27.4.09
Amstel ::: Truck vrachtwagen
Nothing is allowed to slow the progress of an Amstel delivery truck on its rounds. The truck is allowed an exclusive lane on the motorway, it takes precedence on a car ferry, and hundreds of marathon runners are forced to wait while it passes. Traffic cops turn a blind eye while the truck speeds past. A young man learning to drive is astonished when his instructor slams on the breaks, even though he has right of way. But nothing comes before Amstel, that Dutch national treasure.
Language: Dutch,
Length: 45"
Agency: Doom & Dickson Amsterdam
Production house: Bonkers
Language: Dutch,
Length: 45"
Agency: Doom & Dickson Amsterdam
Production house: Bonkers
Can Brand Loyalty Be Bought? - how susceptible are consumers to loyalty programs?
The classic brand loyalty program offers a combination of rewards and recognition. The bottom-line objective of the program, however, is retention—to ensure that a customer continues to purchase a product or service and remains loyal to that particular brand.
First airlines, and then hotels, used loyalty programs to offer incentives to frequent travelers, but today brand loyalty programs are just as common in financial services and retail.
One of the fastest-growing brand loyalty markets is financial services. Credit card companies in particular have adopted the rewards model with increasing frequency. In some cases a credit card will be linked with a specific airline; in other cases, the credit card rewards its “members” with miles that can be used on any airline. Some credit cards also offer merchandise, cash back or other incentives that build up with credit card use. Some even promise customers they can get preferred seating at events or restaurants.
Brand loyalty is big business. More than 1.8 billion memberships exist in US loyalty programs, averaging 14 memberships per household, according to 2009 research conducted by COLLOQUY, a leading provider of loyalty marketing, publishing education and research.
COLLOQUY estimates about 44 percent of these memberships are “active.” Among the general US population, 57 percent of respondents claim to belong to a loyalty marketing program. This compares to 86 percent of Canadian consumers who participate in loyalty programs, according to another research study conducted by COLLOQUY in late 2007.
But do these programs work? Kelly Hlavinka, partner of COLLOQUY, tells : “From the results of our clients’ programs, loyalty programs are indeed effective at 1)increasing visit frequency, 2)increasing the amount spent annually and 3)retaining customers.
The current economic environment may heighten the importance of a company’s loyalty program.
For the consumer, participating in a loyalty program can help them stretch their limited budget a little bit further. For the company, retaining your best customers that have enrolled in your loyalty program is more important than ever.”
For hotels, loyalty programs seem to be paying off. Jill Noblett, senior vice president of loyalty and direct marketing for Wyndham Hotel Group, discussed the chain’s loyalty program at a “Loyalty Leaders” session at the Direct Marketing Association Conference in October 2008. She says the chain works “to deliver the message that points earned are an enabler.
You can take that vacation or visit one of our fabulous resorts with your expenses covered by redeeming points. What guests earn during their stays also provides them benefits—like a Home Depot gift certificate to use to fix up the kitchen—long after they return home.” Noblett says, “we’ve seen a correlation between redemption and repeat stays.”
For retailers, buying brand loyalty may be more of a challenge. The research conducted by COLLOQUY “suggests that typical two-tier pricing and discount-based rewards—the model that dominates high-frequency retail environments—simply don’t engage consumers,” the company says. “The retail discount reward is now a commodity.”
Aubyn Thomas, senior vice president of marketing services for credit and loyalty for Macy’s, also spoke at the aforementioned Loyalty Leaders session. “Because consumers are very selective in what they buy, we’re relying far more heavily on our Star Rewards program today than ever before,” she says.
The economic environment makes it especially challenging for retailers to reward customers appropriately. As a result, Thomas says, “…we’re turning to less-costly experiential ways of reinforcing customer relationships. So instead of thinking only about discounts and coupons… we’re now thinking about experiences. For example, an experiential reward might be first-class travel to see the Macy’s Thanksgiving Day Parade in person.”
