RUNNING HEAD: CASE OF SUBWAY 1

Case of Subway

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24 July 2020
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Micro analysis of subway

Subway is a large international company that performs a big role in the world’s background.

As a restaurant chain, a lot of micro environmental factors influent it. Those factors are size,

competitors, customers, market, target, finance, labor, and suppliers. All of them influent all

companies in the fast-food business.

SIZE OF SUBWAY

As was mentioned Subway is one of the largest fast-food companies. Like the other

competitors, it has emphasized all over the world. There are more than 25,000 stores in 83

countries on the six continents. There are also employed more than 150,000 people in all

store's offices and headquarters.

COMPETITORS

The subway restaurant chain has owned the top spot for the past twenty years. This fact put

the company first among the same type of companies. Other big competitors like

McDonald's, Burger King, and KFC are struggling to find the best way to customer bags.

They can offer the same products like chips, for example, to undecided customers or

competing customers. They are all trying to find the best way to get new customers and be

better than others. The tunnel manages well to ensure big profits and the pace of expansion.

CUSTOMERS

Fast food restaurants customers pay attention to many different aspects. That is why the

biggest companies offer so many various products. These days customers demand more and

check who can provide them. Because of that there were made vegetarian sandwiches meals

for kids etc. Customers are the most important because they pay for food to run somebody’s

business.
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Marketing strategies of subway

The subway's marketing mix analyzes the brand which includes the 4Ps (product, price,

location, promotion), and explains the subway's marketing strategy. From 2020, many

marketing strategies such as product innovation, marketing investments, customer experience

have contributed to the growth of the brand. Marketing strategy helps companies achieve

their business goals and objectives, and Marketing Mix (4P) is a widely used framework for

defining strategies.

Swot Analysis of Subway Company

Over the past decade, success in the sandwich business has doubled compared to any other

fast food business. Subway offers a very easy entry into the market. Many other restaurants

are also looking for opportunities to start subs on their menus. We can analyze the position of

Subway in the market through the SWOT analysis strategy. SWOT analysis is a planning

strategy, in which we can assess a company based on its internal and external factors. SWOT

can be classified into two parts, Internal Factors: When we assess a business based on its

internal factors, we are comparing its strengths to its weakness. External factors:

Opportunities and threats are useful in assessing your business in a market situation.

Advertising Campaign

Marketers choose colors very carefully for their brands, while at the same time creating brand

logos when talking colors for the brand. For example, dark green indicates health and the

environment. A former tunnel logo was used until 2003 and is still found in many places.

The tunnel uses the advertising slogan Eat Fresh Explain how each sandwich is made on

freshly baked bread, using new ingredients, in front of the customer, by the staff representing

the tunnel sandwich artists, to their exact specification. There are five primary colors to make

the logo look stronger; Green, yellow, blue-red, and orange Like green. The blue color is
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peaceful, calm, and fresh, so the dark green color in the logo is a symbol of the environment

and health. Similarly, while the use of yellow is a vague color, the brightness wavelength is

within the range of the longest that can be detected by the human eye. White means purity,

Therefore, white, dark green are associated with the green and yellow color logos.

Subway targets groups

The wholesale market is often very large and cannot reach all consumers. For this reason, it is

necessary to select a segment of the market, the relevant target group. The first step is market

segmentation, classifying the market as a well-defined target group. The second part will be

the definition of the target group, which includes the specification and selection of the most

attractive market segment. The division is necessary to identify the subgroups of buyers in

the market that share similar needs and show similar buyer behavior. The market can be

divided into four criteria based on geography, population, psychology, and behavior.

(Holanson 2003, 313.)

Unique business model

Subway relies exclusively on franchising, which means you have owner-operators who pay a

certain amount to Subway to authorize the Subway name and business methods. What makes

Subway unique from other fast-food restaurants is that Subway has more flexibility in terms

of location. This is because unlike other fast-food restaurants, there is no real cooking

involved, so no need for a full-size kitchen. All dishes served by Subway are pre-cooked, so

it's all about reheating the food. The only real heat sources needed are a microwave, a toaster

oven, and an oven for baking bread. So since we don't need that much space, we can fit into a

lot of places that a full-size restaurant couldn't accommodate. I even heard about a metro

being built for workers who are building a skyscraper since the workers wouldn't have
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enough time to get food, the metro would stock up for the day and would then be lifted from

the ground to the ground for all construction workers.

The Subway Franchisee Advertising Fund Trust –SFAFT

FAFT is a centralized promotion pool, which directs the advertising and other marketing

activities of Subway, to increase awareness of the brand and its products. (Subway Student

guide National Advertising 2009) SFAFT works independently from Doctor's Associates Inc,

which is the franchisor of the SUBWAY commercial franchise concept. A portion of the

advertising costs that each franchisee must pay following the franchise agreement is placed in

a national advertising budget. SFAFT manages the promotion of each Subway channel

because it provides franchisees with the most effective advertising material. These materials

include point of sale material, public relations promotion, and television advertising. Of

course, each franchisee can advertise individually in the local area, where it is located. If they

hire a local advertising agency, the principles and criteria of SFAFT must be respected.
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REFERENCES

Liutu, R. (2010). Subway Market Research.

Goi, C. L. (2009). A review of marketing mix: 4Ps or more?. International journal of

marketing studies, 1(1), 2.

Gillis, W., & Castrogiovanni, G. J. (2012). The franchising business model: an

entrepreneurial growth alternative. International Entrepreneurship and Management

Journal, 8(1), 75-98.

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