Why is marketing important when franchising your business in India – Benefits and challenges while selling your franchise.

Written by Sparkleminds

Wondering how marketing and franchising your business are connected?  Well, there is a connection. Franchise marketing is important because it helps franchisors build and keep up the brand’s image and helps the other entity get leads and grow the business further. So, these marketing activities are good for everyone involved.

Our blog will give you insights into how franchise marketing works, the benefits of using marketing to grow your business in India, challenges you could come across, and more.

Importance of Franchise Marketing in Business Expansion

Franchise marketing is an effective and efficient way for businesses in India to grow by taking advantage of local expertise, shared investments, the ability to grow quickly, and marketing strategies that are tailored to the country.

It helps businesses deal with the difficulties of a large and diverse market, which increases their chances of success and speeds up growth.

Here are a few elements which show why it is a crucial element when you decide to grow your business in India.

  1. Increased Market Penetration – India is a big and varied country with more than 1.3 billion people living there. It can take a lot of work to establish a position over such a large area. Franchising is a faster way for businesses to get into new markets because it lets them use the local knowledge, resources, and networks of partners to spread their brand to new areas.
  2. Localized Expertise – India is made up of many different states and areas, each with its own culture, language, and consumer tastes. Through franchising, companies can use the local knowledge of partners who have a deep understanding of how the local market works. Franchisees can change the business model, goods, and marketing strategies to meet the needs of the target market, which increases the chances of success.
  3. Scalable Business Model – The franchisor can quickly grow its business with a scalable business strategy like franchising. By letting partners use the same business idea, the franchisor can grow in more than one place at the same time. This ability to grow is beneficial in a country as big as India, where it can take a lot of work to reach customers in different areas using standard growth methods.
  4. Local Brand Ambassador – Franchisees often become brand ambassadors in their own communities by actively promoting the brand and its goods or services. This kind of marketing can greatly affect the brand’s reputation and help it catch on faster in new areas.

Now that you have read why it is a crucial element when it relates to business growth, it is also important to note that it also comes with some challenges.

Challenges Business Owners Could Face While Using Franchise Marketing

While franchise marketing continues to be one of the best ways for business owners to grow their businesses across the country, there are some obstacles that may occur while expanding.

Some of the common challenges faced are.

Challenge #1. India has a vast and diversified market.

India is a country with many different languages, cultures, and areas. This makes it hard to come up with marketing tactics that work well for different parts of the population. Businesses need to change their marketing messages and strategies to meet the wants and preferences of people in different places and age groups.

Challenge #2. A country with a competitive market

India’s business environment is very competitive, with many local and international players in many different fields. It can be hard to stand out from the competition and gain market share. To stay ahead of the competition, businesses need to come up with unique value offers, set themselves apart, and keep coming up with new ideas.

Challenge #3. Rapid Digitization

India is becoming more digital quickly, but there is still a digital divide between urban and rural places, as well as differences in how many people have access to the internet and smartphones. Businesses need to figure out how to bridge this digital gap and come up with marketing plans that work well for both online and offline customers.

Challenge #4. Change in Consumer Preferences

Indian purchasing habits are changing quickly because of things like more people living in cities, more money in their pockets, and the effect of social media. Businesses need to be flexible and change their marketing strategies to fit the changing tastes and habits of their customers.

Challenge #5. Culture Sensitive

In marketing efforts, it’s important to think about cultural differences and sensitivity. India is a country with a lot of different beliefs, customs, and practices. Businesses should be aware of these cultural differences, so they don’t offend or turn off possible customers. It’s important to adapt marketing messages and strategies to different cultural settings if you want to be successful.

Challenge #6. Language and Communication

India has many languages that are spoken in different parts of the country. Language barriers can make it hard for companies to reach out to more people. To connect with different parts of the people, marketing materials, content, and communication need to be changed and put into different languages.

But will these challenges pose a barrier for businesses planning to expand in the country?  Well, every problem has a solution, and using the right tactics and approach, can help business owners grow their brand successfully in India. 

Marketing Strategies Every Business Owner Should Consider While Expanding Their Business in India

In India, business owners can try the following marketing strategies to help them deal with the challenges they face and grow their businesses.

