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Page 1: Project on Gourmet Icecream

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.Gourmet foods are

characterized by high quality, 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 Ich’chra,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

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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 can’t successfully carried it.Later on in 1992,he started it

again at a different 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 in Faisalabad and in New 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.

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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

World’s latest plants for beverages.Gourmet stresses hard on quality and

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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.

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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.

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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 GOURMET’s 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 Pakistan’s 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.

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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 Pakistan’s 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 Pakistan’s

Best Jam Producers.

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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.

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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 don’t have time to cook at home.Due to this reason more people are

now seeking convenience goods, which act as 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. 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 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 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

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future as well which is a very healthy sign for companies like Gourmet to

invest smartly and be in front.

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DirectorG.M Production

G.M MarketAssistant General manager

Area Managers

Complaint manager/auditor

purchase manager

Purchaser

Assistant branch supervisor

Branch Supervisor

Assistant branch supervisor

Store supervisor

Sales man

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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.

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General Manager

Regional sales officer

Area sales manager

Territory sales manager Distributor

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GOURMET ICE CREAM: ‘A summer’s 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

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AREA FOR IMPROVEMENT IN GOURMET ICECREAM:

There is a lot of room for improvement in Gourmet Ice cream.Excellent

firms don’t 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.

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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.

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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 840,000 840,000 840,000 840,000 840,000 42,00,000

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

Staff required 900,000 900,000 900,000 900,000 900,000 4500,000

Operating(e.g.electric

ity,etc)and

maintenance cost

240,000 240,000 240,000 240,000 240,000 12,00,000

Total Costs 29,80,000 19,80,000 19,80,000 19,80,000 19,80,000 10900,000

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Benefits(Rs.) Years Total

1 2 3 4 5

Increase in

Production

518,400

0

518,4000 518,400

0

518,4000 518,4000 25,920,000

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.

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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.) Years Total

1 2 3 4 5

Purchase of Tricycle

Less: Discount

25,000

(500)

- - - - 25,000

(500)

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

Staff

required(salary,etc)

8,000 8,000 9,000 10,000 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

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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

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= 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 everyone’s commitment.’You can’t buy Happieness,But You can buy an ice cream..And that’s 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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