Breakfast Launch Dilemma

McDonalds breakfast launch dilemma

Farah Naz Baig

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, confirming 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 first 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).

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 classification (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 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 1

Farah Naz Baig is Lecturer

in Marketing at the Institute

of Business Administration,

Karachi, Pakistan.

The author would like to thankMarketing Issues In PakistanClass (Fall, 2011), especiallyNadia Naeem, Aatira Mushtaq,Ayesha Waheed, HumayunBaber and Fizzah Shahid whohelped me in this case.

Disclaimer. This case is writtensolely for educational purposesand is not intended to representsuccessful or unsuccessfulmanagerial decision making.The author may have disguisednames; financial and otherrecognizable information toprotect confidentiality.

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 I Breakfast items

2006 (%) 2008 (%) 2009 (%)

Paratha 45 41 49Bread 10 11 10Tea 11 13 9Rusk 7Roti with curry 34 33 18Nothing 2Others 1

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

Table II Class-wise breakfast consumption

Breakfast items Class-wise consumption

Tea All classesa

Roti/bread/paratha All classesEgg SEC A and B and (C not on regular basis)Cereal (cornflakes, porridge, etc.) SEC A (B and C not on regular basis)Cheese SEC A (B and C not on regular basis)Frozen food (Nuggets, croquets, patties) SEC A and B

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

Table III Average meat consumption in a household per month

Chicken (kg) Beef (kg) Mutton (kg)

All Pakistan 4 4 3Punjab 4 3 3Sindh 4 4 3Khyber Pakhtoonkhwa 7 9 6Baluchistan 3 3 7

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

Table IV Light and heavy meal preferences

2003 (%) 2006 (%) 2008 (%)

Heavy lunch 25 19 18Heavy dinner 16 23 19Both meals heavy 32 34 18Both meals light 26 24 44No response 1 1


PAGE 2 jEMERALD EMERGING MARKETS CASE STUDIESj VOL. 2 NO. 8 2012

puri a small round deep fried flat 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 femalecould be classified based on the incomegroup and

life style as shown in Figure 1.

B 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.

B 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.

B 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).

B The business community and numerous other households specifically 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 traffic 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 office 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

WorkingNon-Working

Not an activesocial life;prefers to stayat home afterwork.

Active social life;prefers eating out(frequency wouldvary with incomeclass).

Not an activesocial life; prefersto stay at home.Prefershomemade food

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

VOL. 2 NO. 8 2012 jEMERALD EMERGING MARKETS CASE STUDIESj 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

restaurant or cafe after dropping her kids to school. These formal or informal eating outlets

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 waffles 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 satisfied 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 profits (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, waffles, truffles, 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 finest imported and local ingredients were available at

the cafe. The breakfast menu ranged from omelets, burritos, pan cakes, croissants, kids

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 office 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, five 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/


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

Other popular players in informal eating out category included cafe 9, cafe 76, Gloria Jeans,

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 five 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 profile

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 identified 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)

True Loyal: People using McDonalds most often and whose favorite QSR restaurant is McDonalds too.

Competitive Loyal: People using another QSR most often and prefer another one too.

Attitude Loyal: people using another QSR most often and whose favorite is McDonalds.

McDonalds preferred

(Think Positive) Source: Interview with the Marketing Manger


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 office 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 first

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 five to 15 years (Please refer to Tables VI and VII for the Malaysian weekday

Table V Indian breakfast menu

ItemPrice (Indian

rupees)

Idli McMuffin 35Steamed vegetarian McMuffin 35Paneer and corn McMuffin 40Sausage McMuffin 45Sausage McMuffin with egg 55Steamed corn 20Crisp hash brown 20Hot cakes with maple syrup andbutter 55Big breakfast platters 99

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

Table VI Malaysian breakfast menu

Week day menu deals Price (RM)

Sausage McMuffinwith egg coffee/tea 4.5Sausage McMuffin coffee/tea 4.00Egg McMuffin withchicken roll coffee/tea 4.5Two pieces hotcakes coffee/tea 4.5Chicken muffin coffee/tea 4.5

Source: www.mcdonalds.com.my/ourfood/menu_items.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

difficult 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 flat 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.

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 benefit 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.

