Franchising In International Marketing

Franchising In International Marketing An inspiring case study on Franchising of Dosa-Plaza

CONTENTSChapter 1Introduction What is franchising Parties in franchising

Chapter 2 Types of franchisingAdvantages & Disadvantages of franchising

Chapter 3Case study on franchising of Dosa- PlazaIntroduction of Dosa- PlazaSuccess story of Dosa- Plaza

Chapter 4Franchising of Dosa-PlazaNational Franchising of Dosa-PlazaInternational Franchising of Dosa- Plaza

Chapter 5News Articles on Dosa Plaza

Chapter 6Achievements of Dosa-Plaza ConclusionBibliography

Introduction The popularity of franchising as a business model continues to grow. According to the British Franchise Association (BFA) the industry annual turnover is currently 13.4 billion with about 930 franchisor brands and businesses operating in the UK.

With growing economy, disposable income growth and increasing brand consciousness, a number of western brands are heading towards India through franchising. Associating with western brands can bring lot of business perspectives to the aspiring franchisees.

Also it is a very good opportunity for small budgeted firms to choose this method for expansion, as it is a cost effective method and allows its unique and isolated business to reach to a wider customer base. Case in point: DOSA PLAZA has expanded exponentially on a Global scale due to this format of business, and the future is only looking brighter for firms such as these, who can capitalize on such marketable ideas.

Contd.Franchising is a network of interdependent business relationships that allows a number of people to share:A brand identificationA successful method of doing businessA proven marketing and distribution system

In short, franchising is a strategic alliance between groups of people who have specific relationships and responsibilities with a common goal to dominate markets, i.e., to get and keep more customers than their competitors.

When you discover a franchisor who understands this relationship, you have a franchisor worth your consideration.

PARTIES IN FRANCHISING-FRANCHISOR (OWNS Trademark or Trade Name)

-FRANCHISEE (Uses Trademark or Trade Name)

IMPORTANT TERMS IN FRANCHISING

Business Format Franchise

Disclosure Statement

Franchise Franchise Agreement

Franchisee

Franchising

Franchisor

Product Distribution Franchise Business Royalty

Trademark TYPES OF FRANCHISING Historically, franchises have been generally categorized as "product and trade Name" franchises or "business format" franchises. Today, the real difference is that under the "product and trade name franchise, the franchisor is usually the manufacturer of a product, which it wholesales to the franchisee for resale.

There are two main types of franchises are as follows,

Product Distribution Franchise

Business format franchise

ADVANTAGES & DISADVANTAGES OF FRANCHISING ADVANTAGES

Getting into Business

Franchises offer important pre-opening support:

certain level of independence

Benefits of customer awareness .

Increased chance of Business success

Franchises offer ongoing support

DISADVANTAGESThe franchisee is not completely independent.

Procedures and restrictions

Initial franchise fee,

Ongoing royalties

Advertising fees.

A damaged, system-wide image

Limited term of franchise agreement

CASE STUDYON PREM SAGAR DOSA PLAZA

INTRODUCTION Dosa Plazais the sole runner in the category of south Indian cuisines that has gained popularity nationwide for its innovative approach and wide varieties of recipes. It has sailed different waves and seen different tides before achieving its current position - India's fastest growing food chain of south Indian cuisine.The company sees the current success as mere milestone in its never-ending journey of growth and improvement.

Our VisionTo become the leading brand serving traditional south Indian cuisine worldwide with an oriental and western taste, delivering quality food, efficient service and value for money.

Our MissionTo delight every guest visiting our restaurant by serving traditional homely food with a fresh creative approach in a clean, fun and friendly environment.

SUCCESS STORY OF DOSA PLAZA

1990Mr. Prem Ganapathy, a passionate cook and aspiring entrepreneur from Tamil Nadu, arrived at Mumbai took up a cooks job in a small restaurant.

1992Mr. Ganpathy started an outlet serving south-Indian cuisine alongside a street in Navi Mumbai.

