V-KOOL INTERNATIONAL
Franchisor Case Study: VKOOL International
Date: 21 Oct 2010
Presented by: Winston Tang
Franchising: A Right Decision?
Scope
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The V-KOOL Journey
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Introduction to key milestones, global network and strategic thrusts
Why Franchising?
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The window film industry structure and competition
Benefits of franchising
Identifying value propositions, establishing the franchise system and
gearing up for market expansion
Embracing Challenges
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Issues pertaining to the domestic and international markets,
franchisor and franchisees
Success Factors
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Building blocks to increase franchise competitiveness
“Asian Dragons Rising”
(V-KOOL)
The Journey Begins…
V-KOOL Milestones
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1994: Secured distribution rights of high performance
window films for Singapore, Malaysia and Brunei. Product
was marketed under the brand name “V-KOOL”.
1996: Distribution rights extended to entire South-East
Asia and subsequently Middle East and North-East Asia
regions.
1997: Global exclusive distribution rights obtained.
1998: Birth of the V-KOOL Franchise.
2001: Set up of Middle-East (Dubai) regional HQ
2002: Set up of North-Asia (Shanghai) regional HQ.
Global Network
V-KOOL HEADQUARTERS, Singapore
V-KOOL REGIONAL HEADQUARTERS
Shanghai
Beijing
Shenzhen
Dubai
Master Franchise Countries
Unit Franchise Agreement
Unit
Franchisees
Country Franchisees
Tokyo
Global Network
North & South America
Dominican Republic
Guatemala
Mexico
USA
Europe
Germany
Greece
United Kingdom
The Netherlands
Middle East & Africa
Bahrain
Egypt
Kuwait
Oman
Qatar
Saudi Arabia
UAE
North & West Asia
China
Japan
Hong Kong
India
Taiwan
Southeast Asia
Indonesia
Malaysia
The Philippines
Singapore
Thailand
Vietnam
Oceania
Australia
Guam & Saipan
Global Network
Mission: To provide
window film
solutions based on
best-in-class
products and skillful
delivery systems
and to reward and
value-add to
franchise partners.
PartnerCare: We
strive to remain as the
preferred OEM/PDI
partners through
providing unparallel
services and
contributing to their
bottom-line.
Strategic Thrusts
CustomerCare: As a global,
world class brand, we deliver
outstanding customer and
brand experience
consistently throughout the
world.
EnviroCare: We
care for the
environment
through our untiring
efforts in educating
our stakeholders to
be responsible
social citizens.
Why Franchising?
The Window Film Industry
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Distribution Mode
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Low entry barrier for dealers (e.g credit terms, set-up
requirements, A&P activities, etc)
Extensive channels / network
Manufacturers going direct
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Cost benefits
Multiple brands
Private labels
Fragmented Playing Field
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No dominant leader
Stiff competition - internally and externally (I.e. price war)
Lack of product differentiation and brand association
Benefits of Franchising
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Reduce expansion risks
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(e.g. cultural context, legal implications, financial capital,
overheads, manpower, accumulation of depreciating assets, etc)
Additional sources of revenue
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(e.g. franchise fee, royalties, etc)
Leveraging on franchisees’ network / contacts and
resources
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Understanding of market and competitor analysis
Adopting new market strategies and ideas
Better Quality control
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Global brand positioning and credibility
Service standards
Value Proposition
Distribution Mode
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Market cannibalization
Price war
Weak brand / product
reputation
Low loyalty and
commitment from
dealers
Lack of consistency in
installation and service
quality
Scattered network
Franchising
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Learning curve - proven
expertise
Territorial exclusivity
Strong Brand / Product
reputation
Extensive support from
Franchisor
Reliable systems and
processes to ensure
consistency
Principal more focused
V-KOOL Franchise Model
Direct Franchise
Agreement
V-KOOL
International
Pte Ltd
Area/Unit Franchisee
(Dealer, New Entrant)
Area Franchise Agreement
Master Franchise
