Marketing Plan

Gour met Cola

Acknowledgement
Person is not a perfect in all the contexts of his life. He has a limited mind and mind thinking approaches. It is the guidance from the almighty Allah that shows the man light in the darkness and the person finds his way in this light. Without this helping light, person is nothing but a helpless creation.

The teaching of the Holy Prophet Muhammad (PBUH) were also the continuous source of guidance for us especially his order of getting knowledge and fulfilling once duty honestly was key motivation force for us.

We are also thankful to our friends and class fellows who assisted us in creating a favorable environment. Again, we are thankful to all our friends and class fellows who help and provide the moral support for completing this hard task.

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Preface
Research reports are very important part of MBA program. Keeping this thing in view we were assigned a report to elaborate The Performance Management System.

We would like to extend our appreciation to such a personality

Mr.Ahmad

Kamal, whose tireless efforts for the betterment of the student and department is much worthy. He is the asset, which is not ever to be forgotten he remained precedence for us while finishing our research report. The completion of this task without his guidance was not possible.

Maximum efforts have been exerted to complete the report and we hope that a reader will find it useful and beneficial.

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Executive Summary
Gourmet backers and soft drink as Gourmet Cola has come under intense scrutiny by investors due to its inability to effectively carry out its marketing program. Consequently it is developing a professional marketing plan which will help the business to achieve its objectives more effectively and efficiently and inevitable regain their iron first reign on the soft drink company. When establishing a rebirth marketing plan every aspect of the marketing plan must be critically examined and thoroughly researched. This consists of examining market research, auditing business and current situation (situation analysis) and carefully scrutinizing the soft drink industry and possibilities for Gourmet cola in the market. Once Gourmet cola have carefully analyzed the internal and external business environment and critically examined the industry in general the most suitable market strategies will be administered by effectively and continually monitoring external threats and opportunities and revising internal efficiency procedures.

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Marketing plan
A marketing plan is the central instrument for directing and coordinating the marketing effort. The marketing plan operates at two levels Strategic marketing plan Tactical marketing plan

Where the strategic marketing plan lays out the target markets and the value proposition the firm will offer, based on an analysis of the best market opportunities. But on the other hand tactical marketing plan specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels and services.

Situation Analysis
The most important step for developing a marketing plan is situation analysis. These analyses are very necessary and helpful for creating a marketing plan for any organization and these analyses called situation analysis. There are two concepts involved in situational analysis Market analysis SWOT analysis Now we will discuss in detail these situational analyses.

Market analysis:
The market analysis investigates both the internal and external business environment. It is vital that Gourmet cola carefully monitor both the internal and external aspects regarding its business both internal and external environment and their respective influences will be decisive traits in relation to Gourmets success and survival in the soft drinks as well as other products in industry.

a) Internal Business Environment:

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The internal business environment is very important for any organization. The internal business environment and its influence is that which is to same extent with in the business control. This environment is very important because it includes efficiency in production process. The internal business environment of Gourmet is very strong because they have great coordination among employees and their franchises in Lahore. They recruit people retired from army for the post of cashier. Thats why their internal business environment.

b) External Business Environment

The external business environment is most important as compared to the internal business environment because its influence is powerful force that can affect the whole industry and a whole economy. We an say that changes in external environment will create opportunities or threats in market place Gourmet must be aware off. These opportunities and threats can heavily influence the success of Gourmets products on the market and reception they receive from the customers. Gourmet has a feed back box which contains the feed back from the customers in Lahore. Which is very helpful for Gourmet to strong its external business environment.

SWOT Analysis:
SWOT stands for Strengths Weakness Opportunities Threats. This technique is very important and this analysis technique is much used in general management as well as in marketing scenarios. SWOT consists of examining the current activities of the organization, its strengths and weaknesses and then using this and external research data to set out the opportunities and threats that exists. Now we will discuss the detail SWOT analysis of Gourmet cola which are as followed;

Strengths:

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Gourmet is the complex part of Pakistans culture from a few time but now one of products of Gourmets industries as Gourmet soft drink is rapidly creating its image in the hearts of the people of Pakistan. This extremely recognizable brand is the one of greatest Gourmets strength in the Pakistan. Enjoyed more than five million times in a day around the Pakistan Gourmet stands as simple, yet powerful symbol of the quality and enjoyment. The strength of Gourmet is as followed;
The greatest strength of Gourmet cola is of its price, and it is just Rs.45 per 1.5 Liter

bottle. This strength is because the other soft drinks selling in Pakistan such as Coca cola and Pepsi etc have very high price as we can say Rs.70 per Liter. Mostly people in Pakistan are poor they prefer to purchase cheap goods and therefore they prefer to purchase Gourmet cola. Thats the way this has become the strength for the Gourmet company. Another thing is that of its of taste. It means that it has almost same taste as other popular brands selling in the Pakistan. So that people prefer it to drink.
Another most important thing is that it is available in every size as consumers can

purchase it according to their requirement. Gourmet cola is available in multi packing as we can say 300ml, 500ml,1Ltr, 1.5Ltr, 2.25Ltr.
The packing style of Gourmet cola is also a great strength for company. It means that its

packing is good looking and stylish and people of Pakistan like this kind of packing.

