Professional Documents
Culture Documents
Strategy of
Subway and their impact on Indian
Audience
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DECLARATION:
Date:
Place: Signature:
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AKNOWLEDGEMENT
-Samreen Rahman
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TABLE OF CONTENTS
Sr Topics Page No.
No.
1 Introduction 5
2 Subway 10
3 Marketing Strategy Of 11
Subway
4 Literature Review 17
5 Research Methodology 18
6 SWOT Analysis of subway 22
7 Data Analysis And 27
Interpretation
8 Findings 35
9 Suggestions 36
10 Conclusion 37
11 Bibliography 39
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INTRODUCTION
The marketing research project, titled Subway Marketing Research,
hopes to discover more information regarding the overview of the
innovative marketing strategies and their impact on consumer. The
term marketing covers a lot of different activities all associated with
selling your company’s products and services. Advertising is the most
obvious marketing activity, but so is consumer research, which better
matches your product to consumer wants and needs. Product design,
also, is a form of marketing, as it helps match your company’s products
and services to known customer needs. Marketing encompasses not
only determines consumer need; it also helps create consumer need. It
really begins with understanding your potential consumer.
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Determining how best to reach potential customers to make them
aware of your products and to persuade them to buy them.
Creating marketing campaigns based on your determinations of
the most effective way of reaching customers.
Confirming customer relationships via follow-up sales campaigns
and loyalty programs.
Price
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Product
This represents an item or service designed to satisfy customer needs
Place
It refers to the point of sale. In every industry, catching the eye of the
consumer and making it easy for her to buy it is the main aim of a good
distribution or place strategy. Retailers pay a premium for the right
location. In fact, the mantra of a successful retail business is location,
location, location.
Promotion
It refers to all the activities undertaken to make the product or service
known to the user and trade. This can include advertising, word of
mouth, press reports, incentives, commissions and awards to the trade.
It can also include consumer schemes, direct marketing, contests and
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and public relations. A key consideration should be for the budget
assigned to the marketing mix. Determination of the best mediums
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In many competitors’ analysis, marketers build detailed profiles of each
competitor in the market, focusing especially on their relative
competitive strengths and weaknesses using SWOT analysis. Marketing
managers will examine each competitors cost structure, sources of
profits, resources and competencies, competitive positioning and
product differentiation, degree of vertical integration, historical
responses to industry developments, and other factors. Marketing
management often finds it necessary to invest in research to collect the
data required to perform accurate marketing analysis. Accordingly,
management often conducts market research (alternately marketing
research) to obtain this information.
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Subway is an American fast food restaurant franchise that primarily
sells submarine sandwiches (subs), salads and beverages. It was founded by the
17 year old Fred DeLuca and financed by Peter Buck in 1965 as Pete's Super
Submarines in Bridgeport, Connecticut. The restaurant was renamed Subway two
years later, and a franchise operation began in 1974 with a second restaurant
in Wallingford, Connecticut. It has since expanded to become a global franchise.
Subway serves an array of topping choices, allowing the customer to choose
which toppings they want on their sandwich. The past Subway slogan, "Eat
Fresh", was intended to indicate the fresh ingredients used in their sandwiches.
It is the fastest-growing franchise in the world and, as of June 2021, had 37,540
locations in more than 100 countries and territories. More than half its locations
(21,796 or 58.1%) are in the United States. It also is the largest single-brand
restaurant chain, and the largest restaurant operator, in the world. Its
international headquarters are in Milford, Connecticut.
As of June 2021, Subway has approximately 37,500 locations in 104 countries and
territories, all independently owned. These locations are largely concentrated in
North America, with 21,796 in the United States, 2881 in Canada, and 758 in
Mexico; this is almost as many U.S. locations as McDonald's and Starbucks
combined. Outside North America, the countries with the most locations are
Australia (1215), Brazil (approximately 1643), and the United Kingdom
(approximately 2195).
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MARKETING STRATEGY
OF SUBWAY
Founded in 1965 the brand SUBWAY is the world’s largest submarine sandwich
quick-service restaurant chains in 45,000+ locations around the world. Subway is
known for offering fresh & nutritional MTO (Made-to-order) veggie foods since its
inception. Serving hygienic fast food items with excellent customer services and
expansion of its outlets is what helped the Subway in becoming no. one fast food
chain worldwide. The Indian fast food industry is pegged at INR 20 billion with an
expected annual growth rate of 40%. Several multinationals including
McDonald's, Domino's and Pizza Hut have established their presence in India. A
new entrant is Subway-leading sandwich chain, which, with 16,900 outlets in
Canada and the USA, has surpassed McDonald's branch strength in these two
countries. Worldwide, it has a total of 22,361 restaurants, spread across 78
countries. Subway operates in India through a wholly owned subsidiary, Subway
Systems India (Subway). Subway increased the numbers of outlets in India to 200
by 2005. Subway sells a wide range of vegetarian and non-vegetarian sandwiches,
which consumers can customize.
