CONTENTS

INTRODUCTION HISTORY VISION AND MISSION PRODUCTS OFFERED DEVELOPMENT OF SUBWAY IN INDIA MARKETING MIX-INDIA INTERNATIONAL STRATEGIES SWOT ANALYSIS CASE STUDY REFERENCES

INTRODUCTION Subway chain is the third largest fast food American restaurant franchise that primarily sells sandwiches (subs) and salads in the world after McDonalds and KFC. The first Subway was founded in 1965. The founder of the Subway chain, Fred De Luca, started running his restaurant business when he was only 17 years old. The first Subway restaurant was opened nine years after its foundation in Connecticut where the headquarter is now situated. (Subway Denmark)Now there are more than 30,000 Subway restaurants in 88 countries worldwide and it is the worlds fastest growing franchise chain. New Subway restaurants are opening all the time. The franchise chain has employed more than 150,000 people. (Subway 2009)Subway offers customers many different kinds of fresh submarine sandwiches also called subs.Customers always decide how they want their sandwiches to be served. Subways advertising is based on freshness. Slogan Eat Fresh tells that Subway chain uses only freshly baked bread and fresh ingredients. Subway has a lot of competitors for example McDonalds, Burger King and Sunset Boulevard.

HISTORY Fred DeLuca (born 1948 in New York City) is the billionaire co-founder of the Subway franchise of sandwich restaurants. DeLuca is an alumnus of University of Bridgeport and Central High School in Bridgeport, CT .At the age of 10 Fred moved to Amsterdam, New York where he and his family became friends with Peter Buck.Once in his teens, he moved with his family to Bridgeport, Connecticut. When DeLuca was seventeen years old, he borrowed $1,000 from Buck to start his first sandwich shop in 1965, after Buck suggested the idea to DeLuca at Buck's Armonk, New York home. Before this career Deluca worked at a low wage paying job at a hardware store, trying to raise money to pay for college,to study in the field of medicines .He eventually attended the University of Bridgeport; a private university in Bridgeport, CT. When he began his sandwich stand he chose a mediocre location for his shop. Deluca wanted a food place that was healthy. His plan was to begin a fast-food venture that provided a healthier, less fattening bill of fare. On the radio advertisement they had promoted the name as "Pete's Submarines", which sounded like Pizza Marine, so they changed the name to "Pete's Subway", eventually it was shortened to "Subway", as it is known today.

The first shop opened on August 28 that year in the town of Bridgeport, Connecticut.The first year of business was a learning experience and of course a challenge. A year later Deluca and Buck opened their second location and it took that amount of time for the two men to realize that visibility and marketing were the two main key factors to the success of the business. DeLuca believed that the biggest mistake he made was where he set up his very first shop as it was a "crummy location." Knowing that they needed a better spot with much visibility, the third outlet was in a highly visible locations and that location is still there today.After succeeding, DeLuca continued his dream to go to college and then graduated, but rather fell in love with his business and expanding it. In 1978, Subways 100th store opened and in the 1000 store mark in 1987, where as the McDonald's chain only had 800 .As of October 2011, the company counts over 35,400 franchised locations in 98 countries and produces US $9.05 billion sales every year. In 2007, Forbes magazine named DeLuca number 242 of the 400 richest Americans with a net worth of $1.5 billion. Today, Subway is one of the most popular chain restaurants. a

VISION AND MISSION STATEMENT Subway the mission statement is Delight every customer so they want to tell their friends with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience. A vision is a statement of the future picture of an organization or cause. Like mission statements it applies to organizations or individuals. Vision statements are important as they allow followers to stay focused on a set of goals in order to reach their vision. They also provide motivation for followers as they see an end point and something to strive for. Overall, the vision statement for Subway is be the Quick Service Restaurant franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience

PRODUCTS OFFERED BY SUBWAY:

COOKIES SUBWAY CLUB SANDWICH

Subway Franchise Enjoying Healthy International Expansion Subway is continuing its healthy expansion into 88 key counties include: Canada, Mexico, Brazil, Australia, China, Singapore, India, Pakistan, France, Spain, Germany, Italy, UK & Ireland.