While brand loyalty programs are designed to reward customers with tangible benefits, there is also a “softer” side to customer engagement. “The key to sustaining positive results from loyalty programs is a blend of economic and emotional rewards,” says COLLOQUY’s Hlavinka. “Smart companies strive to move beyond simple economic incentives to incorporate meaningful recognition benefits.”
Wyndham Hotels’ “ByRequest” program is an example of this recognition. “It’s high touch and provides guests with a personalized experience on property,” Noblett says. “ByRequest members can complete an online profile and tell us, ‘I want a certain type of pillow,’ ‘I want a snack and beverage in my room when I arrive,’ ‘I want a certain number of hangers in my closet.’ A manager on property welcomes ByRequest members and ensures that their preferences are met. How nice for a business traveler… to be able to check into a Wyndham and get that kind of special treatment.”
Still, a significant percentage of consumers do not participate in loyalty programs. As reasons for their lack of participation, they cite such economic factors as the need to spend too much and not wanting to pay a program fee, according to COLLOQUY’s research.
There are other non-financial demotivators that brand marketers need to understand. Consumers cited “boring rewards” and the feeling that “all loyalty programs look alike” as reasons for not belonging to a loyalty program. Additionally, there was a high percentage of what COLLOQUY refers to as “category churners—people who had previously played the game and dropped out.” According to the company, “While dropping out of a program is a common consumer experience, the number of consumers churning from the entire category of loyalty programs should raise alarms for loyalty marketers. Clearly, we’re not doing enough to keep customers engaged.”
All audience segments offered as a primary reason for non-participation the “lack of compelling rewards.” Almost half of non-belongers said loyalty programs look too similar. A third issue is the amount of churn: it appears that, regardless of audience segment, people join and then drop out of loyalty programs in relatively high numbers.
Those disappearing high numbers represent lost brand engagement opportunities—a high price for brands to pay in such challenging economic times.
First airlines, and then hotels, used loyalty programs to offer incentives to frequent travelers, but today brand loyalty programs are just as common in financial services and retail.
One of the fastest-growing brand loyalty markets is financial services. Credit card companies in particular have adopted the rewards model with increasing frequency. In some cases a credit card will be linked with a specific airline; in other cases, the credit card rewards its “members” with miles that can be used on any airline. Some credit cards also offer merchandise, cash back or other incentives that build up with credit card use. Some even promise customers they can get preferred seating at events or restaurants.
Brand loyalty is big business. More than 1.8 billion memberships exist in US loyalty programs, averaging 14 memberships per household, according to 2009 research conducted by COLLOQUY, a leading provider of loyalty marketing, publishing education and research.
COLLOQUY estimates about 44 percent of these memberships are “active.” Among the general US population, 57 percent of respondents claim to belong to a loyalty marketing program. This compares to 86 percent of Canadian consumers who participate in loyalty programs, according to another research study conducted by COLLOQUY in late 2007.
But do these programs work? Kelly Hlavinka, partner of COLLOQUY, tells : “From the results of our clients’ programs, loyalty programs are indeed effective at 1)increasing visit frequency, 2)increasing the amount spent annually and 3)retaining customers.
The current economic environment may heighten the importance of a company’s loyalty program.
For the consumer, participating in a loyalty program can help them stretch their limited budget a little bit further. For the company, retaining your best customers that have enrolled in your loyalty program is more important than ever.”
For hotels, loyalty programs seem to be paying off. Jill Noblett, senior vice president of loyalty and direct marketing for Wyndham Hotel Group, discussed the chain’s loyalty program at a “Loyalty Leaders” session at the Direct Marketing Association Conference in October 2008. She says the chain works “to deliver the message that points earned are an enabler.
You can take that vacation or visit one of our fabulous resorts with your expenses covered by redeeming points. What guests earn during their stays also provides them benefits—like a Home Depot gift certificate to use to fix up the kitchen—long after they return home.” Noblett says, “we’ve seen a correlation between redemption and repeat stays.”
