Introduction:- The word gourmet is from the French term, defined as "refined and uncontrolled love of good food". Gourmet is an industry classification for high- quality premium foods in the United States. Gourmet may describe a class of restaurant, cuisine, meal or ingredient of high quality, of special presentation, or high sophistication. Gourmet food is characterized by high quality, accurate preparation, and artistic presentation. This name “gourmet” was suggested by his daughter who is living in America. “Gourmet Bakers and Sweets” is the largest food retail chain of Lahore. It is based in Lahore, the second largest city of Pakistan known for its traditional foods and passion for eating. It was started with a single outlet in Ichra in 1987 by Mr. Muhammad Nawaz Chathha, in the begging they did not get good response which resulted in shut down. He again started in 1992 at different place at Muslim town, and Gourmet did not look back since then. Now with its 5 production units, 2 restaurants and 88 sales outlets, gourmet outreaches to a huge population for their food needs. Mr. Chathha the founder of Gourmet stared his
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56636762 Gourmet Sweet Bakers Project 2 Final Final
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Introduction:-
The word gourmet is from the French term, defined
as "refined and uncontrolled love of good food". Gourmet is an
industry classification for high-quality premium foods in the United
States. Gourmet may describe a class of restaurant, cuisine, meal or
ingredient of high quality, of special presentation, or high
sophistication. Gourmet food is characterized by high quality,
accurate preparation, and artistic presentation. This name “gourmet”
was suggested by his daughter who is living in America.
“Gourmet Bakers and Sweets” is the largest food retail chain of
Lahore. It is based in Lahore, the second largest city of Pakistan
known for its traditional foods and passion for eating. It was started
with a single outlet in Ichra in 1987 by Mr. Muhammad Nawaz
Chathha, in the begging they did not get good response which
resulted in shut down. He again started in 1992 at different place at
Muslim town, and Gourmet did not look back since then. Now with its
5 production units, 2 restaurants and 88 sales outlets, gourmet
outreaches to a huge population for their food needs. Mr. Chathha the
founder of Gourmet stared his business with 20 million rupees. He is
holding the position of Managing Director of the company. He was
serving in Shezan Bakers as a General Manager and later on he
decided to make his own bakery. He started his business through
getting employees from Shehzan bakers in the beginning.
Gourmet produces a wide variety of bakery items, sweets and
dairy products and offers high quality services in their restaurants.
Gourmet has introduced many new items in bakery products
categories which were previously not in the market of Lahore.
Gourmet stresses hard on quality and taste of their products and
making them affordable for their customers at the best prices in the
market.
The company has shown an explosive annual growth of more than
25% till 2006 in its business since this unique business was started in
1992. Recently gourmet shows 65% of annual growth in its business
from 2006 to 2009. With his commitment and strenuous effort to
provide the consumers with best quality food products in a convenient
and unmatched displaying manner, Gourmet has become a success
story of business growth in Pakistan. At the moment Gourmet has
more than 4500 employees working in the organization.
Mission statement:-
“Our mission is to provide quality products at lowest
prices”
Vision:-
“Leader of quality juice providers in the region by offering products
enjoyed in every home. This will be achieved from the dedication of
each employee in conjunction with supportive participation from
management at all levels.”
Gourmet Dairies is another step forward to
provide its consumer with wholesome milk
and milk products. This is also a sort of backward integration for the
provision of dairy raw materials for bakery.
Branch Supervisor
Assistant Branch Supervisor
Complaint Manager/ Auditor Purchase Manager
Assistant Branch Supervisor
Director
G.M Production
G.M Market
Assistant General Manager
Area Managers
ORGANIZATIONAL/ HIERARCHY CHART OF GOURMET:
Store Supervisor
Sales Man
Industry analysis: -
The food items industry has been rising constantly at a considerable
rate and the eating habits of people are changing over time with the
changing life styles.
With the growing trend of having light snacks with tea in the
afternoon and other readymade snacks for a meal instead of the
traditional meals of curry n bread, the demand and consumption for
the products of this industry is growing rapidly.
Apart from that as more people and youngsters are working especially
the women, their daily lives are becoming very fast and they don’t
have time to cook at home. Due to this reason more people are now
seeking convenience goods, which act as a alternative to the
traditional meals. Although people are becoming more aware and
more health conscious thus they demand high standards of quality
and hygiene along with a balanced nutrition.
Purchaser
Along with that the trend of celebrating events and having a get-
together in the West is now sweeping our culture as well and more
people are now celebrating many different events such as birthdays,
ceremonies, anniversaries, New Year, Valentine’s Day, Mother’s Day
etc as compared to the few events celebrated earlier such as Eid-ul-
Adha, Ramadan, Eid-ul-Fitr, weddings, birthdays and get to gether.
These events boost the sales of this industry as people opt to buy
things from outside instead of cooking themselves.
The trends of dining out have also grown rapidly over the past few
years and that’s the reason why many new companies like Gourmet
are entering the Restaurants market.
