Marketing Plan

Gourmet Soft Drinks

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Introduction
 The following marketing plan forms the basis for the introduction of an
innovative new product by the Gourmet. The analysis allows us to outline the best
strategies to follow for the achievement of the company’s strategic goals. “Gourmet
Cola” is marketed as a unique fizzy drink while striving to reinforce the company’s
status as the leader in innovation and successful product launches like gourmet dairy
which is a huge success. Success of gourmet cola will be reflected by a sizeable
capture of market shares within the market, while strategically carrying the company
up to the top spot as the market leader in the segment of soft drinks while they enjoy
their success in confectionery and dairy products.

Executive Summary:

“Gourmet Bakers and Sweets” is the largest food retail chain of Pakistan. It is
in Lahore, the second largest city of Pakistan known for its traditional foods and
passion for eating. With more than 90 sales outlets gourmet outreach to a huge
population for their food needs. The company has shown annual growth of more
than 30 % in its business since 1987, when Mr. Muhammad Nawaz Chatha started
this unique business with only one sale outlet. With his commitment and strenuous
effort to provide the consumers with best quality food products in a unmatched
displaying manner, Gourmet has become a success story of business in Pakistan. At
moment gourmet have almost 1700 employees working in the organization.

Gourmet Bakers is one of the fastest growing local baker and confectioner
stores in Pakistan. Being a local company, their approach towards business is both
professional and highly aggressive. Gourmet now has an outlet in almost every nook
n corner of Lahore and also an outlet in Jinnah Super Islamabad. Think of any
suburb of Lahore and you'll surely find a bright orange signage with a big bold
Gourmet written in bright white. Started as a bakery and sweet shop, soon turned
into a medium sized cash n carry retail outlet and has further expanded into
launching a number of successful company owned products, ranging from milk, ice
creams, rass malai and many more.

Gourmet Cola:

The recent and probably the most impressive launch has been Gourmet Soft
Drinks. Gourmet cola is a fizzy carbonated soft drink. The strategy of this drink is to
give same equivalent taste as of international brands in fewer rates and emphasize
consumer to buy local drink. Gourmet soft drinks are available in six flavors.

 Gourmet Cola (Original Caramel Flavour)

 Gourmet Malta.
 Gourmet Lemon Up.
 Gourmet Twister
 Gourmet Apple.

Gourmet Cola is quite reasonably priced at PKR 45 for one and a half liter bottle, a
much lucrative offer as compared to the PKR 65 price offer by the international
competitors Coke & Pepsi. Gourmet has cancelled a yearlong contract of worth PKR
15 million with Coke and removed it from all company outlets to promote its own
brand.

SITUATION ANALYSIS

Market Summary

Soft drinks attract all type of consumers. People of all age group like soft
drinks with their snacks, meals, meetings etc. An in-depth analysis of different
categories of soft drinks during the period, that are Carbonates sales produced not a
smooth raise but instead after some time gave a rigorous incline, which is very much
similar to Bottled Water sale market, only the difference occurs is prior product return
or growth inclined double in pace respected to its previous record; still they are not in
comparison to Carbonate drinks. Whereas the market record for functional drinks
and juices have kept a smooth incline over the years.

The cause for the market positive growth towards soft drinks can be estimated
to multiple reasons falling into increasing population trends towards soft drinks
intakes such as weather perceptions, Pakistan climate face through the year warm
and humid weather conditions which causes dehydration and increase in thirst.
Although this condition is considered to be continues as liquid is 75% of human body
part but during the time line due to the increasing society awareness towards
marketed products have put forwarded a large impact on the growth of soft drinks
sale.
Invention of energy drinks and their intakes have become a fashion trend and
life necessity. Market competition between soft drinks brands such as Coca Cola and
Pepsi have presented various commercial profitable schemes not only to increase
the sale of growth but to stand in competition. Soft drinks are not only considered a
liquid intake but a life standard necessity between friends, colleagues and family
affairs, which major concerning party is marketing field, advertisements. Holidays
and particular religious events such as Eid and Fasting month triggers increase in
their prices and sales. These increases in sale revenue are independent of season
or weather conditions. The events may fall is warm weather increases their sales but
in other seasons such as winter the sales does not get affected but keep a steady
outline.
S.W.O.T Analysis:

Strengths:

Firstly Gourmet is priced at a lower level than that of its competitors. Secondly
Gourmet is a Pakistan based company and people tend to adopt its products with
more ease keeping in view national pride. Thirdly Gourmet Cola is a product of
Gourmet bakers which already has managed to gain the trust of consumers when it
comes to service, quality and corporate responsibility. Due to this people are already
aware of the brand and in return will have a higher tendency to adapt to Gourmet
Cola.

