87475800 SUBWAY Marketing Plan

5/21/2018 87475800 SUBWAY Marketing Plan

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Project Report

On

ubmitted by:

Akramul Hoque (10201002)

Date: - March 27, 2012


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K I I T S C H O O L O F R U R A L M A N A G E M E N T Page 2

Table of Contents

1.0 Executive Summary2

1.1

Introduction ..2

2.0

Situation Analysis...3

2.1

Competitive Analysis...3

2.2 SWOT Analysis4-6

2.3 P.E.S.T. Analysis7.

2.4

Five Forces Analysis ..8

3.0

Marketing Strategy9.

3.1

Mission..10.

3.2

Core Values and Philosophy..103.3 Marketing Objectives.10

4.0 Target Markets11-12

4.1 Targeting12

4.2

Positioning.12

4.3

Strategies13

4.3.1 Ansoff Strategies13-14.

4.3.2 Porters Generic Strategies..15

5.0

Marketing Mix16-175.1 Branding Strategy..17

6.0

Recent and Future changes in Marketing Environment at SUBWAY 18

7.0

Appendix..19


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SUBWAY

1.0Executive Summary

SUBWAY was started 43 years ago in the summer of 1965 an enterprising 17 years oldyoung man, Fred Deluca . Subway is the market leader in the sub and sandwich shops

offering a healthier alternative to traditional fast foods. Subways annual sales exceeded $

6.3 billion, while countless awards and accolades have been bestowed its chain over the

past 43 years . Subway has more than 28,000 units worldwide whilst its rapid growth has

attracted many investments and brought it many competitors such as KFC and Burger

king . Recent initiatives attract customers beyond Subway traditionally health conscious

consumers should increase the companys share of the fast food market.

Subway's marketing program addresses health, fresh, custom-made sandwiches

expectations of consumers through a number of approachesThe Subway concept of serving

fresh made sandwiches on fresh baked bread, made right in front of customers, the way

they like it has proven to be a winning marketing strategy in Europe. Their customers

have really respond to the high level of service that Subway restaurants are famous for.

They have also become popular with health conscious customers in Europe who are

searching for higher quality fast food options.

Subways low initial investment and ability to fit into unusual spaces are other reasons for

their success. Without the need for heavy equipments for cooking a Subway restaurant is

the perfect business for the small spaces and tight real estate of U.K. Their regional office

makes the franchise start process simple and easy. Europe is currently wide open for

development. As their brand awareness grows in Europe, more and more people arebecoming aware of Subway as a great tasting lunch option and also as a great way to start

their own business within their community.

Estimates that its goal of opening another 1600 locations in the U.K and having a total of

30,000 restaurants worldwide, including 4,000 locations in Europe by 2010 are right on

track.

1.1 Introduction

According to SUBWAYs future market expansion strategies they have planned to open1600 locations in the U.K by 2010. In this marketing plan I am going to discuss and explain

what are the SUBWAY existing strengths, weaknesses, opportunities, threats, their

marketing strategies, marketing mix , branding strategies and their recent and future

changes which are effect their marketing success as a company. And also , as a marketer ,I

discuss what are the changes they can do to minimize deviations from their original

marketing objectives .


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In this plan I use my marketing knowledge to evaluate SUBWAY marketing strategies and

, will be discussing their potential growth from my point of view as a marketer. For this I

use some marketing theories and concepts for explain my ideas. First I use small marketing

environment audit using SWOT analysis, P.E.S.T analysis and five forces analysis to

discuss SUBWAY marketing environment. Then I will discuss subway marketing

strategies using Ansoff metrics and Porter s generic strategies while considering theirmarketing mix and finally will go for recent and future changes.

2.0Situation Analysis

A situation analysis is an honest valuation of the opportunities and potential problemsfacing a prospective or existing company, through analysis a deeper understanding of an

industry , competitor and possible optioned can be examined.

