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McDonalds breakfast launch dilemma

Farah Naz Baig

Farah Naz Baig is Lecturer in Marketing at the Institute of Business Administration, Karachi, Pakistan.

We provide food that customers love, day after day after day. People just want more of it (Ray Kroc).

It was mid-July 2011, when Jamil Husain (Marketing Manager), Atif Abbass and Ali Raza (Marketing Executives) were sitting in the meeting room of Lakson Square Building, Karachi, in order to discuss the fate of McDonalds breakfast menu. It was Jamils idea to launch the breakfast menu in the Pakistani market. He, however, was unable to convince his team members who thought that the market was not ready to accept the breakfast option since there was a huge difference between Pakistani lifestyle and Western lifestyle. Jamil presented his arguments before them but all in vain. Somehow he knew that the same arguments if presented in front of the top management would lead to a No situation. Just then the phone rang; it was Caroline, Company Secretary, conrming the meeting venue which was supposed to take place after two days.

Background
McDonalds, a company known for its hamburgers, was founded by two brothers Richard and Maurice McDonalds in San Bernardino, California in 1948 (www.en.wikipedia.org/wiki/ McDonald%27 (accessed July 4, 2011)) which was later bought by the franchise agent, Ray Kroc in 1955. McDonalds was present at more than 33,000 locations worldwide. In Pakistan, food was a source of entertainment. This could partly be attributed to the fact that there were not many entertainment options available and partly due to the Pakistanis love for good food. McDonalds brought the branded fast food concept to Pakistan. The fast food concept was not very prevalent[1] in this South Asian market of 180 million people. However, the media proliferation, satellite TV exposure and the positive word of mouth (of people who had consumed McDonalds on their foreign tours) created the hype. No wonder one could see throngs of people gathering at McDonalds when its rst outlet opened in September 1998 in Lahore. The Karachi outlet opened a week after the Lahores opening. In 2011, there were 23 outlets operating in Pakistan (for details about the McDonalds outlets, please refer to Exhibit 1).

The author would like to thank Marketing Issues In Pakistan Class (Fall, 2011), especially Nadia Naeem, Aatira Mushtaq, Ayesha Waheed, Humayun Baber and Fizzah Shahid who helped me in this case. Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author may have disguised names; nancial and other recognizable information to protect condentiality.

Consumer behavior
The eating habit of the Pakistani consumers varied due to numerous reasons. According to a research conducted by Gallup Pakistans research, 55 percent of Pakistanis ate meals three times a day. About 37 percent had two meals, 5 percent had one meal and 5 percent had meals more than thrice in a day[2]. When it came to breakfast, the products usually consumed were paratha[3], bread, tea[4], etc. (Table I). The breakfast products consumed varied with the socio-economic group (please see Exhibit 2 for the socio-economic classication (SEC)). Labor class living away from home

DOI 10.1108/20450621211295587

VOL. 2 NO. 8 2012, pp. 1-13, Q Emerald Group Publishing Limited, ISSN 2045-0621

EMERALD EMERGING MARKETS CASE STUDIES

PAGE 1

Table I Breakfast items


2006 (%) Paratha Bread Tea Rusk Roti with curry Nothing Others 45 10 11 34 2008 (%) 41 11 13 33 1 2009 (%) 49 10 9 7 18 2

Note: 30 years of polling on eating habits of Pakistanis 1980-2010, a Gallup Pakistan report Source: Gallup and Gillani, 30 years of polling data on eating habits of Pakistanis

relied on the road-side dhabas[5] for their meals. The regular breakfast menu of lower class laborers usually involved paratha and tea (please refer to Table II which summarizes the breakfast menu consumed on daily basis by various SEC; Tables III and IV for other food preferences). The breakfast menu for the traditional Pakistanis consisted of rich and oily foods preferably the halwa puri. It had two separate dishes, one of halwa (a sweet made from semolina) and the other aloo cholay (a spicy chick pea and potato curry) eaten with

Table II Class-wise breakfast consumption


Breakfast items Tea Roti/bread/paratha Egg Cereal (cornakes, porridge, etc.) Cheese Frozen food (Nuggets, croquets, patties) Class-wise consumption All classesa All classes SEC A and B and (C not on regular basis) SEC A (B and C not on regular basis) SEC A (B and C not on regular basis) SEC A and B

Note: aIndicated by a U&A study conducted and according to Gallups 30 year of eating habits polling data: 90 percent consumers consume tea during breakfast

