GOURMET

M A R K E T I N G S T R A T E G I E S

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S P E A K E R S

Presentation

Ayesha Arshad Fiza Shakoor Memoona Hanif Waqas Shehzad

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C U R R E N T P R O D U C T L I N E O F

G O U R M E T

Product

FRESH CREAM PASTRY Pine apple pastry Cream roll Cream puff Fruit trifle cup CREAM CAKES Pine apple cake Black forest cake Coffee cake Cheese cake Caremal crunch cake etc.

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C U R R E N T P R O D U C T L I N E O F

G O U R M E T

Product

DRY CAKES Almond cake Almond syrup cake Chocolate cheese cake Tuti fruit cake LAYER CAKE Wafer vanilla cake Wafer chocolate cake Marble vanilla cake Icing cake etc

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C U R R E N T P R O D U C T L I N E O F

G O U R M E T

Product

PIZZA Almond cake Chicken cheese patties Chicken pizza large Chicken pizza small Mini pizza Seekh kabab pizza CROISSANT Wafer chocolate cake Chicken samosa Vegetable patties Walnut stick

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C U R R E N T P R O D U C T L I N E O F

G O U R M E T

Product

BISCUIT Almond macroni finger Almond chocolate Coconut biscuit Coconut ball Cracker biscuit Ring vanilla BREAD Plain bread Milky bread Bran bread Fruit bun

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C U R R E N T P R O D U C T L I N E O F

G O U R M E T

Product

SWEETS Gulab jaman Burfi Kalakand Moti choor laddoo Balu shahi etc. ICE CREAM Chocolate fudge Coffee Vanilla Tuti fruit Coconut Paraline Mango etc.

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C U R R E N T P R O D U C T L I N E O F

G O U R M E T

Product

BEVERAGES Cola Lemon Twister Apple Malta etc.

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P R O B L E M S W I T H G O U R M E T

Product

Survey Results: Improvement to be made in

Discount 29% Offer 6% Price 20% Product variety 12% Capaciousness 9% Delivery time 6%

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P R O B L E M S W I T H G O U R M E T

Product

Service: Problems with service part

Customers face a problem of: > long queues > congestion > bad behavior of staff > parking problems Shelving problem also present.

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P R O B L E M S W I T H G O U R M E T

Product

Service: Improvement in Service

Increase focus on training of gourmet staff. Increase a focus on cleanliness of premises. Staff must be quick. Ask suggestions from customers

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C U R R E N T P R O D U C T L I N E

A N A LYS I S

Product

Product: Current product line of Gourmet is

Good in term of taste but it is not good in term of freshness and also have little variety. Gourmet milk is of good quality and fresh but there is some problem with its availability and shelf life. Gourmet cakes are of average quality and have an average taste.

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C U R R E N T P R O D U C T L I N E

A N A LYS I S

Product

Product: Current product line of Gourmet is

Sufficient variety of gourmet cookies, but again taste, average quality and freshness is the question mark. Beverages need repositioning and improvement in quality. Need of introduction of unconventional flavors

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C U R R E N T P R O D U C T L I N E

A N A LYS I S

Product

Product: Current product line of Gourmet is

New flavors should be introduced in market. Pizza is bad in quality, taste and have little variety. Patties quality has also gone bad.

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R E C O M M E N D E D P R O D U C T

L I N E

Product

S T R E T E G I E S

Product Strategies: Milk

Considering the analysis of the products, we suggest following improvements in the existing products as well as the introduction of new products, or product lines. Improved quality of milk Increased availability of dairy products

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R E C O M M E N D E D P R O D U C T

L I N E

Product

S T R E T E G I E S

Product Strategies: Milk

Gourmet should considering adding new products to Milk line: Powdered milk Condensed milk Yogurt Cream Raita

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R E C O M M E N D E D P R O D U C T

L I N E

Product

S T R E T E G I E S

Product Strategies: Bread

Improved quality Raw material quality should be increased Introduction of: Fruit bread Garlic bread Lemon bread Coconut bread

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R E C O M M E N D E D P R O D U C T

L I N E

Product

S T R E T E G I E S

Product Strategies: Snacks

Chicken tikka Vegetable roll Chicken croissant Beef croissant

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R E C O M M E N D E D P R O D U C T

L I N E

Product

S T R E T E G I E S

Product Strategies: Pizza

Introduction of new flavors: Chicken tikka Chicken fajita Chicken tanduri Chicken supreme.

