INTRODUCTION:The word gourmet is from the French term, defined as "refined and uncontrolled love of good food".Gourmet foods-a well renowned organization in Lahore & all over the Pakistan.Gourmet foods is one of the rapid growing foods and confectionery stores in Pakistan.It is leading manufacturer and marketer of baked and unbaked desserts.Gourmet is the largest food retail chain of Pakistan.Gourmet always focus on customer's need and serve them with quality products.Customer satisfaction in product quality and service is the zeal of Gourmet business.Gourmet is fully committed in putting all of its expertise and resources to work for the quality food lovers,under the meaning of the word GOURMET-a connoisseur of good food.Gourmetfoods are characterizedbyhighquality, accurate preparation, and artistic presentation.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. HISTORICAL OVERVIEW:Gourmet was founded in by Mr. Muhammad Nawaz Chatha in 1987 in the area of Ichchra,Lahore ,the second largest city of Pakistan known for its traditional foods and passion for eating. Mr.Chatha-the founder of Gourmet stared business with 20million rupees. He made his own coat of arm for trademark and that is simply a love for fine food. 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. But cant successfully carried it.Later on in 1992,he started it again at adifferent place Muslimtown,Lahore and Gourmet did not look back since then.The concept of fresh, healthy and hygienic food in affordable prices achieved quick popularity among bakery customers.The bakery products for breakfast were provided in limited areas, but because of the over whelming support of customers, Gourmet planned to expand.It has diversified into a versatile food company over 25 years.For easy access of products,Gourmet has made its outlets all over the city of Lahore.It also has outlets inFaisalabadand inNew York City, United States.It has seven processing units and over 100 stores in Lahore.Apart from bakery products and soft drinks and beverages they also offering catering services and has family restaurant setups as well.Its head office is located in QIE, Kot Lakhpat,Lahore.Key business functions such as sales & marketing, finance and customer service are managed form the QIE Head Office.VISION STATEMENT:The vision of Gourmet is, to provide a quality food in affordable prices.That is why where ever the market inflation went Gourmet never broke its rules.The Vision of Mr. Ch. Muhammad Nawaz was higher than any crisis. Since he belongs to religious family,sincerity and integrity has been his code of conduct. He has strong believe in Allah that he is providing whatever he has.His entire Life is an example of it. Although now the care takers of the Gourmet industries are his sons. But his vision remains unchanged over the time.MISSION STATEMENT: We will be the best food company in Pakistan by fostering open communication and teamwork between our customer, our people and our suppliers.In this age of rapidly changing life styles consumers are driven to change their eating habits constantly. Gourmet responds to their desires and extended its existing product line.Gourmet has built a huge network of retail shops all over Lahore and now stepped towards Faisalabad. We established International level technology based factories and laboratories for quality maintenance.CORPORATE OBJECTIVES: To Build Profitable Customer Relationship By Delivering Superior Value. To Provide Such Products Those Can Increase Targeted Markets. To Become A Leader In The Bakery And Confectionary Industry. To Provide The Quality Products To The Target Market. CORPORATE ACHIEVEMENTS: Product Manufacturing:We aim to make your life more pleasurable through our scientific processes, nutritious methods and latest machinery in our factories and laboratories.Gourmet owns two big factories in the area of kot lakh pat. where on automatic plants Mithai are made. The milk products are processed under the scientific methods and supplied fresh from our huge factory at Sundar.Gourmet beverage plant at Sunder, is counted among Worlds latest plants for beverages.Gourmet stresses hard on quality and taste of their products and making them affordable for their customers at the best prices in the market. Restaurants:Gourmet has also introduced their own Restaurants for traditional food lovers in Lahore, and is gradually moving towards other cities as well. Catering:Gourmet is also providing catering for all occasion for your convenience to give grace to your celebrations. We are proud of providing taste with healthy, innovated and best quality food that tempts your appetite at all times. Gourmet Dairies:Gourmet Diaries 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.Priorities: Health is a priority as well as the taste for Gourmet.We aim to provide you the best and for that we simply say: No Compromise on Quality and Hygiene. The standards of our products are what we are always concerned about. And that is due to the customer who is very dear to us. We want them to stay healthy and content with us.

