Franchising Eye CareScojo Foundations Experience in Developing Microfranchises at the Base of the Py

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• Franchising Eye CareScojo Foundations
  Experience in Developing Micro-franchises at the
  Base of the Pyramid

Graham Macmillan, Director
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The Two Scojos

• Scojo Foundation, Inc. (www.scojofoundation.org)
• 501 (c) 3
• Global development of market for reading glasses
• Scojo Vision, LLC. (www.scojo.com)
• Private company
• Sells high-quality, designer reading glasses to
  eye care practices, fashion accessory market, and
  gift industry
• 5 of pre-tax profits to Foundation
• Founders
• Sco Scott Berrie, MBA, MIA
• Jo Jordan Kassalow, OD, MPH

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Scojos Story
Tamil Nadu, India
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Scojo Foundations Mission

• Broaden global access to affordable reading
  glasses

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Scojo Foundations Goals

• Increase the number of people with access to
  affordable reading glasses
• Create jobs for local entrepreneurs
• Facilitate access to comprehensive eye care

Nebaj, Guatemala
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Presbyopia and Reading Glasses

• What is Presbyopia?
• Natural, progressive condition
• Lens hardens, loses flexibility necessary to
  focus
• Symptoms begin at 35 40 years of age and
  ultimately occur in 95 of the population
• Reading Glasses
• Simple magnifying glasses
• Self-prescribed
• Humanitys oldest most common type of glasses
• 5 strengths of Scojo glasses (1.00, 1.50,
  2.00, 2.50, 3.00)

Tandur, Andhra Pradesh, India
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Tremendous Global Need with Consequences

• Prevalence of Presbyopia
• 1.6 billion people suffer from presbyopia
• Less than 5 of people in the developing world
  have access to reading glass they can afford
• Negative Impact
• Economic productivity decreases
• Seamstress or tailor that cannot thread a needle
• Accountant that cannot differentiate between 6
  from 8
• Mechanics cannot fix engines
• Quality of life diminishes
• Cannot separate stones from rice to prepare a
  meal
• Lack of Access to Education
• Cannot read textbooks, newspapers or religious
  texts

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Barriers to success
Cost
Access
Awareness
Market Failure
Santa Ana, El Salvador
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What does Scojo Foundation do?

• Develop markets for reading glasses at the base
  of the economic pyramid.
• Select, train, equip, and fund local
  entrepreneurs to establish new businesses that
  sell reading glasses.
• Provide high-quality, affordable reading glasses
  for our programs.
• Bring reading glasses and referral services
  directly to the customer at the village level.
• Conduct innovative and locally relevant social
  marketing campaigns to raise awareness about
  presbyopia.

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Overcoming barriers to success
Cost
Access
Awareness
Source high-quality reading glasses and, where
cost-effective, facilitating the transfer of
technology to improve quality and lower cost.
Develop creative and economically viable
distribution channels.
Educating the worlds population about the
symptoms of presbyopia and its treatment through
reading glasses.
Tandur, Andhra Pradesh, India
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Scojo Foundations Impact

• Customers
• Doubles the working life of people whose
  livelihoods depend on clear, up-close vision
• Improves quality of life
• Provides access to more advanced eye care
  services
• Local Entrepreneurs
• Creates job opportunities for women and teaches
  valuable business skills
• Increases income that allows for investment in
  health, education, housing
• Communities
• Stimulates economic development
• Creates awareness of the importance of eye health
• Allows doctors to concentrate on patients
  requiring more specialized care

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Scojo Foundation Franchising
Mahbubnagar, Andhra Pradesh, India
San Salvador, El Salvador
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Why Franchise?

• Scalability and Replicability IMPACT
• Downsource operations management
• Retain capacity at global headquarters for
  expansion
• Local ownership
• Greater long-term impact
• Economic development
• Leverage existing networks, i.e.. Hindustan Lever
  Limited, BRAC, Hewlett Packard, Community
  Enterprise Solutions

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Scojo Foundation as a Franchise Incubator

• Product Franchise
• Sources product in China
• Preferential relationship with Chinese
  manufacturers because of Scojo Vision, LLC.
• Manages shipment of product
• Brand development
• Invests in global market creation
• Local Distributor
• Identify potential distributors
  (micro-franchisees)
• Intensive selection process (marketing and
  business planning)
• Sales quotas for participation (min. 10/month)
• Incentives
• Silver, Gold, Diamond status
• Quantity discounts
• Marketing assistance
• Sales territory management
• Brand Development
• Invest in local market creation

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Scojo Foundations Structure
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Franchising--How to Meet the Need

• Scale, Replicate, and Sustain
• Country level
• Leverage existing networks
• Local institution capable of owning and operating
  Scojo franchise
• Manage day-to-day operations
• Receive support from regional and global Scojo
  staff
• 30-40 cost-recovered
• Micro level
• 5,000 customers/franchise
• Entrepreneurs buy into Scojo franchise
• Self-management of individual businesses
• Receive support from local Scojo staff
• 100 cost-recovered

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Micro Level

• Franchise Kit120
• Marketing plan
• Uniform
• 20 pairs of reading glasses (4 different branded
  styles)
• Cords
• Sunglasses
• Dustbusters
• Eye drops
• Eyeglass repair kit
• Carrying bag
• Visual Acuity charts
• Glasses Display Case
• Publicity Materials
• Banner
• Training Certificate and ID
• Data Collection Forms

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Micro Level

• Styles
• New Yorks
• Miamis
• Houstons
• Workers

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Country Level

• Scojo Guatemala
• Community Enterprise Solutions
• Local franchisee (manages other projects
  including stove-making business, internet cafes,
  language schools, etc.)
• Identifies local entrepreneurs
• Offers inventory on consignment basis
• Independently manages local operations
• Entrepreneur selection
• Marketing support
• New market develop
• How do we measure sustainability?
• Franchise/Incubator level
• Profit and loss statements
• Retention level of franchisees
• Country level
• Profit and loss statements
• Ability to plan for and meet annual objectives
• Local management
• Patients accessing local eye health facilities

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Keys to Supporting a Successful Scojo Franchise

• Respect the desires of the entrepreneur and
  consumer
• High-quality, low-cost, fashionable products
• Close support, accessible
• Develop suitable distribution channels
• Micro-entrepreneur model
• Mobile Unit model
• Mass retail model
• Market appropriately
• Understand needs of local markets (market
  research)
• Tailor marketing/promotion activities to
  communities
• Radio ads, religious groups, plays, word of
  mouth, loudspeakers, Peace Corps volunteers,
  business associations

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Challenges to Franchising

• Quality Control
• screening protocols
• referral follow up
• inventory management
• Data collection
• web-based data management system
• integrity of data
• monitoring and evaluation
• Innovations
• certification of best practices
• re-training
• new products
• Local conditions
• taxes

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Scojo Foundation Future Franchises

• Bangladesh
• BRAC
• India
• Hindustan Lever Limited
• Hewlett Packard
• China
• Nicaragua
• Venezuela

Bangladesh, BRAC Shasta Shebika
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Scojo Foundation Future Franchise Ideas

• Local optical shops
• permanent local presence
• part-time eye doctor
• community awareness
• incentive to super entrepreneurs
• link professional eye care services to
  community-based businesses

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Thank You

• Contact information