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After being in small franchise dairy product distribution more than 3years, dealing with small shops or kiosks with 50,000 - baht initial budget, Dairy Farm has expanded 120 franchise branches throughout Thailand. Recently, the veterinarian Bullavudth Rattanadhamrong, the Managing Director of Dairy Farm Co., Ltd. aims to launch the big project. He eyes on the bigger franchise sized as 15-25sqm which is required on amount of average 1.6 million baht budget (ranged on 1.2-2million baht).
"Just like a small boxer, if he is full of experience in facing the plenty of the same size enemies, it’s time to move on to something bigger. Same as the small businesses, such as noodles shops or coffee shops, they are striving to find the small, proper and excellent location which is currently difficult to be discovered due to the huge number of competitors in stead of big businesses that remains a few rivals" He also added the weight to his decision that “for the reason that Dairy Farm is still only one in the dairy product franchise. We need to create a new model to supply the demands of investors and the landlords as well as this will be our business progress. In the mean time, there remain 120 franchises with small budget of 50,000 baht. Accordingly, we are providing the opportunity to those small franchise owners who aim to expand and grow up their business by this big project.
"1.6 millions baht is included the entire details of investment which are shop decoration, 3 months rental, ready-to-sale products. The budget may be reduced if the investors already have their own equipments."
Initially, big budget franchise attracted the attention from many people. Nevertheless, we are still not prepared for this big project due we are improving on franchise system and strengthening our organization.
By the way, we are now ready to deal with this million franchise project. We has full of facilities such as our brand, logos, shop designs, fresh yogurts and soft serves as new products as well as our staff team and training center.
The franchise system planning has been cooperated with Fran Corp (Thailand) Co., Ltd.
Mr. Bullavudth commended about the new approach of the dairy product franchise that there are a number of franchise investment choices for investors such as coffee shops, bakery shops, and ice-cream shops but no dairy franchise does exist. Moreover, the dairy franchise business has grown up in an opposite direction to another franchise businesses according to Dairy Farm began our business from small market to large market but the others started from the big one to the small one.
He also declared that Dairy Farm prefer the outstanding permanent business growth so the investor who would like to join this project must be comprehensively qualified to the company’s policy due to it is huge investment and its long term 10 years contract.
Investment with ‘Dairy Farm’
Initial budget at 1.2-2 millions baht (average at 1.6millions baht)
- Own good location in community with size about 15-25 sqm.
- 10years contract (5+5)
- Loyalty fee 3%
- Marketing Promotion fee 2% and Local marketing promotion fee 2%
- Sales target at 240,000 baht per month
- 3 years payback guarantee
This project is Dairy Farm big crucial step forward. Being in this business for 3 year is the valuable data which can be utilized for selecting the qualified investor to be our franchise owner.Recently, Dairy Farm has Open House for searching investors for this project even if most of them are lack of providing a proper location; we urgently brought this matter back to find the solution. We are now carrying on negotiating with many landlords such as shopping malls, universities, large well known high schools and well known tutorial schools.The 50,000-baht franchises (2 years contract) are maintained to be located the current market zones which are suited to this franchises themselves depend on the size, the marketing, the clients and the profits.
Mr. Bullavudth aims to expand the huge franchise project about 10 branches in a year throughout Thailand (average 1 branch a month). Subsequently, he eyes on the big move to investing oversea that has been under the company’s research and forming the manpower.
He got this magnificent idea for expanding the dairy franchise in oversea after his business trip in 5 countries as Cambodia, Vietnam, India, China and Japan. By the way, the some of international laws that would be obstructed the investment have been solved by the Thai Government and other kinds of investment have been already brought to these countries mentioned above.
All in all, Mr. Bullawuth finally imagines of the further businesses than dairy products. He is also looking for life styles products such as healthy products, cosmetics and natural made costumes.
Link : ManagerWeekly 18-24 August 2008 |