BAKERS & CONFECTIONERS
M A R K E T I N G
P L A N
A y e s h a A r s h a d 0 6 Fiza Shakoor 42 M e m o o n a H a n i f 2 2 Waqas Shehzad 56
EXECUTIVE SUMMARY SITUATIONAL ANALYSIS 2.1. Company 2.1.1. Background 2.1.2. Scope of Operations 2.1.3. Vision & Mission 2.1.4. Goals Goals & Focus Focus 2.1.5. Strengths & Weaknesses 2.1.6. Market Share 2.2. Context 2.2.1. PEST Analysis 2.2.2. Opportunities & Threats 2.3. Competitors 2.4. Customers 2.4.1. Survey
1 1 1 1 2 3 3 3 4 5 5 6 6 7
M ARKET SEGMENTATION 3.1. Target Market And Company’s Position 3.2. Market Description 3.2.1. Upper Class 3.2.2. Middle Class 3.2.3. Lower Middle
8 22 22 22 22 23 24
ALTERNATIVE M ARKETING S TRATEGIES M ARKETING S TRATEGY 5.1. Product 5.1.1. Product Line 5.1.2. Current Product Line Analysis 5.1.3. Proposed Strategies for products 5.1.4. Service Aspect of Product 5.2. Price 5.2.1. Factors Affecting Price Setting 5.2.2. Marketing Objective 5.2.3. Nature of market and demand: 5.2.4. Pricing Strategies of Gourmet 5.2.5. Recommended Pricing Strategies 5.3. Placement 5.3.1. Current Placement Strategy 5.3.2. Recommended placement strategies 5.4. Promotion 5.4.1. Current gourmet strategies 5.4.2. Recommended Strategies
24 25 25 25 27 27 29 29 29 29 29 30 31 32 32 33 34 35 36
6. CONCLUSION
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Gourmet has ventured into the akery section by introducing good quality prod cts at affordable prices. Gourmet is a well-know bakery in Lahore. Till now gourmet has prov ded good bakery items to Lahore and now have a very strong position in the market and if they aunch something new it will really click! Up till now gourmet has co ered the segment, which wants food at a very economical price. Gourmet was unable to an exten in providing high quality products for those w o want very high quality products but now we will pecialize in these things, maintaining their edge p ricing. No doubt, gourmet is econo ical but still mostly the cake stuff is not liked by the upper middle and elite class or people who are ake lovers. Gourmet pizza lack variety as well as quality and taste. Gourmet has to work a lot on quality improvement in order to sustain in th market. Due to increase in product range there is the need to focus on individual products along ith focusing as a whole. This document implies curr nt marketing strategy of Gourmet as well as fo mulation of new marketing strategy backed by sur ey research. It addresses issues regarding product, price, place and promotion and make recommendations for addressing each of the strategic issue.
2.1. COMPANY “Gourmet Bakers and Sweets” is the largest bakery and confectionary retail chain of Pakistan. It is based in Lahore, the second larg st city of Pakistan known for its traditional foods and passion for eating. With 3 processing units nd more than 70 sales outlets, Gourmet reaches out to a huge population of Lahore for their food needs. It provides them quality within most economical prices. The company has shown an explo sive annual growth of more than 25 % in its busi ess since 1984.
2.1.1. Background It was the year of 1983 when Mr. Muhammad Nawaz Chatha, the founder of “Gourmet Bakers & Sweets” used to work for the “Shezan Bakers” as supervisor. In 1984 he started this unique business with only one sales outlet in Mu lin Town. With his commitment and strenuous effort to provide the consumers with best quality ood products in a convenient and unmatched displaying manner, gourmet has become a success story of business growth in Pakistan. In 1987 the company added a confectionary line to its products and starte to penetrate the market. In its way to become a m arket leader gourmet has taken the strategy of mass distribution. In this regard by 2004-2005 gourm t has successfully opened 40 plus outlets in al ost all the major areas of Lahore. With the gourmet’s goal to b ecome market leader it started to introduce new roduct lines, and successfully maintained its mark t share. In this regard, gourmet introduced Be erages, Milk and Ice-cream line with wide range of different flavors. By 2009 the gourmet starte to distribute its beverages outside the area of Lahore to slowly make its place in the consumers of other cities.
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At the moment, Gourmet ha s more than 1700 employees working in the orga ization and more than 80 outlets throughout Lahor . Company is also considering opening its outlet in other cities of Punjab such as Faisalabad and G jrat.
1983 1984 1987 2004 2006 2008 2009 2010
Exhibit 1.
M. Nawaz Chattha working for Shezan Bakers Opening of first bakery outlet of gourmet Addition of confectionary line 20+ outlets 30+ outlets Introduction of Beverages, Milk and Ice-cream Beverages distribution to other areas of Punjab More than 80 outlets throughout Lahore
Timeline of important events in the development of Gourmet.
2.1.2. Scope of Operations Bakers & Confectioners
Gourmet produces and sells all kinds of breads, buns, rusks, cookies, biscuits, cakes, pastries, pizzas, patties, meat rolls, vegetable rolls, sandwiches, nimko and doughnuts etc. In sweet , (traditional milk based Indian sweet products) G urmet deals in all sorts of traditional products like burfi, chum chum, gulab jaman, rassgulla, pati a, jalebee, amrati, ladoo and rass malai etc. Retailer
Gourmet has dedicated its shelv s for retail of products like juices, soft drinks, pickles, jams and jellies, dairy products, ice creams and desserts, baby formulas, canned vegetables a d fruits, drinking water and cereal products from th e world leading brands. Restaurant Chain
In continuance of Gourmet’s bus ness tradition of providing quality foods and un atchable services for the health and happiness of whole family, gourmet has set up a family restaura t chain. Gourmet Family Restaurant, right in the iddle of the city in the area of Faisal Town, is Gourmet’s first endeavor in this line. The ever-s arming situation around the clock is an indicati n of unwavering trust of consumers in Gourmet. Company has also opened a Gourmet Grill restaurant in DHA Lahore. Gourmet Dairies
Gourmet Dairies is another step forward to provide its consumers with wholeso e milk and milk products. This is also a sort of ackward 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 t is reference. This has lessened the gourmet’s depen ency on other dairy farms. Beverages
Gourmet has also added a beve age line to its product mix offering different popular flavors of beverages. This line saw an early success, however, the success couldn’t be retained in the long run. G
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Beverages is the only product lin that Gourmet is distributing outside Lahore du to high demand of this product line in small cities and sub-urban settings. Besides, Gourmet has also launched its mineral water and distributes it through its outlets.