Table III Average meat consumption in a household per month


Chicken (kg) All Pakistan Punjab Sindh Khyber Pakhtoonkhwa Baluchistan 4 4 4 7 3 Beef (kg) 4 3 4 9 3 Mutton (kg) 3 3 3 6 7

Source: Gallup and Gilani, 30 years of polling data on eating habits of Pakistanis

Table IV Light and heavy meal preferences


2003 (%) Heavy lunch Heavy dinner Both meals heavy Both meals light No response 25 16 32 26 1 2006 (%) 19 23 34 24 2008 (%) 18 19 18 44 1

Source: Gallup and Gilani, 30 years of polling data on eating habits of Pakistanis

PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012

puri a small round deep fried at bread. The last course of the breakfast was usually chai[6]. This was usually accompanied by lassi[7] and depending on the drinkers taste, could be either salty or sweet. The sweet lassi option was often topped with malai[8]. This type of breakfast was usually consumed on weekends by all classes (upper-lower classes) (refer to Exhibit 3, Figure E1(a) and (b) for the weekend preference for breakfast). Per person cost for the entire menu (which consisted of puri, halwa and curry) ranged from Rs 20 to 40 depending on the location[9] (Exhibit 4). The type of breakfast consumed was impacted by:
B

The increased number of females entering the workforce had led to the increased consumption of ready to cook meals, ready to eat meals and frozen foods in the urban areas. The working and the non-working female could be classied based on the income group and life style as shown in Figure 1. Increased health consciousness due to media proliferation[10] and the increased number of gyms and health clubs in both posh and regular localities was an indication that health consciousness was rising. The food preferences depended on geographical location also. People living in the Punjab province (Northern region) were famous for their excessive love for food. They were very forthcoming when it came to trying out new products. They usually preferred milder taste in food. People in Sindh province (Southern region) preferred spicy food. In the urban areas there was an increasing trend of nuclear family system because of rural-urban migration, increasing utilities cost and media exposure (increased individualistic values among the young people as opposed to collectivistic values). The business community and numerous other households specically in the urban areas slept late at night and woke up late or in some cases just a few minutes before they had to leave for work.

On weekdays the working middle-class with kids preferred eating breakfast at home. The breakfast generally comprised of eggs, home-made roti (bread) and curry. In the dual income families there was a rising trend towards cereal, cheese and other ready to eat/ready to cook breakfast items. Breakfast was usually a rush time for these families as the kids got ready for school and mothers prepared lunch boxes for kids and husband. The morning hours from 7:00 a.m. to 8:30 a.m. were the peak trafc hours and one could see lots of hustle and bustle on the streets as the schools vans picked up kids, fathers drove kids to school (one could notice a typical middle-class family of three-four kids in school uniform driven by their father on a motor bike during these early morning rush hours) and ofce going people rushed to their work. Some of the SEC A class working men and women got their quick weekday breakfast solutions Figure 1

SEC A and B

Working

Non-Working

Not an active social life; prefers to stay at home after work.

Active social life; prefers eating out (frequency would vary with income class).

Not an active social life; prefers to stay at home. Prefers homemade food

Active social life; preferseating out (frequency would vary with income class).

VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3

from outlets Dunkin Donuts or Espresso. The prime reason behind the choice of Dunkin Donuts was the availability of Dunkin Donuts outlets in the SEC A areas. Each upper class area had at least one Dunkin outlet. The breakfast solutions usually included products like sandwiches, wraps and rolls. A housewife belonging to the upper echelon of the Pakistani society either enjoyed breakfast at home prepared by her chef or had breakfast with friends at a fancy after dropping her kids to school. These formal or informal eating outlets restaurant or cafe visited by the upper strata of the society initially offered only continental breakfast but some of these outlets had recently included the traditional breakfast menu as well. The housewives breakfast order ranged from high-calorie breakfast like shakes and wafes to low-calorie brown bread sandwiches depending on the health consciousness of these females.