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R E C O M M E N D E D P R O D U C T

L I N E

Product

S T R E T E G I E S

Product Strategies: Beverages

Improved Quality Introduction of new flavors Introduction of gourmet juice (mango, orange, lemon, leeche, apple) Introduction of fresh milk shakes

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R E C O M M E N D E D P R O D U C T

L I N E

Product

S T R E T E G I E S

Product Strategies: Beverages

Improvement in quality and taste Introduction of sugar free cakes and pastries Introduction of instant bake facility Introduction of new flavors Customized shapes as per asked by customers

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R E C O M M E N D E D P R O D U C T

L I N E

Product

S T R E T E G I E S

Product Strategies: Confectionaries

SWEETS Introduction of sugar-free sweets BURGERS Introduction of fresh burgers will be our new addition to current product line. JAMS & JELLIES Introduction of different flavors on jams and jellies in the near future.

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FA C TO R S A F F E C T I N G P R I C E S E T T I N G

Pricing

Major factors include:

Prices Quality Taste Availability Costs Competition

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FA C TO R S A F F E C T I N G P R I C E S E T T I N G

Pricing

Major cost heads include:

Fixed cost > Production units > Machinery Variable cost > Transportation > Labor > Ingredients & raw material

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FA C TO R S A F F E C T I N G P R I C E S E T T I N G

Pricing

Competition also influences price setting:

Competitors cost Competitors prices Competitors prices are somewhat higher while Gourmet is having more for less strategy.

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FA C TO R S A F F E C T I N G P R I C E S E T T I N G

Pricing

Marketing objective of the Gourmet company is:

To provide quality products at economic prices. Pricing strategy of Gourmet is derived from this objective.

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FA C TO R S A F F E C T I N G P R I C E S E T T I N G

Pricing

Nature of Market & Demand:

Direct competitors > Shezan > Cakes & Bakes Indirect competitors > United bakers > Kashmir bakers > Shimla bakers

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FA C TO R S A F F E C T I N G P R I C E S E T T I N G

Pricing

Prices of Gourmet in comparison to the Market as shown by Survey:

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C U R R E N T S T R AT E G I E S O F G O U R M E T

Pricing

Prices of Gourmet in comparison to the competition as shown by Survey:

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C U R R E N T S T R AT E G I E S O F G O U R M E T

Pricing

Value-Based Approach Catering price-sensitive market:

Always preference to its Customer by providing Value Prices are according to the customers affordability Good perceived use value in relation to perceived price

Customer

Value

Price level

Product

Cost

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C U R R E N T S T R AT E G I E S O F G O U R M E T

Pricing

Market-Oriented pricing catering marketing perceived price needs:

Gourmet prices are market oriented. Prices are harmonious to what market expects. Targeted at Price-sensitive market and thus affordable prices.

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C U R R E N T S T R AT E G I E S O F G O U R M E T

Pricing

Market-Penetration Strategy: Target market penetrated with low prices:

At the early stages of gourmet, it took the strategy of market penetration, setting relatively lower prices gourmet was successful in establishing its image in the market.

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C U R R E N T S T R AT E G I E S O F G O U R M E T

Pricing

Discounts & Offers:

Currently no offers and no discounts If there are discounts, they are area and time specific. They usually introduce discounts when they launch new outlet for a specific time (usually 1 week).

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C U R R E N T S T R AT E G I E S O F G O U R M E T

Pricing

Analysis of Current Pricing Strategy:

ADVANTAGES High Market penetration High market share Loyalty due to provision of value to price-sensitive customers. High sales volume.

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C U R R E N T S T R AT E G I E S O F G O U R M E T

Pricing

Analysis of Current Pricing Strategy:

DISADVANTAGES Compromise on quality Skewed profit margins. Customers have taken price as a proxy for quality.

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R E C O M M E N D E D P R I C I N G S T R AT E G I E S

Pricing

Discounts & Allowances

SEASONAL DISCOUNTS On special occasions PURCHASE DISCOUNTS Discount be given on certain volume of purchases.

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R E C O M M E N D E D P R I C I N G S T R AT E G I E S

Pricing

Promotional Pricing
Offering products at lower than the retail price for specific days of the month. Lowering prices on seasonal products from the retail price. e.g. ice-cream in winters.

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R E C O M M E N D E D P R I C I N G S T R AT E G I E S

Pricing

Competitive Pricing
Gourmet should increase the price at slower rate than competitors since they offer substitutes and price-demand relationship will yield larger market share. Should defend its basis for cost-leadership. i.e. low cost production.

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R E C O M M E N D E D P R I C I N G S T R AT E G I E S

Pricing

Optional Product Pricing

Customer can order customized products selecting ingredients of their choice. Gourmet should charge nominal price for exercising these options. Same strategy can be adopted for customized shapes of cakes and extra toppings.

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R E C O M M E N D E D P R I C I N G S T R AT E G I E S

Pricing

Product Bundle Pricing

Gourmet can bundle various products and render it into different deals. Will not only give competitive advantage but also earn more customers. Different deals will be priced variously.

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C U R R E N T P L A C E M E N T

Placement
S T R AT E G I E S

CORPORATE VMS Gourmet is using corporate VMS because gourmet has its own production and distribution under single ownership INTENSIVE DISTRIBUTION Gourmet is having an intensive distributional strategy as it is stocking the product in as many outlets.

