Princely Jets (Pvt) Ltd – the air
ambulance
Yasmin Zafar
Yasmin Zafar is an
Assistant Professor
based at, Department of
Marketing, Institute of
Business Administration,
Karachi, Pakistan.
This case study is published
in partnership with the Asian
Society of Management and
Marketing Research (ASMMR)
as part of the 2014 ASMMR -
Emerald EEMCS Teaching
Case Competition.
Disclaimer. This case is written
solely for educational
purposes and is not intended
to represent successful or
unsuccessful managerial
decision making. The author/s
may have disguised names;
financial and other
recognizable information to
protect confidentiality.
DOI 10.1108/EEMCS-11-2013-0223
On January 7, 2008, Mr Ghouse Akbar, CEO of Princely Jets (Pvt) Ltd was contemplating
the result of the meeting he had just concluded with Samir Ahmed Mahmood, his marketing
manager. Ghouse had to finalize his launch strategy before the Board of Director’s meeting
the following Monday when he was scheduled to unveil the roll-out marketing strategy for
their new service, The Air Ambulance. He had to ensure his recommended strategy was
viable to secure the Board’s approval as the launch of the new services was scheduled for
July 2008. He faced the challenge of achieving a successful position and sustainable
demand for the premium priced pioneer Air Rescue Service in the cities of Karachi and
Islamabad.
Akbar group of companies (www.akbargroup.com.pk)
Mr Ghouse Akbar had been the Group Director of the Akbar Group of Companies since
2003. After graduating from Brown University in the USA in 1990, he had worked with the
Chase Manhattan Bank NY but he moved back to Pakistan in June 1993 to join The Akbar
Group as a Director, where his portfolio included the aviation wing. For the next 10 years,
he also chaired The Princeton Review of Pakistan, Nike Pakistan, McDonald’s Pakistan and
United Parcel Services and the other interests of the group, and, in 2003, he became Group
Director of The Akbar Group. During his entire stay in Pakistan, until 2004, he was actively
involved in public service and was awarded the Sitara-e-Imtiaz, a prestigious Pakistani
civilian award[1], for his contribution in public service and being the highest taxpayer. The
award recognizes both local and foreign nationals who have made an “especially
meritorious contribution to the security or national interests of Pakistan, world peace,
cultural or other significant public endeavor” It was also in 2004 that he decided to go back
to school and he enrolled at INSEAD, The Business School of the World. In 2005, Ghouse
returned to Pakistan with a graduate degree and set up Princely Jets and Fauji Akbar Portia
Marine Terminal Pvt Ltd.
The Akbar Group was a diverse group of companies[2], with over a quarter century’s
experience in the aviation industry; it had successfully introduced global brands to
Pakistan, including McDonald’s, Nike, The Princeton Review and LVMH Moet
Hennessy – Louis Vuitton. It was the pioneer in the aviation sector in Pakistan and
represented Amadeus, a travel services provider whose products and services had
formed the backbone of the aviation sector in the country through their Premier Aviation
Division. It also was the General Sales Agent (GSA) for 15 major international airlines
including Singapore Airlines, Thai Air and Alitalia. The Akbar Group had become one of
the largest providers of consumer services in Pakistan by introducing these high-profile
global brands.
VOL. 4 NO. 8 2014, pp. 1-34, © Emerald Group Publishing Limited, ISSN 2045-0621 EMERALD EMERGING MARKETS CASE STUDIES PAGE 1
 Princely Jets (Pvt) Ltd (www.princelyjets.com)
Princely Jets (Pvt) Ltd started operations in 2005 and was Pakistan’s first private charter jet
operator, owned by the Akbar Group of Companies. They were exclusive representatives
of Sky Jet International, part of the Bombardier (www.skyjetinternational.com) family of
private aviation solutions, operating across Europe, Middle East and Asia Pacific.
Bombardier Sky Jet International was the world’s largest provider of charter jet services in
Europe and their jet services ranged from on-demand charter to jet cards to fractional and
whole aircraft ownership.
Princely Jets introduced a unique business proposition to the Pakistani community and
offered private jet services, with a guaranteed availability of aviation services ranging from
ad hoc to private jet charter flights and an exclusive departure lounge for its customers. The
objective was to make this private jet charter experience as simple, comfortable, enjoyable
and unique as possible. Initially, operations were run from Jinnah International Airport in
Karachi, but within one year, in 2006, had expanded to Islamabad, the country’s capital
city. The jet service was well-received and had been operating successfully for the past few
years. This was largely due to the large business community of Pakistan, which required
traveling not only to remote areas within the country, where many manufacturing units had
been set up but also to foreign countries for trade and business.
Pakistani business executives were typically required to visit about four-six foreign
destinations within two-three days, while domestic visits would normally take three-five
days. This level of travel was not possible with traditional commercial travel facilities and
such complex needs were expediently managed through customized jet charter service.
Princely Jets had revolutionized business travel for Pakistani consumers, and with their
chartered services, they could cut their travel time manifold to within 12-14 hours. On
average, eight hours of driving time was equitable to 45 minutes of flying and those
conducting business around the country and abroad no longer needed to be absent for
long stretches of time from their business centers. This service changed the face of both
domestic and international travel by giving Pakistani travelers an unparalleled access to
private jets.
Princely Jets had grown to a fleet of four aircrafts by January 2008, including one
helicopter[3]. It had been growing steadily over the previous three years with an average
growth rate of 15 per cent per annum and a return on investment (ROI) of over 25 per cent.
To support this expansion, they had set up an operating base at Karachi International
airport (Terminal 1), and also constructed a 4,000-square yards hangar and state-of-the-art
maintenance workshop.
All Princely Jets aircrafts were equipped for long-haul travel of up to seven hours non-stop
flying. Each jet had its own cabin crew, a spacious stand-up cabin, executive table and
leather seating capacity of up to 10 persons[4]. The baggage compartment was accessible
both externally and internally, allowing in-flight ease-of-access to their personal belongings
by the customer. The private jet could substitute and replace overnight hotel
accommodation for short period stops throughout the entire trip for up to four persons. It
also had a full service gallery for meals and snacks with advanced business and
entertainment centers. Furthermore, the company maintained its own passenger lounge at
the Karachi airport, which further saved check-in and passenger airport turnaround time[5].
The charter charges were $2,500 per hour, and a typical three-day international trip would
cost around $200,000[6]. This covered the high overhead expenses of aircraft
maintenance, cockpit and cabin crew salaries and fuel charges, including the variety of
airport taxes and duties. Ghouse Akbar felt that the only issue with Princely Jets’ service
was that it could not be tried and tested before booking; there were many value-added
features, but they were all intangible and required experiential learning. He was convinced
that if the customer once tried and used the service, the pleasant experience, high
satisfaction and impressive convenience value would be the greatest trigger for building

PAGE 2 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014

relationships and continued loyalty. Value of the service is testified by a delighted customer
himself, i.e. “Try it to believe it!”
The experience of flying, as if on your own aircraft, is amazing. The convenience and time saved
was enormous. I was thrilled with the state-of-art facilities that were provided on board. They
even had the latest movies for my young 10-year old twins to occupy their time.