Keywords:

Breakfast,

Launch,

Glocal marketing,

Food industry,

New products,

Marketing

Table VII Malaysian weekend breakfast menu

Weekend menu deals (family breakfast box)Big breakfast: English muffin (with scrambled eggs and sausage or grape jam), chicken sausages,hash browns, hot cakes, coffeeOne big breakfast with hash browns RM 24.90One sausage McMuffin with egg/one eggMcMuffin with chicken rollTwo pieces hot cakesTwo pieces hash brownsThree coffee/tea(a) One big breakfast with one piece hash

brownsRM 19.90

(b) One sausage McMuffin 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)


Exhibit 1

Exhibit 2

Table EI Details of McDonalds outlets

City Location 24 hours dine-in and take away Birthday parties 24 hours drive-thru

Lahore Railways Kiosk & MDSJail Road UFortress Stadium UPark Lane Tower UMain Gulberg U UAli Towers UAllama Iqbal Town UModel Town UDefence-I UDefence-III U U

Karachi Air Port U U UDolmen Mall Hyderi UStadium Road UDolmen Mall Tariq Road ULakson Square UNajeeb Center U UPark Towers UCorniche U U

Hyderabad Autobhan U UFaisalabad Sityana Road U USialkot Clover Plaza URawalpinidi Jinnah Park UIslamabad McDonalds F-9 Park U U

Source: Interview with the marketing manager

Table EII Socio-economic classification

Education of chief earner

Occupation of chief earnerIlliterate (canread/write)

Less thanclass 5

Up to 5-9classes

Up tosecondary

level Intermediate Graduate Post-graduate

Unskilled worker E E E E E D DPetty traders E E E E E D DSkilled worker D D D D D D C2Non-executive staff D D D D D D C2Supervisor level D D C2 C2 C2 C1 C1Smallshopkeeper/businessman

D D C2 C2 C2 C1 C1

Lower/middle executiveofficer

C1 C1 C1 B B B B

Self-employed/employedprofessionals

C1 C1 C1 B B B B

Medium businessman C1 C1 C1 B B B BSenior executive/officer B B B A A A ALargebusinessman/factoryowner

A A A A A A A

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


Exhibit 3

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

Exhibit 4

Figure E1 Eating out preferences

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

ii(b) Consuming special breakfasts on weekends

Yes10%

No90%

Special23%

Same as anotherday77%


Table EIII Price list of traditional breakfast

Item Price (Rs)

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


Exhibit 5

Table EIV Competition

Name Gene City Location Cuisine Average price (Rs) Breakfast (daily) Brunch (Sunday)

Al Bustan Restaurant KHI Sheraton Western .900 UAsia Live Restaurant KHI Avari Western .1,100 UButlers Cafe KHI Zamzama Western .300 UBBQ Tonight Restaurant KHI Old Clifton Cesi .650 UCafe 9 Cafe KHI Zamzama Western .400 UCafe 76 Cafe KHI Old Clifton Western .400Cafe Blur Ginger Cafe KHI Zamzama Western .400 UCafe Chatterbox Cafe KHI Zamzama Western .400 UCafeflo Cafe KHI Old Clifton Western .400 UCiao Cafe KHI Zamzama Western .400 UCinnamon Lounge Cafe KHI Avari Western .400 UThe Diner Restaurant KHI DHA Western .500 UDunkin Donuts Cafe KHI Western .200 UEspresso Cafe KHI Western .300 UFanoos Restaurant KHI Sheraton Western .500 UGunsmoke Cafe KHI Zamzama Western .500 UJharoka Restaurant KHI Regent Both .850 ULatte Lounge Cafe KHI DHA Western ULal Ojla Restaurant KHI Shahrae Faisal Desi .600 UMarcopolo Restaurant KHI PC Both .900 UNadia Cafe KHI Marriot Western .900 UNecos Cafe KHI DHA Western UOkra Restaurant KHI Zamzama Western UPompei Restaurant KHI Shapes Western URangoli Restaurant KHI Arena Desi .700 UThe Crepe Factory Cafe KHI DHA Western U UT2F cafe Cafe KHI DHA Both UCinnabon Bakery Cafe LHR Gulberg/DHA Western UCTC Cafe LHR Gulberg Western .400 UJammin Java Cafe LHR DHA Western .300 UHotel One Restaurant LHR Gulberg Both .400 UKims Restaurant LHR Avari Western .700 U ULahore Gate Restaurant LHR Holiday Inn Both .600 UMalees Cafe LHR Gulberg Both .300 UMaheks Restaurant LHR Marvel Hotel .400 UMasooms Cafe LHR DHA Western UNamak Mandi Restaurant LHR Hotel One .400 URooftop Restaurant LHR Maisonette .300 USalt n Pepper Restaurant LHR Gulberg Both .400 UThe Spot Restaurant LHR Hotel Park .650 UChaye Khaana Restaurant ISL F-6 Markaz Both UEspresso Lounge Cafe ISL F-7 Markaz Both UJias Deli Restaurant ISL Blue Area Both UKC Grill Restaurant ISL Bhitai Road Both .700 U UMocca Cafe ISL Kohsar Mart Both UNirvana Cafe ISL G-6 Markaz Both U