Subway is the market leader in the sub and sandwich shops offering a healthier alternative

to traditional fast foods. Subways annual sales exceeded $ 6.3 billion, while countless

awards and accolades have been bestowed its chain over the past 43 years . Subway has

more than 28,000 units worldwide whilst its rapid growth has attracted many investments

and brought it many competitors such as KFC and Burger king . Recent initiatives attract

customers beyond Subway traditionally health conscious consumers should increase the

companysshare of the fast food market.

Being part of a highly competitive and dynamic market, Subway faces a strategic

marketing challenge as to what specific marketing mix to use in order to sustain a

diffencial advantage while maintaining sales growth and above all profitability.

Subway effectively competes with burger chains and others that are in the fast casual

segment of the market. Including healthier meals into his menu and giving much attention

to obesity and diabetes have supported consumerschoice for subway. However, subway has

not been satisfied thus far, instead, more intensified efforts have been made to improve

business during the dinner hour. Additional menu options have also been added to answer

competitorstrends and to place more focus on the childrens segment.

SWOT analysis can be helpful to highlight subways 1) Internal strength and weaknesses

along with 2) the external opportunities and threats. In the past few years, sandwich

market has gained incredible popularity in the U.K culture.


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2.1 Competitive Analysis

Thepurpose of analyzing competitors is to try and asses what they will do. This will

enable the organization to respond accordingly. Competitive advantage is about relative

competitive position competitors are sometimes used as benchmarks. (CIM, 2005)

Subway is not without competitive pressures, chief competitors include KFC,

McDonalds, Pizza hut, Greggs and Eat.KFC and Pizza hut are the world largest with

33,000 restaurants in over 100 countries. Four of the companys highly recognizable brands

KFC, Pizza Hut, Long John Silvas and Taco Bell, are global leaders of the Mexican,

Chicken, Pizza, Quick service sea food categories.

McDonalds corporation is the worlds largest food survives relating chain with 31,000 fast

food restaurants in 119 countries. The company also operates restaurants under the brand

names the Boston Market and Chipotle Mexican Grill. McDonalds operates largely in

the U.K and is headquartered in Oak Brook, Illinois employing 447,000 people.

2.2 SWOT Analysis

However, since marketing is such a complex function , it seems illogical not to carry out a

pretty through situation analysis at least once a year at the beginning of the planning cycle

, in the same way that an annual financial audit is carried out (McDonald, 2002 )

Oneuseful way of doing audit is in the form of a number of SWOT analyses. A SWOT is asummary of the audit under the headings, internal strengths and weakness as they relate

to external opportunities and threats (McDonald, 2002)

Subway sandwich shops are well positioned to leverage their strength and address

reasonable threats, weaknesses and opportunities. The table below highlights these

Strengths, Weaknesses, Opportunities and Threats.


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Strengths

STRENTHS

Size and number of stores and

channels.

Menu reflects demand for fresh,

healthy and fast.

Use of nontraditional channels.

Partnering with the American Health

Association.

Worldwide brand recognition.

Customizable menu offerings.

Low franchisee start up cost.

Franchisee training is structured,

brief and designed to assure rapid

start up and success.

WEAKNESSES

Dcor is outdated.

Some franchisees are

unhappy.

Service delivery is consistent

from store to store.

Employee turnover is high.

No control over franchise

situation in given market

area.

OPPORTUNITIES

Continue to grow global business.

Update dcor to encourage more drive

in business.

Improve customer service model.

Continue to expand channel

opportunities to include event

wagons.

Improve franchisee relations.

Experiment with drive-through

business.

Expand packaged dessert offerings.

Continue to revise and refresh menu

offerings.

Develop more partnerships with more

producers and toy manufactures to

promote new movie releases through

childrens menu packaging and co-

branding opportunities.

THREATS

Franchisee unrest or

litigation.

Food contamination

(Spinach).

Competition.

Interest costs.

Economic downturn.

Sabotage.

Law suits.


