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Franchisor Book > The Franchisor Feasibility Plan > Marketing MARKETING The marketing section discusses the processes of the distribution of goods and services to potential customers to satisfy their wants and needs. However, it is important that the franchisor recognize and realize that there are two separate and distinct target markets. These two target markets include (1) the franchisee and (2) the end consumer. The marketing
section will investigate the vision or mission statement of the
franchisor coupled with the major marketing objectives or goals which
they have been developing. In
addition, this section will investigate the market potential of the
products and services, the competition, site locations, price
recommendations, customer promotion/marketing/advertising, and even the
grand opening plans.
The
marketing section of the feasibility study is terribly important to the
success of the franchise. It
should be developed with the utmost care and thoroughness.
The franchisor should be able to write down and explain each and
every item contained therein.
VISION/MISSION STATEMENT What is the big picture? What do we want to be doing in the long run? What is the vision or dream which the franchisor has for the start-up, growth, and development of the franchise business? This is of critical importance to the franchise organization. RULE OF THUMB:
Without a vision, the business will perish. The
franchisor should list down what the basic and goals are for the next
three to five years. These objectives may often include the start-up of the first
franchise, as well as the awarding of the 100th franchise unit.
The franchisor needs to determine what they ultimately want to do
and when they are planning on doing this.
The goals and objectives should specify what marketing plans are
to be developed for the next three to five years.
Probably one of the most difficult aspects of any business plan is the explanation for all the products and/or services that are going to be provided by the business. This may sound rather mundane and simple. However, when you finally develop it, you need to explain in detail what products are going to be offered and how are they going to be used. You also need to discuss in this section the target market including who, where, and how many people will buy. Included in this section will also be the demographics of the target markets such as age, sex, income, marital status, and education. All products or services to be offered need to be listed. If you choose to open a men's shirt store, then you need to list down all the brands, sizes, and general descriptions of shirts that will be offered as well as any socks, or t-shirts which might also be sold. What
promotion or advertising are you going to use to promote to the
prospective franchisee? Remember that the franchisor has two distinct target markets:
(1) franchisees and (2) end consumers.
You need to develop the advertising to promote to the franchise as
well as to promote to the end consumer.
You need to be able to develop the media mix (newspapers,
billboards, yellow pages, etc.) that you will use in developing and
promoting your products. You also need to explain which promotions, and direct selling
or public relation announcements that you wish to use in developing your
system. The
franchisors are allowed to only suggest prices or pricing structures to
franchisees. The franchisor
is not allowed to dictate price requirements for this is a violation of
antitrust regulations. Before
making any final determination, however, about a specific price
recommendation it is important to determine the costs schedules at
various levels of production or promotion cost per unit.
The "ideal" price is based upon the costs, as well as
the profit desired but this may of necessity be changed because of
direct competitors and their pricing structures.
Site Selection Criteria It is not that terribly important where the franchisor locates their headquarters' organization. It is, however, terribly important that the franchisee be located in the right place to attract and draw customers. Among location theorists there is a rule for retail business success. RULE OF THUMB: The three major criteria for retail business success include: (1) location, (2) location, and (3) location. Where are you going to locate the franchise and why?
What are the basic demographics associated with each site
selection including: sex, income, marital status, and education.
What are the psychographics or lifestyles of the customers in
that area? Many
franchisors have learned that it is appropriate to help provide the
franchisees with a grand opening plan and program.
This allows the franchisees to not only to be open but also
provides them with the excitement of drawing larger crowds to the grand
opening affair. The grand
opening plan will explain who is going to be doing what, when, where,
how and why. This grand
opening plan should also reflect the costs of both the franchisor and
the franchisee. The
franchisor at times will assume some costs for the presence of staff
personnel that will assist the franchisee and their new staff in the
development, training, and opening of the franchise unit.
CUSTOMER ADVERTISING The franchisor may help the franchisee by preparing the initial advertising slicks, yellow page advertisements, Grand Opening advertisements, newspaper and media advertisements, an annual advertising calendar (if appropriate), public relations / human interest news stories for the press, and any other promotions and direct selling materials that the franchisee should use. Advertising is a positive way of informing the general public about your products and services.
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