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Franchising as a field of business has weathered many economic upturns and downturns to open more than 700,000 franchise establishments in the last 15 years and contribute over $700 billion to the US economy.
While interest in business ownership has spurred interest in franchising, marketing this type of business poses unique challenges. It’s important to know the potential pitfalls that accompany rapid growth and effective franchise marketing solutions to overcome them.
Maintaining a consistent brand identity is one of the biggest franchise marketing challenges. As most franchisors will tell you, as the franchise grows, maintaining brand consistency is one of the biggest challenges. With competition around every corner, it’s becoming harder to differentiate from other franchises and create a unique and memorable brand.
Brand identity is the key to having a unified presence that customers quickly recognize and invest in. Yet operating a wide network of franchises means that many business owners will have their own strong opinions and ideas.
From the beginning, franchisors must show the franchisees how and why the brand needs a consistent representation across the different locations. They must also develop comprehensive brand guidelines that explain the tone of voice, visual elements, and brand guidelines.
Regular communication, training programs, and workshops should be held regularly to strengthen unity and maintain brand consistency.
As the franchise ventures into different locations, it must balance between adapting to local markets and enforcing a consistent brand image. Each region may have unique cultural nuances and market dynamics that can influence the success of your marketing campaigns.
Franchises can use localized marketing approaches to fit their local audiences while preserving the overall brand tone.
When McDonald's launched its first outlet in India in 1996, its world-famous Big Mac and Quarter Pounder With Cheese were conspicuously missing due to obvious dietary and cultural considerations. They introduced the “McAloo Tikki" - the veggie burger option to cater to local tastes. This marketing masterstroke enabled them to kill two birds with one shot. They maintained the focus on Value & Price together.
Clear communication is at the heart of successful franchisor-franchisee relationships. It helps both parties to align their objectives, have mutual understandings, and succeed together.
However, outdated, unreliable, or inaccessible communication channels can lead to operational inefficiencies and missed opportunities.
Another roadblock evident in this digital era is the varying technology proficiencies between franchisees. Franchisees come from all walks of life and can vary wildly in factors such as education level and age. But what do you do when a section of your franchisees are tech-savvy and stay updated on the latest tools while others have trouble sending simple emails?
Franchise marketers must prioritize ease of use when considering digital tools, and providing extensive training on these platforms is a must.
For franchises, each branch location has unique characteristics that require unique franchise marketing solutions. This situation introduces one complex challenge for franchise marketers and that is deciding which franchise gets what resources.
For instance, one franchise might be in a highly competitive, tech-savvy urban environment, necessitating more digital marketing resources. Another might be located in a laid-back rural area where community events and outreach bring better ROI.
To optimize your resource allocation, you should use data analytics to understand each franchisee’s performance. Then, you will be able to choose the most suitable platforms and channels and prioritize your marketing objectives effectively.
In franchise marketing, challenges are inevitable. However, armed with the right franchise marketing solutions, franchises can overcome these setbacks and pave the way for unprecedented success.
