Gourmet is preparing to launch Gourmet Cola, a range of beverage drinks in a mature market in Pakistan. Our product includes a variety of beverages at a low price. The beverages included are Cola, Malta, Lemon up, Apple and Ice-cream Soda, in six different sizes from 300ml to 2.25 liter. We are targeting market segments in the consumer market taking advantage of high demands of beverages by consumers nowadays belonging to all income groups.
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The developing beverage market in Pakistan is hard to break into due to tough competition from competitors. Keeping this in mind, Gourmet Cola needs to come up with a professional and effective marketing plan. When establishing a marketing plan every aspect of the marketing plan must be critically examined and thoroughly researched. This consists of examining market research, auditing business, current marketing situation analysis by 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 through a SWOT analysis, and critically examined the industry in general the most suitable market strategies will be administered effectively. Through market research the reaction of the product in the market will be evaluated.
Current Marketing Situation
The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current value terms. Carbonates dominate the market in both the on-trade and off-trade with the lion’s share of sales. Carbonates have become part of the culture in Pakistan and multinational companies have maintained their standards over the years to provide consumers with high-quality carbonated drinks. Around 120 million sales of beverages takes place in Pakistan annually.
Gourmet was founded in 1987, by Mr. Nawaz Chatta, in Lahore and started its operations as a bakery and confectioner shop. It has diversified into a versatile food company over 25 years and has since then started manufacturing many of their own food products. Gourmet Cola is one such venture of Gourmet. Since the emergence of Gourmet bakers, it has shown explosive annual growth of more than 25% in its business. Gourmet has limited their outlets to Lahore only, until recently. Now Gourmet is spreading its company and has opened branches in Gujranwala and Faisalabad.
Beverages, nowadays, have become a part of every household. Gourmet has kept this demand in mind and has decided to launch its own beverages line. But the competition in this market is very intense. Two major beverage companies have taken over the market i.e. Pepsi Cola and Coca Cola. Both these companies share about 85% of the market share among themselves. Gourmet Cola must target specific market segments with their range of beverages so as to gain more consumers.
Gourmet Cola’s market mainly consists of consumers who buy beverages frequently and would prefer to buy them at a lower price than the rest of the market. As a wide range of beverages are being offered by Gourmet Cola, specific segments are targeted in the market.
Consumers can choose between five different flavours from bottle sizes ranging from 300ml to 2.25 litres. The price is also reasonable and can be easily afforded by consumers belonging to low income groups. Gourmet Cola also caters to the needs of old people and health conscious consumers by providing Apple flavor in their drinks. (See table)
Refresh themselves during activities.
To entertain friends/guests.
Is cheaper than other drinks in the market.
Is available in sizes ranging from 300ml to 2.25 liters.
Is available in a variety of flavours that are not available in the market such as Apple and Ice cream Soda.
Low Income Group
To attain drinks at a low cost than what is being offered at the market.
Gourmet Cola is being launched at a very low price so as to attract the low income group.
To get good quality drinks/beverages.
Gourmet Cola does not compromise on quality.
It is available in different bottle sizes, thus catering to every consumer needs.
Apple drink is being provided for health conscious people.
Gourmet Cola offers the following features to the consumers.
Low price than its competitors.
5 different flavours which include Cola, Malta, Lemon Up, Apple and Ice-Cream Soda.
Is available in different bottle sizes i.e. 300ml, 500ml, 1 liter, 1.5 liter and 2.24 liter.
Gourmet Cola will be sold in easily disposable/recyclable plastic bottles.
Will be easily available at all Gourmet outlets around the city.
Gourmet plans to launch two new products by next year, after the sales objective of Gourmet Cola is met. These two new products will be Bon Vivant Premium Cola and Pulpy Orange drink.
Bon Vivant Premium Cola will be better in quality and taste.
Pulpy Orange Drink will provide a fresh alternative to carbonated drinks for health conscious consumers.
Gourmet Cola has mainly two competitors in the market. These two competitors are Pepsi Cola and Coca Cola. Many other small ventures also exist in the market but they constitute to only about 5% of the share in the beverages industry. Key competitors include:
Pepsi-Cola. From around the 120 million soft drinks sales in Pakistan, Pepsi-Cola constitutes to about 70 million sales annually. Pepsi offers a wide range of drinks. These include:
These drinks are available in plastic bottles and tin cans. Varieties of sizes are also offered by the company raging from 175ml mini bottle to 2.25 liters jumbo-sized bottle. Pepsi does not have a specific outlet and can be bought from any shop or store in the city.
Coca-Cola. Coca Cola is the second largest beverage industry in Pakistan. It constitutes about 30-35% soft drinks sales. Coca cola also offers a variety of products;
Diet Coca Cola
Varieties of sizes are also offered by the company raging from 175ml mini bottle to 2.25 liters jumbo-sized bottle. Pepsi does not have a specific outlet and can be bought from any shop or store in the city.
Despite this strong competition in the market, Gourmet Cola can carve out its name in the industry. The prices offered by Gourmet Cola are sure to give us an edge in the market. Also the flavours offered by Gourmet Cola are different and will surely attract a variety of consumers.
Channels and Logistics review
Gourmet Cola will be distributed to consumers through a network of retailers in the city. The most important channel partners used will be:
Gourmet Outlets. Gourmet Outlets will carry Gourmet Cola.
Grocery Stores/ Utility Stores/ Service Stations. All stores that provide consumers with basic necessities will sell Gourmet Cola.
