Below is an excerpt from one of our internal company newsletters:
Why Do Franchisors Fail?
Overview: With franchises like Bennigan’s and Mrs. Fields pleading bankruptcy, you’ve got to ask yourself: Why do franchisors fail?
This article identifies three broad reasons that lead to franchise failure: concept, capital and management. A good concept is key to get off the ground but no concept is beyond the risk of failure. Sufficient capital is necessary for obvious reasons (and directly linked to concept and management). Ultimately, great management will make concept adaptations quickly and find capital solutions - no matter how good the concept or well capitalized the company, bad management will destroy a business.
Balihoo Perspective: While all valid, I find ‘management’ to be the most pressing. Balihoo works directly a variety of management/corporate teams to ensure that their vision and decisions are reflected and fulfilled in their affiliates’ marketing and advertising efforts. A solid franchise management team will supply their franchisees with a cross-medium marketing and advertising solution that allows them to quickly and easily access, customize and execute local store marketing.
Garner: Mobile Advertising to Grow 74% in 2009
Overview: Mobile ad spending is now predicted to grow 74% over the course of the next year – which is nothing when you compare it to the growth predicted in 2011. As smartphones and flat-rate data plans become more affordable for mainstream users [currently predicted to occur by 2011] advertisers will have the ability to reach out to a large range of audiences. The growth in mobile advertising revenues is currently primarily driven by mobile Web banner ads, but it also has a strong growth component from mobile search, downloadable applications and SMS advertising.
Balihoo Perspective: With mobile users increasingly using their mobile devises to navigate locally and the advancement of mobile GPS technology the precise targeting (by time, location and age of mobile user) capabilities could really be astounding. Time will only tell how large of an impact this predicted increase in mobile advertising will have on local businesses advertising efforts.
Fast-Food Franchisees Ask Chains to Tone Down Racy Ads
Overview: Fast-food chains like Burger King and Hardee’s have made names for themselves by being provocative. But with slumping sales, many franchisees are pushing back on racy ads.
Recently, Hardee’s encountered some controversy when they launched a campaign in which “a marketing research” person asks people to name a new product (fried dough balls with white icing). In the first couple of ads, the names suggested were “goody balls”, “sugar nuts”, “sweet balls”, etc. – which went over alright. The next wave of the campaign featured a taste testing in which the researcher asked people which product they preferred - “A-Hole” or “B-Hole”. Many franchisees resisted this campaign and ultimately Hardees pulled the campaign.
Balihoo Perspective: At Balihoo, we aren’t unfamiliar with disgruntlements regarding creative selection between franchisors and franchisees. Most large franchises are going to experience some differences in opinion surrounding brand image and creative selection. While ultimately a franchise’s advertising is in the hands of the corporate powers that be, obviously franchisees need to voice their opinions when they strongly disagree on how their brand is being portrayed. Balihoo’s solution allows both franchisors and franchisees to ensure that they are utilizing the same creative concept(s) – thereby keeping their brand consistent and uniform. Trivia: (From 7th grade math book) This 3 digit number has 3 different digits. The product of the digits is 0, when the number is divided by 5 the result is a prime number and the sum of the individual digits is 14. What is this 3 digit number?The first person to supply me with the correct answer to this riddle will receive a $10.00 gift certificate to Alia’s Coffeehouse (908 W. Main St.).
The Future of Quickservice
Overview: 20 QSR (quick service restaurant) experts are asked ‘What will quick-service look like in 2030?” Their responses: edible menus, in-store entertainment centers, uniforms that sell side items [via smell] so the employees wearing them don’t have to…and that’s just the beginning.
Balihoo Perspective: Fun article that discusses scented (fries, apple pie, etc.) QSR uniforms, vehicle navigation systems that will understand phrases like “I’m hungry” - delivering you to the closest (and perhaps highest bidding) QSR location, videogames available while you wait in line (since QSR lines are oh-so long…), edible menus and the list goes on. An entertaining and humorous article - and who knows someday you might look back and think “Remember when I thought that it would be weird to have an edible menu, now I can’t imagine not having one…” (Yikes.)
The Collective Consumer Impression of Online Ads
Overview: Today, consumers are exercising their power to roll, expand, click and buy more aggressively than ever. This article pinpoints three ways that marketers can tap that collective power. 1). Make your ads available to those who want to find them 2.) Boost your chances of being viewed positively 3.) Give customers power over their ad experience.
Balihoo Perspective: It is incredibly important for local businesses to ensure that they have an easy-to-access and utilize online page that is dedicated to their brand/product. It is important to ensure that past and potential customers can quickly and easily access coupons, information and reviews. Numerous studies show that a user experience(s) influences the way he or she views the brand or product advertised on search engines and portals – it is therefore important to make sure that users can control how and when they interact with your ad (mouse to expand, click to play video, click to adjust volume, and so on).
