Download Marketing Strategies for New Brands

Marketing Strategies for New
Brands
Patrick Sanders
Max Muscle
Helping Our Franchisees
Succeed
• Best way – franchisee profitability!
• Problem – nearly dominate penetration
of the core body building market.
Helping Our Franchisees
Succeed
• Issue - same store sales percentage of
revenue growth slowing.
• Obstacle - marketing expense related to
deeper penetration of existing market
becomes uneconomical cost/benefit
tradeoff.
Helping Our Franchisees
Succeed
• Solution – open new markets
• Issue – market identification
• Targets:
1. Females – 80% of family purchasing
power.
2. Endurance – runners (25 million in US,
largest market – Runners World),
swimmers,biking, triathletes, weekend
warriors.
Helping Our Franchisees
Succeed
• Problem – product positioning and
company image does not lend itself to
these new markets
• Solution – reimage the brand
Helping Our Franchisees
Succeed
• How?
• Logo – what is a Max Muscle?
• Listen to Arnold!
Helping Our Franchisees
Succeed
Helping Our Franchisees
Succeed
Store Format
Helping Our Franchisees
Succeed
Helping Our Franchisees
Succeed
• Need to standardize the image and
national brand.
• Hire national marketing and advertising
firm that is entirely female owned.
• Hot Dish Advertising
• Development of a national brand
campaign for 2005.
Helping Our Franchisees
Succeed
• All advertising and marketing collateral
for product to follow this concept and
theme of this campaign.
• All advertising and marketing collateral
for franchisees at store level advertising
the store follows the campaign concept
and theme.
Helping Our Franchisees
Succeed
• Result – customer traffic into the stores
has increased.
• Result – number of female shoppers
has increased.
• Result – daily revenue has increased.
• Result – profits are up, franchisees are
happier!!! Success!!!
Creating a Solid Infrastructure
Patrick Sanders
Max Muscle
Creating a Solid Infrastructure
9 The strength of any franchise system lies in
it’s Unit Economics.
9 At Max Muscle this is the driving force behind
all decision making processes.
9 How will this increase franchisee revenue,
decrease costs and increase profits.
Creating a Solid Infrastructure
• To help franchisees be successful we
have broken our support infrastructure
into several groups:
• Store Development Team
• Media Support Team
• Franchisee Education Team
• Business Support Team
Creating a Solid Infrastructure
Store Development Team – Part 1
• Turnkey solution for franchisee – they
have never done it before!
• Project Manager for Store Development
• Construction Manager – fabrication
partner
• 1st Manager – web based tool for project
management
Creating a Solid Infrastructure
Store Development Team – Part 2
• Real estate and site location provided
by Max Muscle.
• Pre-opening support: on site field
representative from corporate for 2 days
pre and 3 days post soft opening.
Creating a Solid Infrastructure
Media Support Team – Part 1
• Grand opening template
• Franchisee Marketing Plan (FMP)
• Franchisee Intranet – all marketing and
advertising materials created for them
• Sales, Marketing and Advertising
Account (SMA)
Creating a Solid Infrastructure
Media Support Team – Part 2
• Same store sales were hitting a plateau,
why?
• Reaching the limit of franchisee ability
considering their background.
• We need to do it for them – the
Marketing and Media Support Team.
Creating a Solid Infrastructure
•
•
•
•
Franchisee Education Team
Franchisee Association and the BoD –
everyone has a voice.
Weekly conference call
Weekly email communication
Franchisee Education Team – works
with both franchisee and employees
Creating a Solid Infrastructure
•
•
•
•
Business Support Team
Franchisee needs to work ON the
business, not IN the business
In store computer systems report
financial results
Franchisee Business Plan
Business coach compares actual to
goals with franchisee monthly