For retailers, buying brand loyalty may be more of a challenge. The research conducted by COLLOQUY “suggests that typical two-tier pricing and discount-based rewards—the model that dominates high-frequency retail environments—simply don’t engage consumers,” the company says. “The retail discount reward is now a commodity.”
Aubyn Thomas, senior vice president of marketing services for credit and loyalty for Macy’s, also spoke at the aforementioned Loyalty Leaders session. “Because consumers are very selective in what they buy, we’re relying far more heavily on our Star Rewards program today than ever before,” she says.
The economic environment makes it especially challenging for retailers to reward customers appropriately. As a result, Thomas says, “…we’re turning to less-costly experiential ways of reinforcing customer relationships. So instead of thinking only about discounts and coupons… we’re now thinking about experiences. For example, an experiential reward might be first-class travel to see the Macy’s Thanksgiving Day Parade in person.”
While brand loyalty programs are designed to reward customers with tangible benefits, there is also a “softer” side to customer engagement. “The key to sustaining positive results from loyalty programs is a blend of economic and emotional rewards,” says COLLOQUY’s Hlavinka. “Smart companies strive to move beyond simple economic incentives to incorporate meaningful recognition benefits.”
Wyndham Hotels’ “ByRequest” program is an example of this recognition. “It’s high touch and provides guests with a personalized experience on property,” Noblett says. “ByRequest members can complete an online profile and tell us, ‘I want a certain type of pillow,’ ‘I want a snack and beverage in my room when I arrive,’ ‘I want a certain number of hangers in my closet.’ A manager on property welcomes ByRequest members and ensures that their preferences are met. How nice for a business traveler… to be able to check into a Wyndham and get that kind of special treatment.”
Still, a significant percentage of consumers do not participate in loyalty programs. As reasons for their lack of participation, they cite such economic factors as the need to spend too much and not wanting to pay a program fee, according to COLLOQUY’s research.
There are other non-financial demotivators that brand marketers need to understand. Consumers cited “boring rewards” and the feeling that “all loyalty programs look alike” as reasons for not belonging to a loyalty program. Additionally, there was a high percentage of what COLLOQUY refers to as “category churners—people who had previously played the game and dropped out.” According to the company, “While dropping out of a program is a common consumer experience, the number of consumers churning from the entire category of loyalty programs should raise alarms for loyalty marketers. Clearly, we’re not doing enough to keep customers engaged.”
All audience segments offered as a primary reason for non-participation the “lack of compelling rewards.” Almost half of non-belongers said loyalty programs look too similar. A third issue is the amount of churn: it appears that, regardless of audience segment, people join and then drop out of loyalty programs in relatively high numbers.
Those disappearing high numbers represent lost brand engagement opportunities—a high price for brands to pay in such challenging economic times.
Advertising Discipline and others
My reflections to an employment adMarketing Communications practitioners usually formulates own approaches on analyzing and developing advertising ideas
Personally, I learned to question and judge my approach as following:
Impact “Does it sell?”
Marketing is not entertainment business, even humor driven approaches aim to link brands with consumer mindsets emotionally.
Relevancy!
Is my communication strategy on core brand values? Does the expressive values share common ground? Is it relevant to my target group life style/ life stage?
Originality!
Is the idea familiar to my target group or sound odd? Has it been done before? Does it incorporate some or all of my brand essence? Is it going to employ brand advocates?
Touch point!
Is my brand having a dialogue with target group? Is it a positive brand activation and engagement on the long run? Do the brand in need to create its own medium at point of truth?
Traditional media Vs. New media
Personally, I learned to question and judge my approach as following:
Impact “Does it sell?”
Marketing is not entertainment business, even humor driven approaches aim to link brands with consumer mindsets emotionally.
Relevancy!
Is my communication strategy on core brand values? Does the expressive values share common ground? Is it relevant to my target group life style/ life stage?
Originality!