2.1.3. Vision & Mission Mission and Vision statements ar very important for any business, whether it be a food business or any other business. Mission, Visi n statements set goals and objectives of the company and help its employees to achieve them. So th Vision and Mission statements of gourmet are p resented below. Vision
“We are a food company with ne goal in mind: to be the leader in meeting the needs of our customers. We focus on our cust mers as our clients”. Mission Statement
“To provide delicious, wholeso e prepared food, bakery, confectionary, beverages and related items without sacrificing health a d well-being”. By both, mission & vision statements, it is evident that gourmet’s maj r concern is its customers. Gourmet doesn’t onl produce a vast product line but also takes into consideration the health and well-being of its custo ers by providing healthy and nutritious food.
2.1.4. Goals & Focus In pursuit of Gourmet’s contin ing efforts to provide our consumers with m ximum range of quality products Gourmet is:
Constructing a start-of-t e-art bakery plant, where the facility and systems are being set up to meet all the require ents of food safety system. In this regard, com any is taking the approach of ‘HACCP” ( azard Analysis Critical Control Point). “HACC ” is a systematic preventive approach to food safety and pharmaceutical safety that addresses physical, chemical, and biological hazards as a means of prevention rat er than finished product inspection. Extending retail outlets in Lahore and other cities of Pakistan to outr ach the awaiting consumers all over the co ntry. Providing best services as third party retailer to sell innovative food products to be sold out at outlets. To retain the customers l yal to gourmet is Gourmet’s major goal and focus since Gourmet realized that it is always difficult to make new customers than to retain the . Focusing on providing best services as third party retailer to sell innovative food products to be sold out at outlets Recognizing the importa nce of employee satisfaction along with customer satisfaction because Gourmet believe that satisfied employees lead the company to a hieve its ultimate goals.
2.1.5. Strengths & Weaknesse s Now further we’ll discuss the ompany’s strengths and weaknesses to better understand what company is capable of and what it should do to cater its weaknesses and to be t e best among its competitors.
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Strengths
Strength of gourmet ba ers is quality product and price. Because q ality of gourmet products are defined by he customers. Gourmet follows its strategies in accordance with customers’ mind. Gourmet is concentrating on customers’ needs and minds along wit gourmet is defecting its co mpetitions through TQM.
suitable prices,
Gourmet’s large distributi n network is one of its strengths, making the pr ducts of gourmet accessible everywhere in L ahore. Having a broad product line is gourmet’s another strength, now includi g beverages and dairy products. Gourmet now has its own self-milk collection system, making it less de endent on other dairy farms. Weaknesses
The quality of gourmet pr oducts is somewhat compromised due to expansion of its product line. Poor service of employees is one of the weaknesses of gourmet due to rush hours of the day. Lack of control and authority due to expansion. The low quality Cold drin s are another weakness of gourmet.
2.1.6. Market Share Kashmir 4%
United 2%
Rahat 8%
Shezan 20% Cakes and Bakes 2%
Others 12%
Gourmet 2% Exhibit 2:
Rel tive market share of Gourmet compared with major competitors.
Through the survey conduc ted, Gourmet’s market share was projected to stand at 42% as compared to 20% for Shezan an 12% for Cakes & Bakes. This renders Gourme market leader in bakers and confectioners market.
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2.2. CONTEXT Now a day, Gourmet is known as the most well known brand in bakery and sweet industry catering the higher end of the market cont inuously improving and expanding. If we talk specifically about the sweets market we find that Gourmet is facing competition from two sides - thos who specifically deal in sweets and those who pro uce sweets in addition to other main products. The most direct competitors are nowhere near to gourmet. Gourmet’s revenu s are much ahead of competitors and their branch etwork is also largest. Therefore, Gourmet is th only bakery and confectionery company not only in Lahore but also in Pakistan. This shows t at the immediate competitors are nowhere near. Gourmet has proper setup in the form of fully de eloped company with departments which control t he different activities from procurement to man facturing till final selling to customer. Gourmet is fully equipped with latest technologies and manufacturing plants, but their competitors are only ta rgeting small segment of the market and are not been upgrading themselves making them lag behi d in the race of competition. Gourmet has big threats in akistan from Nirala and Shezan bakers in sweets as these are the only few stores who are cateri g the same market as gourmet is doing. They also have well established brand name and image. The quality of their products is also similar and at some instances, even better than Gour et. PEST Analysis for overall business prospect is given below:
2.2.1. PEST Analysis of Pak stan for a Business Prospective Political analysis
Political scenario in Pakistan ha seen many important changes in recent years. Some important events are as:
Controlled democracy Role of Army in Govern ent Grass root democracy Instability in Government Lack of accountability in ublic departments Participation of religious eople in Government Enlightened moderation policy Front role in war against t errorism Fight against extremists Reformation regarding all important fields All these changes have take place in last 9 years and it has made Pakistan ntirely a changed country. Especially Pakistan role against extremism has brought it one of the best appreciated countries of the world. On the other hand being the only Islamic country hich has nuclear deterrence it is leading the Musli world. West wants Economic analysis
Few years back , economy of Pak istan was at worst. Foreign exchange index was very low and it has to borrow even to repay loans. ebts were $38 bn. Economics indicators were showing negative signs. But then change in Govern ent brought many changes. Some positive points are as under.
Increase in GDP 6% per nnum Increase in per capita income as 8% Increase in exports up to 2.5 billion dollars Foreign exchange reserve up to 13 billion dollars G
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Privatization IT sector development More than 1 billion dollar investment per year Although economy of Pakis an is making rapid progress but there are problems of expensive petrol and electricity, which incre ases the cost of goods. Over all economic indic tors are showing very positive signs and now it is a attractive market for all types of new business a d investors. Socio-Cultural analysis
Now, trends are changing in Paki tan, people are more eager to eat junk food, cele rating occasions. Socialization is increasing day by ay so exchange of gifts increased. ` Pakistani market has shown good movement towards all types of positive indicators. Now interest rates are low, saving sche mes are giving less profits, consumers banking is at peaking, new jobs are being created by Govern ent as well as foreign investment. Income of p ople is increasing more trends towards FMCG. All these situations are calling for new and new pportunities and investors. Technological analysis
Pakistan is considered as develo ing country. Although it is nuclear power yet it lacks behind in other technologies. Now it has ade good progress in digital revolution but stil it has to import heavy machinery from developed countries.