  • Do thorough market research to determine what the target audience wants, what they like, and how they act. This helps marketers come up with focused marketing plans and messages that customers will respond to.
  • Change your marketing strategies and messages to fit the wide range of languages, cultures, and regions in India. This means translating the material, considering local customs and traditions, and being aware of other cultures.
  • Use the power of digital marketing to get your message out to more people. Invest in search engine optimization (SEO), social media marketing, content marketing, and email marketing to grow the business’s online presence and connect with possible customers.
  • Find the business’s unique selling points and make sure the target audience understands them. To stand out in an increasingly competitive environment, a business should focus on the benefits and value it must give compared to its competitors.
  • Come up with pricing strategies that are both competitive and profitable. When figuring out the best prices for your goods or services, you should look at things like market demand, production costs, and how much your competitors are charging.
  • Keep up with market trends and customer needs by creating a culture of innovation within the business. Introduce new goods, services, or features often to meet the changing needs and wants of your customers.
  • Stay flexible and change your marketing strategies as the market changes. Keep an eye on industry trends, how customers act, and what your competitors are doing so you can react quickly and change your marketing efforts as needed.

In short, make sure that marketing and advertisements meet all legal and regulatory requirements. Keep your marketing practices honest, respect your customer’s privacy, and follow industry standards to build trust and stay out of trouble with the law.

Nevertheless, by using these strategies, business owners can deal with the challenges of marketing in India and improve their chances of growing their businesses.

Benefits of Franchise Marketing for Business Expansion

Marketing gives businesses the tools they need to spread the word about their brand, break into new markets, build relationships with customers, improve sales, and stay ahead of the competition. By using marketing tactics, business owners can open a lot of doors in the Indian market for growth and success.

Some of its benefits are as below:

  • It helps create awareness about your business products and services, enhancing brand recognition and visibility which are crucial aspects of business expansion.
  • Market penetration thus helps business owners understand the targeted audience, and how they can position their services to address the needs.
  • Marketing makes it possible for a business to grow and expand. By promoting your products or services well, you can get investors, possible business partners, and franchise opportunities. Marketing makes it easier for your business to grow and opens the door to more growth in the future.
  • Marketing is an important part of growing your business in new areas and places. With good market research and localization, you can tailor your marketing messages and strategies to fit the needs of different areas and groups of customers.

To Conclude,

Our blog has provided insights into how franchise marketing can help you grow your business in India.  Nonetheless, you can get in touch with us at Sparkleminds if you are one of those business owners looking to grow your business in India right away!

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Do you know the franchise success story of McDonald’s?

Written by Sparkleminds

McDonald’s is a brand and franchise that’s reached worldwide popularity. Today, the brand is synonymous with burgers, fries, and shakes. Coupled with its iconic logo, anyone can recognize the brand no matter where they are.

Let’s talk about the MC Donald’s franchise success of the brand

In this blog, we’ll discuss the brand’s history, the founder of the brand, some of the business models McDonald’s has used for its franchisees, and its marketing strategies. 

 

A Brief Introduction to the Brand and Franchise

The McDonald’s corporation is a North American fast-food organization. Its best known for its burgers, cheeseburgers, and fries, but the menu also includes other popular items like its Happy Meal, that’s a hit with its younger customers, the Big Mac, the McFlurry, or even its separate breakfast menu.

And in light of changing preferences, McDonald’s has recently introduced fruit and vegetable choices in its meal packages. By bringing in healthier options the brand hopes to inspire healthy-eating choices in its younger customers.  

A History of McDonald’s

McDonald’s was first established in 1940 by brothers Richard and Maurice McDonald in California, United States. Originally a drive-in, the brothers decided to revamp the business in 1948. The new model was designed to produce huge amounts of food at low prices. To achieve this, the brothers limited the menu, only offering a select few items, and developed a high-Speed Service System.

This system allowed them to introduce a self-service counter and eliminate the need for staff. The burgers were made ahead of time and placed under heating lamps which allowed them to charge 15 cents a burger – almost half the price of competing restaurants at the time.

Ray Kroc

Ray Kroc, the former CEO of McDonald’s was originally a salesman who supplied appliances for the restaurant. In 1954, he visited the shop to see how one small store can sell so many milkshakes and realized the potential the brand held.

Kroc became a franchising agent for the brand and launched McDonald’s System Inc., which later came to be known as McDonald’s Corporations. In 1955, he opened the first franchise east of the Mississippi River in Des Plaines, Illinois. And in 1961, he bought out the McDonald’s brothers for $2.7 million.

