Professional Documents
Culture Documents
TABLE OF
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INTRODUCTION: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Error: Reference source
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SEGMENTATION: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Error: Reference source
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SWOT Analysis: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Error: Reference source
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TARGET MARKET: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Error: Reference source
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BRAND POSITION: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Error: Reference source
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BRAND DIFFERENTIATION: . . . . . . . . . . . . . . . . . . . . . . . Error: Reference source not
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PRICING: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Error: Reference source
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RECOMMENDATIONS: . . . . . . . . . . . . . . . . . . . . . . . . . . . Error: Reference source not
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CONCLUSION: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Error: Reference source
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It was the Bridgeport, Conn, where the subway had its first
opening in the year 1965 in the mid summer by Fred De Luca who
was a 17 year old young man with his family friend Dr. Peter
Buck. The main investment which was made was thousand
dollars by Dr. Peter Buck as Mr. Fred De Luca was unable to pay
his tuition at his college time and it was the suggestion and loan
given to him to open a sandwich shop so that Mr. Fred De Luca
can pay his college tuition, the restaurant was named as the
Pete’s Super Submarine and also known as the Doctors Associates
inc. At present there are 32,996 Franchises in 91 countries with
more than 1, 50,000 employees working for the subway. Today it
is holding more than US 9.05 billion dollar sales worldwide.
Subway is having its major head offices located in Connecticut
and Milford. The other five regional offices located are in the
continents of Asia, Australia and North America having their
franchises located in Amsterdam, Australia, New Zealand and
Netherlands are being operated through the Brisbane and
Australia. For the gulf the operation is done from Lebanon and
Beirut. For the America the operations are provided from the
Florida and Miami. And for the Asian continent the operation is
done from Singapore and India. The main products which the
Once there was a time where the BMT sandwiches was popular up
on all the sandwiches, BMT stands for the Brooklyn Manhattan
Transit, but later it was pronounced as Biggest Meatiest Tastiest
sandwiches. It contains the combination of ham, salami and
pepperoni. This variety was popularly consumed as the cold
sandwich in the United Kingdom. Mainly adults from the age 18 to
34 were targeted; the food items considered was healthy and
supervised under hygienic condition and according to the
people’s specifications like their likes and dislikes in the product
menu. Subway is now making around 2 million different
sandwiches available for different customers around the globe.
The main competitors for the subway are the KFC, Mc Donald’s,
Pizza Hut, Burger King, Hardee’s, Popeye’s and many other
sandwich shops. From the past few years it is noted that most of
the employees at the companies prefer to eat the small breakfast
SEGMENTATION:
There are different attributes and factors which are under the
influence of target market for the services which the subway
offers to its market. Here many variables influence the market
segmentation for “sub of the day”. Coming to the segmentation
strategy it is essential to know what the customer is considering
from the services provided by the subway. The segmentation
strategies can be described more effectively in many different
variables which results in the marketing segmentation, there are
SWOT Analysis:
Strengths:
Subway made its presence over ninety one countries with 32,996
stores which shows its potential growth in the market. Subway is
in the list of largest chain restaurants in the world. It offers a wide
range of sandwiches. According to subway (Subway FAQ's) there
are more than two million subways sandwich combinations are
available. It gained customer repetition as it supplies a nutrition
food, preparation of the sandwich is just in front of the customer
to choose his own selection of breads, sauces and toppings. It
supports the franchise right from beginning for training,
advertising, development of product, cooperates in purchasing
and run time support. Subway offers submarine sandwiches and
salads, daily fresh made breads; it even concentrates on religious
beliefs, everywhere in the world the same menu items, with the
taste is provided, which made its own brand recognition. As the
subway shop fits with small area simple kitchens, offering a
reasonably comfortable price for single and combo deals. Subway
with its pricing strategy it reached customer expectations giving
them low price fast food sandwiches satisfying their individualism
to eat what they wish.
Weakness:
Opportunities:
Threats:
The youngsters who all with the above or some of the above
qualities and who expects and alternative food culture rather than
the trash culture, sub of the day is the best alternative to those
who don’t want to be compromise for their individuality and
values. Subway offers varied food chains, which is a specification
of target audience healthy food list subway at the same time
taking care of consumer’s preference when offering regular sub
sandwiches, salads, wraps, snacks, desserts with low fat options,
with these more than two million verities of sandwich options.
