Subway 4P Essay

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TOPIC 3: MARKETING The businesses used for case study purposes are: • • • • • • • • • • Subway – target market Pepsi – branding and packaging Coca-Cola – product differentiation Tiger Airways – pricing and promotional strategies Nintendo – word of mouth Lion Nathan – promotional strategies L’Oreal Paris – marketing orientation and marketing mix Starbucks – price and product positioning Virgin Blue – ethical aspect of marketing Cadbury – legal aspect of marketing Subway: Choosing the right target market Subway started as a single outlet in Perth in 1987. It is now one of the most successful fast food franchises in Australia. Its target market is young Australians who prefer nutritious fast food instead of burgers and fries. Unlike its competitors such, as McDonald’s, Subway allows its franchisees to choose their own food suppliers, to ensure they can access the freshest ingredients from their local markets. This gives Subway a competitive advantage by enabling them to produce nutritious sandwiches with the freshest ingredients. Hence their catch advertising tagline – ‘Subway – eat fresh’. Pepsi: Branding and packaging Pepsi’s problem is that it is a big brand in a shrinking market. Sales of carbonated soft drinks declined from 10.24 billion cases in 2004 to 10.18 billion cases in 2005. The main reason for the decline is growing concern about obesity. Last month Pepsi launched a global re-styling of its Pepsi cans, with a series of 35 new designs, with themes such as music, sport or fashion. The globe logo and the lettering on the cans will remain the same, but a new theme will make its debut every few weeks. Each one has its own website with video clips and other enticements to engage consumers. The aim is to represent the “fun, optimistic and youthful spirit” of Pepsi, says the firm. Analysts believe changing the packaging is a tired brand’s last refuge.
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