The acceptance and need for such products are growing every passing
day and it
is expected to grow at a higher rate in the future as well which is a
very healthy sign for companies like Gourmet to invest smartly and be
in front.
PEST analysis:-
1) Political change = from one party (change of government) to
another
Political analysis:-
Political scenario in Pakistan has seen many important changes in
recent years. The political environment directly influences all the
industries working in the country. Similarly the production
distribution and use of Gourmet’s products are subject to some
federal laws, such as the Food and Drug Act. The businesses are
subject to the Government stability in the countries as the businesses
are directly subjected to the taxation policy of the country they are
operating. They also have to comply with federal, state and local
environmental laws and regulations.
According to the Global Competitiveness Report 2010-2011, Pakistan
ranks poorly in terms of domestic commerce measures: business
sophistication, goods market efficiency as well as property rights
protection. Pakistan ranks lowest when compared to other Asian
countries including India, Indonesia, Thailand, Malaysia and China. As
shown in Table 1, Pakistan ranks 46 out of 139 countries in terms of
business cluster development compared with India at 29 and China at
17.
Table 1: Business Sophistication9
Countries Cluster
Developm
ent.
Local
Supplier
Quantity
Local
Supplier
Quality
Pakistan 46 87 95
India 29 7 60
Indonesia 24 43 61
Thailand 34 26 43
Malaysia 15 29 37
China 17 19 54
According to the prices above, a small office space of 12 x 38 square
feet is rented out for between PKR 29,640 (minimum) to PKR 91,200
(maximum) in Islamabad. The productivity of a city and employment
generation needs more entertainment, hotels, shopping areas and
offices in large complexes, but no space has been provided for large
complexes to develop. Trading policies are the long run hurdles that
cannot be resolved in near future.
The Pakistan Pure Food Laws (PFL) of 1963 is the basis of the existing
trade-related food quality and safety legislative framework. These
laws cover 104 food items falling under nine broad categories: milk
and milk products, edible oils and fat products, beverages, food grains
and cereals, starchy food, spices and condiments, sweetening agents,
fruits and vegetables and miscellaneous food products. The
regulations address purity issues in raw food and as well as additives,
food preservatives, food and synthetic colors, antioxidants, and heavy
metals. All these improvements will help Gourmet baker to enter in
new markets which are conscious about traditional food items and
also with security measures such as Sharjah, Dubai and other Middle
East countries.
TAX MEASURES 2010-11
Existing system of General Sales Tax would be reformed to eliminate
multiple tax rates and replace it with a single lower rate of 15%.
The reformed GST will not apply on health, education and food items
consumed by the poor. The GST will not apply to turnover less than
Rs. 7.5 million per year whereas the current threshold is Rs 5 million
per year and would be automated thus reducing possibilities of
corruption and refund delay.
Above situation analysis of taxation structure for 2010-11 shows some
mixed trends for the future prospectus of gourmet baker of Pakistan.
Increase in exemptions for income tax will increase the buying
potential of gourmet customer and will stabilize the employee the
gourmet baker by strengthen there economical conditions. In the
mean while increase in GST and Surcharges on electricity
consumption will lower down the sales volume of gourmet products
due highly cost of production resulting in high product prices.
Home market lobbying/pressure groups
In Pakistan sugar industry is operated almost in all by some political
families and in food industry sugar is a major raw material. For the
sake of fetching good profits these groups put a strong pressure and
prove themselves a strong lobbying group. Employee union is also an
other lobbing group that pushes the gourmet baker for higher wages
that will result in high cost of productions. Strong transport unions
may also create some logistic problems for Gourmet baker
distribution channel.
International pressure groups
India is a leading manufacturer of sweet and bakery items. Low labor
costs in India has enable Indians to get more share in international
markets. In the mean while Indian lobby is strong enough as compare
to Pakistan to reach in foreign markets. Gourmet and many other
entrepreneurial needs strong government assistance and coloration to
enter in international markets
Wars, conflict & Terrorism
Recent wave of war against terrorism has created a sense of in
security in general public in Pakistan. Shopping trends are decreasing
due to suicidal attacks and people are not willing to come at bazaar as
they were in past. This situation has adversely affected the sales of
gourmet baker and sweets.
2) Economic change = For example a recession creating increased
activity at the lower ends of product price ranges. Rate of interest
raises depressing business and causing redundancies and lower
spending levels as well as energy crisis too.
Economic analysis
Despite inhospitable domestic and international environment
resulting from the either the global recession or due to the terrorism
acts, Pakistan’s economy grew by 2 percent in the financial year 2008-
09 according to Economic survey 2008-09. Reports have shown
increase in GDP, increase in per capita income and increase in IT
development as well which are positive signs for the industry but
there are some negativities as well. Like all the other companies are
subject to the harvest of the raw material that they use in their soft
drink and juice, like corn, oranges, grapefruit, vegetables etc. –
Gourmet also relies heavily on trucks to move and distribute many of
their products, fuel is a very important subject, so they are subject to
the fuel prices. Moreover, there has been a crisis in the production of
sugar in Pakistan, with prices sky rocketing. Another crisis that
Pakistan is dealing is the shortage of electricity. Such economic
factors have resounding impact on such industries and increase the
cost of goods.