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SUBWAY main identifiable strength is their size and number of stores and channels. This

gives better advantage for SUBWAY when it competes with other competitors. When we

consider their product line, menu reflects demand for fresh, healthy and fast .And they

have better customizable menu offerings as well. SUBWAY use nontraditional channels to

develop their markets. SUBWAY product is mainly targeting for healthy product, they

facilitate positioning their products by partnering with the American health association.SUBWAY has better world wide brand recognition which will be discussed later part of this

plan deeply. Low franchisee start up cost is another strength they have when penetrating

the market. On the other hand their Franchisee training is structured, brief and designed

to assure rapid start up and success. These are the main strength which SUBWAY can use

their marketing developments.

Weaknesses

According to marketing point of view their main weaknesses are outdated dcor in their

franchise outlets . It reduces their competitive advantages in market. Some of their

franchisees are unhappy. And their service delivery is consistent from store to store. Other

main weakness of SUBWAY is their employee turnover is comparatively very high.

SUBWAY doesnthave control over franchisee situation in given market area. For better

marketing growth SUBWAY should critically evaluate these weaknesses and make them

manageable under some certain level.

Opportunities

SUBWAY has number of opportunities become stronger in the sandwiches market rather

than competitors. SUBWAY is continuing to grow global business. They can update dcor to

encourage more drive in business. Better opportunity to improve customer service model.

They can continue to expand channel opportunities to include event wagons, improve

franchisee relations and expand packaged dessert offerings. SUBWAY can experiment with

drive through business like McDonald already doing. To minimize competition SUBWAY

should continue revise and refresh menu offerings. Develop more partnerships with more

producers and toy manufactures to promote new movie releases through childrens menu

packaging and co-branding opportunities.

Threats

Main threats we can identify for SUBWAY might be the food contaminations which are

more popular recently (Ex . Spinach). Franchisee unrest or litigation, emerging competition

are the other threats which SUBWAY face. Like every other companies SUBWAY face the


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economic downturn threat these days. Sabotage and law suits are the other main threats

for SUWAY.

There are varieties of ways of classifying the forces at work in the macro environment.

PEST analysis and Porter five forces analysis are two of them.

2.3 P.E.S.T. Analysis

Below table explain the P.E.S.T factors which are affecting to SUBWAY.

Political actors

Health and safety guidelines

Labeling and GM foods

Animal rights campaigns

Economic Factors

Low set up costs

Franchising facilities set

ups

Support from major

suppliers

Growing market

Perceived value for money

Increasing disposable

income

Social Factors

Busy life styles

Healthy eating and obesity

Increased vegetarianism

Homogeneity

Social activities

Technological Factors

Investments in

technological innovations

Computer ordering(Till

system)

Political Factors


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Main political factors which are affecting to SUBWAY marketing are health and safety

guidelines of the government, Labeling of genetically modified foods and animal rights

campaigns specially organize by some environment friendly groups.

Economic Factors

Low set up cost is a good advantage for SUBWAY. Franchising facilities setup, Support

from major suppliers, Growing market for healthy foods, Perceived value for money and

increasing disposable income are the main economic factors SUBWAY face.

Social Factors

Busy life style of the new generation is very good advantage for any kind of fast food

industry. Awareness of healthy eating and obesity, increasing vegetarianism, homogeneity

and social activities regarding fast and healthy foods are the main social factors whicheffect to SUBWAY marketing environment.

Technological Factors

Investments in technological innovations and computer orderings are the technological

factors.

2.4 Five forces analysis

According to Porters five forces analysis followings are the main forces and their effects for

SUBWAY marketing environment.

Threat of

entrants

Threat of

substitute

s

Power of

supplier

s

Power of

buyers

Competitiv

e rivalry

1.Setting up

2.Product

differentiatio

n

1.Convenience

shops

2.Mid range

restaurants

3.Pre cooked food

1.Farming

industry

2.Worldwide

market of

suppliers

1.Consumer

s

2.Little

brand

loyalty

1.New entrants

likely

2.Price wars

3.Overall demand is

increasing


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4.Other social

activities

5.Health food

shops

3.Alliances

Threat of Entrants

Major threats of entrants are setting up of the entrance and differentiation of products

which is important for market penetration and market development.

