Franchise marketing strategies Archives - Page 5 of 6 - Franchise Consultants In India, How To Franchise Your Business Experts.

12June2023

How Effective Franchise Management Can Help in business growth in India.

Written by Sparkleminds

Franchise Management – is a term you would have frequently heard of when you plan to expand your business in India. But, how effective will franchise management be in terms of the long-term growth of your business?

Our blog is a complete guide on Franchise Management tips for the long-term growth of your business, how to grow your business in India with proper franchise management, and how effective management can play a crucial role in your business growth. So let us get started.

Franchise Management – Definition, Tips, and How to Use Franchise Management for business growth in India

The term “franchise management” is used to describe the methodical and calculated expansion of a successful business in India via the launch and maintenance of local franchises.

To do this, a franchisor must create and sustain a robust franchise system that franchisees may use to start and operate their own businesses under the franchise’s name and with the help of the franchisor’s tried-and-true methods and infrastructure.

Franchise management includes many components and processes vital to a company’s growth and expansion in India.

Here are the key elements of Franchise Management.

1. Franchise Development

This necessitates the development of a thorough franchising programme that specifies all relevant parameters for prospective franchisees. The process involves creating the criteria for choosing and assessing franchisees, as well as the target market, franchise fee, and royalty structure.

2. Branding & Marketing

Managing a franchise in India entails promoting the business in many locations around the country while preserving a consistent image for the brand. To do so, businesses must produce promotional products, launch promotional programmes, and utilize digital marketing channels.

3. Ongoing Support to the other party

Franchisees need thorough training on the company’s operations, procedures, and expectations for customer care before they can open for business. Managing a franchise necessitates developing and executing extensive training programmes for franchisees and their employees. Franchisees need consistent backup in the form of regular contact, site visits, and help with operational difficulties.

4. SOPs

For the sake of the brand’s reputation, consistency is essential. Franchise management entails creating and enforcing rules and regulations that franchisees must follow. Among these include developing standardized processes and systems and ensuring compliance with legal and regulatory mandates.

5. Maintaining strong relations with the other parties

Successful franchise management relies heavily on the quality of the franchisor’s connections with its franchisees. Franchisees’ happiness and dedication to the franchise can be improved through consistent communication, responsiveness to franchisees’ problems and criticism, provision of chances for franchisees to network, and promotion of a feeling of community.

6. Expansion Plans

Finding new avenues for development and expansion in India is an integral part of franchise management. In order to keep up with the ever-changing tastes of consumers and the demands of the marketplace, franchises must constantly be on the lookout for new opportunities.

7. Evaluation of Franchises

Franchise management entails monitoring and assessing the overall and local franchisee performance. As part of this process, we analyze KPIs, examine franchisees’ financials, and offer suggestions for how they may best run their businesses so that they, too, can be successful.

In short, Franchise management may leverage franchisees’ entrepreneurial energy and local market experience to expand successfully in India, all while preserving brand consistency and quality standards, if it efficiently manages these factors.

Franchise management is a multifaceted profession that demands forethought, open lines of communication, creative problem-solving, and flexibility. By emphasizing these factors, you may propel the sustainable expansion of your franchise in India.

10 Effective Franchise Management Tips for Long-Term Business Growth in India

Here are some tips which can help you make franchise management useful for the long-term growth of your business.

1. Choose the Right Franchise Model for your Business

Choose a franchise model that can thrive in the Indian market over time. Think about things like market need, competition, scalability, and cultural significance.

2. Market Analysis

First, you need to do some market research to figure out who you’re trying to sell to, what they want to buy, and what the current market trends are. Having this knowledge will aid you in adapting your offerings to the preferences of the Indian market.

3. Foster a strong Franchise Network

First, you need to do some market research to determine whom you’re trying to sell to, what they want to buy, and the current market trends. Having this knowledge will aid you in adapting your offerings to the preferences of the Indian market.

4. Create Marketing Strategies to connect with the local audience

India is a multicultural country with a wide range of regional traditions and customs. Change up your offerings and advertising to better suit the local market. This could entail making adjustments to your products, marketing, and branding so that they better connect with consumers in specific geographies.

5. Consistency across the Franchise Network

Maintaining a steady level of quality in your goods or services is essential to gaining and keeping satisfied customers. To guarantee that all franchise locations uphold the necessary standards, SOPs, quality control mechanisms, and routine audits should be put into place. Hold regular training sessions to ensure uniformity in your franchise system.

6. Adapt new Technology and Innovations

Use technology to your advantage to boost productivity, delight customers, and reduce costs. Try out some digital advertising techniques, online ordering systems, and mobile apps to get closer to your clientele and stay ahead of the curve. Franchisees’ productivity and relationships with their customers can benefit from franchisees’ use of technology-driven solutions.

7. Evaluation and Refining your strategies on a regular basis

It’s important to evaluate your franchise system’s success on a consistent basis, keep tabs on market shifts, and adjust your tactics accordingly. Listen to your clients, franchisees, and staff to learn where you can make changes and discoveries. Maintain nimbleness and adaptability to meet the ever-changing demands of the market and your customers.

8. Monitor the Financial Performance of your franchise network

Keep close tabs on how well your franchise system is doing financially. Keep an eye on revenue, profit, and return on investment (ROI) as some KPIs. Franchisees will flourish and thrive with your help as they navigate the financial waters.

9. Create an Effective Marketing Plan

Establish your brand as a dominant player in your industry with strategic branding and marketing. Put money into both online and offline promotional strategies including social media, SEO, traditional media, and community outreach. Make sure all of your brand’s messages and visuals are consistent with one another.

10. Be aware of the legal and regulatory framework in the country

Learn the ins and outs of the franchise industry’s legal and regulatory framework in India. Franchisee agreements, contracts, and business procedures must be in line with local rules. If you need help navigating a legal system, consulting an attorney’s a good idea.

How Effective Franchise Management Plays a Crucial Role in Business Growth

Here are some several ways that franchise management can help in business growth in India.

It ensures uniformity throughout all franchised businesses so that customers always get the same high-quality experience regardless of where they choose to shop. This uniformity builds consumer trust in the brand, which in turn increases customer loyalty and fuels expansion.
This ensures that franchisees are able to successfully implement the business model by giving them direction, resources, and training. The ability to scale allows for deeper market penetration and more lucrative outcomes.
To better meet the needs of customers in different areas, businesses might benefit from sharing market statistics through franchise management. This regionalized strategy has the potential to boost client retention and acquisition costs.
With effective franchise management, expansion risks are mitigated and success is maximized through careful selection of franchisees, thorough training, and consistent support.
It’s essential in establishing and sustaining an overall brand identity, rolling out promotional campaigns, and policing franchisee adherence to brand standards. With a strong reputation, consumers are more likely to buy from and support a company, leading to expansion.
It enables companies to take advantage of economies of scale via consolidated purchasing, pooled resources, and joint advertising campaigns. Franchisors can raise profits, cut expenses, and reinvest the gains in growth if they pool their purchasing power and negotiate better agreements. Saving money in this way helps a company expand.
Through consistent encouragement, instruction, and rewards, it channels entrepreneurs’ innate passion to become business owners. This leads to a franchise system that is enthusiastic about its work and eager to increase revenue and brand awareness.

In short, successful franchise management in India can boost profits by facilitating standardization, scalability, local market experience, risk sharing, brand creation, economies of scale, and the use of franchisees’ ingenuity and initiative. To reap the full benefits of franchising and power long-term expansion, solid franchise management systems and practices are needed.