1992-1997Mr. Ganapathy was joined by his brothers during this period. Mr. Ganapathy used to sell 10 15 variety of dosas in his menu.

1998Prem Sagar Dosa Plaza started off as one mans dream. Mr. Ganpathy, the man behind the creation of Indias only most popular venture for south-Indian cuisine, launched a well-polished open restaurant.

1999Along with his Dosa outlet he tried his luck by investing in a Chinese Restaurant in which he incurred a loss. But he tried Chinese cuisine in his dosas which worked very well he got passionate and invented variety of dosas with Chinese style like American Chopsuey, Schezwan Dosa, Paneer chilly, Spring roll dosa etc.By the year end, Dosa Plaza had fashioned 20-25 original varieties of dosas.

2000He made his Dosas popular by serving them complimentary to his customers which was eagerly accepted by his customers. The tremendous response he received from his customers inspired him to fashion many more original one-of-its-kind recipes. Dosa Plaza had already made its presence felt in the hearts of the food-lovers.By 2002, Dosa Plaza had 104 delicious varieties of dosas in its list.2003opened his first branch as Dosa Plaza in Shopping Mall with well furnished, well-polished Express model outlet with an International look and served healthy and nutritious dosas. Dosa Plaza gained popularity and was noticed by the media as an emerging trend amongst food-lovers. Dosa Plaza opened franchising offer rights started pouring in. During this year Mr. Ganapathy signed and opened his 1st franchise outlet at Thane, Wonder Mall.

2005Dosa Plaza opened outlets in 7 different locations of India like Inorbit Mall-Malad, R-Mall- Mulund, Sahara Mall-Lucknow etc. across India.

2007Dosa Plaza had established its outlets in 9 states of India and was spearing into the international market. With 23 outlet all over india

2012Dosa Plaza launches its 4th outlet in Middle East, having its presence in Muscat, Dubai & Sharjah.

By 2012 Dosa Plaza operates 45 outlets in India and 7 International Outlets in 3 Countries (UAE, OMAN & NEW ZEALAND). The companys strategy is to grow profitably by making each store self sustainable. The company will expand through franchise model in addition to opening its own stores.

Dosa Plaza is a member of Franchise Association of India (FAI), the association, FAI is the member association of the prestigious World franchise Council (WFC) from India. Dosa Plaza follows the Franchise Code of Conduct laid down by the Association.Franchising of Dosa-Plaza

NATIONAL FRANCHISING (In India)Model A (FOOD COURT-Express)

MODEL AFranchise investment*25 to 30 Lacs

MENU104 Types of Dosa's, South Indian meals, Pav Bhaji, Filter Coffee, Variety of Idli, Wada's.

AREA300 sq. ft. - Kitchen and Counter 100 sq. ft. StoresTotal area400 sq. ft.

FRANCHISE FEES8 lacsRoyalty8%

MODEL B (DINNING RESTAURANT)MODEL BFranchise investment*55 to 60 Lacs

MENU104 Types of Dosa's, South Indian meals, Variety of Idli, Wada's, Chinese, Punjabi Dishes, Pav Bhaji, Fresh Juices & Filter Coffee

AREA400 - 600 sq. ft. - Kitchen and Counter ft. Stores, 800-1400 sq. ft - Dinning 100-200 sq.Total area1300 - 2200 sq. ft.

FRANCHISE FEES12 lacsRoyalty8%

INTERNATIONAL FRANCHISING Model A (FOOD COURT-Express)

MODEL AFranchise investment*Property, Interior cost, *Equipments and other capital investments as per location.

MENUVariety of Dosa's, Idli & Wada's,South Indian meals, Veg. Pulav,Veg Biryani & Pav Bhaji, Chaat, Punjabi Dishes, Indo-Chinese & Juices.

AREA600 sq. ft. - Kitchen and Counter150 sq. ft. StoresTotal area750 sq. ft.