Threat of Substitutes

There are lots of convenient shops, mid range restaurants and health food shops are there

in the market. So customers can have much kind of alternatives to select their option.

SUBWAY marketing strategy should cover these every kind of competition as well. Pre

cooked foods which customers can easily consume are the other threat. Different kind of

other social activities regarding fast food industry also could be a threat f for SUBWAY

market.

Power of Suppliers

We can consider as power of suppliers for SUBWAY market as farming industry, worldwide

market of suppliers and alliances.

Power of Buyers

Any kind of industry power of buyers is specially consumers. Some kind of little brand

loyalty also can be considered as power of buyers.

Competitive Rivalry

Mainly we can consider as competitor rivalry for SUBWAY are new entrants likely , price

wars and increasing of overall demand.

3.0 Marketing Strategy

Marketing strategies reflects the companys best opinion as to how it can most

profitably apply its skills and resources to the market place. It is invertible broad in scope.


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Marketing strategies are the means by which a company achieves its marketing

objectives and are usually concerned with the four P s. (McDonald, 2003)

Subway's marketing program addresses health, fresh, custom-made sandwiches

expectations of consumers through a number of approaches. The most notable were the

television commercials featuring Jared. These commercials emphasize the healthy aspectsof a Subway sandwich by highlighting the 245 pounds Jared lost by eating a Subway

sandwich diet. Subway also markets through a national sponsorship in events such as

American Heart Association Heart Walks and local events such as triathlons, and

children's sports teams.

The Subway example represents marketing and product strategies that are classic

examples of focusing on market demand, consumer trends, product leveraging, and

innovation. The marketing strategies of creating clear brand recognition, brand and product

association, and market demands, have strategically positioned Subway to advance market

share into the near future. These marketing strategies are also repeatable fundamentalmarketing strategies transcending the fast food market.

The Subway Franchisee Advertising Fund Trust or SFAFT governs advertising. SFAFT

functions independently of Doctors Associates Inc., which is the franchisor of the SUBWAY

business franchise concept, and its affiliates.SFAFT manages funds contributed by

SUBWAY franchisees. It was established to create advertising and marketing programs

that are designed to build restaurant sales and promote the systems image.

SUBWAY has a customer care team, dedicated specialists who are in constant

communication with consumers.

Success factors for fast food franchisees will include products and marketing targeted to

healthier menu selections, brand consistency, low start-up costs, franchisee support, and

consumer convenience. Subway represents a poignant example of a fast food franchisee

ready for success in the future fast food market. Their strategies transcend the fast food

market and apply to many other markets and products

Branded fast food continuing to move into other nontraditional venues such as colleges,

airports, military bases, hospitals, and amusement centers. Part of their marketing

strategy, Subway includes identifying which venues and retail chains would be mostamenable to quick-service brands.

3.1 Mission


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Mission is an organizations rationale for excising at all and/or its long term strategic

direction and/or its values ; its basic function in terms of the products and services the

organization produces for its clients (CIM , 2005 )

Subway Mission

To provide the tools and knowledge to allow entrepreneurs to successfully complete

in the QSR industry worldwide by consistently offering value to consumers through

providing great fasting food that is good for them and made the way they like it (Subway ,

2005 )

3.2 Core values and Philosophy

SUBWAY is always committed to customer satisfaction through offering high quality food

with exceptional service and good value. They always maintain their quality of customer

service every franchisee outlet. They take great pride in serving each other, customers and

communities. They seek continuous improvement in that entire do. SUBWAY Value a sense

of urgency and emphasize an innovative, entrepreneurial approach to business because

especially they are in fast food industry. They expect fairness and mutual respect in all

activities. They know their success depends upon the initiative they take individually and

their ability to work as a team.