DEVELOPMENT OF SUBWAY IN INDIA Operating from its main office located in Milford, Connecticut, the quick service restaurant chain has five regional centers to support its expanding international operations. The Asian centre has been growing at a rapid pace and India as a country occupies a pivotal spot on this expansion map. Subway Systems India Pvt Ltd opened its very first restaurant in 2001 in New Delhi and has swiftly grown its operations to 183 operating restaurants in 26 cities across India. Although it is a global brand with a menu that is relatively the same around the world, SUBWAY restaurant's takes great pride in honoring and respecting local traditions and food preferences and has earned a reputation for offering a healthier alternative to traditionally fatty and greasy fast food.

SUBWAY restaurant's in India serve no beef or pork products and have an expanded selection of vegetarian choices. Popular sandwiches, both local and international favorites, include Veggie Patty, Paneer Tikka, Aloo Patty, Chicken Meatball Marinara, Roasted Chicken, Chicken Teriyaki, Turkey, and Tuna. SUBWAY Restaurants INDIA, serves Veggie Patty, Paneer Tikka, Aloo Patty, Chicken Meatball Marinara, Roasted Chicken, Chicken Teriyaki, Turkey, and Tuna. A leading restaurant in serving both local and international favorites also. A most preferred point in India to satisfy Indian taste buds with their delicious menu.

MARKETING STRATEGIES -INDIA PRODUCT Subway is a multinational restaurant franchise that mainly sells sandwiches and salads. It is the modern version of fast food restaurant in which each sandwich is made in front of the customer according to his or her taste. It basically is a consumer driven product.introducing products like pasta ,soups ,desserts,kids meal.In india they mainly focus on taste and preferences of the customers as Indians does not prefer beef as Indians worships cow whereas in foreign countries this is not at all a issue.

PRICE The prices of all of the items offered by Subway seem to be very reasonable and in accordance with the target market segments. Pricing of Subway is 'Strength' for Subway and in most of the markets it has penetrating pricing strategy. PLACE Most of the Subway outlets around the world are in commercial areas. The part of the area being crowded most of the time can be an advantage for Subway. People roaming around for the purpose of shopping can actually be expected to step in and make a purchase at Subway. It may be a possibility that the presence of the shopping area add to the sales of Subway. PROMOTION Considering the promotional activities being carried out by Subway, it is quite obvious that right now subway is not taking any kind of initiatives to promote itself. There are no advertisements on television, in the form of print ads or on radio, as opposed to some of its competitors like McDonalds and KFC. Health related events,dance and sports events,more compaingn for children and youth adults .Marketing Mix of Subway can really affect the company because the four Ps of marketing mix produce attractiveness for the customers.

SUBWAY RAPID EXPANSION IN JORDAN The SUBWAY chain has marked steady growth in Jordan, validating its reputation and viability. In 2008, the chain added three more outlets, followed by a further three in 2009 and two more in 2010. SUBWAY Restaurants in Jordan, part of the worlds largest submarine sandwich franchise, announced it is inviting additional franchisee partners in a bid to expand the brands presence across the country and make it easily accessible to a growing patron base. Mohammad Omar, Development Agent in Jordan, SUBWAY, said Subway has received popular acceptance from the Jordanian community, largely due to our relentless focus on providing a balanced diet combined with a delectable menu. The favorable economic environment makes it a strategic time for potential franchisees to take advantage of the profitable proposition that the Subway brand offers. Since its launch in Jordan in 2007, the brand has registered rapid growth and currently boasts a network of 11 outlets. The expansion is in response to the increasing demand for the healthy food options it provides, which have earned SUBWAY Restaurants a significant reputation in the country. SUBWAY Restaurants recently became the largest submarine sandwich franchise in the Arab world with more than 250 restaurants in some of the most popular locations. Currently, it has 106 stores in the UAE, 44 each in Kuwait and Saudi Arabia, 17 in Qatar, 11 each in Jordan and Bahrain, nine in Oman, four in Egypt and five in Lebanon.

