In it for the long haul...

The franchise sector has many key affiliated companies that provide services to support it; and in the current economic climate, it has never been so important for franchisors to know that their industry partners have a trusted and proven history to back them up.

Editor Alison Church talks to John Hancock, MD of Venture Marketing Group, which organises the bfa-accredited franchise exhibitions and finds a burning commitment to promoting and supporting ethical franchising… through the good times and the bad

What is VMG’s involvement within the franchise industry?
Venture Marketing Group has been providing a service to the franchise community for over 15 years, so it’s an industry with which we are not only very familiar, but we have also developed really important and highly valued relationships over the years.

Franchising is a sector that I feel incredibly passionate about, which is a feeling I know is shared by the rest of the team at VMG and is the basis upon which we have broadened our franchise portfolio in recent years.
VMG has always worked very closely with the key industry bodies within all our business sectors and believes in long-term partnerships, long-term commitment and long-term investment.

When did it all start?
Venture Marketing Group was founded in 1987. It launched The British & International Franchise Exhibition in London in 1994, as a result of a number of informal discussions with franchisors that wanted an exhibition that really focused on the promotion of business format franchising – something they felt was not fulfilled at the time.

Since then, the portfolio has grown to encompass The British Franchise Exhibitions in Manchester and Glasgow, The National Franchise Exhibition in Birmingham, The Irish Franchise Exhibition in Dublin and The Franchise Exhibition in Belfast; these are supported by the Franchise Marketing Awards, the Franchise Marketing Conference, Business Franchise magazine, Business Franchise Directory, Franchise Ireland magazine, Franchisor News, www.businessfranchise.com and www.franchiseinfo.co.uk. This portfolio demonstrates the dedication VMG has towards championing quality in this critically important industry sector.

What else does VMG do?
VMG is particularly active within the recruitment sector, running six graduate recruitment exhibitions, four engineering recruitment exhibitions, and two student work placement exhibitions all around the UK each year. Additionally, VMG runs high-level B2B events for the learning and development and business growth sectors. These are all supported by websites, conferences, awards and publications.

As you can tell from this extensive portfolio, VMG has a commitment to a number of different industry sectors. Unlike some event organisers VMG does not believe in simply dipping its toe into the water of an industry to profit from the buoyant periods and pulling out when times get tough, instead VMG builds long-term connections in order to grow strong roots that will weather the test of time.

How do you see your current role within the franchise marketplace?
I do not see VMG’s role as purely an exhibition organiser or media supplier – our commitment runs much deeper. VMG is committed to promoting ethical, high-quality business format franchising as a business strategy to as wide an audience as possible, which is demonstrated by the million pounds plus spent year after year promoting franchising to the general population.
The products that VMG has developed such as Franchisor News, the Franchise Marketing Awards and the Franchise Marketing Conference support the exhibitions and are designed to promote and raise the profile of those franchisors that offer high-quality franchise opportunities. These key products also provide advice, support and networking opportunities to franchisors to help them to do the same.

How have you seen the franchise industry grow and develop?
Franchising has seen tremendous growth over the last decade and a
half, particularly in the quality and diversity of business format franchise systems available for investment.

There has been work done by the bfa, which we have always supported, to build the image of franchising and in doing so promote it as a solid, ethical and proven business format that provides huge benefits to individuals wanting to take greater control over their futures. That being said, I believe there is still much to do and the education process needs to be continued – there are still too many people out there who don’t really understand the opportunity that franchising presents. This is a key focus for VMG within our current promotional campaigns.

How would you describe the mood within franchising at the moment?
It would be wrong to say that there isn’t a considerable amount of uncertainty surrounding all sectors of business at the moment. These are definitely trying times for everyone. However, the vast majority of franchisors that I talk to remain upbeat that they have plans to ride out the downturn so that they are in position to take the resultant opportunities that will inevitably come from the stories that are currently hitting our headlines.

What short-term and long-term effects do you see the economic climate having on franchising?
Your readers will have read numerous articles within Franchisor News and other industry publications of how franchising has previously done rather well in times of economic uncertainty; and, providing franchisors remain committed to sensible recruitment marketing and continue to promote their business in the right way and in the right places, franchised businesses should again out-perform non-franchised businesses. The short-term outlook is not rosy but equally it may not be as bad as some are suggesting. I couldn’t commit to a time frame for business to pick up within franchising, but there is no reason to believe that the long-term future for the franchising sector isn’t good! As I said before, quality, commitment and perseverance will be key to surviving the downturn; as always those with strong foundations and a healthy financial basis will go from strength to strength. I am proud to say with no shadow of a doubt that, like many franchises, VMG possesses all of these qualities in trumps!

