One bakery re known to everyone lives in Lahore; Gourmet, which gain achievement of getting maximum share of sweets and bakery very speedily. It was really appreciable that how they manage to give a good quality food in less price than other local bakeries were giving. Good quality, less price, what other thing customer could wish. Oh yeah, Reach, so they have more than 80 branches in Lahore and almost reach every part of population in the city.
After some time they started vertical integration and gives their own brand products like milk, ice cream etc. Everything was going really fine and their market share was growing day by day. They were already in a good pace but they become a bit impatient and started to launch their products more often, products like their soft drinks and mineral water. It is also a good sign to introduce more of their own products with no cost of distribution, as they only show their products in their own branches, which are almost in every part of Lahore.
But I think due to their new products launch they compromised on the quality of already existing products. They are unable to manage the quality of their sweets (mathai) which was the initial recognition of Gourmet, and which is still a highly running item. It is not only me who has experienced their low quality sweets in previous months but some other fans of Gourmet as well. My favorite sweet Gulab Jaman have become so tasteless in Gourmet that I never wish to eat it from there any more. Same is the case with other sweets and bakery items.
They have also started to raise the price day by day, everytime you go, you see the different prices, which are higher than before. They have started to present the sweets in Tin packing which weighs 200 grams rather than light cardboard packing. People started to hate them as they get only 800 grams of sweets by paying the price of 1000 grams, 1/5 th part is missing in packing. I am amazed if they would be unable to stand for their core values; quality & price, than what would happened next.
I’ve seen many of the fans of Gourmet bakers including me who tries to avoid it as much as we can. I wish they could stay more in the ‘mature’ area of product cycle graph showing at the top of this post. Well they have felt the response of the customer on packing issue and came back to the choice of customer, wheter a cardboard or Tin packing. It is a good sign and I want them to learn lessons in a speed in which they are raising their prices nowadays. Learn early and do something about it or they are already on the way of downfalling.