Weaknesses:

One of the major weaknesses of Gourmet is the lack of availability in stores

other than Gourmet Bakers itself. Importantly gourmet bakers have branches only in
Lahore. The reason behind this is that the distribution channel of Gourmet is not very
effective whereas Coke is available in every corner of Pakistan. Secondly Gourmet is
not financially very strong when compared to its major rivals which are Coke and
Pepsi. Thirdly Gourmet is not investing enough in its promotion and advertising
which has resulted in less awareness among consumers. Lastly they are not
promoting any social events that are taking place in the community which helps in
creating a positive vibe with customers.

Opportunities:

Gourmet has the benefit of being a Pakistani company which its competitors
don’t have. This is one of the major competitive factors which have the potential to
make Gourmet one of the leading brands in Pakistan provided that Gourmet is able
to provide constant value and quality to its customers. Since the past few years a
movement has been launched by different lobbies to boycott Coke and Pepsi and
this has also created a very solid opportunity for Gourmet to gain consumer
acceptance. Another factor is that Gourmet Colas parent brand Gourmet Bakery has
been able to gain the confidence and trust of the masses over the years and using
this as a base Gourmet Cola can also gain a considerable market acceptance.
Gourmet also needs to invest in social events and activities so that their corporate
image can be improved. Another major opportunity for them is that they can get into
contracts with major food chains all over Pakistan.

Threats:

There are a number of threats that can affect Gourmet. Firstly Gourmet is
facing very strong competitors such as Coke and Pepsi who are well known brands
all over the world. Secondly as Gourmet is a new entrant in the soft drink market
they need all the finance they can get. In order to do this Gourmet needs to increase
its price but at this stage they also need to be competitive and for that it is impossible
for them to increase their price. Thirdly they also face the threat of new entrants
entering the market.
Competition:
The main competitors of gourmet cola are coco cola and PepsiCo. Both
companies were founded in late 18th century. They are leaders in soft drink industry
and both have their roots in Pakistan from a very long time. Both companies are
financial giants and usually buy local companies which make soft drinks. It is hard for
gourmet cola to survive in market but they have edge of their prestigious local brand
name for other superb products.
Another competitor to gourmet cola was amrat cola. Amrat cola was also a
local manufacturer of soft drinks in Pakistan. Amrat cola was a huge success at the
time of launch but their sale decreased with the passage of time as Pepsi and coca
cola introduced new products in market. Amrat cola has a huge edge over gourmet
because gourmet cola is still restricted to Lahore and their own sale points whereas
amrat cola is available all over the country and it is a success in rural areas due to
fewer rates compared to major competitors and unavailability of gourmet cola.
Product Offering:

The gourmet soft drinks are available in different packing which are of high
standards. Following is the direct comparison of gourmet soft drinks and their rivals
in market.
Gourmet Cola Vs Pepsi and Coke:
Taste is almost similar to Pepsi or Coca Cola. It is typically the same flavour
as other local companies offered before. The security of Coca Cola and Pepsi
formula is not a joke, that’s why no one can easily make a Cola like them. Taste is
inferior and much sweeter than Pepsi & Coca Cola. They need to improve their
flavour to get a larger market.
Gourmet Lemon up Vs Sprite and 7-Up:
It doesn’t match with big brands like Sprite and 7Up. But in case of lemon
flavour every local company manages to make it good. It might because the access
of lemon flavour don’t make the taste bad where as in case of cola; if one use more
flavour quantity than it will be completely in no-to-take list. Like Cola it is little sweeter
but we can accept this sweetness in lemon flavour.
Gourmet Malta Vs Miranda & Fanta:
In competition with Miranda and Fanta, we have Gourmet’s Malta. How good
it feels with a casual name like Malta, easy to catch up consumer’s mind. How great
that someone choose Urdu word for their product. Like else Lemon flavour, Orange
flavour is also easy to make. However in Gourmet’s Malta the amount of carbon
dioxide is less than Miranda or fanta. By increasing this we can have more fizzy
touch which is a spice of this flavour.
Key to Success:

Main key to success for gourmet cola is its price and its wide network of sales
point in Lahore. There are some issues with the taste which can be made better and
gourmet cola can increase its sale. Gourmet cola also lacks behind in packing of soft
drinks in different format, such as cans etc. Gourmet cola can be a huge success as
people of Pakistan are loyal to local brands if they give same standard as of their
rival international brands.
Another point which can make gourmet cola a success is availability of
gourmet cola in different fast foods. International fast food chains like MacDonald’s
and KFC sell Pepsi and coke with their deals. There are huge numbers of local fast
food chains which are now well established. Gourmet can easily mold them to sell
gourmet cola instead of international brands by giving them better options and deals.