Competition
Acknowledging the trend of having traditional tea paratha or halwa puri for breakfast, the industry was dominated by the presence of local roadside dhabas and hotels that offered the serving. Not only was the serving cheap but it also satised ones hunger. Most of these dhabas were run by people of the nearby locality at a subsistence level. Bakeries were yet another key player in the industry. The variety in terms of baked food items that they offered along with hygiene and economical prices[11] made them a viable option for the consumer. These bakeries ranged from small corner stores to large spread out businesses, e.g. Gourmet Bakers in Punjab. The emergence of cafes and restaurants (both local and foreign) in the last decade had made the food industry very competitive. For some, offering the breakfast menu, worked as a differentiation point. For others it was simply capitalizing on the untapped potential to make some extra money. These restaurants and cafes not only brought the awareness among people about the continental food and but also developed the taste palette of the consumers. Few of the restaurants/cafes actually served breakfast on daily basis while others offered brunch on Sundays. Knowing that the market at present had a small following of people having breakfast outside, the restaurants and cafes charged premium prices to maximize prots (please refer to Exhibits 5 and 6 for the competitive offering details). These restaurants offered both traditional as well as Western cuisine to cater to a larger audience of food lovers. Some of the famous brands were. Irelands Butlers Chocolate Cafe It was opened in Karachi on December 2009, on main Zamzama Boulevard (Posh locality of Karachi). It offered breakfast, mock tails, smoothies, shakes, wafes, trufes, ice cream, sorbets and chocolates. It had recently opened its outlet at the domestic and international terminal of Quaid-E-Azam International Airport. The price range for breakfast was Rs 300 and above. It offered valet parking for the ease of its customers. Espresso Espresso was launched in 2004. It operated in Karachi and Lahore. It offered a menu packed with mouth watering appetizers, a selection of sandwiches, wraps, pastas, paninis and divine desserts. A sizeable range of teas, smoothies, hot and cold beverages and an array of coffees all created from the nest imported and local ingredients were available at . The breakfast menu ranged from omelets, burritos, pan cakes, croissants, kids the cafe breakfast with price starting from Rs 250 (with the exception of baked beans; please refer to Exhibit 6 for details). It also offered delivery services in certain areas of Karachi and Lahore; these included the upper-class residential areas and ofce localities. The delivery timings were from 8:00 a.m. to 2:00 a.m. on weekends and 8:00 a.m. to 1:00 a.m. on weekdays (www.espresso.com.pk/menu.html). It offered privilege cards as well. It had four outlets in Karachi and one in Lahore. Dunkin Donuts Dunkin Donuts started its operation in Pakistan in 2000. It had nine outlets in Karachi, ve in Lahore, three in Islamabad and one in Peshawar. Its operations were controlled in Karachi by IFL and in Lahore and Islamabad by Phoenix Food (Pvt) Limited (www.espresso.com.pk/

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menu.html). It offered breakfast from 7:30 a.m. to 10:30 a.m. The minimum price in the breakfast menu was Rs 100. It offered various breakfast items such as sandwiches, pizza, croissants and coffee along with various combo deals. Others 9, cafe 76, Gloria Jeans, Other popular players in informal eating out category included cafe Coffee, Tea and Company (CTC) and Roasters. They had breakfast menu ranging from croissants, pizza, sandwiches and coffee (please refer to Exhibits 5 and 6 for details about price and breakfast offerings). These restaurants had an up market image. The other more formal eating out breakfast players included the four and ve star hotels such as Sheraton, Avari and Marriott. The breakfast at these fancy restaurants started at Rs 900. Restaurants like Dominos and Pizza Hutt which were very popular in Pakistan did not offer any breakfast option.

McDonalds customer prole


McDonalds catered to the urban population of Pakistan. Although McDonalds penetration was mainly driven by the income group AB. SEC C was also amongst the target market. The top three segments of McDonalds customer categorization: 1. the teens (15-25 years); 2. young adults (20-34 years); and 3. families with kids (FWKS) (30-49 years old, married with kids). McDonalds developed its loyalty measurements based on the research conducted as shown in Figure 2. About 30 percent of the McDonalds users were true loyals, 15 percent attitudinal loyals, 16 percent behavioral loyals and 39 percent competitive loyals (Source: interview with the marketing manger; base: all McDonalds users; please also refer to Exhibits 7-9 for the McDonalds market in Pakistan). Jamil knew that there was not a great deal of investment required for this launch as the fryers and other equipment were in place. Only for some new items international suppliers had to be identied and once that work is done the raw materials[12] would be at the facility within a lead time of 45-50 days (please refer to Exhibits 10 and 11 for the proposed breakfast).

