The total Indian fast food industry is Rs 20bn with an expected annual growth rate of 40%.

With this
only we can say that Indians are spending money or amount towards the Fast Foods.

Subway sells a wide range of products both in Vegetarian and Non-Vegetarian which the customers
can customize. The counters for to the both are kept different. The orders were prepared infront of the
customers.

The customers can even customize their meal. The customer interaction involved at all the stages of
the food preparation in the subway centers is high, that starts from choosing the bread to the meat, the
sauces, spices, and so on.

Subway adopted the franchising strategy route to penetrate into the market. They justified to the space
and divided into two sections – dine-in and takeaway counters.

Coming to the pricing, the prices range from Rs 40 to Rs 200 depending on the recipe the customer
chooses 10-15% higher than its nearest competitor.

There was no correct information provided on the company’s premium pricing strategy.

Mr. Arvind Singhal, MD of retail-management consultancy firm, KSA Technopak, commented, “as
such, there is no negative perception about the sandwiches in India. However, the premium pricing
strategy for the product may have to be altered, keeping the price conscious Indian consumer in
mind.”

The pricing strategy was totally different and charged high depending on the recipe the customer
chooses, as the order was prepared infront of the customer the charge will be some-what high. As they
sell the products more and more in urban areas where the spending is more for luxury and comfort
and the people were not more conscious as in other areas about the price. But if the competitor follow
the same strategy that is preparing the product infront of the customer and offer at the same price what
they initially offered, then the Subway will have to look at this and have to come down. Instead of that
it would better that if they can keep the price nearer to its competitor to with stand the competition.
With this they can also gain the market share ore easily and can penetrate more into the market.