Is the idea familiar to my target group or sound odd? Has it been done before? Does it incorporate some or all of my brand essence? Is it going to employ brand advocates?
Touch point!
Is my brand having a dialogue with target group? Is it a positive brand activation and engagement on the long run? Do the brand in need to create its own medium at point of truth?
Traditional media Vs. New media
Complexity, mobility and fragmentation of any target group command brands to think out of the box in order to be differentiated specially on visibility, consumer promotions and below the line tactics that deliver on one single unique insight and relevant brand key proposition.
The Global Online Media Landscape
Social Media And Video Site Engagement Reshapes The Web
April 22nd, 2009
Online engagement by Internet users is deepening, according to a new report on the online landscape released today by The Nielsen Company. This increased engagement is in part a result of a shift toward video content and social networking as popular online subcategories.
April 22nd, 2009
Online engagement by Internet users is deepening, according to a new report on the online landscape released today by The Nielsen Company. This increased engagement is in part a result of a shift toward video content and social networking as popular online subcategories.
Highlights Of The Report Include
- The number of American users frequenting online video destinations has climbed 339 percent since 2003.
- Time spent on video sites has shot up almost 2,000 percent over the same period.
- In the last year alone, unique viewers of online video grew 10 percent, the number of streams grew 41 percent, the streams per user grew 27 percent and the total minutes engaged with online video grew 71 percent.
- There are 87 percent more online social media users now than in 2003, with 883 percent more time devoted to those sites.
- In the last year alone, time spent on social networking sites has surged 73 percent.
- In February, social network usage exceeded Web-based e-mail usage for the first time
- Retail, and the auto and financial services industries, have obviously made dramatic cuts to their online spending. On the other hand, the pharmaceutical industry is actually spending more on online ads today.
View PDF Report :
The Global Online Media Landscape
View more documents from Ayman Sarhan.
26.4.09
Natura eco-beauty
Vanity may be one of the seven deadly sins, but makeup is important to mankind. Primitive cultures painted themselves with plant extracts in rituals such as weddings, funerals, wars and religious festivals. So did the American Indians and African tribes. But it wasn’t until ancient Egypt that cosmetics gained prominence and the applying of colorful plant substances on human beings became synonymous with beauty.
The market for cosmetics has experienced exponential growth rates and is an important sector in many countries—particularly Brazil, where the cosmetics sector rose 8.6 percent in 2008 despite the global financial crisis.
Accordingly, Brazil rose in consumer market rankings, becoming the world's second-largest consumer of beauty products—surpassing the Japanese market, which shrank during the same period. Until 2007, Brazil lagged behind both the Japanese and American markets.
According to the Brazilian Association of the Industry of Personal Hygiene, Fragrances and Cosmetics (Abihpec), Brazilian exports in the sector were US$ 650 million against US$ 450 million in imports, reaching a surplus of US$ 200 million in 2008.
In Brazil, the industry of personal hygiene, fragrances and cosmetics is the only chemical complex—which includes cleaning products, pharmaceuticals, paints and fertilizers, among others—to produce a surplus.
www.natura.net
The cosmetics industry in Brazil is extremely competitive and involves big global players, but one Brazilian brand stands out from the rest: Natura. Born in Brazil, this cosmetics brand is now available in seven Latin American countries and France.
Founded in 1969, Natura is the industry leader in the cosmetics, fragrances and personal hygiene market in Brazil. It is also the industry leader in direct sales, surpassing even the giant American company Avon.
Natura offers a full range of products with solutions for consumers’ various needs, regardless of age, including products for the face and body, hair care and treatment products, make-up, fragrances, bath products, sun protection products, oral hygiene products and product lines for children.
Neighborhood success
In 1982, Natura started its internationalization process when it arrived in Chile. Six years later, it added the Bolivian market. It did not take long to infiltrate Argentina, Peru, Venezuela, Colombia and Mexico.