The Brand’s Mission and Ethos

McDonald’s mission of “Quality, Service, Cleanliness, and Value”, is what has kept the brand in the business. The McDonald’s franchises focus heavily on five fundamentals – people, products, place, price, and promotion. Along with their business strategy “Plan to Win”.

And the McDonald’s business model depends heavily on three core principles – retaining, regaining, and converting. It focuses on retaining old customers, regaining lost trust, and converting casual customers into regular/loyal ones. Additionally, it’s embraced digital advancements and food delivery. The company has always been open to reshaping its customer experience through innovation and human endeavors.

The McDonald’s Franchise System

Kroc soon realized that franchisees were integral to the success of the brand and launched a franchise system. As he once stated, “McDonald’s can’t be successful unless our franchisees are successful.”

He prepared exact standards of how each McDonald’s was supposed to be run from cleaning to food preparation. And to ensure consistency, he created Hamburger University in 1961, to train franchisees.   

He eventually changed the format of the restaurants by adding counter staff to take customer orders and also added a drive-through. An addition that’s become prevalent in almost all fast-food franchises today.  

What Does Owning a McDonald’s Franchise Look Like?

McDonald’s opened its first international outlet in 1967 in Richmond, British Columbia, Canada. And by the early 21st century the brand had over 34,000 outlets across 115 countries worldwide. Growth was so quick that it became the most popular family restaurant, with its affordable food, separate menu options catered towards children, and flavors that appealed to nearly everyone.

With over 60 years in the business, as a franchise, McDonald’s has a proven framework for success. It’s a classic example of a heavily franchised brand. As of 2021, over 56% of its revenue came from franchised restaurants. While the company owns and operates (COCO model) a small percentage of its restaurants, McDonald’s plans to reduce that number to 5%, with a long-term goal to transition towards 95% of its outlets being franchised (FOFO model) restaurants.

In 2021 the company generated over $23 billion in revenues, of which $9.78 billion was from company-owned restaurants and $13 billion from franchised restaurants. And the success of their overseas franchise models has resulted in the term, “McDonaldization”

Developing McDonald’s Marketing Plan

In less than ten years, after Kroc became the sole owner of the franchise, the number of outlets exceeded 1,000. Through its success, the company began trading publicly in 1965.

The first ever McDonald’s mascot was a burger wearing a cooking cap who was alluded to as Speedee. In 1962 the golden arches were introduced and have continued to be the face of the brand, even today. The logo was inspired by the tall yellow arches that dominated earlier McDonald’s rooftops.

And lastly, in 1965, their newest mascot, Ronald McDonald was introduced. However, the growing negative perception of clowns in the 21st century resulted in them sidelining the character.

The most notable addition to the brand was the introduction of the Big Mac to the menu. The iconic hamburger was an instant hit and the company’s top-selling product, after its French fries. These changes helped the brand grow and gain popularity among the masses.

Criticisms Leveled at the Brand

The success of McDonald’s also brought its fair share of criticism of the brand. A lot of this was concerned with the brand’s association with the global increase in obesity. In the early 2000s, various lawsuits and complaints were filed and registered against the company in the United States, alleging that its food caused health problems. The company also received a lot of negative press from the documentary Super-Size Me (2004), in which the filmmaker documented a decline in his health while on a diet of only McDonald’s foods.

In response, the brand started developing vegan options for its menus, like McVegan, P.L.T., and McPlant. And in 2017 the company released its first plant-based burger. In 2018, the company announced that it had stopped using preservatives in most of its burgers and eliminated its super-sized menu options. And its US and Canadian branches stopped using Trans fats in a number of its food items. However, this did little to curb the health concerns regarding the brand.

Additionally, the company also faced a spike in the number of calls to increase employee wages. The term “McJob” was added to Merriam-Webster to mean a low-paying job. Recently, the company has come under fire, similar to other large corporations for its negative impact on the environment, especially concerning greenhouse gas emissions.

In answer to this, the company increased employee wages and launched initiatives to cut down on its carbon footprint. Like launching programs to move towards using recyclable bags, utensils, and other items. And making moves to be increasingly transparent in their production processes.

The Future of McDonald’s

As of 2022, McDonald’s is still a leading franchised brand in the fast food industry. Frankly, there’s little doubt about the company’s ability to attract customers. Even during a bad year, McDonald’s still makes a profit.

