Chamky ghar ghar main…!!

Presenters:Muhammad TalhaNouman RiazAdnan SiddiqueSiam AzadAli Shahid

Outline:• History of gourmet • Gourmet portfolio analysis• Gourmet Restaurant (SBU)• BCG matrix of gourmet restaurant• Competitive strategies, competitive position, competitive

environment & sustainable competitive advantage of gourmet

• Distribution analysis• Corporate strategy, core competencies • cost leadership, differentiation & focus strategy

History of Gourmet

Gourmet history:• Gourmet : food expert• 1987• Founder & CEO: Mr. muhammad Nawaz chatta • Started at ich’chra Lahore• Fresh, healthy and hygienic food• Again started in 1992 at different places at Muslim town

Lahore

Gourmet history:Employees 4500+Processing units: 7Outlets 836+

• Islamabad • Rawalpindi

• Lahore • Gujranwala• Faisalabad • Gujrat• Jalalpur Jattan • Sheikhupura• Shahdara Bagh(A tehsil of

Sheikhupura)• London

• England • New York City, America.

Mission

“To respond to customer desires and to extend its existing product

lines.”

Vision

“To provide a quality food in an affordable prices.”

Portfolio analysis of Gourmet

Strategic business units• Bakery• Water • Beverages • Catering • Pharmacy• Restaurant• Magazines • Furniture

• BCG matrix • Competitive strategies, competitive position and

environment • sustainable competitive advantage • Distribution analysis• Core competencies • strategies

Restaurant

Some common issues1. Threat of new entrants:

2. Threat of substitute: 

3. Bargaining power of buyer:

4. Bargaining power of supplier.

5. Current rivalries:

Gourmet

competitor

Some common issues (cont.)5. Current rivalries:• Conscious about its competitors• It ensures

• Efficient service• Innovation• Quality at low price• Friendly environment• Skills of expertise in production

• And quality at low price is its sustainable competitive advantage

Competitors • Salt n pepper • Ziaffat• Menu• Bundu khan• Villages• Dhaba• Fazl-e-Haq• Taha etc.

Corporate strategies

Corporate strategies

Integration strategies:• Backward vertical integrationGourmet restaurant uses backward vertical integration for their 40% restaurant inputs• Forward vertical integration:

Gourmet restaurant is not using forward vertical integration for there restaurants.Diversification strategy:e.g. starting hoteling with restaurant chain, common examples PC, Awari

cost leadership, differentiation & focus strategy

Cost leadership:Gourmet uses cost leader ship strategy to provide quality at

low price.Differentiation:

Gourmet is using a range of products in gourmet restaurant for differentiation e.g. khadi kabab, chapli kababFocus strategy :

Gourmet focuses middle class.

Gourmet restaurant products life cycle

strategy

BCG matrix for gourmet restaurant

Adnan SiddiqueLc-2970

Bakers and Sweets • 1987• It was started

with a single outlet in Ichra.

Bakers and Sweets Gourmet Bakers growth:

Lahore GujranwalaFaisalabadRawalpindi Sialkot Multan etc.

Competitors • Shezan bakers• Doce• Cakes & Bakes• Bundu khan sweets• Butt sweets

Competitive strategy

Competitive strategy• Quality :Gourmet Bakers strive very hard to deliver the best quality products to their consumers• Freshness Gourmet is very focused at ensuring the freshness of the products.• Prices : Gourmet Bakers offer the best prices in the market which is a prime competitive advantage for them. • Distribution : They have a well developed distribution network

Product Strategies

•Attractive Labeling

•Strong Brand Name

•Variations in the Packaging Material

Distribution ChannelThey are using both direct and indirect strategies Single level channel: Manufacturer Retailer CustomerDual level channel: Manufacturer Wholesaler Retailer Customer Vertical integration (zero level channels): Manufacturer Customer

BCG Matrix for Gourmet Bakers

BCG Matrix for Gourmet Bakers In Lahore there is low competitor of bakery product. Only Some Bakers & Sweets are working in city but they are few. So Gourmet falls in star in context of bakery product. They need heavy investment to capture the market and get the high shares. Whereas Sweets have low market because high prices and low taste as compared with Ideal Bakers, Nirala Sweets act.

