Post on 23-Apr-2017
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
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
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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