Marketing Plan
Gourmet Soft Drinks
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Introduction
T he following marketing plan forms the basis for the introduction of an
innovative new product by the Gourmet. The analysis allows us to outline the best strategies to follow for the achievement of the company’s strategic goals. “Gourmet Cola” is marketed as a unique fizzy drink while striving to reinforce the company’s status as the leader in innovation and successful product launches like gourmet dairy which is a huge success. Success of gourmet cola will be reflected by a sizeable capture of market shares within the market, while strategically carrying the company up to the top spot as the market leader in the segment of soft drinks while they enjoy their success in confectionery and dairy products. Executive Summary: “Gourmet Bakers and Sweets” is the largest food retail chain of Pakistan. It is in Lahore, the second largest city of Pakistan known for its traditional foods and passion for eating. With more than 90 sales outlets gourmet outreach to a huge population for their food needs. The company has shown annual growth of more than 30 % 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 unmatched displaying manner, Gourmet has become a success story of business in Pakistan. At moment gourmet have almost 1700 employees working in the organization. Gourmet Bakers is one of the fastest growing local baker and confectioner stores in Pakistan. Being a local company, their approach towards business is both professional and highly aggressive. Gourmet now has an outlet in almost every nook n corner of Lahore and also an outlet in Jinnah Super Islamabad. Think of any suburb of Lahore and you'll surely find a bright orange signage with a big bold Gourmet written in bright white. Started as a bakery and sweet shop, soon turned into a medium sized cash n carry retail outlet and has further expanded into launching a number of successful company owned products, ranging from milk, ice creams, rass malai and many more. Gourmet Cola: The recent and probably the most impressive launch has been Gourmet Soft Drinks. Gourmet cola is a fizzy carbonated soft drink. The strategy of this drink is to give same equivalent taste as of international brands in fewer rates and emphasize consumer to buy local drink. Gourmet soft drinks are available in six flavors.
Gourmet Cola (Original Caramel Flavour) Gourmet Malta. Gourmet Lemon Up. Gourmet Twister Gourmet Apple.
Gourmet Cola is quite reasonably priced at PKR 45 for one and a half liter bottle, a much lucrative offer as compared to the PKR 65 price offer by the international competitors Coke & Pepsi. Gourmet has cancelled a yearlong contract of worth PKR
15 million with Coke and removed it from all company outlets to promote its own brand. SITUATION ANALYSIS Market Summary Soft drinks attract all type of consumers. People of all age group like soft drinks with their snacks, meals, meetings etc. An in-depth analysis of different categories of soft drinks during the period, that are Carbonates sales produced not a smooth raise but instead after some time gave a rigorous incline, which is very much similar to Bottled Water sale market, only the difference occurs is prior product return or growth inclined double in pace respected to its previous record; still they are not in comparison to Carbonate drinks. Whereas the market record for functional drinks and juices have kept a smooth incline over the years. The cause for the market positive growth towards soft drinks can be estimated to multiple reasons falling into increasing population trends towards soft drinks intakes such as weather perceptions, Pakistan climate face through the year warm and humid weather conditions which causes dehydration and increase in thirst. Although this condition is considered to be continues as liquid is 75% of human body part but during the time line due to the increasing society awareness towards marketed products have put forwarded a large impact on the growth of soft drinks sale. Invention of energy drinks and their intakes have become a fashion trend and life necessity. Market competition between soft drinks brands such as Coca Cola and Pepsi have presented various commercial profitable schemes not only to increase the sale of growth but to stand in competition. Soft drinks are not only considered a liquid intake but a life standard necessity between friends, colleagues and family affairs, which major concerning party is marketing field, advertisements. Holidays and particular religious events such as Eid and Fasting month triggers increase in their prices and sales. These increases in sale revenue are independent of season or weather conditions. The events may fall is warm weather increases their sales but in other seasons such as winter the sales does not get affected but keep a steady outline.
