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RETAIL MIX-Subway
RETAIL MIX-Subway
Pricing Strategies
Retail Strategy
Target Market
Market segment(s)
toward which the
retailer plans to focus
its resources and retail
mix
Retail format
Sustainable
Competitive Advantage
RETAIL MIX
The retail mix is a set of
decisions retailers make to
satisfy customer needs and
influence their purchase
decisions.
Elements in the retail mix
includes:
the types of merchandise
and services offered
merchandise pricing
advertising and
promotional programs
store design
merchandise display
assistance to customers
provided by salespeople
convenience of the stores
location
Pricing
Communi
cation
mix
Merchan
dise
Managem
ent
Location
Ret
ail
Mix
Store
design
and
Display
Customer
service
SUBWAY: AN INTRODUCTION
Pricing
Commu
nication
mix
Retail
Mix
Mercha
ndise
Manage
ment
Store
design
and
Display
SUBWAY PRICING
STRATEGIES
Value Pricing:
Subway tries to create value products by service in terms of quality,
ambience, variety, and convenience. By introducing the concept of sub of
the day the company tries to satisfy the needs of its present customers
by creating a sense of curiosity amongst in the sense they would want to
know what sandwich is the sub of the day.
Bundling Strategies:
Subway offers combo offers of a sandwich, potato chips/cookie and a
drink at only Rs. 45 extra for a medium size meal and Rs. 50 for a large
size meal.
Promotional Pricing:
To increase its current consumers base and also to attract new
customers, Subway goes for promotional pricing quite often. Subway has
come up with new campaign where with any 6 inch sub and a medium
beverage the company is offering another 6 inch sub for free. In
September 2011, Subway had introduced a buy one get one free offer on
Mondays.
SUBWAY FINANCIAL
STRATEGIES (INDIA)
Financial Objectives
Higher Number of bills
Higher Billing Amount
Targets
Monthly, weekly & daily targets are allotted
In terms of Sales and COGS (Max 35% of sales)
Pricing
Varies across cities, purely as a function of
logistics
Avg. monthly prices are paid to vendors for veg
Royalty
8% of revenues is paid as royalty fee
4.5% is allocated to marketing funds
THANK YOU