Critical Issues:
The main critical issue for gourmet cola is strong financial and market stability
of its rivals PepsiCo and coca cola. They have invested a lot of money in marketing
and advertisement. They won’t let gourmet cola to arise and steal their market share.
Pepsi and Coke have indulged their products in people mind by strategic
planning and advertisement. Pepsi also has sponsorship deals in international
cricket teams. The Pakistan cricket team is just one of the teams that the brand
sponsors. The team wears the Pepsi logo on the front of their test and ODI test
match clothing. So gourmet cola should plan good marketing and advertisement
planning to overcome sale of their rivals.
 Marketing Strategy

Mission:
The mission of gourmet cola is to create a strong consumer awareness
towards a completely new product from gourmet, to establish a wide brand
recognition through the capture of market shares in the soft drinks segment, and to
become the top market leader in that particular segment within the forecasted sales
figures. (Proposed)

Marketing Objectives:

Marketing objectives for the gourmet cola should be based on AIDA model.
To attract more consumers and gain market share gourmet cola should follow
following model.

 Awareness
 Interest
 Desire
 Action

Following mediums can be used for marketing

• Print media
• Pos material
• TV commercial
• Billboards and holdings

ACTION
 Sales
promotions
DESIRE
 Feature and  Celebrity
aspiration endorsements
INTEREST
based TV ads  Contests on
 Launch at
 Interactive web portals
Rock show
AWARENESS web portal-  Sponsoring
 Sponsoring TV
games, share shows
 Teaser shows(Like
stories,  Organize
campaign Coke Studio)
moments, sports events
 Print ads  Sponsoring
college songs etc
 Hoardings
festivals
 TV ads
Financial Objectives:

The financial objectives of gourmet cola are very important to gain market
share. The competitors of soft drink with gourmet cola are Pepsi and coke which
are financially very strong. The main aim of gourmet cola should not be too earn
from product in the beginning but to promote its product by every means.
Following are the expenses in manufacturing of soft drink.

1. Manufacturing Costs – Variable Cost

2. Advertising and Marketing Budget – Fixed Cost
3. Administrative Overheads –
4. Distribution – Variable and Fixed

Target Market:

The gourmet cola soft drinks are generally for all consumers. People of all age
group enjoy soft drinks. However, there are some brands, which target specific
consumers. For example, gourmet diet soft drinks are targeted at consumers who
are older in age, between the years of 25 and 39. Kids also like to drink gourmet
Malta as it is less carbonated than original caramel flavor.

Positioning:

Gourmet soft drinks are available in different and attractive packaging. It is

only local brand competing with two international soft drinks brands Pepsi and coke.
Gourmet cola is cheaper than its rival products. Gourmet cola is only available in
Lahore in only selected sales outlets, it is not available in all general stores and
super markets. Following is the complete range of soft drinks offered by gourmet.

 Gourmet Cola (Original Caramel Flavour)

 Gourmet Malta.
 Gourmet Lemon Up.
 Gourmet Twister
 Gourmet Apple.
 Gourmet Ice cream Soda
 Gourmet Diet.

Gourmet offers its soft drinks in following range of bottles.

• 1.5 Litre plastic bottle

• 1 Lire plastic bottle
• 300 & 500 ml disposable bottle.

Strategies:

The gourmet uses marketing strategies to differentiate its product from its
competitors to gain a competitive advantage. There are many strategies kept in
mind when selling a product. It includes pricing strategies, promotional strategies
and placing strategies. Gourmet cola has done well with its pricing strategies as it is
less in price than its rival. Gourmet cola is very weak in promotional and placing
strategies. Gourmet cola should emphasis on advertisement and availability of its
product country wide which also include indirect selling. For providing their product in
good manner company should provide infrastructure these includes:

• Vizi coolers
• Freezers
• Display racks
• Appealing bottles

Marketing Mix:

Marketing mix is combination of following four things.

Product

Pricing

Place

Promotion
Product:

The gourmet soft drink products include beverage concentrates and syrups,
with the main product being finished beverages. The business has over 6 brands
each of which has different taste. The gourmet packages its beverages into plastic
bottles of sizes 1.5 liters, 1 liter, 500mL and 300mL. These are not available in
aluminum cans of 375mL as all other brands available in cans which attract more
youth.

Gourmet is the most well known trademark, recognized by 94 per cent of the
Lahore's population. The business is very successful and holds a very good
reputation in field of dairy and bakery.

Price:

The prices of gourmet cola vary according to the size. The price of 1.5 liter
plastic bottle is Rs. 45. The gourmet cola products pricing are set to a very low level
as its competitors.

Place of distribution:

The gourmet uses the intensive distribution strategy for its gourmet cola. The
business's products are sold in almost every outlet of gourmet bakery. There are
more than 90 outlets of gourmet cola now in Lahore.

Promotional strategies:

The business uses a range of promotional activities. The gourmet uses

advertising as its main source of increasing consumer awareness. It mainly uses the
sign boards. There are many television advertisements on gourmet products on local
cable channels. This source allows the company's products to reach a large
audience living in the city. The gourmet bakery has highly trained sales team, which
acts as a representative of the product and promote people to buy gourmet cola.
This strategy helps to maintain service and product loyalty. It has been demonstrated
by the business to be highly effective.