3. o Pizza Restaurant business prospects & potentials in the middle east is close to these global ones;
thus, the pizza rest. global % share of the total food service industry applies in the middle east
Food Service Typ %
Sandwiches
Casual & Fine Dining
Catering
Pizza
Chicken
Café
Other QSR
Mian Pizza Concepts –
RATE CARD
15% 15% 15% 15% 15% 15% 10% 100%
Company/Brand
Share of
Voice
Penetration
Growth
Potential
Menu
Functionality
Service
Quality
Quality
Perception
Value
Perception
Total
Pizza Hut
Pizza Domino’s
Papa John’s Pizza
Little Caesars
o Among the key international pizza concepts in the region, LC rates the lowest (as per the Brand
Rate Card), although it comes first on “Growth Potentials” & “Value Perception”
4. Strengths Weaknesses
Good Menu Signature Items Low Share of Voice and awareness across the region
Value Perception Lack of proper cooperation & Co-op Activities between
countries in the Middle East
Bad practices of franchisees and deteriorating product quality
Opportunities Threats
Growing Franchisor support
Pizza is growingly being perceived as a good meal for all
family members not only youth
Political instability and changing demographics of the region
Dine-out is growingly becoming the main entertainment
option for families
Per capita food consumption: Forecasted compound annual
growth rate (CAGR) to 2017 = 4.0%
Pizza competition has always been very fierce being lead by
Pizza Hut in the Pizza Chain Category & the other local QSR
concepts that offer similar pizza-alternatives and
“Fatayer/Mana’esh”
6. oGood-to-know Info: Avg monthly spend per capita on Dining Out KD 00; Dine-out Market Size Estimate = KD 000 Mil.;
o With an Avg PSD (Per Str Per Day) Sales of KD 650 that has dropped down from their highest KD 1,000 in Jun 2001
(compared to KD 000000 of Pizza Hut), LITTLE CAESARS still has along way to go to match up to Pizza Hut’s brand
performance (operational & marketing) quality of new locations/openings
o With Locations concentrated on Co-ops (of cheap rent values) in Kuwaiti areas and in the C-Class areas (Farwaniya, City
Center Shuwaikh,..etc), LC:
o Misses a lot of B+ and above Expat market potentials
o Dine-in is not fully exploited (focuses mainly on conservative Kuwaiti families ) (31% of Trans & 38% of Sales)
o Is compelled to focus on value offers like “All You Can Eat”
o Dual-concept locations (LC with Popeyes – owned by the same company):
o Jeopardizes the LC Branding & concept perception
o Creates operational and dining experience difficulties/challenges
o Many of the promotional activities centered around throwing around the co-ops entrances piles of coupons the matter that
damages the brand and offers value perception
o ATL communication have been cheaply produced and broadcasted; besides, they were used only for tactical offer message
communication and no branding campaigns employed
9. Relevant population (Income of LE 15,000 and above + Demographic Location: Cairo + Alex + Red Sea Cities +
Delta Urban Main Cities) = 9,000,000
o Age brackets:
◦ 0-14 years old (0000%)
◦ 15 – 64 years old (0000%)
◦ 65 and older (0000%)
o Avg Yearly Spend on Food, Beverage Per Capita = LE 000
o Estimated Food Service Market Size = LE 00 Bil.
o The political situation in Egypt is currently unstable but improving. The political risk expectations are quite
acceptable
o LC has a ZERO Share of Voice; no marketing investment is being made; even online presence is very weak
o Location selection criteria is not effective
o Does not provide proper penetration in the areas it is open in due to minimal visibility
o Dining spaces are too small, missing a lot of the dining business
o The reported Quality Perception is mostly negative
11. - Positioning
o Needs to be one Positioning Strategy in the light of a set of unified brand’s key USP’s (e.g: Fresh
Dough & Ingredients, The Pizza Most Expecialized Pizza House, Best Family Time, Freshest Quick
Bite,…etc); product/ingredient quality & freshness (i.e: basic product attributes) at this re-launch
phase seems to be the best thing to start with; it is very important to “WORK ON CUSTOMER’S
PERCEPTION ABOUY QUALITY” of Little Caesars pizza in the middle east
o Target market definition: In our case (LC in the middle east), the following reasons make it easy to
decide on targeting/addressing the young age brackets of the middle and upper-middle class:
The fact that all Arab countries have young populations
Pizza is appreciated by the younger age brackets as a fulfilling meal compared to older folks
Young parents would sometimes pursue “pizza” for their kids as a healthier option than the
untrusted burger and fried food; it has everything in it (carbs, protein and vitamins)
o Although the Little Caesar “Brand Iconic Symbol” is unified everywhere, the brand perception (e.g:
Premium vs. Value,..etc) is not; it needs to be unified and premiumly positioned
