Emerald Emerging Markets Case Studies

McDonald's breakfast launch dilemma

Farah Naz Baig
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 McDonald’s breakfast launch dilemma
Farah Naz Baig
Farah Naz Baig is Lecturer
in Marketing at the Institute
of Business Administration,
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Karachi, Pakistan.
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; financial and other
recognizable information to
protect confidentiality.
DOI 10.1108/20450621211295587
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 McDonald’s breakfast menu. It was Jamil’s 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
McDonald’s, 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. McDonald’s 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 McDonald’s when its first outlet
opened in September 1998 in Lahore. The Karachi outlet opened a week after the Lahore’s
opening. In 2011, there were 23 outlets operating in Pakistan (for details about the
McDonald’s 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 Pakistan’s 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
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
 Table I Breakfast items
2006 (%) 2008 (%) 2009 (%)

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

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
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Table II Class-wise breakfast consumption

Breakfast items Class-wise consumption

Tea All classesa

Roti/bread/paratha All classes
Egg 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 Gallup’s 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) Beef (kg) Mutton (kg)

All Pakistan 4 4 3
Punjab 4 3 3
Sindh 4 4 3
Khyber Pakhtoonkhwa 7 9 6
Baluchistan 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 18
Heavy dinner 16 23 19
Both meals heavy 32 34 18
Both meals light 26 24 44
No response 1 1

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

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PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES 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 female could be classified based on the income group 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.
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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

Working
Non-Working

Active social life; Active social life;

Not an active Not an active
prefers eating out preferseating out
social life; social life; prefers
(frequency would (frequency would vary
prefers to stay to stay at home.
vary with income with income class).
at home after Prefers
class).
work. homemade food

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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
restaurant or café 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.
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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.

Ireland’s Butlers Chocolate Café

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 café. 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/

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PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 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 café 9, café 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.

McDonald’s customer profile

McDonald’s catered to the urban population of Pakistan. Although McDonald’s penetration
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was mainly driven by the income group AB. SEC C was also amongst the target market.
The top three segments of McDonald’s 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).
McDonald’s developed its loyalty measurements based on the research conducted as
shown in Figure 2.
About 30 percent of the McDonald’s 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
McDonald’s 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

McDonald’s most often

Behavior Loyal: People True Loyal: People using

using McDonald’s most often McDonald’s most often and
but prefer another Quick whose favorite QSR
Service Restaurant (QSR) restaurant is McDonald’s
too.

Competitive Loyal: People Attitude Loyal: people

using another QSR most using another QSR most
often and prefer another one often and whose favorite is
too. McDonald’s.

McDonald’s preferred

(Think Positive)
Source: Interview with the Marketing Manger

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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5
 McDonald’s in India
McDonald’s 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.
McDonald’s 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)).

McDonald’s 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
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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

Price (Indian
Item rupees)

Idli McMuffin 35
Steamed vegetarian McMuffin 35
Paneer and corn McMuffin 40
Sausage McMuffin 45
Sausage McMuffin with egg 55
Steamed corn 20
Crisp hash brown 20
Hot cakes with maple syrup and
butter 55
‘‘Big 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 McMuffin
with egg þ coffee/tea 4.5
Sausage McMuffin
þ coffee/tea 4.00
Egg McMuffin with
chicken roll þ
coffee/tea 4.5
Two pieces hotcakes þ
coffee/tea 4.5
Chicken muffin þ
coffee/tea 4.5
Source: www.mcdonalds.com.my/ourfood/menu_items.asp (accessed May 11, 2011)

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PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 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, coffee
One big breakfast with hash browns RM 24.90
One sausage McMuffin with egg/one egg
McMuffin 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 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)

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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.
Keywords: 10. Media/proliferation had an important role to play in educating the consumers about healthy eating
Breakfast, and balanced diet. Cooking channels had emerged and there were numerous cooking programs
Launch, that educated the consumers about the benefit of healthy diet.
Glocal marketing,
Food industry, 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).
New products,
Marketing 12. The raw materials were procured from the international market.

