LIZARRAN IN ASIAN MARKET

GRUPO 2. MDCI GRANADA

PoliticalPolitical StabilityGovernment influenceFiscal Policy:-Not reduced tariffs (Taiwan)-Double taxation agreement (India, Japan)

EconomicMarkets where sector´s service has a major roleSolid(Taiwan,Japan)and growing economies (India)Good consumer purchasing powerAttractive markets for foreing investment

SocialLanguage(China)Religion (Theravada Buddhism).High concentration of polutation in urban areasConsumer behavior

Technological Infrastructure (Singapore & Hong-

Kong). Logistics (Singapore) Software development

establishments

LegalFlexibility franchise regulatory framework (Taiwan)No specific legislation for the franchise model(India)Bilateral agreement on social security (avoid double quote) Japan

Environmental Factors

Environmental regulations (South Korea).

PESTEL’S ANALYSIS

1999 2000 2001 2002 2003 2004 2005 … 2011 2012 20130

50

100

150

200

250

300

3148

6279

102126

152175

220

280

Nº Establishment

ECONOMY & EXPANSION

2001 2002 2003 2004 2005 2006 …. 2008 2009 2010 …. 2012 2013 2014 20150

10

20

30

40

50

60

70

1417

23 24 2623

3330

24

45

60 62 62

Nº Opening Establishment

ECONOMY & EXPANSION

2003 2004 2005 2006 …. 2012 20130

50

100

150

200

250

54.2 6475.6 82

160

195

Turnover mill. €

102 126 152 175 Nº Establishment 220 280

ECONOMY & EXPANSION

YEAR 2011

NEW OPENING

41ESTABLISHMENT

INVESTMENT

12,5 MILL. €

YEAR 2012

INTESTMENT

18 MILL. €

YEAR 2005

Fixed Assets 3,9 mill €

Working Assets 3,8 mill €

Equity 2,1 mill. €

Short term creditors 3 mill €

YEAR 2010

Fixed Assets 28,7 mill €

Working Assets 6,7 mill €

Equity 8,2 mill. €

Short term creditors 0,9 mill

NEW OPENING

26

ESTABLISHMENT

NEW OPENING

24

ESTABLISHMENT

NEW OPENING

60ESTABLISHMENT

Despite the increase in turnover Same average of opening establishment per year.

Growth could be much faster than it has had so far.

Mater Franchise model = Possible fast growth without large investments.

Growing opportunities are much greater.

FINANCE CONCLUSION…

Making the know how

tangible.

International adaptation.

Healthy recipes.

The environment created.

Increase its business

volume.

Variety of select “Pinchos

& Tapas”

Unknown franchises

Markets.

Poor International image

Lizarran.

Differents cultures & type

of food.

Obtain some spanish

products.

Spanish brand: Icon, values…

Habit of eating out.

Increasing the tapas sector.

Large number of tourists.

Spanish restaurants with

success.

Different food (Asian

countries).

High international restaurants

competition.

New countries. Barriers.

Corruption.

POSITIVE NEGATIVE

INTERNAL

EXTERNAL

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

S.W.O.T.

WHAT SELL?

PINCHOS & TAPAS

PICAR

IMAGE OF SPAIN

WARM & RELAXED ENVIRONMENT

JAPAN

TARGET COUNTRIES IN ASIA

Population: 1,27

billionGDP: 1,848 billion USD

GDP (PPP) Per Capita: 3,700 $

Export: $225,3

06 million

Import: $264,0

00 million

EVOLUTION…

Population of over 300 million.

50% eating out.

Beer & Wine.

Source: CIA 2011

THE HABIT IS CHANGING…

30%

25%45%

27%

Evolution of Franchise model by Sectors(2011)

EducationHealthRestaurantClothing

Source: Icex-Modelo franquicia 2012

Plot No.10, Shinivagalu Main Rd, Koramangala 4th Block, Bangalore,

Karnataka 560034, India

+91 80 4141 0124 

COMPETITORS…

12th Main Rd. Indira Nagar.Bangalore, Karnataka 56003809845044470

COMPETITORS…

Population:

23,434 m GDP:

$466.054 b

GDP (PPP) Per Capita: $38,486

Export: $288.2 billion

Import:$261.6 billion

MAJOR MACRO ECONOMIC INDICATORS2010 2011 2012 2013

GDP growth (%)

10.7 4 1.3 2

Inflation (yearly average) (%)

1 1.4 2.1 2

Budget balance (% GDP)

-3.3 -2.2 -2.8 -2.8

Current account balance (% GDP)

9.3 8 6.9 7.3

Public debt (% GDP)

32.1 40.5 41.7 40.9

Source: Coface

Source: ICEX

35%

11%23%

32%

Evolution of Franchise model by Sectors (2011)

RestaurantEducationOthers serviciesRetailers

THE HABIT IS CHANGING…64% eating out.Consumption beer 2011: CAGR 1%.Imports of wine 2011: $123,67 million.

