Franchising Brand Marketing After The Ordinance

Brand competition among franchised brands, especially in catering, beauty, retail, laundry and other fields, is becoming more and more intense.

How to win?

There is only one answer: the differentiation of brand marketing.

On February 2007, Premier Wen Jiabao formally signed the "Regulations on the administration of commercial franchise" (hereinafter referred to as the "Regulations"), and began to take effect from May 1st. Franchising enterprises will enter the era of development with brand management as the core.

Franchising is closely related to brand management.

First of all, from the perspective of content, franchising is a business mode that permits the use of registered trademarks, enterprise logo, proprietary technology and other business resources, which belong to the category of intangible assets, and its essence is brand.

Secondly, from the perspective of expression, franchisees (franchisees) should carry out business under the unified operation mode according to the franchise contract, including the unity of business philosophy, the unity of store image, the unification of operation process and the unification of product service. This unified regulation is identical with the brand's "one voice, one image, one standard" operation rule.

Integrity -- the fundamental of franchise marketing

According to the statistics of China Chain Store Association, by the end of 2006, our country has 2600 franchise systems, ranking first in the world.

But in fact, there are more than 10000 enterprises carrying out activities under the name of franchise in China. Some of them are playing the leading role of internationally famous brands with various unrealistic commitments. There have also been typical franchising fraud cases such as "Kendry", "golden flagship" and "Pride Pavilion".

The introduction of the regulations clearly stipulates the admittance threshold, filing system and information disclosure system of franchising, and also stipulates that it is not allowed to publicize the contents of investment income in the promotion process.

Good faith management is the fundamental principle of brand marketing and the first principle followed by all successful franchising enterprises.

Profitability -- the cornerstone of franchise marketing

The regulations stipulate that franchising enterprises must have a "mature business model". In fact, franchising does not sell specific goods or services, but a profit making mode and a way to make money.

At present, there are many franchises in the Chinese market which lack the real profit model that can stand the market test. Some enterprises do not even have their own direct stores or lack the core competitiveness of the profit model, resulting in a very low survival rate of franchised stores.

System -- guarantee of franchise marketing

Franchising is a business mode based on the licensing of intangible assets, the independence of headquarters and branches in the qualification of civil subjects, and the emphasis on the support of headquarters to branches.

The regulations also emphasize that the franchisor should "have the ability to provide the franchisee with services such as continuous business guidance, technical support and business training."

The characteristics of franchising business mode determine that a standardized management system must be established to support the development of the franchise system.

Positioning -- the weapon to win the brand of franchise

Brand competition among franchised brands, especially in catering, beauty, retail, laundry and other fields, is becoming more and more intense.

How to win?

There is only one answer: the differentiation of brand marketing.

In the face of KFC's family oriented competition, McDonald's business situation has been low, and it has been found that the original positioning of children as the market target is out of date.

Faced with the strong offensive of foreign brands and the squeezing of local Chinese fast food market, Chinese fast food brand really Kung Fu brand positioning as "nutrition", highlighting the original flavor of "steamed culture", and thus suddenly become a dark horse in China's fast-food chain.

Integration -- the trend of franchising brand promotion

5 years ago, the media invested 200 thousand advertising fees, may recruit 100 franchisees, and now may only recruit 10.

Faced with this reality, many franchising enterprises have or will adjust their brand promotion strategies and methods. From a single advertising bombing, they begin to adopt integrated strategies and means to brand building and promotion.

In the process of integrated marketing promotion, franchising enterprises will return to the two origin, terminal consumers and terminal stores.

The reason why people who apply for KFC, McDonald's and carpenter's carpenter come in endless stream is that they are committed to building a brand that consumers love, and are committed to continuously improving the profitability of every shop.

Seize the consumer, and also seize the franchisee; grasp the profits of every shop, no worries about no one to join.