Overview of Pakistan[7]
The Islamic Republic of Pakistan, located in South Asia, is bordered on the west by Iran, the
north by Afghanistan, the northeast by China, the east and southeast by India and the south
by the Arabian Sea. The country is divided into five provinces: the North Western Frontier
Province, Punjab, Sind, Baluchistan and Gilgit Baltistan, and Islamabad is the capital city.

History
The modern state of Pakistan was developed in 1947, when the Indian subcontinent was
partitioned into two nations following independence from British rule. Relations between
Pakistan, primarily Muslim, and India, primarily Hindu, have remained tense. Disputed
ownership over the border areas of Jammu and Kashmir caused two of the three Pakistan–
Indian wars after partition. Modern-day Bangladesh was part of Pakistan until 1971, when
it seceded with Indian support and became an independent country. Pakistan’s
government underwent alternating periods of civilian and military rule, marked by high
levels of corruption, inefficiency and instability. Since partition, no elected civilian
government had transferred power through the electoral process to another civilian
government. Military regimes, which have lasted 10 years on average, have forcefully taken
over each civilian regime, which have typically lasted three years.
Pakistan is the sixth most populous country in the world and at least 95 per cent of
Pakistanis are Muslim (of this, Sunnis make up 75 per cent and Shias 25 per cent), and
minority religions in the country include Christianity and Hinduism. The national language
is Urdu but government officials and the elite speak English and regional languages
include Punjabi, Sindhi, Saraiki and Pashtu. Two-thirds of people live in rural areas, which
tend to be dominated by a few wealthy landlords. With 13 million people, Karachi is the
largest city, the national economic hub and the capital of Sind province. Pakistan is a
lower-middle-income country marked by high rates of urban and rural poverty.

Pakistan’s economy
Pakistan’s numerous internal political disputes led to low levels of foreign investment and
underdevelopment. In the late 2000s, the main economic drivers were services (54.5 per
cent), agriculture (20 per cent) and industry (23.6 per cent). Major industries included
textiles, food processing, pharmaceuticals and construction materials. Between 2001 and
2007, Pakistan’s economy grew robustly and poverty decreased, but starting in 2007, with
the onset of a global economic crisis and in the wake of domestic political disruptions,
economic growth slowed. Subsequently, sharp oil and food price increases exacerbated
the economic downturn.

Health in Pakistan[8]
Medical facilities in Pakistan for the 162 million people were low in 2008 with just one
hospital bed for 1,575 persons and one doctor per 18,010 persons. Facilities included 945
hospitals with 103,037 total beds, 4,794 dispensaries, 5,310 BHUs sub-health centers, 908
maternity and child health centers, 561 rural health centers and 293 TB centers. Medical
personnel included 133,925 doctors, 9,012 dentists, 65,387 nurses, 25,534 midwives and
10,002 registered Lady Health Visitors. Health expenditure was PKR 73,800 million both
developmental and non-developmental, a mere 0.86 per cent of the GDP and 43 per cent
of the gross domestic product (GDP) was spent in debt servicing; this hampered the quality
of care at the primary level, which remained poor.

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 3

 In comparison with other South Asian Countries, Pakistan[9] lagged behind in infant
mortality rate (0.063 per cent live births) and the mortality rate below five years (0.0865 per
cent live births). These indicators were high, and mainly on account of unhealthy dietary
habits, water-borne diseases, malnutrition and rapid population growth. However, the
average life expectancy at 66 years compared well with neighboring India, Nepal and
Bangladesh. Considerable efforts and immense resources were required to achieve
positive health outcomes.
Health spending(Lashari) had increased progressively over the years, as the National
Health Policy focused on making the population healthier. The objectives of the health
policy were to achieve targeted interventions, namely:
 making the health system more responsive and accountable;
 introducing reforms in the health sector to make pragmatic progress in meeting targets
and tackling effectively newly emerging and re-emerging health issues;
 effectively engaging private health sector and civil society organizations to improve
health outcomes; and
 prioritizing vulnerable and disadvantaged groups in society.

Healthcare workforce (Hameed, 2008)

Pakistan had a healthcare workforce shortage, especially among nurses. The majority of
health services and personnel were located in urban areas and private traditional healers
were the main source of care in rural areas. The government paid physicians about
$145-$212 per month but doctors working in the private sector could earn up to four times
as much. Many doctors tended to work until the early afternoon in the public sector and
supplemented their government salary with private practice. One study estimated that
about 20 per cent of new Pakistani medical graduates emigrated annually to seek higher
salaries. There is also a lack of standardization and training for paramedical staff, such as
biomedical engineers and technicians.

