IMPERIAL COLLEGE OF BUSINESS STUDIES

vs

Strategic Management
Foad Ahmed
A113101

Table of Contents
Table of Contents ...................................................................................................................................... 2 1. Introduction To Shehzan Bakers: .......................................................................................................... 3 MARKETING STRATEGIES OF SHEZAN ....................................................................................................... 3 MARKETING OBJECTIVES: ..................................................................................................................... 3 TARGET MARKETING: ............................................................................................................................ 3 SHORT COMINGS OF SHEZANS MARKETING STRATEGIES ....................................................................... 4 LIMITED BUDGET................................................................................................................................... 4 LIMITED USE OF MEDIA ........................................................................................................................ 4 NO USE OF DOOR TO DOOR ADVERTISEMENT ..................................................................................... 4 LIMITED BRANCHES............................................................................................................................... 4 ACCESS TO A SMALL SEGMENT OF MARKET ......................................................................................... 4 RELIGIOUS ISSUES ................................................................................................................................. 5 2. Introduction To Gourmet Bakers .......................................................................................................... 6 MARKETING STRATEGIES OF GOURMET ................................................................................................... 6 TARGET MARKET SEGMENT .................................................................................................................. 6 MARKETING MIX ................................................................................................................................... 6 Pricing.................................................................................................................................................... 6 Distribution ........................................................................................................................................... 6 Advertising and Promotion ................................................................................................................... 6 Customer Service .................................................................................................................................. 7 SERVICE BUSINESS ANALYSIS ................................................................................................................ 7 Restaurants ........................................................................................................................................... 7 Ice Cream Shops .................................................................................................................................... 7 Donut and Coffee Shops: ...................................................................................................................... 7 Supermarket: ........................................................................................................................................ 7 3. GOURMETS COMPETITIVE EDGEOVER SHEZAN................................................................................... 8 Product ...................................................................................................................................................... 8 Service ....................................................................................................................................................... 8 Competition and Buying Patterns ............................................................................................................. 8 OUTLETS AT MORE APPEALING PLACES ................................................................................................... 8 2

1. Introduction To Shehzan Bakers:

Shezan bakers are the leading bakers & confectioners of Lahore for over two decades.T h e y a r e k n o w n f o r t h e i r p u r e a n d h i g h c l a s s i n g r e d i e n t s , t h e b e s t q u a l i t y a n d h y g i e n i c environments. Shezan Bakers and confectioners (PVT) is run by CH. MUHAMMAD AFZAL and has over 20 branches in Lahore.

MARKETING STRATEGIES OF SHEZAN

Shezans advertising budget is very limited, so the advertising program is simp l e . Shezan's will do direct mail, banner ads, likely to be the most successful of the campaigns. MARKETING OBJECTIVES: Marketing objectives of Shezan show their determination towards achieving th e i r mission. They aim at: Maintaining positive, steady growth each mont h. Experience an increase in new customers who are turned into long -term customers. Realize a growth strategy of one store per year. TARGET MARKETING: The market of Shezan bakers can be segmented into three target populations: Individuals, i.e. people that dine in by themselves. Families: a group of people, either friends or a group of nuclear relatives d i n i n g together..Fo r t h e p u r p o s e o f a n a l y z i n g i t s c u s t o m e r s , S h e z a n B a k e r s c o m b i n e s s e v e r a l k e y demographic factors, which helps it to arrive at a profile of the primary customers as follows: Sophisticated families who live nearby. Young professionals who work close to the location. Shoppers who patronize the high rent stores

Take out: people that prefer to eat Shezans food in their home or at a d i f f e r e n t location than the actual outlet.

SHORT COMINGS OF SHEZANS MARKETING STRATEGIES

Shezan bakers marketing and promotional strategies are not upto the mark. Their currentmarketing plan is not as per the requirements of current scenario. When we compare their policywith other major bakers and confectioners, not only in Pakistan but also internationally, we finda number of short comings some of which are as follows:LIMITED BUDGET Shezan bakers have a very limited budget for the purpose of advertis e m e n t . T h e management has a concept of all is good, and resultantly they dont feel any need of marketing budget allocation. LIMITED USE OF MEDIA They do not use any type of electronic media for the purpose of advertisement. More over Shezan bakers has not used any types of banners, brochures or any other print media for theadvertisement of its products. NO USE OF DOOR TO DOOR ADVERTISEMENT Door to door marketing is a very helpful strategy for making the product k n o w n t o general publics. But unfortunately bakeries of Pakista n do not consider this simple techniqueimportant in their processes. This is why they are not as famous, among their customers, as the bakeries of other countries LIMITED BRANCHES Branches of Shezan bakers are situated only in the very selective areas of Lahore. Theyare not even spread all over the city. This situation does not allow more persons to be loyalcustomers of Shezan. They have to change their priorities regarding bakery products, with the change in place. ACCESS TO A SMALL SEGMENT OF MARKET Due to lack of advertisement Shezan has a very limited share of market. Another reasonof a minimal market share is that Shezan is working only in Lahore, though it is working since 1980.