2.2.2. Opportunities & Threa s Opportunities
Shezan’s weaknesses are t e basic opportunities of gourmet Expand their market in café Bakeries and confectioneries are not legally obliged to shut down by 8 pm Increase the chain of resta urants Expand geographically th ir stores Introduce home delivery services Expand their milk market by introducing flavored milk and tetra pack packing Instant baked facility Threats
Energy crisis Political instability Safety issues Change in life style and consumer preferences New entrants in market ( alories) 2.3. COMPETITORS Gourmet Bakers has completely changed the bakery scene in Lahore. Before the la nch of this chain in the city, we had Shezan and Ca kes& Bakes among the top bakery names. Now or the customers, Gourmet means neat and bright tores selling fresh and crispy stuff across the cit . Whether one is in an upscale area or in some part of old Lahore, one can be sure to find a Gourmet outlet near you.
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Gourmet uses price penetr tion strategy. First it charges low price and when product is established or penetrated it char ges little higher prices. With the passage of ti e, Gourmet has continued to expand its products range Products include sweets, pizza, cold drinks, Ice cream, cakes, biscuits, bread, mineral water, milk and now powder milk is also introduced. Gourmet milk is great as well. It has to be stored at 4 Ce ntigrade and must be used before its expiry date. The product range is quite v st as compared to Shezan’s and Cakes & bakes nd the quality of products is also competitive. The vast product range is a challenge for its compet tors to survive in the market. The packaging material is co lorful and attractive. The carrying bag and box i in bright orange color which is very attractive to it customers. The strategy of gourmet is v ry good. Gourmet currently owes more than 90 Outlets operating in Lahore which is a large number of outlets as compared to its competitors. ourmet currently operates 3 main production units in Lahore and more than 1700 employees. When gourmet introduced it beverages it distributed only on its own outlets. Now gourmet is distributing its beverages other than its own outlets. Gourmet promotes its produ t mainly through shopping bags. Gourmet promot s its product when opening a new outlet. Gour et only promotes its beverages. The pricing of gou met product is comparatively low as compared to its competitors. Gourmet gives no discount to its customers it gives only on some occasions like id and Christmas etc and also on opening a new ou let. Shezan
A chain of one of the oldest ba eries in Lahore. Unlike gourmet you wont have to wait in a long queue here because of less sales as compared to gourmet but their items are a littl e bit expensive as compared to gourmet. But the qu lity tends to be better. Shezan has a good product ange. It includes cakes, cookies, buns, patties a d breads etc. But has limited product line as compared to gourmet. Its prices are relatively high r than gourmet. With comparison of gourmet, hezan uses price skimming strategy. It targets only a specific segment in market. Shezan uses no el ctronic and print promotion that’s why the custom r doesn’t know about its products. Shezan has o ly 20 plus outlets in Lahore. Cakes & Bakes
Cakes & bakes have vast product range than Shezan but narrow product range in comparison to gourmet. In some of the produc s of Cakes & Bakes it uses price penetration st ategy as gourmet uses, but most of the products are highly priced. Cakes & Bakes has 19 outle s that mean it has a lower number of company owned outlets as compared to its competitors. Cak s &Bakes has 45 franchises. Cakes & Bakes has no focus on promoting its products. The target audience f Cakes & bakes is middle class. Cakes & Bakes targets upper middle class and gourmet target eac h class because it has its outlets in each and every c rner of Lahore.
2.4. CUSTOMERS To analyze market trends as w ll as to know the demands and perceptions f Target Market regarding Gourmet and its produ ts, a survey was carried out with 200 respondents chosen through random probability sampling. A uestionnaire was developed and respondents w re asked to fill it. Some questionnaiers were self-a ministered and others were filled in by intervie ers according to
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the responses of the respondents. For the purpose of survey, Lahore was divided into three zones – Zone 1 included Model Town, ownship, Faisal Town, Johar Town and Garden Town; Zone 2 included Icchra, Mozang, Samana bad, Gulshan Ravi; Zone 3 included Bhatti Gate, Sanda, Ravi Park and surrounding areas.
2.4.1. Survey The results of the survey are anal zed below: 1. What food items do you use fre uently (At least once a week)? (Can mark one or ll )
Beverages 15%
Bread 32%
The pie chart above shows that most frequently people use bread from t e bakery (32%) and are less i terested in buying other produc s like sweets, beverages, ic cream or other products. Th milk is the second most bought product at 21%.
Milk 21% Cakes 6%
Sweets 8%
Ice-Cream 18%
2. Which bakery do you visit the most?
United Kashmir 2% 4% Others 12%
Rahat 8%
Shezan 20% Cakes and Bakes 12%
This pie char shows that most people visit ourmet bakers in comparison to other bakers. Like 42% pe ple visit gourmet in term of ge ting bakery products. Sh zan is the second most visited akery of Lahore.
Gourmet 42%
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3. What is your feeling towards Gourmet?
Average 26%
Fair 7%
Poor 5%
Excellent 7%
That chart shows that 64% of people feel g od and comfort to buy product rom the gourmet bakers, and 11% people consider it excellent and 11% consider it average. 8% fair and 6% poor. So the overall result is most of people feel good from the gourmet.
Good 55%
4. Is the product line in Gourmet adequate?
Average 33%
Yes 62%
62% of peo le think that yes Gourmet bakers’ product line is adequate. An 33% think that it is average.
No 5%
5. Which is your favorite product at Gourmet?
Milk 13%
Beverages 7%
Bread 7%
Pie 5% Cake 11%
Cookies After conducting survey we 11% found out th t ice-cream is the most favorite product of gourmet, constituting 37% of Sweets total. Bread, ake, cookies and 9% sweets are all at average.
Ice-cream 37%
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6. Do you think the outlets of Gou met are convenient for you?
Average 33%
If we talk ab ut the convenience f the gourmet then 84% pe ple consider it convenient f r them. So the gourmet is more convenient in comparison to other bakers.
Yes 62% No 5%
7. What is the main problem you f ced at Gourmet?
Long Queues 32%
No problem 49%
The main pr blem of the gourmet bak rs is long queues, which is 32%. After that rude behavior of t e salesman is one of the proble s faced by customers at Gourmet. So gourmet nee s to improve employee’s attitude and should increase the space of their outlets. It sh uld minimize long queues by in reasing the number of c sh counters.