FRANCHISE FEES$40,000Royalty8%

Model B (DINNING RESTAURANT)

MODEL BFranchise investment*Property, Interior cost, *Equipments and other capital investments as per location.

MENUVariety of Dosa's, Idli & Wada's,South Indian meals, Veg. Pulav,Veg Biryani, Pav Bhaji, Punjabi Dishes, Indo-Chinese & Juices.

AREA850 sq. ft. - Kitchen 200 sq. ft. Stores, 1650 sq. ft. DinningTotal area2700 sq. ft.

FRANCHISE FEES$40,000Royalty8%

*Equipments that are not available locally can be shipped from India

NEWS ARTICLES

Business Line dated on 16th Aug 2006(Source:-http://www.thehindubusinessline.com/todays-paper/tp-marketing/dosa-now-on-world-cuisine/article1743294.ece )Business Standard dated on 23rd Aug 2006

Achievements of Dosa-Plaza

(RASHIMI BANSAL HAS COVERED DOSA PLAZAS SUCCESS STORY IN HER BOOK.)

Rashmi Bansal, co-founder of Just another magazine, is an author, a writer who has the fame of selling more than one lakh copies of her second -connect the dots. This book is about the entrepreneurs achievements of those who have not completed any masters in administration.

PREM GANAPATHY RECEIVING CONNECT THE DOTS BOOK FROM FORMER PRESIDENT OF INDIA DR.APJ ABDUL KALAM

PREM GANAPATHY RECEIVES A MEMENTO FROM STAR CRICKETER VIRENDER SEHWAG DURING THE MUMBAI FESTIVAL. 15th SEP 2010.

CONCLUSION

It is without doubt that franchise agreements facilitate entry of new firms and/or products and have efficiency enhancing benefits. Franchising is good for economic development and for ensuring that historically disadvantaged individuals and SMEs are able to participate in the mainstream economy.

The structure of franchising has a potential of creating collusion among competitors (franchisees) on price and market allocation and may also substantially lessen competition and cause harm to consumers.

While there are a lot of disadvantages in this line of industry, especially for the over-burdened Franchisee, but the amount of inflow of revenue and workforce increases to a substantial amount and also brings international standards into our industry.

While adopting franchising as a business model carries many perceived benefits, it also carries inherent risks.

Franchising requires the transfer of a degree of control over a companys brand , including the right to use business names, brand names, formatting styles, inventions, designs and essential products which have been developed by a franchisor.

India with globalization has emerged as one of the most potential countries in the world. The concept of franchising has become hugely popular in India as it has led to the rise of economic standards of the people and has provided job opportunities to the masses.

India estimates, the franchising industry is expected to quadruple between 2012 and 2017. This is also expected to create job opportunities (including both direct and indirect) for an additional 11 million people by 2017.

BIBLIOGRPAPHY

Connect the dot - A book authored by Rashmi Bansal http://www.dosaplaza.com/franchising.htm - Franchising of Dosa-Plazahttp://www.rediff.com/business/slide-show/slide-show-1-success-story-of-dosa-plaza/20100915.htm - Once a Penniless in Mumbai! Now a Crorepati by Rediff business http://articles.economictimes.indiatimes.com/2012-02-20/news/31079648_1_roadside-eateries-odd-jobs-vashi - The Economics Times, Amit Shanbaug, ET bureau feb 20, 2012, 02.00pm ISThttp://amritham99.wordpress.com/2011/11/03/dosa-plaza-success-story/ - Dosa-Plaza Success Story http://www.thehindubusinessline.com/todays-paper/tp-marketing/dosa-now-on-world-cuisine/article1743294.ece - Dosa on worlds cuisine by Business Line News paper dated on 18th Aug 2006.Pune News Line news paper dated on 18th Aug 2006

Thank you..!This Presentation is made by Ajay .K. Dhutawale . Mcom- II (Management ) Roll No. 106. L.S. Raheja College of Arts & Commerce , Juhu Road , Santacruz (w)