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

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£ £

£

£

£

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

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Membership form

HOT OPPORTUNITY OF THE MONTH

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: ashutosh.dikshit@franchiseindia.org

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