COMPETITORS…

No.3, Alley18, Lane130, Ming-Sheng E.Rd, Taipei

菠菜野菇蛋餅 Tortilla 250

蒜味蘑菇 Pan-fried mushroom w/garlic 250

蜂蜜芥粖籽燒烤牛肉塊 Roasted Boneless Beef Ribs 350

黃金奶油田螺 Creamy Cheese Escargot 280

巴塞隆納炸鮮蝦 Deep fried Prawns w/ Aioli sauce 350

馬鈴薯拌炒香辣醬 Fried potato w/aioli and spicy sauce 200

西班牙起司火腿炸奶糊 Cheese/Ham croquettes 250

蒜香白酒悶淡菜 Mussels w/white wine and garlic 280

香煎火腿捲蜜瓜 Caramelised Melon and Parma ham 280

牛肉小串燒 (美國 ) Beef cho cho(U.S.A) 280

起司脆薯條 French fries w/cheese 200

MIGAS W/Parma ham,fried Potatos and Fried Eggs 280

馬德里雞翅 Chef Special Fried chicken wings 280

露露香料肉丸 Deep fried Meatballs w/mixed Herbs 280

香蒜辣味中卷 Pan Fried Calamari w/ garlic and chili 280

爐烤紅椒雞肉串佐西班牙鹽之花

Chicken Kabobs w/smoked paprika 300

西班牙香腸白鯷魚烤薄餅

Roasted pita bread pizza w/ chorizo and white anchovies 300

TAPAS CALIENTES Hot Tapas :Plus 10% service charge 以上餐飲均需加一成服務費

COMPETITORS…La Caja de MúsicaChang An west Rd. 138 Lane, 3 Alley, N18 Taipei

Population:

127.8 million

GDP: 4.4 trillion

USD

GDP (PPP) Per Capita:

38,559 $

4.2% Unem

p.

Import: 761,883 million

Source: Federal Reserve Bank of New York

Japan has 11 cities with

populations of more than

I million

Is one of the world's largest

markets for health and functional

foods

Tokyo (and central

Yokohama), are easily the largest place on earth to

buy cookware and restaurant

equipment

And there is a few spanish

restaurants in Japan that

serves casual food as

Lizarran does

Japanese consumers place a high value on new experiencies.Looking for therapeutic atmosphere.Actually, more than 70% enjoy dining out at least once or twice monthly for enjoying conversation over food.And a 18% enjoy dining out to better enjoy drinkingLizarran tactics in asociation with high quality hotels could be interesting

THE HABIT IS CHANGING…

Bar de Tapas el MarShin Osaka Esaka,

Tokyu Inn

The main competitor of Lizarrán in Japan is " Bar el Mar " a franchise of "Spanish" bar that exists in Osaka´s Prefecture (concretely in Esaka). The environment is very nice and the plates are not bad, but they do not coincide to 100 % with his Spanish homonym.Cooks are Japanese formed in Japan.The worse thing is that the quantity is scanty enough and the price raises a bit.

COMPETITORS…

“People who are attracted by Spain” TOURISTS

MIX EXPATRIATES

LOCALS

TARGET GROUP…

TouristPeople who feel

passion for Spain although they are in another

country”

Expatriates“Spanish

people who want to feel

at home”

Locals“ People who know and are attracted by

Spain”

INDIA• Growing at 38%

annually.• No specific

legislation• Restrictions:

Business location,Correct placement,Reduced local consumer knowledge,Hired staff,Selection of franchisees,Alternative supply channels

TAIWAN• Use single Master

Franchisee• Choice Spanish

laws or Taiwanese• Saturation

franchising sector• Barriers logistics • Spanish

franchisee: 1.Spain VAT exemption. 2.Subject to taxes of the taiwanese import

JAPAN

• Complex Japanese franchise system.

• Logistics: importants ports for trade

• Export not tariff taxes

MASTER FRANCHISE

LOCAL PARTNER

FINANCIAL INFORMATI

ON

COMPANY HISTORY

LINE OF BUSINESS

CLIENTS AND SUPPLIERSOPINION

COMPANY SIZE

COUNTRYKNOWLED

GE

SECTOR KNOWLEDG

E

LOCAL PARTNERS…

MARKET RESEARC

H

COMPETITORS

RESTORATIONSECTOR

PHYTOSANITARY STANDARDS

FRANCHISE

SECTOR

SUPPLIERS

PRICES

DEMAND

MARKET RESEARCH

BUSINESS ALTERNATIVE…

4 or 5 star hotels in AsiaPremium brands Foreign tourists, executives and businessmen with high purchasing power

"As compared to other neighbourhoods, Koramangala and Indira Nagar are more cosmopolitan in terms of demography. The firms attract a lot of non-Bangaloreans and expatriates”“Koramangala ideal for any business startup”

MALL IN KORAMANGALA

In India…

COMERCIAL AREA IN INDIRA NAGAR

In Japan…

Tokyo (Shibuya District)Yokohama (Minatomirai)Shopping malls

QUEEN’S SQUARE YOKOHAMA

SHIBUYA 109

TaipeiDaan and Xinyi DistrictsShopping Malls

In Taiwan…

TAIPEI 101. XINYI DISTRICTDAAN DISTRICT

The way in which Lizarran is managing to expand is extraordinary, adopting the

system of Master-franchises, this play was very intelligent.

Lizarrán's great success owed to its aptitude to adaptation to

the circumstances.

A reasonable chance of success on the Asian market in the future will be the unprecedented growth of the middle class in South Asia

Get their goods to the importers who fuel this demographic tsunami

probabily will takes decades of Thinking Locally

GENERAL CONCLUSIONS…

SOURCES…

www.cia.gov.www.entrprisesurveys.orgwww.lizarran.eswww.fiab.comwww.icex.eswww.ivex.eswww.expansion.comwww.cofaceiberica.comwww.cesce.eswww.franchiseindia.comwww.1.agric.gov.ab.cawww.heritage.orgwww.comercioexterior.banesto.es

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