In this issue, you will find:
From the Chairman's Desk
Marketing Mantra for Franchises: A Cost-Ef fective ApproachFran Buzz
Fran Buzz
Events
Hot Opportunity of the Month: IFA Membership
Case Study
Exclusive Interview : Leena Mogre on her Signature Brand of fitness centres “ Leena Mogre's – Specialized Fitness Centre”
About Us: Fran Recruit- Fran training
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for franchises
Marketing Mantra
MAYISSUE
FROM THE CHAIRMAN'S DESK
Gaurav Marya
Dear Friends,
Since last one year IFA's Newsletter- Fra(n)ews is trying to
serve you at its best by bringing out new and updated
insights of the franchising industry. With Fra(n)ews, we aim
to bring forth the latest developments taking place in the
franchise sector, thereby increasing awareness in the
franchise community. This newsletter would also act as a
platform for all the start-ups as well as established brands,
to showcase the business potential and seek potential
franchisee's attention.
It would be the great pleasure of Fra(n)ews in successfully
disseminating franchise knowledge to the entire franchise
fraternity. In addition, I strongly believe that it would assist
franchisors in reaching out to their potential investors, and
in turn aid the aspiring entrepreneurs to get their desired
brands.
Gaurav MaryaChairmanIndian Franchise Association (IFA)
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MARKETING MANTRA- FOR FRANCHISES A COST-EFFECTIVE APPROACH
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Franchises have always enjoyed the privilege of brand
awareness as consumers are more inclined towards
associating with a company that is in the buzz, popular and
familiar. Most franchises have a well established corporate
image in addition to customer brand awareness.
Franchises have already created logos along with
advertising that is linked to their name. Therefore, as
franchisees join the organization it is easier for them to
obtain and retain customers.
Most franchisors have comprehensive marketing plans in
place for the overall franchise. Therefore brand recognition
is widely established. However, Franchisors that do not
manage marketing on a national level usually provide an
outline for the franchisees to follow in preparing their
marketing plan on a local level.
As already stated, a strategic plan for brand awareness is Potential franchisees may wish to determine what
provided to the franchisees from a corporate level. The resources the franchisor has in place to assist them in
course of action needs to be strong and flexible enough to implementing community relations programs in their local
be successful in each local market. The franchisees can areas. The combination of corporate and local image is
then adapt the plan to their areas. likely to bring about quite a successful venture.
It's easy for franchisors and franchisees to place added
emphasis on technology to market their services and
products. If mobile websites are added to the mix, these
tools can be very effective ways to reach existing and new
customers. However, it's important to remember that
social media tools are not a sole substitute for good old
fashioned face to face sales building programs. Social
media can support and complement more traditional
marketing. A benefit of a franchise is having access to the
experience, support and expertise of the franchisor.
However, franchisees should be aware of how to market
and combine their skills with the support of the franchisor.
ADD CORPORATE AND LOCAL FLAVORS TO YOUR MARKETING PLAN
£ £
£
£
£
Know your competitors. Successful businesses Establish your marketing tools to reach your
areaware of their competitors and keep them on target. Use your franchise system tools and
the radar screen. Do an objective analysis to other resources to identify the best method for
match up your s t r e n g t h s a n d w e a k n e s s e s reaching your target market.
versus your key competitors.Capitalize on your strengths. Consider your key
Define and identify your target market. It is strengths and let them become the keys to your
important that franchisees know the types of sale strategy.
customers andtheir specif ic needs in their Don't be reluctant to get some expert advice. particular locations. Demographics and culture Speak to o ther f ranch ise es to ga in the i r should always be taken into careful Consideration.feedback and input for marketing.
MARKETING MANTRA- FOR FRANCHISES A COST-EFFECTIVE APPROACH
04
£ £
£
£
£
Partner up with a complementary business. Create a buzz around your franchise in social
Identify non-compet i t i ve bus inesses o r media (Facebook, Twitter) if the demographic
franchisees that you can m a r k e t w i t h o n a target market comprise of youth.
collaborative basis.These are some of the ways to market your
Get involved in the community. Participate in franchise. Technology can be a great way to
business, trade associations and charitable reach new customers; however, it 's not the
groups to gain exposure and visibility in your only way. A well proportionate blend of seasoned
market area. marketing tactics, innovations, technology
c o m b i n e d w i t h c o r p o r a t e a n d l o c a l Use a newsletter. The cost is very low to flavors of the market can help you formulate publish a newsletter. your Franchise marketing plan ensuring success.
