How are franchise marketing strategies playing out this holiday season? Fox Business News recently interviewed Stephen Caldeira, the CEO of the International Franchise Association, on what kinds of deals were being offered for Black Friday. You can click here to watch it.
During the interview, he specifically mentioned how franchise brands were using Facebook, Twitter, and websites to deliver coupons and promotions for local level redemption. He also mentions how franchisors are working closely with franchisees to utilize promotions that drive holiday store traffic and sales.
Franchisors understand the value of ensuring corporate marketing programs are used properly, and are successful, because they have to. Their brand is the company. When franchise units fail, so does their distribution, and which ultimately affects the entire business. They realize that each unit understands the local market best, has a customer base and are in the best position to promote the brand and the relevant products/services for each respective local market. They get it. And non-franchise brands would do well by following their lead.
Companies who don’t control their distribution channels have an even bigger imperative, and challenge, to promote their value proposition directly through the local businesses that represent their products and services. While they may not be negatively affected in the same way as a franchise when a local unit ceases operations, the positive potential is much higher. When a brand develops a supportive channel environment, designs effective trade promotions, and creates ties with local businesses, local businesses can reciprocate, invest in the brand, and work harder to help it succeed.
If you can't capitalize on channel support to boost your bottom line for the 2011 holiday, take a good look at your 2012 marketing budget and evaluate what roles trade promotions and local marketing support play in it. It may be time well, and profitably, spent.
About the Author
Jared is the Chief Executive Officer of SproutLoud. Since 2006, he has been primarily responsible for strategic direction of the Company, as well as the oversight of SproutLoud's Partner ecosystem. Prior to SproutLoud, Jared worked in Thomas Weisel Partner’s internet and online advertising investment banking practice in San Francisco. He served as the lead analyst on a number of Corporate Finance and M&A deals including Newscorps’ buyout of Intermix Media (Myspace.com). Jared graduated with a B.A. in Finance and Marketing from the McIntire School of Commerce at the University of Virginia. Jared has an MBA from the Kellogg School of Management at Northwestern University and is a member of the Young President's Organization (YPO). Jared has been honored as one of the Top 40 Under 40 Entrepreneurs by South Florida Business Journal and a Top 50 Entrepreneur by Business Leader Magazine. Jared lives in South Florida with his wife and two sons.More Content by Jared Shusterman