How to grow your business in India with proper Franchise Management – Key Takeaways

Understanding the Indian market.
Developing an appropriate Franchise Strategy
Have a strong franchise network.
Comply with legal and regulatory requirements
Adapt to local requirements
Effective marketing campaigns and strategies
Maintaining consistency and ensuring Quality control across the board.
Continuous innovation and adapting to customer requirements

Conclusion,

To achieve sustainable growth and success, franchise management in India necessitates meticulous preparation and execution. Contact us at Sparkleminds to know more about effective franchise management and how to grow your franchise business in India.

07June2023

How to determine if your business is franchisable?

Written by Sparkleminds

It takes careful consideration of a number of elements to establish whether or not a firm is franchisable in India. Despite the fact that no two businesses are alike, you can take some measures to determine your business’s potential for franchisability.

Our blog will take you through insights into how to determine if your business is franchisable, steps to franchise your business in India, how to make your business franchisable in India, and more.

Do You Have a Franchisable Business in India?

If you have a successful business and think it is the right time to expand your business in India, there are some key factors to consider which will help you decide if you have a business that is franchisable in India.

9 Crucial Steps to Assess the franchise potential of your business in India.

1. Business Model Evaluation

Consider whether your business model can be easily copied into other settings. Franchises are popular because they offer a tried-and-true business model that can be easily adopted by new owners. Check to see if your company has well-defined procedures, detailed how-to guides, and a proven track record.

2. Conduct a thorough Market Analysis

You need to do a thorough market analysis of the potential and demand for your business in various parts of India. Determine buyers’ availability and the competition’s strength for your goods and services. Think about the tastes of potential customers, the makeup of the general population, the state of the economy, and the influence of local culture.

3. Costs & Benefits of Franchising

Consider the costs and benefits of franchising to see if your firm is ready to expand. Find out how much money you’ll need to get started, how much it will cost you monthly, and how much you could make. Evaluate the franchise model’s potential profitability, considering the franchisor’s and franchisee’s fees and royalties.

4. IP Protection

Think about whether or not your company has any distinctive intellectual property that could be licensed or patented. Protecting one’s intellectual property is essential to any successful franchise system’s upkeep of brand integrity and recognition. Protect your company’s interests by conferring with a lawyer who specializes in intellectual property law.

5. Scalability & Replicability

Think about how simple it would be to expand your company to new places. Determine if your company strategy can be taught to franchisees in a simple and repeatable format. Franchise growth relies heavily on franchisees’ ability to successfully reproduce the business.

6. Consider the Legal & Regulatory Framework

Learn about the franchise system’s rules and regulations in India. Get familiar with the Franchise Agreement, the Franchise Disclosure Document (FDD), and other relevant legal documents. Consult a lawyer for help with franchise agreement drafting and regulatory compliance.

7. Adequate support and training provision

Evaluate your company’s capacity to offer franchisees satisfactory training and ongoing support. Franchisees look to the franchisor for direction, assistance in running the business, and regular training and education. Determine if your company has the resources to create in-depth training programmes and sustain a commitment to its franchisees’ success.

8. Brand Strength and Market Recognition

Think about how popular your brand is and how well-known it is. Potential franchisees and customers can be enticed by a well-known and respected brand. Determine if your company has established a reputable brand name that can be used to win over franchisees and win the trust of customers.

9. Consider Pilot Testing your Business

One viable option for testing the viability of your business concept in multiple markets is to launch a small number of company-owned stores in a variety of locations. Collect information, analyse results, and make any necessary revisions before deciding to expand into a new franchise area.

Nonetheless, Consult with professionals like franchise consultants, lawyers, and industry specialists who are conversant with the franchise business in India. They can assist you figure out if your business is franchisable and guide you through the franchising process.

Is Your Business Franchisable in India?

Companies typically decide to start franchise businesses due to one of three resource constraints: cash, personnel, or time. Let us understand in detail how these three challenges can help you decide if your business is franchisable.

Challenge #1: Lack of capital funding

Today’s entrepreneurs face a significant challenge when trying to grow their businesses: a shortage of funding. Furthermore, companies can grow through franchising with little to no debt or equity expense.

Because franchisees front the money for the business’s expansion at the local level, franchising reduces the burden on the parent company’s coffers.

Challenge #2: Manpower

The second challenge to growth is the difficulty in recruiting and maintaining capable unit managers. Business owners regularly spend months on finding and training a new manager, only to have them quit or, worse, be poached by a rival company.

Many of these challenges can be surmounted through franchising since an inspired franchisee can replace a traditional unit manager.

Since the franchisor receives payment regardless of whether the franchisee is profitable, it is much easier to track spending at the store level.

Challenge #3: Time

Last but not least, it takes time to open a second site. Seek out locations. Do lease negotiations. Make plans for the design and construction. Safeguard the funding. Recruit new workers and provide them with the necessary training. Get some new tools and supplies.

Because of this, the rate at which new units can be opened is directly proportional to the time invested in doing it correctly.

Companies that are short on time (or on manpower) may find that franchising is the quickest route to expansion. This is due to the franchisee’s role as the primary driver of expansion activities.

Indicators to look out for to determine if your business is Franchise-Ready

The prospect of franchising your business to reach a wider audience is appealing, but only if your company is prepared to take on the challenge. There are various indicators that can help you decide if it’s time to franchise your business in India.

Key Indicators are:

Do you have an established business model – Your company needs to use a tried-and-true business model. It needs to be successful financially and demonstrate a history of steady expansion. Potential franchisees looking for security and financial success will be attracted to this.
Is your brand well-recognized – The success of a franchise model depends on the strength of the brand. Potential franchisees will be more interested in investing in your company if it has established brand recognition, high customer loyalty, and a solid track record. Invest the time and energy necessary to build brand equity in the Indian market to ensure your product or service is well-known and valued there.
Is your business Scalable –To be successful as a franchise, you need to be able to implement your business plan in multiple locations. Think about how simple it would be to duplicate your processes and expand your infrastructure. Included in this category are easily transferable processes, SOPs, and support systems that may be handed over to franchisees.
Is there a demand for your product in the market – Determine how much interest there is in your products and services in the Indian market. Think about things like the state of the market, the competitors, and your intended audience. There is substantial consumer interest and opportunity for growth in the Indian market, suggesting success for your franchise there.

Key Takeaways of Franchising Your Business in India

Should prove to be a strong franchise business opportunity – If your company doesn’t look like a strong franchise opportunity, it doesn’t matter how profitable it is. A novel fast-food offering or a proprietary method of restoring automotive finishes might make for exciting franchise ideas. Franchises only succeed if they inspire entrepreneurial aspirations in would-be business owners.
Superior Products & Services to stand out from Competitors – Your franchise, obviously, needs to make an excellent product or service. No one is interested in buying and running a franchise when the key to success is to have the industry’s lowest production costs. That doesn’t mean your franchise can just sell silk stockings, but it implies you need something to set you apart from the competition.
Established Trademark – You won’t have much success with franchising your idea unless you have a product or service that can be easily standardized. If you have a successful offering, a sizable customer base, and a flair for the dramatic, it’s time to find some safety nets. In particular, you need to have or work hard to create a powerful trademark.
Easy to replicate – The best franchise ideas can be passed on to others. It should be something you can easily articulate to others and that they can pick up on with little explanation. That can be done if your franchisable firm is well-systematized and its procedures are well-documented. The ability to replicate success is crucial for every franchise. That means you need to create a product or service that can be easily duplicated in several locations.