Rude Behavior Congestion 11% 8%
8. Which area do you think need t e most improvement?
Delivery Time 6%
Others 18%
Discounts 29%
Capaciousn ess 9% Product variety 12%
From our sur vey report 28%respond nts said that gourmet nee s to have discount packages. 21 people are concerned with the prices, as they are now more sensitive towards prices changes. According to customers, other areas of improvement are, gourmet offers, capaciousness and product ariety, which are 6%, 9% and 2% respectively.
Fluctuating Prices 20%
Offers 6% G
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9. How long have you been using ourmet services? (In case of Gourmet users)
Less than six months 21%
5 years or more 21%
In is chart, p ople were asked that, for how long they were using the gourmet products. So survey result d that 23% are using gourm t products from the last 3 to years, so they are considered to be loyal customers. 2 %people are using for more tha 5 years. So they are also loyal customers. So this chart shows that, most people are using gourmet products for more than one year, which is 70% of customers in total. This shows that g urmet customers are satisfied ith its products and services.
6 months to less than 1 year 9%
1 year to less than 3 years 26%
3 years to less than 5 years 23%
10. How often do you use Gourme t products?
In this question people were as ed the frequency of using different products. Products include bread, pie, cake, sweets, ice-cream and milk.
Bread Monthly 7%
Quarterly 4%
Don’t Use 24%
Weekly 24%
From our sur vey it is found that 42% of the c nsumers daily use gourmet bre d. 24% don’t use it because of its stiffness and lack of freshness. Some of the customers use it monthly and weekly quart rly. They consist 34% of the t tal.
Daily 41%
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Pie Quarterly 18% Monthly 15%
Weekly 9%
In our surve we found out that large number of customers doesn’t buy pie, because it is of low quality, or lack or awareness about this pr duct. Those who know about this use it daily, weekly, monthly and quarterly, making 3%, %, 15% and 18% respectively.
Don’t Use 55%
Daily 3%
Cake Quarterly 19%
Don’t Use 12% Daily 3% Weekly 16% The survey r sults show that consumers u e cakes more on monthly bases, about 50%, as it is an occasio al product. Few of them use their cake on weekly; about 16% a d few of them use it daily. 12% eople don’t use gourmet cakes due to less variety and n n-freshness.
Monthly 50%
Sweets Monthly 24%
Quarterly 11%
Don’t Use 18%
Sweets is also used on special occasions. So survey result shows that 3 % of the people use gourmet sweets weekly and 24% and 11 on monthly and quarterly basis respectively. Few of the consu ers don’t use its sweets as the are loyal to some other sweets, like Nirala or Rafique sweets.
Daily 10%
Weekly 37%
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Ice-Cream Qua terly 0%
Don’t Use 11%
Monthly 29%
Daily 23%
As ice-cream is the most favorite product of gourmet, 23% people se it on daily basis. Other than t at 37% of the customers consume ice cream as on weekly and 29% of them on monthly basis. About 11% of them don’ use it because they are addi tive to some other brands.
Weekly 37%
Milk Quarterly Monthly 14% 4%
Don’t Use 14%
Daily From the survey question most 29% of the consu ers use gourmet milk weekly onthly and daily. There are als some of persons that don’t us gourmet milk.
Weekly 39%
Beverages Monthly 6%
Quarterly 6%
Don’t Use 15%
Gourmet beverages is newly launched product. Most of people use it on daily and weekly bases, which is about Daily 73% collectively. 15% still prefer other everages and 30% don’t use gourmet beverages due to low q ality.
Weekly 43%
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11. How would you rate Gourmet roducts?
In this question people were asked to rate gourmet products on the basis of quality. These include; Quality of cakes, quality of sweets, quality of cookies, quality of milk, quality of ice-cream and quality of beverages.
Quality Of Cakes Excellent 6%
Poor 20%
Good 15% Fair 9%
This chart sh ws that about 50% rate gourmet cakes as average. 15% rate it as good and about 6% rate gourmet cakes as excellent. Alt gether cakes are of average quality.
Average 50%
Quality of the Cookies
Fair 7%
Poor 0%
Excellent 10%
Average 31%
52%of the consumers rated gourmet coo ies as good and Good 31% rated it s average. 52%
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Quality of Sweets Fair 17%
Poor 0
Excellent 17%
The consum rs rate the quality of the sweets as good, which is 35%. Some of them rate it as average whic is 31% of total.
Good 35%
Average 31%
Quality of Ice-Cream Fair 15%
Poor 5
Excellent 25%
Average 25%
A large porti n of people rated gourmet ice- ream as excellent and good wh ch is 55% in total. Some of the ustomers rate quality of ice cream as average and small nu ber of them think that gourmet ice-cream is of poor quality.
Good 30%
Quality of the Milk Fair 18%
Poor 3%
Excellent 9%
49% of the people said that the quality of go rmet milk is quite Good good and 21 of them rate 49% gourmet milk as average. Altogether it is of good quality but has limited shelf life.
Average 21%
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Quality of Beverages
Fair 10%
Poor 17%
Excellent 7% Good 23%
About 43% people rated gourmet bev rages as average. 7% rated quality of beverages as excellent.
Average 43%
12. How do you rate Gourmet on the following attributes?
In this question, customers were asked to rate the following attributes: ustomer service experience, on-time delivery of service, professionalism, quality of service, pur hase experience, cleanliness of premises, etc.
Customer Service Experience Fair 11%
Poor 8%
Excellent 8%
39% seems s tisfied with gourmet cust mer services as they rate it as good. Very little amount rated it as fair and poor. 34% deem it as average. So it means there is a room for improvement.
Good 39%
Average 34%
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On-Time Delivery of Service Poor %
Fair 19%
Excellent 5%
Most people rated delivery of service as Good to average. Only 5% dee it excellent and 19% as fair.
Good 46%
Average 30%
Professionalism Fair 23%
Poor 4%
Excellent 3%
Good 34%
37% rated G urmet staff as average in terms of professionali m, 34% consider them good. verall, professionali m is average.
Average 37%
Purchase Experience
Fair 34%
oor 0%
Excellent 7%
Good 35%
35% rated th ir purchase experience as good, 24% as average and 4% as fair, maybe that’s becaus of the long queues they experienced while purchasing.
Average 24%
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Cleanliness of Premises and Ou tlets Poor 0%
Fair 19%
Excellent 33%
Average 24%
The gourmet outlets are well decorated as ell as well managed. The cleanliness is an important fa tor which attracts customers. About 33% rated it as excellent a d 24% rated it as good. Still th re is a room for improvement as 19% rated it as fair.
