Case Report No.

Gourmet Foods Pvt. Ltd.

Introduction

Gourmet bakers and sweets is the top food retail chain of Lahore. Lahore is the second
largest city of Pakistan fabled for its customer aliment and amorousness for eating. 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.

Company Name- Gourmet Bakers & Sweets (PVT) limited.

Gourmet is a private limited liability company and the information regarding its share is as
follows:

Registered office address: 9/D Faisal Town Lahore.

Authorized Capital: 20,000,000.

Paid up Capital: 50,000.

CEO name: Ch. Muhammad Nawaz Chattha.

CEO Address: 9/D Faisal Town Lahore.

Incorporation Date: January 9, 1996.

Authorized Capital Share: 200,000.

Paid up Share Capital: 500

Authorized PER Value: 100

Paid up PER Value: 100

Vision

“We are a bakery company with one goal in mind to meet the needs of our customers we focus
on our customers as our clients.”

Mission Statement

“To provide delicious, wholesome baked foods without sacrificing health and well-being.”

Company 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.

Organization Structure of Gourmet
Portfolio Analysis (B.C.G. Matrix)

Gourmet bread and other bakery Products come under star as they have a high relative
market share and high growth rate. They are in maturity stage of its product life cycle.

Gourmet Cola, Gourmet Water and Dairy Products are Cash cow products for Gourmet
as they have a low market Growth rate and a high relative market share.

Gourmet new products like Dry Milk and the same for Tea as well come under Question
mark. Or any other new product that Gourmet offers or is planning to offer will come in question
mark category.

Gourmet Roll and Samosa Patti have a low market Growth rate and a low relative market
share therefore, these products come under Dogs and therefore Gourmet has discontinued the
production of these products.
 Interview

Reference: Supervisor

Mr.Iftikhar Gourmet Johor town G I branch

Phone: 5304318

Who are we?

“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 our 2 processing units and 28 sales outlets we outreach 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.

What we do?

We produce and sell all kinds of breads, buns, rusks, cookies, biscuits, cakes, pastries,
pizzas, patties, meat rolls, vegetable rolls, sandwiches, hotdogs, nimko and doughnuts etc. In
sweets, (traditional milk based Indian sweet products) we deal in all sorts of traditional products
like burfi, chum chum, gulab jaman, rassgulla, patisa, jalebee, amrati, ladoo and rass malai
etc. We dedicate our shelves for retail of products like juices, soft drinks, pickles, jams and
jellies, dairy products, ice creams and desserts, baby formulas, canned vegetables and fruits,
drinking water and cereal products from the world leading brands.
What we look forward to?

In pursuit of our continuing efforts to provide our consumers with maximum range of quality
products we are:

1. Doing backward integration for the provision of best quality raw materials for our
products. In this regard setting up a self-milk collection system and a dairy plant for the
production of raw cheese and khoya (the two main raw materials of all sweet products) is
our new move.

2. Constructing a start-of-the-art bakery plant, where the facility and systems are being set
up to meet all the requirements of food safety system ‘HACCP”.

3. Extending our retail outlets in Lahore and other cities of Pakistan to outreach the awaiting
consumers all over the country.

4. Providing best services as third party retailer to sell innovative food products to be sold
out at our outlets.

Bakers and sweets

With a network of 2 Production Units & 28

sales outlets we spread out our presence in every part
of Lahore, the second largest city of Pakistan.
Consumer satisfaction in product quality and service
is the zeal of our business

Restaurant chain

In continuance of our business tradition of providing quality foods and unmatchable

service for the health and happiness of whole family, Gourmet has set up a family restaurant
chain.
Gourmet Family Restaurant, right in the middle of the city is our first endeavor in this line. The
ever-swarming situation around the clock is
an indication of unwavering trust of
consumers in Gourmet.

Gourmet dairies

Gourmet Dairies is another step forward to provide its consumer with wholesome milk
and milk products. This is also a sort of backward integration for the provision of dairy raw
materials for bakery and sweets products of Gourmet. A self-milk-collection system that has
started to provide fresh and pure milk to Gourmet’s sweets processing unit is a unique example
in this reference.

Outlet’s network

With a network of 25 sales outlets we spread out our presence in every part of Lahore, the
second largest city of Pakistan. Consumer satisfaction in product quality and service is the zeal
of our business.

How hiring is done?