PRODUCTS OFFERED BY GOURMET FOODS: Bakery: Gourmet is presenting now more than four hundred varieties in bakery products.Gourmet is quite confident about the no. of products it has introduced in Pakistan are matchless. Its R&D department keeps its-selves up dated with new recipes, new products for the ever changing customer needs.

Gourmet Diaries:Milk is a complete nutrition for all ages keeping this nutrition for 4-5 days without using any chemical is a new idea, which GOURMET has introduced.GOURMET has introduced Pasteurized Milk that is processed under high temperature system to kill the germs and to keep its nutrition. GOURMET milk is supplied under Expiry Dates.

GOURMET is also providing Ultimate tea whitener, Skim Milk for dieters, Milky Way is full of cream and is energy milk.

Bread:GOURMET has introduced plain milky as well as multi grained and high fiber breads in different flavors and textured looks. Which promotes healthy digestion, weight loss and also stabilizes cholesterol and sugar level in blood.

Sweets:After the success of bakery products in 1990 gourmet decided to fill Sweetness in Life. GOURMET produced Mitha is with fresh and pure ingredients.GOURMET has its own huge plant for making fresh khoya for all varieties of mithai. That is why GOURMETs unique and innovated taste in Mitha are always appreciated.Keeping our uniqueness in flavors and habit of innovation, Gourmet introduce different traditional halwas with the good quality.

Beverages:GOURMET took the challenge of making Pakistans biggest in-house Beverages Industry and built under the supervision of International Team.The thirst-quenching drinks of GOURMET are available in Cola, Malta, Lemon up, Apple and Ice-cream Soda, in six different sizes from 300ml to 2.25 liter.

Gourmet Ice cream:Apart from preparing traditional sweets, snacks, cakes, pastries, doughnuts, biscuits, general confectioneries, bread and bakery goods, its own branded soft drinks, beverages, mineral water as well as milk, the business has expanded its operations and also produces its own Ice Cream. Gourmet water:Gourmet took the challenge of making Pakistans biggest in-house beverages Industry and built under the supervision of International Team.

Jams:GOURMET jams are made from farm fresh fruits and imported ingredients. Our food experts test them, under the Quality Control Laboratories. That is why GOURMET has been certified by Pakistans Best Jam Producers.

Candies and Toffees

Keeping the health of kids in our mind, which is our priority. We are using quality ingredients in candies and toffees that include vitamins, glucose and calcium.

Ketchup:GOURMET has launched its exciting ketchup, made of fresh tomatoes with no chemicals and artificial color added. It has unique flavor due to the added ingredients of Mace, Cinnamon and clove.

ORGANIZTIONAL HIERARCHY: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 ready made snacks for a meal instead of the traditional meals of curry and 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 dont have time tocook at home.Due to this reason more people are now seeking convenience goods, which act as alternative to thetraditional meals. Although people are becoming moreaware and more health conscious thus they demand high standards of quality and hygiene along with a balanced nutrition.Along with that the trend of celebrating events and having a get-together in theWest is now sweeping our culture as well and more people are now celebrating many different events suchas birthdays, ceremonies, anniversaries, NewYear,Valentines Day, Mothers Day etc as compared to the few events celebrated earlier such as Eid-ul-Adha, Ramadan, Eid-ul-Fitr, weddings, birthdays and get together. 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 thats the reason why many newcompanies like Gourmet are entering the Restaurants market.The acceptance and need forsuch products are growing every passing day andit is expected to grow at a higher rate in the future as well which is a very healthysign for companies like Gourmet to investsmartly and be in front.