Figure 2
McDonalds most often Behavior Loyal: People using McDonalds most often but prefer another Quick Service Restaurant (QSR) Competitive Loyal: People using another QSR most often and prefer another one too. True Loyal: People using McDonalds most often and whose favorite QSR restaurant is McDonalds too. Attitude Loyal: people using another QSR most often and whose favorite is McDonalds. McDonalds preferred (Think Positive)

Source: Interview with the Marketing Manger

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McDonalds in India
McDonalds launched its breakfast menu in 2009. The purpose of launching the menu was to capture the market which had no real branded option to compete with. According to an expert analysis 60 percent of the young Indians in Mumbai and other metropolis had at least one breakfast outside the house in a week be it a roadside vendor, the ofce or the station. McDonalds breakfast was aimed to serve as the next best substitute to idlis, dosas and vada pavs. Keeping the masses in mind, they proposed a menu that was not only affordable but had a traditional essence to it. The communication for the menu highlighted the importance of convenience and on-the-go breakfast option. The campaign was launched after six months of initial test marketing in key cities of India followed by a complete promotion drive throughout the country. Please refer to Table V for the items served on the breakfast menu along with their prices (in Indian rupees) (www.mcdonaldsindia.com/ breakfast-menu.html (accessed May 11, 2011)).

McDonalds in Malaysia
In contrast to both Pakistan and India, Malaysia was a metropolitan country. McDonalds realized the potential in the economy and decided to invest in the breakfast sector. The rst mover advantage worked in their favor and they were able to seize a sizeable share in the market. They used a two pronged communication approach targeting both adults and families simultaneously. They offered on-the-go weekday meals for the working class whereas on the other hand served weekend breakfast baskets to FWKS especially aged between ve to 15 years (Please refer to Tables VI and VII for the Malaysian weekday Table V Indian breakfast menu
Item Idli McMufn Steamed vegetarian McMufn Paneer and corn McMufn Sausage McMufn Sausage McMufn with egg Steamed corn Crisp hash brown Hot cakes with maple syrup and butter Big breakfast platters Price (Indian rupees) 35 35 40 45 55 20 20 55 99

Source: www.mcdonaldsindia.com/breakfast-menu.html (accessed May 11, 2011)

Table VI Malaysian breakfast menu


Week day menu deals Price (RM)

Sausage McMufn with egg coffee/tea 4.5 Sausage McMufn coffee/tea 4.00 Egg McMufn with chicken roll coffee/tea 4.5 Two pieces hotcakes coffee/tea 4.5 Chicken mufn coffee/tea 4.5 Source: www.mcdonalds.com.my/ourfood/menu_items.asp (accessed May 11, 2011)

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Table VII Malaysian weekend breakfast menu


Weekend menu deals (family breakfast box) Big breakfast: English mufn (with scrambled eggs and sausage or grape jam), chicken sausages, hash browns, hot cakes, coffee One big breakfast with hash browns RM 24.90 One sausage McMufn with egg/one egg McMufn with chicken roll Two pieces hot cakes Two pieces hash browns Three coffee/tea (a) One big breakfast with one piece hash RM 19.90 browns (b) One sausage McMufn with egg (c) Two pieces hot cakes (d) One piece hash brown (e) Two coffee/tea Source: www.mcdonalds.com.my/ourfood.asp (accessed May 11, 2011)

and weekend breakfast menu) (www.mcdonalds.com.my/ourfood/menu_items.asp (accessed May 11, 2011)). Recent times had seen the emergence of local cafes and international food chains giving stiff competition to its market dominance. The food giant, however, had maintained its share and was expected to grow by more than 20 percent at the end of 2011.

Moving forward
While Jamil reviewed the success stories of various markets and prepared his presentation he thought about the points that would help him convince his top management about this difcult yet exciting launch. If the launch were to happen, what would be the roll-out plan like? Should it be restricted to certain cities/outlets or should it be launched nationally? What would be the menu? What is the right time? Somehow, he knew that that the presentation would be an uphill task.

Notes
1. There were certain traditional on the go products like bun Kebab, kebab rolls available. 2. 30 years of polling on eating habits of Pakistanis 1980-2010, a Gallup Pakistan Report. 3. Traditional at bread. 4. About 94 percent of the people consumed tea, while 2 percent consumed coffee (Gallup and Gilani/National Survey 2009). 5. Small road side restaurants offering food at cheap rates. 6. Chai is the Urdu word for tea. 7. Yogurt-based milk shake. 8. Cream produced from sifting unprocessed milk. 9. The posh locations charged higher prices for the traditional menu as compared to the middle-class localities.