"Subways international development is really starting to take off quite nicely," . Subway recently hit the 2,000-unit milestone in Canada, and the franchise system's unit tally in Europe now stands at 712 stores. "Of those 712 stores, we've added nearly half [or 320 units] in the past 12 months," DeLuca said. "Europe is going through a big upward cycle." Most of Subway's European growth has occurred in the United Kingdom and Germany.

INTERNATIONAL STRATEGIES- US, EUROPE

ADVERTISING: Subway uses the advertising slogan "Eat Fresh" to explain how every sandwich is made from freshly baked bread, using fresh ingredients, in front of the customer to their exact specification, by employees whom Subway terms "Subway Sandwich Artists".In November 2007, Subway's US commercials featured the Peter Griffin character from Family Guy in which he extols the virtues of its new Subway Feast sandwich. Subway has also used instant win competitions based on the game Scrabble as promotional tools. Subway was also seen in the 1996 film Happy Gilmore. Subway also has a product placement television advertisement campaign for the US series Chuck, ongoing since its first season. As ratings dwindled in the second season, a campaign to "save Chuck" was launched by fans, which involves purchasing a foot-long sandwich from Subway on April 27, 2009, the date of the season finale. Tony Pace, Subway's marketing officer, reportedly called it the best product placement the restaurant chain has done "in several years."

PRODUCT ,SERVICE AND DELIVERY CHANGES

Several restaurants includes Subway have also sought to improve operations by altering their price, product line and/or introducing new initiatives. Burger King US attempted to differentiate on price with a $1 value menu that was intended to stimulate traffic and better compete with their competitors. Subways has been pushing franchisees to open 24 hour.In terms of product additions, globally Subways initiatives have ranged from toasted sangas or toasted sandwiches in Australia, adding healthy products and salads, adding and testing espresso coffee (also tried by Dunkin Donuts), and offering table service in Thailand. A number of technology inspired changes have also been implemented presumably in the hope people will either visit more often and/or stay longer (and therefore purchase more). Subways has been testing selling DVDs for a $1 a night which no doubt brings people back regularly. In Canada, Mail Boxes Etc is offering wireless access to customers in the hope it will boost demand for printing, mail forwarding and courier services. Subways in the US is now also offering Wayport-enabled access for gamers at more than 6000 restaurants. Interestingly, there are a whole string of cafes (including Starbucks), and other types of businesses, that have started offering wireless access presumably alL in the hope customers will spend more time and money in their premises. In other technology inspired changes,In Australia, Subways hopes that ordering sandwichby mobile phone and Internet will make Australians eat more sandwich and boost revenue by 12 per cent. And finally, Subway has adopted an e-loyalty card. Electronic cards capable of storing customer data are poised to replace the paper loyalty

cards that fast-food outlets have used for decades to reward frequent eaters and have been the target for fraud.

QUALITY IMPROVEMENT Subways initiatives included promoting greater quality to differentiate itself from others. Interestingly, in 2004 their emphasis on quality monitoring reputedly led more US franchisees to leave the system in twelve months than had previously exited in five years. The quest for quality was obviously a serious one.

BRAND VALUE CHANGES Franchise companies have also attempted to differentiate their brand values.Subways sought to distinguish itself by introducing a range of healthy products. In the US, Subways health focus involved new meals for adults that included salad, bottled water, a pedometer and advice to walk more. Very recently, Subways has further emphasized health-related values by sponsoring a physical education program that appears in onethird of US , Subways worked hard changing and testing a new image before rolling it out throughout the group. In their publicly available 2004 revitalization plan, it explains how testing and learning from experiences in New Zealand and France proved a fresh, sophisticated environment could generate increases in sales and profits.

STORE FORMAT CHANGES A number of franchise chains have been reinventing their store format and concept in efforts to improve attractiveness and all-round competitiveness. Subway say a 750,000 overhaul of their store design and menu has sales 12% above forecast.