Public health system

Pakistan inherited a centralized healthcare system from the British. The Ministry of Health
(MOH) was responsible for providing free health services, including hospital care, to all
citizens. Each new government throughout the 20th century changed the previous
administration’s health leadership and policies before plans could be implemented
effectively. Mechanisms of accountability eroded with each change in administration and
politics weighed heavily on decisions. This led to wasted resources and poor morale
among civil servants, often described as “institutional malaise”.
Starting in 2001, the government decentralized planning and administrative powers to
address criticism about the failing system. Village basic health units were the first level of
care and often lacked doctors, were understaffed and poorly equipped. The next level of
care, rural health centers, had 30-member staffs led by two male and one female medical
officer to serve 50,000-100,000 people. The centers were supposed to be open 24 hours
a day, but functionally they operated between three and five hours a day, offering X-rays,
basic laboratory tests and minor surgery facilities. Municipal-level hospitals typically
catered to a catchment area of 100,000-300,000 people and serviced them with just 40-60
beds in the hospital and offered secondary services, including obstetrics, pediatrics and
general surgery. District hospitals had, on average, 100 beds and offered acute care and
emergency services to roughly one to two million people. Major cities had state-run tertiary
teaching hospitals affiliated with universities that offered subspecialty care[10].
Surveys showed that less than 30 per cent of people used government healthcare services,
citing frequent health worker absenteeism, poor quality services, inconvenient locations
and few female employees. Most public sector health services were supposed to be free,

PAGE 4 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014

but patients often had to pay user fees and buy their own drugs and supplies. Additionally,
there were widespread accusations of corruption – for example, workers demanding bribes
from patients, receiving kickbacks from suppliers and stealing supplies and equipment for
resale. A weak judicial system, lack of accountability, low salaries, low performance
recognition and reduced motivation, particularly among rural workers contributed to the
corruption. Care quality was not supervised systematically. A former Pakistan Medical
Association President explained:
A majority of the basic and rural health units in the country are non-functional mainly because
of the very low priority status the government accords to public health. In a country where the
government is unable to provide clean drinking water, it’s difficult to talk of quality health care
[. . .]. People from far-flung areas report at tertiary care hospitals in cities with complications
which could have been tackled at an early stage if health units were functional in their own
localities. It’s not a matter of resources, but of misplaced priorities.

While the government devoted 11 per cent of its budget to education and 18 per cent to the
military, it allocated less than 4 per cent to healthcare. The limited investment in health led
to severe resource constraints, high reliance on international donor funding and
unpredictable financial flows that impeded long-term planning. The government operated
public health programs, including national immunization campaigns and the Lady Health
Worker Program created in 1994 to expand access to healthcare for women and children
in underserved areas. The government trained and paid more than 90,000 Lady Health
Workers to provide family planning services and primary care within a catchment area of
1,000 people. The program covered 60 per cent of Pakistan, mostly in the rural areas.
Health indicators in covered areas tended to be better than the national average.
It was a paradox that the preventive care setup, which was a primary need of the country,
was still rudimentary. The preventive care services through the vertical programs were run
by the federal government and comprised maternal and child healthcare, tuberculosis
control, National AIDS control, immunization, malaria control and women’s health projects.
The private health sector included all actors outside the government and this filled up the
much-wanted advanced facilities but, due to lack of regulation, many substandard setups
had mushroomed.

Health insurance[11]
Pakistan has a small private health insurance industry and a State Bank of Pakistan review
reported that Pakistan’s private insurance industry was the smallest compared to other
developing countries. Only a few companies offered individual health insurance and these
companies were based in the urban areas and worked through private institutions where
cost of care was high, leaving the rural areas totally uncovered.
The principal mode of healthcare finance was out-of-pocket payment and tax-based
revenue; however, the tax net was not efficient and broad-based. Physicians and hospitals
were reimbursed through individual out-of-pocket payments. There was no limit to the
provider’s fee in the private setups, but in the public sector, the providers get a fixed
payment and would be allowed private practice after working hours. The other constituents
were the donor funds (4-16 per cent of health sector allocation), employee’s social security
schemes (3.06 per cent of the work force in the formal sector) and safety nets such as the
Zakat[12] fund (0.3-3 per cent of total health expenditure).
Social health insurance, in the form of Zakat, was a mandatory donation equivalent of 2.5
per cent of annual savings. This had to be submitted annually and went into a special
government fund and was distributed among the needy, but the lack of a proper
infrastructure limited timely equitable disbursement of the funds. Private philanthropic
activities covered the majority of the country’s social care needs and beneficiaries are
chosen by the individual and/or donating agency but the role of community co-financing
and the philanthropic grant has not been well-established.

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 5

 The Employees’ Social Security scheme is the only comprehensive health coverage system
for the labor force and is an autonomous system of fund generation that was disbursed
through a self-owned healthcare infrastructure. A total of 1.2 million individuals in the force
were insured and 48 per cent of the work force in the agriculture sector was excluded.

Ambulance services in Pakistan

A proper ambulance service for shifting acutely ill patients was nonexistent, let alone an air
ambulance service. Some NGOs and welfare trusts had started services but these were
meant mostly for emergency and logistical purposes and not for acute pre-hospital care.
Furthermore, they did not cater to distant evacuation or support.
One study revealed adverse patient perceptions and reflected mistrust, inadequate
facilities and lack of public awareness about ambulance services. Responses included
following self-explained comments (Karani et al.):
I’ve seen one thing very often that an ambulance has a siren for an emergency, and people no
longer trust it because it is being used incorrectly.

During my mother-in-law’s time we didn’t have a car so we had to call an ambulance for her and
we had to wait for a while for the ambulance.

If you call them [. . .] they don’t often come [. . .] by going yourself you do find them.

But [the ambulance provider] knows that if I keep some medication [in the ambulance] it will get
stolen.

How can you compare their (foreign country) ambulances with Pakistan’s ambulances? It’s the
difference between the Earth and sky.

Firstly it doesn’t have that good of a feeling, it gives you a bad feeling that a person is going in
an ambulance.

Someone we know called them, he [my husband] was sick and my son is young.

Those poor people who don’t have their own private car, these people mostly choose
ambulances.

Often, the lower class thinks that instead of a taxi, I’ll take an ambulance, because the poor
things want to save.

Another study on pre-hospital care and ambulance staff in Islamabad (Sikandar et al.,
2006) confirmed that ambulance staff had inadequate knowledge and skills for basic
emergency needs and there was a lack of basic equipment in the vehicles. In Pakistan,
ambulances were largely serving as patient transport vehicles without serving as efficient
first aid units and the majority of patients lacked awareness, ability to pay, access to or a
value-added perception for the services.

The siren
Ghouse remembered the day his friend’s aunt suffered a heart attack. The family had
trouble reaching the Aga Khan Hospital in Karachi and was stuck in traffic for two hours in
her car, which could not move due to the traffic congestion. She was unable to receive
medical help within the required time frame and died, but if she had reached the hospital
in better time, the doctors would have been able to save her life. All the roads had been
blocked and no traffic could cross from one side to the other to reach the hospital. That day,
October 18, 2007, Benazir Bhutto’s procession had been attacked on Shah-rah-e-Faisal
and pandemonium had resulted with many people losing their lives in the blasts. Benazir
was the Chairman of Pakistan People’s Party, an active political group in Pakistan, and was
returning to Pakistan after an eight-year self-exile. Main Shahrah-e Faisal was closed for

PAGE 6 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014

traffic to allow the procession to travel from Jinnah International Airport to the Mausoleum
of Quaid – e-Azam, the founder of Pakistan, just a small distance of 10 miles where she was
supposed to have addressed her group of supporters gathered there to welcome her
home.