Keywords: Breakfast, Launch, Glocal marketing, Food industry, New products, Marketing

10. Media/proliferation had an important role to play in educating the consumers about healthy eating and balanced diet. Cooking channels had emerged and there were numerous cooking programs that educated the consumers about the benet of healthy diet. 11. The price of food item at bakeries: sandwiches (Rs 25-60, depending upon the type), patties (Rs 6-15), Rolls (Rs 15-50), pizza slice (Rs 50-90), small pizza (Rs 15-30). 12. The raw materials were procured from the international market.

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Exhibit 1

Table EI Details of McDonalds outlets


City Lahore Location Railways Kiosk & MDS Jail Road Fortress Stadium Park Lane Tower Main Gulberg Ali Towers Allama Iqbal Town Model Town Defence-I Defence-III Air Port Dolmen Mall Hyderi Stadium Road Dolmen Mall Tariq Road Lakson Square Najeeb Center Park Towers Corniche Autobhan Sityana Road Clover Plaza Jinnah Park McDonalds F-9 Park 24 hours dine-in and take away Birthday parties 24 hours drive-thru

Karachi

Hyderabad Faisalabad Sialkot Rawalpinidi Islamabad

U U U U U U U U U U U U U U U U U U U U U

U U

U U U U U U

Source: Interview with the marketing manager

Exhibit 2

Table EII Socio-economic classication


Education of chief earner Up to Up to 5-9 secondary classes level Intermediate E E D D C2 C2 C1 C1 C1 B A E E D D C2 C2 B B B A A E E D D C2 C2 B B B A A

Occupation of chief earner Unskilled worker Petty traders Skilled worker Non-executive staff Supervisor level Small shopkeeper/businessman Lower/middle executive ofcer Self-employed/employed professionals Medium businessman Senior executive/ofcer Large businessman/factory owner

Illiterate (can read/write) E E D D D D C1 C1 C1 B A

Less than class 5 E E D D D D C1 C1 C1 B A

Graduate Post-graduate D D D D C1 C1 B B B A A D D C2 C2 C1 C1 B B B A A

Source: www.docstoc.com/docs/69777869/Annexes

PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012

Exhibit 3
30 years of polling data on food habits of Pakistan conducted by Gallup and Gilani (National Survey 2009). Sample size comprised of 1,000-2,500 men and women aged 18 conducted in urban and rural Pakistan Figure E1. Figure E1 Eating out preferences

ii(a) Eating out in a restaurant at least once per month

Yes 10%

No 90%

Special 23%

ii(b) Consuming special breakfasts on weekends


Same as another day 77%

Source: Gallup and Gilani, 30 years of polling data on eating habits of Pakistanis

Exhibit 4

Table EIII Price list of traditional breakfast


Item Chai Doodhpati (special tea) Paratha Anda (fried egg) Puri Halwa Channa/aalo Price (Rs) 15 20 10 15 12 20 per plate 30 per plate

VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9

Exhibit 5
Table EIV Competition
Name Al Bustan Asia Live Butlers BBQ Tonight 9 Cafe 76 Cafe Blur Ginger Cafe Chatterbox Cafe o Cafe Ciao Cinnamon Lounge The Diner Dunkin Donuts Espresso Fanoos Gunsmoke Jharoka Latte Lounge Lal Ojla Marcopolo Nadia Necos Okra Pompei Rangoli pe Factory The Cre T2F cafe Cinnabon Bakery CTC Jammin Java Hotel One Kims Lahore Gate Malees Maheks Masooms Namak Mandi Rooftop Salt n Pepper The Spot Chaye Khaana Espresso Lounge Jias Deli KC Grill Mocca Nirvana Gene Restaurant Restaurant Cafe Restaurant Cafe Cafe Cafe Cafe Cafe Cafe Cafe Restaurant Cafe Cafe Restaurant Cafe Restaurant Cafe Restaurant Restaurant Cafe Cafe Restaurant Restaurant Restaurant Cafe Cafe Cafe Cafe Cafe Restaurant Restaurant Restaurant Cafe Restaurant Cafe Restaurant Restaurant Restaurant Restaurant Restaurant Cafe Restaurant Restaurant Cafe Cafe City KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI KHI LHR LHR LHR LHR LHR LHR LHR LHR LHR LHR LHR LHR LHR ISL ISL ISL ISL ISL ISL Location Sheraton Avari Zamzama Old Clifton Zamzama Old Clifton Zamzama Zamzama Old Clifton Zamzama Avari DHA Sheraton Zamzama Regent DHA Shahrae Faisal PC Marriot DHA Zamzama Shapes Arena DHA DHA Gulberg/DHA Gulberg DHA Gulberg Avari Holiday Inn Gulberg Marvel Hotel DHA Hotel One Maisonette Gulberg Hotel Park F-6 Markaz F-7 Markaz Blue Area Bhitai Road Kohsar Mart G-6 Markaz Cuisine Western Western Western Cesi Western Western Western Western Western Western Western Western Western Western Western Western Both Western Desi Both Western Western Western Western Desi Western Both Western Western Western Both Western Both Both Western Both Both Both Both Both Both Both Average price (Rs) . 900 . 1,100 . 300 . 650 . 400 . 400 . 400 . 400 . 400 . 400 . 400 . 500 . 200 . 300 . 500 . 500 . 850 . 600 . 900 . 900 . 700 . 400 . 300 . 400 . 700 . 600 . 300 . 400 . 400 . 300 . 400 . 650 . 700 Breakfast (daily) U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U Brunch (Sunday)