3.3 Marketing objectives

SUBWAY main marketing objectives are maintain positive , strong growth each quarterand achieve a steady increase in market penetration. SUBWAY posses good information

about the market and knows a great deal about the common attributes of the most prized

customer. This information will be leveraged to better understand who is served, what their

specific needs are, and how SUBWAY can better communicate with them through

marketing. SUBWAY use marketing segmentation, targeting and positioning strategies to

develop their market.

4.0 Target Markets

The process of breaking down the total market for a product or services into distinctsub groups or segments , where each segment might represent a distinct target market to

be reached with a distinctive marketing mix. A market segment consists of a group of

customers or consumers who share the same or similar needs (McDonald,2002)

Segmentation Methods


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1. Demographics (Age, Life cycle , Gender , Income , Occupation, Religion ,

Education , Race ,Nationality )

2. Geographic ( Location , Regional , Urban , Density , Climate )

3. Psychographic (Social class , Life style , Personality )

4. Behavioral (Occasions , Benefit sought , User stages , Usage rate , Loyalty

status )

SUBWAY Segmentations

Age group (1839) Kids meals

Income level (c 1) worldwide locations

Healthy Life style

Urban Areas South east etc)

Halal sandwiches

Subway is always improving their geographic segmentation from their early development

ages. By studying Subways geographical expansion we can identify what kind of

segmentation they include their marketing strategies.

Where did the SUBWAY chain open its first international location? It wasnt in Canada,

Mexico or somewhere close to the United States. It wasnt in England, Australia or

somewhere that English is the official language. It wasnt in Germany, France or

somewhere else where many different types of sandwiches are popular. Its not where you

might think.

The SUBWAY chain tested international waters when it opened its first unit in the small

exotic Middle Eastern island nation of Bahrain in December of 1984. In a relatively short

time, the SUBWAY chain started to appear in such distant lands as Iceland, Poland,

Nicaragua and China.

The SUBWAY chain, the worlds largest submarine sandwich franchise, goes to tremendous

lengths to bring great taste and fresh ingredients to consumers in the farthest reaches of

the globe. With more than 2,400 locations outside the U.S. and Canada, the SUBWAY

chain is a leader in fast-food international development.

In upcoming months, the plans for SUBWAY restaurants in countries such as Belize,

Luxembourg, Thailand Romania and Hungary are on the drawing board. Despite the

diversity of cultures.

We can see SUBWAY target some kind of cultural and religious segments while keeping

their original values maintaining. Wherever SUBWAY restaurants are located, the core

menu stays relatively the samewith the exception of some cultural and religious


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variations. World travelers can expect the same high quality ingredients regardless of what

nation they are visiting.

On the other hand SUBWAY always target different kind of age segments, through their

existing product lines and product developments, specially improving kids meals.

4.1 Targeting

Marketers do targeting for segmented markets. After the market has been

segmented into its segments according to their segmenting strategies he will select a

segment or series of segments and

Target it /them. Resources and effort will be targeted at the first is the single segment

with a single product. Secondly the marketer could ignore the differences in the segments,

and choose to aim a single product at all segments. Finally marketer will target a variety of

different segments with a series of differentiated products. The advantage of target

marketing is marketing effort can be focused on the market segment(s) that offer the

greatest potential for the company to achieve its objectives (Lancaster & Reynolds,

2003)

Year 2003SUBWAY improves the nutritional content of its Kids Pak meal by switching the

carbonated soft drink to a juice box and changing from a high calorie cookie to fruit roll up

fruit snack that is high in vitamin C. Many of the Kids Pak toys are now designed to inspire

physical activity. The web site includes a resource for parents striving to manage their

childrens diet and exercise levels. Parents and children can also ask Jared Fogle about howhe lost his weight or how they can incorporate fun exercises into their everyday lives.