Air ambulance services

Ghouse knew that an air ambulance would have saved his friend’s mother that ill-fated
night. This service is the swiftest means to transport a patient to the closest hospital and
extremely useful during natural disasters, acts of terrorism and accidents[13]. It had been
in use throughout the world since 1928, as a safe, speedy and effective alternative to
ground transport for treating patients in critical conditions. Princely Jets had been the
pioneer in aviation services in Pakistan and the company wanted to take the initiative to
bring this form of advanced service to the country. The concept was to provide a safe,
secure and cost-effective transport to key personnel from site-to-site in a fraction of the time
it would otherwise take surface transport. This would be a safe and secure means of also
transporting high-risk items and people, even to far-flung and inaccessible areas. It would
be a solution to problems including traffic-causing delays, taking days to transport medical
facilities to remote areas, waiting for the delivery of essential equipment and other
significant security logistic issues. Having a patient at remote site, an accident at a far-flung
location or a lack of medical services at a facility were some other useful reasons for this
service. The company foresaw that medical facility configured helicopters would provide
the right solution for both people and key equipment. The Air Ambulance Service planned
to cater to these businesses and provide a premium means to transport personnel and
patients who needed immediate medical care to the nearest hospital.
In April 2007, the CEO of Princely Jets, Mr Ghouse Akbar, initiated the idea of an air rescue
service. Samir Mahmood, the Marketing Manager, was asked to prepare the feasibility of
this brand extension and had to design a program for an air rescue service. Ghouse Akbar
had wide exposure and experience of these services during his student days, and he had
studied for his MBA at the executive graduate program at INSEAD in France from 2004 to
2005. He had not only heard of but also experienced the need of air ambulances on his
skiing trips to Austria during his winter vacations. His own friend had nearly died due to an
accident on the slopes of Switzerland during the winter of 2004 but was lucky to have on
hand the air rescue service which transported him to the closest medical facility for timely
emergency treatment.
Ghouse envisioned that executives and corporations of Karachi would value these
conveniences. They were the needs of the hour, prompted by inadvertent delays in patient
movement across the city, mainly due to the rising number of vehicles on the road and
constant prime time traffic jams. The demand for a rescue service in Karachi was ostensibly
a viable opportunity for the affluent and prosperous customers. Ghouse projected that the
air ambulance service would be a natural extension for the aviation services Princely
already provided through Princely Jets.
Market research had been conducted informally, primarily through direct discussions with
senior executives and CEOs of large corporations. The corporate entities were the potential
and target customers and included most multinational and large national companies,
banks, embassies and even the government agencies. Some high net-worth individuals
were also identified as prospective users. The typical customer was identified as one who
would be willing to provide insurance for this value-added medical facility not only for
personal use but also for use of company employees.

Competition
Many agencies were operating rescue facilities throughout the country, but in 2008, at the
time of Ghouse’s consideration, there were negligible air rescue services available. Most of
these rescue services were operated by charitable organizations and primarily focused on

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 7

 victims hurt on the road, predominantly with no insurance and meager resources. They
were relatively free of cost and catered to transport only and were unable to provide
specialized emergent medical state-of-the-art care on route to the hospital facility. The
affluent population of Karachi and Islamabad did not perceive them to be of good and
appropriate quality.

Askari Aviation (www.askariaviation.com)

Askari Aviation was the only option which provided air rescue services. They provided
helicopters at lower than the market price. The service provided was ad hoc, did not
necessarily need a contract and was also uninsured. Furthermore, the fleet was small and
aircraft availability was not consistent. The helicopters were not equipped with any medical
paramedical staff, technicians or medical supplies for onboard treatment and extended
and drawn-out procedures for engagement further restricted active use of this service.
Askari Aviation was engaged in providing aviation services of helicopters predominantly for
adventure, safaris, rescue, crop dusting, cargo transportation and policing. In addition to
its integral fleet of rescue service helicopters and aircrafts, it was backed by a fleet of
Pakistan Army aircrafts, and Askari helicopters were invariably required for rescue and
pre-positioned by the Army Aviation in general area of mountaineering expedition areas.
They were also called to assist in severe situations of natural disasters in the country and
had been very active after the massive earthquake in 2005 and during the monsoon floods,
which struck major parts of Punjab, in central Pakistan annually. During the monsoon
floods, people would be marooned in remote water-blocked areas for days without food
and drinking water. It was in these times that the army requisitioned Askari helicopters to
airdrop survival kits and relief goods to support their rescue and relief operations.

Edhi Foundation (www.edhifoundation.com)

Edhi Foundation was an established name in Pakistan for relief work within distressed areas
in Pakistan and was founded by Abdul Sattar Edhi in 1951. It is a non-profit organization
providing social services such as medical care, emergency and burial services, facilities
for the mentally ill, old people’s homes, child welfare services, abused women’s safe
houses and training facilities for the disadvantaged. Their response was immediate in the
frequent tragedy instances such as political trouble, bomb blasts and terrorist attacks.
The Edhi Foundation had a large fleet of ambulances but these were limited to ground
rescue facilities primarily ambulances, which invariably would rescue the victims, taking
them to hospital setups for timely medical aid administration.
In 2006, the foundation received a helicopter from USAID to set up an air rescue service.
Aviation was not their area of expertise and they needed a heavy investment outlay for the
required resources to create and, subsequently, maintain the air rescue unit. Ghouse Akbar
commented that “The aircraft is grounded and has become non-functional”. And,
according to him, there was a remote chance of it becoming functional as the donated
helicopter had deteriorated and rusted due to lack of maintenance.

Chhipa Ambulance Services (www.chhipa.org)

Chhipa was another government registered welfare organization run by Mr Ramzan
Chhipa, a social welfare worker. The organization had dedicated volunteers operating
rescue ambulances which carried a basic first-aid box and oxygen cylinders. Among many
other philanthropic services that it provided were the following:
 on-the-spot emergency medical aids and service to all kinds of victim and emergency
patients;
 24-hour free rescue operations in accidents, emergency and disasters; and
 24-hour free ambulance service to people who cannot afford any charges.