As for the future expansion of the brand, McDonald’s has already been taking steps to improve upon its already successful business model. This can be evidenced by the introduction of automated ordering stations in their outlets, digital or contactless payment options, and more plant-based food items in their menu to cater to a more diverse customer base.

They also plan on remodeling their restaurants to cut down on carbon emissions by either replacing their equipment or altering their practices. McDonald’s plans to fully achieve company-wide, net zero emissions by 2030.

In Conclusion

McDonald’s is a great business model for startups or experienced entrepreneurs to read up on if you’re currently looking up references to start your franchise. It’s got a proven working model and over 60 years’ worth of experience in the industry to back it up. All of which can be evidenced by the franchise’s worldwide success.

So what are you waiting for? Take action now! Your business can be the next global franchise successful brand. Start franchising today with sparkle★minds. Connect with us now!

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5 ways to expand a Retail Business in India

Written by Sparkleminds

The most challenging aspect of starting your own business is getting it off the ground. Extreme dangers and a great deal of unknown information are inherent in the situation. Only 50% of enterprises have survived in the past five years, so congratulate yourself and the team for being in the business. It’s high time you up your business game!

5 ways to expand a Retail Business in India

Are you the Business owner, who wants to know how to expand a retail firm in India and is finding ways to improve an established retail business in India? This is for you. Let’s examine the 5 best strategies for expanding a flourishing retail business in India.

1. Adding a new location

Being present in a new location to expand your retail business is undoubtedly one of the most obvious ways to expand your business. This must be a deliberate choice, as creating a new site entails a significant amount of work and frequently a considerable investment.

Keep in mind that growing your business requires more than merely duplicating your current store. Even though you wish to build on a winning model, a new location will bring in a new clientele. What worked in one city or community may not apply to another.

To maintain consistency across all of your sites with your operations and retail logistics make sure you maintain the same processes, rules, channels for communication, multi-location POS, payroll, customer service, etc. This makes it simple to compare many locations or measure crucial KPIs from one store to another store. By streamlining processes, onboarding and training of the personnel should be well-organized.

A proven method to grow your business is to open in a new location considering a few key KPIs

2. Sell on New Channels

Retailers now are fortunate to have access to no. of sales channels than ever before to market their goods. Diversifying your company into a new sales channel is a safer and less expensive option to expand.

  • Your own e-commerce business is the best place, to begin with. Setting up a simple e-business is simpler than ever before now.
  • Third-party online markets are even simpler. They earn a commission from each transaction, similar to a consignment shop, but if you don’t have the time or resources to open your own, selling on platforms like Amazon or eBay makes it simple to get started without making a big investment.
  • Last but not least, social media has become a fast-growing sales channel, particularly if you already have a massive fan base and a well-established brand presence on Facebook, Instagram, or Pinterest.

You can sell directly on the social networking platform itself or connect your e-commerce store to posts there. Additional services that further simplify the purchasing procedure and relieve almost all of the strain from the seller have made this process even simpler.

3. Expand Your Product Line

Expanding what you sell is another fantastic way to grow your retail business. It is advisable to roll out new goods or services as long as the expansion is consistent with your existing brand image.

When you do decide to expand your product line, keep in mind to test each new addition and compare its performance to that of your current offerings. To make this simple, utilize a retail POS system.

You can easily evaluate the performance of each new product thanks to detailed product reports, which also give you the information you need to decide what is best for your company.

4. Set up Pop-Up Shops

The Pop-up store is an efficient way to increase brand identification and educate customers about your store. They are a simple and inexpensive way to expand your business. They also have several other outstanding advantages for the expansion of retail:

  • Pop-ups promote the brand presence and educate customers
  • They’re a simple approach to attract some media attention.
  • A new product can be tested to evaluate how well it sells.
  • They enable you to move inventory slowly to free up much-needed warehouse space.

A pop-up shop is an initial step toward an aggressive retail expansion, so don’t underestimate the power of pop-ups

5. Partner with Businesses

Partnering with another established company for a new product/ service launch is the safest way for business expansion. This entitles you to bypass the majority of the initial outlay. The collaborating company already has the infrastructure and resources in place to reach your target market.

Eg: Find a nearby company that offers apparel to young adults if you sell children’s clothing and are considering doing the same in the outlet of the collaborating company. Request them to stock a few of your test products and monitor their performance.

sparkle★minds is helping businesses like yours with their business expansion for more than 22+ years. Connect with us now to learn more about how we can help your business.

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