____
Here is a Strategy for Marketing your Franchise for New Sales Without Incurring a Great Deal of Cost
Inexpensive Marketing Tools
twittertwitter
Hospitality SectorGolden Tulip (Netherlands) to Open 50 Hotels in India by 2015
Golden Tulip chain of Hotels which operates in the 3-star and 4-star categories
plans to set up 50 hotels across India by the end of 2015. These hotels would
be either completely owned by the company or set up through the franchisee
route. The company, operating nine hotels in the country, will invest close to
$100 million (approximately Rs 500 crore) over the next two years.
According to Mr Vimal J. Singh, Managing Director, Louvre Hotels and Golden
Tulip, South Asia, the company has already invested $50 million (approx Rs
250 crore) over the last four years. The company plans to add 12 more hotels
by year-end
“The 50 hotels that we plan to establish here will mostly be through
management contract: we provide the brand and the expertise while our
partners own them. However, we also have plans to make direct investments
in some hotels here,” Mr Singh said.
The company also announced its first foray in the eastern region with the
opening up of Tulip Inn in association with Shiraz Hotels Pvt Ltd.
Beauty, Healthcare and WellnessJawed Habib Hair and Beauty salon on expansion mode. Jawed Habib Hair and Beauty Ltd, the salon chain controlled by
celebrated hair stylist Jawed Habib is set to increase the number of
salons from the current 312 to 5,000 in the next five years.
The move is significant, given especially the fact that Jawed Habib is
the only salon with the massive national footprint. Much of the
industry is still dominated by unorganized players.
The model which functions on a franchisee basis will require an
investment of ̀ 40 crores to fund the manpower training.
“We are basically looking to ensure we capture the complete market
before any other organised player is able to make a mark,” said Rohit
Arora, executive director, Jawed Habib.
Habib currently employs about 1800 people, across the salons. This
number is set to go up to almost 25,000 people once the expansion
bears fruition.
Also, salon is set now to foray into products along with lines of what
the now famous product lines like L'oreal have done. According to
Arora, margins on sale of products would be almost triple that of
services.
“Salons such as Lakmé and L'Oreal have moved from products to
services. We will have the advantage of transitioning from services to
products,” Arora explained further.
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FRAN BUZZ
“investment close to $100 million (approximately ` 500 crore)”
“312 to 5,000 Salons in the next
five years”
Leisure, Travel and Tourism Thomas Cook launches five new partner outlets.
Thomas Cook (India) has recently launched five new partner outlets
expanding its reach across the country.
These franchisee outlets cover a diversity of socio-economic markets,
including Mumbai and Ahmednagar in Maharashtra, Gulbarga in Karnataka,
Allahabad in Uttar Pradesh and Pondicherry, the company said in a release
issued here.
"In keeping with our vision to expand our distribution network across India,
we have implemented our expansion strategy via opening five new Gold
Circle Partner outlets in the first quarter of 2012," TCIL COO Leisure Travel
(Outbound), Madhav Pai said.
The company sees a large potential customer base in these cities and these
outlets will provide all travel-related services.
"While we will continue our expansion in the Tier I and Tier II cities of India, our
focus will be strong on the emerging Tier III markets like Ahmednagar and
Gulbarga, and tap into the growth potential of these cities," Pai said.