Conclusion,

Franchising your business in India is a long-term investment, so it’s important to put in the time and effort required to ensure success. Consider consulting franchise specialists or business consultants who are familiar with the Indian market in light of these warning indicators.

To know more about how to franchise your business in India, contact our experts at Sparkleminds.

29May2023

Become a franchisor in 2023 – Definitions, advantages & disadvantages – A complete guide

Written by Sparkleminds

Want to become a franchisor? Heard this term many times but wondering, how you can become one. Here’s a complete guide that will give you a clear definition of a Franchisor, the pros and cons of becoming a franchisor, how to franchise your business in India today, and more about franchising in India.

Who is a Franchisor?

Franchises are agreements whereby one business grants another the right to use its trademark, business model, and other proprietary assets in order to offer its goods and services.

The original company or one that already exists will be the one selling the trademark. The local entrepreneur who invests in these rights is known as a “franchisee,” and the new enterprise is known as a “franchise.”

Understanding What it Means to Become a Franchisor in India

Typically, three payments are made to the franchisor: the initial franchise fee, an annual fee, and a cut of the branch’s revenues. In addition, it can include additional service fees.

There are benefits and drawbacks to being a franchisor, but overall, it is a viable business option, especially for large, established businesses. A franchisor-franchisee relationship is fundamentally that of an advisor and advisee.

Here’s the role of you as a franchisor:

The franchisor offers ongoing advice and assistance with basic business decisions including hiring and training employees, opening a storefront, promoting its wares, securing supplies, and so on.
The franchisor’s role as a guide does not end once the partnership has been established and mutual success has been achieved.
Some franchisors are more vigilant than others in monitoring their franchisees to ensure that they are upholding the standards, quality, and values of the parent company.

Benefits of Franchisor

Now let us understand what are the benefits of a Franchisor in India are.

1. Opportunities for Growth

Franchising is frequently used by multinational corporations to increase their presence in new markets throughout the world by tapping into the expertise of franchisees in those regions.

The franchisor company entrusts the franchisee with the obligation of regional or international expansion and the right to award additional franchises to other businesses.

In exchange for using the franchisor’s tried-and-true business strategy, market dominance, and brand name, the franchisee bears the cost of opening a location and pays royalties to the franchisor.

2. Increased Market Share

Franchising is a great strategy for a business to expand its presence into new markets while also gaining market share with little to no additional investment. Because franchisees are also business owners, they have a vested interest in the success of their locations and must bear the costs associated with running a business, including payroll.

Even if individual franchise locations generate less revenue than they would if they were part of a larger chain, lower operating costs can nevertheless make franchisees more profitable overall.

3. Scalability

Franchise agreements can be tailored for high-volume national expansion or low-volume regional expansion, depending on the company’s needs, resources, and production goals.

4. Additional Revenue Sources

Ongoing royalties paid by franchisees are an extra source of revenue for a franchisor. Depending on the franchise agreement, royalties might comprise a variety of payments beyond the initial starting fee and monthly charge based on a percentage of the franchisee’s gross sales.

Disadvantages of a Franchisor

Every business comes with its own benefits and risks. Now that we have seen the benefits of becoming a franchisor in India, now it is time to understand the disadvantages.

1. Capital Investment

It takes a substantial time commitment and financial resources to launch a franchise. Developing the business, opening a flagship location, creating legal documents, developing marketing and packaging strategies, and finding and training franchisees are all essential expenses for every franchisor.

2. Risk of Failure

A franchisee may prove to be a bad fit for a number of reasons, such as being irresponsible, difficult to work with, or unable to successfully operate a firm, even if the franchisor has done its due diligence. There are additional possible scenarios in which the franchise loses money. There is still risk involved in investing in a franchise, even if the business model is tried and true.

3. Loss of control

At the outset, franchisees sign contracts promising to adhere to their franchisors’ guidelines regarding training, behavior, and other matters. However, this may not be the case once the novelty has worn off.

Disagreements are inevitable given that franchisees are people with their own views and temperaments; a franchisee could become stubborn or difficult, or they might not be able to implement changes as easily as the franchisor had intended.

4. Legal and Regulatory Costs Can Be Expensive

Legal action may be required if a franchisee refuses to cooperate or otherwise shows to be a bad option; this can be costly and detrimental to a franchisor’s reputation among other franchisees.

In addition, the Franchise Disclosure Document (FDD) and other regulatory documents necessitate the services of an attorney because of state and federal rules regulating franchisees.

Steps to franchise your business in India – Become a Franchisor in 6 easy steps

The best approach to expand your business across all of India is to franchise it. It’s also a fantastic opportunity to supplement your income. Offering a franchise involves entrusting a portion of your business to an unknown individual. That’s why it’s crucial to research the franchisee’s history.

Here are six easy steps to franchise your business in India.

1. Standardization – The term “standardization” refers to the practice of producing identical results consistently. This will ensure that customers at all of the franchise’s locations have the same consistent product flavor.

2. Ensuring a proper distribution network – Since the franchisor needs to ensure consistency across all outlets, it is important to have a proper distribution network, to ensure the same product/services across all outlets.

3. Have a proper support team – The prospective franchisee has to be assisted by a competent team. They will advise the prospective franchisee on the franchise’s history, past achievements, investment requirements, and potential returns.

4. Marketing Strategy – The franchisor should be actively engaged in online activities and have a strong social media presence. The franchisor must set up some funds for marketing the franchise system.

Key Takeaways – Role of a Franchisor in Franchising Business in India,

Franchises are agreements whereby one business grants another the right to use its trademark, business model, and other proprietary assets in order to offer its goods and services.
Because franchising allows corporations to leverage franchisees’ in-depth familiarity with local markets, it is frequently used by multinationals to increase their presence around the world.
A franchisor must allocate funds for research and development, a flagship location, legal document creation, marketing and packaging strategies, franchisee recruitment and training, and operational costs.
Franchises are subject to state and federal rules, which necessitate the use of an attorney to create the Franchise Disclosure Document (FDD) and other regulatory documents.
Franchisees are typically not protected against their franchisor’s bankruptcy by the terms of the franchise agreement.

Franchise Your Business FAQs

Q.1. How can I become a franchisor of my own business in India?

Once you have analyzed that your business is successful and are looking to expand it across the country, you can become a franchisor of your business with proper planning and strategy in place.

Q.2. Why would a business choose to franchise in India?

Most business owners choose to franchise because it provides rapid growth with less exposure to debt or the need to use equity financing. Since the franchisee is responsible for raising all startup funds for a location, franchising provides a means for businesses to expand without having to put up their own money.

Q.3. When should a business consider the franchising model in India?

Franchises typically only accept businesses that have been established for at least a year and a half. However, that figure may be higher or lower than stated, depending on the sector. In the first two years of operation, franchising can be helpful for some businesses.

Q.4. Is franchising good for small businesses in India?

Franchises have a higher success rate than other company models, but this does not necessarily translate to better profits. Of course, the higher success rate will cost you more in franchise fees. If you don’t have a lot of expertise in the business world, a franchise may be the best option for you.

To Conclude,

Your level of dedication to the franchising process should be the deciding factor in whether or not you take the plunge.

