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Q:Maybe some of you are interested in trying to help a small business located in Brazil, some 5.000 miles away. If so, here's some data:
A:1 - It's a service franchise, mostly for women, kind of beauty parlor. The franchiser is lousy; the franchisees are going the lawsuit way. 2 - ALL the franchise stores in the country where you have some winter (Brazil is mostly a hot country) are doing badly. Most of the ones located in non-winter areas are doing better. 3 - However, many competitors (independent stores, even in cool areas) are doing well. So, it's above all, something wrong with the brand/product. That's a big doubt. The brand is unknown, per a simple market research I've done. There is/was not franchiser support. Customers are invited to fill a questionaire when they finish the service and we are classified good or excelent in service by 75% and in personal rapport excelent for over 85%. However, they seldom send in their friends (return by ex customers is not to be expected before 6 months; however, they hardly return). I just can guess about competition, but I think it's mostly a matter of personal rapport/status or other untangible value. Prices are about equal for the same service, our being some 10% lower. Discount campaign during winter did not work. Practically we are. All that's left of the franchise now in my state is that the franchisees are doing cooperated advertising and we meet from time to time to exange ideas, but that simply isn't enought. NONE of the francisees over here have a past of trading to the feminine market, so there's no real guidance. I've tried hiring a women market consultant, but she spoke too much and did too little... |