Ways to conduct a product and market research for a franchise business

Franchises are a complicated affair. The reason behind this fact is that one needs to know the franchise business thoroughly so as to choose the right franchise to invest the money. Collecting a huge sum of money and applying for a franchise is a disastrous way to start even for those who have less idea about the market. There are a lot of businessmen who start a franchise business to benefit from the huge consumer market in India but only few of them become successful. In order to become a successful franchisee it is very essential that you do a rigorous market research to thoroughly understand the franchise business.

market research

How does market research helps in understanding franchise business?

Every business requires an immense amount of input and besides the money a larger part of this input is the research that is required to be done. Similar is the case for franchise business. Being a franchisee you have to do a great deal of research and analysis of market survey, area survey, risk calculation and other such aspects. Research is dire regardless of the fact that franchise management assists you with everything from the setup to the product selection. You can reduce the risks in business with efficient research and learn how to take better decisions to ensure that your business flourishes. Focus on learning the management strategies so that you can maintain your reputation in the market and eventually the profits will start following. Make sure that you know every nook and corner of the market and business area so that no unexpected situation can affect your business. Following are some approaches you can use to conduct an efficient market research in order to become a successful franchise business owner.

Get to know your product better in order to become a successful franchisee

Quantitative research is what you must focus on primarily and ensure that you collect all the right and accurate statistics. Soon after deciding the product with which you want to launch yourself in the franchise market (for instance, foods and beverages, or fashion garments, etc) make sure that you start the research. Try to find out the popularity of the product among the people and its demand in the market. Search answers for questions like:

  • What are the benefits of this product category over others?
  • What are the advantages of this particular brand?
  • What kind of customers will you entertain? Or, the kind of customers that will buy this product?
  • Is this business seasonal? Which are the seasons when the sales are recorded highest or lowest?
  • How should you plan for low sales periods?
  • What kind of experiences can you expect with this product as an entrepreneur?
  • What kind of business record does the product have so far?

Note: Bigger companies can be understood like large cap equity investments. They might be less volatile but also remember that they don’t get good returns. Small and medium business ventures might take their time to flourish but have larger scope for growing and they have proven to outlast larger brands in a stable market.

After getting done with the product research, you must take time to study the market.

Also see: Top 5 Preschool Franchises in India: Best play schools with maximum ROI

Market & area research for franchise business

Ask yourself the following questions regarding the market and area that you have chosen to start the franchise business:
  • Do you have competitor brands in the area that you have chosen?
  • Does the brand provide you with exclusive territorial rights?
  • What kind of customers will you find in the selected vicinity?
  • Are there any shops nearby that could affect your sales in a positive way? For example, if there is a garment shop nearby the cafeteria that you own then there is a good probability that people buying the clothes will stop at your cafe for a beverage or snack.

Market research tips and techniques for franchise businesses

Qualitative analysis and interview method can be a very effective approach. Interviewing people about the product that you want to launch can be of great help in market research for franchise businesses. Try a luring approach and keep your options broad open for offers and hampers to entice the crowd in return for their views and cooperation in your survey. This is one of the best approaches to attract crowd and conduct an effective survey. Following is an example that you can use to execute your survey properly.

Sample market survey for franchise business owners

Imagine that you are about to start a fast food chain franchise, and your largest group of customers are the young adults. What you can do is arrange interviews for different group of young adults which includes rich, middle-class, employed, working part-time, unemployed, pursuing higher education, living on their own, living with parents, single, in a relationship, spender, frugal, male, female etc. With such a versatile crowd you can conduct a great survey by asking following questions:
Their ideas about the product.

  • Why will they chose to buy the product?
  • When do they most want to buy the product?
  • Is the product a necessity or a leisure product?
  • Ask them to picture and characterize the product.
  • What will be their regularity of window shopping and actual sales?
  • What is their idea about the product or the brand in comparison to peer brands?
  • Their suggestions and feedback.

What are your franchise business market research tips?

Your advice is our most valuable asset. For any other strategies on market and product research you can connect with us and share your views. Leave your comment and suggestions because your advice is essential to us.


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