Good 24%
13. How would you compare Gourmet pricing?
Customers are asked to rate gourmet pricing in following attributes: In comparison to quality, in comparison to market and in comparison to competition.
In Comparison to Quality Fair 12%
oor 0%
Excellent 15%
50% people elieve that gourmet pricing is good in comparison to quality since Gourmet pri ing is low, its comparable quality is good. 15% think of it as excellent. This means t at gourmet is providing go d perceived use value in relation to perceived price. But this doesn’t mean that its quality is ood as compared to the market.
Average 23%
Good 50%
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In Comparison to Market Fair 0%
Poor 0%
Excellent 12%
Average 38%
There are no many bakeries with positioning that of Gourmet sell ng products at lower price t an Gourmet. Therefore, most people compared G urmet pricing as Good (50%) in comparison to the market. 38% rated it as average.
Good 50%
In Comparison to Competition Average 40%
Fair 4%
Poor 0%
Excellent 12%
In comparison to competition, the prices of ourmet are rated as good (44 ) to average (40%). Good This tells tha Gourmet is also 44% competing o price.
14. How do you rate in over all co parison to other companies that offer the same services?
Much Somewhat Lower 0% Lower 13%
Don’t K ow %
Much Higher 5%
Food industr is a big industry and so is the bakery industry. There are many bakeries in Lahore. So c mpetition is so intense. So we asked a question that how wo ld they rate gourmet ove all in comparison to those are roviding same services. About 57% people rate it somewhat igher than the competition, as shown in the chart.
Somewhat Higher 57%
Same 22%
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15. How likely are you to continue using Gourmet services?
Neutral 38%
Somewhat Unlikely 3%
Very Unlikely 0%
Very Likely 35%
Most people are likely to continue using gourmet products but neutral are those people who either not happy with its quality or who are loyal to other brands like Shezan.
Somewhat Likely 24%
16. Have you ever recommended ourmet to others?
No, never recommen ded 19%
Have recommen ded several times 26%
Most of the eople who use gourmet pro ucts recommend it to their frien s, families or peers. About 55% have recommende gourmet once or twice to their peers. And about 26% have re ommended it several times to go to gourmet and buy its p oducts.
Have recommen ded once or twice 55%
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17. What is your age?
35-44 24%
45-64 10%
Younger than 18 12% 18-24 17%
25-34 37%
18. What is your Gender?
Male 46%
Female 54%
19. What best describes your empl oyment status?
Retired 11% Student 16%
Other 7%
Employed 25%
As shown in the chart, 25% of gourmet customers are employed, w o are working in multinational companies or other offices. 33% are self employed mean that they have their own bu iness. Other categories in lude; unemployed, student, retir d, who are 8%, 16% and 11 respectively.
Self employed 33%
Unemploye d 8%
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20. Which of the following categories best describes your monthly income?
Rs.4500060000 16%
Rs.60000 or above 3%
Under Rs. 6000 10%
Rs. 6000- As demonstr ted in the chart, it is clear that ost of the 15000 gourmet cust mers are from 32% middle class, as they consist of 51% of total arget market.
Rs.1500045000 39%
3.1. T ARGET M ARKET A ND COMPANY ’S POSITION Gourmet is mainly targeting upper middle, middle and lower middle class. It is also catering the upper class to little extent but this class isn’t a frequent buyer. Most of the gourmet products are of satisfactory quality at a reasonable price. People want to buy more in less. Gourmet has a very good image because of its strong positio in bakery item’s market and it also provides a wid range of products. But most of the people usua ly don’t prefer its cakes, as they are quality consciou s and the cakes range of gourmet is more econo ical and does not meet their quality standards. Gourmet is a growing organization and always come with the product which is the need of the market at reasonable prices.
3.2. M ARKET DESCRIPTION We have divided market in to thr e major segments
Elite Upper middle Lower middle
3.2.1. Upper Class Description
These are people with large am ount of disposable income and they are quality conscious and anxious about having products adding to their status.
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What they Want?
They need high quality products at a price level in accordance with their status. People from this class don’t bother about the price and their prime focus is on quality, taste, presentation and positioning of the product. They et attracted by the ambience of the outlet and ag lity of services. How they use Product?
They use more of fast food an the food that is quick to prepare. They freq ently use bakery product either directly or as a raw material in preparing the meal. They have the life style replete with functions, parties and ceremonies. They need bakery items frequently. Support Requirement
New, innovative, customized ideas and products are required to target these peopl and capture and sustain this segment. High quality brand positioning should be the top priority. Exclusive availability of products is also to be focused. How to Reach Them?
Positioning of the company as ell of the product matters a lot for the people of this segment. Moreover, persistence in maintaining and improving product quality, taste an presentation of products is most captivating for this segment. People of this segment are attracte by the ambience and convenience of the outlets. T hese people should be provided high quality products at skimmed prices. Price Sensitivity
People from this segment least b other about price and focus on quality instead. So, they are least sensitive to price but highly sensitive to quality standards.
3.2.2. Middle Class Description
These are people with average level of disposable income. These are the people managed by a person with an income range fro about Rs. 45,000 to Rs. 60,000. These people want to show off themselves and maintain high standards. They have low level of savings and high rate of expenditures. What they Want?
They are somewhat similar to the elite class in their buying behavior but the are a bit more conscious about prices. How they use Product
These people like to adopt the liv ing standards of elite class thus have the same so ts of usage. They use bakery products frequently. How to Reach Them
These people are quality conscio s as well as price conscious. They can be targeted both ways. If good quality products at valued price are provided then this segment is profitable and can be captured. G
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Price Sensitivity
These people are price consciou s to an average extent. They compare prices deciding to purchase the product.
ith quality when
3.2.3. Lower Middle Description
These people are with very little amount of disposable income. They have very little to save and expense. These people are in the range of income about Rs. 25000 to Rs. 40000. What they Want?
These people want more of the product at fewer prices. They are less quality conscious and are highly price conscious. They are ighly sensitive to price changes. How they use Product?
They use the bakery items less f equently and at special occasions for example cakes at birthdays, pizza, sweets, biscuits, snacks for guests, bread, ice-cream and other dairy product depending upon the mood at occasions. How to reach them?
Gourmet has to focus on quali y products supplied in bakery industry in ord r to capture the segment, which are provided at valued price. Gourmet has to work on improving quality standards along with maintaining the prices at feasibly and affordably low levels. Support Requirements?
Cost cutting through ways of pr duction to reduce cost and sources for cheaper resources so that products at lowest possible price an be provided. How to Reach Them?