Further to attract these target audience subway for its sub of the
day is priced £1.99, attracted the adults to treat them self,
subway research towards the eating habits of the target audience
BRAND POSITION:
Providing a healthy fast food chain for a healthier and hygienic
food is a brand value strategy. Subways are well advantaged and
positioned throughout the strengths and weakness and also the
threats that cause the effects to its strategy. We can discuss
about the strengths, weakness, threats and different
opportunities available. Coming to strengths the main strength of
subway is its size and number of stores and its channels located
across the globe. The listing of the healthy items includes the
fresh and fast food items that reflect the menu, use of distribution
channels for the growth of its shops. Maintaining a good relation
with the American heart association and getting worldwide
recognitions due to its healthy supply of food and offering to all
ages. User friendly menu listings and preferences serving, low
cost setup for the franchisee, and a instant startup of the
franchisee under a specified training. The weaknesses that are
derived from the strengths are that some of the franchisee is not
happy with response they are getting from the main office. There
is a deviation in the services provided from store to store. The
revenue generation is less and the payment given to the
employee is increasing spontaneously. The opportunities obtained
through these are in rapid growth of the global business.
Improving the customer related services and also expanding the
BRAND DIFFERENTIATION:
There is makeover in a new positioning of the subway for its
marketing place, mainly in distinguishing from the competitor’s
value. The differentiation makes the subway to look at its
customers’ needs. Building a superior value of position makes the
identification more competitive. The differentiation comes for the
product like providing no oily food, fresh tomatoes, mayo’s and
other items. Providing a healthy fast food at lunch and dinner
timing reduces the effect of increasing the weight. This made the
people to sign more franchises and the people’s attraction
towards the health increased eventually. Positioning depends on
some of the functional like rectifying the problem, making the
customers to get profit and also by the symbolic function where
the enhancement of the self image, identifying their social
fulfillment. “Subway differentiates itself in term of healthy
sandwiches as an alternative to fast food” (Kotler, 2006)
Subway launched its new brand “sub of the day” in which there is
different price £1.99. This offers the cheapest meal of the day to
PRICING:
There are mainly five pricing strategies, they are creaming pricing
or skimming pricing, penetration pricing, market oriented pricing,
psychological pricing and target pricing. Subway to sub of the day
product, it chosen the psychological pricing strategy, this makes
appositive thinking in customer mind for the product it sells, the
sub of the day for £1.99 instead of £2. Even though it is only 1
pen difference which won’t make a big difference to the customer
pocket, but it impacts the customer perception that he is
spending less than £2. This pricing strategy fetched subway a
competitive edge in its industry making McDonalds t rebrand one
of its products ‘deli sandwich’ to ‘deli of the day’ with reduced
price of £1.99. The effect of subway with ‘sub of the day’, on
Burger King and Hardees even made them to introduce the sub
sandwich and refreshed their menu items. It is clearly understood
that subway pricing strategy made its competitors think and
restructure their pricing strategy and menu cards. Subway with
low price daily special ‘sub of the day’ it gives an opportunity to
its new customers to do a trail then make to attract and try again
and again, likewise subway improving its customer repetition,
with this sub way improved its product promotion and which in
turn helped in building successful brand promotion as well as
RECOMMENDATIONS:
Subway for its product ‘sub of the day’, in QSR (quick Service
Restaurant) industry the important factor to success is
management. Therefore to get the estimated success rate bottom
line employees to top level management even need to have
regular trainings to manage any aspects of the store. Well trained
employees will give confidence for doing the competitive edge in
the industry. It needs to maintain the customer expectations to
his previewed value. Subway should have more clear market
CONCLUSION:
REFERENCES:
Facts and History. (n.d.). Retrieved June 6th, 2010, from http://www.subway.co.uk:
http://www.subway.co.uk/business/franchise/facts_and_history.aspx
gregson, A. (2009, June 26). Pricing strategies for small business. Retrieved June
8th, 2010, from http://www.scribd.com:
http://www.scribd.com/doc/16820831/Pricing-Strategies-for-Small-Business
Key Sucesses Factors of the Top Global Franchises. (2009). Retrieved June 7th,
2010, from http://www.franchisedirect.com:
http://www.franchisedirect.com/top100globalfranchises/the2009report/158/767/
Mccarty, M. (n.d.). Fast Food Market Forecast - The Subway Example of Strategic
Product Positioning. Retrieved June 5th, 2010, from http://ezinearticles.com:
http://ezinearticles.com/?Fast-Food-Market-Forecast---The-Subway-Example-of-
Strategic-Product-Positioning&id=735770
Melago, P. (2007, Feb 14th). Which Sub Shop Makes a Better Sandwich. Retrieved
June 7th, 2010, from http://www.associatedcontent.com:
http://www.associatedcontent.com/article/143046/quiznos_vs_subway_which_sub_s
hop_makes.html
patelh. (2004, November 23rd). subway sandwich chain franchise. Retrieved June
8th, 2010, from http://www.studyzones.com:
http://www.studyzones.com/uploadzone/Coursework/22885x1179/Subway-
sandwich-chain-FRANCHISE
Subway on a roll; Who were we targeting? (2008, Jan 30th). Retrieved June 2010,
6th, from http://www.tunaweb.comS:
http://www.tunaweb.com/meas08/casestudy/Subway%20-%20Brand
%20Development.pdf