S.W.O.T Analysis: Strengths: Firstly Gourmet is priced at a lower level than that of its competitors. Secondly Gourmet is a Pakistan based company and people tend to adopt its products with more ease keeping in view national pride. Thirdly Gourmet Cola is a product of Gourmet bakers which already has managed to gain the trust of consumers when it comes to service, quality and corporate responsibility. Due to this people are already aware of the brand and in return will have a higher tendency to adapt to Gourmet Cola. Weaknesses: One of the major weaknesses of Gourmet is the lack of availability in stores other than Gourmet Bakers itself. Importantly gourmet bakers have branches only in Lahore. The reason behind this is that the distribution channel of Gourmet is not very effective whereas Coke is available in every corner of Pakistan. Secondly Gourmet is not financially very strong when compared to its major rivals which are Coke and Pepsi. Thirdly Gourmet is not investing enough in its promotion and advertising which has resulted in less awareness among consumers. Lastly they are not promoting any social events that are taking place in the community which helps in creating a positive vibe with customers. Opportunities: Gourmet has the benefit of being a Pakistani company which its competitors don’t have. This is one of the major competitive factors which have the potential to make Gourmet one of the leading brands in Pakistan provided that Gourmet is able to provide constant value and quality to its customers. Since the past few years a movement has been launched by different lobbies to boycott Coke and Pepsi and this has also created a very solid opportunity for Gourmet to gain consumer acceptance. Another factor is that Gourmet Colas parent brand Gourmet Bakery has been able to gain the confidence and trust of the masses over the years and using this as a base Gourmet Cola can also gain a considerable market acceptance. Gourmet also needs to invest in social events and activities so that their corporate image can be improved. Another major opportunity for them is that they can get into contracts with major food chains all over Pakistan. Threats: There are a number of threats that can affect Gourmet. Firstly Gourmet is facing very strong competitors such as Coke and Pepsi who are well known brands all over the world. Secondly as Gourmet is a new entrant in the soft drink market they need all the finance they can get. In order to do this Gourmet needs to increase its price but at this stage they also need to be competitive and for that it is impossible for them to increase their price. Thirdly they also face the threat of new entrants entering the market.
Competition: The main competitors of gourmet cola are coco cola and PepsiCo. Both companies were founded in late 18 th century. They are leaders in soft drink industry and both have their roots in Pakistan from a very long time. Both companies are financial giants and usually buy local companies which make soft drinks. It is hard for gourmet cola to survive in market but they have edge of their prestigious local brand name for other superb products. Another competitor to gourmet cola was amrat cola. Amrat cola was also a local manufacturer of soft drinks in Pakistan. Amrat cola was a huge success at the time of launch but their sale decreased with the passage of time as Pepsi and coca cola introduced new products in market. Amrat cola has a huge edge over gourmet because gourmet cola is still restricted to Lahore and their own sale points whereas amrat cola is available all over the country and it is a success in rural areas due to fewer rates compared to major competitors and unavailability of gourmet cola. Product Offering: The gourmet soft drinks are available in different packing which are of high standards. Following is the direct comparison of gourmet soft drinks and their rivals in market. Gourmet Cola Vs Pepsi and Coke: Taste is almost similar to Pepsi or Coca Cola. It is typically the same flavour as other local companies offered before. The security of Coca Cola and Pepsi formula is not a joke, that’s why no one can easily make a Cola like them. Taste is inferior and much sweeter than Pepsi & Coca Cola. They need to improve their flavour to get a larger market. Gourmet Lemon up Vs Sprite and 7-Up: It doesn’t match with big brands like Sprite and 7Up. But in case of lemon flavour every local company manages to make it good. It might because the access of lemon flavour don’t make the taste bad where as in case of cola; if one use more flavour quantity than it will be completely in no-t o-take list. Like Cola it is little sweeter but we can accept this sweetness in lemon flavour. Gourmet Malta Vs Miranda & Fanta: In competition with Miranda and Fanta, we have Gourmet’s Malta. How good it feels with a casual name like Malta, easy to catch up consumer’s mind. How great that someone choose Urdu word for their product. Like else Lemon flavour, Orange flavour is also easy to make. However in Gourmet’s Malta the amount of carbon dioxide is less than Miranda or fanta. By increasing this we can have more fizzy touch which is a spice of this flavour.
Key to Success:
Main key to success for gourmet cola is its price and its wide network of sales point in Lahore. There are some issues with the taste which can be made better and gourmet cola can increase its sale. Gourmet cola also lacks behind in packing of soft drinks in different format, such as cans etc. Gourmet cola can be a huge success as people of Pakistan are loyal to local brands if they give same standard as of their rival international brands. Another point which can make gourmet cola a success is availability of gourmet cola in different fast foods. International fast food chains like MacDonald’s and KFC sell Pepsi and coke with their deals. There are huge numbers of local fast food chains which are now well established. Gourmet can easily mold them to sell gourmet cola instead of international brands by giving them better options and deals.
Critical Issues: The main critical issue for gourmet cola is strong financial and market stability of its rivals PepsiCo and coca cola. They have invested a lot of money in marketing and advertisement. They won’t let gourmet cola to arise and steal their market share. Pepsi and Coke have indulged their products in people mind by strategic planning and advertisement. Pepsi also has sponsorship deals in international cricket teams. The Pakistan cricket team is just one of the teams that the brand sponsors. The team wears the Pepsi logo on the front of their test and ODI test match clothing. So gourmet cola should plan good marketing and advertisement planning to overcome sale of their rivals.
