INTERNATIONAL MARKETING

JOINT VENTURE, FRANCHISING,

LICENSING

AND C AS E S T UD Y OF C I RC LE K
 TIMELINE

JOINT VENTURE
Define, Characteristics &
Example

FRANCHISING

Definition, Characteristics and

Circle K case study

LICENSING
Definition, Distinguish with
franchising

CONCLUSION
JOINT VENTURE
Definition, Joint venture agreement,
Benefits of joint venture, Types of joint
venture and examples
DEFINITION
A contractual agreement joining
together two or more parties for
the purpose of executing a
particular business undertaking. All
parties agree to share in the profits
and losses of the enterprise.

INTERNATIONAL MARKETING
 More specifically, a JV agreement should

JOINT VENTURE
specifically detail the following:
- Structure
- Objective
AGREEMENT - Confidentiality
- Financial Contributions
- Assets and Employees
The specifics are of crucial importance for avoiding
problems later on. - Intellectual Property Ownership
The parties should state specifically the purpose - Management
and goal of the venture, as well as the ventures
limitations. - Profits, Losses, and Liabilities Disputes
- Exit Strategy
PREPARED BY NICOLE LIM LLIC, 2020
 NEW
P R O D UCT S & S E R V I C E S

$
SAVE MONEY
Enables the parties to
offer their customers
new products and
services

Helps the parties to save money

in operating, marketing, and
advertising costs

TIME
Helps the parties save time

BENEFITS
BUSINESS GAIN COMMITMENT
Helps the parties acquire Enables the parties to gain Does n ot require a l o n g - t e r m

new technological know- commitment

new business associates and
referrals how or new geographical
market territories
 TYPES OF JOINT VENTURE

Private Com panies gaining access to resources /

01 technical capabilities

Government bodies for building infrastructure

02 (Public Private Partnerships)
FRANCHISING

Arrangement where one party (the franchiser)

grants another party (the franchisee) the right to
use its trademark or trade-name as well as
certain business systems and processes, to
produce and market a good or service according
to certain specifications.
 Business format franchises

01 Most popular type. The drawing just before is mentioning

this type
Eg: McDonalds, KFC, Starbucks Coffee

Product Franchises

02 Similar to supplier-dealer relationship. But, franchisee is

required to observe a few guidelines.
Eg: Automobile dealership

03 Manufacturing Franchises
Franchiser grants a manufacturer the right to produce and
sell goods using its name and trademark
Eg: Coca-Cola
 HISTORY

CIRCLE KS WORLDWIDE
Circle Ks success in the convenience retailing industry spans more than 60
years. Its roots trace back to 1951 when Fred Hervey purchased three Kays
Food Stores in El Paso, Texas. Little did anyone know that these stores
would serve as the beginning of Circle K.
CIRCLE K IN VIETNAM
SCALE

Circle K started from 1951 in USA Texas, and

became a worldwide brand

- There are more than 13000 Circle K

operated stores in USA, Canada, Norway,
Denmark and Eastern Europe

- More than 1500 stores in Vietnam, Hong

Kong, China Indonesia , UAE, Macau,
Honduras, Mexico, Guam, Malaysia,
Egypt, Philippines, Costa Rica etc.

- First international convenient store to open

in Vietnam in 2008

- Over 250 stores in Ho Chi Minh City, Binh

Duong, Vung Tau, and Hanoi
APPLIED MODEL
Low price- time, focused low price, Multiple
regression analysis
 Low price- time

Reduce time for accessing a product

Distance- reducing physical and virtual distance

Opportunity cost- convenience price has to be

lower than the opportunity cost
 Focused low
price
Higher convenience prices- used where supply chain
cannot be lowered due to purchasing power

Lower convenience price- used where the supply chain

cost can be reduced both to customer and supplier

MULTIPLE REGRESSION ANALYSIS

used to retail location analysis
used to statistically measure existing
stores

PREPARED BY NICOLE LIM LLIC , 2 0 20

LESSON
- Franchisee can use the image of company and
operate stores easily using brand power

- Manual
Franchisee get the manual of Circle K
Manual is efficient in parts of time and cost
spending for operating

- Supports
Circle K supports franchisee in the part of sales
activities, business management and labor
management
Franchisee doesnt have to care about distribution
and management
LICENSING
 Licensing agreement
A business arrangement in which one company gives another
company permission to manufacture its product for a specified
payment - as defined on Entrepreneur
01 One of the most important elements of a licensing agreement
covers the financial arrangement. Payments from the
licensee to the licensor usually take the form of guaranteed
minimum payments and royalties on sales

02
Another important element of a licensing agreement
establishes the time frame of the deal. The licensing
agreement will also include provisions about the length of the
contract, renewal options, and termination conditions.

03 Most licensing agreements also address the issue of quality.

Another common element of licensing agreements covers
which party maintains control of copyrights, patents, or
trademarks.
LICENSING

FRANCHISING
THANK YOU
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