In 2002, Natura’s products were being sold in duty-free Brazilian airports. But it was in 2005 that the brand took a major leap in the international market to open a shop in Paris, the world capital of cosmetic products.
Latin America accepted the Natura brand with incredible enthusiasm. A recent annual report indicates that the company's direct sales in the region will reach a turnover in the order of US$ 500 million in 2012.
In Europe, Natura continues with the important work of building the brand in a sophisticated market, generating the experience required to implement a business model in developed markets. But the international expansion will not be limited to Latin America and Europe. Natura is currently planning expansion into the United States.
Before coming to the US, Natura sent a group of senior executives to develop a plan to penetrate the world’s largest market for cosmetics and direct sales.
What makes Natura so special?
Concerns over global warming continue to increase, especially in politics. In December 2008, during a meeting with Al Gore, then-US-president-elect Barack Obama said: “We all believe what the scientists have been telling us for years now, that this is a matter of urgency and national security, and it has to be dealt with in a serious way. That is what I intend to do in my administration."
This discussion also included the role companies play in protecting the environment.
Natura, founded in the late 1960s, is credited for having a business model that embraces sustainability and commits to using natural ingredients in its formulas. Natura’s eco-friendly, socially responsible business strategy was in place long before current advertising trends made it popular. Under the slogan "Well-Being-Well," Natura has always focused on social responsibility, the environment and economics. These long-held beliefs have become the main advantage in differentiating Natura from its competitors—demonstrating that the brand and its values were ahead of their time.
Today many opportunistic companies use sustainability as a way to promote their products, but Natura’s green marketing is more than a strategy, it is a philosophy. Natura’s concern for the environment is directly translated into its products. During the production of product mixes, Natura does not test on animals and respects all international security standards. In 1983, Natura began to produce and sell refills, whose average mass is almost 54 percent less than the mass of regular packaging. This revolutionary project resulted in a significant decrease in the disposal of solid waste in the environment. In 2007, the company put into practice the Carbon Neutral Program, designed to reduce and offset all emissions of greenhouse gases (GHG).
In 2005, Natura was cited in a UN report, “Talk the Walk,” as one of the pioneers in green marketing. The report also cited American Apparel and Stonyfield Farm—both American brands—and highlighted the work of Natura’s Ekos line for communicating brand values that foster a culture of conscious consumption.
Natura’s Ekos line features fragrances, personal care and ambience products that draw from the wealth of Brazil's biodiversity and are inspired by traditional plant ingredients—elevating awareness around Brazil’s environmental heritage and promoting quality of life in the communities that cultivate or extract those ingredients. Additionally, Natura’s Ekos products are biodegradable and use bottles and packaging that contain recycled material across the brand’s market segments, including soaps, shampoos, conditioners, moisturizers and perfumes.
Brands, according to American economist Edward Chamberlin, must differentiate products and services to survive. It is not surprising that Natura is flourishing by embracing the history and diversity of Brazil’s people and natural environment.
Franchise Brands: More than a Logo
Franchise Brands: More than a Logo
March 9, 2009
In franchising, it’s not just the corporate logo that needs to be carefully guarded, although that’s important. It’s the logo plus everything else—corporate colors, signage, buildings, trucks, uniforms, products, services, prices, promotions, ads, window posters, and even mundane stuff like pens, wrappers, and every collateral item in existence.
SUBWAY restaurants, named the #1 Global Franchise Opportunity for 2009 by Entrepreneur magazine, has more than 30,500 locations in 87 countries. Imagine what it’s like to control every aspect of the SUBWAY brand in every franchise location around the globe.
If it sounds like a major headache-inducing challenge—well, it is. “Multi-unit franchises may face a variety of difficulties along the way toward building brand consistency,” says Gary Findley, CEO of the Findley Group, in Franchising World (“Consistency: The Key to Branding," April 2007).
“Balancing brand uniformity while respecting franchisee independence and regulating brand messages while effectively targeting local communities are two of the struggles that often arise.”
Findley believes the only way to control the brand is through RQM—repetitive quality marketing.