SUBWAY restaurants begin to distribute 'Jareds Steps to Healthier Kids' information cards

in efforts to educate customers about preventing childhood obesity

The increase in sales of the sandwiches has been a result of decreases in consumer interest

in hamburgers and fries and increases in demand for healthier options. Sales of sandwiches

are growing 15 percent annually, outpacing the 3 percent sales growth rate for burgers and

steaks.

SUBWAY target virgin international markets using their strong brand name.

4.2 Positioning

Positioning is all about Perception . The term Positioning reefers to the consumers

perception of a product or service in relation to its competitors. Positioning relates to the


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task of ensuring that a companys market offerings occupy a predetermined place in

selected target markets, relative to competition in that market (Lancaster &

Reynolds, 2003)

SUBWAY positioning their products by continuing to build the brand on the "freshness"

platform. The SUBWAY chain is expanding its universe of potential customers as a placefor "TASTY" and "HEALTHY" food. This positioning, communicated via an effective

advertising campaign, will serve to make the SUBWAY chain part of customers everyday

consideration set.

SUBWAY use lots of strategies to position their kids meals. In year 2004 Jared Fogle and

WNBA superstar Lisa Leslie kick off the Jared and Friends School Tour in NYC, stressing

the importance of healthy eating and exercise. The in-school curriculum, 'One Body! One

Life! Eat Fresh! Get Fit!' is developed by the SUBWAY brand and Weekly Reader. The

curriculum is intended to help teachers of fourth, fifth and sixth grade students and instill

proper eating and fitness values

Develop more partnerships with movie producers and toy manufacturers to promote new

movie releases through children's menu packaging and co-branding opportunities

4.3 Strategies

We can use strategic tools to explain marketing strategies of the company.

4.3.1 THE ANSOFF MATRIX

Some of the more common marketing strategies are illustrated by the Ansoff matrix.

Existing Products New

Marketpenetration

Productdevelopment


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Existing

Markets

New

Market Penetration

Market penetration is when a firm increases its share of a market in which it already

operates.

SUBWAY always focuses their marketing strategies to penetrate the markets which they

are already operating. They have one operating department, it is Franchise sales, this

group is dedicated to finding those individuals who possess the entrepreneurial spirit

required to open a SUBWAY franchise of their own. They find new franchisees to penetrate

the market.

Other way they use existing franchisees to penetrate the market. For this purpose also they

have separate department, Profit Building Local Marketing This department helps

franchisees in local markets with initiatives designed to increase sales at their restaurants.

Market Development

This strategy involves finding new markets for the products a firm already makes.

SUBWAY has developed a team specifying for market development. New Business

Development This team works closely with potential franchisees who wish to open a

SUBWAY restaurant in non-traditional locations--such as in a supermarket, movie theatre

or gas station

Subway restaurant sites are adaptable to any type of location. The simplicity of the Subway

Restaurant operation and the ability to fit into spaces that competitors cannot enables

them to open restaurants in many unusual and non-traditional sites, such as:

Airports

amusement parks

business centers

Market

development

Diversification


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coliseums and stadiums

colleges and universities

convenience stores

convention centers

hospitals

military bases recreational facilities

elementary and secondary schools

supermarkets

travel centers/truck stops

Diversification

Diversification involves the firm going into new markets which are totally different fromthose targeted by the existing activities of the firm. SUBWAY is going for real estate

markets, mobile phone markets and some financial markets to reduce their business risk

through diversification. They have a team called Subway Real Estate Corp the men and

women of this division assist franchisees with real estate leasing and negotiations.

