PSI presentation_WSM_22April2013_final
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Franchising has proven to be an effective model for scaled, sustainable health impact in emerging markets, as exemplified by Population Services International's (PSI) social franchise network in Myanmar. [PSI] has adapted McDonald's successful franchise business model, implementing foundational principles of quality, equity, access, and value. PSI's 1,509 Sun franchisees provide reproductive health and treatment services for pneumonia, malaria, diarrhea, tuberculosis, and sexually transmitted diseases, contributing to 14% of Myanmar's TB treatment and other major health impacts. While challenges include ensuring quality and measuring impact, social franchising shows promise as a means of aligning provider and consumer needs at scale through standardized operations and ongoing funding.
PSI presentation_WSM_22April2013_final
- 1. From Big Mac Munchies to IUD Insertions Dr. Han Win Htat Marketing Director Population Services International/Myanmar 23 April 2013 World Social Marketing Conference Toronto
- 2. Is franchising a solution to scaled, sustainable health impact in emerging markets?
- 4. Taking a proven business model to scale efficiently to minimize business risk.
- 5. What is McDonalds? Global Brand Franchise Number of Global Restaurants: 34,000 + worldwide Number of Countries: 119 Number of worldwide employees: 1.8 million Number of customers per day 68 million Source: McDonalds
- 6. The Business Model Foundational Principles Mission Values Brand Standards Franchise Operating System Financing
- 7. Quality Service Cleanliness Value Foundational Principles
- 8. If I had a brick for every time Ive repeated the phrase Quality, Service, Cleanliness and Value, I think Id probably be able to bridge the Atlantic Ocean with them. Ray Kroc The Ray Kroc Story
- 9. We aspire to be our customers favorite place and way to eat and drink. Mission
- 10. We place the customer experience at the core of all we do. We are committed to our people. We believe in the McDonalds System. We operate our business ethically. We give back to our communities. We grow our business profitably. We strive continually to improve. Values
- 11. The Brand
- 12. All restaurants perform to the standards expected in three key areas: Quality Service Cleanliness These standards are used to maintain the brand. Standards
- 13. The Franchise In business for yourself, but not by yourself. Ray Kroc
- 14. 1. World Class Training 2. World Class Service 3. Support System
- 15. Ongoing Fees Materials, consumables and equipment Monthly service fee (4% of monthly sales) Monthly rental fee To be a McDonalds franchisee in the US costs around US$750,000, non- borrowed personal resources. Financing
- 16. McDonald's Corporation earned $27.6B with $5.5B net income. In 2012,
- 17. Is franchising (social) a solution to scaled, sustainable health impact in emerging markets? YES
- 19. 1,509 Sun Franchisees Reproductive Health Pneumonia Malaria Diarrhea Tuberculosis Sexually Transmitted Disease PSI/Myanmars Social Franchise Network
- 20. Quality Equity Access Value Foundational Principles
- 21. To empower people to live healthier lives, by making markets work for the poor Mission
- 22. Results Accountability Professionalism Innovation Dignity of choice Service Values
- 23. The Sun Quality Health Brand The Brand
- 27. Service Delivery Standards Medical standards Marketing standards Customer experience standards Productivity standards Standards
- 28. The Franchise
- 29. Operating system Selecting and Maintaining high performing franchisees: Improving the quality of services offered: Increasing the quantity of services delivered: Standards Management: Skills development: Client referrals: Rewards and Recognition for good performance:
- 30. Client side schemes include: Vouchers Conditional cash payments Travel reimbursement Financing Provider side schemes include: SQH Quality Points Scheme Performance based financing schemes Client registration fees Provision of free drugs with the support from National TB program
- 31. In 2012, PSI/Myanmars Sun Networks contributed 14% of national TB treatment 100,000 pneumonia treatment for Children under 5 1.5 million RH consultation (15% of national FP) 60,000 malaria treatment 56,000 STI treatment 11,000 provider initiated testing and counseling 270,000 diarrhea treatment Impact page 31
- 32. Aligning provider and consumer needs Securing ongoing financial inputs from donors Local complexities and constraints Ensuring and measuring quality in the network is resource intensive Challenges to Success page 32
- 33. PSI has adopted a very similar approach to McDonalds to achieve our desired results. PSIs franchise is a fractional franchise . McDonalds is a full franchise. Mc Donalds measures success in dollar profits. PSI measures its success in terms of Health Impact. So how different is Sun from McDonalds? MCD's and PSIs SF business models are basically the same.
- 34. >> 75 Programs >> 40 Countries >> 45,000 Clinics >> 32,000,000 Clients SOCIAL FRANCHISING IN 2013 Family Planning, TB, Malaria, Pneumonia, Safe Delivery, STD Care, Diarrhoea, Nutrition Global Health Group, 2013 SOCIAL FRANCHISING AROUND THE WORLD
- 35. If you want to know more. www.psi.org http://www.sf4 health.org/ hwhtat@psimyanmar.org
- 36. THANK YOU Non of Us is as Good as All of Us. Ray Kroc