Raja Saim Azad

Lc-2989

Topic: Gourmet beverages

Product Line:

Here are the beverages which gourmet is offeringColaLemonMaltaAppleTwisterSoda Ice-CreamDiet ColaDiet LemonBon Vivant (Premium Cola)

Product Strategies:

Ata ul Hassnain

The Product Strategy of Gourmet is :Attractive Labeling

Strong Brand Name

Variations in the Packaging Material

Pricing Strategy:

The Gourmet is having Market penetration strategy by purposing Low price than Pepsi and Coca cola

In Beverages Industry there was a gap left by Pepsi and Coca cola, Gourmet fill that gap with low prices

Promotional strategy:

As gourmet is already offering low price to the Consumer so that they don’t offer consumer promotion. Some of the Schemes are as following On the purchase of two bottles one bottle free

On the purchase of four bottles two bottles free

Channel of Distribution:

Well Gourmet has a great Supply chain. Which is also a Unique plus point of it

Gourmet has About 120 outlets in Lahore and Faisalabad.

But Gourmet is Serving its Beverages in all over the Country

The Company has its own Distributional Structure by which they serve there customer effectively and efficiently.

Segmentation and targeting strategyGourmet Segmented the market Geographically and by the life style

Ata ul Hassnain

Differentiation strategy:

Gourmet is the only beverage company in Pakistan which provide soft drinks with price competiveness and standard quality People perceive the products of the company are available at low price with good quality

Ata ul Hassnain

Competitors:Gourmet says:We are new players in the beverage industry so we still don’t consider any one of our competitor we are just capturing the Market as a whole”

From: GM(Sales) Hamid Bukhari

• But in market Pepsi and coke consider Gourmet as their competitor in Pakistan

From Hamid Bukhari Cont...

Pepsi and coke had never reduced their prices in Pakistan expect RamadanFor the very first time Pepsi and Coke had to reduced the price of their 1.5 lr back in 2008 from 75Rs to 70Rs.So there was a opportunity which Gourmet avail and lunched a pet bottle on the Competitive price of 60Rs.

Continued:

Pepsi and Coke reduced their price at 65 but soon after Pepsi had to raised their price to maintain the standard and quality. By this opportunity Gourmet hit exactly on the need of consumer by offering low price product with good qualityAnd hence the customers switched from Pepsi or Coke to Gourmet

Current Strategy:

Gourmet is now focusing to expand the business geographicallyProduct availability via eye view Competitive price to Penetrate the Market A Decent and well managed supply chain

Ali Shahid Lc-2961

Gourmet catering

GOURMET is also providing catering for all occasion for your convenience to give grace to your celebrations

Core competencies Sumptuous Food!

Extraordinary Service!

Courteous And Prompt!

Reasonable Rates!

Competitive environment

Competitive environment A 4-year reputation for gourmet catering . No matter how elaborate or simple the occasion, we strive to be the single best caterer you’ve ever had. Our goal: Make your event a tremendous success and an unforgettable experience.

competitorsNadeem caterers Butt’s caterersSohail caterersHanif caterersNizam caterersTime and taste caterersAzeem caterers

cost leadership, differentiation & focus strategy

Cost leadership:Gourmet uses cost leader ship strategy to provide

menu at low price. (Rs- 400- 1200)Differentiation:

Gourmet is providing a range of meals and services for differentiation e.g. sweet dish, mutton, chicken, rice, salads.Focus strategy :

Gourmet focuses all classes.

37% growth rate

Nouman RiazLc-2977

• An other step for growth through diversification taken about 5 years ago• Situated at Allama Iqbal

town and Choburji Lahore• An Effort to capture

customers in medications industry

Immediate competitors

1. Fazal din Pharmacy

2. Mahmood Pharmacy

3. Servaid pharmacy

Competitive environment

•No single buyer or seller has influence on market•Easy entry to market•Consumers are free to buy

any product

Pure competition

Sustainable Competitive Advantage

SCA cont.….

But in case of gourmet pharmacy there Is no market specific competitive advantage rather than• Number of customers inspired by

“gourmet”• Large investment

Competitive strategy• Cost leadership or low

cost strategy

• Offering discounts of 6 to 13% on opening

Corporate strategy

Growth Stability Renewal

Diversification

Gourmet Pharmacy in BCG matrix

Recommendation

Recommendation • Gourmet should include products for its differentiation as

traditional foods from different regions. • Gourmet does not maintain its website and does not

using e-marketing tools such as Facebook or twitter• Pharmacy must adopt more distribution branches scheme

and advertisement for awareness about pharmacy• Gourmet must adopt more distribution branches scheme

and advertisement for awareness in other provinces of Pakistan as it is not operating in Baluchistan, Sindh and KPK.

In the near future