

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Positioning
Positioning Ma$ <;- P4)CE.A*A,)T-=

9ig# Price
!estle@ Coca Cola7S#e"an 9aleeb

9ig# Aualit . 'ourmet ,ow Price .

S#e"an

,ow Aualit

7ver a period of two decades gourmet has positioned its products as quality products in the minds of the customers. M07A;M(5 @AA6I5< 07A;M(5 2;I+(SH. 5he 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 &uices business

C+4P+4ATE C*,T*4E
'-

5he culture of 0ourmet is certainly democratic where there is an open door communication between employer D employees. 5his thing creates a feeling of self respect within the employees and motivates them to work for growth of their organi!ation. 7ne of the main ob&ective is to facilitate customers by providing them with good serviceF good quality building good relation ship and accommodating them in a best possible way. 5o improve the capabilities of our employees we give training sessions to them at operational level to make them understand how to deal with customersF helping them in making decision after knowing their needs. 7ur corporate culture involves in it a hygienic environment which is maintained every where i.e. from manufacturing plant to outlets. 0ourmet 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.

()!A!C)A, A!A-S)S
0ourmet has invested =EE million on its beverages plant. 5heir main financer.banker is +itibank. Apart from investment they have total of 1B outlets out of which - outlets are on rental basis and =3 outlets are owned by them. And from this huge investment they are e)pecting return on investment #;7I$ from 1E81- I. 7ur break even sales volume will be =?1- 6trs.day in the first year and there after we will further enhance it by 1EI in proceeding years.

ST4ATE')C A!A,-S)S
6e Strategic )ssues
,istribution +hannel 7wnership Strong 2rivate label brand #developed by whole seller and retailer$ and this is the first private brand in 2akistan among :akers D +onfectionaries that competes with national brands like nestleF coca cola with their low price and high quality offerings.

'=

ST4ATE')C T++,S
Product ,ife C cle

)!T4+%*CT)+! #our present stage$

0;7W5"

MA5A;I5<

,(+6I4(

7ur marketing ob&ective is to create a product awareness and trial of it. As our product will be at introductory stage in which we are e)pecting low sales because of huge competition that we have already discussed in competitive analysis. We are offering fruit &uices at low rates and e)pecting negative profit in the very beginning but for the growth of our product we have made following strategies of it. '1

Initially we will offer a basic product means by keeping the available packages #pack si!e$ 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 26+ model.

;C' MAT4):

gourmet
cash cow

Growth ate

,og

!arket "hare As we are launching fruit &uices and we will try our level best to put it in category of S5A;S #by getting high growth D high market share$ of :+0 matri). 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 &uices due to change in behavior of consumers towards natural product #because of health consciousness$.

)%E!T)()CAT)+! +( ST4ATE')C A,TE4!AT)&ES

'3

As we are following multi product strategy in which we are not only launching fruit &uices but also other items to sustain gourmet business and making brand e)tension along with other product lines that will act as an alternative to each other. Cor e)ample first we launched gourmet milkF then gourmet water and then gourmet colaF further gourmet fruit &uicesF gourmet squashes D gourmet powder milk are included in our future pro&ects. 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.

)%E!T)()CT)+! A!% A!A,-S)S +( 7 C9+)CE +( A,TE4!AT)&ES

We have different alternatives to support our business or to minimi!e our loss. Invest more Wait D see "arvesting Start ,ivesting.

A4'*ME!TS +( P4E(E44E% C9+)CE

5he preference will be made on the kind of situation we are in so accordingly we will take a decision.

ST4ATE')C 4EC+MME!%AT)+!S
T94EE -EA4S ()!A, +;5ECT)&ES
7ur B years annual ob&ectives include launching of multiple products regarding beverages i.e dairy products #gourmet powdered milkF gourmet pasteuri!ed milkF D gourmet fruit &uices$ that will support each other sales. 5his will also result in increasing the turn over.

ST4ATE')C )!TE!T
7ur long term plan is to get ma)imum market share through cost leader ship. 0ourmet 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.

'?

5he strategy behind launching fruit &uices is to get ma)imum turn over. i.e %eeping customers stick to our brand through cost leadership strategy. (stablishing outlets at national level.

+PE4AT)!' P4+'4AMMES T+ AC9)E&E %)&E4S)TAs we are consistent with e)isting Cood product line that is in growth stage and will stay in the same product line so we donGt have any operating programmes to achieve diversity. Anless we do not capture the whole market to its ma)imum level along with stability we will not go for it.

T4)''E4 <C+!T)!'E!C- P,A!=

5his is a basically situational plan which we used to divest unproductive product and promote profitable products. +urrently they have a plan to launch fruit &uices 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. 7ur 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. Ander prevailing economic crises there is probability of increase in production cost due to high inflation rate and imposition of new ta)es. 0ourmet has planned to reduce cost by and backward integration.

MET9+%+,+'- +( 4ESEA4C9
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We have no special marketing teams or ;D , department. Cor 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. :ut now we will establish marketing department along with ;D , department. We will conduct surveys of customers to find out there preferences about 0ourmet products and analy!e sales reports to identify significant trends. 5he ;D, department will be responsible to perform situational analysis.

)MP,EME!TAT)+! 7 C+!T4+, MAT4):

May E1F 'EE? to May E1F'E11 2roduct #5esting D 6aunch$ 5ime Crame May E1F E?84ov E1F'EE? +ontrol Measures Survey current customer about their likes and dislikes 2ricing #Maintain price$ 4ov E1F'EE?8 4ov E1F 'E1E /erify if the market share is increasing or not from monthly sales report.

B1

7ffice Automation (mployee training seminars

Ceb E*F 'E1E

/erify available force

updated with

systems

are

appropriate

software and evaluate the sales

2romotion

May8 ulyF 'EE?

Survey to measure popularity

4E(E4E!CES1
8ebsites1
www.she!an.com.k www.nestle.com www.haleebfoods.com B'

www.coca8cola.com

!ames
Mr. Ali Surat Mr. 9ubair Mr. Ali Ahmad ++7 0ourmet 0M 0ourmet :everages 2lant Manager Shop

Mr. Ma!har "ussain Manager Shop

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