PAGE 8 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014

They were highly entrenched in their mission “rescue”, which was clearly reflected through
the ambulance siren tune on their Web site. Their activities had just started in 2007 and
were largely funded through donations. According to Sameer, “It is unlikely that they will
offer air ambulance rescue services in the near future”.

Emerging innovation in marketing

Emerging innovation in the delivery of healthcare, particularly in developing countries,
offer insights into how to tackle its rising cost, which is estimated at $7 trillion a year
globally (www.mckinsey.com/insights/health_systems_and_services/the_emerging_
market_in_health_care_innovation). Healthcare is consuming an escalating share of
income in developed and developing nations but innovators have found ways to deliver
care effectively at significantly lower cost while improving access and increasing
quality. Tackling costs is imperative and remains an important goal in the global
economy.
New approaches to the delivery of care abound. In Mexico, for example, a
telephone-based healthcare advice and triage service is available to more than one million
subscribers and their families for $5-a month, and paid through phone bills. In India, an
entrepreneur has proven that high-quality no-frills maternity care can be provided for
one-fifth of the price charged by the country’s other private providers. In New York City, the
remote monitoring of chronically ill elderly patients has reduced their rate of hospital
admissions by about 40 per cent. Unfortunately, healthcare can be an isolated and local
activity: individual innovations are often not known across different systems or beyond
specific sector boundaries. Merely identifying and promoting innovations isn’t enough;
because of this, marketers need to understand whether, and how, the lessons of innovators
can be replicated elsewhere.
Due to weaknesses in the infrastructure, institutions and resources of emerging markets,
entrepreneurs face fewer constraints and they could bypass Western models and forge
new solutions. Ghouse had foreseen the growing demand for ambulance services and
planned such a project through the Air Ambulance Service (www.ft.com/cms/s/0/872d3724-
1c36-11e2-a63b-00144feabdc0.html#axzz31edfYmBp). He realized its premium cost but,
equipped with his previous experience of high image global brands in Pakistan, he
resolved to take up this daunting challenge.
Pakistan was home to numerous thriving businesses that placed employee safety as their
top priority and more than 600 of these companies were listed on the Karachi Stock
Exchange (www.hamariweb.com/finance/stockexchanges/kse_market_summary.aspx).
These companies traditionally and typically catered to insurance and medical emergency
needs of their personnel and their family members as part of their compensation packages.
There were many multinational and large national companies, which were also sensitive to
security issues and were increasingly providing benefits and facilities for their employees’
wellness and security.
As conditions in the country were becoming hazardous this need had been foreseen by
Ghouse, possibly the most innovative member of the Akbar Group. These corporations
were prospective customers that he planned to target for the Air Ambulance Service. They
were established business houses and had developed expertise in their industry and
grown significantly in terms of business scope, revenue, sales volume and employee
loyalty. They were the personification of what good employers should offer and were valued
highly by the elite but niche market of the highly educated professionals of Pakistan. The
employee profile of these companies was typically the head of a household who aspired to
succeed and provide the best for his/her family in terms of education and health, had high
self-esteem, aspiring great success in his career and most important desired a
comfortable, safe and healthy family life.

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 9

 Market demand
Pakistan had become prone to declining political instability and social and economic
disparities were increasing. Occurrence of political protests, traffic accidents, criminal
assaults and frequent terrorist bomb attacks plagued the country on a daily basis[14] and,
as a result, there was a constant demand for transport of emergency victims by the rescue
agencies. The growing menace of voluminous traffic jams in all large metropolitan cities of
Pakistan, especially Karachi, the hub of Pakistan’s business trade and industry, was
increasing daily. The zigzagging of motorcycles and large and small vehicles through the
streets added to the complications of the blatant breaches of traffic rules and this magnified
the gravity of the situation. It would take hours to get from place to place, especially during
peak traffic hours (between 5 p.m. and 8 p.m.). On a daily basis, the press reported
untimely delays and the frequent deaths of patients whose ambulances were delayed in
traffic jams, preventing timely medical aid. The constant noise of sirens and horns resulted
in a total chaotic environment, as the majority of population returning home was invariably
stuck in congested traffic areas.
Road traffic accidents (RTA) were a major yet preventable cause of death and disability
in developing countries such as Pakistan. However, accurate data on injuries were
often difficult to obtain. A study of the estimated rates for the year 1994 showed there
had been 185 injuries and 11.2 deaths per 100,000 people (Junaid and Stephen, 1998).
This rate had increased by 2008 to 10,643 injured and 785 deaths per 100,000 people.
The provincial police departments’ data related to road accidents stated that, while total
accidents had grown by more than 10 per cent during the period of 1998-2008, the rate
of growth in fatal accidents was even worse, as they had increased by more than
16 per cent.
Additional factors that had led to the increasing popularity of medical services included the
high cost of healthcare, long wait times for certain procedures, the ease and affordability
of international travel and improvements in both technology and standards of care in many
countries (www.specialist-aviation.com/news-princelyjets.htm).
In a country where the law and order situation was so volatile, with injuries and fatalities an
everyday matter, the need for air ambulances was, therefore, eminent, if not almost natural.
Whenever Pakistan had suffered from a natural catastrophe or a medical emergency
situation, there was no resolution except to enlist the Pakistan Army support which would
provide relief for the victims. Specific areas that became inaccessible by road would only
be reached by air.
The corporate professionals and the business community had high incomes and were
considered “liberal spenders” when it came to personal consumption. They would buy the
best of brands, preferably imported, they studied at renowned private established schools,
went abroad for higher education, displayed grand lifestyles, drove expensive cars,
enjoyed fine dining and spent their summers at exotic foreign locations and their medical
facilities of choice were the private high-end premium facilities in Pakistan or abroad in
specialized care situations.
Health awareness in Pakistan was in its nascent development stage, and people in the
middle-to-senior age bracket faced grave health issues and needs. However, the young
professionals of the Generation Y era were more proactive and maintained healthier
lifestyles, and as consumers had high brand awareness and showed preference and
loyalty for global products and services. This ethnocentric behavior resulted in the
immense popularity of imported products and services. This prompted Ghouse to propose
the Air Ambulance Service, as he knew it was unique and unknown and intangible and, as
a result, its value, significance of service and premium price points were going to be
difficult to sell. However, the project had a deep emotional context, as it had roots in the
close-knit and family-oriented society of the Pakistani culture.

