Franchising In International Marketing

An inspiring case study on Franchising of Dosa-Plaza

CONTENTS
Chapter 1 Introduction What is franchising Parties in franchising Chapter 2 Types of franchising Advantages & Disadvantages of franchising Chapter 3 Case study on franchising of Dosa- Plaza Introduction of Dosa- Plaza Success story of Dosa- Plaza Chapter 4 Franchising of Dosa-Plaza National Franchising of Dosa-Plaza International Franchising of Dosa- Plaza Chapter 5 News Articles on Dosa Plaza Chapter 6 Achievements of Dosa-Plaza Conclusion Bibliography

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

A brand identification A successful method of doing business A 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 .

DISADVANTAGES

The 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 STUDY ON PREM SAGAR DOSA PLAZA

INTRODUCTION
Dosa Plaza is 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 Vision To 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 Mission To 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

1990 Mr. Prem Ganapathy, a passionate cook and aspiring entrepreneur from Tamil Nadu, arrived at Mumbai took up a cooks job in a small restaurant.
1992 Mr. Ganpathy started an outlet serving south-Indian cuisine alongside a street in Navi Mumbai. 1992-1997 Mr. Ganapathy was joined by his brothers during this period. Mr. Ganapathy used to sell 10 15 variety of dosas in his menu. 1998 Prem 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 wellpolished open restaurant.

1999 Along 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.

2000

He 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.

2003
opened 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.

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

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

2012
Dosa 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 B (DINNING RESTAURANT) MODEL B

Franchise investment* 55 to 60 Lacs

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

400 - 600 sq. ft. - Kitchen and Counter ft. Stores, 800-1400 sq. ft - Dinning 100-200 sq.

Total area
1300 - 2200 sq. ft.
FRANCHISE FEES

12 lacs Royalty 8%

INTERNATIONAL FRANCHISING Model A (FOOD COURT-Express) MODEL A

Franchise investment* Property, Interior cost, *Equipments and other capital investments as per location.
MENU

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

600 sq. ft. - Kitchen and Counter 150 sq. ft. Stores Total area 750 sq. ft.
FRANCHISE FEES

$40,000 Royalty 8%

Model B (DINNING RESTAURANT)

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

MENU Variety of Dosa's, Idli & Wada's, South Indian meals, Veg. Pulav, Veg Biryani, Pav Bhaji, Punjabi Dishes, Indo-Chinese & Juices.
AREA 850 sq. ft. - Kitchen 200 sq. ft. Stores, 1650 sq. ft. Dinning Total area 2700 sq. ft. FRANCHISE FEES $40,000 Royalty 8%
*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-worldcuisine/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-Plaza http://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-oddjobs-vashi - The Economics Times, Amit Shanbaug, ET bureau feb 20, 2012, 02.00pm IST

http://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-worldcuisine/article1743294.ece - Dosa on worlds cuisine by Business Line News paper dated on 18 th 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)