Ep85 Managing the impact of cannibalisation in a franchised network, with Vanessa Wilmot, MD geotech

Every franchise brand is looking to grow, however, how do you manage growth and adding locations when it can impact on existing franchise owners?   Vanessa Wilmot, MD of geotech, is an expert in managing this exact dilemma! If not managed well the potential for negative impact can be significant across a franchise brand.   In this discussion the key aspects to cannibalistion covered are;   What cannibalisation is How brands essentially walk a 'tight rope' of wanting to open new locations to grow the brand while balancing income concerns of existing owners How brands assess potential cannibalisation using data Impulse v destination brand differences How to reduce the impact of cannibalisation Using data to maintain a healthy franchisee / franchisor   We wrap the conversation with some key advice from Vanessa on managing the potential of cannibalisation in your brand and how to approach the problem.   0:00 Intro 0:21 What geotech does in franchising 0:39 What is cannibalisation in franchising? 1:58 The 'tight rope' of making sure brands are serving the market yet also having a tolerance for competing against each other 2:48 Brands do consider how much in sales one site could take from another 3:28 How do brands assess cannibalisation impact 5:09 What sort of things impact cannibalisation for impulse and destination brands 6:59 Insights on cannibalisation for destination brands such as big box retail and 'defensive' strategies, even re-locating 9:04 Minimising cannibalisation strategies using data in particular 10:49 How data can help explain decisions to franchise owners on other store openings near them 12:27 Good data around new locations helps maintain good franchise relationships 13:26 Key message and advice in managing the prospect of cannibalisation 14:58 Wrap up   Listen or Watch on; Spotify:  https://tinyurl.com/mu3w57p9 Apple Podcasts: Amazon Music: YouTube:  https://youtu.be/4IpFGXkz86I