How Small Franchisors BUILD BIG BRANDS

Taylor BondPresident and CEO

Branding a small franchise system

Can you afford it?

Can you afford not

to?

Short term vs long term objectives

Selling franchises

Building prosperous retailers and

valuable businesses

vs

Get franchisee buy-in

• Branding plans fail if the franchisees don’t buy in

• You need them living and breathing the brand on a local level

Educate franchisees about brand value

• Prove the value of the brand to the franchisee

• Tie the brand directly to the value of their business now and in the future

Brand = market share

• The mental image consumers connect with the store

• Illustrate with examples of successful brands

Brand = premium value

• They get it, they bought the franchise

• All stores and products are not the same

Brand integrity requires compliance

• Standards• Processes and

procedures• Quality products• Great customer

service• Community outreach

“The fastest way to brand

oblivion is to fail to enforce

system standards”

Building brand credibility• Good public relations

creates legitimacy and positive impact• a low-cost alternative

to paid media• Advertising supports

the image

Brand success requires focus

• One position• One objective• One message• Consistently delivered

“Don’t try to be everything to

everyone”

An ongoing commitment

• An executive level responsibility

• Requires funding brand development

• Ad funds demonstrate commitment to brand

“Building the brand is an every day objective”

Building the Children’s Orchard Brand

Janet MuhlemanPresident

Objective…

• Create an integrated marketing communications program for Children’s Orchard to drive traffic and increase store sales by 10%!• Increase average ticket• Increase frequency • Generate trial

Strategies…

• Develop a single, overriding brand position for all marketing communications

• Build consistency of message• Change the perception of resale • Create big enough news for people to get ‘out of their

chairs’ to visit• Make it easy for the franchisees by centrally coordinating

promotions

Defining the brand…

• Worked together in a collaborative approach…• Marketing and Operations• Competitive brand review• Franchisee interviews• Comprehensive consumer research

Identified marketing opportunities

Where we were

An established, reputable children’s resale franchise with sound operations, quality merchandise and excellent service

Where we wanted to be

Leader of a redefined Upscale Resale category and the first choice for children’s merchandise

Identified Marketing Opportunities

Where we were

There is a stigma attached to resale that is dispelled once the customer experiences a Children’s Orchard store

Where we wanted to be

Define Upscale Resale as a cool, smart alternative to traditional retail or resale and position Children’s Orchard as first in the category

Identified Marketing Opportunities

Where we were

Capture a good % of current customer spending on children’s merchandise

Where we want to be

Increase frequency of visits and average ticket to capture greater share of all customer spending

Identified Marketing Opportunities

Where we were

Stale marketing materialsFranchisees were on their own for implementation

Where we wanted to be

A clear concise brandFresh, impactful, branded communications that emotionally engage the consumer at every point of contactTurn-key programs that facilitate franchisee participation

Defining the Brand Platform…

• Brand Statement• Essence• Tagline• Campaign Theme• Marketing Plan

Brand Essence

• A few succinct words that communicate in shorthand, what is at the very soul of Children’s Orchard.

• They capture the customer benefit and define the Children’s Orchard experience.

Brand Essence

DISCOVERED TREASURE

Brand Tagline

#5

Campaign Theme …

REASONS TO SHOP AT CHILDREN’S ORCHARD

Building An Effective Marketing Plan

• Established clear objectives, strategies• Revised the current marketing structure • Developed a turnkey advertising program• Leveraged the power of the system - made it

more cost efficient• Developed a single, focused voice and louder

message

Building An Effective Media Plan

• Reviewed franchisees annual advertising budgets and individual markets and trading areas

• Considered what media options best accomplish the established communications goals

• Compared media pricing against the objectives• Found efficiencies of collective purchasing

• Leveraged multiple store markets when possible• Partnering can extend reach and frequency of

message and make media vehicles affordable.

Building An Effective Media Plan

Marketing Calendar

Awareness vs PromotionalAwareness campaign

Promotional campaign

3 10 17 24 31 7 14 21 28 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 5 12 19 26

1 17 14 21 17 27 1 30 19 4 5 10 31 11 24 25

1st QUARTER 2nd QUARTER 3rd QUARTER 4th QUARTER

JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

3 10 17 24 31 7 14 21 28 7 14 21 28 4 11 18 25 2 9 16 23 30 6 13 20 27 4 11 18 25 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 5 12 19 26

1 17 14 21 17 27 1 30 19 4 5 10 31 11 24 25

SEPTEMBER OCTOBER NOVEMBER DECEMBERMAY JUNE JULY AUGUSTJANUARY FEBRUARY MARCH APRIL

1st QUARTER 2nd QUARTER 3rd QUARTER 4th QUARTER

Marketing Calendar

• Major vs Minor promotions• Major promotions

• Happen a few times per year as budget allows• Promoted outside of the store• Multiple components

• Minor promotions• In-store promotion fills the gaps

Big Brand Event, 2005 - Insert

Additional Local Store Marketing Materials

• Danglers / Window Clings

• Counter cards• Bag Stuffers• Local Newspaper

Ads

Results

• Strong franchisee support• Big Brand Event sales up significantly over year prior

QUESTIONS?