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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7
 Exhibit 1

Table EI Details of McDonald’s outlets

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

Lahore Railways Kiosk & MDS

Jail Road U
Fortress Stadium U
Park Lane Tower U
Main Gulberg U U
Ali Towers U
Allama Iqbal Town U
Model Town U
Defence-I U
Defence-III U U
Karachi Air Port U U U
Dolmen Mall Hyderi U
Stadium Road U
Dolmen Mall Tariq Road U
Lakson Square U
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Najeeb Center U U
Park Towers U
Corniche U U
Hyderabad Autobhan U U
Faisalabad Sityana Road U U
Sialkot Clover Plaza U
Rawalpinidi Jinnah Park U
Islamabad McDonalds F-9 Park U U

Source: Interview with the marketing manager

Exhibit 2

Table EII Socio-economic classification

Education of chief earner
Up to
Illiterate (can Less than Up to 5-9 secondary
Occupation of chief earner read/write) class 5 classes level Intermediate Graduate Post-graduate

Unskilled worker E E E E E D D
Petty traders E E E E E D D
Skilled worker D D D D D D C2
Non-executive staff D D D D D D C2
Supervisor level D D C2 C2 C2 C1 C1
Small D D C2 C2 C2 C1 C1
shopkeeper/businessman
Lower/middle executive C1 C1 C1 B B B B
officer
Self-employed/employed C1 C1 C1 B B B B
professionals
Medium businessman C1 C1 C1 B B B B
Senior executive/officer B B B A A A A
Large A A A A A A A
businessman/factory
owner

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

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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 18þ
conducted in urban and rural Pakistan Figure E1.

Figure E1 Eating out preferences

Yes No
ii(a) Eating out in a restaurant at least once per month 10% 90%

Special
23%

ii(b) Consuming special breakfasts on weekends

Same as another
day
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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 Price (Rs)

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

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VOL. 2 NO. 8 2012 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9
 Exhibit 5

Table EIV Competition

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

Al Bustan Restaurant KHI Sheraton Western .900 U

Asia Live Restaurant KHI Avari Western .1,100 U
Butlers Cafe KHI Zamzama Western .300 U
BBQ Tonight Restaurant KHI Old Clifton Cesi .650 U
Café 9 Café KHI Zamzama Western .400 U
Café 76 Café KHI Old Clifton Western .400
Café Blur Ginger Café KHI Zamzama Western .400 U
Café Chatterbox Café KHI Zamzama Western .400 U
Caféflo Café KHI Old Clifton Western .400 U
Ciao Café KHI Zamzama Western .400 U
Cinnamon Lounge Café KHI Avari Western .400 U
The Diner Restaurant KHI DHA Western .500 U
Dunkin Donuts Café KHI – Western .200 U
Espresso Café KHI – Western .300 U
Fanoos Restaurant KHI Sheraton Western .500 U
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Gunsmoke Café KHI Zamzama Western .500 U

Jharoka Restaurant KHI Regent Both .850 U
Latte Lounge Café KHI DHA Western – U
Lal Ojla Restaurant KHI Shahrae Faisal Desi .600 U
Marcopolo Restaurant KHI PC Both .900 U
Nadia Café KHI Marriot Western .900 U
N’eco’s Café KHI DHA Western – U
Okra Restaurant KHI Zamzama Western – U
Pompei Restaurant KHI Shapes Western – U
Rangoli Restaurant KHI Arena Desi .700 U
The Crépe Factory Café KHI DHA Western – U U
T2F café Café KHI DHA Both – U
Cinnabon Bakery Café LHR Gulberg/DHA Western – U
CTC Café LHR Gulberg Western .400 U
Jammin Java Café LHR DHA Western .300 U
Hotel One Restaurant LHR Gulberg Both .400 U
Kim’s Restaurant LHR Avari Western .700 U U
Lahore Gate Restaurant LHR Holiday Inn Both .600 U
Malee’s Café LHR Gulberg Both .300 U
Mahek’s Restaurant LHR Marvel Hotel – .400 U
Masoom’s Café LHR DHA Western – U
Namak Mandi Restaurant LHR Hotel One – .400 U
Rooftop Restaurant LHR Maisonette – .300 U
Salt n Pepper Restaurant LHR Gulberg Both .400 U
The Spot Restaurant LHR Hotel Park – .650 U
Chaye Khaana Restaurant ISL F-6 Markaz Both – U
Espresso Lounge Café ISL F-7 Markaz Both – U
Jia’s Deli Restaurant ISL Blue Area Both – U
KC Grill Restaurant ISL Bhitai Road Both .700 U U
Mocca Café ISL Kohsar Mart Both – U
Nirvana Café ISL G-6 Markaz Both – U