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


Exhibit 6

Exhibit 7

Table EV A la carte breakfast offerings

Menu EspressoGloriaJeans

DunkinDonuts Roasters

Cafe9

Cafe76 Cinnabon Necos

Oatmeal porridge 195Chicken fagita omelet 365 325Big steak omelet 375Steak and eggs 385Breakfast yougurt 155Aussie omelet 315Egg white omelet 315Cheese omelet 350 345 325Mushroom/herb omelet 350 329Tomota/cheese and mushroom omelet 375 275 395Cheese, pepperoni and onion omelet 375 325Pakistani omelet 350 265 300 325 399Spanish omelet 375 300Scrambled eggs 325 300 239Poached/classic fried/boiled eggs 275 225 285 275 229Kids breakfast 315Bagel with cream cheese 295 265 399Breakfast burrito 475Chicken frankfurters 215Baked beans 65Pancakes with maple syrup 265 225 230 269French toast with maple syrup 265 215 265 300 329Waffles with ice cream and maple syrup 315 275 295 319Croissant with cream cheese, strawberrypreserve/orange marmalade

275 275

Egg and cheese sandwich 100Butter milk pancakes 225 265Banana pancakes 265Blueberry pancakes 295Chocolate hazelnut pancakes 295Egg cheese roll 250Plain roll 230

Figure E2 SEC urban Pakistan

SEC SEC % Population in #

A1 4% 11,795

A2 5% 1,361,818

B 12% 3,257,682

C 21% 5,660,889

D 22% 5,901,210

E1 15% 4,058,75 1

E2 20% 5,367,164

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


Exhibit 8

Exhibit 9

Figure E3 Population distribution by SECs McDonalds market

Source: Interview with the marketing manager (based on the Pakistan Population Census Data1998-1999; Gallup Pakistan 2004-2005)

Table EVI McDonalds age-wise and SEC-wise penetration

Year 2010 (%) (Pakistan)

McDonalds penetration (age wise) (base: all interviewed)Teens 45Young adults 5730 singles 39FWKS 44FWOKS 39McDonalds penetration (SEC wise) (base: all interviewed)SEC AB 49SEC C1 47SEC C2 43Profile of McDonalds (age wise) (McDonalds users interviewed)Teens 28Young adults 3630 singles 7FWKS 50FWOKS 22Profile of McDonalds (SEC wise) (McDonalds users interviewed)SEC AB 48SEC C1 46SEC C2 37Profile of McDonalds visit (age wise) (McDonalds Users interviewed)Teens 26Young adults 3630 singles 5FWKS 49FWOKS 21Profile of McDonalds visit (SEC wise) (McDonalds users interviewed)SEC AB 44SEC C1 43SEC C2 30

Notes: Disclaimer: figures have been disguised in order to maintain companys privacy; sample sizenot disclosed by the company due to confidentiality purpose


Exhibit 10

Exhibit 11

Corresponding author

Farah Naz Baig can be contacted at: [email protected]

Table EVII Proposed breakfast menu

Product Price (Rs)

Egg McMuffin 140Sausage with egg 150Sausage McMuffin 130Big break fast 375Hash brown 50Hot cakes 225Coffee cappuccino 100Hot tea 50

Table EVIII

Big breakfast is one option which has

Muffin 1Chicken sausage 1Hash brown 1Scrambled eggs 2Jam portion 1


Breakfast Launch Dilemma

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