PAGE 10 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014

It was because of this widespread setting that Ghouse firmly believed the market would
have large appreciation for air ambulances. Convenience and speed, safety and security,
expertise and state-of-the art equipment were all highly relevant for the Pakistani consumer.
The value of protecting him/herself and his/her family members would persuade
entrepreneurs and the corporate socially responsible multinationals to register and, hence,
ensure a reliable emergent medical rescue facility for family and corporate employees in a
timely manner.

Strategy
The initial plan was to have state-of-the-art air rescue ambulances functional in two large
cities of Pakistan, initially in Karachi and Islamabad. They designed to start the air rescue
services with two fully equipped helicopters that would operate within a radius of 125
nautical miles (equivalent to 225 land miles) that would take half an hour travel time. The
objective was to get the patient expediently to the closest medical facility within a short time
span. The turnaround time of 75 minutes and the return trip allowed adequate time for
pick-up and the patient and attendant both would reach a hospital within 90 minutes. Of the
two helicopters in Karachi, one would be on standby and ready to immediately respond to
any request and the other helicopter could be converted to a fully equipped medical unit
within one hour to manage multiple requests.
Because Ghouse had personally experienced international air rescue facilities, he was
familiar with what facilities were vital to promulgate. The helicopter cabin would need 180°
aerial view, with multiple seating and at least two patient beds. A fully trained paramedic
team would include a doctor, state-of-the-art medical equipment, life-saving and
emergency medicines and oxygen and blood transfusion capabilities. The air ambulance
would have to ensure the smooth shift of the patient from helicopter to a hospital emergency
room and would ideally land directly on hospital premises. He was convinced that all these
benefits would significantly increase the survival and treatment rates for the exclusive
group of customers that they planned to focus on.
The scope of the strategic air rescue services would further include:
 transportation of physicians and specialists to remote areas;
 inter-hospital carriage of patients requiring specialist’s treatment and immediate
attention;
 quick shipping of blood, medicines and vital human organs; and
 medical and other support to companies/organizations in remote areas of the country;
To obtain an initial bird’s eye view of market opinion, Ghouse organized a focus group with
the CEOs of selected potential corporations and they had shown positive interest in the
services. They had concurred with the idea of a fixed monthly membership fee PKR 750
and a variable expense, which entailed an hourly payment of PKR 2,500, based on actual
consumption[15]. Value addition, predominantly experiential and crisis-centered, was the
key ingredient that needed to be communicated to the customer. The Air Ambulance
Services marketing team faced the task of creating high-responsiveness of necessity and
advantage supported by convenience. This would be authenticated by the resource
savings which would ultimately influence the customer to capitalize on the opportunity. The
premium value-added service was expected to have a long adaptation period and
word-of-mouth was perceived to be the most important and effective promotion tool. The
project forecast had a lengthy breakeven period and payback would not be easy to
achieve[16].
Initially, marketing of Princely Jet Charter services had primarily involved direct marketing
(DM) by Ghouse and Sameer through targeted public relation meetings with information
exchange and the wide distribution of brochures, supplemented by individual visits to
senior executives of multinational companies, banks and large nationals. The company’s

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 11


Keywords:
Service marketing,
Relationship marketing,
Launch of premium service,
Direct marketing,
Air ambulance services.
PAGE 12 EMERALD EMERGING MARKETS CASE STUDIES
Web site was also used as a pivot for information dissemination. Princely Jets had
traditionally relied on word-of-mouth and relationship marketing for these premium priced
services. Referrals and word-of-mouth testimonials and opinions had been very effective
and stemmed growth of the company and the CEO was now confident that a parallel
approach would work for the Air Ambulance Service.
Ghouse and Sameer planned to attract prospective clients from their own corporate
network, mostly now personal friends, who came with high net worth backgrounds.
Ghouse would be the lead generator based on his close net and access to high-profile
C-executives and high-profile high-income elite of Pakistan. Sameer would initiate
awareness campaigns and disseminate information through brochures, presentations and
video showcasing at tea meetings. The corporate boardrooms would also be marketed
through public relation strategies and personal selling approaches. They believed that DM
would be the most effective tool to communicate with the potential consumer.
As the Air Ambulance Service was relatively unsolicited and essential only for emergencies,
Ghouse believed this would involve extreme persuasion and tenacious selling, and
therefore required a considerable source of patrons. Over the previous decade, the
company had developed strong relationships with numerous large business corporations
operating in Pakistan and had developed a sizable network of business relationships.
Ghouse believed that these associations would stand him in good stead in the following
months to come. However, the Board would need to show some patience in terms of returns
and profitability, as there was going to be a prolonged phase of investment turnaround
ahead of them.
Conclusion
Sitting at his desk, Ghouse had to consolidate the strategic design for the service launch.
Next week, when he met the Board, he needed to rationalize the marketing strategy. His
challenge was to ensure a practical, endurable and lucrative launch. How would he secure
the Board’s endorsement, especially, as the breakeven and the payback periods were not
very attractive for the audience in the boardroom.
Notes
1. The Sitara-I-Imtiaz (Star of Excellence) is the third-highest honor and civilian award in the State of
Pakistan.
2. See Exhibit 1.
3. See Exhibit 2 for details of aircraft fleet.
4. See Exhibit 3 for aircraft interior facilities.
5. See Exhibit 4 for lounge facilities.
6. See Exhibit 5 for detailed charter rates.
7. The Indus Hospital: delivering free healthcare in Pakistan; Case GHD 023 2012 .
8. Pakistan Economic Survey 2011-12: www.finance.gov.pk/survey/chapter_12/11-HealthAndN
utrition.pdf
9. State Bank of Pakistan Report 2003.
10. Exhibit 6: List of hospitals.
11. State Bank of Pakistan Report 2008.
12. Zakat is an annual payment (2.5 per cent of annual savings) made under Islamic law on certain
kinds of property and used for charitable and religious purposes; it is one of the Five Pillars of
Islam.
13. Ivey Case 908E04: Stars Air Ambulance.
14. Exhibit 7: News briefs.
15. Exhibit 8: Customer forecast.
VOL. 4 NO. 8 2014
16. Exhibit 9: Cost and revenue estimates.
17. The Marketing Association Of Australia And New Zealand: Services Marketing; www.marketing.
org.au

References
Hameed, A., (2008), Health-Care Delivery System and Reimbursement Policies in Pakistan, Aga Khan
University, Karachi.

