Marketing Strategies for New Brands

Patrick SandersMax Muscle

Helping Our Franchisees Succeed

• Best way – franchisee profitability!

• Problem – nearly dominate penetration of the core body building market.

Helping Our Franchisees Succeed

• Issue - same store sales percentage of revenue growth slowing.

• Obstacle - marketing expense related to deeper penetration of existing market becomes uneconomical cost/benefit tradeoff.

Helping Our Franchisees Succeed

• Solution – open new markets• Issue – market identification• Targets:

1. Females – 80% of family purchasing power.2. Endurance – runners (25 million in US, largest market – Runners World), swimmers,biking, triathletes, weekend warriors.

Helping Our Franchisees Succeed

• Problem – product positioning and company image does not lend itself to these new markets

• Solution – reimage the brand

Helping Our Franchisees Succeed

• How?• Logo – what is a Max Muscle?• Listen to Arnold!

Helping Our Franchisees Succeed

Helping Our Franchisees SucceedStore Format

Helping Our Franchisees Succeed

Helping Our Franchisees Succeed

• Need to standardize the image and national brand.

• Hire national marketing and advertising firm that is entirely female owned.

• Hot Dish Advertising• Development of a national brand

campaign for 2005.

Helping Our Franchisees Succeed

• All advertising and marketing collateral for product to follow this concept and theme of this campaign.

• All advertising and marketing collateral for franchisees at store level advertising the store follows the campaign concept and theme.

Helping Our Franchisees Succeed

• Result – customer traffic into the stores has increased.

• Result – number of female shoppers has increased.

• Result – daily revenue has increased.• Result – profits are up, franchisees are

happier!!! Success!!!

Creating a Solid Infrastructure

Patrick SandersMax Muscle

Creating a Solid Infrastructure

The strength of any franchise system lies in it’s Unit Economics.

At Max Muscle this is the driving force behind all decision making processes.

How will this increase franchisee revenue, decrease costs and increase profits.

Creating a Solid Infrastructure• To help franchisees be successful we

have broken our support infrastructure into several groups:

• Store Development Team• Media Support Team• Franchisee Education Team• Business Support Team

Creating a Solid Infrastructure Store Development Team – Part 1

• Turnkey solution for franchisee – they have never done it before!

• Project Manager for Store Development• Construction Manager – fabrication

partner• 1st Manager – web based tool for project

management

Creating a Solid Infrastructure Store Development Team – Part 2

• Real estate and site location provided by Max Muscle.

• Pre-opening support: on site field representative from corporate for 2 days pre and 3 days post soft opening.

• Grand opening template• Franchisee Marketing Plan (FMP)• Franchisee Intranet – all marketing and

advertising materials created for them• Sales, Marketing and Advertising

Account (SMA)

Creating a Solid Infrastructure Media Support Team – Part 1

Creating a Solid Infrastructure Media Support Team – Part 2

• Same store sales were hitting a plateau, why?

• Reaching the limit of franchisee ability considering their background.

• We need to do it for them – the Marketing and Media Support Team.

Creating a Solid Infrastructure Franchisee Education Team

• Franchisee Association and the BoD – everyone has a voice.

• Weekly conference call• Weekly email communication• Franchisee Education Team – works

with both franchisee and employees

Creating a Solid Infrastructure Business Support Team

• Franchisee needs to work ON the business, not IN the business

• In store computer systems report financial results

• Franchisee Business Plan• Business coach compares actual to

goals with franchisee monthly