It would be irresponsible for privately held companies to consider not investigating franchising as a growth and expansion option. However, not every company can benefit from franchising as a means of growth. If you’re an entrepreneur thinking of testing out the franchise market, there are a few things you need to know first.

Get in touch with us at Sparkleminds to know how to franchise your business in India. Our expertise in franchising has helped various businesses to grow domestically and globally.

24May2023

Benefits of Multi-Unit Franchising Your Business in India

Written by Sparkleminds

Multi-unit franchising is a good way to ensure long-term growth for your business. Read this article to know more about the Multi-unit franchise business model for your business, its long-term benefits, and how to prepare yourself for multi-unit franchising in India.

Entrepreneurs are now looking at multi-unit franchise models as a surefire way to grow their businesses and take advantage of the growing number of investment possibilities. Eventually, these groups become independent business models and stand on their own.

Multi-Unit Franchising in India – A Complete Guide

The franchise business is always growing, and franchisees are always choosing to own more than one company. Multi-unit leasing is a great way for a business to grow quickly and increase its holdings.

Multi-unit franchises are like single-unit franchises in many ways, except that they have more than one store in the same area. Investors who want to operate a multi-unit franchise must invest more money upfront and over time than those who want to operate a single-unit franchise, but they also stand to gain more from having a larger profit margin.

Since it can be hard for a single business owner to be hands-on at each of their different sites, many choose to hire unit managers to oversee the daily operations at each franchise location. The owner will oversee their network of businesses and report back to the franchisor.

Key Takeaways,

One franchisee manages many businesses, typically in the same location, which distinguishes multi-unit franchising from the traditional franchise model. In the past few years, the multi-unit model has become more and more common.
When growing their holdings, franchise partners must think about several things, such as infrastructure, resources, franchise systems, the desire for growth, and the bond between the franchisee and the franchisor.
Traditionally, multi-unit owners run multiple units in the same area. But there have been cases of franchise partnerships that went beyond countries and boundaries.
There are many good things about the multi-unit franchise model for both the franchisor and the entity in charge. This makes it more appealing, which is why the multi-unit trend is growing.

Benefits of Multi-unit Franchising in India

1. Stability

You can choose this type if you want a steady sense of growth. Here, you also have a better chance of being successful because you can make money from more than one place and won’t be dependent on the success of just one place.

2. Building Strong Ties

One thing a franchisor wants to do is build trusting relationships with his or her partners. Those who want to stick with a certain brand or service under a franchise will only be able to do so if they have built good relationships with the owner over time.

3. Risk Taking

Because the plan has already been tried and tested at your first franchise, it makes sense to copy it, and isn’t very risky so, the best thing about you is that you don’t have to start from scratch. Also, you already have a standard operating procedure, making it easier to copy the model quickly in a new place in the same area, unless you have the skills and knowledge to go multi-regional.

4. Easy Returns on Investment

If you want to go the multi-unit franchise route, you can finance yourself with little risk. This is because if you have a set franchise model, you have already built up your reputation and are a safe bet to get money from a public or private bank. When someone has run a business before, banks are more likely to give them money because they know they won’t lose it.

5. Growth Overall

This is a kind of model that makes it possible for the company, the franchisor, and the franchisee to all grow at the same time. For a multi-unit franchise model, a franchisor will always look for someone who can inspire a large group of people, has a track record of being a manager, can work and come up with new ideas under pressure, has a history of success, and knows the market in their area very well.

Here are some factors Franchisors need to consider before expanding their business into multi-level franchises in India.

5 Factors to consider before expanding your portfolio in India

1. Finance

While considering expansion across the country, it is necessary for franchisors to ask themselves:

Do I have sufficient cash flow to keep my current business running while growing into multi-units?
How can I find the right investors who will finance my growth? Will banks be ready to fund my growth?

These are basic questions that need to be addressed before considering expanding into multi-units.

2. Resource

When moving to a multi-unit plan, the franchised units that are already open need to keep running at the same level. Franchisors need to make sure they have the right team in place to run the current unit well while they work on growing the business. Getting a business to grow means letting go of control and giving your team the power to run things on their own.

3. Losses

It is common knowledge that franchisors can expect their first unit’s business to go down as they open more units. What needs to be thought about is the size of that dip. A big drop can hurt both businesses and change how entities work with their franchisors.

4. Growth Capacity

Getting bigger just for the sake of getting bigger is not enough. Franchisors must determine how much the market wants the brand, look at the competition, and check how much people want the brand’s products. Multi-unit leasing is not about being vain, and the goal is not to have a lot of units.

5. Infrastructure

It is important to build a strong front of the house at the place, but it is also important to build a strong back of the house. To stay ahead of the curve, franchisees need to make sure they have the right people in the right places. This includes administrative and human resources workers as well as loss prevention teams. In the same way, it’s important to have enough resources. A common mistake is to have too many resources, which can cause the business to lose money.

Single-Unit Franchising Vs Multi-Unit Franchising in India

Most people know most about franchising through single-unit businesses. Under this plan, an investor in a single-unit franchise pays a set fee to get training and business help from the franchise parent company.

In exchange, the entity signs a contract saying that it will follow the company’s brand guidelines and business growth requirements.

Most business owners who choose to franchise do so because it gives them the chance to build brand recognition, use tried-and-true methods, and work with customers who already trust them.

The franchise plan is liked by both experienced business owners and people who have never run a business before because it gives more help than an independent business would.

There are many similarities between single-unit and multi-unit franchise models, but investors will pay less upfront for a single-unit franchise than a multi-unit business.

Multi-unit franchising is based on the idea that the more businesses you own, the more likely you are to get more people, make more sales, save money on operations, and make more money.

Is Multi-Unit Franchising Right for your business in India?

Multi-unit franchising can be a good choice for business owners with a lot of experience, but it has more problems than a single-unit franchise. Keeping this in mind, it’s important to be careful in your quest and make sure you have the skills, money, and time to make the jump.

Still, if everything is in place, running a multi-unit franchise is a great way to grow your business, make more money, and leave a lasting memory.

FAQs

Q.1. Are there any disadvantages of multi-unit franchising in India?

Every business has certain risks, so the more units you have, the more the risk. Unless you have experience in leadership it could be more difficult to manage things effectively. Keeping in mind that you have more than one unit, you need to ensure having sufficient investment as well.

Q.2. What is the advantage of multi-unit franchising for the franchisor?

Multi-unit franchising gives you the chance to build a bigger management team and use them in more than one business. You can also save money on advertising and marketing for all of your sites and make more money by selling more.

In conclusion,

Multi-unit franchising could be a good choice for you if you have the knowledge, experience, and drive to take on challenges. You can build a large business with the help of people, partners, outsourcing, and hard work.

15May2023

Fitness Industry in India – Market Size, Latest Trends & Opportunities – Plan to grow your fitness business in India – Now’s the right moment!

Written by Sparkleminds

You are a business owner running a successful Fitness business in India, and now wondering if it is the right time to consider franchising it. Yes, this is the perfect time to adopt the franchise business model to expand your fitness business in India.

Read the article to know more about the fitness industry performance in India, what makes the Fitness Business a profitable opportunity to grow and trend drivers that are setting the market high for business expansion in India.

How Covid Changed the Fitness Business in India?

According to studies, there has been a shift in the way the Indian populace thinks, acts, and lives. There was an almost 60% rise across the board from the 2019 study to the 2020 survey, with 26% of Indians engaging in yoga, 11% in cardiovascular exercise, and 10% in body-weight exercises.