Product Development

Improvement of products over time to maintain their competitive position. Product

development is one of the main marketing strategies of SUBWAY, specially introducingimproved healthier menus. SUBWAY has a Research Development team this department

is responsible for developing and test marketing the food that we serve and the equipment

that is used.IN 2005 SUBWAY; their low-fat sub choices are expanded to 8 Subs less than 6

Grams of Fat. In 2007 The SUBWAY restaurant chain launches its Fresh Fit and Fresh Fit

for Kids meals, which feature healthier-for-you side options such as apple slices, plump

raisins, low-fat milk, bottled water and Dannon yogurt. The meals are developed to fit into

the American Heart Associations approach to a healthy lifestyle. All trans fats are removed

from SUBWAYs core menu items. Menu choices now include higher fiber Wheat and Honey

Oat Breads, personal size Pizzas, Black Forest ham, and The Feast Double Stacked sub.

4.3.2 PORTERS GENERIC STRATEGIES

Competitive Advantage

Low cot Higher cost


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Narrow

Competitive scope

Broad

Porters Generic strategies

Focus means the company consolidates its efforts on a small range of products in a market

niche.Differenciation means to establish a unique sales proposition or feature that

competition cannot match. Cost leadership means the lowest price in the market.

SUBWAY menu offered a wide variety including salads, pasta, dinners, soups and desserts.

They have steps taken to improve business during dinner and late night sales and

marketing to children. Their nutrition factors- fresh and so much healthier than others.

More value for money improving quality will increase the value of the product. They have

differential pricing strategy with value pricing. But create value products by service in

terms of quality, ambience, variety and convenience.

5.0 Marketing Mix

Marketing mix consist of four Ps. Product, Price, Place and Promotion.

Overall

cost

leadership

Differentiation

Cost focus Differentiation

focus

PRICE

Level

Discrimination

Discount

PROMOTION

Advertising

Sales promotion

Personal selling

PRODUCT PLACE


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Available marketing tools to target customers (Lancaster &

Reynolds, 2003)

Product

The marketing mix combines many factors, but customers view marketing effort in more

tangible terms of the product (or service). (Lancaster & Reynolds, 2003)

SUBWAY menu offered a wide variety including salads, pasta, dinners, soups and desserts.

They offer wider menu and better quality fresh products .In 1996 The chain's flagship

sandwich, the classic BMT, is first introduced.IN 1997 The 7 under 6

menu, featuring seven submarine sandwiches with 6 grams of fat or

less, is first introduced! In 2001 Another fresh veggies, the cucumber is

added to the SUBWAY menu, which already boasts lettuce, tomato, red

onion and green peppers. 2004 The SUBWAY chain introduces a line of new crab-controlledwraps. The wrap itself, has only 5 grams Net Crabs. In 2005 Delicious, fresh toasted subs

are added to the SUBWAY menu,

Quality of food

Subway prides them on always having the freshest ingredients available for sub, and they

hide nothing from the customer. All their products are made on the spot while the customer

chooses what toppings he/she wants on the sub. Unlike most fast food franchises, nothing is

deep-fried or frozen.

Price

Price is a potent element of the marketing mix because of its direct impact on customers,

the company and the economy. SUBWAY use upscale pricing little higher than normal subs

in the market. They offer differential pricing strategy with value pricing. But create value

products by service in terms of quality.

Design

Packaging

Display

Brand

Warehousing

Transportation

Service

Stockholding


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Place

This is concerned with activities needed to move the product or service from the seller to

the buyer. (Lancaster & Reynolds, 2003)

SUBWAY target is open another 1600 locations in U.K by 2010.SUBWAY use their majorselling locations as franchisee shops and their another new market development places in

nontraditional places like Airports ,amusement parks ,business centers ,coliseums and

stadiums ,colleges and universities ,convenience stores ,convention centers ,hospitals,

military bases ,recreational facilities ,elementary and secondary schools ,supermarkets and

travel centers/truck stops. People who in any kind of SUBWAY sales point are on hand to

ensure customersneeds are matched with the right product and to explain the different

options available.

And SUBWAY do market research on the location preferences and they close poor and

predatory franchisees regarding customer satisfaction. They upscale to stripped down shopsto quasi deli restaurants. At Subway, you dont wait for your order. You order it at the

counter and watch it being made by the highly efficient team of staff. When the product is

ready, you pay and take it with you. No bills, no queues, no hassles.

