AUSSIE POUCH MOBILE.

Elaine and Paul Beal drew up in their 4 4 outside 22 Ferndale Avenue, towing a bright blue trailer with red and white lettering. As Aussie Pooch Mobile franchisees whose territory covered four suburbs of Brisbane, Australia, they were having a busy day. It was only 1:00 p.m., and they had already washed and groomed 16 dogs at 12 different houses. Now they were at their last appointmenta 'pooch party' of ten dogs at number 22, where five other residents of the street had arranged to have their dogs washed on a biweekly basis. Prior to their arrival outside the house, there had been ferocious growling and snarling from a fierce-looking Rottweiler. But when the animal caught sight of the brightly colored trailer, he and two other dogs in the yard bounded forward eagerly to the chain link fence, in a flurry of barking and wagging tails. Throughout residential areas of Brisbane and in a number of other Australian cities, dogs of all shapes and sizes were being washed and groomed by Aussie Pooch Mobile franchisees. By early 2002, the company had grown to over 100 franchisees and claimed to be "Australia's largest mobile dog wash and care company." A key issue facing its managing director, Christine Taylor, and members of the management team was how to plan and shape future expansion.

Compound Located in Burpengary, Queensland, just north of Brisbane, Aussie Pooch Mobile Pty. Ltd. (APM) was founded in 1991 by Christine Taylor, then aged 22. Taylor had learned customer service early, working in her parents' bait and tackle shop from the age of 8. Growing up in an environment with dogs and horses as pets, she knew she wanted to work with animals and learned dog grooming skills from working in a local salon. At 16, Chris left school and began her own grooming business on a part-time basis, using a bathtub in the family garage. Since she was still too young to drive, her parents would take her to pick up the dogs from their owners. She washed and groomed the animals at home and then returned them. Once Taylor had learned to drive and bought her own car, she decided to take her service to the customers. So she went mobile, creating a trailer in which the dogs could be washed outside their owners' homes and naming the fledgling venture "The Aussie Pooch Mobile." Soon, it became a full-time job. Eventually, she found she had more business than she could handle alone, so she hired assistants. The next step was to add a second trailer. Newly married, she and her husband, David McNamara, ploughed their profits into the purchase of additional trailers and gradually expanded until they had six mobile units. The idea of franchising came to Taylor when she found herself physically constrained by a difficult pregnancy: "David would go bike riding or head to the coast and have fun with the jet ski and I was stuck at home and felt like I was going nuts, because I'm a really active person. I was hungry for information on how to expand the business, so I started researching other companies and reading heaps of books and came up with franchising as the best way to go, since it would provide capital and also allow a dedicated group of small business people to help expand the business further." As existing units were converted from employees to franchisee operations, Taylor noticed that they quickly became about 20 percent more profitable. Initially, APM focused on Brisbane and the surrounding region of southeast Queensland. Subsequently, it expanded into New South Wales and South Australia in 1995, into Canberra, Australian Capital Territory (ACT), in 1999, and into Victoria in 2000 (Exhibit 1). Expansion into

Western Australia was expected in mid-2002. In 1996, a New Zealand division of the firm was launched in Tauranga, a small city 200 km southeast of Auckland, under the name Kiwi Pooch Mobile. In 2001, Aussie Pooch Mobile launched into the United Kingdom, beginning with a town in northern England. Soon, there were four operators under a master franchisee. The following year saw the official launch of The Pooch Mobile Malaysia, also under a master franchisee. By early 2002, the company had 125 mobile units in Australia, of which 55 were located in Queensland, 42 in New South Wales, eight in ACT, 12 in South Australia, and eight in Victoria. In addition, representatives operated another six company-owned units. The company bathed more than 20,000 dogs each month and had an annual turnover of approximately $3 million.1 APM was a member of the Franchise Council of Australia and complied with the Franchising Code of Conduct. The management team consisted of Chris Taylor as managing director and David McNamara as director responsible for overseeing trailer design and systems support. Each state had its own manager and training team. The central support office also housed staff who provided further assistance to managers and franchisees. Expansion had benefitted from the leverage provided by several master franchisees, who had obtained the rights to work a large territory and sell franchises within it. Said Taylor: "I look at the business as if it's my first child. I