Gourmet Cola Company is that it always does business on cash and not on credit. Such kind of business may prove strength for the company.

Gourmet cola is also available in six different flavors i.e. cola, lemon, apple etc. Gourmet cola is freely available in many areas of Pakistan and this is also a strength for

Gourmet company. Putting the products in retailers is going too much effective.

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Weaknesses:
Weakness for any business need to be both minimized and monitored in order to effectively achieve productivity and efficiency in their businesss activities, the Gourmet is no exception. Although domestic business as well as many international markets are thriving. So that the Gourmet cola has the following weaknesses;
The first weakness of Gourmet cola is lack of advertisement and publicity. It means that

the Gourmet industry is not conducting as much advertisement as other brands are advertising their brands in Pakistan.
Another weakness of Gourmet cola is that it is not often available in far away areas of

Pakistan. In many cities of Pakistan mostly people are unaware from Gourmet cola.
Gourmet cola is also not available in regular glass bottle as other brands such like Pepsi

and coca cola is available in Pakistan. This is also a weakness of Gourmet cola. Mostly people like to drink in regular glass bottle but Gourmet is not available in glass.
Young generation of Pakistan likes to drink in tin pack but the Gourmet cola is also not

available in tin pack. This may be said as a weakness for company.

Another weakness of Gourmet cola is lack of taste. It means that its taste is not so much

strong as compared to other international brands selling in Pakistan.

There is also lack of franchises of Gourmet cola in cities of Pakistan. In Lahore only

there are some franchises of Gourmet and in other cities there are not present these such franchises. This is also a weakness for Gourmet Company.

Gourmet cola on the other side has effects on teeth which is an issue for health care. cola daily has an effect on body after few years.

Being addicted to Gourmet cola also is a health problem, because drinking of Gourmet

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Opportunities:
A marketing opportunity is an area of buyer need and interest that a company has high probability of profitability satisfying. So, brand recognition is the significant factor affecting Gourmets competitive position. Gourmet colas brand name is well known in most areas of Pakistan. The primary concern over past few years has been to get this name brand to be even better known. Packing changes have also affected sales and industry positioning, but in general, the public has tended not to be affected by new products.

Threats:
Currently, the threat of new viable competitors in the carbonated soft drink industry is not very substantial. The threat of substitutes, however, is a very real threat. The soft drink industry is very strong, but the consumers are not necessarily married to it. Possible substitutes that continuously put pressure on Gourmet cola include tea, coffee, juices, milk and hot chocolate. Even though Gourmet cola controls a huge percentage of entire beverage market, the changing health consciousness of the market could have a serous effect. The another threat for Gourmet cola is that its major competitiors like pepsi and coca cola are trying to throw it out of the market by reducing the price of their products and by giving huge discounts on bulk purchases. Consumers buying power also represents a key threat in the industry. Furthermore, consumers can easily switch to other beverages with little cost or consequence.

Product Life Cycle

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When referring to each and every product or service ever placed before the consumer i.e. in long term all the existing products and services are died. For example: Replacement of Ford Cortina (a highly successful car) by Ford Sierra. The replacement of Sierra by a Ford Mondeo and the replacement of old Mondeo by the new Mondeo in 2001. So, every product is born, grows, matures, and dies. So in the commercial market place products and services are created, launched and withdrawn in a process known as product life cycle. To be able to market its products properly, a business must be aware of the product life cycle of its product. The standard product life cycle tends to have five phases; Development Introduction Growth Maturity Decline Now Gourmet cola is currently in the growth stage. Furthermore, cost management, product differentiation and marketing have become more important as growth slows and market share becomes the key determent of profitability.

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Marketing Objectives
The objective is the starting point of the marketing plan. Objectives should seek to answer the question Where do we want to go? The purpose of objectives includes: To enable a company to control its marketing plan. To help to motivate individuals and teams to reach a common goal To provide an agreed, consistent focus for all functions of an organization. All objectives should be

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SMART means: Specific, Measurable, Achievable, Realistic and Timed.

