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FRANCHISE BUSINESSES AND MARKET PERFORMANCE Aficionado Germany Perfume was manufactured and distributed nationwide by Central Affirmative Co., Inc. It all started by a man in the person of Mr. Joel Cruz in 1999. With a couple of hundred pesos, Sir Joel decided to put up perfume business where he seeked the assistance of his friend who is now the Vice President Internal of the company. The house of Sir Joel’s mother located in Sisa St. Sampaloc Manila became their marketing office. They have developed the product in best quality and affordable prices and named the product as “AF” or AFFIRMATIVE. This is where JOEL CRUZ ENTERPRISE was born. Initially, the product was sold at the first outlet of Ever Gotesco-Grand Central in Caloocan City. But the demand of the product in the market continues to grow that the garage area can no longer accommodate the production of the product. The company then rented a small, two-storey apartment along the same street in Sampaloc, Manila. In year 2001, the company was register as a corporation, now called, CENTRAL AFFIRMATIVE COMPANY, INC. In September of 2001, the brand name AFICIONADO- Germany Perfume was granted registration and became the trademark brand of the product. The growth of the company has continuously expanding from Metro Manila, to Luzon, Visayas and Mindanao. The company ventures again in Franchising business. The first Franchise outlet opened in Laoag in March 2004.

Franchise Businesses and Market Performance

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Page 1: Franchise Businesses and Market Performance

FRANCHISE BUSINESSES AND MARKET PERFORMANCE

Aficionado Germany Perfume was manufactured and distributed nationwide by Central Affirmative Co., Inc.   It all started by a man in the person of Mr. Joel Cruz in 1999.   With a couple of hundred pesos, Sir Joel decided to put up perfume business where he seeked the assistance of his friend who is now the Vice President Internal of the company.  The house of

Sir Joel’s mother located in Sisa St. Sampaloc Manila became their marketing office.  They have developed the product in best quality and affordable prices and named the product as “AF” or AFFIRMATIVE.  This is where JOEL CRUZ ENTERPRISE was born.

Initially, the product was sold at the first outlet of Ever Gotesco-Grand Central in Caloocan City.  But the demand of the product in the market continues to grow that the garage area can no longer accommodate the production of the product.   The company then rented a small, two-storey apartment along the same street in Sampaloc, Manila.

In year 2001, the company was register as a corporation, now called, CENTRAL AFFIRMATIVE COMPANY, INC.

In September of 2001, the brand name AFICIONADO- Germany Perfume was granted registration and became the trademark brand of the product.  The growth of the company has continuously expanding from Metro Manila, to Luzon, Visayas and Mindanao.

The company ventures again in Franchising business.  The first Franchise outlet opened in Laoag in March 2004.

In July 2005, with the company’s dynamic Research and Development team launched its new product extension, the Aficionado Bath and Body Spray mostly commonly known as Aficionado cologne.

Right now, they have 60 franchise stores out of a total of almost 150 stores nationwide. They are  happy to hear the testimonies of our several franchise partners about the success of their Aficionado business and how they are proud to belong to the number one (1) in the industry in terms of market scope and share in the country.

FINANCIAL SHARE OF AFFICIONADO PERFUME

Page 2: Franchise Businesses and Market Performance

YEAR GROSS PROFIT

2005 3,718,740

2006 4,492,627

2007 5,128,609

2008 6,392,280

2009 7,391,014

The figure shows that only two percent of market shares among perfume businesses were created by the Aficionado perfume house. Among other competing perfume houses, Aficionado was able to maintain its’ annual sale of 7,000,000 as being franchised in all over the country. We have included Victoria’s Secret, Polo perfumes, CK perfumes and Bench Perfumes as the main competitors in the perfume industry being listed to the most outstanding Perfume houses in the country.

For 15 years, Potato Corner has been the leader in the food cart/ kiosk/ counter-type business in the Philippines. Aside from the popular flavored French

Page 3: Franchise Businesses and Market Performance

Fries , we also offer other delectable products such as baked potatoes, hash browns and loopy fries.

The company, Cinco Corporation, launched its operations in the Philippines in 1992. After three months, its Franchise operations began. By 1994, Potato Corner grew to having 70 outlets – a combination of carts, kiosk, and counters.

Potato Corner managed to weather 1998′s Asian economic crisis. Boastfully, it is on its track in its planned hyper-growth year by targeting to increase its revenues by 100% versus last year. At present , Potato Corner has 170 outlets and continues to grow.

FINANCIAL SHARE OF POTATO CORNER

YEAR GROSS PROFIT

2006 3,888,654

2007 5,567,732

2008 5,978,965

2009 4,753,234

Icebreaker Scrambles offers you an excellent ice-shaved desserts at a very

Page 4: Franchise Businesses and Market Performance

reasonable prices. Probably the first to serve the tastiest and cleanest scrambles in places like malls and other prime locations.

With its original and distinct taste, IceBreaker Scrambles will bring you back to the nostalgic and delighted times of your childhood, but with a twist! This is because these desserts are prepared with the outmost standards in quality and hygiene, using only purified water as ice and imported dairy products to come up with a flavorful result.

As of this writing, there are 33 foodcart stations located in the Philippines.

Additionally, IceBreadker Scrambles will chill your kids party! Now you can enjoy this scrambles freshly-made at your own event! If you cannot go to us, we will quench your thirst at your own convenience.

FINANCIAL SHARE OF ICE BREAKER SCRAMBLE

YEAR GROSS PROFIT

2010 5,367,157

Bibingkinitan is the today’s market-leading bibingka-chain and first to introduce mini-bibingka in the Philippines.  With 130 stores nationwide in key cities like Cebu, Davao,

Page 5: Franchise Businesses and Market Performance

Baguio, Pampanga, Iloilo, General Santos City, etc.  Filipinos in the whole country can easily enjoy their soft and moist bibingkas anytime, anywhere.  Bibingkinitan was also awarded the Fastest-Growing franchise in the 2007, 2008, 2009 Franchise award by Entrepreneur Magazine and is currently undergoing HACCP and ISO Certification for Excellent Product Quality.

FINANCIAL SHARE OF BIBINGKINITAN

YEAR GROSS PROFIT

2009 8,592,280

2010 9,391,014

Khaleb Shawarma was first established on July 27, 2006.  The name “Khaleb” was obtained from the word “Khalel” which is the name of Superman in Kryptonite, and is also a Hebrew word which means “God of Man”.  It also connotes “superiority”.  In addition, a not so profound secondary definition was acquired through the owner’s nicknames and the initial of their surname. To combine them makes Khaleb.

Page 6: Franchise Businesses and Market Performance

Despite being relatively new in the market, the company is working its way to expand its reach by the help of advertising.  The company was featured in a business magazine of a newspaper and was just featured in some famous  show.   It is also being requested for school, corporate gatherings and special events- UP Centennial Celebration, UP Lantern Parade, UPCAT, UP Fair, Ruffa Gutierrez’ RAMP for a Cause and World Pyro Olympics to name a few.  It also does catering to special occasions.  The company often caters in Malacanang for some special functions of the First Family such as birthdays, reunions, meetings with cabinet members and other government officials.

FINANCIAL SHARE OF KHALEB SHAWARMA

YEAR GROSS PROFIT

2007 6,897.096

2008 5,978,965

2009 6183,234