see it now starting to get into those early teens where it wants to go alone, but it still needs me to hold its hand a little bit, whereas initially it needed me there the whole time. With the support staff wehave in place, the business is now gaining the support structure it needs to work without me. This is what I am aiming towards. I appreciate that a team of people can achieve much more than one person alone." The Service Concept Aussie Pooch Mobile specialized in bringing its dog washing services to customers' homes. Dogs were washed in a hydrobath installed in a specially-designed trailer, which was parked in the street. The trailer had partly open sides and a roof to provide protection from sun and rain (Exhibit 2). Apart from flea control products and a few grooming aids, APM did not attempt to sell dog food and other pet supplies. The company had resisted the temptation to diversify into other fields. "Our niche is in the dog bathing industry," declared Chris Taylor: "I don't want us to be a jack of all trades because you'll never be good at anything. We now have an exclusive range of products that customer demand has driven us to providing, but we still work closely with vets and pet shops and are by no means a pet shop on wheels." In contrast to retail pet service stores, where customers brought their animals to the store or kennel, APM brought the service to customers' homes, with the trailer parked outside on the street. The use of hydrobath equipment, in which warm, pressurized water was pumped through a shower head, enabled operators to clean dogs more thoroughly than would be possible with a garden hose. The bath was designed to rid the dog of fleas and ticks and improve its skin condition as well as to clean its coat and eliminate smells. Customers supplied water and electrical power. The fee paid by customers varied from $15-$30 per dog, depending on breed and size, condition of coat and skin, behaviour, and geographic location, with discounts for multiple animals at the same address. On average, regular customers paid a fee of $25 for one dog, $47 for two, and $66 for three. At "pooch parties," a concept developed at APM, the homeowner acting as host typically received one complimentary dogwash at the discretion of the operator. Additional services, for which an extra fee was charged, included the recently introduced aromatherapy bath ($2.50) and blow drying of the animal's coat for $5-$10 (on average, $8). Blow drying was especially recommended in cool weather to prevent the animal from getting cold. Operators also offered free advice to customersabout their dogs' diet and health care, including such issues as ticks and skin problems. They encouraged customers to have their dogs bathed on a regular basis. The most commonly scheduled frequencies were once every two or four weeks. A Satisfied User The process of bathing a dog involved a sequence of carefully coordinated actions, as exemplified by Elaine Beal's treatment of Zak, the Rottweiler. "Hello my darling, who's a good boy?" crooned Elaine as she patted the enthusiastic dog, placed him on a leash, and led him out through the gate to the footpath on this warm, sunny day. Paul busied himself connecting hoses and electrical cords to the house, while Elaine began back-combing Zak's coat in order to set it up for the water to get underneath. She then led the now placid dog to the hydrobath inside the trailer, where he sat patiently while she removed his leash and clipped him to a special collar in the bath for security. Meanwhile the water had been heating to the desired temperature. Over the next few minutes, Elaine bathed the dog, applied a medicated herbal shampoo to his coat, and rinsed him thoroughly with the pressure driven hose (Exhibit 3). After releasing Zak from the special collar and reattaching his leash, she led him out of the hydrobath and onto the footpath, where she wrapped him in a chamois cloth and dried him. Next, she cleaned the dog's ears and eyes with disposable baby wipes, all the time continuing to talk soothingly to him. She checked his coat and skin to ensure there were no ticks or skin problems, gave his nails a quick clip, and sprayed a herbal conditioner and deodorizer onto Zak's now gleaming coat and brushed it in. Returning Zak to the yard and removing the leash, Elaine patted him and gave him a large biscuit, specially formulated to protect the animal's teeth. The Australian Market Australia's population of 19.3 million in 2001 was small in relation to the country's vast land area of 7.7 million km2 (almost three million square miles). By contrast, the United States had a population 15 times that of Australia on a land area, including Alaska and Hawaii, of 9.2 million km2. A federal nation, Australia was divided into six states New South Wales (NSW), Victoria, Queensland, South Australia, Western Australia, and the island of Tasmaniaplus two territories: the large but thinly populated Northern Territory and the small Australian Capital Territory (ACT) which contained the federal capital, Canberra, and its suburbs and was an enclave within NSW. The average annual