In addition to people’s rising interest in health improvement, the recent epidemic has spurred a rise in accessible, on-demand virtual services. Trained experts are needed to teach, instruct, coach, and consult regardless of how people are enjoying fitness.

Obesity, hypertension, diabetes, cardiovascular disease, and high cholesterol have all seen dramatic increases in recent decades, and this has prompted Indian citizens to pay more attention to their health.

Due to this rising demand, there are now more health clubs, gyms, and fitness centres than ever before, driving up the demand for fitness professionals and the sales of fitness equipment.

Demand for Gyms & Fitness Business in India 2023

Statista reports that only 33 per cent of urban Indians have easy access to a gym. Twenty-five per cent of persons who stated they had never joined a gym or taken a lesson from a fitness teacher began going to the gym for the first time in the first half of 2022.

Nevertheless, all of these numbers point to a growing trend towards health and fitness in India. This information suggests demand for both personal trainers and fitness centres.

These are some factors which will encourage all those fitness business owners out there to grow their fitness business in India right away.

Factors driving the rapid growth of the Fitness Business in India

Several factors point to double-digit growth for India’s wellness or fitness market in the coming years. Let’s see some of these factors.

Use of Technology & other apps – The availability of a wide variety of ways to work out and prioritise health is one of these aspects. Given the industry’s high potential and fragmented market, several investors are stepping forward to make substantial investments. Young people have begun to take health and fitness seriously because of the percolation of information made possible by the proliferation of technology and the meteoric rise in internet usage.
Growing demand for Gym and Fitness Accessories – Because of the worldwide epidemic, more people are inquiring about fitness-related services and goods than ever before. Naturally, in a developing market like India, where new products and services are constantly appearing, shoppers have a greater propensity to buy what they want.
Rise in Disposable Income – Younger generations’ preference for gym memberships as a result of increased disposable income is another developing aspect that can be termed a dominant trend. Young professionals have plenty of discretionary resources to spend on frivolous activities like going to the gym.
Government Push “Make in India Campaign” – The “Make in India” initiative has had a significant impact on the industry because of the Indian government’s emphasis on health and fitness. While Ayurveda, meditation, and yoga have all been part of Indian culture for thousands of years, the demands of a more active and mobile younger generation have led to the development of innovative fitness technologies.

Trends that have shaped the bright future of the Fitness Industry in India

Allied Market Research predicts that by 2027, the global online fitness market will be worth $59.231 million, having grown at a compound annual growth rate (CAGR) of 33.1% between 2017 and 2027. According to the study’s findings, the proliferation of augmented and virtual reality training is another major factor fueling the market’s growth.

As a result, the fitness industry in India is being revolutionized by cutting-edge technology like artificial intelligence (AI), machine learning (ML), and intelligent wearables.

Leading Fitness Industry Trends for 2022

1. The Rise of Digital Technology in the Fitness Sector

Lifestyle changes have ensued after the outbreak. The Indian people have accepted the barricades as the “new normal.” The wellness and fitness business is not immune to the global trend of rapid technological advancements changing industries.

Amazing ideas, insights, and opportunities are springing up in the industry to help it overcome the challenges that have been brought to light. Demand for both online fitness programmes and home gym equipment was driven by COVID-19.

This has led to the emergence of a new demographic of people who value health and wellness.

2. The industry is changing due to technological developments.

With the present level of digitalization, each device provides useful information about progress and helps users keep tabs on their fitness goals in its own unique way. Let’s look at the future of the fitness business and how it will be affected by the technological changes that are already here.

Machine Learning – Smart people today are making strides towards a healthier lifestyle by using fitness centres equipped with treadmills, bikes, and other technologically advanced equipment. People recognized a sizable need in the market and set out on a technical journey to enhance health in a way that matched their experiences of inelegance.
Wearable Gadgets – Now more than ever, wearable devices are a crucial commodity. People today, however, are keenly aware of their bodies and constantly striving to improve their fitness by monitoring their pulse, heart rate, and number of steps taken. Wearable exercise gear helps automate chores like rep counting, progress monitoring, macro tracking, heart rate, blood pressure, and other variables affecting active energy, all while increasing user motivation and creating a more disciplined lifestyle.
Workouts using AI – Our current period is one of extraordinary innovation. Marketers can provide cutting-edge health and fitness products thanks to AI-powered deployable data. Several systems currently available provide real-time monitoring of exercise progress in conjunction with live trainer instructions and AI-enabled tracking.

Top Trends in India’s Fitness Industry to look out for in 2023.

Biohacking’s Impact on the Health and Performance Industry
Online Exercise Programmes and Hybrid Memberships
Fitness Related Gadgets
Workout with low impact
Outdoor Exercise workouts
Small workout sessions
Mindfulness Training
Group Personalized Training
Hygiene Awareness
Home-based gyms

Fitness Industry in India – FAQs

Q.1. What is the future of the fitness industry in India?

Between 2021 and 2026, IMARC Group predicts the market will expand at a CAGR of 8.6%. There are a lot of variables, such as advancements in technology and the availability of various workout and health-focused options, that point to double-digit growth for the health and fitness market in India soon.

Q.2. What is the scope of the fitness industry in India?

In recent years, India’s fitness business has expanded at an astounding rate. Twenty million people searched for “fitness near me” on Google each month in 2019. In 2020, the Fitness market is expected to generate $2,190 million in revenue from 167 million active consumers.

Q.3. Why is the fitness business growing in India?

While ancient Indian traditions like Ayurveda, meditation, and yoga have contributed to a modern emphasis on health and wellness, the demands of a more mobile and urbanised youth population have prompted the development of novel technological approaches to exercise and wellness.

To Conclude,

People are getting fit in a variety of ways, including working out at home and going to gyms. As customers become more health conscious, demand for fitness centres and related products has risen. There seems to be a fitness studio popping up every day.

The fitness industry is being consolidated by several large multinational corporations, established players, and innovative newcomers from all over the world. It has also spawned novel ways of doing business and generating income.

Indian consumers may now take advantage of a wide range of services and goods that are primarily technology-based thanks to the novel intersection of fitness and digitization.

In addition, individuals are starting to take exercise more seriously as they learn more about its benefits.

All the foregoing suggests that the fitness business in India has a promising future and that its clients will be able to improve their health. For more details on how to franchise your fitness business in India, you can get in touch with us at Sparkleminds. Our years of expertise have helped many businesses grow domestically and globally also.

25February2023

Success Stories: How Other Franchises are Winning with Marketing in India?

Written by Sparkleminds

A successful marketing strategy for your franchise or brand can increase sales as well as foot traffic. Let’s learn more about some Franchise Marketing Case Studies in India. We will see the success stories: how other franchises are winning with marketing in India.

Any brand, whether successful or unsuccessful, wants to give its marketing plans and activities their best effort. In addition to being an essential component of any franchise firm, marketing is also crucial for the long-term survival of the brand.

Consumers typically adore brands with excellent marketing campaigns and strong brand recall. It’s crucial to consider how marketing choices for a certain brand may impact its whole franchise company. Also, consumer relationship while making marketing decisions changes.

Now let us dip into the 5 best franchise marketing case studies in India. It will surprise you to see how these brands (domestic and global), have risen from the various challenges they encountered and have successfully established themselves in the Indian market.

