When I refer to the names McDonalds or Dominos to you what thoughts pass through your mind? Do you think of a popular Scottish family name and a popular game played with little black wooden blocks? I would suggest that for lots of people the first idea in their head was in reality two well-known fast food eating places. This really is the power of branding.
Branding is significant in support of the simple reason that a possible buyer may already have a preconception on the subject of what to anticipate from the business. This may of course perform both ways:-
Benefit of brand recognition in a franchise business
Combined with a franchise system, a strong branding can potentially convince a buyer to your favour when selecting between a brand popular franchise opportunity or an unbranded option. This only works as long as a good message is looked after across the franchise network regarding the brand reptutation to ensure that potential shoppers have a very favourable outlook of the business regarding expected value of services or products supplied. Generally, customers ought to feel secure to make use of any franchised store in the familiarity that their expectations will be fulfilled about that brands quality and service, regardless of whether they have never up to that time been to that shop. The brands status provides them confidence.
Disadvantages of brand name recognition in franchise opportunity business
Its worth considering that if a single store delivers inadequate service then this could damage the entire network in the customers mind. In these days of social networks and open on-line discussion, inferior service can increase like wildfire. A generally publicised YouTube video focussing on a particular air carriers weak handling of a travelling singers guitar shows the power of this open communication plus the affect it might have over a brand name. While the film was probably enormously comical for the eight million odd people that viewed it, the stocks in the air carrier bombed 10% once this film was let loose costing this company $180 million and incalculably more in lost buyer loyalty. Just one case in point of how an isolated event might turn out to be really costly to an entire network.
Therefore what does this mean to me?
When thinking about franchise business opportunities, investigating the businesses brand status is something you’d do nicely to consider. What do customers think about the brand? What is being said on the internet in debate forums and social networks? Even though it is evidently advisable to look at a balanced view (as frustration can often be expressed a lot more loudly than satisfaction), these issues can make a difference when choosing where to place your hard-earned investment. Its worth remembering though that no one expects perfection, although they do count on wrongs to be righted quickly and effectively.
Sensibly measured, the branding a franchise business is often of significant advantage, provides belief and attracts customers. Only be certain you are properly educated of what is being believed in regards to the brand reptutation and how the franchise operator handles adverse media.