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Subway Product Strategy:
The product strategy and mix in Subway marketing strategy can be
explained as follows:
Subway offers a variety of products under its marketing mix product
strategy. The first product that Subway offered was a submarine
sandwich and today the product has diversified offerings. It serves in its
restaurants as well as takes up catering services. Its restaurant menu
includes a variety of sandwiches, breakfast items, snacks, sides drinks,
breads. Its catering services include products like Giant subs, Sandwich
platters, Subway to GO! Meals, desserts, sides and drinks. The Giant
subs include 3 foot sub and 6 foot sub. Sandwich platters have a range
of sandwiches like Chicken Ham, Turkey breast, and trademark
sandwiches like Subway club and Veggie Delight. Subway serves baked
items like cookies, doughnuts, muffins, and wraps. For certain countries
Subway has introduced flat breads, Breakfast sandwiches, English
muffins. Subway has also introduced an array of vegetarian products for
Indian market. And also expanded in beverages with ‘Seattle’s best
coffee’.
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Subway Price/Pricing Strategy:
Below is the pricing strategy in Subway marketing strategy:
Subway serves its products for higher price than its competitors. But it serves
food for calorie conscious customers. So, accordingly the price is justified. Subway
also claims to serve better quality food than any of its competitors, thus making
its pricing very obvious. The quantity and size of food that Subway serves is more
than McDonald’s, KFC. Their differential pricing strategy with value pricing is
according to the value generation in terms of quality delivered by the Subway
outlets. Hence, this gives an insight on the marketing mix pricing strategy of
Subway.
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Subway Place & Distribution Strategy:
Following is the distribution strategy of Subway:
Subway mainly operates through franchises and is one of the fastest growing
franchises. Subway has 44,000+ franchises across 112 countries and territories.
They are located in off-beat premium places and it has turned out to be a boon
for the brand. They are located on airports, malls, amusement parks, business
centers, hospitals, military bases, etc. These Subway outlets are located in
premium places where the customers are more calorie conscious and thus would
be willing to pay the higher price.
The catering services are located for Business meetings, office gatherings,
Birthday parties, Holiday gatherings, social gatherings, field trips.
Global sandwich restaurant chain Subway today has launched its 600th restaurant
in India at Bharuch, Gujarat, the company said in a statement.
The new restaurant is spread over an area of 966 square feet and features Metro
Décor, a design format which enhances the restaurant’s appeal by making it
stylish and spacious, the restaurant brand said.
Subway said they are strengthening delivery network by partnering with
prominent food aggregators while working towards introducing mobile ordering
for the Indian market soon.
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Subway Promotion & Advertising Strategy:
The promotional and advertising strategy in the Subway marketing strategy is as
follows:
Subway uses various promotional activities to promote its brand and products.
Subway advertise their products, employ personnel that personally sells, involve
public relations and sales promotions in its marketing mix promotional strategy.
They use their slogan, ‘Eat fresh’ to promote the freshness and high quality food
that they make. Most of their promotions are directed to adults between 18-35,
thus their advertisements are broadcasted majorly during primetime, sports and
on cable networks. Like every other brand, Subway's advertisements are targeted
so that the customers move up the brand from awareness set to consideration set
when it comes to eating in fast food chains. They have been making the
sandwiches in front of their customers to flaunt the quality and freshness of their
ingredients and the way their sandwiches have been crafted by their ‘Subway
Sandwich Artists’.
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To promote the SOTD offer, Subway ® India has rolled out a promotional film
across its social media accounts. The campaign film is a quirky animated take on
the reactions people have when they find their favourite subs featured in the
offer. The upbeat music makes the celebratory feeling more pronounced and the
visual treatment given is akin to that of strip comic books. The campaign is now
live and is running across all digital platforms. Shuchi Monga, Head of Marketing,
Subway®-South Asia commented “We wanted to do something special for our
loyal guests who we would love to see back in the restaurants. Sub of the day
remains our most successful offering till date and hopefully with this exciting mix
of new sandwiches, it would encourage guests to walk in to try them out.”
The new 2020 SOTD menu offers Veg Shammi and Tuna Subs every Monday and
Thursday, Chatpata Chana and Chicken Slice, every Tuesday and Friday, Corn &
Peas and Chicken Kofta, every Wednesday and Saturday Tandoori Tofu and
Chicken Teriyaki, every Sunday.