5 Best Franchise Marketing Case Studies in India

The entire production is by KAPL [Karamchand Appliances Private Ltd]. With a 69 percent market share in 1999, All Out established itself as the segment leader. Furthermore, within ten years of its inception by converting a sizable number of clients into vaporizer users.

These case studies will give you some helpful ideas whether you’re trying to boost your online presence or are just starting with digital marketing. So jump in and pick up tips from the pros!

Case Study – 1. “Amul The Taste of India”

Amul – a name that is at the tip of every Indian today, a brand which is famous in every household. Starting with a few farmers to end middlemen’s exploitation, this has now become the top brand in the nation.

Our country has advanced thanks to the brand’s years of experience. Let’s examine the development of the brand “Amul-Taste of India” from an incredibly modest business to a well-known one.

India’s commercial sector is growing in popularity as a result of its thriving economy. This is a reflection in the country’s residents’ ability to purchase goods. For instance, entrepreneurs want to create modest franchise enterprises.

The reason behind their success – Amul has a history of innovation, whether it is through the introduction of new products, innovative marketing strategies, or the reinterpretation of societal norms. As previously mentioned, Amul was the first company in the world to produce skim milk powder from buffalo milk in the 1960s.

Amul’s Success franchise marketing studies in India factor include:

“Amul Girl” – This is the marketing gimmick employed by the business to advance its brand. In its longest-running advertising campaign, the firm deftly incorporated cartoons to bring fun to its print advertisements. The information is widely shared and encourages better customer experiences. This raises the concept of Amul’s brand’s value as a memento.
“Constant Innovation” – Amul continues to innovate, whether it be through the introduction of new products, innovative marketing campaigns, or challenging established social trends. Amul was the first company in the world to use buffalo milk to create skim milk powder in the 1960s. Amul has also changed from traditional operations to a more lucrative and effective structure thanks to its three-tier cooperative structure.
“Powerful Brand” – Amul promotes everything along the Branded Home Architecture route, all under the umbrella of the Amul brand. In order to increase brand awareness and lower marketing and advertising expenditures, the parent brand is promoted rather than specific goods.
“Uses an effective supply chain” – Amul adheres to the three-level cooperative structure of the state-level dairy association, the regional dairy cooperative, and the village-level dairy cooperative society. a rural dairy product company that bought, processed, and sold its products to the national dairy association.
“Diversified Product Portfolio” – Amul can satisfy the needs of various market segments thanks to its diverse product line. Over the years, Amul has developed strong brand ties with its customers by offering benefits to its target market segments.

In short, Amul has certified itself to have one of the longest advertising campaigns, a traditional form of marketing, which is recorded in the Guinness Book World Records.

Case Study – 2. “Haldiram’s India”

A well-known brand in India is Haldirams, which produces sweets, snacks, and restaurants. The business has dominated the snacks and candy market for the last eight decades. What started as a tiny shop in 1918 has grown into a business with yearly revenues of 5,000 crores. The inspirational growth of Haldiram’s from a modest namkeen business to a multi-billion dollar corporation.

The enormous success of Haldiram’s is attributed to the fact that the original family still exerts strict control over the business. Family-led teams oversee manufacturing facilities, traditional recipes are conserved and passed down, and the business is protected against passing trends.

Haldiram’s has also seen its share of difficulties. The US food regulatory agency prohibited various snacks and food items made by Haldiram’s as a result of the Maggi ban in 2015.

These foods were deemed dangerous because they had excessive concentrations of food chemicals and microorganisms. After conducting extensive tests on the products in September 2015, India’s FDA from the state of Maharashtra handed the business a good health certification.

Leading technological management of the products propelled Haldiram to the next level in keeping long-term shelf products in worldwide transactions. Together with expanding its business, Haldiram joined an online marketplace where customers could access and purchase their products.

Therefore, using both traditional and modern techniques of promoting their products, till date, they are a strong part of Indian households.

An article shared in The Times of India recently, emphasizes the use of growth marketing strategies in 2023 which can help business owners use unique methods to reach their targeted audience. Click here to read more about it.

FAQs:

Q.1. What is the importance of strategic marketing in franchising?

Franchise marketing is crucial since it helps franchisors establish and protect the brand’s reputation while also assisting franchisees in generating leads and expanding their operations. As a result, these marketing initiatives are profitable for everyone.

Q.2. Why is the marketing process important in Franchising?

Every business needs marketing as a strategic tool for growth. Today, an effective marketing plan is essential to a company’s ability to compete in the market. A franchise firm employs a dual marketing strategy: on the one hand, it helps the parent company’s sales and, on the other, it also looks after the franchised locations.

Conclusion,

Franchise marketing case studies in India are important for any type of business looking to expand their presence in the country. Case studies in marketing are a crucial part of understanding marketing strategies. You can gain a sense of how businesses have interacted with their target market in novel ways to boost sales and lead generation and make a big social effect by studying marketing case studies.

If our article has given you a good understanding of how marketing has made a difference to many big companies, and you wish to know more about marketing strategies and how you can safely apply them in your business growth, get in touch with our consultants at Sparkleminds.

15November2022

How do I protect my Brand’s quality in Franchise?

Written by Sparkleminds

Protecting the real essence of a brand is the key responsibility of a franchise and this can only be done once he designs the right business model as well as standardizes the franchise agreement. Don’t worry we can tell you more about this.

how to protect brand quality in franchise model

Brand, a constructive structure of any business thought, is made up of various elements like logo, graphics, tagline, shapes, colors, etc. Furthermore, this becomes a defined symbol that differentiates a company providing products and services from others. Nevertheless, this plays a vital role in creating a quick and emotional impact on customers’ minds, attracting them to the brand. In short, a franchisor puts in many years of hard work and efforts to make and successfully establish the brand, which can be easily acceptable by a wider consumer base.

Selecting a franchise model for expanding the business, comes with an expectation to grow and strengthen the brand across new and untapped markets. Though local partnerships bring along with them immense benefits to a company’s growth, it also has a risk of brand dilution. Thus, it is the responsibility of every franchisor to guard his brand against the risk of dilution though he wants to leverage it to sell as much as possible. But remember, the strategies used to pursue this end often bring the danger of tampering with the quality of the brand.

What is Brand Dilution?

No business model is perfect. Though this is also known as the weakening of a brand, this can also happen by overuse or because of ill-judged brand expansion, resulting in undue competition or price cutting, in turn, hampering the brand image. Thus, companies need to maintain uniformity throughout all their stores or network, be they company owned or franchised, to maintain the quality of the brand. This can be done, by SOPs (standardizing operating processes), uniformly keeping the store interiors, uniformity in HR or other company policies or not to forget even the accounting and reporting systems. This will thus protect the originality of the brand, which is the primary task of the franchisor.

How does a Franchisor protect his brand’s quality in Franchising?

Difficult to accept, but brand tarnishing is an unfortunate reality of franchised operations. Franchising means where a company expands its network and grows. This growth may sound good for the franchisor, but it also weakens its control over the systems which are in place. There may be instances when you must compromise on the quality of the product or service. This results in a loss of customers and gradual market share. A franchisee owner usually thinks about what he is going to do best to grow his business and, in such times, he may fail to adhere to the systems set in by the franchisor, which will eventually lead to damaging the brand image locally. To put a stop to this tarnishing, it is only the franchisor who can do as much as possible to save the reputation of his brand. And the best solution against brand dilution is the franchise agreement.