“In RQM, repetitive is remaining persistent and consistent with the marketing message,” Findley says. “In RQM, the overall objective is to remain consistent.
Consistency in the marketing campaign will not only strengthen the brand identity, but it often leads to positive business growth.”
In the franchise world, however, marketing consistency takes on a whole new meaning. “…marketing touches everything a business does,” Findley says, “from the design on the bathroom tiles to the rips in the salesperson’s jeans, and anything a customer sees, touches, hears or smells can affect the brand image.”
For large and small franchise operations alike, educating franchisees about the value of the brand is often the first and most important step.
Taylor Bond, CEO and president of Children’s Orchard, a US-based children’s clothing resale franchise, explains it this way in Franchising World (“Communicating the Brand,” February 2005): “…we have aggressively focused on communicating the ‘picture of value.’ That means we have done everything humanly possible to help our franchise owners understand that the brand is the market share.
We explain that the brand is a mental message, a picture that consumers connect to their store.” Bond says smaller franchisors should point to the success of large global brands to get their franchisees “to understand and embrace the value of the brand.” It’s crucial, he says, to “tie the brand directly to the value of the business.”
In large, sophisticated franchise operations, the franchisor maintains control of the brand through numerous means, including franchisee training programs, comprehensive brand guidelines, and providing franchisees with consistently executed branding and marketing materials.
Providing brand guidelines is not that difficult, but enforcing them across a far-flung franchise system is another story.
“While many franchise systems provide their franchisees with guidelines about logo usage, signage and advertising, many fail to fully enforce those guidelines,” says Nikki Sells, vice president of franchising for Express Personnel Services, in Franchising World (“Consistent Brand Identification Increases Market Share,” December 2006). “This is why a customer can go from one unit to the next and have a completely different experience with the brand.
Enforcing clear guidelines will not only help franchises stay true to the brand when marketing, it will also improve customers’ experiences.” Sells says it may take site visits, customer surveys and focus groups with field reps to determine adherence to brand standards.
That’s why superior global franchisors such as SUBWAY and McDonald’s make franchisees part of the solution. McDonald’s requires its restaurants to spend a minimum of 4 percent of gross sales annually for promoting and advertising the business. Owner/operators work with local agencies to place advertisements and, in some cases, produce their own creative material, as long as it follows system guidelines.
McDonald’s also encourages its operators to offer feedback and ideas that could benefit the entire system; the Big Mac, Egg McMuffin and Filet-o-Fish sandwiches were all developed by owner/operators.
International branding is particularly difficult. Language and cultural issues present unique challenges for franchises. For food franchise systems, local cuisine preferences may require entire menus to vary. McDonald’s, for example, operates in India but does not serve beef there.
Instead, the Indian system offers a choice of vegetarian and non-vegetarian menus; the non-vegetarian menu is comprised of chicken and fish. Product names retain the McDonald’s branding concept but are country-specific: McVeggie, McAloo Tikki, Shahi Paneer McCurry Pan and Veg Pizza McPuff.
Challenges not withstanding, globalization is a means of rapid brand expansion. US-based Yum! Brands, owner of KFC, Pizza Hut and Taco Bell restaurants, has enjoyed widespread acceptance for its franchise brands around the world. The KFC business in France has the highest unit volumes of any KFC in the world. For the last four years, Pizza Hut has been ranked as the #1 most trusted food-service brand in India in a consumer survey in The Economic Times.
Mainland China is Yum! Brands’ top market for new company restaurant development worldwide. The company opened 471 new restaurants last year in mainland China. KFC, with more than 2,300 restaurants in China, is the leading quick-service restaurant brand, while Pizza Hut, with 400 locations, is the leading casual dining brand in mainland China. Yum! Brands says it opens a new KFC every day in mainland China. In 2007, operating profits for Yum! Brands’ China Division were more than US$ 375 million.