earnings for employed persons was $35,000. With much of the interior of the continent uninhabitable and many other areas inhospitable to permanent settlement, most of the Australian population was concentrated in a narrow coastal band running clockwise from Brisbane on the southeast coast through Sydney and Melbourne to Adelaide, the capital of South Australia. Some 2,700 km (1,600 miles) to the west lay Perth, known as the most isolated city in the world. A breakdown of the population by state and territory is shown in Exhibit 4. The northern half of the country was in the tropics, Brisbane and Perth enjoyed a subtropical climate, and the remaining major cities had a temperate climate (Exhibit 5). Melbourne was known for its sharp fluctuations in temperature. There were about four million domestic dogs in the country and approximately 42 percent of the nation's 7.4 million households owned at least one. Ownership rates were slightly above average in Tasmania, the Northern Territory, and Queensland and somewhat below average in Victoria and the ACT. In 1995, it was estimated thatAustralians spent an estimated $1.3 billion on dog-related goods and services, of which 46 percent went to dog food, 22 percent to veterinary services, 12 percent to dog products and equipment, and 11 percent to other services, including washing and grooming (Exhibit 6). Franchising in Australia By the beginning of the twenty-first century, the Australian franchising sector had reached a stage of early maturity. McDonald's, KFC, and Pizza Hut opened their first outlets in Australia in the 1970s. These imported systems were followed by many home-grown business format franchises such as Just Cuts (hairdressing), Snap Printing, Eagle Boys Pizza, and VIP Home Services, all of which grew into large domestic systems and then expanded internationally, principally to New Zealand and Southeast Asia. In 2002, Australia boasted approximately 700 business format franchise systems holding over 50,000 outlets. Although the United States had many more systems and outlets, Australia had more franchisors per capita, reflecting the relative ease of entry into franchising in this country. Most of the growth in franchising had occurred in business format franchising as opposed to product franchising. Business format franchises provided franchisees with a full business system and the rights to operate under the franchisor's brand name, whereas product franchises merely allowed independent operators to supply a manufacturer's product, such as car dealerships or soft-drink bottlers. Typically, franchisees were required to pay an upfront franchise fee (averaging $30,000 in service industries and $40,000 in retailing) for the right to operate under the franchise system within a defined geographic area. This initial fee was included in the total start-up cost of the business (ranging from around $60,000 in the service sector to more than $200,000 in the retail industry). In addition, franchisees paid a royalty on allsales and an ongoing contribution toward advertising and promotional activities designed to build brand awareness and preference. Would-be franchisees who lacked sufficient capital might be able to obtain bank financing against personal assets such as property or an acceptable guarantor. Franchising Trends The rapid growth of franchising had been stimulated in part by demographic trends, including the increase in dual-income families, which had led to greater demand for outsourcing of household services such as lawn mowing, house cleaning, and pet grooming. Some franchise systems offered multiple concepts under a single corporate brand name. For instance, VIP Home Services had separate franchises available in lawn mowing, cleaning, car washing, and rubbish removal. Additional growth came from conversion of existing individual businesses to a franchise format. For instance, Eagle Boys Pizza had often approached local pizza operators and offered them the opportunity to join this franchise. Almost half the franchise systems in Australia were in retail trade (32 percent nonfood and 14 percent food). Another large and growing industry was the property and business services sector (20 percent), as shown in Exhibit 7. Most franchisees were former white-collar workers or blue-collar supervisors who craved independence and a lifestyle changeOver the years, Australia's franchising sector had experienced a myriad of regulatory regimes. Finally in 1998, in response to perceived problems in many franchising systems, the federal government introduced a mandatory Franchising Code of Conduct, administered under the Trade Practices Act. Among other things, the Code required that potential franchisees be given full disclosure about the franchisor's background and operations prior to signing a franchise agreement. In contrast, the franchising sector in the United States faced a patchwork of regulations that varied from one state to another. Yet in the United Kingdom, there were no specific franchising regulations beyond those applying to all corporations operating in designated industries. Master franchising arrangements