Gourment Cola Industry Ananlysis

Gourmet Foods is Pakistan's largest retail chain of food products with headquarters in Lahore
Pakistan.[2] It has seven processing units across the country and over 100 stores in Lahore. The
company was founded by Muhammad Nawaz Chatha in 1987. It has outlets
in Sargodha, Islamabad Rawalpindi, Lahore, Multan, Faisalabad, Gujranawala, Gujrat, Jalalpur
Jatan, Sheikhupura. It also has international outlets in London in the United Kingdom.

SWOT Analysis of Gourment 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:
Strengths
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.
Weaknesses
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.

Opportunities
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.

Threats
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.
ENVIRONMENTAL ANALYSIS
Demographics:
Pakistan has large density of population. This is the very important factor that indicates that there
is potential market for purified fruit juices. It is for both male and female of all age groups with
all income groups.
Political/Legal Factors
The beverages industry is one of the five major spinners revenue in the central excise duty (CD)
regime for the federal board of revenue of Pakistan and the variation in rate of CD imposition
will certainly affect the beverages industry.
Economical Factor
Almost 1/3 of the population is below poverty line. Upper and middle class who are health
conscious will prefer fresh fruit juices. New housing and industrial units are developed in Lahore
district which offers a big opportunity for the company to open outlets in the new housing and
industrial units. And these establishments and developments are helpful to further promote their
product.
Unpredictable law and order situation, electrical shortage and political instability is one of the
negative factor to make it difficult for Gourmet to achieve its future growth objectives
Social & Cultural
Gourmet does not affect any of the social and cultural factor like race, religion, language etc. It is
consumed by low middle & high class health conscious people. They are also implementing
concept of societal marketing by giving donations & charities in various sectors. For example
they are providing lunch boxes in Children Hospital and contributing operation fees of heart
surgery patients in PIC (Punjab institute of cardiology).
Technological & Physical Factors
Although physical infrastructure of Pakistan is not very good but Gourmet has its own Industries
and laboratories to meet quality standards and ensure value . The company is putting their best
effort to utilize latest information technologies in its business applications. For example web
based communication systems which promote paper less organization.
EFE MATRIX OF GOURMENT COLA

KEY EXTERNAL FACTORS WEIGHTS RATING WEIGHTED

SCORE
OPPORTUNITES

1 GROWING MARKET FOR 0.07 3 0.21

SPORTS DRINKS

2 BOTTLED WATER 0.06 2 0.12

CONSUMPTION HAS
INCREASED

3 Advertisement 0.08 4
4 INCREASE GLOBAL 0.05 4 0.2
EXPANSION LIKE
COMPETITORS

5 SPONSOR FITNESS PROGRAMS 0.04 3 0.12

6 INTRODUCE COMPLEMENTARY 0.05 2 0.1
HEALTH CONSCIOUS FOOD
WITH DRINKS

Threats
7 RISING COST OF RAW 0.06 3 0.18
MATERIAL

8 HUGE NO OF SUBSTITUTES 0.09 4 0.36

9 SUBSITUTES ARE DOING WELL 0.07 3 0.21
IN FITNESS MARKET

10 COMPETITORS ARE MORE 0.03 2 0.6

FOCUSING ON ENERGY DRINKS

11 Technological advancement 0.06 3 0.18

total 2.28