Business strategy on Gourmet pakistan.

2. Chamky ghar ghar main…!!

3. Presenters:
Muhammad Talha
Nouman Riaz
Adnan Siddique
Siam Azad
Ali Shahid

4. 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

5. History of Gourmet

6. 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

7. Gourmet history:
Employees 4500+
Processing units: 7
Outlets 836+
• Islamabad • Rawalpindi
• Lahore • Gujranwala
• Faisalabad • Gujrat
• Jalalpur Jattan • Sheikhupura
• Shahdara Bagh(A tehsil of
Sheikhupura)
• London
• England • New York City, America.

8. Mission
“To respond to
customer desires
and to extend its
existing product
lines.”

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

10. Portfolio analysis of
Gourmet

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

12. • BCG matrix
• Competitive strategies, competitive position and environment
• sustainable competitive advantage
• Distribution analysis
• Core competencies
• strategies

13. Restaurant

14. Some common issues
1. Threat of new entrants:
2. Threat of substitute:
3. Bargaining power of buyer:
4. Bargaining power of supplier.
5. Current rivalries:
Gourmet competitor

15. 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

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

17. Corporate strategies

18. Corporate strategies
Integration strategies:
• Backward vertical integration
Gourmet 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

19. 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 kabab
Focus strategy :
Gourmet focuses middle class.

20. Gourmet restaurant
products life cycle strategy

22. BCG matrix for gourmet
restaurant

24. Adnan Siddique
Lc-2970

25. Bakers and
Sweets
• 1987
• It was started
with a single
outlet in Ichra.

26. Bakers and Sweets
Gourmet Bakers growth:
Lahore
Gujranwala
Faisalabad
Rawalpindi Sialkot
Multan etc.

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

28. Competitive strategy

29. 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

30. Product Strategies
•Attractive Labeling
•Strong Brand Name
•Variations in the Packaging Material

31. Distribution Channel
They are using both direct and indirect strategies
Single level channel:
Manufacturer Retailer Customer
Dual level channel:
Manufacturer Wholesaler Retailer Customer
Vertical integration (zero level channels):
Manufacturer Customer

32. BCG Matrix for Gourmet
Bakers

34. 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.

35. Raja Saim Azad
Lc-2989

36. Topic: Gourmet beverages

37. Product Line:
Here are the beverages which gourmet is offering
Cola
Lemon
Malta
Apple
Twister
Soda Ice-Cream
Diet Cola
Diet Lemon
Bon Vivant (Premium Cola)

39. Product Strategies:
AtaulHassnain
The Product Strategy of Gourmet is :
Attractive Labeling
Strong Brand Name
Variations in the Packaging
Material

40. 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

41. 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

42. 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.

43. Segmentation and targeting strategy
Gourmet Segmented the market
Geographically and by the life style
AtaulHassnain

44. 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

45. AtaulHassnain
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

46. From Hamid Bukhari Cont...
Pepsi and coke had never reduced their prices in
Pakistan expect Ramadan
For 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.

47. 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 quality
And hence the customers switched from Pepsi or
Coke to Gourmet

48. Current Strategy:
Gourmet is now focusing to expand the business
geographically
Product availability via eye view
Competitive price to Penetrate the Market
A Decent and well managed supply chain

49. Ali Shahid
Lc-2961

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

51. Core competencies
Sumptuous Food!
Extraordinary Service!
Courteous And Prompt!
Reasonable Rates!

53. 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.

54. competitors
Nadeem caterers
Butt’s caterers
Sohail caterers
Hanif caterers
Nizam caterers
Time and taste caterers
Azeem caterers

55. 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.

56. 37% growth rate

57. Nouman Riaz
Lc-2977

59. • 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

60. Immediate competitors
1. Fazal din Pharmacy
2. Mahmood Pharmacy
3. Servaid pharmacy

61. Competitive environment
• No single buyer or seller
has influence on market
• Easy entry to market
• Consumers are free to buy
any product
Pure

62. Sustainable Competitive Advantage

63. 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

64. Competitive strategy
• Cost leadership or low
cost strategy
• Offering discounts of 6 to 13% on
opening

66. Corporate strategy
Growth Stability Renewal
Diversification

68. Gourmet Pharmacy in BCG matrix

70. Recommendation

71. 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.

72. In the near future