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FRAN BUZZ
“Five new Gold Circle Partner
outlets”
EVENTS
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Franchise & Retail Organization 2012 has served as a for starting a small business, transforming from a business
perfect platform to showcase the most preferred and most owner to a business organization. Views and inputs on this
potential brands in franchise, retail and SME sector and the issue were elaborated by dignitaries like Shri Sukhendu
various business opportunities in Chennai, Hyderabad Bikash Ghosh, President, Federation of Association of
and Jaipur. FRO 2012 has also been eulogized in main Cottage And Small Industries, Shri Prahlad Goenka,
stream media in each of these cities for enabling increased Chairman, Onkar Group, Mr. B Hari President TiE Kolkata,
sales, business expansion of franchises, assistance to MD Ontrack Systems, Prof. Anjan Raichaudhari Faculty,
entrepreneurs and most importantly helping the economy IIM-Kolkata and Mr. Arindam Dutta, HDF School of
with increased employment opportunities. Management. Current innovations and possible future
product developments evolution towards creating steel FRO 2012 Exhibition was recently organised in Kolkata on franchise, Creating readiness for starting a small business 21st – 22nd April 2012, to aid multiple categories of brands in fast fashion is the new retail model, business to penetrate the eastern market and also the SME owners opportunity in specialty/niche retailing & consumer of that region to expand their business pan India. FRO services, traditional debt funding vs. new age financing 2012 is an initiative of Franchise India Holdings Ltd which is (private equity and venture capital) for SMEs were some of supported by Indian Franchise Association. FRO 2012- the main highlights of the event. Apart from the seminars, Kolkata opened its forum with the subject of FRO2012-Kolkata provided networking avenues to the entrepreneurial development in India, creating readiness investors and prospective business entrepreneurs.
Indian Franchise Association (IFA), in association of The occasion witnessed eminent speakers sharing their
Franchise India Holdings Ltd, organised the 2nd National thoughts on issues centered around educational growth
Convention on Business of Education, Indian Education strategy of the 13th Plan, contribution of technology in
Congress 2012. The two day conference, held on 28th - redefining education 21st century, building a serious
29th April 2012 at Hotel Claridges in Delhi, brought business case for early learning, creating vocational
together eminent thought leaders of the education sector, initiatives and building Global competency. Some of the
ministries of education, key representatives of educational dignitaries and speakers were Mr. Pawan Aggarwal,
institutes, academicians, policy makers along with Advisor (Higher Education), Planning commission, Govt.
investors and stakeholders of the education sector. of India, Dr. S.S Mantha, Chairman, AICTE, Mr. Vineet The event this year focused on moving beyond straight- Joshi, IAS, CBSE, Ms. Shobha Mishra Ghosh, Director- jacket the boundaries and reach out to the largest Education FICCI, Mr. Dilip Chenoy, CEO&M, National Skill education market. Mr. Gaurav Marya, the President of Development Corporation, Mr. Shantanu Prakash, CMD, Franchise India expressed his thoughts on the importance Educomp Solutions Ltd. Etc.to creating an interactive learning environment in our newly The prestigious Indian Education Awards 2012 which
globalized society. In this regard, he said, “Ensuring felicitate achievers, innovators were presented across 24
borderless literacy by bringing world education in India categories were conferred to prominent individuals who
through FDI route would be the answer to the imaged have made significant contribution for educational
futures of the Indian students looking to imbibe global uplif tment of India.
academics at home ground.”
FRO 2012 – Kolkata
Indian Education Congress 2012
4.Interviewer: What kind of training and support do you offer to a franchisee?
Leena Mogre:In a candid interview with Leena Mogre, the most prominent Indian name to reckon with in the fitness industry talking about her own Signature Brand of fitness centre “ Leena Mogre's – Specialized Fitness Centre “. Here is the complete chat transcript.
1.Interviewer: What are the most pivotal moments in 5.Interviewer: What are the attributes that you look your career when you decided to come up with your own forward to in your franchisees?Signature Brand of fitness centre “ Leena Mogre's –
Specialized Fitness Centre “?Leena Mogre:
Leena Mogre:
6.Interviewer: What is your company's expansion plan in this fiscal year?
Leena Mogre:
7.Interviewer: In the health and lifestyle industry, global fitness giants are entering the Indian market. What are the core competencies of your brand that you feel will 2.Interviewer: What are the core competencies of your offer tough competition to your competitors?business?
Leena Mogre:Leena Mogre:
8. Interviewer: What is your mantra for success?
Leena Mogre:
9.Interviewer: What is your contribution towards 3.Interviewer: When and why did you opt for franchise “Corporate Social Responsibility”.business model?
Leena Mogre: Leena Mogre:
funds for investment but partnering with the right kind of people will ascer tain your franchise success.
