CASE ANALYSIS

CARPENTER’S TAN
HANDICRAFTS
CO.,LTD:FRANCHISE
SATISFACTION

GROUP-15
Jayesh Sonavdekar-2310212
Dhanavath Vanaja-2310204
Tushar Bhakre-2310200
Nikgam R Marak-2310232
Komal Meena-2310219
Manoj Kumar - 2210177
 OVER VIEW OF CASE
• Qi Zhang, a petroleum engineer was working with the Liaohe
oilfield of CNPC(China National Petroleum Corporation), a
large, state-owned oil enterprise, in panjin city.
• She resigned from her job to start her own business at the end
of 2011. She has limited savings and no prior knowledge and
experience in business.
• She spent an investment of about 140,000 -185,000 yuan. to
open the first store.
• she earned her entire investment back after half a year. she
experienced a bottleneck after the growth and profitability of
the business in 2013.
• she opened a second franchise store in may 2014. it took her
10 months to break even.
• she has reached stagnant growth. She has to decide now
whether she wants to open a third franchise store.
• She must also find a solution to decrease her operating costs,
diversify her portfolio, and make her business more profitable.
 FRANCHISE SATISFACTION MODEL
Purpose:To measure and improve franchisee satisfaction by focusing on key factors influencing their experience and success.

Components and Analysis:

Autonomy:
Training and Support: Analysis: Collect feedback on decision-making
Analysis: Evaluate feedback from autonomy. Adjust policies to provide more
franchisees on training programs. flexibility while maintaining brand consistency.
Communication: Brand Value:
Analysis: Conduct surveys to Analysis: Monitor brand perception through
understand franchisees' satisfaction with customer surveys and market research. Offer
communication methods. marketing templates and campaigns to maintain a
Financial Performance: unified brand image.
Analysis: Analyze financial data to Conflict Resolution:
identify common challenges. Offer Analysis: Review past conflict resolution cases to
financial planning workshops and identify trends and areas for improvement.
Establish a clear and efficient process for
personalized support.
addressing franchisee concerns.
 4P ANALYSIS

Product Place Price Promotion

Only carpenter tan’s limited
products such as wooden Zang chose to select busy carpenter Tan had Promoted through creative
combs,mirrors ,hairpins,and streets of a business center standardised pricing and ads on TV and News papers
other wooden crafts could be to increase visibility offered no discounts
sold preferred by high - end
customers
 Effects of franchisee dissatisfaction on the development of franchise model
Slowness in Growth
• Reduced expansion of
franchise stores
• Limited geographical
presence
Increased Marketing
Costs
• More spending required to
attract new franchisees
• Higher costs to rebuild
brand trust
Decreased Customer
Reach
• Fewer locations lead to
lower market penetration
• Reduced brand visibility
Brand Reputation
Damage
• Negative word-of-mouth
and online reviews
• Erosion of consumer trust
Loss of Franchisee
• Franchisees may switch to
competitors
• Potential for franchisees to
open independent businesses
Difficulty Attracting
New Franchisees
• Reputation issues deter
potential investors
• Increased skepticism about
franchise viability
 How could zhang’s satisfaction be improved?

Incentivising franchisee by supporting with marketing activities

Promote Festival offers & discounts

Adding product categories & increasing product portfolio

Incentivise Zhang for opening more franchise outlets

Offer bundle products & flexible pricing

 As Zhang, would you set up a third franchise store? Why? -YES

CONS
PROS

Hassle free business setup Opportunity loss to explore and exploit new market

Guaranteed profits No business growth due to stagnant profits

No/Less Competitors Saturated market - catered to limited population

Reduced marketing efforts New competitors will gain market share

High bargaining power New business takes time & efforts to generate profits
THANK YOU!