Major strategies of Gourmet: Pricing strategy:Gourmet is having market penetration strategy by purposing low price products.Moreover,Gourmet pricing scheme is that the product cost is a certain percent of the total retail price(% is not disclosed).Gourmet has targeted the price conscious people. Product Strategy:Hygiene food product along with the attractive labeling are product strategies of Gourmet. Promotional strategy:Gourmet is offering trade promotions to their distributors.CHANNEL OF DISTRIBUTION:They are serving their customers with efficiency and effectiveness through their distribution channel.

Gourmet ice cream: A summers sweet gift for its customers is available.Instead of artificial flavours Gourmet use real pulp of fruits for its unique taste and freeze on international level of -28 degree.ICECREAM FLAVORS: Banana Chocolate chip Coconut Coffee Classic kulfa Mango Oreo cookies Praline Pistachio Strawberry Tutti fruit

AREA FOR IMPROVEMENT IN GOURMET ICECREAM:There is a lot of room for improvement in Gourmet Ice cream.Excellent firms dont believe in excellence,they only believe in constant improvement & constant change.As the biggest room in the world,is the room for improvement.Continuous improvement is better than delayed perfection.Following are some area for improvement in Gourmet Ice cream: QUALITY:Many factors, including the flavor, body and texture, melting quality, color, package, appearance, and influence quality, the overall acceptability of the product by consumers.Quality is the major aspect of consideration because without quality nothing will work. We can sell the poor quality product only once with good promotion activities but after that no body will buy the poor quality product. So promotion, marketing, advertising all these are secondary .the primary thing is only the quality .so we can increase the sale of the ice cream if we offer the better quality.Quality is not an act,it is a habit.Almost all of quality comes via simplication of design,manufacturing.. layout,processes and procedures. NO DISTRIBUTION AT RETAIL STORES:Gourmet Ice cream is only available at its own outlets.Initially it is a good strategy But now Gourmet creates a recognition among the public so now it has to expand its distribution by providing its ice cream to all the retail and Departmental stores.This will increase its sales volume that ultimately leads to a higher profitability.

EXPANSION(AVAILABILITY)Gourmet has created a sound positive position in Lahore.Now it should expand its outlet in other cities as well e.g. Multan, Gujranwala, Sialkot, etc just like that it has started operations in Faisalabad .Moreover,Gourmet icecream is available at few outlets only.They should expand the availability of gourmet ice cream at their all outlets. MARKETING:Gourmet is doing Below the line Marketing for Ice Cream.Gourmet Should use extensive marketing strategy for its ice cream.Marketing through Media Ads, Online marketing through social sites like Facebook,Twitter, etc.Gourmet can use a variety of marketing methods that will help in sale of their ice cream, including print advertisements, email marketing and direct mail.Gourmet should organize and select several tactics to promote your ice cream products.For example, create a direct mail campaign in which it send ice cream coupons. Place an advertisement in a local newspaper or Advertise its ice cream locally using billboards, fliers and coupons. Product development:Gourmet should give its ice cream as a separate SBU status.By giving this status an independent team is to be shaped that only focus on its ice cream.At present,only 12 common flavors are available(vanilla, oreo, praline, strawberry,etc); they should introduce more variety.e.g.Pumpkin, blueberry ,Cherry, peach, Cinnamon, Honey,etc.Gourmet should focus to expand its ice cream product line by developing new ice creams according to the demands of children to old ones.Gourmet can also focus on sugar free Ice Cream for diabetic or weight conscious people. separately owned ice cream parlors:Gourmet Should Open its separately owned ice cream parlors as they are financially strong.Like restaurant gourmet ice cream parlor will be a good step ahead .People go to ice cream shops to delight themselves and have a good time.Gourmet can easily open their ice cream parlors at ideal locations.COST BENEFIT ANALYSIS:A technique for comparing the costs of taking a particular course of action with the benefits achievable from the outcome.It is a method of assessing the viability of the course of action in monetary terms.The Cost benefit analysis of starting an ice cream parlor is:Cost(Rs.) Year Total

