Indian Franchising Summit 2007: Intl franchise models and successful rural franchising elicit interest
The two-day Indian Franchising Summit 2007 had specialists in the business of franchising discussing at length the grave issues concerning the success of franchising at a more local level. Senior experts also highlighted the success stories of international franchise models.
The two-day Indian Franchising Summit 2007 had specialists in the business of franchising discussing at length the grave issues concerning the success of franchising at a more local level. Senior experts also highlighted the success stories of international franchise models.
The panel discussion on ‘Franchising Beyond Metros’ covered at length the growing need to tap the B and C class towns as a very lucrative market. Each of the panelists highlighted the topic with examples from their own business experiences. Ratan Jalan, CEO, Apollo Health and Lifestyle Ltd was the moderator for the discussion, while the other panelists comprised Ashutosh Garg, CMD, Guardian Pharmacy; Rohit Swarup, Director, Xplora Design Skool; and Rahul Munjal, MD, EasyBill.
“Metros account for just 20 per cent of the population in India. With real estate prices increasing, industries today are looking beyond metros. Airlines are also connecting to smaller towns. Every industry is now realising the potential that a B and C town has,” said Jalan, while giving the example of Guwahati, where many people did not have the outlets to spend. Therefore, their readiness to spend was much higher.
While talking about franchising in small towns, Munjal, who has created the successful model of easy financing through EasyBill, said, “Franchising is all about consistency and yet some aspects of the brand should be customised. Franchising in India is mostly seen in urban areas. India’s diversity raises the question about consistency versus customisation. The brand image and what it stands for should be consistent across. This includes the logo, service delivery, retail experiences and customer perception. At the same time, brands need to understand the necessity for being ‘glocal’, obey the laws of the land, and avoid standardisation to the extent that it becomes monotonous.”
While Garg elaborated how most pharma outlets were congested and offer spurious drugs, he said that the there had been no changes in the brand value of Guardian. “Our robust supply chain and our higher returns, due to lower real estate cost in smaller towns, works well for us. Besides, we are also appreciated for having been able to create careers for rural people.”
The audience appreciated the presentation made by Xplora’s Swarup as he brought forth his unique model of franchising vocational education. Interestingly, he owns just one out of their 103 centres, while the rest are on franchise. And the model has been working well enough for him.
“We understood that we needed to add value to the franchisee and the student, who are our customers. We look at education and have also projected it as something that builds character, and that which offers a career for a lifetime. Hence, price is not a factor here if the value proposition is correct, and people in small towns are ready to pay the fees at our centres, the amount of which is similar to any institution in a big city,” Swarup said.
His success story lies in ‘flanking’, which is, growing silently without competitors knowing about them.
“Every year, we review our curriculum according to the industry needs and make it standard across all our 103 centres. In small towns, seeing is believing and news spread through word-of-mouth. Hence, advertising has little to do with publicity there,” he added.
The panel titled ‘Learning from International Franchising Experiences’ was moderated by Yogesh Kocchar of Tata Teleservices. The panel members comprised Alan Branch, VP-Franchise Partner, Donaldson Walsh, and VP, Franchise Council of Australia; David Koch, Senior Partner, Wiley, Reid & Fielding, USA; Sunial Dewan, Franchise Consultant, USA; Pattabhi Ramarao, President, Australian Foods India Pvt. Ltd (Cookieman India); and Gian Mario Migliaccio, CEO, infofranchise.in.
While Kocchar explained how franchising came through evocating economics of scale and scope, Branch elaborated that in his native country Australia, over 40 per cent franchisors encouraged multi-unit ownership. While it is essential to assess the cultural differences among geographies, it is important to question whether the franchise system is operating successfully in the home country.
“There is utmost need for coordination and flexibility in the relationship between a franchisor and the franchisee for the successfully functioning of the franchisee,” said Koch, as he elucidated his key point with varied examples. Pattabhi explained how he opened the first Cookieman store in Chennai, when the city was touted to be the most conservative metro.
“We have changed the model of doing business, by introducing Cookieman Kiosks and Cookieman Express, as we though it would suit best at a certain place,” he said. “We do not look out for franchisees, we look out for partners. Anyone wanting to be our franchisee has to work with us, and then after passing three tests, the person has to give an online psychoanalysis test so that we can check the person’s mental framework for being able to do business with us. Also, when international players come to India, they miscalculate that the population size will translate into sales with similar high figures. This is where they often go wrong,” he explained.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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ShareSwapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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