Chapter 9: Assessing Market Demand and Competitive Landscape

In the competitive world of franchising, conducting market research is a vital step in determining the demand for a concept in a specific location. By gathering and analyzing valuable information about the target market, franchise owners can gain key insights into consumer preferences, purchasing behavior and any unmet needs in the market. 

The insights gained through market research enable franchise owners to identify potential opportunities, address challenges and tailor their offerings to meet the needs of their desired target audience.

Conducting Market Research to Determine Demand for a Franchise Concept

At Dog Training Elite*, marketing director Cassandra Conder confirmed that the franchise found an effective way of conducting market research by following a few steps. 

“First, understand your target audience's needs and preferences through surveys and online research,” she said. “Then, stay up-to-date on market trends by reading industry reports and attending trade shows. Finally, validate your findings and test demand through pilot programs in target areas. These practical steps have guided our growth as a young franchise and will continue to do so moving forward.” 

By studying a market’s needs, competitors and demographics, franchisors can determine if their brand aligns with the demands of that target audience. 

Analyzing the Competitive Landscape in Target Markets

Thoroughly assessing the competition allows franchisors to gain a comprehensive understanding of specific market dynamics and determine whether they will thrive in a location. 

Conder noted that Dog Training Elite identifies both direct and indirect competitors. The company also studies competitors’ offerings, pricing and customer feedback. By conducting a strengths, weaknesses, opportunities and threats (SWOT) analysis, she found valuable insight. All franchises can benefit from a SWOT analysis because it allows them to assess internal factors that might affect business, as well as any external factors. 

Recognizing Potential Changes and Opportunities in a Market

Conder added that it is crucial to constantly monitor market trends and competitor activities to identify alarming changes, as well as opportunities. 

“It's important to look for changes in consumer behavior, new technologies and legal developments that could affect our franchise,” she said. “Specifically, we keep an eye on shifts in pet ownership rates, evolving attitudes toward dog training and fluctuations in pet-related spending habits. Being proactive and adaptable in response to these changes has been key for us as a young franchise navigating the marketplace.” 

Understanding changes or unmet needs in the market can also help franchisors proactively address them through innovation, improved customer experiences or strategic partnerships. 

Being aware of consumer preferences, market trends and competitive dynamics allows franchisors to make decisions that optimize their chances of success. And by continuously monitoring the competitive landscape and market trends, franchisors can stay ahead of the game, adapt their strategies, and capitalize on emerging opportunities.