These people can be targeted on the basis of prices and this is exactly Gourmet i doing with most of their products. These people can be influenced by linking usage patterns with a s many occasions as possible. Price Sensitivity
These people are highly price co nscious. They are highly affected by the price changes and show great response to price fluctuatio .
Gourmet has mainly the followin option s available:
High quality products for elite class at skimmed prices available exclusively Good quality products for the upper middle class at feasible and affordable prices G
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Quality products at lower prices for the lower middle class available conven iently Products for all the segments available convenient to every segment and ccording to their needs, perceptions and re uirements Keeping in view customer t rget market size, location and purchasing patte ns gourmet is to adopt the policy of providing good quality.
5.1. PRODUCT
5.1.1. Product Line Gourmet has a vast product line. t produces all kinds of bakery product and sweets. Now it has also included new product line of its airy products along with the introduction of gou met beverages. The major bakery items of g urmet include; Fresh Cream Pastry Pine apple pastry Cream roll Cream puff Fruit trifle cup Lemon taat Cream Cakes Pine apple cake Black forest cake Coffee cake Lemon taat cake Cheese cake Caramel crunch cake etc Dry Cakes
Almond cake Almond seerup cake Chocolate cheese cak e Tuti fruit cake Wafer vanilla cake Wafer chocolate cake Marble vanilla cake Pizza
Chicken pizza large Chicken pizza small Mini pizza Seekh kabab pizza
Crossiants
Chicken cheese pattie s G
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Chicken samosa Vegetable patties Walnut stick Almond stick Coconut lemon stick Apple leaf Biscuit
Cake rusk Almond macaroni fin ger Almond chocolate Coconut biscuit Coconut ball Cracker biscuit Ring vanilla etc. Bread
Plain bread Milky bread Bran bread Coconut bread Fruit bun Burger milk
Gulab jaman Malai gulab jaman Burfi Fruit brfi Kalakand Moti choor laddoo Balu shahi Shahi tukre etc.
Sweets
Ice Cream
Chocolate fudge Coffee Vanilla Tuti fruit Paraline Mango etc. Beverages
Cola Lemon up Apple Malta etc. G
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5.1.2. Current Product Line A nalysis Gourmet breads like fruit bead, c icken bread and other breads are of good in ter of taste but it is not good in term of freshness because it become stiff quickly. And also has little va riety. Gourmet milk is of good quality and fresh but there is some problem with its availability and shelf life as some times gourm t milk’s taste changes in a short duration. Also there is only pasteurized milk that gourmet is providing and not yet introduced in Tetra pack. There is also an opportunity for condensed milk and powdered milk. Gourmet cakes are of average quality and have an average taste. Moreover cakes are not fresh. There is also a limited variety in term of shapes and flavors. Gourmet is also ot providing the customized cakes right now. There is the sufficient variet of gourmet cookies, but again taste, average quality and freshness is the question mark. Gourmet beverages need re ositioning and improvement in quality. There is also the need of introduction of unconventional fl vors. Ice-cream is the most favorite product with good quality and taste but flavors are conventional. New flavors should be introduce . The pizza is of bad quality an d taste, have little variety. Patties quality has also one bad.
5.1.3. Proposed Strategies for p roducts Considering the analysis of the products, we suggest following improvements in the existing products as well as the introducti n of new products, or product lines. Milk
The quality of milk should be i proved, and it should be provided in tetra packaging too. The availability of dairy products must be increased. Introduction of new dairy pr ducts include;
Powdered milk Condensed milk Yogurt Cream Raita Bread
The quality of gourmet bread m st be Improved as it a product of daily use. Other than that the quality of raw material should be i ncreased Introduction of new flavors in bread can be;
Fruit bread Garlic bread Coconut bread Fruit bread
Snacks
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Beef croissant Ice cream
As people are now more consci ous about their health, introduction of sugar free ice cream will increase the sales of gourmet ice- ream. As ice-cream is a favorite product of gour et sugar free icecream will attract diabetic custom rs too. Gourmet should introduce n w flavors, such as;
Vanilla with choco c ip Rainbow delight Blue berry flavor Pizza
Gourmet also needs to improve t e quality of its current pizzas and people are no going after junk foods. Apart from that gourmet hould provide the facility of fresh pizzas made n bakery as done by Cakes & Bakes. New flavors can be included. Like;
Chicken tikka Chicken fajita Chicken tanduri Chicken supreme
Beverages & Drinks
As our survey resulted that the q ality of gourmet beverages are of low quality. G urmet must now introduce juices like, mango, orange, lemon, leechee and apple flavored, in ord r to reach more customers. Introduction of fres milk shakes only in the premises of gourm t will attract its customers. Cakes
The improved quality of gourmet cakes should be provided to the customers. For this, introduction of sugar free cakes and pastries, and introduction of instant bake facility must be provided. New flavors can be introduced. Customized shapes as per as ed by customers will really push them to buy. Such as, flag shaped cake on the Independence Day, a d Mickey Mouse shaped cakes on the birthdays f little children. Sweets
Gourmet has wide product range in sweets. All it needs to do is to introduce some sugar free items in sugar. Burgers
Introduction of fresh burgers will be gourmet’s new addition to its current product line. Jams & Jellies
Introduction of different flavors f jams and jellies will be liked by our current cust omers.
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5.1.4. Service Aspect of Produc t In our survey, we asked the question from our customers that what problem do they face in Gourmet. Gourmet customers f ce a problem of long queues, congestion, ba behavior of the cashiers and parking problems. T ere is also a bit of a problem with shelving. Improvement in Services
Gourmet should do followings to improve its services:
Gourmet should increase focus on training of gourmet staff regar ing shelving and customer handling and anger management. Gourmet supervisor should also increase a focus on cleanliness f premises from within and outside ar a. Gourmet staff must e quick in catering the customers’ demands to avoid long queues. Staff needs to ask su gestions from customers to improve the quality of the product or services. 5.2. PRICE Since price is the only revenue g neration part of marketing strategy, it is a very important area to plan.