had become common in Australian franchise systems. Under master franchising, a local entrepreneur was awarded the rights to subfranchise the system within a specific geographic area, such as an entire state. Because of Australia's vast geographic size, it was difficult for a franchisor to monitor franchisees who were located far from the head office. The solution was to delegate to master franchisees many of the tasks normally handled by the franchisor itself, making them responsible for recruiting, selecting, training, and monitoring franchisees in their territories as well as overseeing marketing and operations. Not all franchisees proved successful and individual outlets periodically failed. The main reasons for failure appeared to be poor choice of location or territory and a franchisee's own shortcomings. In addition to the obvious technical skills required in a given field, success often hinged on possession of sales and communication abilities. Disputes in franchising were not uncommon, but could usually be resolved internally without recourse to legal action. The causes of conflict most frequently cited by franchisees related to franchise fees and alleged misrepresentations made by the franchisor. By contrast, franchisors cited conflicts based on lack of adherence to the system by franchisees. Australia was home to a number of internationally known franchise operators, including Hertz Rent-a-Car, Avis, McDonald's, KFC, Pizza Hut, Subway, Kwik Kopy and Snap-on Tools. By contrast, most Burger King outlets operated under the name Hungry Jack's, an acquired Australian chain with significant brand equity. Jim's Group One of Australia's best known locally developed franchisors was Melbourne-based Jim's Group, which described itself as one of the world's largest home service franchise organizations. The company had originated with a mowing service started by Jim Penman in Melbourne in 1982 when he abandoned ideas of an academic career after his PhD thesis was rejected. In 1989, Penman began franchising the service, now known as Jim's Mowing, as a way to facilitate expansion. The business grew rapidly, using master franchisees in different regions to recruit and manage individual franchisees. The company's dark green trucks, displaying a larger-than-life logo of Penman himself, bearded and wearing a hat, soon became a familiar sight on suburban streets around Melbourne. Before long, the franchise expanded to other parts of Victoria and then to other states. Over the following years, an array of other home-related services were launched under the Jim's brand, including Jim's Trees, Jim's Paving, Jim's Cleaning, Jim's Appliance Repair, and Jim's Floors. Each service featured the well-recognized logo of Jim Penman's face on a different colored background. Jim's Dogwash made its debut in 1996, employing a bright red, fully enclosed trailer emblazoned by a logo that had been amended to show Jim with a dog. By early 2002, Jim's Group comprised more than two dozen different service divisions, over 90 master franchisees, and some 1,900 individual franchisees. In many instances, master franchisees were responsible for two or more different service divisions within their regions. Jim's Group's philosophy was to price franchises according to local market conditions. If work in a prospective territory were easy to find but franchisees hard to attract, the price might be lowered somewhat, but not too much; otherwise, the company felt there would be insufficient commitment. In recent years, Jim's Group had expanded overseas. In New Zealand, it had six master franchisees and 232 franchisees and offered mowing, tree work, cleaning, anddog washing services. It had also established a significant presence for Jim's Mowing in the Canadian province of British Columbia. But attempts to launch Jim's Mowing in the United States had failed due to difficulty in finding good operators. Jim's Dogwash had over 60 franchises operating in Australia (primarily in Victoria) and New Zealand. This firm's experience had shown that growth was hampered by the shortage of suitable franchisees, since operators needed to be dog lovers with a background in dog care. Franchising Strategy at Aussie Pooch Mobile New APM franchisees were recruited through newspaper advertisements and "advertorials" as well as by word of mouth. The concept appealed to individuals who sought to become self-employed but wanted the security of a proven business system rather than striking out entirely on their own. Interested individuals were invited to meet with a representative of the company to learn more. If they wished to proceed further, they had to complete application form and submit a deposit of $250 to hold a particular area for a maximum of four weeks, during which the applicant could further investigate the characteristics and prospects of the designated territory. This fee was credited to the purchase cost of the franchise if the applicant decided to proceed or returned if the applicant withdrew. A new franchise cost $24,000 (up from $19,500 in 1999). An additional 10 percent had to be added to this fee to pay the