Agreement
Area Franchisee
(Dealer, New Entrant)
Master
Franchisee
Company-owned
Franchisee
Unit Franchise Agreement
Unit Franchisee
(Dealer, New Entrant)
V-KOOL Franchise Model
Leads Generation
Step-by-Step guide to managing prospects
Market Franchise
Conduct 2nd
Meeting
Receive Enquiries
and Applications
Review Business
Plan
Acknowledge
Applications
Conduct Tour &
Meeting
Process
Applications
Shortlist Suitable
Candidates for 1st
Meeting
V-KOOL Franchise Model
Leads Generation (cont…)
Step-by-Step guide to managing prospects
Execute the
Franchise
Agreement
Offer of Franchise
Commence
Operations
COMMENCE START - UP ACTIVITIES
Organise
Launch
Programme
Conduct
Initial
Training
Renovate
Premises
V-KOOL Franchise Model
FRANCHISOR
Operations Format
Product
Processes
Marks & Image
Management
Support Training
FRANCHISE
AGREEMENT
Franchise Fees
Royalty
Start-up
Consultancy
Product Purchase
Full-fledge Outlets
MASTER
FRANCHISEE
Service Standards & Behavior
Corporate Identity Manual & Brand Book
Standardizing corporate image and branding
Service Standards & Behavior
Fit-Out Guide Book & Retail Walkthrough Video
Uniformity full-fledged retail outlet design
Physical Premises
V-KOOL® Full-Fledged Outlet
Reform retail interface from multi-brand to exclusively V-KOOL retail point
V-KOOL China
More than 100 exclusive VKOOL retail outlets
proliferate in China
Physical Premises
V-KOOL® Full-Fledged Outlet
Reform retail interface from multi-brand to exclusively V-KOOL retail point
Training & Enrichment Modules
E-Academy
Online learning platform for V-KOOL® franchisees / distributors & internal staff etc
Online Tracking Systems
IES (International E-Warranty System)
Online warranty system that enables sales and performance analysis
Tools and Equipment
Demonstration Equipment
Seeing is believing; demonstrating the technology through a total experience of sight and feel
Reflecto-Max
iMeasure
Beam Splitter
Infinity (Temperature)
Thermal Trap
Impact Test
Test Reports
Simulation Test Research
Performance comparison among various film brands on cars of Honda, Chevrolet and Toyota,
which is communicated at retail and car showroom level
Product Innovation
V-KOOL ULTRAMASTER™
Extension into premium auto-care products
Product Innovation
V-KOOL® Tattoo
First-ever printing on window films that will revolutionize driving experience
- Individualization. Expressive. Charismatic.
Events
V-KOOL® RoundTable 2010 - One World
Strategic programme launches. Experience sharing. New marketing collateral s & systems.
Events
V-KOOL® RoundTable 2010 - One World
Strategic programme launches. Experience sharing. New marketing collateral s & systems.
Events
V-KOOL® RoundTable 2010 - One World
Strategic programme launches. Experience sharing. New marketing collateral s & systems.
Channel Strategies
PDI Penetration through OEMGlobus™
A special dedicated programme to assist franchisees to penetrate into PDI market
BMW China
Channel Strategies
V-KOOL® Boutique Outlet
Bringing V-KOOL® retail experience into shopping mall
Channel Strategies
V-KOOL® in Petrol Kisok
Bringing V-KOOL® retail experience into petrol kisok in UAE
Success?
Challenges (Franchisor)
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Leads Generation for New Franchise Prospects
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Good prospects: Hard to come by!
Assessing capabilities and potential of prospects
Franchise System and Requirements
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“Double-edged sword”
“80:20 Rule”
Managing Franchisees
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Understanding cultural and market nuances
Proximity issues
Taking lead - Franchisor or Franchisee?
Staying Relevant
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Innovation - developing new products, monitoring and
responding to market trends
Challenges (Franchisee)
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High Level of Investment
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High start-up cost
The need to justify ROI
Learning curve
Brand Building - Who is responsible?
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Role of the franchisor vs role of the franchisee
Support from franchisor
Fulfillment of Contractual Obligations
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Purchases: In line with economic/industry growth?
Corporate identity
Account servicing from franchisor (I.e. training, ground visits,
strategic directions, etc)
Success Factors
Strong Brand
Innovative Product
Sufficient Resources
Experienced
Franchisor
Localization
Good
Franchisee
Strong
Partnership
SUCCESSFUL
FRANCHISE
Extensive
Network
Successful
Business Format
Q & A?
THANK YOU