 Through advertisements in newspaper

 And social media
Product Lines of Gourmet:

Some of the major product lines are:

Sweets:

It has a huge product length in sweets like Gulab Jaaman, Barfi, Laddoo, Cham Cham, Halwas,
Rassgula, Patisa, Jalaibee, Amarti, Ras malai and others.

Bakers:

It includes Bread, Buns, Rusk’s, Cookies, Biscuits, Cakes, Pastries, Patties, Pizzas,
Nimko, Vegetables rolls, Chicken rolls, Hot dogs, Sandwiches.
Dairy Products

It includes milk and ice cream products.

Beverages

It includes Gourmet Cola, Gourmet ice-cream soda, Apple Sidra and Gourmet Lemonade etc.

Filtered Water

It also offers gourmet water.

 Marketing Strategy

Customer driven marketing strategy

Market Segmentation

Consumers can be grouped and served in various ways based on following segmentation
variables:

Geographic Segmentation

Gourmet is currently in function in cities “Lahore, Gujranwala, and Rawalpindi”. It divides

Lahore in several divisions according to its customers or potential customer’s availability.
Demographic Segmentation

It caters all kind of different segments in demographic segmentation within Lahore.

Psychographic Segmentation

Gourmet caters every social class, especially middle class.

Behavioral Segmentation

Gourmet tries to cater different occasion in Lahore like Eid, Ramadan, Christmas,
Valentine’s Day and Independence Day. It also believes in providing benefits to customers, their
main target is to capture maximum market share by providing easy access to its customers in
every area.

Market Targeting

Gourmet does the differentiated target segmentation. Gourmet does not impose an
income barrier to its client and caters all kind of people with different incomes. Its main aim is to
target all segments of customers with in Lahore hence covering a huge audience for its Target
market. It caters from upper class to lower class.

Market Differentiation and Positioning

Gourmet differentiates the market offering to create a superior customer value. Gourmet
position itself as a medium store, as its quality is good and prices are less as compared to the
market. That’s why the Customers of Gourmet are increasing day by day. It believes in getting
negligible profits margin and getting bulk of sales as the already have a huge customer equity. It
also position itself in market by increasing its presence by having around 95 functioning
branches (the largest for any bakery in Pakistan). It also differentiates it products by providing
ultimate services on its outlets like cleanliness, user friendly customer assistants and healthy and
hygienic environment.
Marketing Mix of Gourmet

Product

Products of Gourmet show attributes like quality, features, style and design. Its quality is
always good and innovative having differentiated features. Gourmet designs begins with the
deep understanding of customer needs when Gourmet develops its new product it is always
based on customer perception and needs. It more focuses on benefits for customers not profits.

Price

Gourmet earns low and negligible profit that’s why its prices are always less than market.
It keeps low prices according to market penetration pricing strategy in order to attract a large
number of buyers and a large market share. Gourmet uses value based pricing when setting
prices which is based on the perception of value rather than on the sellers cost.

Place

Being accessible to customers increases the value for customers. Gourmet is a market
leader as “Gourmet Foods”. Its growing size of all branches has become more easily accessible
and convenient to customers. It has around 95 branches in Lahore.

Promotion

Gourmet does its promotion only in its stores. Whenever it introduces its new branch it gives
25% discount which is for promotion and other promotion mix tools used as sales promotion
which is short term incentive to encourage the purchase of a product. Its public relations as they
are very kind and helpful to their employees. Recently it has started promoting its products on
local TV channel “City 42”.
Marketing Planning

Gourmet follows the company strategies which are in line with the company’s goals and
recommendations. It position itself as a leader in bakery products in Lahore. Before making any
plan it considers its impact on its current customers, environment and competitors’ response. It
also considers current threats with in the market like losing market sale, brand image etc before
making any plans. Gourmet focuses on all the available opportunities in market related to its
business like launch on gourmet cola, milk ice-cream. Once it decides its main objectives and
issues then it steps forwards to the action plan which consists of detailed schedule of the entire
task and their budgets. Once Gourmet finalizes its plan it implements its plan and keeps on
checking its performance to control its outcome.

Marketing Implementation

After having a detailed discussion and planning gourmet comes towards the
implementation phase of their marketing strategies. In implementation the company’s formal
organizational structure plays and important role. Managers not only focus on short term profits
but they also consider long run market building objectives. On the other hand company also
considers its culture in implementing a plan.

