Option 2: In order gain optimal results,
Kleinaci should franchise stores in key areas around the city.
If Kleinaci franchised his stores at this point and time, he would be taking a significant step toward distribution in several channels as well as moving toward a positive and unified voice for the fashion conscious. In fact, many people today possess the opinion that a franchise is an attractive method of expansion for a business and a safe environment. While Kleinaci might be initially concerned that by joining a franchise he might sacrifice some of the unique and eccentric parts of his collection, the actual benefits from a franchise far exceeds the loss. For example, franchises allow for the relative ease of obtaining legal and real-estate aid, financing, insurance benefits and branding (Gelman, 2010). Additionally, should Kleinaci have the concern that he is not reaching a particular segment of the population, he could still target his segment market and expand his overall market through direct distribution or through cutting out the intermediary altogether.
Likewise, it should be noted that fashions come and go; and, some fashion designers believe that business owners should do their best to obtain as much of the market as possible when their business is popular (Gelman, 1999). Thus, setting up a franchise would not only help out the franchisor financially, but it provides viable and efficient option for other responsible adults whom are looking for employment or are retired or who just want to contribute meaningfully to a venture outside of the house. If Kleinaci is not convinced by an appeal to his altruistic side,...
If exposure is what he wants, then Kleinaci's multiple store fronts might help to better establish his brand image as well as his message amongst and profits from the general population. Furthermore, as the franchisor, Kleinaci would be in charge of the drafting of the franchisor-franchisee agreement and responsible for embracing the social activities that come along with it. He could specifically draft the document such that it does allow the individual employee permission to contact social networking mediums to serve as advertisements. In short, Kleinaci has a lot to consider since both modes of distribution of material have its own particular strengths and weaknesses.
References
Gelman, M. (2010, Spring). Should a franchise be in your future? Time, 195-207.
Lake, L. (2010). Developing your brand strategy.
Retrieved April 08, 2010, from About.com: Marketing.
http://marketing.about.com/od/brandstrategy/tp/brandstrategydev.htm.
Sequeira, J.T. (2009, September). Thinking outside the (big) box. Strategy and Innovation.
Retrieved April 09, 2010, from Forbes magazine.
http:/forbes.com/2009/09/24/html.
