| VLCC Health Care Ltd has decided to roll out the franchise model to reach out the potential customers in the suburbs of India. The company is contemplating signing 55 franchise agreements across the country. Those will be operational in 2007.
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| Talking to Business Standard, the chief operating officer of VLCC Health Care Ltd, Yogesh Sethi, said the company had shortlisted five locations (Patiala, Yamunanagar, Raipur, Hissar and Mathura) to launch the franchise centres in the first week of January.
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| He said the company would simultaneously execute the same model for the VLCC Institutes in tier 2 and tier 3 towns. The Rs 200-crore company expects to earn about 25 per cent of its total revenue from the suburban market in the next two years.
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| To get a foothold in the emerging markets, the product pricing would be an important factor, said Sethi.
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| He said the market in smaller towns was quite price-sensitive and keeping this factor in mind, prices would be at the lower end in the new markets.
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| He added a three-pronged price strategy had been adopted by the company, in which prices were decided differently with a variation of 15-20 per cent in metros, tier 1 and tier 2 towns.
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| According to Sethi, the company would sign a five-year agreement with the franchisee and the partner would have to invest about Rs 30-40 lakh per location.
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| The franchisee will shortlist the staff and the company will do the final selection. These will be trained by VLCC.
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| To monitor and support the franchisee, a service delivery cell will be recruited to maintain the quality of services. VLCC will provide equipment sources, staff training and complete guidelines of different process and different treatments.
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| A project needs about three months to get operational. Sethi said this model would help residents of small towns to get an access to world-class beauty treatments. |
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