Strategic Brand Positioning for Franchises in a Competitive Market

This article has been contributed by Mr. Gagan Anand, Founder, Scuzo Ice ‘O’ Magic.

In the contemporary fast paced and competitive business, strategic brand positioning is crucial for the success of any franchise. Remaining relevant has increasingly become more important and difficult due the combined pressure of active digital media, unreliable customer behaviour influenced by new trends as well as high competition in the market. A well-positioned brand not only resonates with its target audience but also establishes long-term loyalty, driving profitability and growth. 

How a brand is perceived in the minds of the customer is called brand positioning. For a franchise, this involves crafting a distinctive value proposition that appeals to both franchisees and end customers. The strategic aspect of brand positioning ensures that this value proposition is consistently delivered across all locations, ensuring brand integrity and customer trust.The objective is to establish a different yet compelling image that relates to the target audience on multiple levels. For franchise models to survive, it is essential to create a balance between larger narrative by the brand as well as the local adaptability by the franchisees. 

Key Elements of Strategic Brand Positioning for Franchises

1. Target Audience Alignment 

One needs to have clarity while defining their target audience as it should align with the brand positioning. Every franchise should define their target audience on the basis of gender, age, financial background, cities they belong to and their food choices in this case. Once defined, it would become easier for the brand to generate marketing messages and services accordingly. The franchise brand should constantly be aware of the changing trends and preferences especially of their targeted segment to remain relevant in the saturated market.

2. Clear Differentiation

The franchise should be aware where they stand in the ecosystem. These unique selling points can help them define their perceived image in the minds of the customer. These differentiators could be anything from product innovation, price, customer service in terms of convenience etc. Further brands can also incorporate their USP’s to create a competitive edge in the market. The demarcation allows the target audience to have a clear relation with the brand. 

3. Brand Consistency 

Maintaining brand consistency is one of the most difficult challenges for any franchise. The brand should offer unified guidelines of marketing and training programs to avoid any discrepancies in engaging with the customer. This consistency across all locations would allow the customer to establish brand loyalty and assurity to be served with the same product offering and brand messaging. Centralized practices help in building trust and recognition.

One of the major ways a franchise can maintain consistency is by having sufficient inventory. Lack of inventory can lead to bad customer experience and avoidance of that franchise in future due to lack of products. First impressions last a long time and failure to service would discourage the customer to repeat visits which would in turn not only lower the expected business for the franchise but would damage the brand’s image. 

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4. Local Market Adaptation 

Localised flexibility is essential for the success of a franchise. While maintaining the brand identity, franchisees should also adapt the culture and preference of the region. For example, McDonalds has been doing this since inception where it introduces food inspired by the local flavours and hence establishes a connection with the said market. In a similar fashion, franchisees by incorporating local tastes will create stronger connect with the customer base. 

5. Digital Presence and Innovation 

World has gone digital now and what is visible in digital space is what sells. Franchise should prioritise its online presence to strengthen the brand reach to its audience.

For franchises, it’s vital to provide localized digital marketing tools to franchisees, allowing them to promote their stores while keeping the brand’s voice intact. Introducing a strong marketing plan, advertising and leveraging social media would enhance its existence and recall value. Technology and innovating customised customer experience with the help of data analytics and AI plays a major role to promote brand loyalty.

6. CSR initiatives 

Modern consumer base is more inclined towards brands that favour sustainability and CSR activities. One way to promote sustainability is by introducing eco-friendly packaging, educating people about organic sourcing, and involving the community. Such practices would help the customers to build stronger connections with the brand and establish brand loyalty. 

Role of Franchisees

Franchisees are the brand itself in the eyes of the customer, hence they play an important role in establishing brand consistency and customer perceptions. Brands should involve franchisees in strategic decisions and provide the necessary tools to help them succeed in delivering the brand’s value proposition. By fostering a collaborative relationship between the franchisor and franchisees, brands can ensure consistency while leveraging the local knowledge and expertise of their franchise owners.

To sum up

Strategic and deliberate brand positioning practices involve two aspects - consistent brand identity and localised adjustment. Through the identification of the ideal customer segment, franchisees can establish a strong image and brand loyalty in the market. On the same page, brands should embrace and support franchises in order to quickly and ethically scale their business and engage with their targeted audience in a seamless manner. By sharing responsibility for customer services, brands can focus on product innovation and elevating the brand’s perceived experience. A successful franchise is one that focuses on market positioning and unified experience. 

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