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C U R R E N T P L A C E M E N T

Placement
S T R AT E G I E S

Channel Strategy
DIRECT DISTRIBUTION Involves distribution of products directly to the customer Gourmet distributes directly most of its products directly to the customers through its outlets.
Manufacturer

Consumer

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C U R R E N T P L A C E M E N T

Placement
S T R AT E G I E S

Channel Strategy
INDIRECT DISTRIBUTION Involves distribution of products to the customer through middleman or retailer. Manufacturer Gourmet is having this strategy only for gourmet beverages available in other cities than Lahore.

Retailer Consumer

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C U R R E N T P L A C E M E N T

Placement
S T R AT E G I E S

Retailing
Gourmet also acts as a retailer of different food brands apart from its own manufacturer brands of bakery, confectionary and other items.

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C U R R E N T P L A C E M E N T

Placement
S T R AT E G I E S

Current Channel Interfaces

More than 80 outlets 3 production units Each outlet is well decorated and well managed Electricity backup (generators) Outlets are open yet congested Parking area is less

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R E C O M M E N D E D P L A C E M E N T

Placement
S T R AT E G I E S

Survey Result: Convenience of Gourmet Outlets

Survey shows, outlets in Lahore are sufficient and convenient. Gourmet should expand its market in other cities of Punjab. Outlets in public-sector universities could be a healthy proposition.

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C U R R E N T P L A C E M E N T

Placement
S T R AT E G I E S

Survey Result: Areas of improvement

Survey shows Long Queues, Rude Behavior and Congestion as major problem areas. Number of counters be doubled. Separate bakery and confectionary sections.

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C U R R E N T P L A C E M E N T

Placement
S T R AT E G I E S

Survey Result: Areas of improvement

Should provide for appropriate parking facility for consumers.

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C U R R E N T P L A C E M E N T

Placement
S T R AT E G I E S

Survey Result: Areas of improvement

Training of sales personnel in areas of customer handling and shelving.

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I N T E G R AT I O N C O M M U N I C AT I O N
ADVETISVEMENT

Promotion
M I X

PUBLIC RELATION

PROMOTION

SALES PROMOTION

DIRECT MARKETING

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C U R R E N T P R O M OT I O N

Promotion
S T R AT E G I E S

Advertisement
PRINT MEDIA Banners Posters BROADCAST MEDIA Occasional ADs on City 42 TRANSIT MARKETING Display on transport vehicles.

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C U R R E N T P R O M OT I O N

Promotion
S T R AT E G I E S

Direct Marketing
Gourmet doesnt undertake direct marketing.

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C U R R E N T P R O M OT I O N

Promotion
S T R AT E G I E S

Sales Promotion
Limited Sales promotion. Subject to area and time. Promotional discounts offered on new outlets. Discounts are also area specific.

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C U R R E N T P R O M OT I O N

Promotion
S T R AT E G I E S

Public Relations
Gourmet practices inconspicuous public relations strategy. Provides dinner to Children Hospital. However, this tool isnt fully utilized.

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C U R R E N T P R O M OT I O N

Promotion
S T R AT E G I E S

Trade Promotions
Doesnt give trade promotions on bakery and confectionary items due to sale of these items specifically through outlets. Offers limited trade promotions on Beverages only being the only product with indirect distribution strategy in areas other than Lahore.

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R E C O M M E N D E D P R O M OT I O N

Promotion
S T R AT E G I E S

Gourmet should expand promotion campaigns:

Billboards TV advertisement Brochures Public Events Direct Marketing Sales Promotion Consumer Promotion

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R E C O M M E N D E D P R O M OT I O N

Promotion
S T R AT E G I E S

Billboards:
Billboards be placed at strategic places. Should communicated specific discounts.

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R E C O M M E N D E D P R O M OT I O N

Promotion
S T R AT E G I E S

Brochures:
Should print and dissemination brochures. Brochures to communicate product line, offers, discounts. Punch lines be used.

Gourmet Prices. Gourmet Quality

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R E C O M M E N D E D P R O M OT I O N

Promotion
S T R AT E G I E S

Direct Marketing:
Feedback Helpline/Complaint center Market Research

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R E C O M M E N D E D P R O M OT I O N

Promotion
S T R AT E G I E S

Sales Promotion:
Consumer promotion Visual demonstration on outlets Birthday packages Contract with restaurants( beverages, ice-cream) Home delivery

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R E C O M M E N D E D P R O M OT I O N

Promotion
S T R AT E G I E S

Consumer Promotion:
SAMPLES: Offer trial amount of product COUPONS: On cakes, sweets, particularly on special occasions. PREMIUM: On cakes and baked items

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Q U E S T I O N S

Thank You!
& Q U E R I E S