During the recently concluded Indian Premier League (IPL), Subway ® India had also
introduced ‘Buy two get one free’ limited time offer for guests on order, dine-in
or takeaways, at participating restaurants.
In the wake of the on-going health crisis, Subway® India also ran an innovative
campaign #SubwayIsSafe, to reinforce its existing health and food safety protocols
that are being strictly followed at all restaurants. The measures include hourly
sanitizing and disinfecting drill, face masks and single-use gloves for sandwich
artists and delivery staff, touch-less delivery experience, secure supply chain, daily
temperature screening of staff, to name a few. Accompanied by a ‘Stay Safe’
message, Subway® India also integrated a face mask with their iconic logo to
reiterate the primacy of safety during the on-going COVID-19 pandemic.
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LITERATURE
REVIEW
Subway offers customers a wide selection of sandwiches also called “subs”.
Sandwiches are always freshly baked, and customers can choose if they want
their sandwiches toasted or non-toasted. There are two different sizes of
sandwiches, a six inch. (15cm) and a foot long (30cm). Subway also serves soft
drinks along with the sandwiches. Cookies, chips, coffee and chocolate can be
ordered as accompaniments. In Denmark, there are four types of bread to choose
from, the Italian white bread, the honey oat bread, the parmesan/oregano bread
and the 9-grain wheat. The 9-grain bread is the only bread, which contains animal
product if honey is considered an animal-derived ingredient. Wheat free bread
cannot be found in Danish Subways. All of the breads are milk free except the
parmesan/oregano bread, which contains cheese. (Subway menu 2009) Subway
has a huge sandwich selection. There are more than two million different
sandwich combinations. Healthy and light subs can be enjoyed in Subway
restaurants as well. This fast food chain offers sandwiches, which contain only six
grams of fat or less. These sandwiches became more famous after “a Subway guy”
Jared S. Fogle lost weight of 240 pounds (109 kilos) due to the Subway Diet. On
the Danish menu, customers can find 15 different sandwiches. In the following, a
variety of the menu will be presented. (Subway menu 2009) Customers decide
what they want their sandwiches to include. The filling can be ordered double or
some things can be left out. The Subway chain also has a wide range of dressings
that can be chosen from. The customer can choose between take-away and
enjoying the meal at the restaurant. Any sub can also be turned into a salad.
Salads were added to the menu in 1980.In Denmark, Subway does not have any
special menu for children.
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RESEARCH
METHODOLOGY
Introduction of Research Methodology:
Research is a logical and systematic search for new and useful information on a
particular topic. Research methodology is a systematic way to solve a problem. It
is a science of studying how research is to be carried out. Essentially, the
procedures by which researchers go about their work of describing, explaining
and predicting phenomenon are called research methodology.
Need of Study: The need if study is to know the various marketing strategy in
order to acquire customer through various promotion activities and satisfy their
needs.
Scope of the Study: This study is conducted to find out the views of consumers
and to know about their experience, expectations and their suggestions. The
respondents selected are of mixed group which will give wider difference in
understanding.
Objectives of Study:
1. To analyze customers perception towards the Subway.
2. To find out the experience of existing customer.
3. To find out various expectation from consumers towards Subway.
4. To find out whether all promise from Subway are meeting the expectation
of consumer or not.
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5. To find out whether SUBWAY’s promotional techniques are able to reach
exiting and new customers or not.
6. To analyze whether customer can spends for the value and service that
are provided by the Subway
Sampling Size
The sample size of the study was 50.
The responses were captured from respondents on polar questions
(yes/no) and also 1 question of 5 point Likert scale circulated through
Google Forms.
Sampling Method
The sampling method was Judgment Sampling (only those respondents
were chosen who had knowledge, are very well aware and have been using
of Spotify for a while.)
Data Collection
Data collection is the process to gather information about the relevant
topic research, which is be Data Collection usually takes place early in an
improvement project , and is often formalized through data collection plan
which often contains the following activity:
➢ Collection of Data.
Classification of Data:
The correct information is the key to success. Data information is of two
types: Primary Data and Secondary Data.
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Primary data is information collected by researcher or person himself
where is secondary data is collected by other but utilized or used by
researcher.
Primary Data used for this research: The study is largely based on the
primary data which has been collected through the structured
Questionnaire Method.
Using Primary Data Collection Tool:
Secondary Data used for research: This type of data has already been
collected by someone else and has already passed through statistical
process. This type of data has been collected from the following resources:
Internet
Books
Journal
Thesis.
Magazines etc.
For this study Primary Data and Secondary data both has been used for research
topic.