Sources: www.karachisnob.com/best_breakfast_places_in_karachi.htm; www.fcpakistan.com/; personal visits

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Exhibit 6
la carte breakfast offerings Table EV A
Menu Oatmeal porridge Chicken fagita omelet Big steak omelet Steak and eggs Breakfast yougurt Aussie omelet Egg white omelet Cheese omelet Mushroom/herb omelet Tomota/cheese and mushroom omelet Cheese, pepperoni and onion omelet Pakistani omelet Spanish omelet Scrambled eggs Poached/classic fried/boiled eggs Kids breakfast Bagel with cream cheese Breakfast burrito Chicken frankfurters Baked beans Pancakes with maple syrup French toast with maple syrup Wafes with ice cream and maple syrup Croissant with cream cheese, strawberry preserve/orange marmalade Egg and cheese sandwich Butter milk pancakes Banana pancakes Blueberry pancakes Chocolate hazelnut pancakes Egg cheese roll Plain roll Espresso Gloria Jeans 195 365 375 385 155 315 315 350 350 375 375 350 375 325 275 315 295 475 215 65 265 265 315 275 345 275 265 395 300 325 325 300 300 275 399 239 229 399 325 329 325 Dunkin Donuts Roasters Cafe 9 Cafe 76 Cinnabon Necos

225 265

285

225 215 275 265 295 275 100 225 295 295 265 265

230 300

269 329 319

250 230

Exhibit 7
Figure E2 SEC urban Pakistan

SEC A1 A2 B C D E1 E2

SEC % 4% 5% 12% 21% 22% 15% 20%

Population in # 11,795 1,361,818 3,257,682 5,660,889 5,901,210 4,058,75 1 5,367,164

Source: Interview with the marketing manager (Research conducted for the company)

VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 11

Exhibit 8
Figure E3 Population distribution by SECs McDonalds market

Source: Interview with the marketing manager (based on the Pakistan Population Census Data 1998-1999; Gallup Pakistan 2004-2005)

Exhibit 9
Table EVI McDonalds age-wise and SEC-wise penetration
Year 2010 (%) (Pakistan) McDonalds penetration (age wise) (base: all interviewed) Teens Young adults 30 singles FWKS FWOKS McDonalds penetration (SEC wise) (base: all interviewed) SEC AB SEC C1 SEC C2 Prole of McDonalds (age wise) (McDonalds users interviewed) Teens Young adults 30 singles FWKS FWOKS Prole of McDonalds (SEC wise) (McDonalds users interviewed) SEC AB SEC C1 SEC C2 Prole of McDonalds visit (age wise) (McDonalds Users interviewed) Teens Young adults 30 singles FWKS FWOKS Prole of McDonalds visit (SEC wise) (McDonalds users interviewed) SEC AB SEC C1 SEC C2

45 57 39 44 39 49 47 43 28 36 7 50 22 48 46 37 26 36 5 49 21 44 43 30

Notes: Disclaimer: gures have been disguised in order to maintain companys privacy; sample size not disclosed by the company due to condentiality purpose

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Exhibit 10
Table EVII Proposed breakfast menu
Product Egg McMufn Sausage with egg Sausage McMufn Big break fast Hash brown Hot cakes Coffee cappuccino Hot tea Price (Rs) 140 150 130 375 50 225 100 50

Exhibit 11
Table EVIII
Big breakfast is one option which has Mufn Chicken sausage Hash brown Scrambled eggs Jam portion 1 1 1 2 1

Corresponding author
Farah Naz Baig can be contacted at: fbaig@iba.edu.pk

VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 13

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