The Marketing Environment Assignment Example | Topics and Well Written Essays - 250 words

The Marketing Environment - Assignment Example Brands. Yum which was started by Pepsico Inc. is a major franchise with such names as Pizza Hut, Taco Bell, Kentucky Fried Chicken, Dong Fang Ji Bai and A & W restautrants. Its main operation strategy has been to establish a franchise (Cyrek, 2009). Franchising is using another firm’s successful business strategy to develop one’s business. The brand of one company is therefore used to sell by another according to a business agreement between the two (Anttonen, 2005). Just like Yum, Subway is a franchise. The main deifference is that wherass Yum offers a variety of services, Subway specializes in fast foods, with sandwiches as their main product. This specialization has given Subway an edge since it is easily identified with the sandwich which is its main widely recognized product. In a way it is the swift expansion program that worked to Yum’s advantage, yet presently they don’t seem to have anywhere else to expand to, since their company has saturated its primary US, European and Asian market (Subway, 2008). Subway still enjoys a lot of room for expansion especially to the newly emergent Chinese market. Marketing the sandwich is therefore a process that will keep expanding for subway in the near future. But the biggest key advantage Subway has is in its name, they mainly market their products in subways with passengers who just find the product very convenient to grab on the way to their destinations (Subway, 2008). Products such as sandwiches do well in markets where people have a relatively high disposable income. A busy environment in which people have tight work schedules that does not give them the extra time to cook for themselves also suffices. Subways which serve customers on transit are quite strategic for selling sandwiches too just as explained above. The main trends that affect the business is economic recession such as the one which started in 2007. Sandwiches may be delicious, but they are classified as luxuries and are thus