Marketing Control

Gourmet focuses on two types of marketing controls operational and Strategic. In

operational controls it checks that all the operations are in line with the current marketing
strategies. Whereas strategic controls focuses on long run and check the long run performance of
the company. It also have an internal audit department which keeps a strict checks not only on its
financial performance but also on its procedures and controls which effect in every day
performance.

The Marketing Environment

P.E.S.T. Analysis

 Political – meeting all the policies and working under the political stabilities
  Economical – focusing the income levels of targeted customers
 Social – the social class we have targeted are:
 Technological– accepting and using the innovations in technology for production
 Demography – gourmet deals with a variety of demography. It caters all kind of age
groups starting from children to adults.
 Culture – Gourmet keeps itself in line with the local culture of Lahore. It provides
different products according to local festivals events and Religious days.

o Lower medium
o Middle medium
o Upper medium
o Lower upper

The Company’s Micro Environment

 Market Intermediaries

Gourmet does not have any major market intermediaries as it produces and sale it products
itself. It does contact market intermediaries for supply of raw materials, and products like
Coca cola, Jams, Ketchup, and Juices etc.

 Competitors

If you look at Gourmet Foods, it is a clear market leader but still Gourmet has competitors.
Nirala and Shezan bakers are the competitors of Gourmet as these are the only few stores who
are catering the same market as gourmet is going. They also have well established brand name
and image. They are fully equipped with latest technology and manufacturing plants, but these
competitors are only targeting small segments of the market. They are not upgrading themselves
that is why in the race of capturing market they are staying behind the market leader “Gourmet”.

 Suppliers
o Local dairy Farms.
o Whole sellers.
 o Market intermediaries.
 Customers

Customers of Gourmet are End user of the product mostly. They buy to consume the final
products and services.

Customer Relationship Management

Marketing Objectives

Goals and targets have to be monitored and met, competitor strategies analyzed,
anticipated and exceeded. Through effective use of market and marketing research an
organization should be able to identify the needs and wants of the customer and try to delivers
benefits that will enhance or add to the customers’ lifestyle.

Marketing Strategies

Gourmet bakers adopted customer’s oriented marketing strategies to attract customers as

much as it can. Gourmet bakers follow differentiation strategy such as strategy emphasizes the
product that is unique in the industry provides distinct advantages to the bakers.

One of the prominent marketing strategy of gourmet bakers is focusing on special classes
of customers like gourmet bakers is focusing on upper class, middle class as well as the lower
class.

Critical Issues

 Political instability and economic conditions of the country are immensely affecting the
business sector in the country.
 Threat of Bomb attacks in any crowded place due to Terrorism also imposes an effect
which leads to decreasing sales of the business as people now think before coming out of
their homes. Furthermore, terrorist activities are weakening the Pakistan economy day by
day. Such kind of issues may impose a bad effect on the Gourmet business in the future
 SWOT Analysis

Strengths

 Gourmet is one of the strongest brand names in Lahore.

 Strength of Gourmet bakers is a quality product with reasonable price
 They follow their strategies in accordance with customers mind.
 Gourmet is a clear market leader.
 It is easily accessible almost everywhere in the city.
 They are following concentration on customer’s needs and mind along with suitable
price.
 Gourmet does not give franchise or partnership to anyone. They are operating all the
branches by themselves.
 There is a one more affirmative from gourmet bakers is its generic color.
 Strong distribution channel
 High market share
 Customer Retention

Weaknesses

 Gourmet is not focusing properly on promotion tools such as advertisements.

 Proper Parking is not available on each and every branch.

Opportunities

 Many cities to capture

One of the most important opportunities is that Gourmet can increase their target market by
capturing other cities which consist of the potential customers.

 Brand Worth:
Gourmet is the well-recognized brand nationwide which means the worth of the brand is good in
the mind of the customers. Because of the brand worth Gourmet can come up with the different
market of bakery products.

 New market to explore nationwide and internationally:

It is the great opportunity for Gourmet to expand their business and market by exploring the new
markets nationwide and internationally.

 Home Delivery

 E-shopping

Threats

 Change in the consumer preference:

Changing of consumer preferences is a major threat of any organization. As if we talk about

Gourmet sweet now people prefer cakes over sweets which have become a major threat.

 Lack of new technology

 No innovative product.

Implementation

Living is a basic need and first step in Maslow hierarchy of needs. Then there is safety that
gourmet hotel will be providing, then the people with the specific class can afford living in thids
hotel, mediocre and upper class.