We make sure that our franchisees are an extension of our brand, who deliver the exact quality and service that we have been offering to our clients. So, we offer them brand support along with full assistance pertaining to HR, operational and training support from us. Apart them this, we also set up sales, presales and sales training, marketing tie ups and marketing strategies tailored for the specific location.
Passion for fitness, hard work, dedication and most importantly a will to take the industry ahead. Well, being the first female personal
trainer of the country, facilitating fitness to the best of Bollywood stars, models to setting up gyms in India and making money for others, I decided it was time to set up my own venture. And since, everyone knew me as Leena
Our plan is to launch 6 more franchises Mogre, it was a natural choice to name it “Leena Mogre's across India this year.-Specialized Fitness Centre” and position my venture as
a fitness hub, latest in knowledge and technology with the best trainers.
Our Core competency lies the proficiency Being a fitness expert myself, I manage that we have gained over the years in understanding the Front End and my husband, Nikhil Mogre, an what Indians body types, the prerequisites and engineer with 30 years of corporate experience looks constraints and our expertise to handle it. Our expertise after projects, processes and Back-office. We are the on Indian body types along with latest equipment with an pioneers of fitness education in India and we train and international infrastructure gives us an edge above the certify trainers as fitness professionals. Our forte lies in new entrants in the market.the fitness assessments and customized fitness and
exercise schedules for all members 24 hours at required locations along with longer working hours at other locations 5am to 12 midnight. Our gym facilities have
Our motto is “Help members make state of the art equipments and an array of fitness fitness their lifestyle and make gym their second home”. programs to suit body types of every member.
Let's make our Nation fitter. Upholding our Our company is 5 years old and we commitment to CSR, we are already working with Young already have 2 franchisees and the results has been very Sportspersons and the Mumbai Police Department to good. Being a part of the service industry, this kind of make them understand the importance of fitness in business requires personal attention, and franchising is sports as well as in work respectively.the best option for expansion. So, to ensure that the
same level of quality is maintained, selection of the right partner is extremely important. A lot of people have
EXCLUSIVE INTERVIEW
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Leena Mogre
CASE STUDY
Café Buddy's
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Café Buddy's is a Food & Beverages retail chain which is rapidly burgeoning in Delhi and NCR region, offering quality yet reasonably prices fast foods and beverages to the discerning modern consumer. It has been conceptualized as a QSR (Quick Service Restaurant) after calibrating the average Indian purchase choices, service and quality preference, brand awareness and service quality.
The chairman of Café Buddy's, Mr. P.K. Gupta, who has been a part of the food processing industry in India and abroad for almost 30 years, opines that the reason behind the magnanimous success of this venture is their expertise in the areas product development, sourcing practices, qualit y standards, service levels and standardized operating procedures in their business model. He further added that following their hymn "good food, good service and value for money", Café Buddy's have been able to created a proven track record of being a preferred choice for people of all age group.
Café Buddy is currently operating with 120 outlets predominantly in the Delhi & NCR region with a prominent presence in Delhi Metro and other high footfall locations. They have ambitious domestic plans for developing additional Master franchises for Metro cities. Plans are on the anvil to set up 500 more outlets to spread out and penetrate into various competitive markets in India. Cafe Buddy is looking at franchising model to realize its grand vision.
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ABOUT USFRAN RECRUIT- FRAN TRAINING
Salary structure after completion of 3 months courseRs.25000+free mobile SIM Card+Incentives on sales achieved (Minimum total of approx. Rs. 30,000)
Fee Structure:One time fee of Rs. 25,000
Venue:IFA campus, GK-1 , South Delhi
Course Duration:2 classes per week i.e. 24 classes in 3 months
Ashutosh Dikshit
Vice President, Indian Franchise Association,
Contact No: 08447732466, 01141731542/43/44.
Email: [email protected]
www.franchiseindia.org
BENEFITSæ Opportunity for Educated and unemployed individuals
æ Opportunity to first learn and then earn
æ Lifetime opportunity to join an Indian MNC
æ Direct Entry into the Management Cadre
æ 100% Job Guarantee after the completion of the course
Professional Certificate Course In Franchise Management