Relevance and Customization - Product and Franchise Business

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There is always a question that lingers in the mind of prospective franchisees, on the relevance of the product in the target region/location and possibility of product customisation. Although it is an important thought for business it is also disruptive one. This article helps you in understanding the need for customisation and need for not changing too much.
Also find out how IIHT Technologies encourages its partners to bring forward ideas and how those ideas are further tested by the research team for the pros and cons of the same.

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Relevance and Customization - Product and Franchise Business

  1. 1. Franchisor is keener on running a business that is profitable for both franchisee and the business Franchisees compare the product to similar franchise chain and expect the product to be similar Hence a certain degree of adaptability and changes are adopted by many franchisors. However franchisor will avoid duplicating a service of a competitor.
  2. 2. Customising product and or services could help in reaching much broader range of customers. A slight change and customisation to the product, service or store design might create better brand and add to franchisee’s success. However, customisation should not compromise on standards, quality or brand identity itself.
  3. 3. Many a times customers suggest changes on various factors of product and service, however not all can be entertained. Nor a suggestion from a few customers can be implemented. When such suggestions start to pour in, franchisee has work with the franchisor to research and analyse the needs, costs and impact on returns. A few changes may be adopted if they boost sales. Customer Choice:
  4. 4. For ex: McDonalds cannot serve Indian bread instead of the usual on its burger. It is essential that the new element introduced is not a distraction to the core brand as this may create confusion and franchise may fail. It is important that at large, customer will be taken by surprise, which they were not expecting and may not be willing to step out of their zone; in order to try something new over something they always came in for! No Compromis e on the Core Identity:
  5. 5. Innovative changes could be something quite out of the box offer that attracts customers from that particular region, appealing in the local market. For ex. IIHT (Indian Institute of Hardware and Technology) providing basic instruction in Swahili for administration courses in Kenya. Yet the core product is not changed nor is the brand identity. Innovative:
  6. 6. Franchisee has to share ideas with franchisor before undertaking any changes or deviation. Franchisors have a clear bird’s eye view of entire chain and will evaluate the reaction of consumer, chain wide. Obtaining franchisor’s approval prior to implementation is crucial as this would be a part of agreement, moreover franchisor will be able to analyse if there is risk of moving towards brand confusion, which could hamper business of the franchisee. Shared Ideas:
  7. 7. IIHT is spread across 22 countries and realises the need for customisation to suffice the consumer needs in respective locales. Most of the basic courses are customised to the need of the locale. Many a times the layout design too is allowed a minor change that essentially gives the students a comfortable feeling and familiar learning environment. However there is no compromise in the quality of deliverance across centres.
  8. 8. IIHT Technologies encourages its partners to bring forward ideas, however further research is undertaken to test the idea and it’s pros and cons over the particular franchise, franchisor, and other franchises. 1. It focuses on ideas that result in brand enhancement rather than confusion. 2. It is essential that any customisation of a product in franchise business has to be well researched for its applicability, success and impact on the brand. An established franchise itself offers instant brand awareness. 3. Customisation should occur only if business could appeal to more customers. 4. Customisation has to be a collaborated initiative and has to ensure brand enhancement.
  9. 9. Corporate Headquarters #15,Sri Lakshmi Complex, 4th Floor, St. Marks Road, Bangalore - 560 001. India Tel: 91 80 6160 4545 e-mail: franchise@iihttechnologies.com web: www.iihttechnologies.com/

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