Suggestions

Following are the suggestions for gourmet to improve its market as compare to its competitors.
  They are just focusing on product extension but they also need to improve their quality.
 They need to provide hygiene food to customers because lack of it would cause of brand
switching.
 They also need to work on digital media because they not only computing with local
brands like shezan. International but also with international brands like coca-cola and
nestle in specific products.
 They also need to make their product available on every outlet.
 They need to improve their layout of the outlet in order to attract customers.
 They also need to improve their graphic regarding to products label like gourmet cola
graphic is not of good quality.
 They need to develop stimulus generalization for their products.
 They need to make some interpretation regarding to stereotypes like good and effective
slogan and also use any personal source.
 They need to improve their activities in the form of organizing seasonal festivals,
carnivals.
 By improving all the essential points gourmet can make its customers ethnocentric.

Conclusions

The analysis of the data provided by the supervisor shows that the Gourmet bakers and sweets are

striving to get a competitive advantage against its customers but there are some problems too on

which the company should concentrate because they serve many other factors respectively

1. First of all the company should concentrate on offering incentives and benefits to its old

employees who are serving the company for more than one year. They should be given

family benefits and compensation by doing this the company could reduce its turnover rate.

Because when the employees are satisfied they can serve the customers more efficiently

and they are also committed to the job and company.

2. And secondly they should reduce the employee work hours.10 hrs job is a long period and

the employee gets bored and loose interest in the sales .Therefore it should be 8 hrs .
3. The company haven’t advertised themselves through media; they should have adopted

some other source of advertisement to cater the market. Well they are well known in the

market but they should use TV media for their advertisement, they could also advertise

themselves on the cable in the areas in which they are having their chains.

4. The name of the company is easy to pronounce for those people who know that they have

to keep the ‘T” silent in the logo of Gourmet but some people pronounce it with “T” and

then the pronunciation of the name of the company becomes very difficult.

5. The Gourmet bakers have their branches only in Lahore which is the draw back of their

marketing strategies. The company should also open its outlets in other major cities. And

spend capital on advertising the company in those cities.

6. The employees of the company should be aware of the marketing plans of the company;

they should know that how much profit the company is earning and what place they owe

in the market.

7. The company has no system of motivating its employees. So that, they could work with

more interest.

8. The company is not planning for the loyalty of its customers. They should give discounts

to its regular customers. In this way the customer’s sincerity with the company will grow.

9. The Parking area of the Gourmet bakers should be enhanced if their customers face

problems in parking .then the customer would prefer to go on some other store to find

convenience rather than buying for the Gourmet.

10. The company should increase the quality of the new products the company has offered

(milk and ice-cream) and they should also concentrate on the advertisement of the new

product seriously.

11. The company should take feedback from the customers by personally surveying home to

home and asking questions about the products and improvement they should do .they

should concentrate on the requirement of the customers.

 12. As the people are weight and diet conscious today so the Gourmet bakers should introduce

sugar free sweets and cakes for those people this will help in their promotion and it will

give an impact that the company is customer conscious. And it will also be a competitive

advantage for the company.

13. They should be concentrating on the quality of their products so that the customers

wouldn’t be returning the goods back and thus the image of the company wouldn’t be lost

in the eyes of the customers.

14. The company should communicate its goals to its employees.

Recommendations

 Gourmet must use new technology like Information system to centralize its Database as
its service and data requirement will greatly enhance it will need processes like Data ware
housing and data mining.
 It can also improve its security measures by implementing security cameras
 Up to date scanners radio frequency bar code readers (RFID’s) will improve its
departmental services efficiently and effectively.
 Gourmet should also work for enhancing the parking area.
 Gourmet should also do work for innovation in products and for the atmosphere of its
stores.
 Gourmet Bakers have their branches only in Lahore which is the drawback of their
marketing strategies. The company should also open its outlets in other major cities and
spend capital on advertising the company in those cities.
 The company is not planning for the loyalty of its customers. They should give discounts
to its regular customers in this way the customer sincerity with the company will grow.
 Gourmet has not advertised themselves through media; they should have adopted some
other sources of advertisement such as banners, newspapers, TV channels to cater the
market. Recently it has started its promotion on “City 42”.

This term report is a precise application of all the marketing techniques which we studied
in consumer behavior in order to evaluate the level of satisfaction of consumer choice and their
satisfaction. In the end it is suggested to gourmet that to get high profits, strong market rather
than its competitors and also to satisfy its customers gourmet should need to resolve these
problems.