Limited consumers with unlimited profits
Most entrepreneurs believe taking up a franchise is the fastest route to success as it captivates maximum consumers. This is true but having a niche customer base can be equally profitable. Keen to know more about this.read on
Aspiring franchisees consider that there is more of risk involved in taking a franchise which has niche audience. This is a myth as even large and popular franchise formats attracting customers from all age-groups and stratas of society have failed in the past. Moreover none of the franchisors can guarantee a 100 per cent success rate to their franchisees, who have taken a franchise targeting a maximum number of customers. A franchise that appeals to a limited audience may prove more fruitful than a large set-up luring all.
Franchises with a limited customer base are easily manageable as compared with businesses attracting all mixed audience. With the development in franchise scenario more and more players are entering into this arena. There are outlets which are meant for a particular class or age-group. Lilliput Kidswear Ltd, Zapp!, Toon Kids, Lilstop, Gini & Jony etc are few brands dealing exclusively in kids wear. These brands in spite of a niche customer base are gaining popularity across the country. Besides the kids wear there are many other players dealing exclusively with ladies wear, footwear etc. Taking up a franchise of a brand catering to niche customers offer many advantages to a franchisee. Mentioned below are few of them:
Few competitors: Having a business which has limited target customers has an advantage of having a few competitors. By focusing on specific customers, the franchisee will have less of competition as most of the companies aim at having large number of audiences. The big businesses would consider a small franchise as an unworthy opponent.
Unique marketing techniques: Another advantage which a franchisee enjoys is unique marketing strategies that he can employ for a target customer base. He can focus all his creativity and skills on attracting specific customers. It is comparatively difficult for a franchisee that runs a business catering to larger customer base as he/she has to grab the attention of entire public and that costs a lot of money on marketing.
Time management: A narrow customer base will allow the franchisee to invest more time to in devising new strategies for improvement of the franchise and expansion. This can not be possible when you have a franchise with large audiences to satisfy.
If you are planning to set-up a franchise with a limited customer base, here are some steps to make it a success and earn more profits:
Research well: The first step is to carry on an extensive research on the franchise. The consumers would vary according to the service or products provided. The franchisee should be sure about his target consumers and their preferences.
Perfect location: Selecting an appropriate location is a prime criterion for a franchise which has a narrow customer base. The franchisee should consider a location where his target customers can trace his outlet easily.
Monitor direct competition: While conducting the research it is a possibility that you may come across your direct competitors. There may be other entrepreneurs who believe in the concept of having a narrow customer base. In such situations the franchisee should prepare a list of all the direct competitors.
Marketing techniques: Having a franchise that targets niche customer base requires unique marketing strategies to make people aware of the brand. Besides employing the regular techniques of advertising, the franchisee should also think of novel advertising methods. He can make his outlet visible on all the social websites and should also make it clear that it is meant for quintessential consumers. He can make his brand more popular through registering his brand and himself at social networking websites.
The ways to marketing are endless. Franchisees need to keep themselves open to the developments and adopt them easily. The goal is to set up a popular outlet with loyal customers and earn maximum profits. If you are an aspiring franchisee, a business appealing to a particular customer base can be a lucrative option. By giving them the best service and products, you are sure to climb up successfully.
Related: No Kidding in kids retail
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