RELIGIOUS ISSUES Shezan bakers is facing some kind of boycott by its customers due to some religious issuesi.e. the company is owned by Qadiyanies, and it is involved in the movement of influencing theMuslims to change their religion to Qadiyaniyat.

2. Introduction To Gourmet Bakers

Gourmet Bakers and Sweets is the larges t food retail chain of Pakistan. It is based in Lahore, the second largest city of Pakistan known for its traditional foods and passion for eating. With 2 processing units and 30 sales outlets Gourmet outreach to a huge population for their food needs. The company has shown an explosive annual growth of more than 25% in its business since 1987, when Mr. Muhammad Nawaz Chatha started this unique business with only one sale outlet. With his commitment and strenuous efforts to provide the consumers with best quality food products in a convenient and unmatched displaying manner, Gourmet has become a success s t o r y o f b u s i n e s s g r o w t h i n P a k i s t a n . A t m o m e n t , G o u r m e t h a s m o r e t h a n 1 7 0 0 e m p l o y e e s working in the organization.

MARKETING STRATEGIES OF GOURMET

The foundation of every successful sales operation is a great marketing strategy. One should not expect to build a store front or website and sell anything without any sort of promotion. TARGET MARKET SEGMENT Gourmet has specifically targeted segments of people with an appreciation for delicious bakery products and a need for comfort and relaxation. Gourmet Sweets is a heaven for the busy& successful who want to treat themselves to something soothing and tasty! It doesn't take a lotof time, yet is so rewarding. These people will value the high quality product presented without p r e t e n s i o n . T h e c u s t o m e r s a l s o a p p r e c i a t e t h e f u n a n d f a s t s e r v i c e - w h e t h e r c e l e b r a t i n g a birthday or stopping in before a picnic. MARKETING MIX Gourmet's marketing mix is comprised of these following approaches to pricing, distribution,advertising and promotion, and customer service. Pricing Gourmet's pricing scheme is that the product cost is a certain percent of the total retail price.(% is not disclosed) Distribution Gourmet's food will be distributed through a take out model where customers can call in their order and come to the bakery to pick it up, come into the bakery, place the take out order and wait for it to be completed. Advertising and Promotion The most successful advertising will be banner ads.

Customer Service Obsessive customer attention is the mantra. Gourmets philosophy is that whatever needsto be done to make the customer happy must occur, even at the expense of short-term profits. Inthe long term, this investment will pay off with a fiercely loyal customer base who is extremelyvocal to their friends with referrals. SERVICE BUSINESS ANALYSIS Although Gourmet Sweets & Bakers is creating a new niche in the food service industry, they doshare similarities, and therefore compete with several kinds of businesses:Restaurants Any restaurant offering bakery foods like pizzas etc. Ice Cream Shops As gourmets products also include ice-cream it do compete with ice-cream parlors nearby. Donut and Coffee Shops: Any place coffee and pastries are available for carry -out or dine-in consumption. Supermarket: I n s t o r e b a k e r i e s a s w e l l a s f r o z e n s p e c i a l t y p r o d u c t s o f f e r s o m e competit ion.

3. GOURMETS COMPETITIVE EDGEOVER SHEZAN

Gourmet Bakers and Sweets positioning will leverage its competitive edge:

Product
The gourmets products have the freshest ingredients including cheeses,o r g a n i c v e g e t a b l e s , a n d t o p s h e l f m e a t s . T h e p r o d u c t s a r e a l s o d e v e l o p e d t o e n h a n c e presentation, will be aesthetically pleasing. imported everything

Service
Customer service is the priority. All employees ensure that the customers are having the most pleasant dining experience. All employees use to go through an extensive training program and only experienced people are hired. By offering a superior product, coupled with superior service, Gourmet excels relative to the competition.

Competition and Buying Patterns

Although Gourmet Sweets is taking up a new niche in the bakery industry, there is no doubt that they are competing with a variety of similar businesses. They want every day to be a reason to celebrate. And being able to watch the gourmet products be prepared by a chef is a treat that appeals to everyone. While price may be a factor when competing against Ice Cream and Pizza Shops, t h e s e same consumers who are willing to pay a small price for a scoop of ice cream a r e already conscious of a better quality product. Gourmet believes that they will be equally as willing to spend a little extra for an extraordinary product in a warm and friendly setting. The comfort factor also plays an important role in consumer decisions about sweets. Both the atmosphere and staff of Gourmet Sweets excel at warm & friendly. And the menuw i l l r e f l e c t " c o m f o r t f o o d " d e s s e r t s a s o p p o s e d t o i n t i m i d a t i n g d e s s e r t s t h a t r e s e m b l e architectural collosi. It uses the highest quality products; sometimes paring the ordinary with the exotic, but these are always presented in a un-intimidating manner.

OUTLETS AT MORE APPEALING PLACES

Gourmet Bakers and Sweets is not limited only in Lahore, like Shezan Bakers a n d Confectioners. The products of gourmet are offered in many cities other than Lahore