When a franchise system decides to change its brand, the implications are mind-boggling. In 2001, global shipping giant UPS acquired Mail Boxes Etc., a private postal center service. In 2003, “The UPS Store” brand was introduced. Tests in select US markets pitting The UPS Store against Mail Boxes Etc. showed a strong preference for The UPS Store. That meant thousands of US-based Mail Boxes Etc. stores had to be rebranded. Stores in Canada were rebranded in 2005. Stores outside North America, however, maintain the Mail Boxes Etc. brand. UPS currently operates over 6,000 stores worldwide.
Despite the arduous requirements of global branding, the business opportunity associated with a strong international franchise is unparalleled. Controlling their brands across thousands of locations is a key reason leading franchise systems succeed—and why their brands are among the most recognized in the world.
March 9, 2009
In franchising, it’s not just the corporate logo that needs to be carefully guarded, although that’s important. It’s the logo plus everything else—corporate colors, signage, buildings, trucks, uniforms, products, services, prices, promotions, ads, window posters, and even mundane stuff like pens, wrappers, and every collateral item in existence.
SUBWAY restaurants, named the #1 Global Franchise Opportunity for 2009 by Entrepreneur magazine, has more than 30,500 locations in 87 countries. Imagine what it’s like to control every aspect of the SUBWAY brand in every franchise location around the globe.
If it sounds like a major headache-inducing challenge—well, it is. “Multi-unit franchises may face a variety of difficulties along the way toward building brand consistency,” says Gary Findley, CEO of the Findley Group, in Franchising World (“Consistency: The Key to Branding," April 2007).
“Balancing brand uniformity while respecting franchisee independence and regulating brand messages while effectively targeting local communities are two of the struggles that often arise.”
Findley believes the only way to control the brand is through RQM—repetitive quality marketing.
“In RQM, repetitive is remaining persistent and consistent with the marketing message,” Findley says. “In RQM, the overall objective is to remain consistent.
Consistency in the marketing campaign will not only strengthen the brand identity, but it often leads to positive business growth.”
In the franchise world, however, marketing consistency takes on a whole new meaning. “…marketing touches everything a business does,” Findley says, “from the design on the bathroom tiles to the rips in the salesperson’s jeans, and anything a customer sees, touches, hears or smells can affect the brand image.”
For large and small franchise operations alike, educating franchisees about the value of the brand is often the first and most important step. Taylor Bond, CEO and president of Children’s Orchard, a US-based children’s clothing resale franchise, explains it this way in Franchising World (“Communicating the Brand,” February 2005): “…we have aggressively focused on communicating the ‘picture of value.’ That means we have done everything humanly possible to help our franchise owners understand that the brand is the market share.
We explain that the brand is a mental message, a picture that consumers connect to their store.” Bond says smaller franchisors should point to the success of large global brands to get their franchisees “to understand and embrace the value of the brand.” It’s crucial, he says, to “tie the brand directly to the value of the business.”
In large, sophisticated franchise operations, the franchisor maintains control of the brand through numerous means, including franchisee training programs, comprehensive brand guidelines, and providing franchisees with consistently executed branding and marketing materials.
Providing brand guidelines is not that difficult, but enforcing them across a far-flung franchise system is another story.
“While many franchise systems provide their franchisees with guidelines about logo usage, signage and advertising, many fail to fully enforce those guidelines,” says Nikki Sells, vice president of franchising for Express Personnel Services, in Franchising World (“Consistent Brand Identification Increases Market Share,” December 2006). “This is why a customer can go from one unit to the next and have a completely different experience with the brand.
Enforcing clear guidelines will not only help franchises stay true to the brand when marketing, it will also improve customers’ experiences.” Sells says it may take site visits, customer surveys and focus groups with field reps to determine adherence to brand standards.
That’s why superior global franchisors such as SUBWAY and McDonald’s make franchisees part of the solution. McDonald’s requires its restaurants to spend a minimum of 4 percent of gross sales annually for promoting and advertising the business. Owner/operators work with local agencies to place advertisements and, in some cases, produce their own creative material, as long as it follows system guidelines.