3) Socio-cultural change =Involves changing attitudes and
lifestyles. The increasing number of women going out to work, for
example, led to the need for time-saving products for the home.
Socio-culture analysis
The population of Pakistan is on the rise where as the health
consciousness among the people is also a lot more than it has been in
the past. The age distribution of Pakistan is also very balanced, major
portion of its population consists of youth. Gourmet bakery products,
dairy products as well as beverages and moreover Juices and ice
creams are subject to the lifestyle changes as the awareness of health
consciousness is rising in the people now. This has affected the
industry in the positive manner and many new companies are being
entered in the food market, the usage of the food products in the
households has increased a lot. The need for hygienic products and
healthy products are in important in the average day-to-day life.
Consumers from the ages 37 to 55 are also increasingly concerned
with nutrition. There is a large population of the age range known as
the baby boomers. Gourmet has to pay a special attention on the
lifestyle changes. Further Income of people is increasing more trends
towards FMCG. Further a major social trend in the rural areas of
Pakistan has been a shift from presenting guests with drinks and
bakery products such as lassi towards such beverages and bakery
products. People use bakery products on different events new born
7. Branches, website under construction (updating reason), online complaint desk.
SEGMENTATION AND TARGETING
1. Differentiated, each and in every branch give response to the customer same and fair interaction.
2. To increase customers by targeting all the level of social classes now.
3. Upper middle class, upper class.
4. To develop Durability, to targeting the customer according to the need and demand, built a positive relations to customer , to increase loyalty and to do research and survey on customer preferences.
5. No priority because same treatment to all the customer
6. Now they are trying to target all the segments as their beverages are available on other local retail shops.
7. By delivering new offerings e.g. catering in parties on different occasions.
POSITIONING AND BRANDING
1. Differentiation marketing.
2. high quality and good position
3. more and more improvement in quality of the product and position to built relation to customer to improve brand loyalty
4. To innovate different product and services and built a positive image in the mind of the customer.
5. Establishment a complete bakery of first choice to facilitate the customer.
6. Customer trust increases
7. Increase promotional activities like advertising on different channels, pamphlets, concerts etc.
Retention Strategies
1. Holding current customers to attract new customers, and giving more value to customer through more advertisement.
2. Listen and Respond to complaint
3. No, it can also increase the customers
4. No.
5. Good
6. To get satisfaction of the customers
7. Offering new items.
ORGANIZATION: PROCESSES AND CULTURE
1. Both internal & external include employees ,customers
2. Providing better hygienic and healthy food.
3. Strictly followed
4. Yes
5. BCG Matrix
OFFERINGS
1. Superior values and services with attractive and hygienic and healthy products.
2. Different products, beverages, cakes, pastries.
3. Provide banking facility that influence the customers, provide value, improved brand image, introduced new innovative products.
4. Sugar free ice creams.
5. Providing more healthy products to satisfy each and every type of customers
6. Yes we are managing the life cycle.7. Through Advertisement, print media, number of branches
increase.
Analysis and recommendations
The whole report shows that the Gourmet bakers and sweets are
striving to get a competitive advantage against its customers but
there are some problems too on which the company should
concentrate because they serve many other factors respectively
1. Gourmet should offers incentives and benefits to its old employees
to reduce its turnover rate.
2. And secondly they should reduce the employee work hours so that
they better deals the customers.
3. The Gourmet hasn’t advertised themselves through media; they
should have adopted some other source of advertisement to cater the
market. Well they are well known in the market but they should use
TV media for their advertisement, they could also advertise
themselves on the cable in the areas in which they are having their
chains.
4. The Gourmet should plan for the loyalty of its customers. They
should give discounts to its regular customers in this way the
customer’s sincerity with the company will grow.
5. The Parking area of the Gourmet bakers should be enhanced if
their customers face problems in parking .then the customer would
prefer to go on some other store to find convenience rather than
buying for the Gourmet.
7. The Gourmet should increase the quality of the new products as it
has offered (milk and ice-cream) and it should also concentrate on the
advertisement of the new product seriously.
8. The Gourmet should take feedback from the customers by
personally survey and should concentrate on the requirement of the
customers.
9. As the people is weight and diet conscious today so the Gourmet
bakers should introduce sugar free sweets and cakes for those people
too.
10. They should be concentrating on the quality of their products so that the customers wouldn’t be returning the goods back and thus the image of the Gourmet wouldn’t be lost in the eyes of the customers.
11. By adopting reduce price strategy they can make more and permanent customers. Not only more customers will come there will be increase in the number of loyal customers as well.
12. They have to acquire new technology for production if they don’t move towards acquiring new technology then they won’t be able to meet the needs of customers.
13. Sales promotions like prizes, lucky draw schemes should be introduced to attract more customers and involve kids and children to increase sales.
14. Must capture some special events like local sports series, convocations & charities shows by sponsoring these shows as would give a good image about the company to the consumer.