PRODUCT SELETION

1. Opportunity/ Identification
and Product Selection
• Content:
• Opportunity Identification
• Product Selection
• Conducting Feasibility Studies
• Entry Strategies
By: Prof. Sonali Patil, IIMS PUNE

3. Opportunity Identification:
• Profits
• Growth
• Power
• Employee satisfaction and development
• Quality Products and services
• Market Leadership
• Joy of Creation
• Services to society

4. Search for Business Ideas
• Observing Market
• Prospective Consumers
• Development in other Nations
• Study of projects profiles
• Government Organizations
• Trade fairs and exhibition
• Process the ideas
• Technical feasibility
• Commercial viability
• Idea Selection

5. • Input Requirement
• Information and intelligence
• Personnel
• Establishing of the Enterprise
Cont…

6. Product Selection:
• Elements of the Product Selection:
• Supply-Gap
• Fund
• Availability of access to raw Materials
• Technical Implication
• Profitability/ Marketability
• Availability of Qualified Personnel
• Government Policies
• Government Objectives

7. Product Selection Process
Idea Generation Screening
Testing
Product
Development
Analysis of Ideas

8. Conducting Feasibility Studies
• Market Feasibility
• Technical Feasibility
• Financial Feasibility

10. Franchising
Definition of Franchising
Franchising is a business model wherein an individual operates
their own location(s) of a larger, more established company. For
example, when you go to your local McDonald's, Subway,
Dunkin' Donuts, or nearly any hotel in the United States, you are
most likely at a franchise location.

11. Features of Franchise
1.Well established business
A franchise is a readymade and well established business that needs expansion. It is a
ready form of business seeking expansion in new market areas with the help of a
local representative.
2. Needs limited investment
As franchise business is already set up by the franchisor, the initial investment
required by the franchisee to enter and establish is relatively low.
3. Easy entry in new markets
As the goodwill and reputation is already set up in other countries, franchisor does
not require more efforts to enter in new markets. He is easily accepted in the new
markets.

12. Features of Franchise
4. Business has large establishments
Franchise has large establishments around the world and operates through a
network of local representatives in different market areas.
5. Helps in diverting business risks
By establishing outlets in different parts of the world franchise helps the
owner of the firm to diversify his business risks.
6. Results in a large turnover
Franchise results in large volume of sales. Society is benefited by the
management of franchisor and service skills of franchisee. Brand name and
bumper publicity results in a large turnover.

13. Features of Franchise
7. Separates labour and specialisation
Franchise results in division of labour and specialisation. The franchisor
concentrates on production, whereas franchisee looks after distribution and
service at a unit level. The advantages of division of labour and specialization
benefits both.
8. Allows use of brand name and trademark
In franchise selling the franchisor allows the franchisee to use his brand name,
trademark, service mark and management skills for developing and expanding
franchise business.
9. Business is based on mutual agreement
Franchise business is based on mutual agreement or contract setting out terms
and conditions for franchising. Agreement is based on the understanding
between franchisor and franchisee. To avoid disputes, agreement should be
drafted in a detailed manner.

14. Features of Franchise
10. Success needs a long-term relationship
For the successful functioning of a franchise business, both
franchisor and franchisee have to remain committed in their
long-term relationship, only then business will be mutually
rewarding. Strong franchisee relationship enables the franchisor
to sell a franchise more effectively, introduce needed changes
into the system very easily and motivate franchisee and their
managers to provide a consistent level of products and services
to their customers.