 INDUSTRY FRAMEWORK:
THE FRANCHISING MODEL
 Quality of Product Value
- Fees and royalty, stocks
availability terms, and condition
(location).
 Quality of VROI
(Value Proposition Into Revenue)
- Product, package, brand and
price. (mitigates risk)
 Quality of local efforts
- promotions and local area
supervision. (planning risk)
 Quality of Company
- System, manual, regular
training franchise support
and prompt communication.
 Quantity of Prospects
- Foot traffic and capture
rate. (maintain profitable
critical mass of customers)
 Quality of Leadership
- KASH. (Knowledge,
Attitude, Skills, and Habits)
(execution risk)
  BUSINESS MODEL
• Description of the means.
• Methods a firm employs to generate sales revenue, profit and cash flow.

 Offering model  Operating Model

People in the marketing and sales Supply chain customer Fulfillment.
departments. (value chain)
• Target Market • Complimentors
• Value Proposition • Configuration
• Revenue Model • Value Network
• Channel • Resources and Processes
• Customer Bonding Strategy • Cost
 FORMULATING BUSINESS MODEL MAP

- Offering model is the starting point of a business model, value creation is

the starting point of the offering model.

 Starting Point of Assembling the

Business Model

1. Target Market 2. Value Proposition 3. Channel

Market Space – Who Novelty – What are the Place – Where do we
is the target market biggest unmet needs make ourselves
that has the greatest should satisfy in a novel conveniently available
potential for the firm? way? consistent with the
target market’s buying
pattern?
 Converting Value Proposition Into
Revenue

1. Value Proposition
Novelty – What are the biggest unmet needs we should satisfy in a
novel way?

2. Customer Bonding Strategy

Organization – How do we have a customer centric organization that
can engage, deliver solutions & build positive relationship with
customers better than competition?

3. Revenue Model
Price – What will be the most attractive pricing scheme that can
leapfrog demand and meet our objectives (revenue, profit or social
cause)?
 Combining Distribution Channel and
Communication Channel

• In the customer bonding strategy creates omni-channel

marketing, which aims to streaming all the customers’
interactions in an integrated manner creating an end-to-end
personalized experience differentiation for a brand or a
company.
 Four Tests to Spot Losing Concepts

1. Are you unique without being

relevant?
2. Are you investing in cost that does
not add value?
3. Are you guilty of having a lower
price – higher cost business model?
4. Will consumers prefer the status
quo than change their preference in
your favor?
 Test number one, Staging relevant is by knowing and
acting on the consumers and/or customers BIDA
( Barriers , Irritant, Disappointment and Annoyance ).

Test number Two, Investment should focus on key

drivers to generate revenue .

Test number Three, There is need to ensure not just a

value creation but also an equally good value capture
idea.

Test number Four, Consumer trial leading to

adoption is the ultimate goal on a lunch.