Junaid, R.A. and Stephen, L.P. (1998), “Estimating deaths and injuries due to road traffic accidents in
Karachi, Pakistan, through the capture-recapture method”, International Journal of Epidemiology,
Vol. 27 No. 5, pp. 866-570.

Karani, R., Chandran, A. and Ejaz, K., Insights on the Effects of Patient Perceptions and Awareness on
Ambulance Usage in Karachi, Pakistan, Johns Hopkins Bloomberg School of Public Health,
International Injury Research Unit and The Aga Khan University Hospital, Department of Emergency
Medicine, available at: http://krieger.jhu.edu/woodrowwilson/wp-content/uploads/sites/3/2013/03/KAR
ANI-RABIA.pdf.

Lashari, T. (2004), Pakistan’s National Health Policy: Quest for a Vision, 1st ed., Health Policy Unit, The
Network for Consumer Protection, Islamabad, available at: www.thenetwork.org.pk

Sikandar, I., Khaliq, T., Iqbal, T., Saaiq, M. and Jamal, S. (2006), “Pre-hospital emergency care and
role of ambulance staff; where do our ambulances stand?”, Annals of Pakistan Institute of Medical
Science, Vol. 2 No. 1, pp. 57-61.

Exhibit 1
Akbar Group of companies:
 Princely Jets (Pvt) Ltd.
 Princely Travels (Pvt) Ltd.
 Citilink.
 Amadeus.
 Nike.
 McDonald’s.
 American Insurance Group (AIG).

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 13

 Exhibit 2

Table E1 PJL fleet of aircrafts

Year No. of aircraft Type Acquisition costa Flying capacity per annum

2005 1 jet Citation Bravo $7.0 million 6,000 flying hours

2006 1 jet Challenger 601 $12.0 million 7,500 flying hours
2008 1 jet Challenger 604 $24.0 million 9,000 flying hours
2008 1 helicopter BO-105 Twin engine $2.5 million 245 nautical mile range
Note: aDepreciation on straight line basis for a life of 10 years

Plate E1

PAGE 14 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014

Exhibit 3

Plate E2

Plate E3 Flying high in luxury and comfort

Plate E4

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 15

 Exhibit 4

Plate E5 Experience royal treatment before take off

PAGE 16 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014

 Exhibit 5

Table E2 PJL charter rates

Cost category Domestic program International program

Twin engine Euro-copter Twin engine Euro-copter and Jets

Contract term: One year One year
Monthly membership fee: $750 per month ⫹ FED $3,000 per month ⫹ FED
Operational cost per hour For helicopters, @ $2,000 per hour or For helicopters, @ $2,500 per hour or part
part thereof ⫹ CED thereof ⫹ CED
For Citation Bravo, @ $2,000 per hour or
part thereof ⫹ CED
Challenger 601, @ $3,000 per hour or part
thereof ⫹ CED
Challenger 604, @ $3,000 per hour or part
thereof ⫹ CED
Payment requirement: (one-year advance) $9,000 ⫹16% FED tax $36,000 ⫹16% FED tax

Plate E6

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 17

 Exhibit 6

Table E3 Hospitals in Pakistan-Karachi and Islamabada

Serial no. Sind public institutions: Karachi

1 Abbasi Shaheed Hospital

2 Civil Hospital
3 Civil Hospital–Burns Centre, Karachi
4 Jinnah Postgraduate Medical Centre
5 Karachi Institute of Heart Diseases
6 Lady Dufferin Hospital
7 Leprosy Hospital
8 Lyari General Hospital
9 National Institute of Cardiovascular Diseases
10 National Institute of Child Health
11 PNS Shifa
12 Police Hospital
13 Sind Government Qatar Hospital
14 Sind Government Hospital New Karachi
15 Sind Institute of Skin Diseases
16 Sind Institute of Urology and Transplantation (SIUT)
17 Sind Institute of Skin Diseases
18 Sobhraj Maternity Home
19 Spencer Eye Hospital
Islamabad Capital Territory: public institutions
1 National Institute of Health, Islamabad
2 Dar-ul-Shifa Hospital, Islamabad
3 Federal Government Services Hospital, Islamabad
4 Glora Welfare Hospital (Ghosia-Mahria Trust)
5 Pakistan Institute of Medical Sciences (PIMS)
6 PAEC Hospital, Islamabad
7 Nescom Hospital, Islamabad
8 KRL Hospital, Islamabad
9 Aslam Memorial Medicare Hospital (ISLAMABAD)
Islamabad Capital Territory: private institutions
1 Islamic International Medical Complex, Islamabad
2 Shifa International Hospital, Islamabad
3 Ali Hospital F-8, Islamabad
Sind private institutions: Karachi
1 Aga Khan University Hospital
2 Bismillah Taqee Institute of Health Sciences & Blood Diseases Centre
3 Bantwa Memon Hospital
4 Burhani Hospital
5 Children Cancer Hospital
6 Dar-ul-Sehat Hospital, (Liaquat Medical & Dental College) Karachi
7 Hamdard University Hospital
8 Health Care Hospital
9 Holy Family Hospital
10 Al-Ibrahim Eye Hospital
11 Ibne-Sina (Avicenna) Hospital
12 Imam Clinic and General Hospital
13 Jinnah Medical College Hospital
14 Karachi Adventist Hospital
15 Kharadar General Hospital
16 Kidney Centre Post Graduate Training Institute
17 Kiran Hospital for Nuclear Medicine
18 Kutiana Memon Hospital
19 Layton Rahmatulla Benevolent Trust Eye Hospital
20 Liaquat National Hospital
21 Marie Adelaide Leprosy Centre (MALC)
22 Al-Mehrab Tibbi Imdad
23 Masoomeen Hospital
24 MidEast Hospital
25 Murshid Hospital and Health Care Center
(continued)

