Franchise system advertising efforts have two objectives. The first is to build a strong brand and the second is to attract customers. Building a strong brand requires that the franchisor and all franchisees send a consistent message to potential and current customers. For this reason, franchisors of well-designed systems set strict standards for the use of their trademarks and control the use and creation of marketing and advertising materials.
Brands and marketing materials
Franchisors go to great effort and expense to develop the name of their product or service, to create an identity or “brand personality” for the name, and to ensure that it is legally protected. Therefore, for the health of the franchise system, it is critical that franchisees use the approved trademark in strict accordance with the guidelines established by the franchisor.
Misuse of the trademarks can damage the brand itself and also jeopardize the franchisee’s franchise. Franchisors often provide brand artwork (e.g., logos) to franchisees in electronic format with the requirement that the artwork cannot be recreated or altered in any way.
Typically, established franchise systems provide franchisees with specific marketing and advertising materials for adaptation for franchisee use. In systems where franchisees can create their own materials, approval from the franchisor is usually required before they can be used.
Franchisor marketing
Most franchisors have comprehensive marketing plans for the entire franchise. The national plan typically includes advertising campaigns, television and radio spots, Internet advertising, social media, public relations and direct mail efforts. Thus, brand recognition is widely established, and franchisees benefit from this brand equity. The system’s advertising fund (also called the brand fund) helps fund these efforts across the system.
Franchisors that do not manage marketing at the national level usually provide an outline for franchisees to prepare their marketing plan at the local level.
Franchisee marketing
It is typical for the franchisor to require that initial “grand opening” or “go-to-market” marketing, as well as an annual marketing plan, be submitted by the franchisee for approval or developed jointly with the franchisor. The go-to-market period typically begins several weeks prior to the opening of a new franchise location and may last for six months after opening.
In addition to the franchisor’s national marketing, franchisees are often authorized to undertake local marketing initiatives on their own, subject to certain restrictions. Franchisor approval is usually required before proceeding with the local plan. Many franchisors also have a local advertising and marketing requirement whereby the franchisee must spend a certain percentage of its gross sales on local advertising, and provide evidence of such advertising to the franchisor annually.
Researching the competition and identifying the target customer
To create an effective advertising and promotion program, you need to do your homework. The two key factors that will influence your planning are the competition and the demographics of your target customer profile. There are many questions to answer about your target markets, such as who your competition is and the number of competitors you may face.
When examining the competition, you will also need to consider the products and services they offer and their pricing structures. You need to look for where they may be stronger or weaker than your company. Review their use of advertising and the methods they employ.
Next, you need to analyze your target market customers. Think about who these customers are and where they come from. For example, are there large residential areas or large industrial or office complexes that house these customers? The customers will have specific wants and needs that you need to satisfy. Some will be common needs and some will be specific to your product.
Media options to consider
Social media marketing through Facebook, Twitter, Google+, LinkedIn, Instagram, YouTube and Pinterest are another way to reach your customer online. You can directly track response to ads by creating dedicated domain pages and tracking customer interaction with these pages.
Direct mail (brochures, flyers) is a common marketing method used by many companies, as are newspaper and magazine advertisements. Although customers are reached with this method, the contact is more remote than with online marketing. You never know if your prospective customer read the ad or threw it away. Radio and television marketing and outdoor advertising through billboards and posters also allow you to reach a potential customer remotely.
Another type of marketing is grassroots marketing. This type of effort will encourage referrals from current customers. You can also expose your brand during participation in community and charity events, networking, and sponsorship of local teams or events.
Finally, you can use promotions and special offers, such as coupons and cross-product promotions.
Websites and social networks
Due to the speed at which information spreads on the Internet and social media, it is not uncommon for franchisors to exercise strict control over Internet presence and social media marketing.
Franchisees are typically prohibited from creating individual websites. Instead, franchisors typically post franchisee information on the franchise system’s website. If a franchisee is allowed to create its own website, it is usually required to link it to the main site.
Customer loyalty
Positive word-of-mouth from your customers is one of the most powerful methods of marketing your franchise. It is critical to maintaining a loyal customer base. Loyalty and reward programs often work well. Special promotions and coupons are also popular methods of keeping returning customers.
Finally, referrals are always an important part of a marketing package. Referrals can be exchanged with other business owners or through existing customers. An incentive program with existing customers, who refer new customers, is a popular method of obtaining referrals.
Inprofit. Marketing agency.
At Inprofit we work on all types of strategies for franchises. If you want to increase sales or start a campaign in the locality where you have just installed your franchise, contact us and we will develop your strategy according to your needs and objectives.
We offer a 360º marketing service for franchises.