Marketing Strategy Mission: The mission of gourmet cola is to create a strong consumer awareness towards a completely new product from gourmet, to establish a wide brand recognition through the capture of market shares in the soft drinks segment, and to become the top market leader in that particular segment within the forecasted sales figures. (Proposed) Marketing Objectives: Marketing objectives for the gourmet cola should be based on AIDA model. To attract more consumers and gain market share gourmet cola should follow following model.
Awareness Interest Desire Action
Following mediums can be used for marketing • • • •
Print media Pos material TV commercial Billboards and holdings
ACTION
promotions
DESIRE
aspiration
Launch
based TV ads
at
web
Teaser
shows(Like
games, share
campaign
Coke Studio)
stories,
Sponsoring
moments,
college
songs etc
Print ads
Hoardings
festivals
portal-
Celebrity endorsements
Contests on web portals
Interactive
Sponsoring TV
and
INTEREST
Rock show
AWARENESS
Feature
Sales
Sponsoring shows
Organize sports events
Financial Objectives: The financial objectives of gourmet cola are very important to gain market share. The competitors of soft drink with gourmet cola are Pepsi and coke which are financially very strong. The main aim of gourmet cola should not be too earn from product in the beginning but to promote its product by every means. Following are the expenses in manufacturing of soft dr ink. 1. 2. 3. 4.
Manufacturing Costs – Variable Cost Advertising and Marketing Budget – Fixed Cost Administrative Overheads – Distribution – Variable and Fixed
Target Market: The gourmet cola soft drinks are generally for all consumers. People of all age group enjoy soft drinks. However, there are some brands, which target specific consumers. For example, gourmet diet soft drinks are targeted at consumers who are older in age, between the years of 25 and 39. Kids also like to drink gourmet Malta as it is less carbonated than original caramel flavor. Positioning: Gourmet soft drinks are available in different and attractive packaging. It is only local brand competing with two international soft drinks brands Pepsi and coke. Gourmet cola is cheaper than its rival products. Gourmet cola is only available in Lahore in only selected sales outlets, it is not available in all general stores and super markets. Following is the complete range of soft drinks offered by gourmet.
Gourmet Cola (Original Caramel Flavour) Gourmet Malta. Gourmet Lemon Up. Gourmet Twister Gourmet Apple. Gourmet Ice cream Soda Gourmet Diet.
Gourmet offers its soft drinks in following range of bottles. • • •
1.5 Litre plastic bottle 1 Lire plastic bottle 300 & 500 ml disposable bottle.
Strategies: The gourmet uses marketing strategies to differentiate its product from its competitors to gain a competitive advantage. There are many strategies kept in mind when selling a product. It includes pricing strategies, promotional strategies and placing strategies. Gourmet cola has done well with its pricing strategies as it is
less in price than its rival. Gourmet cola is very weak in promotional and placing strategies. Gourmet cola should emphasis on advertisement and availability of its product country wide which also include indirect selling. For providing their product in good manner company should provide infrastructure these includes: • • • •
Vizi coolers Freezers Display racks Appealing bottles
Marketing Mix: Marketing mix is combination of following four things.
Product
Pricing
Place
Promotion
Product: The gourmet soft drink products include beverage concentrates and syrups, with the main product being finished beverages. The business has over 6 brands each of which has different taste. The gourmet packages its beverages into plastic bottles of sizes 1.5 liters, 1 liter, 500mL and 300mL. These are not available in aluminum cans of 375mL as all other brands available in cans which attract more youth. Gourmet is the most well known trademark, recognized by 94 per cent of the Lahore's population. The business is very successful and holds a very good reputation in field of dairy and bakery. Price: The prices of gourmet cola vary according to the size. The price of 1.5 liter plastic bottle is Rs. 45. The gourmet cola products pricing are set to a very low level as its competitors. Place of distribution: The gourmet uses the intensive distribution strategy for its gourmet cola. The business's products are sold in almost every outlet of gourmet bakery. There are more than 90 outlets of gourmet cola now in Lahore. Promotional strategies: The business uses a range of promotional activities. The gourmet uses advertising as its main source of increasing consumer awareness. It mainly uses the sign boards. There are many television advertisements on gourmet products on local cable channels. This source allows the company's products to reach a large audience living in the city. The gourmet bakery has highly trained sales team, which acts as a representative of the product and promote people to buy gourmet cola. This strategy helps to maintain service and product loyalty. It has been demonstrated by the business to be highly effective.
