teachthe4ps.com » franchising

Port-a-Potties for Emerging Markets

Joe Cannon — Wed, 26 Oct 2011 23:33:01 +0000

Sanitation is a huge problem in many emerging markets. The World Health Organization estimates that 37% of the world’s 7 billion people do not have access to hygienic toilets. Entrepreneur David Auerbach smelled an opportunity (literally as the inspiration came from a particularly nasty bathroom in China). Auerbach’s new company Sanergy, is using a franchise model as it starts out in Kenya. Local entrepreneurs pay $500 for a Sanergy toilet (often using local microlenders). They charge $.05 per use, and the toilets are emptied daily, with the waste brought to fertilizer plants. Read more at “Cleaning Up: David Auerbach’s Sanergy” (Bloomberg Businessweek, October 13, 2011)

This provides examples of entrepreneurship, franchising, sustainability, and international (developing) markets.

“Pizza Chain Seeks Slice of Bicultural Pie”

Joe Cannon — Tue, 18 Jan 2011 00:54:40 +0000

This Wall Street Journal article “Pizza Chain Seeks Slice of Bicultural Pie” (December 29, 2010 non-subscribers may have to click here) describes the 100 store Pizza Patrón restaurant chain’s changing marketing strategy. The firm has focused on a Spanish-speaking target market, but now looks to reach out to new target markets that includes whites and African-American youth. The article describes Pizza Patrón’s marketing research and some of its strategy plans.

The article provides an interesting strategic counter-attack when you consider all the companies trying to appeal to the growing Hispanic market. The example also fits with a discussion of segmentation, marketing strategy planning, and even market research.

“KFC Savors Potential in Africa”

Joe Cannon — Wed, 15 Dec 2010 18:36:18 +0000

Another example of a company spotting opportunity in Africa (see recent post “The Africa Opportunity“). This time it is KFC and its parent Yum Brands that are looking to expand in this growing market. This article, “KFC Savors Potential in Africa” (Wall Street Journal, December 7, 2010 – non-subscribers may have to find article here) includes some demographic and competitive information that might be useful in class discussions or examples when covering international, demographics, or channels of distribution/retail.

“Restaurant Franchises Try Truckin’ as a Way to Grow”

Joe Cannon — Sat, 06 Nov 2010 15:06:20 +0000

This is a pretty straightforward example of firms adding new distribution channels. Yet it ties together several concepts and the industry is one many students can directly relate with. In “Restaurant Franchises Try Truckin’ as a Way to Grow” (Wall Street Journal, October 28, 2010) you can read about a trend where many food franchises are bringing their food to customers via the local food truck. This is partially in response to consumers needs and competition. Many of these firms use Facebook and Twitter to let customers know when and where the truck will be operating.

Great example to use for channels — but also as part of the external market (technology and competition).

“P&G Looks to Franchise Tide Dry Cleaning”

Joe Cannon — Sun, 12 Sep 2010 15:01:22 +0000

I like this brand extension. With growth in services, Tide has found a way to leverage one of its strengths (a well-known and well respected brand name) to take advantage of a great opportunity (growth in services, and lack of organized competition in dry cleaning). Brilliant methinks! What do you think? Check out “P&G Looks to Franchise Tide Dry Cleaning” at Bloomberg Businessweek (September 2, 2010). Also posted at our Learn the 4 Ps blog for students.

The example could work well when you are teaching strategy planning, branding, services, and franchising.

“Why KFC Franchisees are Squawking”

Joe Cannon — Tue, 17 Aug 2010 22:53:23 +0000

KFC has found itself between a rock and a hard place. Following general trends toward healthier fare, the company has developed and more aggressively promoted some of its healthier fare (read grilled instead of fried chicken). On the other hand, many franchisees are upset with the new emphasis and feel the strategy confuses customers. They don’t want KFC to turn its back on its fried heritage. Interesting marketing strategy questions to raise in class — see “Why KFC Franchisees are Squawking” (Bloomberg BusinessWeek, August 12, 2010).

“Subway’s $5 Footlong”

Joe Cannon — Sat, 21 Nov 2009 21:02:35 +0000

This video (below)/article (“The Accidental Hero,” BusinessWeek.com, November 5, 2009) combination tells the story of a very successful Subway promotion. The promotion was originally the idea of a Miami franchisee who successfully launched it locally. It was later picked up nationally and has helped Subway provide more value during hard economic times. The video can be used as an example of sales-oriented pricing objectives or as an example of odd-even pricing. The story also shows the value of listening to franchisees.