SWOT Analysis will analyze the internal environment (Strengths and Weaknesses) and the external environment (Opportunities and Threats) of Gourmet Cola.
The SWOT Analysis of Gourmet Cola is as follows:
Low Price. The greatest strength of Gourmet Cola is its price. Gourmet Cola will be priced Rs.45 per 1.5 liter. This price is very low compared to its two main competitors; Pepsi and Coca Cola. These companies sell their drinks at Rs.70 per 1.5 liter.
Variety of flavours available; Cola, Malta, Lemon Up, Apple and Ice Cream Soda.
Variety of sizes. Gourmet Cola will be available in varying sizes; 300ml,0.5 ltr, 1.5 ltr, 2.25 ltr.
Provides quality taste.
Gourmet Cola will be available in consumer friendly plastic bottles.
These drinks will be available at every Gourmet store easily.
Gourmet Cola has the financial backing of Gourmet-Gourmet is one of the strongest brand names in the cities it operates in.
Gourmet has not opened many branches outside Lahore and thus is not known by people who live in cities far away. Thus Gourmet Cola will not be preferred by them.
Gourmet is not focusing properly on promotion tools such as advertisements. This will affect the sales of their products.
Gourmet cola will only be available in plastic bottles. It will not be available in tin packs or glass bottles. This can result in many youngsters turning away from Gourmet Cola.
Consumers view Gourmet as a bakery and grocery store. Many consumers would hesitate to buy Gourmet Cola due to this problem.
The soft drinks market in Pakistan enjoyed dynamic growth over the review period in both volume and current value terms. Gourmet Cola can take advantage of this growth.
The government of Pakistan has reduced excise taxes to encourage soft drinks manufacturers. Gourmet Cola can continue to provide their products at a low price.
Gourmet has many cities to capture and through this they can increase the distribution of Gourmet Cola.
Gourmet is a well-known brand and they can use this to their advantage for selling Gourmet Cola to retailers. More the retailers, more the sales.
One of the major threats that Gourmet Cola has to face is in the form of its two competitors; Pepsi and Coca Cola. These two companies have a very strong hold in the market and breaking their status is going to be very difficult by Gourmet Cola.
Gourmet needs to market their company in cities where they do not have outlets to make consumers more aware about their product.
Pepsi and Coca Cola have a huge advertising campaign which needs to be encountered by Gourmet Cola.
Objectives and Issues
First Year Objectives:
During the initial year of Gourmet Cola we plan to increase sales by 20%.
Second Year Objectives:
Our second year objectives are to increase sales by 50% and to be in the top market.
In relation to the product launch, our major issue is the ability to establish a well-regarded brand name linked to a meaningful positioning. We will have to invest heavily in marketing to create a memorable and distinctive brand image projecting innovation, quality and value. We also must measure awareness and response, so we can adjust our marketing efforts as necessary.
Gourmet Cola’s marketing strategy is based on product positioning. Our primary consumer target market is low to middle class consumers who cannot afford beverages at a high cost on a daily basis. Our secondary consumer target market consists of mainly youngsters who would want to get low rice beverages in easy to carry bottles.
Gourmet Cola is being positioned being very low in costs compared to other soft drinks. It promises to provide quality taste at such low prices. Gourmet Cola is also available in six different flavors which make it different than other beverages in the market.
Gourmet Cola is going to be available in six different flavours. These flavours include Cola, Malta, Lemon Up, Apple and Ice Cream Soda. As no other beverage company offers these flavours, Gourmet Cola can attract more consumers. Gourmet Cola is going to be available in plastic bottle sin sizes ranging from 300ml to 2.25 liters. The logo of Gourmet Cola will follow the style of the original Gourmet logo, so as to make consumers more comfortable with the product.
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Gourmet Cola is going to available in low prices with the prices ranging according to the size of each bottle. Price of the smallest bottle i.e. 300 ml will start from Rs. 25 and will continue to Rs. 60 for 2.25 liters. The price of the 1.5 liter bottle will be Rs.40. these prices are very low compared to other beverages. The company has implemented these prices to attract more consumers and to break the stronghold share of Pepsi and Coca Cola in the market.
Gourmet Cola’s distributions strategy for the first year is very selective. Gourmet Cola will only be available in Gourmet outlets at first. This is to make the consumers more familiar with the brand. After this Gourmet Cola will be distributed to different cities in departmental stores and service stations. Gourmet Cola will also be distributed to road side kiosks. These kiosks are very convenient for the low income class which we are targeting. We also plan to arrange special payment terms for retailers that place volume orders.
Marketing Communications Strategy:
Gourmet Cola will advertise its drinks through different means. We will use advertisements as a basic tool of advertisement. Through advertisements on radios and televisions we will be able to target out target market. Through the use of posters and paints company trucks, we can advertise our products. Gourmet outlets are an effective medium at which we can carry out our advertisements.
Gourmet Cola can also give incentives to outlets which makes good sales. Offering discounts to retailers will help maintain good relationships with them and will increase sales.
By using research, Gourmet Cola will identify the specific features and benefits that are required by our target market. Feedback from tests, surveys and focus groups will help us develop Gourmet Cola. We will also measure and analyze customer’s attitudes towards competing brands and products. This will help us determine on how to go on with the promotion of our product. At the end we will use customer satisfaction studies to analyze market reaction.
Gourmet Cola’s Marketing Manager, Nasir Nazir is responsible for the company’s marketing activities. Gourmet Cola has hired a whole team for the marketing of Gourmet Cola.
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