Selecting Target Market

Once situational analysis is complete, and the marketing objectives determined, attention turns to target market. The soft drink market is very large, so it must choose which market segments have the greatest potential. The target market is the group of customers on whom business focuses attention. Different products of Gourmet are targeting the different markets. The main focus of Gourmet bakers is to capture elite class but the Gourmet cola focuses on middle and lower class. The target market is where Gourmet cola focuses its marketing efforts as it feels this is where it will be most productive and successful. The target market for Gourmet cola is very wide as it satisfies the needs for different customers, ranging from the healthy different flavors for its customers. Most of its favors satisfy all age groups as it is proven that most people of different age groups consume Gourmet cola. For example younger like to drink cola flavor, old age people like to drink soda flavor, and children like fanta flavor etc. There are four broad ways which Gourmet cola can segment its market. Mass marketing Concentrated marketing Differentiated marketing Niche marketing From above, the method which is used by the Gourmet cola is no doubt the differentiated marketing method as it satisfied the range of different markets. For example regular Gourmet cola, apple, fanta, ice cream, twister etc. each group of beverages satisfy a particular group of people but majority the average human.

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Developing the Marketing Mix

The marketing mix is probably the most critical stage of the marketing planning process. This is where the marketing tactics for each product are determined. The marketing mix refers to the combination of four factors Price Promotion Product

Place

That make up the core of businesss marketing strategy. In this step of marketing planning process, marketing must be designed to satisfy the wants of target markets and achieve the marketing objectives. The most successful business have continually monitored and changed their marketing mix due to respective internal and external factors

Product:
Many products are physical objects that we can own and take home. But the word product means much more then just physical goods. In marketing, product also refers to services, such as holidays or a movie, where we enjoy the benefit without owing the result of service. The business must think about products on three different levels, which are

The Core product,

The actual product

The augmented product.

The core product is what the customer is actually buying and the benefits it gives. Gourmets are buying a wide range of soft drinks. The actual product is the part and features, which deliver the core product.

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Customers will buy the Gourmets products because of good standard and quality. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are consumable goods, the augment level is very limited, but Gourmet cola do offer a help line and complaint home service for customers who are not satisfied with the product or wish to give feed back on the product.

Positioning:
Once a business has decided which segment of market it will complete in, developed a clear picture of its target market and defined its products, the positioning strategy can be developed. Positioning is the process of creating, the image the products holds in the mind of customers, relative to completing products. Gourmet and Pepsi both companies make soft drinks, although Gourmet may try to compete they will still seen as down market from Pepsi. Putting the products in retailers shop is going too much effective. Positioning help customers to understand what is unique about products when compared with the competition. Gourmet plan to further create positions what will give their products the greatest advantages in their target market. Most people create an image of a product by comparing the Gourmets products. Thus evident through the famous battles between Gourmet cola and boomer cola etc.

Branding:
It is often hard to say exactly why we buy one companys products over another. Branding means offering from the known source The companies such as Nike and Adidas spend large amount of money trying to win customers away from their competitors who make products that are very similar. But Gourmet did not spend so much money to develop their brand name but its name is trade mark in whole Pakistan. There are a no of branding strategies which can be used and these are as followed

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Generic brand strategy Individual brand strategy Family brand strategy Manufacturer brand strategy Private brand strategy Hybrid brand strategy Gourmet utilizes the individual brand strategy as Gourmets major products are given their own brand names as fanta, lemon, twister, cola and apple etc and although they maybe presented as different lines they operate under the name of Gourmet.

Packaging:
Packaging, which is not as highly perceived by business, is still an important factor to examine in the marketing mix. Packaging protects the product during the transportation, which it sits in the shelf and during use by consumers; it promotes the product and distinguish it from the competition. Gourmet cola can benefit from packaging the product with incentives and endorsements on the labeling as a promotional strategy to increase its volume of sales and revenues.

Price:
The price is very important part of marketing mix as it can affect both the supply and demand for Gourmet cola. Price is the major strengths of Gourmet products. The Gourmet mainly focuses to cut short the prices of their products as well as Gourmet cola to achieve great market shares. The mission statement of Gourmet cola tells that the main focus of Gourmet is to provide a quality product in low price. Gourmet cola does not maintain a large budget on advertisement so that they provide the good quality in low prices. Gourmet before launching cola product has its own transport system so it becomes more effective for Gourmet cola to minimize it cost.

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The price of Gourmets products is one of the most important factors in a customers decision to buy. Therefore pricing policies need to be designed with the customers and external influences in the mind, in order to affectively achieve a stable balance between sales and covering the production cost. The price strategies are very important for Gourmet because the price determines the amount of sales and profit per unit sold. Gourmet should have set a good level of price that is attractive to their customers and provides the business with a good level of profit.