Down Economy Can Help Franchise Sales
Overview: With the economy down, more and more people are considering franchising. Many franchisors are trying to capitalize on the opportunity – pushing their franchise model and
brand harder. With over 854,000 franchised businesses in the United States there is a lot of competition out there.
Balihoo Perspective: Offering a local marketing solution that provides franchisees with easy access to customizable brand-approved templates across all mediums is a huge selling point. Providing franchisors with complete visibility into marketing activities at the local, regional or national level allows both franchisor and franchisee to ensure that their brand is being promoted in the most effective, efficient and consistent manner possible.
What Is and Isn’t Spam on Twitter?
Overview: What classifies something as ‘spam’ on Twitter? Website builder Moonfruit recently ran a contest that brought this question into the limelight. Moonfruit gave away one MacBook Pro a day over 10 days to someone who had sent a message on Twitter using the hash mark and keyword, #moonfruit. The contest was so popular that Moonfruit became a Twitter trending topic, meaning it was one of the top keywords being used in Twitter messages. When #moonfruit disappeared from trending topics, Moonfruit marketing director Wendy Tan questioned whether Twitter considered its campaign spam and asked what exactly constitutes Twitter spam. Decision: Any tweet that is highly irrelevant and useless to the user it is being sent to is ‘spam’ – this includes both text within the tweet and any webpages it links to.
Balihoo Perspective: Many of the affiliates and franchisees we work with are now using Twitter and are having a great time getting to know their local customers on a new level – (*Pssst, just remember to listen and respond to your followers). To ensure you aren’t tweeting spam avoid repetition, avoid overexposure (keep a balance between the tweets that promote your brand or business and those that do not) and above all else, understand and respect why your customers and prospects currently follow you on Twitter.
Outsell: Newspapers Too Slow to Make Digital Transformation
Overview: Despite the fact that the newspaper industry has been slammed by the recession, papers have failed to move as fast as other media categories in the transition from print to digital revenue. With that said, experts predict that the industry will improve after next year. By 2014 - newspaper income is predicted to increase 8.7% (over the 2009 figures). Though this rebound will be gradual and still short of its 2008 level, it will be enough to increase newspapers’ overall share of total ad revenue 1.5 points, from 14.4% to 15.9%.
Balihoo Perspective: While slow to jump on the digital bandwagon, at least there is reason to believe that the newspaper industry will begin to regain lost footage in the future. Many of our affiliates swear by newspaper advertising – placing online ads on newspapers websites will be an increasingly valuable part of one’s media mix.
Advertising and Local Search
Overview: Explains how a local business should go about forming a local search plan. While many local businesses advertise almost exclusively in their local area – how large one’s “local area” is largely depends on the business and its location (urban vs. rural). For example, people are usually willing to travel farther to:· Go to an IMAX film than a movie at a regular theater.· Buy a gourmet meal than fast food.· Buy a custom-made suit than for an off-the-rack sports coat.· Buy a wedding ring than a nose ring.· See a medical specialist than a general practitioner.
Balihoo Perspective: To determine your local search plan, evaluate what kind of service or product you are marketing? Where are the customers you want to attract most likely to be searching for your product? The key to local advertising is to find out where and how the people within range of your business are searching for your product – and then getting your advertising in front of them.
The Building Blocks of Social Media For Business
Overview: Chris Brogan addresses the question – “How should a business begin using social media?” His suggestions include listening more, building a friendly base, visit sites/blogs that
your customers visit, email marketing and active participation.
Balihoo Perspective: Useful for any business that is considering taking a shot at social networking. Brogan’s emphasis on listening is spot on – you have got to listen and contribute to conversations before you can successfully begin them. I’d add that incorporating your store’s team members and getting different voices involved with your social networking effort can help to not only broaden your reach but also instill a feeling of community around your business or product.
What Ad Strategy Works for You?
Overview: This day and age, most local businesses are (or know that they should be) utilizing integrated marketing mixes. Using multiple media forms though can make it difficult to determine exactly what’s working and what isn’t. This article provides a quick guide intended to help you determine a fitting advertising strategy.
To sum up the guide. Print – great for targeting a niche market. Broadcast – extensive reach but true ROI measurement is difficult. Directory (Yellow Pages) – while 96% of U.S. households have at least one Yellow Pages, is difficult to be noticed in the sea of other listings (unless you employ interactive features like video profiles, premium inventory listings, websites and search engine optimization). Internet (Banner, Email, Search Engine Marketing (SEM)) - unlike print and broadcast, Internet advertising is easy to measure thanks to tools that track site traffic and click-through rating and it is often cheaper than traditional media because many online publishers base fees upon performance (not traditional CPM-based metrics).
Balihoo Perspective: Whether you ultimately decide to dedicate your advertising dollars to print, broadcast directory or online advertising it pays to do the math and consider all of your options before investing your company’s hard-earned dollars. A little planning now will ensure that you’ll know which half of your advertising budget is working–and which half you’d be better off employing elsewhere. Balihoo’s media planning team is ready and willing to help businesses across the board determine the best possible annual plan for their local audience.