PAGE 18 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014

Table E3
Sind public institutions: Karachi

26 OMI Hospital
27 Patel Hospital
28 Saifee Hospital
29 South City Hospital
30 Tabba Heart Institute
31 Usman Memorial Hospital
32 Zainab Punjwani Memorial Hospital
33 Dr Ziauddin Hospital
Notes: awww.forumpakistan.com/list-of-hospitals-in-pakistan-t719.html#ixzz31ibAn6j0; all names
are predominantly from the Urdu language and there will not be many standard spell check
dictionary databases

Exhibit 7
Pakistan news items

Plate E7

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 19

 Plate E8

Exhibit 8

Table E4 Customer and revenue forecast: customer membership forecast

Year Customers Membership Monthly retainer Annual retainer

1 5 $750 $3,750 $45,000

2 10 $750 $7,500 $90,000
3 15 $750 $11,250 $135,000
4 20 $750 $15,000 $180,000
5 30 $750 $22,500 $270,000

Table E5 Customer and revenue forecast: demand air rescue services

Year Customers Annual hours used/customer Rates Total hours used Annual revenues

1 5 10 $2,500 50 $125,000
2 10 15 $2,750 150 $412,500
3 15 20 $3,000 300 $900,000
4 20 25 $3,500 500 $1,750,000
5 30 25 $4,000 750 $3,000,000

PAGE 20 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014

Exhibit 9

Table E6 Air ambulance revenue estimates

Year 1 2 3 4 5

Revenues
Membership $45,000 $90,000 $135,000 $180,000 $270,000
Flight revenues $125,000 $412,500 $900,000 $1,750,000 $3,000,000
Total revenue $170,000 $502,500 $1,035,000 $1,930,000 $3,270,000
Costs (1 aircraft) (2 aircraft) (3 aircraft) (3 aircraft) (3 aircraft)
Overhead $600,000 $1,200,000 $1,800,000 $1,800,000 $1,800,000
Depreciation $250,000 $500,000 $750,000 $750,000 $750,000
Marketing $200,000 $400,000 $600,000 $600,000 $600,000
Variable cost $200,000 $400,000 $600,000 $600,000 $600,000
Total costs $1,250,000 $2,500,000 $3,750,000 $3,750,000 $3,750,000
Note: Revenues in US dollars

Exhibit 10

Table E7 Pakistan selected socio-cultural indicators

1990 1995 2000 2002

Pakistan socio-cultural indicators

Human development index 0.444 0.473 0 0.497
Literacy total 35.38 39.31 43 50 (04)
Female literacy to total literacy 20.15 29 (01-2) 36 (04)
Women % of workforce 24 26.3 28.6 29.5
Primary school enrollment 60.74 68.58 73.19 86 (04-5)
% Female primary school pupils 32.22 39.25 NA NA
% Urban population 30.57 31.82 33.1 33.78
Pakistan economic indicators
GNI per capita (Atlas method) current US$ 390 490 450 20
GNI per capita (PPP) current international US$ 1,320 1,660 1,880 1,960
Real GDP growth (%) US$ 450 498 518 521
Real GDP per capita (US$) 1.84 2.41 1.78 0.4
Unemployment % (estimates) 3.1 5.4 7.8 8.3
Source: PIHS 2001-2002; PSLM Survey 2004-2005; http://gis.emro.who.int/HealthSystemObservatory/
PDF/Pakistan/Socioeconimic%20factors.pdf; Center for Research on Poverty Reduction & Income
Distribution5/20/2014 PRSP 2003; www.healthierpakistan.com/statistics/socioeconomic-
indicators-of-pakistan/; www.pbs.gov.pk/node/340

VOL. 4 NO. 8 2014 EMERALD EMERGING MARKETS CASE STUDIES PAGE 21

 Exhibit 11

Table E8 Break-even and ROI analysis

Year 1 2 3 4 5

Revenues
Membership $45,000 $90,000 $135,000 $180,000 $270,000
Flight revenues $125,000 $412,500 $900,000 $1,750,000 $3,000,000
Total revenue $170,000 $502,500 $1,035,000 $1,930,000 $3,270,000
Costs (1 aircraft) (2 aircraft) (3 aircraft) (3 aircraft) (3 aircraft)
Overhead $600,000 $1,200,000 $1,800,000 $1,800,000 $1,800,000
Depreciation $250,000 $500,000 $750,000 $750,000 $750,000
Marketing $200,000 $400,000 $600,000 $600,000 $600,000
Variable cost $200,000 $400,000 $600,000 $600,000 $600,000
Total costs $1,250,000 $2,500,000 $3,750,000 $3,750,000 $3,750,000
CM ($1,080,000) ($1,997,500) ($2,715,000) ($1,820,000) ($480,000)
Carried over (Loss) ($1,080,000) ($3,077,500) ($5,792,500) ($7,612,500)
Cumulative CM (CCM) ($1,080,000) ($3,077,500) ($5,792,500) ($7,612,500) ($8,092,500)
Investment $2,500,000 $2,500,000 $2,500,000 $0 $0
Cumulative investment (CI) $2,500,000 $5,000,000 $7,500,000 $7,500,000 $7,500,000
Depreciation $250,000 $500,000 $750,000 $750,000 $750,000
Net investment (NI) $2,250,000 $4,500,000 $6,750,000 $6,750,000 $6,750,000
ROI
CM/NI (Annual) ⫺48% ⫺44% ⫺40% ⫺27% ⫺7%
CCM/NI (Cumulative) ⫺43% ⫺62% ⫺77% ⫺102% ⫺108%
Break-even sales in dollars ⫽ [Fixed cost/1–(Variable cost/sales)]
Fixed costs $850,000 $1,700,000 $2,550,000 $2,550,000 $2,550,000
Variable costs $400,000 $800,000 $1,200,000 $1,200,000 $1,200,000
BE sales ⫺$628,261 ⫺$2,871,429 ⫺$15,995,455 $6,741,781 $4,028,261

About the author

Yasmin Zafar, Assistant Professor in Marketing, has over 25 years’ experience in service
marketing and academic teaching, including developing and managing curricula and audit
of business administration programs at graduate and undergraduate levels. She has
convened the First International Marketing Conference in Pakistan in 2012 and is the sitting
convener for IBAICM 2014. She is a loyal advocate of the case teaching pedagogy with a
special interest in writing cases on marketing issues. Yasmin Zafar can be contacted at:
yzafar@iba.edu.pk

PAGE 22 EMERALD EMERGING MARKETS CASE STUDIES VOL. 4 NO. 8 2014