How do you see the franchise industry developing in the coming years?
I see substantial and continued growth within the franchise industry as a whole both in terms of volume and quality. The UK population is becoming ever more independent, entrepreneurial and business-minded; people are less and less likely to take a job and make it their career for life, many are becoming increasingly disillusioned by job insecurity, and they aspire to being their own boss. And, as more of them see and grasp the proven benefits of franchising as a business format, the take-up will only increase.

Do you see exhibitions continuing to hold such a position of importance in companies’ marketing strategies?
In a word, yes. Absolutely. (OK, that’s two words – but who’s counting?) There is no other medium that can deliver such a high volume of face-to-face interaction between buyers and sellers.
In this market exhibitions enable franchisors to meet a high volume of interested potential franchisees, filter out the less serious enquiries, and are a far more efficient and effective way to assess leads than through application forms and written enquiries.

VMG is very proud of what we do in terms of how we support our exhibitors, our customer service, and our relationships within the industry as a whole. So it is perhaps unsurprising that we are focusing on what we do well, particularly delivering to franchisors a clear, open and transparent marketing strategy.

I believe in the long-term VMG’s strong foundations, broad portfolio, massive investment in franchising and our ongoing commitment to promoting the business format will ensure that we continue to be the franchisors’ partner of choice. VMG has a proven history of delivering exceptional events and the resources and experience to deliver an extensive marketing campaign targeted in a way that provides franchisors with the highest return on their investment.
The benefit exhibitions have over any other medium is that franchisors can exercise their educated instincts by meeting prospects face to face and assess as much by personality as by other criteria (financial status, business acumen, industry knowledge, etc). Given that many franchisors cite personality and instinct as major factors in recruiting franchisees, it is clear that exhibitions will remain at the centre of the recruitment mix.

Do you see the internet overtaking exhibitions as a medium to recruit new franchisees?
No. The internet has an important part to play in any franchisee recruitment campaign, but equally any marketing strategy is made up of multiple key components. VMG is certainly seeing a significant increase in activity on our franchiseinfo and business franchise websites, both from a visitor and advertiser perspective. We have invested heavily in this area in the last 12 months and it is certainly an area of growth for franchisors serious about recruiting franchisees.

That said, franchisors (like any advertiser) must take a balanced view of the strengths and weaknesses of any medium. The internet can deliver volume, but equally exhibitions deliver high quality and an important ability to interact with your leads from day one. The most effective marketing campaign will strategically combine both so that they complement one another.

There has been talk of VMG introducing a ‘loyalty scheme’ for its franchise customers – how far has this idea developed?
We are still on schedule to have the franchise scheme in place for the new year and this, along with the new preferential pricing available to franchisors exhibiting at the Manchester, London and Glasgow exhibitions, illustrates our support and commitment to those customers who work with us.

How do you see the future for VMG both within and beyond the franchise
industry?
Well, without giving away too much, there are definitely exciting times ahead for VMG. The management team is always focused on the business strategy and our position within the markets in which we work. I can say without any hesitation that the wider team within VMG is as committed and ambitious as I am to expanding our horizons; it continues to be an inspiring environment with the team continually driven to improve and grow.

I believe the coming year or so will see real opportunities for strategic acquisition, but consolidation of our existing portfolio of products is our primary consideration. To find out more, I’m afraid you’ll just have to watch this space…!

It is certainly encouraging to speak to someone who remains driven, enthused, and wholeheartedly positive in these uncertain times, and I believe it is an attitude many of us can take to heart.

To find out more about VMG and its products, visit:
www.franchiseinfo.co.uk
www.franchiseinfo.ie
www.businessfranchise.com
www.businessfranchise.ie
www.franchisornews.co.uk
www.sme-events.com
www.gradjobs.co.uk
www.engineerjobs.co.uk
www.construction-job.co.uk
www.work-placement.co.uk
www.learnevents.com
www.learningmagazine.co.uk
www.exhibitorguide.co.uk