The multi-brand franchising strategy at Moran Family of Brands allows franchise owners to generate profits by leveraging the expertise of a partner and creating a positive experience for customers.
If you already own a franchise, multi-brand franchising gives you the ability to provide additional services or products to customers and tap the expertise of your partner brand to grow your business. Co-branding offers certain advantages over simply opening a brand new unit, and 71 percent of consumers enjoy co-branding partnerships, according to a new survey from Visual Objects, a marketing resource for business owners.
Moran is one of the largest franchisors in the aftermarket auto industry with six different brands, including Milex Complete Auto Care, Mr. Transmission, Turbo Tint, Alta Mere, and more than 150 franchised locations. As a leader in providing auto franchise opportunities, Moran understands the value of co-branding. Multi-brand franchising allows its locations to be a one-stop shop for car owners. By offering two brands under one roof, Moran franchisees ensure strong repeat business and a higher frequency of use. Offering a higher level of services also helps increase ticket prices.
Multi-brand franchising can help ensure your business prospers. Here are a few of the advantages of opening two brands under one roof.
- Save Money. Housing two brands under one roof costs less than opening an additional unit. Co-branding provides the same fixed overhead with two revenue streams. The total investment for a new Moran franchise owner ranges from $118,219 to $296,767, depending on the brand or co-brand of choice.
- Share Reputation. Being a one-stop shop for customers helps foster relationships and build trust. Multi-brand franchising allows the business partners to share a reputation as a reputable business in the communities they serve. In 2016, The American Automobile Association revealed two out of three people are reluctant to trust their car mechanic. By understanding credibility is key to success, Moran has built a solid reputation in the industry and is recognized for providing honest work, fair prices, and quality customer care.
- Competitive Advantage. Co-branding gives franchisees the ability to take care of multiple vehicle problems without needing to refer a customer to another business.
- Employee Efficiency. Co-branding allows franchise owners to capitalize on a shared pool of talent. Having two brands in the same location limits the number of employees a franchisee needs to hire to run efficiently.
Effective Co-branding
Co-branding can help you save money and provide additional services to customers, but there are things to consider to ensure your partnership is effective.
Picking the right brand is also key to your success. You need a strong partner with a history of successful operations. A profitable co-branding partnership will draw on the same customer demographic. It also helps to pair up with a company that shares your values and has similar management styles.
It is important to share market compatibility with your partner. A meta-analysis of 37 studies published in the International Journal of Consumer Studies reveals the relationship between partner brands, rather than the individual characteristics of the brands, has a greater impact on the success of co-branding.
It is crucial to pay close attention to the reputation of a potential partner. While consumers generally support businesses that team up, a negative reputation can destroy a healthy brand partnership. Even if one company maintains a positive reputation, a partner's negative reputation can damage them.
Failing to align on core values and target audiences could hurt the reputations of all members of a co-branding effort. At least 61 percent of consumers will avoid buying from brands with negative reputations, Visual Objects revealed. Moran’s strategy of offering co-branding opportunities within its umbrella of brands gives franchise owners the confidence they are adding a solid partner.
Your new brand should not simply be an extension of your existing business. It needs to look like a brand-new venture to customers. Accomplish this by making sure to provide equal signage.
Learn More About Moran
If you are considering investing in an additional brand to increase return on investment, visit Moran Family of Brands to request information and connect with a franchise business consultant who can answer your questions about a profitable future owning multiple brands in the aftermarket auto industry.