5.2.1. Factors Affecting Price etting The major factor in consumer buying behavior is price as in the current situation, prices of everything are rising even the nec essities of life are very expensive these days. Other than prices the quality and taste of bakery prod cts also affects consumer buying behavior. If products are easily accessible then it is likely that peo le will buy more. Costs
Company’s cost should kept in mind while price setting. Gourmet sets its pricing after looking into its costs. Fixed cost: Gourmet’s fixed cost includes the costs of our processing and product on units, the cost of machinery Variable Cost: Gourmet’s variabl costs include; transportation cost, labor cost, cost of ingredients and raw material may vary with emand and time, maintenance costs of machine ry and processing units. Competitors cost, price and offers: Competitor prices and offers should also be k pt in mind while devising a price strategy and sett ing product prices. Gourmet’s competitor’s pri es are somewhat higher but Gourmet is offering products at relatively lower prices, having “more for less” strategy.
5.2.2. Marketing Objective Gourmet’s marketing objective is to provide quality products at economic prices. ricing strategy of Gourmet is derived from this obj ctive.
5.2.3. Nature of market and d mand: Gourmet has direct competitors like, Shezan, Cakes & Bakes and indirect competitors, like, Shimla bakers, United bakers and other bakers in Lahore selling bakery products. Still this is a market where people are sensitive to price chan e, so we believe that we are providing better quality at lower prices
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than our competitors. So there is a great potential to penetrate in the existing expand its current market shares.
arket as well as
Gourmet is a growing organi zation and always comes with the products whic h are the need of the market at reasonable prices. ourmet sets prices according to the affordability of its customers. In the survey, customers were asked that, “what do they think about Price of Gourmet in comparison to the Market” and eople seemed satisfied with the gourmet’s price in comparison to market.
5.2.4. Pricing Strategies of Go rmet The strategies adopted by gourm et in reference to its pricing are very attractive to the middle and lower middle class. We conducted a survey through which we have come t know that the customers have rated the pricing of gourmet. 49% customers rated the gourmet pricing excellent and 32% rated the gourmet pri ing good. There were less in number customers who rated the average pricing of gourmet and according to our survey there was no customer who rates its prices as fair or poor. So we conclude that the pricing strategy of gourmet appeals its targ t market. Value Based Approach
Gourmet always gives preference to its customers. Gourmet is offering those products which can provide better value at affordable price. Gourmet aims not to compromise on quality and value but make pricing strategies by keepin in mind the benefit of the customer. Customer
Value
Price level
Cost
Product
Gourmet first looks at custo er’s demand and value they want, then set the rice they want to pay and make the product within the cost which can maintain customers desired p rice level and also earn revenue. This strategy of gourmet has put a positive effect on its customers because gourmet always prefers its customer’s needs and affordability first and then set prices according to the customer preferences. Gourmet lways use value based approach that target its large market. And due to this the customers of gou met are loyal to it due to its pricing strategy. We have conducted survey through which we have come to know that the customers are loyal to g urmet due to its pricing because its prices are not ore than its competitors. Market-oriented pricing
Gourmet also sets its prices based upon analysis and research compiled from the targeted market. As we have come to know through our research that gourmet pricing is highly market oriented and gourmet always set its prices aft r complete research of the market and its quali y is also good as compare to the competitors. Market Penetration Strategy
At the early stages of gourmet, i t took the strategy of market penetration, setting relatively lower prices; Gourmet was successful in establishing its image in the market. This stra egy has appealed large target market of the gourm t and the attraction of the customers increase to the gourmet due to its market penetration strategy. Discounts and Offers
Gourmet is not currently offerin any discounts on the products and there are no offers as well. If there are discounts, they are are and time specific. They usually introduce dis ounts when they G
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launch new outlet for a specific time (usually 1 week). But the gourmet should ad pt the strategy of giving discounts and offers on t e common accessions. They should give the discount when any customer buys large buddle of hing collectively. So bundle discounts should offer gourmet to attaining the loyalty of the custom ers. Analysis of current pricing stra egy Advantages:
High Market penetrat ion High market share. Loyalty due to provision of value to price-sensitive customers. High sales volume.
So gourmet has got the true loyalty of its customer due to its pricing strategies. At this time gourmet has large market share in compare to its direct or indirect competitor and because its customers are more price sensiti ve so gourmet always set its prices according o the needs and preference of its customers for the sake of obtaining loyalty. And its sales volume is very high because of its large target market nd due to high share in the market. Disadvantages:
Compromise on qual ty Skewed profit margins. Customers have take price as a proxy for quality. But with the current pricing strategy of the Gourmet, it has lost its quality to some extent and because of high share and high olume of sale, control over all issues has bec me less which is causing quality deterioration. With low price of their products under current s trategy, its profit margin becomes very low. The ourmet has threat that due to its low prices, t e customers may perceive that its quality is not b tter which makes it a huge challenge for Gour et to sustain its pricing and good quality.
5.2.5. Recommended Pricing S rategies Optional product Pricing
Gourmet should provide custo ization facility to the customers wherein cust omers can order customized products by selectin ingredients of their choice for cakes, pizza an other products. Gourmet can charge customers an additional price for exercising these optio s. This will not increase revenues for Gourmet but also satisfy customers by providing variety a d options. Same strategy can be adopted for custo ized shapes of cakes and extra toppings. Product bundle pricing:
Gourmet can bundle various pro ucts and render them into different deals, each eal will be priced on the basis of contents of the eal. The contents of deals and bundles will be according to the needs and wants of different market segments. This bundling concept is revenue-generating in various aspects. Besides, this is the area, Gourmet can improvise on and onvert it into a competitive advantage. Promotional pricing, discounts & allowances
Gourmet has been indulged in promotional pricing on special occasions such a opening of new outlets and launching of new products. However such promotions are short-lived and time-specific G
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which is a good strategy since all owing discounts can be a costly proposition for an already profitskewed company. Besides, discou ts can only reap short-term benefits. However, there are certain instances where Gourmet should undertake promotional pricing and discounts. Gourmet can exercise promotional pricing on its off-season products such as ice-cream. Selling ice-cream at slightly lowe than the retail price in winters will prompt customer buying the ice-cream in the off-season. Suc a strategy isn’t likely to hurt profit margins a d besides, it can increase the sales of the off-seaso products in times of low demand. Moreover, Gourmet can gi e discounts on bulk purchasing. This strategy will target basic consumer behavior and it will also prompt shopping groups to shop for bakery, confectionary, beverages, ice-cream or milk products from Gourmet. Competitive Pricing
Since Gourmet also competes on prices, it should follow strategies which will ens re that Gourmet stays ahead of the competition. ourmet should increase the price at slower rate than competitors since they offer substitutes and price-demand relationship will yield larger market share for Gourmet in case the competitors significa ntly increase the price of related products. M reover, Gourmet should defend its basis for cost-leadership i.e., low cost production, efficient distribution, forward and backward integration. Defe ding basis for cost-leadership will ensure that competitors are unable to match Gourmet.