McDonald’s also encourages its operators to offer feedback and ideas that could benefit the entire system; the Big Mac, Egg McMuffin and Filet-o-Fish sandwiches were all developed by owner/operators.
International branding is particularly difficult. Language and cultural issues present unique challenges for franchises. For food franchise systems, local cuisine preferences may require entire menus to vary. McDonald’s, for example, operates in India but does not serve beef there. Instead, the Indian system offers a choice of vegetarian and non-vegetarian menus; the non-vegetarian menu is comprised of chicken and fish. Product names retain the McDonald’s branding concept but are country-specific: McVeggie, McAloo Tikki, Shahi Paneer McCurry Pan and Veg Pizza McPuff.
Challenges not withstanding, globalization is a means of rapid brand expansion. US-based Yum! Brands, owner of KFC, Pizza Hut and Taco Bell restaurants, has enjoyed widespread acceptance for its franchise brands around the world. The KFC business in France has the highest unit volumes of any KFC in the world. For the last four years, Pizza Hut has been ranked as the #1 most trusted food-service brand in India in a consumer survey in The Economic Times.
Mainland China is Yum! Brands’ top market for new company restaurant development worldwide. The company opened 471 new restaurants last year in mainland China. KFC, with more than 2,300 restaurants in China, is the leading quick-service restaurant brand, while Pizza Hut, with 400 locations, is the leading casual dining brand in mainland China. Yum! Brands says it opens a new KFC every day in mainland China. In 2007, operating profits for Yum! Brands’ China Division were more than US$ 375 million.
When a franchise system decides to change its brand, the implications are mind-boggling. In 2001, global shipping giant UPS acquired Mail Boxes Etc., a private postal center service. In 2003, “The UPS Store” brand was introduced. Tests in select US markets pitting The UPS Store against Mail Boxes Etc. showed a strong preference for The UPS Store. That meant thousands of US-based Mail Boxes Etc. stores had to be rebranded. Stores in Canada were rebranded in 2005. Stores outside North America, however, maintain the Mail Boxes Etc. brand. UPS currently operates over 6,000 stores worldwide.
Despite the arduous requirements of global branding, the business opportunity associated with a strong international franchise is unparalleled. Controlling their brands across thousands of locations is a key reason leading franchise systems succeed—and why their brands are among the most recognized in the world.
Zoo Safari::: Take a peek
BRAND OWNER :Zoo Safari
CATEGORY:Sport/Leisure
REGION:Brazil
DATE:Feb 2009 - Dec 2008
The Zoo Safari in Sao Paulo is a safari park where visitors can drive their vehicle through forests as the animals roam around freely. The idea is that this way visitors are in cages rather than animals.
In order to communicate this different type of animal park, Zoo Safari created electrostatic stickers featuring pictures of animals including Zebra, ostriches and monkeys. These were placed on the windscreens of parked cars, facing inwards to car interior. Anyone getting into their car would get a glimpse of what it might be to have an animal peering into their vehicle. The proportions of the sticker gave the impression that an actual life sized creature was investigating the car passengers. The message on the sticker read: “Up-close, no cages, more fun”.
CATEGORY:Sport/Leisure
REGION:Brazil
DATE:Feb 2009 - Dec 2008
The Zoo Safari in Sao Paulo is a safari park where visitors can drive their vehicle through forests as the animals roam around freely. The idea is that this way visitors are in cages rather than animals.
In order to communicate this different type of animal park, Zoo Safari created electrostatic stickers featuring pictures of animals including Zebra, ostriches and monkeys. These were placed on the windscreens of parked cars, facing inwards to car interior. Anyone getting into their car would get a glimpse of what it might be to have an animal peering into their vehicle. The proportions of the sticker gave the impression that an actual life sized creature was investigating the car passengers. The message on the sticker read: “Up-close, no cages, more fun”.
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