Pricing Strategies and Tactics

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The pricing strategy a business will use to focus on achieving the marketing plans objectives and support the positioning of the product, take external factors such as economic conditions and competitors in the account.

There are five strategies available to business market which is as followed; Skimming pricing Penetration pricing Loss leaders Price points Discounts By using one strategy from these five the Gourmet can increase their shares in the market.

Pricing Methods:
Good pricing decisions are based on an analysis of what target customers expect to pay and what they perceive as a good quality. If the price is too high then the customers will spend their money on other goods and services. If the price is too low, the firm can lose money and go out of business. The pricing methods include: Cost base pricing Market base pricing Competition base pricing Gourmet investment in marketing is low so that as compare to competitor, they are providing low price products they are covering only the cost and take the profit in accordance to the Islamic laws.

Promotion:

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In todays competitive environment, heaving the right product at the right place at the right time may still not be enough to be successful. The promotional mix is the combination of personal selling, advertising, sales promotion and public relations that it uses in marketing plan. Above the line promotion refers to main stream media: advertising through common media such as T.V, radio, transport and news papers. Promotions tools used in Lahore by Gourmet. Although advertising is usually very expensive, it is the most expensive way of reminding and exposing potentials customers to Gourmet products.
Gourmet is utilizing below the line promotions such as contests, coupons and free

samples. The Gourmet has more than hundred franchises in Lahore, so while launching Gourmet cola they started below the line advertising. This is good enough in Lahore.
Gourmet has its own transport system which is being printed with the Gourmet cola

images and other advertisement. By being social responsible the gourmet cola provide free foods products to the capable patients in Children Hospital Lahore. Gourmet is also gives a better presentation to their valuable customers.
Gourmet is also providing better discounts to their retails which are also a promotional

tool. Gourmet is going to maintain great relationships with retailers about the good positioning of gourmet products.

Recommendation of promotional tools which should be adopted by gourmet Gourmet was established in 1998 in Lahore as has achieved a great good will and brand image so its become easier for gourmet cola to cut short their investment on advertising. But when gourmet starts launching gourmet cola outside Lahore it should maintain a high budget on promotional activities. People are not aware of the gourmet so they should

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Use teaser concept to attain the attention of the people.

Gourmet is giving hard benefits but there is an urgent need to give soft benefits to build a long term relationship.
Gourmet should provide fridge to its retailers. They should use the advertising medium like streamers, bill boards and TV

advertisement. They should advertise their events and experiences in Lahore. Gourmet should launch a magazine that provides interesting stories and product information with different recipes.

Place and Distribution:

The place of marketing mix refers to distribution of the product, the ways of getting the product to the market. The distribution of products starts with the producer and ends with the customers. One key element of places aspect is the respective distribution channels that Gourmet has elected the transport and sell its products. There are four types of distribution strategies that Gourmet could have chosen from, and these are Intensive distribution Selective distribution Exclusive distribution Direct distribution

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Gourmet cola is using intensive distribution as the product is available at every possible outlet. From super markets to service stations in our local corner shop, any where we go we will find Gourmet cola.

Implementing, Monitoring and Controlling: Implementation:

Implementation is the process of turning plans into actions, and involves all the activities that put the marketing plan to work. Successful implementation depends upon how well the business blends its people, organizational structure and company culture into a cohesive program that supports the marketing plan. For its future success, Gourmet must impose several key changes. Production needs to be time and need the quota demand from wholesaler. It must be also efficient so as not to build inventory prices. The marketing needs to be motivated and knowledgeable about the product. The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure the success of the product in stores. Distribution of the products must be efficient.

Monitoring and Controlling:

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Monitoring and controlling allows the business to check for variance in the budget and actual. This is important because it allows the Gourmet to take the necessary actions to meet the marketing objectives. There are three tools that the Gourmet should use to monitor the marketing plan and these are as followed: Sales analysis: it breaks down the total business by market segments to identify strengths and weaknesses in the different areas of sale.
Market share analysis: it compares Gourmets business sales performance with that of its

competitors. Marketing profitability analysis: it looks at the cost side of the marketing and the profitability of the products, sales territories, market segments and sales people.

Market Research:
When attempting to implement a new marketing plan a business must address its target market and conduct the relevant information to insure the new marketing plan both differs from old and its better for business. When conducting the marketing research a business must first define the problem and then gather the appropriate information to solve the problem. There are three types of information which a business can gather to solve its problem and these are as followed: Exploratory Research Casual research Descriptive Research Gourmet cola through its market research addressed all the three types of research to define the problem raised by the share holders and gather the information to serve their needs Now there are some factors which influence consumer choice and these are as followed: Psychological factors

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Economic factors Government factors When making decisions on products the business must look at these factors.

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