Are there beliefs that are fatal
From time to time we hear brands say certain “truths” that seem universal, until reality comes with force.
The most common of these are:
The market is huge
“If it worked in one city, it's going to work in all cities of that size.” Not really, each square has its own potential, saturation, and competitive dynamics.
Customers behave the same everywhere
To think that consumers in São Paulo will have the same habits as in the interior of Mato Grosso is to travel with mayonnaise.
The competition doesn't change
Many assume that the competitive landscape will remain stable, but it is enough for a network to appear with a more aggressive strategy and its network crumbles.
Every franchisee can be a good operator
To ignore the variation in the profile and execution capacity of the franchisees is to turn a blind eye to one of the model's biggest risks.
The occupancy cost is in the background
Franchises assumes that “good point pays the bill”, but forget that high rent can kill the operation before the business even gains traction.
Digital marketing works alone
To think that online campaigns support sales is to underestimate the power of local activation.
More units = more billing
Linear growth is an illusion, there always comes a time when expansion becomes saturation and then Cannibalization, with new stores taking the result of the previous ones.
Models are universal
A format that works for shopping centers may fail on a neighborhood street. Flexibility is mandatory, not optional.
The problem is trying to grow up with the wrong beliefs
Successful expansion requires facing reality:
- Markets Have Limits
- The consumer is diverse
- Competition is dynamic
- The cost of making mistakes is high