SWOT ANALYSIS Subway sandwich shops are well positioned to leverage their strengths and address reasonable threats, weaknesses, and opportunities. STRENGTHS

Size and number stores and channels Menu reflects demand for fresh, healthy and fast. Use of non-traditional channels. Partnering with the American Heart Association. Worldwide brand recognition. Customizable menu offerings. Low franchisee start up costs. 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 inconsistent from store to store. Employee turnover is high. No control over franchise saturation in given market areas.

OPPORTUNITIES

Continue to Grow Global Business. Update dcor to encourage more dine-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 movie producers and toy manufacturers to promote new movie releases through children's menu packaging and co-branding opportunities.

THREATS Franchisee unrest or litigation. Food contamination (spinach). Competition. Interest Costs. Economic downturn. Sabotage. Law Suits.

NEWS ARTICLE SUBWAY CUTS SALT IN FRESH FIT SANDWICHES

A Subway sandwich shop is shown in New York, May 20, 2010. Subway is slashing the amount of sodium in its sandwiches. The world's largest fast food chain announced today that it is cutting the amount of salt in its "Fresh Fit" sandwiches by 28 percent and is removing 15 percent of sodium across its other sandwiches. April 18, 2011

Subway, the world's largest fast food chain, announced today it is cutting the amount of salt in its "Fresh Fit" sandwiches by 28 percent. This is on top of the 15 percent of sodium the company already removed from its core sandwiches. "Sodium intake around the world is growing, and since high sodium intake is linked to hypertension, a major risk factor for heart disease, we knew it was important to try to reduce the sodium in our menu items," Lanette Kovachi, corporate dietitian at Subway, told ABC News. "We have made significant reductions already, but we plan to reduce even more." The federal government recommends that the majority of Americans consume no more than 1,500 milligrams of salt per day, and even with the cuts, most of Subway's sandwiches would still account for more than half of a person's recommend daily amount of sodium. "50 percent of your daily consumption is more than we would like, but its much better than what it was before," said Dr. Ralph Sacco, President of the American Heart Association and Chairman of Neurology at the University of Miami. "We think any incremental step down is a step in the right direction." If an individual chooses to eat a 12-inch sandwich from Subway, the sandwich would likely exceed the federal government's recommendation.

How Subway has changed from 2009 to 2011 (amount of sodium in milligrams)? Fresh Fit 6-Inch Sweet Onion Chicken Teriyaki: 2009 - 1,200 mg vs. 2011 - 900 mg. 6-Inch Oven Roasted Chicken: 2009 - 830 mg vs. 2011 - 640 mg. 6-Inch Turkey Breast: 2009 - 1,000 mg vs. 2011 - 810 mg.

Non Fresh Fit 6-Inch Chicken Bacon Ranch: 2009 - 1,390 mg vs. 2011 - 1,080 mg. 6-Inch Italian BMT: 2009 - 1,770 mg vs. 2011 - 1,500 mg. 6-Inch Tuna: 2009 - 1,010 mg vs. 2011 - 830 mg.

CASE STUDY Subway the worlds largest fast food chain announced on 18th April ,2011 that they are cutting the amount of salt in its Fresh Fit sandwiches by 28%. It has been seen that the sodium intake around the world is increasing tremendously and since this all lead to hypertension ,i.e the risk for heart disease , it has become more important for Subway to reduce the sodium in sandwiches. Observations revealed that majority of Americans consume no more than 1500 milligrams of salt per day, and even with the cuts, most of of Subway's sandwiches would still account for more than half of a person's recommend daily amount of sodium .

CHANGES FROM 2009 TO 2011 Many changes has been seen from year 2009 to 2011, things are much better now in respect of amount of sodium 6 Inch Oven Roasted Chicken 2009-830 mg vs 2011-640 mg. 6 Inch Chicken Bacon Ranch 2009- 1390 vs 2011 1080 mg. 6-Inch Italian BMT: 2009 - 1,770 mg vs. 2011 - 1,500 mg.