RESEARCH INSTRUMENTS :
QUESTIONNAIRE: A questionnaire is a research instrument consisting of a
series of questions and other prompts for the purpose of gathering
information from respondents. Although they are often designed for
Statistical Analysis of the responses.
RESEARCH PLAN :
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Research Approach: Survey
Research Instrument: Questionnaire
Method of Contact: Personal
Sample size: 50 respondents
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SWOT ANALYSIS
OF SUBWAY
Swot-analysis is a good method to understand businesses‟ strengths and
weaknesses but also look for opportunities and threats. The main goal of
SWOTanalysis is to recognize the key internal and external factors that are
important for a company to achieve the object. Strengths and weaknesses are
internal factors. Opportunities and threats are external factors. This works best
for a company if it is realistic and specific.
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High Brand Loyalty: It has a high brand recall and following among its customers.
The ones who eat here are high brand loyalists. On the most valuable restaurants
in the world, Subway holds the number third spot being beaten only by
McDonald’s and Starbucks. Its brand value stands at $10.314 billion.
Health benefits: They offer healthy subs sandwich that is preferred and much
better as compared to food items offered by other fast-food chains like
McDonald’s. McDonald’s and KFC rely heavily on oily and fried foods which are
completely opposite to what Subway aims for. The rise of Subway rapidly can also
be accounted because of increasing health related problems by eating junk food
and so customers have started moving towards healthier options. This is probably
the best strength in the SWOT analysis of Subway
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Differentiation: In the world of many different burger and pizza chains, Subway
stands different because it is a customsed sandwich. You can build it the way you
like it with the various ingredients on offer. If we consider
the customization angle, no other fast food brand has achieved the level of
popularity which subway has achieved. This differentiates subway and makes it a
loved brand amongst the various food franchise’s.
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Old-fashioned themed restaurant: Subway has not updated their restaurant’s
styles accordingly to the changing times. This results in poor satisfaction level of
the customers leading to the customers changing their preferences over time.
Many Employees: Subway employees’ job is a low paid and a low skilled job. It
results in low performance and high employee turnover, which increases training
costs and add to overall costs of Subway.
Diversification: Subway has stuck with only one kind of product i.e. Subs but it
needs to diversify into different kinds of healthy options and stay in the
competition. They can utilise their already established customers to change their
eating habits and generate more loyal customers.
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Vegetarian Foods: Mostly Subway offers different kinds of meats but lacks in a
varied menu for vegetarians. It needs to diversify in this front as well.
Bad Reputation: There have been some lawsuits against the brand regarding
stale and unhealthy food that was being served to the customers. This damages
the brand’s trust and makes people reluctant to try them again.
Trend Change: If people start caring about their food (somewhat unhealthy)
more and might want more spice of taste to it they may choose to move to other
restaurants.
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DATA ANALYSIS &
INTERPRETATION
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The data collected from various respondents have to be analyzed for
drawing conclusion. So in this chapter, efforts have been made to analyze
and interpret the collective data towards perception of consumers and to
know about their experience, expectations and their suggestions through
questionnaire.
A brief description of analysis and interpretation given below :
From the above figure it is clear that majority of the respondents that is
62% is 21-30 years of age, 16% is of 15-20 years, 14% is 9-14 years and 8%
is 31-41 years.
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From the above figure it is clear that 72% of the respondents are female and
28% male.
From the above figure it is clear that majority of the respondents that is
76% like subway, 8% does not like subway and 16% is not sure.
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From the above figure it is clear that 40.8% of the respondents visits
subway less than once a month, 20% visits few times a month, 18.4% visits
once a month.
From the above figure it is clear that 50% of the respondents like chicken
breast, 10% veggie delite, 10% roastbeef, 10% meatball, and 8% steqak and
chicken.
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From the above figure it is clear that 72% of the respondents prefers six
inches sub and 28% prefers foot long sub.
From the above figure it is clear that 74% of the respondents likes their
sandwich with sauces and 26% without sauces.
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From the above statement it is clear that 36% of the respondents prefers 9
grain wheat, 26% prefers flat bread, 16% Italian bread, 8% Italian heerbs
and cheese, and 8% Monterey cheddar.
From the above figure it is clear that majority of the respondents that is
42% prefers double chocolate cookie, 40% prefers chocolate chip cookie,
and 12% prefers whitechip macadamia nut cookie.
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From the above figure it is clear that 52% of the respondents agrees that
subway is a healthier option than other foodchain, 42% of them are not
sure, and 6% is against this statement.
From the above figure it is clear that majority of the respondents that is
48% choose subway because of its taste, 16% for its fillings, 14% for
money, 12% for health, and 10% for time.
