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The Segmentation

Essay by   •  March 20, 2012  •  Essay  •  402 Words (2 Pages)  •  1,548 Views

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Segmentation is the concept that dividing of a market into sub-markets in such a way that response to marketing variables varies as much as possible across segments and as little with segments. We will basically based on two segments in our business, which are Subway industry and vending machine industry. Those two industries are also what we want to corporate with. For Subway industry, we may negotiate with them to settle partnership relationship. We provide vending machines, and they provide foods. We can negotiate a possible way to have a corporation, either we share the profit with Subway, or Subway pays us the certain amount of money each year. On the other hand, we can develop our own network of sales, such as developing our own distributors and building own independently developed brands. We may have corporation with vending machines companies, and provide machines to our distributors and sales machines by using network of sales of our distributors, which is a very good way to expand our network of sales. Advantages of vending machines are that it can be anywhere that restaurants cannot be, and also it will be very convenient for customers to buy such that they do not need to go to restaurants. To corporate with Subway Company, not is only because that they have a strong power of fast food industry, but is also the idea of their food, which are fresh and healthy. People are more and more seeking health lifestyle, which is the idea of our vending machines. Our vending machines are different compared with the other companies because we can have different specifications depend on what our customers needs. For Subway Company, they need to provide organic and fresh vegies for customers such that they need to have special vending machines that can store and keep vegies fresh. Therefore, it will be a big advantage in this industry. According to some statistics that collected by Mintel, "more than half (67%) of respondents state that they are 'somewhat interested' or 'very interested' in natural products", and more than 72% of respondents are interested in organic foods (Cite). From the survey, we are confident that there will be a huge market. Also, it will be great that if we have a corporation with Subway Company, which has already built brand of fresh fast foods idea in the market, to satisfy with customers needs - convenience and healthy lifestyle.

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