A franchise agreement can help franchisors to get over the risk of brand tarnishing. Before recruiting a franchisee, the franchisor must prepare a good quality legal agreement using the guidance of a knowledgeable person who knows both legal as well as commercial aspects of franchising. Using this tool makes it mandatory for the franchisee to operate the franchise strictly under the adherence and system laid out by the franchisor. However, as instructed by the franchisor, the franchisee should advertise and promote the brand. Emphasis on the use of a common brand name, logo, identity, and quality with a regular inspection plan of tours to the franchisee can also be laid out in this agreement.

Uniformity across the Franchise System

By uniformity, we mean using a common name, logo, identity, and color theme. But that’s not all that requires uniformity. The franchisor needs to ensure that the pricing of the products should also remain the same as discussed by the franchisor which would be standard across all the franchisees. When a customer comes to a particular brand franchisee, he expects to obtain the same look n feel, and comfort that he would have experienced at the original outlets. Keeping these aspects in place, would make the customer experience far better and keep them coming back to give you more business.

Key Takeaways

Protecting the brand quality is a step taken usually when you first develop your business. But in the case of a franchise model, it is harder because it is in the hands of the franchisee to keep the integrity of the national brand image at the local level. Thus, right from the time you have finalized your franchisee, it is imperative to reinforce the brand image continually before it becomes too difficult later. Continuous efforts from the franchisor’s end are thus an important point to protect brand dilution. Still confused? Don’t worry, sparkle★minds will help you gain clarity! Connect with us today.

16August2022

5 ways to keep learning as a Franchisor

Written by Sparkleminds

You may not place much emphasis on franchisor growth, yet one of the traits that make a strong franchisor is a passion for learning. Even if you’ve been able to invest time in franchise development and create a productive network of franchisees, it’s your duty as their franchisor to keep growing personally and learning all you can about your field and franchising. If you become complacent, you risk being surpassed by franchisors who are constantly looking for methods to educate their network. Uncertain about where to begin? Here are the 5 ways to keep learning about franchising for Franchisor development:

Franchising Qualifications

Working towards being a Qualified Franchise Professional is an option if you’d like to add another certification to your profile (QFP). It will teach you how to become the best franchisor possible, so you can guide your franchisees to success. It is a widely recognized and respected title across the franchising sector.

Learning to be a better ‘boss’

Even though your franchisees are independent business owners, you’ll still have some managerial responsibilities, especially if your network is smaller. Most colleges offer “professional education” courses that are appropriate for both pre-and post-graduates if you’re serious about continuing your study. Many don’t require in-person attendance, allowing you to fit in some online study after a long day at the office. Pick a skill you’d like to work on and get started. You can choose to cover anything from marketing to leadership to entrepreneurship at a much lower cost than full degrees.

If you can’t commit to a formal course, you may acquire a lot of excellent leadership principles from books and blogs. Find out which books to read before night to improve your leadership skills by asking respected franchisees or the business community for advice.

Industry-specific education

Franchise knowledge is key, but becoming an expert in your industry is just as crucial. It’s crucial to stay current with the most recent trends, advancements, and regulations in your sector, whether you’ve been working in it for years or have opted to franchise in a region you’re less familiar with. A great way to start your study is with one of the many companies that provide reliable insights into anything from consumer sentiments to purchasing patterns to our responses to various types of advertising.

To stay informed, read magazines and publications devoted to your profession on a regular basis, or sign up for internet newsletters from reputable news sources. Whether you prefer to network online (via social networks like LinkedIn) or in person at events, make sure you are also developing a solid network of contacts in your industry. Speak with independent business owners and franchisors, and consult with franchisees both inside and outside your network on a regular basis. Regardless of whether they are involved in the franchising industry, getting advice from various people and companies will help you steer your business in the best direction and keep your mind open to possibilities.

Personal development

Genuinely great franchisors also make time for personal development. Motivating your franchisees is difficult. If you’re not willing to own your own, they can get over your shortcomings. After all, nobody is flawless. Do you find it difficult to be confident, or do you avoid having uncomfortable conversations? Or, at the cost of your relationships with your franchisees, is your problem overconfidence and difficulty accepting when you’re mistaken? Be sincere with yourself and do whatever it takes to improve yourself, whether it is taking conflict-resolution classes or confidence-boosting exercises.

Listen to those around you

No man is an island, to quote a well-known proverb. When you run a franchised firm, this is especially true. You belong to a much wider network of people as a franchisor. You may manage and control many areas of your franchise business, but you are never working alone. As a franchisor, you have access to ongoing communication with your workers, franchisees, and customers. Our recommendation is that you be open to hearing their opinions and learning how you might advance both your personal development and the efficiency of your company.

Learn to succeed

Hopefully, this offers you a place to start as you continue to grow as a franchisor. Although this is a comprehensive list, there are a tonne more ways to shape yourself into a fantastic franchisor, mentor, and friend to your franchisees.

You should get in touch with sparkle★minds if you wish to franchise your business. It has more than 20 years of experience and has assisted hundreds of people in franchising their businesses. What do you think, then? Contact us right away. Request a today. Call us on +91-9844441300.

06September2021

Create your own Franchise Marketing Strategy

Written by Sparkleminds

Franchise Marketing Strategy : Sparkleminds

Who is executing the franchise marketing strategies planned? Franchisees..!!Wrong answer!!! No matter how good you have set your franchise business model, and your franchise systems and manuals. The franchise marketing strategies have to be planned by you to support the complete franchise organization at a central level.

Many franchises succeed using great marketing strategies. It is a continuous process that helps in the retention of customers and developing new ones. One of the benefits of a franchise is working with a company that already has established marketing strategies in place. If the franchisor does not provide a support system, it leads to confusion among the parties involved. A franchise business plan has to be allocated well in advance. Delaying it causes only delaying in getting profits.

Have a marketing checklist and act on it accordingly. You can use the following direction to better marketing.

Take the lead in Marketing

Take a more centralized approach and handle the bulk of the marketing at the corporate level. Others leave marketing up to the franchisee. Knowing what you have available and are able to do under your franchise’s guidelines is the first step to building out your marketing plan.

Provide Marketinginputs

Franchisors need to provide excellent marketing materials to franchisees. These materials are just the beginning of having a solid marketing strategy in place. It’s up to the franchisee to devote the time and resources to bring these marketing materials to life.

Be Geo-Specific Transmission

Have a strong social media presence. If you’re not skilled in how to do social media marketing, hiring a social media expert. Through centrally operated, provide posts and activities which will benefit the franchise in particular geographic zones. Promote and engage with local organizations and deepen your connection to the community so that the franchise benefits highly through wider reach. Local marketing strategy by the franchisee will enable the business to feel autonomous rather than like an out-of-touch establishment.

Build Relationships

A marketing plan should focus on humanizing the brand by personalizing the communications you send. As much as you want to sell, it is much more important for you to touch hearts and make a connection with your customers. The franchises are hugely dependent on the community the franchise is available at. This personalization can foster deeper relationships between the franchisee and the community, which ultimately can build the franchise. Franchisees must have a budget to devote to building these resources.

Hence, get your franchise marketing strategy built in a strong manner to support your franchises in delivering the results you would like to achieve.