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

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PAGE 10 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 Exhibit 6

Table EV Á la carte breakfast offerings

Gloria Dunkin Café Café
Menu Espresso Jeans Donuts Roasters 9 76 Cinnabon Neco’s

Oatmeal porridge 195

Chicken fagita omelet 365 325
Big steak omelet 375
Steak and eggs 385
Breakfast yougurt 155
Aussie omelet 315
Egg white omelet 315
Cheese omelet 350 345 325
Mushroom/herb omelet 350 329
Tomota/cheese and mushroom omelet 375 275 395
Cheese, pepperoni and onion omelet 375 325
Pakistani omelet 350 265 300 325 399
Spanish omelet 375 300
Scrambled eggs 325 300 239
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Poached/classic fried/boiled eggs 275 225 285 275 229

Kid’s breakfast 315
Bagel with cream cheese 295 265 399
Breakfast burrito 475
Chicken frankfurters 215
Baked beans 65
Pancakes with maple syrup 265 225 230 269
French toast with maple syrup 265 215 265 300 329
Waffles with ice cream and maple syrup 315 275 295 319
Croissant with cream cheese, strawberry 275 275
preserve/orange marmalade
Egg and cheese sandwich 100
Butter milk pancakes 225 265
Banana pancakes 265
Blueberry pancakes 295
Chocolate hazelnut pancakes 295
Egg cheese roll 250
Plain roll 230

Exhibit 7

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)

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 Exhibit 8

Figure E3 Population distribution by SEC’s McDonald’s market

Source: Interview with the marketing manager (based on the Pakistan Population Census Data
1998-1999; Gallup Pakistan 2004-2005)
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Exhibit 9

Table EVI McDonald’s age-wise and SEC-wise penetration

Year 2010 (%) (Pakistan)

McDonald’s penetration (age wise) (base: all interviewed)

Teens 45
Young adults 57
30 þ singles 39
FWKS 44
FWOKS 39
McDonald’s penetration (SEC wise) (base: all interviewed)
SEC AB 49
SEC C1 47
SEC C2 43
Profile of McDonald’s (age wise) (McDonald’s users interviewed)
Teens 28
Young adults 36
30 þ singles 7
FWKS 50
FWOKS 22
Profile of McDonald’s (SEC wise) (McDonald’s users interviewed)
SEC AB 48
SEC C1 46
SEC C2 37
Profile of McDonald’s visit (age wise) (McDonald’s Users interviewed)
Teens 26
Young adults 36
30 þ singles 5
FWKS 49
FWOKS 21
Profile of McDonald’s visit (SEC wise) (McDonald’s users interviewed)
SEC AB 44
SEC C1 43
SEC C2 30

Notes: Disclaimer: figures have been disguised in order to maintain company’s privacy; sample size
not disclosed by the company due to confidentiality purpose

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PAGE 12 EMERALD EMERGING MARKETS CASE STUDIES VOL. 2 NO. 8 2012
 Exhibit 10

Table EVII Proposed breakfast menu

Product Price (Rs)

Egg McMuffin 140

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

Exhibit 11
Downloaded by Chinese University of Hong Kong At 14:55 06 March 2016 (PT)

Table EVIII
Big breakfast is one option which has

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

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

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