recently introduced federal goods and services tax (GST). Exhibit 8 identifies how APM costed out the different elements. Selection Requirements for Prospective Franchisees The company had set a minimum educational requirement of passing Year 10 of high school (or equivalent). Taylor noted that successful applicants tended to be outdoors people who shared four characteristics: "They are self motivated and outgoing. They love dogs, and they want to work for themselves. Obviously, being great with dogs is one part of the businessour franchisees understand that the dog's even an extended member of the customer's familybut it's really important that they can handle the bookwork side of the business as well, because that's basically where your bread and butter is made." Other desirable characteristics included people skills and patience, plus a good telephone manner. Would-be franchisees also had to have a valid driver's license, access to a vehicle that was capable of towing a trailer, and the ability make this type of driving in an urban setting. Originally, Taylor had expected that most franchisees would be relatively young, with parents willing to buy their children a franchise and set them up with a job,but in fact only about half of all franchisees were aged 21-30; 40 percent were aged 31-40 and 10 percent were in their forties or fifties. About 60 percent were female. Potential franchisees were offered a trial work period with an operator to see if they liked the job and were suited to the business, including not only skills with both animals and people but also sufficient physical fitness. In return for the franchise fee, successful applicants received the rights to a geographically defined franchise, typically comprising about 12,000 homes. Franchisees also obtained an APM trailer with all necessary products and solutions to service the first 100 dogs, plus red uniform shirts and cap, advertising material, and stationery. The trailer was built to industrial grade standards and its design included many refinements developed by APM in consultation with franchisees to simplify the process of dog washing and enhance the experience for the animal. Operators were required to travel with a mobile phone, which they had to pay for themselves. In addition to franchised territories, APM had six company-owned outlets. These were operated by representatives who leased the territory and equipment and in return paid APM 25 percent of the gross weekly revenues (including GST). Taylor had no plans to increase the number of representatives. The reps generally were individuals who either could not currently afford the start-up cost or who were evaluated by the company for their suitability as franchisees. Typically, reps either became franchisees within about six months or left the company. Assisting New Franchisees The franchisor provided two weeks' pre-opening training for all new franchisees and representatives also spent about 10 hours with each one to help them open their new territories. Training topics included operational and business procedures, effective use of the telephone, hydrobathing techniques, dog grooming techniques, and information on dog health and behavior. Franchisees were given a detailed operations manual containing 104 of instructions on running the business in accordance with company standards. To help new franchisees get started, APM placed advertisements in local newspapers for a period of 20 weeks. It also prepared human interest stories for distribution to these newspapers. Other promotional activities at the time of launch included distributing pamphlets in the territory and writing to local vets and pet shops to inform them of the business. APM guaranteed new franchisees a weekly income of $600 for the first 10 weeks and paid for a package of insurance policies for six months, after which the franchisee became responsible for the coverage. Fees and Services Ongoing support by the franchisor included marketing efforts, monthly newsletters, a telephone hotline service for advice, an insurance package, regular (but brief) field - visits, and additional training. If a franchisee fell sick or wished to take a vacation, APM would offer advice on how to best deal with this situation, in many cases organizing a trained person to help out. It also organized periodic meetings for franchisees in the major metropolitan areas at which guest presenters spoke on topics relating to franchise operations. Previous guest speakers included veterinarians, natural therapists, pharmacists, and accountants. More recently, APM had offered one-day seminars, providing more team support and generating greater motivation than the traditional meeting style. In return for these services, franchisees paid a royalty fee of 10 percent of their gross weekly income, plus an advertising levy of an additional 2.5 percent. Income was reported on a weekly basis and fees had to be paid weekly. In addition to these fees, operating costs for a franchisee included carrelated expenses, purchase of consumable products such as shampoo, insurance, telephone, and stationery. Exhibit 9 shows the