1 2 3 4 5

Rent of building 840,000 840,000 840,000 840,000840,00042,00,000

Other equipment 10,00,000 - - - - 10,00,000

Staff required 900,000 900,000900,000900,000900,0004500,000

Operating(e.g.electricity,etc)and maintenance cost 240,000 240,000240,000240,000240,00012,00,000

Total Costs 29,80,000 19,80,000 19,80,00019,80,00019,80,00010900,000

Benefits(Rs.) Years Total

1 2 3 4 5

Increase in Production518,4000 518,4000518,4000518,4000518,400025,920,000

ANALYSIS: Benefit to Cost Ratio = Value of Benefits Total Costs = 25,920,000 109,00,000 = 2.37:1 Net annual benefit = Annual Benefit Annual Cost(first year) = 518,4000 29,80,000 = 2204000 Net annual benefit = (Total Benefits Total Costs) No. of years(Average of all years) = (25,920,000 109,00,000) 5 = Rs. 3004000INTERPRETATION:Analysis is clearly showing that Gourmet will be benefited by opening its ice cream parlors as the cost incurred on opening and operating the ice cream parlor is less than the benefits obtained as a result of parlor.

No door to door service:Gourmet has not focused on door-to-door service yet.Door to door sevice plays an important part in expanding business quickly at an affordable cost.Tricycle service is Eco friendly and convenient.Gourmet should start their door to door service specially in the areas in which Gourmet has less outlets because in those areas the customer are not the brand loyal in case of the ice cream.So instead of trying more on opening the outlet, Gourmet should emphasizing on push carts, which will be more beneficial.COST BENEFIT ANALYSIS:The cost benefit analysis of starting tricycle service is:Cost(Rs.) YearsTotal

1 2 3 4 5

Purchase of TricycleLess: Discount 25,000(500) - - - - 25,000(500)

Net cost of purchase 24,500 - - - - 24,500

Staff required(salary,etc) 8,000 8,000 9,00010,000 10,000 45,000

Maintenance 4,000 5,500 6,000 6,000 6,000 27,500

Total Costs 36,500 13,500 15,000 16,000 16,000 97,000

Benefits(Rs.) Years Total

1 2 3 4 5

Fuel or gas saving 27120 27600 26880 28080 28560 138240

Increase in revenue 72000 72000 72000 72000 72000 360,000

Saving of advertising expense(Source of mobile Marketing) 50,000 50,000 50,000 50,000 50,000 250,000

Easy to ride without any training 3,000 - - - - 3,000

Total Benefits 152,120 149,600 148,880 150,080 150,560 751,240

ANALYSIS: Benefit to Cost Ratio = Value of Benefits Total Costs = 751,240 97,000 = 7.74:1 Net annual benefit = Annual Benefit Annual Cost(first year) = 152,120 36,500 = Rs. 115,620 Net annual benefit = (Total Benefits Total Costs) No. of years(Average of all years) = (751,240 97,000) 5 = Rs. 130,848Interpretation:Cost benefit analysis of starting door to door service is showing benefits more than the cost.As the cost incurred on purchasing the tricycle,labor cost,etc is less than the benefits e.g.fuel saving,easy to ride,increase in revenues,saving in advertising expenses,etc.So,Gourmet should start its door to door service to gain benefits over cost.CONCLUSION:Gourmet should take these areas for improvement seriously in order to progress.As the ultimate goal of every business should be to anticipate cutomers requirements ,delivering them preciously the same everytime, while harnessing everyones commitment.You cant buy Happieness,But You can buy an ice cream..And thats kind of the same thing :)So,Gourmet should keep on improving in order to maximize its value and attain the competitive advantage keeping in mind that There is no final destination on the improvement journey.

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