Question

Topic: Strategy

Higher Signups In A Crowded Earlychildhood Space

Posted by Aaira on 1/6/2017 at 10:55 AM ET 500 Points
Have a strong overseas brand looking to enter into a new country with its early childhood education niche.

To get higher signups, wondering how the offering can be differentiated. Others charge a franchise fee plus setup costs. Wondering if we can waive those off for the first year, for good or anything else to get a strong start/higher signups. Have access to mainstream pr channels to make a splash..

Keen to know what the community thinks

Ches
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RESPONSES

  • Posted by mgoodman on 1/6/2017 at 12:47 PM Moderator
    It's not clear whether you are trying to get more franchisees or more [retail] customers. It also may depend on the country/culture.

    As a separate matter, waiving fees and setup costs is a two-edged sword. While this would reduce costs (i.e., one barrier to entry) for your target audience, it could also signal that: (a) you are desperate to get new takers; (b) the fees are too high to begin with; and/or (c) you don't really provide a legitimate benefit, so you're cutting your price in hopes that nobody will notice.

    Are you clear about your benefit-oriented positioning? If so, and if it is unique and really compelling, then you need to be communicating that positioning to your target audience -- not cutting your price before you even enter the market.
  • Posted by Peter (henna gaijin) on 1/6/2017 at 3:52 PM Member
    This sounds more like a franchising question than a marketing question. Unless there is some rule in the country you are in or the country you are going to about franchising fees, the fees are just part of an agreement between the franchiser and franchisee and could be changed or removed as part of making an agreement.

    Lowering fees could be a way to increase franchise agreements, but as marketers, we usually try to find ways to increase our business through means that don't involve decreasing income first.
  • Posted by Jay Hamilton-Roth on 1/7/2017 at 8:44 AM Member
    What's the awareness of your brand in this country/region?
    What's the demand for your product in this county/region?
    How saturated is the market already with your competition?
    What independent proof do you have that your product is superior to the competition?
    The answers to these (and other strategic questions) will help you decide your path.
  • Posted by cookmarketing@gmail. on 1/7/2017 at 9:13 PM Accepted
    Noting the above comments & questions will begin your franchise sign-ups vs competition; you may want to start with that differentiation with the group that pays all the bills <> your customer.

    With all the above giving a path to franchisees; addressing the customer <>

    With all parties in agreement <><><>

    You may want to offer the ultimate voter/customer a strong incentive for them to sign up.
    :

    A graduated subscription model:

    Very low first lesson
    Next lesson a tad higher
    Next lesson a tad higher still
    *
    *
    *
    *
    *

    If your product is superior, yet unknown this may be a means to introduce it via subscription service to franchisee to your compnay

    Good Luck
    Jim Cook
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