5.3. PLACEMENT
5.3.1. Current Placement Strat egy Current placement strategy of Gourmet is described below: Corporate VMS
Gourmet is using corporate vertical marketing strategy since Gourmet has its own production and distribution under one head. It makes its raw material, supplies it to the productio department and distributes it to its outlets throug its own distribution system. In this way, Gourmet exhibits a good deal of forward and backward int gration. Distribution
Gourmet is involved in Direct istribution – it distributes most of its products directly to the customers through its outlets wit out using any intermediary.
However, Gourmet does distribute its beverages indirectly both inside an outside Lahore. Beverages are also available in some retail stores apart from Gourmet outlets which entails indirect distribution.
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CORPORATE VMS
SUPPLY
OTHER BRANDS
PRODUCTION UNIT
WAREHOUSE
Consumer Goods bran s such as Nestle, Pepsi etc.
DISTRIBUTION
OUTLETS
RETAILERS
CONSUMER
CONSUMER
Exhibit 3:
Indirect Distribution o nly for beverages
Supply chain network of Gourmet.
Channel Interfaces
Gourmet currently has more tha 80 outlets in Lahore and 3 production units. ach outlet is well decorated and well managed with electricity backup. Therefore, outlets are conven ent but they have few problems such as congestion and lack of parking area in many outlets.
5.3.2. Recommended placement strategies There are some placement strateg ies for the gourmet to improve supply chain and its interfaces. The recommendations are given belo : Expansion in other cities
According to the survey conduc ted, majority of customers are satisfied with the convenience of Gourmet outlets in Lahore and herefore, Gourmet need not to open more outlets in Lahore. It should expand its market to oth r cities of Punjab. National expansion may co e in the years to come. Outlets in Universities
Gourmet should open its outlets in large private and public sector universities as it will be a healthy proposition in terms of catering needs of the student segment and revenue incre ase. Therefore, in order to increase its corporate bu iness as well as facilitate its customers more, Go rmet needs to be in public sector universities. Double Counters
One of the problem areas highlig ted in survey results was Long Queues experien ed by customers. To solve this issue, Gourmet should have double counters. This will ensure that customers do not G
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get annoyed of the long wait they have to endure with single counter. Besides, Go rmet can separate bakery and confectionery section within the same outlet. This will result in the c nvenience of the customers and will also save th ir time for they would easily buy products fr m the individual sections. Parking Facility
In some of the Gourmet outlets there is no appropriate parking facility for the consumers. Gourmet should provide adequate parking facility in all of its outlets. If this cannot be done, a staff member could be given an additional responsibility of guiding the customers regarding parking, in front of the outlet or adjacent areas. This ill smooth out the traffic. Staff Training
Rude Behaviour was another pro lem area which became apparent in the survey results. Therefore, Gourmet needs to conduct trai ing of its personnel in the areas of shelving and handling the customers. Employees be given training in order to increase their interpersonal skills as well as motivation so that they know ho to deal with customers. Cafeteria
Gourmet should also place two t three small dining tables and chairs in each of its outlet, or atleast in large outlets which will render it as a small cafeteria. Not only that it will cha ge its positioning positively, it will of great conveni nce to the customers.
5.4. PROMOTION While forming the strategies for a bakery & confectionary—whether it is a local or national brand— it behooves the entrepreneur to ta ke a serious look at the promotional plan of the company and how that will relate to the market he /she is targeting. A bakery & confectionary is a "sink or swim" industry and good bakery strateg plans have a clear understanding of just how mportant a good promotional strategy is. A promotional strategy in its simplest form is the distributed communication methods used to communicate a product or service to its intended market in a controlled and monit red format. The promotional strategy includes every marketing initiative that will impa t the customers' purchase decision including: public relations, personal sales, sales promotion , packaging and advertising. Public Relations: Every baker a d confectioner must understand how his/her co fectionary relates to local or even national media. For this first develop a list of media that can impact consumer opinion or demand of operators i the foodservice industry. Personal Sales: The personal sales section of the promotional plan includes the bakery plans for salesperson marketing responsi ilities, customer service policies, sales prese tation methods, adjustment rules and pricing proc dures. Sales Promotions: A bakery bu iness plan should touch on the initiatives instill d to support the sales message. Sales promotions should include: a schedule of planned promotion l activities; and a description of collateral marketin material. Advertising: A bakery strategy plan should summarize the company's creative message and advertising budget. However, it i also imperative that you, the entrepreneur, pla at least the first quarter's media schedule
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5.4.1. Current gourmet strategi s Print Media
Gourmet is using this strategy on ly when they start their new outlet. These banne s and posters are specifically placed in that premise only, to confine the customers of only that par icular locality. As mostly their outlets are in con ested area and mostly are not prominent so in order to give information about their outlet they should use this promotion strategy. Print medi strategy includes Banners and Posters. Broadcast Media
Gourmet use broadcast strategy occasionally. Advertisement is only confined to local channels. Reason behind this is that they ar operating in premises of Lahore only. Gourmet occasionally runs ADs on City 42. Transit Marketing
It is type of marketing strategy t at is used on vans or the transport that compan used to transfer their product to different outlets. It is limited type of advertisement and used at l unch of any new product. Gourmets advertise their new product by Display on transport vehicles. Otherwise theses vans carry only gourmet logo. Direct marketing
It is used to establish direct connection with carefully targeted individual consum rs to both obtain an immediate response and cultivate lasting customer relationship. The tools used for direct marketing are telephone, mail, fax, e-mail, the internet, and other tools to communicate directly with specific consumers. Gourmet does not undertake direct marketing and have no wa to communicate or obtain immediate response fro some specified consumers. Sales Promotion
Gourmet uses Limited Sales pro otion and this promotion strategy is Subject to specific area and time. Promotional discounts are offered only at new outlets. Discounts are also area specific and offered at the lunch of new produ ct. Public Relations
Gourmet practices inconspicuo s public relations strategy. Although they Pr ovides dinner to Children Hospital daily but they are not cash this as a promotion tool. As its a ready established brand confined to Lahore market renowned as market leader so intention behind t is is only a social cause not as tool for promotion. Trade promotion
Gourmet doesn’t offer trade promotions on bakery and confectionary items du to sale of these items specifically through their o n outlets. However Offers regarding trade promotions are limited on Beverages only being the on ly product with indirect distribution strategy in areas other than Lahore.
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