average weekly costs that a typical franchisee might expect to incur. Franchisees included several couples, like the Beals, but Taylor believed that having two operators work together was not really efficient, although it could be companionable. Paul Beal, a retired advertising executive, had other interests and did not always accompany Elaine. Some couples split the work, with one operating three days a week and the other three or even four days. All franchisees were required to be substantially involved in the hands-on running of the business; some had more than one territory and employed additional operators to help them. To further support individual franchisees, APM had formed a Franchise Advisory Council, composed of a group of experienced franchisees who had volunteered their time to help other franchisees and the system as a whole. Each franchisee was assigned to a team leader, who was a member of the FAC. The Council facilitated communications between franchisees and the support office, meeting with the managers every three months to discuss different issues within the company. Marketing and Competition The company advertised Aussie Pooch Mobile service in the Yellow Pages as well as paying for listings in the White Pages of local phone directories. It promoted a single telephone number nationwide in Australia, staffed by an answering service 24 hours a day, seven days a week. Customers paid only a local call charge of 25 cents to access this number. They could leave their name and telephone number, which would then be electronically sorted and forwarded via alphanumeric pagers to the appropriate franchisee who would then return the call to arrange a convenient appointment time. APM also offered expert advice on local advertising and promotions and made promotional products and advertising templates available to franchisees. Other corporate communications activities included maintaining the website, www.hydrobath.com; distributing public relations releases to the media; and controlling all aspects of corporate identity such as trailer design, business cards, and uniforms. "I try to hold the reins pretty tightly on advertising matters," said Taylor, noting that the franchise agreement required individual franchisees to submit their plans for promotional activities for corporate approval. She shook her head as she remembered an early disaster, involving an unauthorized campaign by a franchisee who had placed an offer of a free dog wash in a widely distributed coupon book. Unfortunately, this promotion had set no expiration date or geographic restriction, with the result that customers were still presenting the coupon more than a year later across several different franchise territories. With APM's approval, some franchisees had developed additional promotional ideas. For example, Elaine and Paul Beal wrote informative articles and human interest stories about dogs for their local newspaper. When a client's dog died, Elaine sent a sympathy card and presented the owner with a small tree to plant in memory of the pet. Developing a Territory Obtaining new customers and retaining existing ones was an important aspect of each franchisee's work. The brightly colored trailer often attracted questions from passersby andpresented a useful opportunity to promote the service. Operators could ask satisfied customers to recommend the service to their friends and neighbors. Encouraging owners to increase the frequency of washing their dogs was another way to build business. Knowing that a dog might become lonely when its owner was absent and was liable to develop behavior problems, Elaine Beal sometimes recommended the acquisition of a "companion pet." As Paul remarked, "Having two dogs is not twice the trouble, it halves the problem!" However, to maximize profitability, franchisees also had to operate as efficiently as possible, minimizing time spent in nonrevenue-producing activities such as travel, set up, and socializing. As business grew, some franchisees employed additional operators to handle the excess workload, so that the trailer might be in service extended hours, seven days a week. Eventually, a busy territory might be split, with a portion sold off to a new franchisee. APM encouraged this practice. The company had found that franchisees reached a comfort zone at about 80 dogs a week and then their business stopped growing because they could not physically wash any more dogs. Franchisees could set their own price when selling all or part of a territory and APM helped them to coordinate the sale. When a territory was split, a franchisee usually was motivated to rebuild the remaining half to its maximum potential. Competition Although many dog owners had traditionally washed their animals themselves (or had not even bothered), there was a growing trend toward paying a third party to handle this task. Dog washing services fell into two broad groups. One consisted of fixed-site operations to which dog owners brought their animals for bathing. The location of these businesses included retail sites in suburban shopping areas, kennels, and service providers' own