Using China Business Strategy To Grow Business In India: Adopting Different Country Learnings

With the world globalizing and inter-country collobaration is on its highest ever there are learnings that are transfered from one region to the other.When multinational brands entered and tried to conquer market share in the Middle Kingdom 20 years ago, they encountered the same problems they face in India now – how does one market effectively to such a diverse market, where statistics are unreliable and tastes change often, yet sell in a value driven economy? In lieu of encountering a similar market in the same region with alike issues, many companies are replicating best management practices adopted successfully in China in the Indian market.

With economic and cultural similarities and purchasing decisions aligned, marketing managers across multinational companies are bringing their best marketing and distribution ideas tried and tested in China to India.  Take Coca Cola for example, known for its revolutionary, fierce and strong branding, the company recently asked its independent franchisee bottlers in India to weigh a new distribution and manufacturing model it follows in China. The new model involves pooling investments and setting up common manufacturing capacities, and would mainly be for non-carbonated drinks. The Atlanta-based beverage maker’s top brass discussed benefits of shared resources and pooling investments with its franchisee bottlers last month in Shanghai, China

Under the proposal, independent bottlers would split their investments and share the returns equally among themselves. As bottling investments take about five-six years to bring returns, the move would help the bottlers in freeing large amount of money, a model that is expected to work in nations like China and India where distribution of aerated drinks in a problem and large investments are hard to come by.

Hence it is interested to see how these new strategies define the way businesses are transacted in the coming times in these developing countries and how these business expansion strategies, will unfold in the coming times.

Tags:Business Strategy, Expand Business, Grow Business, Business Consultants, franchise consultants, how to expand business, business expansion strategies, franchise recruitment, franchise development,

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Pavers Sets Strong Ambitions For Franchise Cum Own Stores growth strategy

UK footwear retailer Pavers eyes larger India presence

The prospect of selling more shoes in an emerging market of India’s size is driving international footwear retailers to this part of the globe. Some of them are inking joint venture agreements with leading retailers, such as Clark’s of the UK with the Future Group. Others, such as Crocs of the US, have already had a headstart by launching operations in the country a few years ago.

Some others are fine tuning their presence here in anticipation of the competition. Such as Pavers, a leading British footwear retailer. It has over 100 stores in England and Ireland. In India, where it has been present since 2008 via a joint venture with a UK-based shipping and oil drilling firm called Foresight, its footprint has been restricted to five franchisee stores and 90 department stores and multi-brand outlets.

This, says, Pavers’ managing director Stuart Paver, is hardly enough in a steadily growing market. The branded footwear market is estimated to be Rs 4,500 crore in size. It is growing at a steady 20 per cent yearly. This is tempting enough for both national and international majors to make a beeline. Existing domestic footwear firms such as Bata, Liberty, Relaxo and Metro, for instance, are expanding their network to take advantage of the boom.

Pavers, then, will have to act fast, says its MD, if it has to go anywhere in terms of matching the size and scale of operations of these companies.

“We will be adding another six franchisee stores in the next two months,” says Paver. “And, are contemplating to grow this model further. At the moment, we have tie-ups with three companies for franchisee operations - Triton Retail, RG Enterprises and Bansal Supermarket in Chennai, Bangalore and Delhi, respectively. These companies are willing to take their franchisee operations to allied parts of the country. That should help in our expansion drive in the future.”

Tags:pavers, clarks, crocs, Bata, liberty, relaxo, metro, franchisee stores, franchisee operations, franchise growth, franchise recruitment, footwear franchise,

Source:Business Standard, Viveat Susan Pinto, Mumbai May 10, 2010

India Domino's Fastest Growing Franchise Market.Celebrates 9000 Franchisees Worldwide.

New Delhi store part of Domino’s 9K celebration

ANN ARBOR, Mich. – Domino’s Pizza celebrated opening its 9,000 store with two symbolic openings earlier this year: one in New Delhi, India and the other in New Orleans.

Founded in 1960 and marking its 50th year in business, Domino's Pizza is the second largest pizza chain in the world and the company marked the opening of its 8,000th store in 2006 in similar fashion, with symbolic openings in Chicago, Ill., and in Panama City, Panama.

“For half a century, Domino’s Pizza has been able to grow and thrive thanks to the dedication and efforts of franchisees and team members the world over, as demonstrated by our franchisees in India and Louisiana,” said Domino’s Chief Executive Officer J. Patrick Doyle. “These are two of the largest and best franchise organizations in our system, and it’s appropriate that they are sharing in this distinction.

“Opening our 9,000th store is a great milestone,” Doyle added. “And we’re looking toward one of the goals we set some time ago: we want to clip the ribbon on our 10,000th store within the first half of this decade. We are looking forward to making that happen.”

Jubilant FoodWorks Ltd, the master franchisee for Domino’s Pizza in India, marked a milestone of its own with the opening of its store: it is the company’s 300th in that country. Doyle, along with Executive Vice President of Domino's Pizza International Michael Lawton and Executive Vice President of Communication & Investor Relations Lynn Liddle, joined master franchisee Hari Bhartia and Jubilant FoodWorks President Ajay Kaul and others at a ribbon-cutting ceremony, followed by a press conference and the donation of products to feed 4,500 underprivileged children in the local community of Pitampura, a residential neighborhood in north New Delhi.

Jubilant FoodWorks Ltd. is Domino's fastest-growing franchise, having opened approximately 65 stores in the last year.

“Today is a historical moment for Domino's Pizza India,” said Hari Bhartia, co-chairman of Jubilant FoodWorks. “We started our journey in India in 1996 with the opening of our first store in Delhi. With the opening of 300th store, we have come a long way in this fulfilling journey creating new milestones and benchmarks for ourselves and for the rest of QSR industry to follow. We have pioneered organized QSR and pizza retail in India. We also introduced and built the concept of home delivery in India. But we believe this is still the beginning as the Indian market has a very large potential.”

The New Orleans store was opened by RPM Pizza LLC, the company is Domino’s largest U.S. franchisee with 135 locations. The store was opened on Chef Menteur Highway, one of the areas decimated by Hurricane Katrina in 2005. The new free-standing store will be “hurricane ready” with generators, an extra-large cooler and the ability to reopen quickly to serve citizens of the community.

“Our franchise is closing in on its 30th anniversary and we have remained committed to being there when our communities need it most,” said Glenn Mueller, president of RPM Pizza. “We’ve always sought to have ours be the last restaurants to close and the first to open in times of great need. Opening a new store in this neighborhood is one more step toward rebuilding this great city. Domino's Pizza was the first chain to offer pizza delivery service and now Domino's is the first to service all areas of metro New Orleans.”

Mueller noted that RPM Pizza plans to hire nearly 100 additional employees throughout the New Orleans area.

Founded in 1960 and headquartered in Ann Arbor, Mich., Domino’s Pizza operates a network of 9,000 franchised and company-owned stores in the United States and over 60 international markets. The Domino's Pizza had global retail sales of over $5.6 billion in 2009, comprised of nearly $3.1 billion domestically and over $2.5 billion internationally.

Source:Indus News Wire

Tags:Domino's, Dominos, Pizza Franchise, Fast Food Franchise, Mexican Restaurant Franchise, best franchise, Master Franchise, franchise chain, franchise expansion, franchise recruitment.