Sometimes as business owners planning to expand their business across the country, we think about why brand recognition in franchising is so important in India? In simple terms, it elevates the franchise’s worth.
A strong brand encourages consumer loyalty and awareness, which raises demand for additional franchise sites and raises the value of the overall franchise system.
But is that all? Well, certainly not. There is more to it that can meet the eye. We are already aware that the benefits of franchising are numerous. But let us see why using a well-known brand name with a solid reputation is one of the advantages that matter most.
Brand Recognition in Franchising – 4 Crucial Aspects which show the power and importance of a franchise brand
No matter what kind of goods or services a company offers, success depends on creating a well-known, identifiable brand. The success of the franchisor and the franchisee in a franchise network is influenced by the brand.
Four crucial reasons why brand strength is so important for business owners creating franchises.
- A mode of attracting customers – Good branding not only increases consumer awareness of the supplied goods or services but also creates expectations for the experience they will have.
- Ways to attract new potential franchisees – A strong brand has a win-win outcome. Because of the strong client base it builds, all of its franchise sites see an increase in revenue, which lowers the startup risk and encourages additional business owners to form franchises.
- Competitively different – It’s important to stand out from the crowd because there can be severe competition in the industry. A strong brand not only aids in differentiating a business and its goods or services but also boosts client retention.
- Raises the Franchise’s value – A strong brand encourages consumer loyalty and awareness, which raises demand for additional franchise sites and raises the value of the overall franchise system.
Brand Recognition Examples
The degree to which a consumer can correctly recognize your brand on the basis of visual cues like your logo and colours is known as brand recognition.
3 simple examples of Brand Recognition in Franchising.
- Dunkin Donuts – if you see the pink and orange lettering of Dunkin Donuts up ahead, you would immediately recognize it as Dunkin Donuts even before you could make out the words.
- McDonalds’ – Due to intensive advertising and customer exposure, the “M” logo of the company is recognizable, allowing consumers to recognize it without having to read the name.
- Apple – Customers can identify the business as “Apple” by the half-eaten Apple logo.
Why is investing in branding Vital for business owners looking to franchise their business?
Simple. Of course, branding is crucial for any business. Yet, consistency must be preserved across every franchise branch to retain quality and satisfy the demands and expectations of customers as a franchisor starts to build additional physical sites and develop through a network of franchisees.
Because of the assurance that comes with being a part of an established and well-known brand, franchisees will join you and customers will patronize you. Your network of franchises depends on consistency.
So how can a franchisor encourage its franchise network to preserve and maintain the core brand?
1. Provide clear brand guidelines
If a franchisee doesn’t understand the brand, you cannot expect them to be true to it. The usage of logos, colours, typefaces, and all other visual aspects, as well as style guides and the tone of voice to be used by franchisees in all communication, should all be covered in a franchisor’s explicit set of guidelines that pertain to the brand and its protection.
Providing specific illustrations of both what to do and what not as well as excellent practices and what is part to be “on brand.”
2. Proper Training for Franchisees
All franchisees must fully comprehend the significance of trademark protection as well as the brand standards they are expected to uphold.
Franchisee training should include the benefits to franchisees and their businesses (and consequently their bottom line), their consumers, and the entire team of everyone staying brand consistent. It should also cover the consequences of failing to do so.
The key to successful franchise branding is having franchisees who totally commit and are on board.
3. Provide franchisees with content and templates
Most franchise brands encourage their franchisees to involve in their neighborhood and sell their companies there, placing their names, faces, and personalities front and center.
At this point, it may be enticing for franchisees to deviate from the brand rules or challenge them to do so.
4. Proper Monitoring
The secret to keeping a successful franchise brand is for the franchisor to continuously and consistently monitor franchisee compliance, address instances where a franchisee might deviate from what is expected or on brand, provide additional training and support where necessary, and look for and reward excellent examples of franchisee brand compliance.
6 Steps to improve Brand Recognition of your business
Since a brand is an important part of any business, you need to understand the steps involved to improve this brand awareness across the masses.
Six steps are:
- Assist customers well by offering assurances and after-sales care.
- Create a touching narrative that explains why your company exists in order to win the client’s trust.
- Maintain your brand’s awareness in your industry and in the thoughts of your customers.
- Under commit & over-deliver – Added value that surpasses their expectations.
- Create a Facebook group or use other social media to advertise your business.
- Be consistent with your branding and utilize the same image or logo throughout all of your marketing materials to avoid confusing customers.
Rightly expressed in an article published by Michigan State University, Concentrate on customer experience and innovation to establish brand love. You can also read more about it in this article link by Venture Beat.
What impact does franchising have on a nation’s economy?
It won’t be wrong to state that franchising has tremendously helped the Indian economy in the last few decades. In short, the franchise sector is expanding quickly and aims to support the economy’s healthy expansion through fostering micro, small, and medium-sized enterprises (MSMEs), among other activities.
Below are some areas where this impact is observed.
- Employment Opportunities in the Franchising Sector – Domestic Vs Global: It is important to remember that the franchise industry in India represents 2% of the country’s Gross Domestic Product, despite the fact that the sector is still in its infancy (GDP). After the United States, the nation already has the second-largest franchise market in the world.
- India is about to undergo a tremendous transformation: In India, the franchising industry has a prediction d to reach $100 billion USD by 2024. The work landscape in the nation is about to shift, which could result in unheard-of economic development and significant advancements. Young people, who frequently choose franchising as their first business venture, are driving the development in demand for franchising across a variety of industry sectors.
From Sources across the Web – Famous Brand Franchises in India
Here are some of the top brand franchises in India, which have grown their brand recognition in franchising across the country, by following the key aspects as highlighted above.
- Subways
- McDonald’s
- InXpress
- EuroKids
- Amul
- Lenskart
- HeroMotorCorp
Key Takeaways on Brand Recognition in Franchising
- Consumers’ capacity to distinguish between a brand belonging to one company and one belonging to a rival is known as brand recognition.
- Customers are able to recognize a company from visual or aural signals alone. This is possible even if they haven’t heard the company’s name. This is effective brand recognition.
- The marketing department of a business develops the cues, which are subsequently promoted to clients.
- Brand recognition indicators include things like names, markings, logos, and jingles.
FAQs:
Q.1. Why is brand recognition important?
To ensure that consumers prefer the goods and services they use over competing goods, brand awareness serves this aim. They can continue to enjoy these goods and services with the help of this information. Customers can learn about their products and find solutions to their problems when a brand is easily recognizable. This makes it feasible for them to distinguish between genuine and fake goods.
Q.2. How does brand recognition work?
Being branded means that a company’s or an organization’s goods and services acquire significance in the eyes of the public. A brand is mostly a term given to goods or services that have a unique identity. As a result, brand recognition is effective when consumers can recognize a company from its visual or auditory clues. Brand recognition is a concept in marketing and advertising to alert consumers to certain products available on the market.
To Conclude,
To sum up, early impressions matter a lot. That first impression is of the brand itself for a company, so it has a lot of weight. More than just a logo, jingle, or colour palette can define a brand. It’s everything that customers know (or believe they know) about a company and also the experience they anticipate having.
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