Taking a franchise global is a very exciting step with a world of new opportunities—literally. But you have to be thoughtful in your approach to get the best results. This includes adapting your franchise model for other, diverse cultures. Ideally, you want to maintain a strong brand identity while also embracing cultural diversity. Read on below to find a helpful list of factors to consider when adapting your franchise model for different cultures.
Market Dynamics
Market dynamics include trends, present and future growth, and supply-and-demand changes. Market research is a fundamental tool of global franchise marketing. In fact, it should be one of the first factors considered. Possible results of research into market dynamics include identifying target demographics, learning about potential local competition, discovering potential demand in the market, and understanding the ins and outs of the local culture.
Cultural Norms and Sensitivities
Naturally, a major factor to consider is cultural differences. Understanding cultural norms and sensitivities in a region will lead to the most success when adapting a franchise model to diverse markets. This must be considered throughout the whole process.
Cultural nuance can impact language, values, traditions, and societal norms. Cultural sensitivities can also be based on the area’s predominant religion.
You’ll want to avoid cultural misunderstandings as much as possible. Even the slightest miscommunication or misinterpretation could lead to conflicts and operational difficulties that mar a franchisee’s success. No matter what industry your franchise is in, good communication is a must to keep things running smoothly and avoid the risk of offending a target consumer base.
Adapting Products and Services
Depending on your franchise, you may need to customize your products or services for a better cultural fit. To do so successfully, you’ll need to understand local consumer preferences. Market research can help you identify the specific needs of your new market and adapt your product accordingly—you don’t want to customize a product only for it not to sell. This is also an opportunity to discover if there are additional local demands your products and services can meet.
For example, franchises like Mcdonald’s and Starbucks offer different menu items in different countries to reflect popular food items within different cultures. Even if you don’t offer entirely new items, you can still make adjustments. For instance, offering different portion sizes, adjusting a formula, substituting ingredients, and so on. Learn more about cultural adaptations of products and services.
Marketing Materials and Branding
In addition to adapting products and services, you will need to customize marketing materials for the local culture. Hire a professional to translate materials into the local language; use imagery, colors, and messaging that the people will identify with; and so on.
Keep in mind, when customizing products, services, and marketing, you still need to maintain your core brand identity. Ultimately, you want your brand to be recognizable wherever your consumers are located.
Creating a Master Franchise Model
A master franchise model provides a framework for making necessary adaptations for different cultures. Creating a well-thought-out model will help you make a plan for localization while maintaining a strong brand identity.
Legal Regulations
Every country has its own legal regulations regarding franchises. These can include local labor laws, taxes, contracts, disclosure, and intellectual property rights. Seek legal advice ahead of time so you’re prepared for any adjustments you need to make.
Training Programs for Franchises and Employees
Cultural awareness must be a part of your training materials. By educating employees and franchise owners, you can avoid costly misunderstandings and conflicts.
Service preferences may also vary amongst different cultures. For instance, some consumers may expect more personalized customer service from franchise employees. You can not only meet but also exceed these service expectations. This is why researching consumer preferences and behavior is so important.
Choosing Franchise Partners
You’ll want to successfully cultivate relationships with local partners and consumers. Local partners can provide invaluable insight into local consumer habits and preferences. This can also extend to partnering with local influencers for marketing campaigns.
Consumer Behavior and Preferences
Obviously, no two consumers are exactly alike in their behavior. But research into analytics and customer surveys can provide insight into general habits, preferences, wants, needs, tastes, and expectations. A few behaviors to consider include:
- Do your consumers prefer to shop online or in person?
- Where are they most likely to see your advertising? This could mean online versus on a billboard, or it could mean discovering which social media platforms they prefer.
- How do your consumers pay for their products or services? Do you need to be prepared for a cash business, or are contactless customer experiences the way to go?
- What are the current buying trends in the local area?
Analyzing consumer behavior can help you better meet your customers where they’re at. Find out how they like to shop, and then develop a strategy that meets their needs.
Consumer behavior can be influenced by social, cultural, personal, and psychological factors. Cultural and social influences, such as local market trends, can determine the popularity of certain products or services. Personal influences can include demographics such as age, gender, and economic standing. Psychological factors include motivation, wants, needs, and beliefs. Consider all of these to get the most accurate picture of your customers.
Also, keep in mind that these factors can change rapidly. Continue your research and analytics, even once the franchise is locally established.
For the most success when adapting a franchise model, work with an agency that specializes in global franchise marketing, such as InnoVision Global Marketing. An experienced agency has the connections and can provide the data and research to inform the major decisions that come with expanding globally. Start the process by communicating your goals and expectations. Then, work with the agency to achieve them.