- Pricing:
o Pricing needs to reflect the premium positioning; yet, the value bundles need to be competitive
o Margins can be applied on signature items (non-Index items)m unlike regular pizza items
12. - Communication
o Talk quality & freshness (basic brand attributes) given that:
o This is the main edge of the brand globally; and it is always recommended to start with the
basic edges in your first considerable communication
o Negative quality perception needs to be remedied
o Non-classic but clearly advertised value offerings
o ATL Media;
Unified social media campaigning and coordinated presences between sub-regions
PR buzz is always good to have simultaneously with the direct adv
TV campaigning needs to be carefully done in channels that serve all sub-regions
Newspaper is an effective tool, although the mechanism differs between different countries
Digital Marketing is essential: It is good to potentially have a “Landing Global Website” for
Middle East that should give you option to choose the local-country you need to visit
- Offerings:
o It is very important to minimize the excessive value offerings the way they have been done before
At this stage, out-reaching new customers is essential (first priority); it is not recommended to
carefully use “Trial Inducers” tactics instead of excessive discounts
This cheapens the concept and would not bring you a lot of potentially loyal customers
o Bounce-back offers are good, if elegantly applied (e.g: visit website & get a treat next visit,…etc)
13. - Locations:
o A flagship is crucial
o Malls are strategically crucial to be present at
- Shops look & face lifting
o VERY IMPORTANT for LC is the signage to be neatly designed, produced and installed, reflecting a
new face of LC; for that, the guidelines need to be strictly applied
o Decoration and some interesting interiors on the wall, for example, can have a positive impact on
walk-ins and even pick up order customers (down to the toilet signage choice);
- Menu Re-engineering:
o Unifying menu across the region and coordinating layout, mainstream items, signature items &
with other regions
o Offers need to be more vividly presented and with a LESS NUMBER OF OPTIONS
o Menus need to be more friendly as they are too crowded menu (in the signatures section)
o If the strategy is to promote LC as a family place, a kids menu/section is a must (healthier options
should be considered – e.g: orange juice); in that section, you might want to consider non-LC-Core
Items that are popular by kids (e.g: potato & pasta)
o Mixed platters for sides and signatures; reliefs the burden of the risk of making a wrong choice; this
would be very convenient for families and large numbers of guests on one table
o Including Great Food Shots is very essentials
14. - Penetration:
o Dual brand strategy should be discontinued
o Mall locations are VERY crucial; Recommended ones are Avenues Mall, Marina Mall, Muhallab
Mall, Kout Mall & 360
o A flagship location is needed in a commercial area (Salmiya is a first priority OR a prime spot on
Gulf Road, if possible)
o Hawalli, Sharq Fintas, Qurain & Salmiya are very important areas to be present at
o Less Co-op locations with more mall & in-line prime locations
o Delivery service needs to be given a little attention with a proper call center service
- Communication :
o Website is a priority
o Social media is a MUST
o Menu Re-engineering (e.g: Sandwich section needs to be re-studied; discontinuation shold be
considered)
o Stop throwing coupons at the doors of Co-ops
o A more effective media plan is to be considered as per the planned functions (e.g: more of Al Rai TV
and MBC, with less Local Kuwait TV,..etc)
o Newspaper insert is has always been an effective tool in Kuwait and affordable to go for
15. o Operation Enhancement is urgently needed; both quality and service need to be taken care of
o A more aggressive expansion and penetration strategies should be applied
o Marketing Investment is required AFTER the above is fixed
o For a safe take off, corporate locations and premium school locations should be considered, as
they allow you to penetrate more effectively, enhance profitability,
o Catering business has a lot of potential in Egypt
o The Main Cities in order of significance: Cairo + Alexandria + Mansoura + Port Saed + Sharm El-
Shiekh
o List of streets recommended for a flagship & Line-stores in Cairo (as provided earlier):
◦ Mohandesin: (Parts of Jamiet Al-Dowal + Jazeret Al-Arab + Lebnan St.)
◦ Dokki: (Mosaddak St. + Mohie El-ddin Abu El-Ezz)
◦ Heliopolis: (Merghany St. + Korba + Omar Ibn El-Khattab + A.Aziz Fahmy St.)
◦ Maadi: Degla + Road 9
◦ Zamalik: Brazil St.
◦ Nasr City: Abbas Akkad
16. THANK YOU
PREPARED BY:
MOHAMED A.RASHID IBRAHIM
CELL#: +201004220013
HTTP://EG.LINKEDIN.COM/PUB/MOHAMED-IBRAHIM/32/104/2B
WWW.FACEBOOK.COM/GBCONSULTEGYPT
AUGUST 2015