homes or garages. The second type of competition, which had grown in popularity in recent years, consisted of mobile operations that traveled to customers' homes. With few barriers to entry, there were numerous dog washing services in most major metropolitan areas. Many of these services included the word "hydrobath" in their names. In Brisbane, for example, the Yellow Pages listed 19 mobile suppliers in addition to APM and 26 fixed-site suppliers, a few of which also washed other types of animals (Exhibit 10). The majority of dog washing services in Australia were believed to be standalone operations, but there were other franchisors in addition to Aussie Pooch Mobile. Of these, the most significant appeared to be Jim's Dogwash and Hydrodog. Jim's Dogwash (part of Melbourne-based Jim's Group) had nine master franchisees and 52 franchises in Australia and four masters and nine franchisees in New Zealand (Exhibit 11). Jim's expansion strategy had been achieved in part by creating smaller territories than APM and pricing them relatively inexpensively, in order to stimulate recruitment of new franchisees. A territory, typically encompassing about 2,000 homes, currently sold for $10,000 (comprising an initial franchise fee of $6,000, $3000 for the trailer, and $1,000 for other equipment) plus 10 percent GST. Jim's fee for washing a dog, including blow drying, ranged from $28 to $38. However, the firm did not offer aromatherapy or anything similar. Another franchised dog washing operation was Hydrodog, based on the Gold Coast in Queensland with 49 units in Queensland, nine in New South Wales, eight in Western Australia, and one each in Victoria, South Australia, and the Northern Territory. Hydrodog began franchising in 1994. By 2002, a new franchise unit cost $24,950 (including GST), of which $10,800 was accounted for by the initial franchise fee for a 10,000-home territory. In addition to their dog grooming services, which included blowdrying and ranged in price from $15 to $40, Hydrodog franchisees sold dog food products, including dry biscuits and cooked or raw meats (chicken, beef, or kangaroo). They did not offer aromatherapy. Developing a Strategy for the Future Managing continued expansion presented an ongoing challenge to the directors of Aussie Pooch Mobile. However, as Chris Taylor pointed out, "You can be the largest but you may not be the best. Our focus is on doing a good job and making our franchisees successful."To facilitate expansion outside its original base of southeast Queensland, APM had appointed a franchise sales manager in Sydney for the New South Wales market and another in Melbourne for both Victoria and South Australia. One question was whether to adopt a formal strategy of appointing master franchisees. Currently, there were master franchises on the Gold Coast (a fast-growing resort and residential area southeast of Brisbane), in the ACT, and in the regional cities of Toowoomba and Bundaberg in Queensland and in Newcastle and Port Macquarie in New South Wales. For years, Taylor had been attracted by the idea of expanding internationally. In 1996, the company had licensed a franchisee in New Zealand to operate a subsidiary named Kiwi Pooch Mobile. However, there was only one unit operating by early 2002 and she wondered how best to increase this number. Another subsidiary had been established as a master franchise in the French province of New Caledonia, a large island northeast of Australia. Launched in late 2000 under the name of La Pooch Mobile; it had one unit. Another master franchise territory had been established in Malaysia in late 2001, and there were two units operating in 2002. In 2001, APM had granted exclusive rights for operation in the United Kingdom to a British entrepreneur who operated under the name The Pooch Mobile. Thus far, four units were operating in the English county of Lincolnshire, 200 km (125 miles) north of London. This individual noted that English people traditionally washed their dogs very infrequently, often as little as once every two to three years, but once they had tried The Pooch Mobile, they quickly converted to becoming monthly clients, primarily for the hygiene benefits. As the company grew, the directors knew it was likely to face increased competition from other providers of dog washing services. But as one successful franchisee remarked: "Competition keeps us on our toes. It's hard being in the lead and maintaining the lead if you haven't got anybody on your tail."

QUESTION:

make RESEARCH DESIGN: building on your literature review. explain and justify the method that you will adopt to collect the data that is required for analyzing and solving the marketing problem. this section should address issues related to:

sample (e.g who are your target respondents, who are you surveying, why are you surveying them, etc).

procedure (e.g how are you obtaining information from the respondents, why is this approach appropriate, etc).

measures (e.g what questions are you asking and in what format, what information are you obtaining, why are you obtaining this information, etc).

note:

'using causal research