creating the winning formula to compete with global franchises

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Bing Sibal-Limjoco, CFE Director for Membership, Philippine Chamber of Commerce and Industry Vice Chairman, Philippine Retailers Association

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Bing Sibal-Limjoco, CFE Director for Membership, Philippine Chamber of Commerce and Industry Vice Chairman, Philippine Retailers Association. Creating the Winning Formula to Compete with Global Franchises. Top Franchises in the World. This list is more inclusive - PowerPoint PPT Presentation

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Page 1: Creating the Winning Formula to Compete with Global Franchises

Bing Sibal-Limjoco, CFEDirector for Membership, Philippine Chamber of Commerce and IndustryVice Chairman, Philippine Retailers Association

Page 2: Creating the Winning Formula to Compete with Global Franchises

• Of the top 100, only 2 come from Asia

• The 2 from Asia are Kumon and Eye Level

• The rest are US franchises

• This list is more inclusive• List includes European franchises• DIA, a Spanish grocery retailer

franchise, is in the top 10• This list has only 1 Asian franchise

– Kumon

Page 3: Creating the Winning Formula to Compete with Global Franchises

(1) USD 784m (2) USD 309m (3) USD 296m

(4) USD 267m (5) USD 113m

The best Philippine franchises in terms of gross revenues

Source: Top 1000 Corporations in the Philippines

Page 4: Creating the Winning Formula to Compete with Global Franchises

“If we want to compete (with McDonald’s) we have to make sure we at least equal them in all the other attributes. It was a challenge because in advertising, promotion, store look, size, playgrounds, service speed, we ranked lower. We focused on the other attributes one by one.

“We did a survey and, aside from taste of food, we were ranked higher by customers in courtesy and service style. Maybe they felt we were warmer…”

-Tony Tancaktiong, in an interview with Forbes Asia

Page 5: Creating the Winning Formula to Compete with Global Franchises

Customer focus Vision Spirit of family and fun Good quality Location Good partners Culture Marketing

Source: Interview with Mr. Ernesto Tanmantiong, Jollibee Foods Corp. President in the Philippine Star

Page 6: Creating the Winning Formula to Compete with Global Franchises
Page 7: Creating the Winning Formula to Compete with Global Franchises

A Philippine franchise selling flavored French fries

With overseas outlets in Indonesia, Malaysia, Panama, the Middle East, North Africa and the United States

Countries with the highest number of outlets Philippines – 350+ Indonesia – 45 USA – 30

Page 8: Creating the Winning Formula to Compete with Global Franchises

The most important ingredient is sensitivity to the needs of the consumers.

Page 9: Creating the Winning Formula to Compete with Global Franchises

Subway is the number one restaurant franchise because it recognizes that serving healthy meals is a growing need of today’s consumers.

7-Eleven is the top franchise in terms of number of outlets because it offers convenience, which is a real need in today’s fast-paced society. McDonald’s is a global icon because it has recognized that today’s consumers want to be pampered no matter what socio-economic class it belongs to and so it upgraded the design of its stores to make its customers feel important.

Page 10: Creating the Winning Formula to Compete with Global Franchises

If ASEAN brands want to succeed in the global arena we have to design products and services that the global consumers want and need.

Page 11: Creating the Winning Formula to Compete with Global Franchises

I am one with the world. I am unique. I want it now.

CONCERNEDCUSTOMIZED CONVENIENT

Source: Francorp Philippines

Page 12: Creating the Winning Formula to Compete with Global Franchises

• Overseas workers remittance• Expanding middle class• Diversity of consumer tastes and lifestyles• “Mallification” of Asian cities• Bulging youth population in South and

Southeast Asia• Rapid aging population in Northeast Asia and

Singapore• Widespread use of English• The telecom revolution• Spread of university education

Page 13: Creating the Winning Formula to Compete with Global Franchises

The ASEAN Economic Community is an excellent opportunity for us to learn how to become more global in our marketing plans and product development.

Page 14: Creating the Winning Formula to Compete with Global Franchises

We have to work together to realize the collective goals of the AEC:• To make ASEAN a single market and production base• To make ASEAN a highly competitive economic region• To make ASEAN a region of equitable economic

development• And to make the region fully integrated into the global

economy

Page 15: Creating the Winning Formula to Compete with Global Franchises

Philippines:-100 million population-English-speaking and service-oriented labor force-Training hub

Indonesia:-Largest market in ASEAN (250 million)-Positive consumer outlook

Malaysia:-Generous government support to the franchise sector

Singapore:-Financing hub-High GDP per capita (USD 55,000)

Brunei:-Substantial foreign reserves

Thailand:-Geographical center of ASEAN-Gateway to CLMV

Cambodia, Laos, Myanmar and Vietnam (CLMV):-The emerging economies of ASEAN

Page 16: Creating the Winning Formula to Compete with Global Franchises

Let us work together to make ASEAN a home to global franchise brands.

Terimah kasi!