By Larry Myer 

Competition in the marketplace is increasing. New and re-energized brands are entering the world everyday.  A franchise system needs to be aware of the current issues and trends to keep growing its concept cost-effectively. In a world of copycats, it pays to be the original. Innovative franchise companies often become the market leaders while competitors keep doing things the same old way, until change is forced upon them.

It’s understood that change can be frightening, but change can also be a powerful force in franchising. In many cases, just the willingness to recognize the need for change means the difference between failure and reaching full potential.

Here are some things to think about when deciding if a change is necessary: Does the franchise system see evidence of market share decline? Is there evidence the image does not promote or aid product sales? Does the franchise organization have evidence of declining franchise sales? If the answer was “yes” to one or more of these questions, then consider a change.

If a company is already contemplating re-imaging, is it asking these questions: What would indicate that the re-image was a success? How does one go about evaluating the company? Why do customers pick one store over another?

You’re as big as you think you are

No matter what league you’re in, the rules of the game and strategies to win remain the same. The best franchises, big or small, have three common traits. They have the passion, a vision and a desire to connect with their customers.

As a franchise company, ask, how does one create a store environment and overall brand image that will connect with customers, create brand loyalty and achieve the fundamental goal of increasing sales?

Up until a few years ago when I would speak with our customers about planning a successful store image and design, there were certain key elements discussed. Even with the impact of online shopping, these elements have not changed, but the requirements however have simply become tougher.

Evaluating the need to improve the brand’s image

There are several simple ways to evaluate if brand image improvement is the goal. One is schedule an on-site analysis. Visit a couple of the company’s stores during business hours to evaluate the fundamentals of the existing store design, space plan, visual merchandising, lighting, signage-graphics, identity and colors. In addition, observe how customers shop the store.  See what draws them in and what doesn’t, what engages, and what impedes their shopping experience. Learn where customers are getting too much information and where they are not getting enough.

Also, talk with the store staff. This allows one to get a sense of how staff interacts with customers. Find out how the store design could make their job easier allowing them to focus more on the customer.

The goal in this first phase is simple. The store should be customers “favorite place to shop.” Do whatever it takes to make that happen. Just taking that step to consider putting an effective new spin on your business is a big deal. Keep in mind the ultimate goal is to find the needs and desires of customers and prospects. Once these are found, then the process of re-energizing the store has begun.

Deciding to re-energize the brand can be difficult. It could mean major changes for the company and getting everyone onboard is never easy. Just think about how hard it is to get everyone to agree on a place for lunch.  Keep in mind that a re-energized brand has greater potential to be competitive in today’s marketplace than an out-of-date one.

Jack Hollis, president and CEO of Computer Renaissance, knows the re-imaging process first-hand since his company has been re-energizing its Computer Franchise Stores since 2003.

“One of our biggest obstacles in our re-imaging process has been getting our franchise owners onboard,” said Hollis. “The owners like the current look of the stores, but our research shows that the consumer would like a more inviting, friendly environment.”

Keep in mind that change doesn’t have to happen overnight, take the example of Computer Renaissance, their franchise owners do not have to re-design their stores until the time of their contract renewal. This gives the franchise owner time to plan and budget for the future re-design.

Next step, where to begin?

Deciding where and how to begin can be an even bigger challenge. With so many possible starting points and areas for change, it is easy for eager companies to jump into re-energizing activities without planning, and doing so could prove more harmful than helpful.

Every successful project begins with a plan. Brand re-energizing is no different. A solid place to start the process is to choose a team. When deciding on members, it is important to think about each person’s strengths and skills. Author Jim Collins, who wrote “Good to Great: Why Some Companies Make the Leap…And Others Don’t” writes, “It’s critical for a company to not only have the right people on the bus but to make sure those people are sitting in the right seats.”