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From the above figure it is clear that 52% of the respondents prefers to eat
at subway and 48% prefers to eat at home.
From the above figure it is clear that for 44% of the respondents money is
not a concern while ordering food at subway, for 30% may be it is, and for
26% money is a concern.
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From the above graph it is clear that 17(34%) respondents have marked 3
for recommending subway to friends and family members, 15(30%) have
marked 4, 14(28%) have marked 5, 2(4%) have marked 1, 1(2%) has
marked 0 and 1(2%) has marked 2.
From the above graph it is clear that majority of the respondents that is
18(36.7%) have marked 5 and are very much satisfied, 14(28.6%) have
marked 4, 13(26.5%) have marked 3, 2(4.1%) have marked 2, 1(2%) has
marked 1 and 1(2%) has marked 0.
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FINDINGS
Majority of respondents is of age group 21-30.
Majority of the respondents are female.
Majority of them like subway.
Most of the respondents visits subway less than once in a month.
Almost half of the respondents favorite sandwich is chicken breast.
Most of the respondents prefers six inches sub.
Sauces is preferred by most of the respondents in their sandwiches.
9 grain wheat is preferred by most of the respondents.
Double chocolate cookie is liked by most of them.
Majority of them would rather eat at home than at subway.
Majority thinks that subway is healthier than other food chain.
Money is not a concern while ordering food at subway for most of them.
Majority of them would recommend subway to friends and family
members.
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SAMPLE QUESTIONS
Name:
Age:
Gender:
Do you like Subway?
How often do you visit Subway?
What is your favorite sandwich to get at Subway?
what quantity of sub do you usually prefer in subway?
Do you normally get any sauces added to your sandwich?
what kind of bread do you usually prefer while having subway?
which cookie do you prefer the most in subway?
is subway a healthier option than other food chain?
What is your reason for choosing to eat at Subway?
Would you rather eat at Subway, or at home?
Is money a concern to you while you are ordering your food at Subway?
On a scale of 0-5, how likely are you to recommend subway to a friend or family
How satisfied are you with subway?
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SUGGESTIONS
Subway’s sales struggles are continuing, much as in the rest of the over-bloated
restaurant industry. Consumers are faced with so many options for meals away
from home and restaurant operators are seeing their profit margins squeezed so
tightly that many operators are losing money, closing their doors or putting their
units up for sale.
Today’s battle is over capturing a share of diners' stomachs and driving more
diners to order from the restaurant, whether it’s for dine-in, takeaway or delivery.
So before Subway considers developing new brands or making acquisitions, it
should review the current industry landscape and consider these five issues
affecting its business.
Today’s sandwich chains have broadened the menu to include soup, salad and
side items. Often, side options create craveability and can increase the check
average. The typical Subway order includes a sack of chips and a drink. At most
delis, soups, salads and desserts provide strong opportunity to impulsively
upgrade your meal into a more profitable order. Signature sides specially
designed to accompany new sandwich lines, seasonal desserts and perhaps a
whole or sliced pickle can give customers more options at Subway to keep them
from going elsewhere.
Adding beverage options to the mix can be another way to build customer counts.
Beverage-only and snack occasions are great off-peak traffic drivers and can keep
stores busy all day.
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CONCLUSION
Subway, one of the best-known restaurant brands in the world,
makes billions of dollars in sales every year. It’s the world’s largest fast
food chain, with more than 44,000 Subway franchises across the globe
and more than 26,000 domestically. Both of those numbers outstrip the
number-one entry on the 2018 Entrepreneur Franchise 500 list,
McDonald’s.
But like any other business, Subway started small, with a loan between
family friends. If you are considering investing in a Subway franchise or
starting your own business, this story can inspire you to build your own
billion-dollar brand.
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BIBLIOGRAPHY
https://www.entrepreneur.com/article/313130
https://simple.wikipedia.org/wiki/Subway_(restaurant)
https://en.wikipedia.org/wiki/Subway_(restaurant)
https://www.subway.com/en-in
https://www.icmrindia.org/short%20case%20studies/Services%20Marketing/
CLSM023.htm
https://www.oreilly.com/library/view/services-marketing-2nd/
9789332512009/xhtml/bm005.xhtml
https://brandyuva.in/2019/08/marketing-strategies-of-subway.html
https://www.mbaskool.com/marketing-mix/services/16886-subway.html
https://www.socialsamosa.com/2020/02/subway-india-social-media-strategy/
https://brandequity.economictimes.indiatimes.com/news/marketing/subway-
india-new-campaign-promotes-flavours/74615682
https://www.marketing91.com/swot-analysis-subway/
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