13May2021

FUTURE OF PHARMA INDUSTRY AND DIAGONOSTIC CENTRES

Written by Sparkleminds

FUTURE OF PHARMA INDUSTRYAND DIAGNOSTICS CENTRES

The year 2020 has placed enough evidence on the table during this regard. The novel Coronavirus has shaken the whole globe by its roots. This is an example of one of the challenges this Future Of Pharma Industry faces: to constantly update infrastructure and R&D to combat new diseases and develop a cure for existing chronic diseases

The pharmaceutical industry is currently valued at $41 bn.Generic drugs, with 71% market share, from the largest segment of the Pharmaceutical industry in India. This is set to grow as 12% to 14% in finishing year of 2021-2022. In the domestic market by revenue, Anti-Infective (13.6%), Cardiac (12.4%) and Gastrointestinal (11.5%) had the biggest market share.

Curbing Costs:

Everything gets expensive with time. Rising costs and inflation also result in rising medical costs. Making health accessible and affordable for all may be a great task. The government has already initiated efforts therein direction with the Ayushmann Bharat initiative. However, considering that inflation may be an adynamic metric, curbing medical costs will remain an ongoing challenge.

Medical infrastructure:

This includes hospitals, medical colleges and education, medicines, pharmacies, small medical centres, labs, vaccines, machines that are utilized in procedures, the manufacturing infrastructure for medicines and everything that keeps the industry in place. Maintaining the standard of infrastructure and expanding it to all or anyway urban and rural areas is additionally challenge to the corporate.

Foreign regulations:

Many companies receive tons of their revenues from medical exports. The regulations and compliance norms of foreign countries may be a challenge that Indian pharma companies need to face. Trade restrictions, exports and import regulations, customs and taxes and lots of other caveats come when international trade comes into the image.

Investments and Recent Developments :

The Union Cabinet has given its nod for the amendment of existing Foreign Direct Investment (FDI) policy in the pharmaceutical sector in order to allow FDI up to 100% under the automatic route for manufacturing of medical devices subject to certain conditions.

The drugs and pharmaceuticals sector attracted cumulative FDI inflow worth US$ 16.86 billion between April 2000 and September 2020 consistent with the information released by the Department for Promotion of Industry and Internal Trade (DPIIT).
Some of the recent developments/investments within the Indian

The pharmaceutical sector is as follows:

In December 2020, Piramal Pharma Solutions announced plans to invest Rs. 235 crore (US$ 32 million) to expand its facility in Michigan, US, with additional capacity and new capabilities for development and manufacturing of active pharmaceutical ingredients (APIs). In November 2020, Indian Immunologicals (IIL) commenced work on Rs. 75 crore (US$ 10.17 million) viral antigen manufacturing facility in Genome Valley, Telangana, that will enhance its vaccine production capacity by 35% by October 2021.
In October 2020, six generic drug makers–Dr. Reddy’s Laboratories, ZydusCadila, Glenmark Pharmaceuticals, Torrent Pharmaceuticals, Hetero Drugs and Ackerman Pharma signed an effect Hidalgo, a state in Mexico, to determine an outsized pharmaceutical cluster for production and logistics in Mexico.
In May 2020, Jubilant Generics Ltd entered into a non-exclusive licencing agreement with US-based Gilead Sciences Inc to manufacture and sell the potential COVID-19 drug Remdesivir in 127 countries, including India. Affordable medicines under Pradhan MantriBhartiyaJanaushadhiPariyojana (PMBJP) achieved a record sales turnover of Rs 52 crore (US$ 7.38 million) in the month of April 2020.

Indian Diagnostic market analysis of 2021:

Growing Prevalence of Diseases and Launch of Technologically Advanced Procedures to Drive Growth” provides a comprehensive analysis of the diagnostic laboratories market. The report includes the cumulative revenue generated by the market players from diagnostic services, including both government and personal diagnostic laboratories. The private diagnostic laboratories have been further explained with details on market share contributed by pathology tests and radiology tests, by Tier I, Tier II and Tier III Cities, and by hospital-based diagnostic laboratories, polyclinics, and independent diagnostic laboratories operating in India. The share by organized and unorganized players has also been provided intimately to obviously explain this competitive scenario within the market. The stakeholders of this report include diagnostic laboratories market players, laboratories equipment providers, companies involved in research and development activities, and therefore the new entrants and venture capitalists who wish to invest in the diagnostic laboratories market in future. Detailed snapshot on pathology tests market and radiology tests market is included within the report back to elucidate facts about the market intimately. The future analysis of the overall Indian diagnostic laboratories market has also been discussed along with recommendations from the analyst view.

The future Map:

Medicine spending in India is projected to grow 9-12% over subsequent five years, leading India to become one among the highest 10 countries in terms of drugs spending.
Going forward, better growth in domestic sales would also depend on the facility of companies to align their product portfolio towards chronic therapies for diseases like cardiovascular, anti-diabetes, anti-depressants and anti-cancers, which are on the increase.

India needs clear and proactive interventions to form sure an all-conducive supply chain. This may not only boost local manufacturing, but also find ways to reduce dependence on external factors.. In consonance thereupon policy, it is vital for the government to work towards revamping the structure of the pharmaceutical industry. The govt launched targeted financial incentives to market manufacturing of raw materials, and to bring back a bigger production of APIs to India. The Union Cabinet took a decisive step to work out three API parks with common utilities, identifying and reducing the dependencies on China for 53 APIs, introduced the assembly Linked Incentive (PLI) scheme to further reiterate India’s aim to be self-reliant.

Around 35%-40% of the capacity is idle. The government must efficiently use the prevailing API units. Consistent with a McKinsey report, the driving factors for growing the domestic market in India are often attributed to the upper burden of diseases. The local production of APIs is incentivized through the rapidly growing population of the country. This provides avenues for pharmaceutical companies to not only cater domestically, but also enter international markets with comparatively higher age groups.

Shortage of delivery points and therefore the lack of accessibility to drugs continue to be bottlenecks even for the pharmaceutical companies to completely utilize the domestic market. The affordability of drugs will rise because of sustained growth in incomes and increase in coverage. Greater spending on healthcare and government sponsored programmes are necessary to hide the agricultural markets. Improving process is imperative for investments in healthcare infrastructure and financing, and better per capita income.

For a sustainable market and a robust rate of growth, innovative business models should be developed for equilibrium in drug price controlling and native manufacturing costs. Though the govt. has eased its protectionist policies, timely and effective implementation is crucial to affect the challenges of the pharmaceutical sector.

As countries are willing to require an edge within the Indian marketplace for the supply of COVID-19 vaccine and medical equipment, this is often the prospect for India to become truly atmanirbhar within the pharmaceutical segment.The Indian Government has taken many steps to set back costs and convey down healthcare expenses. Speedy introduction of generic drugs into the market has remained focused and is predicted to profit the Indian pharmaceutical companies. In addition, the thrust on rural health programmes, lifesaving drugs and preventive vaccines also augurs well for the pharmaceutical companies. Hence for now it can only be said that the situation is yet to be discovered to come any specific conclusion.

Conclusion

Moving from a time of transition to a bright future will depend upon how the Indian pharmaceutical industry can tap into the short- and longer-term opportunities identified above. What is clear is that the time is true for all stakeholders, from government, academia, and industry to take a position during this future, to realize the Indian government’s target of becoming a $5 trillion economy by 2025. However, to do so, the pharmaceutical industry will have to take some well-thought-out risks, embrace the proper opportunities and, importantly, fire on all cylinders! One solution to scale back risks is to optimize the potential of digital technologies to assist Indian pharmaceutical companies improve the efficiency and effectiveness of their drug development process, from discovery, through clinical trials to regulatory approval, making the entire process faster and cheaper than what’s currently possible.