Promotion

Promotion covers four areas. Advertising, Personal selling, Public relations and Sales

promotions. The target for the SUBWAY chain's media buying is adults aged 18-49, in

order to maximize our buying power with a skew toward programming that delivers better

to the younger 18-34 audience. The goal of the chain's current advertising campaign is to

increase the brand presence in the consumers "consideration set"--that is, which fast-food

restaurants consumers consider when deciding where to eat.

The majority of the advertising is done via national TV during prime time, sports and late

programming on major broadcast networks and cable networks. Additional advertising is

done via local markets on TV, radio and in print. SUBWAY restaurants also promote

advertising messages and specials in-store with point-of-purchase material such as posters,

menu translates, etc.

5.1 Branding Strategy

SUBWAY brand position as a very healthy fast food chain providing healthier and fresher

food brand value. Positioned between a stripped down version of subs and full theme

restaurant. Service is more like a fast food style but in terms of food quality, quantity,

presentation and fresh, puts it closer to theme restaurant.


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6.0 Recent and Future Changes in Marketing Environment at

SUBWAY

Although, SUBWAY has achieved better marketing position and brand image in the fastfood industry, they face much kind of challenges in marketing environment. Specially

most of the recent challenges are been created by economic down turn in the world.

Economic downturn is being affected all of the markets in the world as well as fast food

market. So each every marketer are finding ways, how to survive in this environment and

what strategies have to use to develop their own market activities. SUBWAY also badly

affected from this crisis environment.

On the other hand there is a emerging competition for subway product line. Especially for

their health conscious products. Because, all the other fast food competitors are introducing

and improving their health conscious product line , which SUBWAY use to maintainleadership. Being part of a highly competitive and dynamic market, Subway faces a

strategic marketing challenge as to what specific marketing mix to use in order to sustain a

diffencial advantage while maintaining sales growth and above all profitability.

Subway effectively competes with burger chains and others that are in the fast casual

segment of the market. Including healthier meals into his menu and giving much attention

to obesity and diabetes have supported consumers choice for subway. However, subway has

not been satisfied thus far, instead, more intensified efforts have been made to improve

business during the dinner hour. Additional menu options have also been added to answer

competitors trends and to place more focus on the childrens segment.

Like all kind of companies SUBWAY also facing the rapidly advancing of technologies.

SUBWAY also introduces and gets use of new technological innovations to expand and

penetrate their markets. When they designing dcor for franchisees they widely use new

technological designing tools.

Food contaminations are increasing in recent years and SUBWAY marketing badly effect

from it. In future it will be more due to lots of pollutants in environment. On the other hand

genetically modified food rejections also will be a big challenge for all kind of food produces

specially for fast food producers. And environment friendly groups always make problems

for meat and in future it will accelerate , so SUBWAY should have think about alternativesfor meats like flavored soy products, but SUBWAY can take advantage of that problem

since SUBWAY go for healthy and low calorie food product marketing .


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7.0

Appendix

References

McDonald, M. (2003) Marketing Plans, 5 th ed.., Kent: Butterworth-Heinemann

publications.

CIM (2005) Marketing Environment, 4 th ed.., London: BPP professional education.

Swift, I. (2005) Marketing, 4 th ed.., London: Holder & Stoughton.

Lancaster, G and Reynolds, P (2003) Marketing made simple, 2 nd ed.., Oxford: Made

simple.

Subway (2009) Mission and values,web page accessed on 02/08/2009 from

http;//www.subway.co.uk.

European Franchising (2009) Subway, webpage accessed on 27/07/2009 from

http;//www.europeanfranchising.net

Subway (2009) student educator, webpage accessed 20/07/2009 from

http;//www.subway.co.uk

87475800 SUBWAY Marketing Plan

Documents

subway marketing plan

subway restaurants

aware of subway

marketing environment

marketing mix16

marketing objectives

marketing strategy9

subways marketing program