Setting goals

With the team properly situated, it’s time to fasten the seat belts and begin the ride. First stop: Goal setting. The overall goal of the process is simple: to make store customers’ favorite place to shop. As a retail consultant, I am constantly trying to find ways to deliver my products and services that will appeal to my customers. It can be a tough thing to do, but thinking in terms of what these customers want helps make the job easier.

It important to establish a budget while in the planning stage. This whole process can be expensive, and these costs can get out of hand if they aren’t kept in line. Don’t let the costs scare team members. Brand re-energizing can be feasible for all budgets, big and small, with a little creativity and a lot of planning. Even something as simple as lighting scented candles or playing background music can make a customer’s shopping experience more enjoyable.

Timelines must also be considered when planning. Experience tells us that the design and approval process can take a few days to several months. Assign deadlines. This is when people put all excuses aside and get to business. Be sure to provide enough time for each step to be properly completed.

Decision-making plans must be mapped out for each phase of the process as well. Decisions are best made when they are prioritized and assigned to people in advance. This helps to prevent roadblocks when the time comes to implement the decision. Some things to consider when designing a decision-making plan are: who is going to be involved in the decision, when is the decision going to be made, what are the criteria of each decision, what information is needed and what is the evidence or impact you are looking to solve.

No one said brand re-energizing was going to be easy, but it doesn’t have to be scary either. Just remember: successful projects start with a plan. Choose a team, set goals, create a budget, determine timelines and develop a decision-making process. With these in place, the franchise system will be well on its way.

Brand re-energizing is not for the faint of heart. It is an ambitious project and the process can be a long one. Planning alone can be exhausting, but establishing a game plan is half the battle. Once this is done, the excitement and fun of seeing the plan come to life can begin.  But don’t put those thinking caps away just yet.

After the planning process comes the time to design

Rick Ivey, president and CEO of Virginia Barbeque, a quick-service barbeque restaurant, opened his first restaurant in 2000 and has eight new franchise locations. Ivey has recognized growth potential and realized a need to change the interior design now, instead of later, when there were more franchise owners to get onboard.

“Being new to the franchise industry, we wanted to breathe new life into our stores before we sold a bunch of new locations.” said Ivey. “Our first step in the process, after getting everyone onboard, was to choose a national custom manufacturer with the design capabilities, a nationwide company who could grow along with us and expand in any direction. The designs and drawings we have come up with have been priceless in our franchise selling process.”

There are essentially four phases involved in creating a store design: the idea stage, the rough sketch, the refined sketch and the artist rendition. The idea stage is very informal. Many planning sessions have ended with a rough sketch being drawn on a napkin. It doesn’t get much more laid back than that. From there, the remaining steps involve critiquing and refining the drawing further until there is a rendition, a final design that everyone is happy with. Now store plans can be drawn up.

The store planning process involves developing space and floor plans and considering what equipment will be needed and where it will go. Don’t be afraid to use a little creativity here. It’s not uncommon to walk into a store and see the check-out terminals right next to the entrance. Why not use this space to display hot, new merchandise instead? Not only will it grab a person’s attention, it may even entice potential customers to come in and take a look.

Once all the plans are on paper, it’s time to actually test them by building a prototype. Prototypes allow the franchise system to physically test each display and its function, challenge the selling philosophy and selling action, test to see if  goals are accomplished, get team input and create a list of other things that can be done. Remember: the prototype isn’t the final stage in this process. If something isn’t working, change it. After all, it’s easier to change one than many.

Now seems like a perfect time for congratulations. The company has survived the re-energizing process. Once the prototype is running smoothly, the plan can now be fully implemented. It could be said that this is the end of the road, but it is only the beginning. The marketplace is constantly changing.

In a few years retail will, once again, reinvent itself. Buying habits will change, the selling process will continue to improve and competition will soon be on your heels. However, having just completed the re-energizing process, the franchise system has gained valuable experience that, when combined with constant monitoring, will help it remain proactive. After all, a successful company is a progressive company.   

Larry Myer is a retail consultant at F.C. Dadson, Inc.  He can be reached at 1-800-728-0338.