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Table of Contents

1.0 Executive Summary2
1.1 Introduction..2
2.0 Situation Analysis...3
2.1 Competitive Analysis...3
2.2 SWOT Analysis4-6
2.3 P.E.S.T. Analysis7.
2.4 Five Forces Analysis ..8
3.0 Marketing Strategy9.
3.1 Mission..10.
3.2 Core Values and Philosophy..10
3.3 Marketing Objectives.10
4.0 Target Markets11-12
4.1 Targeting12
4.2 Positioning.12
4.3 Strategies13
4.3.1 Ansoff Strategies13-14.
4.3.2 Porters Generic Strategies..15
5.0 Marketing Mix16-17
5.1 Branding Strategy..17
6.0 Recent and Future changes in Marketing Environment at SUBWAY 18
7.0 Appendix..19


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SUBWAY
1.0 Executive Summary
SUBWAY was started 43 years ago in the summer of 1965 an enterprising 17 years old
young man, Fred Deluca . Subway is the market leader in the sub and sandwich shops
offering a healthier alternative to traditional fast foods. Subways annual sales exceeded $
6.3 billion, while countless awards and accolades have been bestowed its chain over the
past 43 years . Subway has more than 28,000 units worldwide whilst its rapid growth has
attracted many investments and brought it many competitors such as KFC and Burger
king . Recent initiatives attract customers beyond Subway traditionally health conscious
consumers should increase the companys share of the fast food market.
Subway's marketing program addresses health, fresh, custom-made sandwiches
expectations of consumers through a number of approaches The Subway concept of serving
fresh made sandwiches on fresh baked bread, made right in front of customers, the way
they like it has proven to be a winning marketing strategy in Europe. Their customers
have really respond to the high level of service that Subway restaurants are famous for.
They have also become popular with health conscious customers in Europe who are
searching for higher quality fast food options.
Subways low initial investment and ability to fit into unusual spaces are other reasons for
their success. Without the need for heavy equipments for cooking a Subway restaurant is
the perfect business for the small spaces and tight real estate of U.K. Their regional office
makes the franchise start process simple and easy. Europe is currently wide open for
development. As their brand awareness grows in Europe, more and more people are
becoming aware of Subway as a great tasting lunch option and also as a great way to start
their own business within their community.
Estimates that its goal of opening another 1600 locations in the U.K and having a total of
30,000 restaurants worldwide, including 4,000 locations in Europe by 2010 are right on
track.







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1.1 Introduction
According to SUBWAYs future market expansion strategies they have planned to open
1600 locations in the U.K by 2010. In this marketing plan I am going to discuss and explain
what are the SUBWAY existing strengths, weaknesses, opportunities, threats, their
marketing strategies, marketing mix , branding strategies and their recent and future
changes which are effect their marketing success as a company. And also , as a marketer ,I
discuss what are the changes they can do to minimize deviations from their original
marketing objectives .
In this plan I use my marketing knowledge to evaluate SUBWAY marketing strategies and
, will be discussing their potential growth from my point of view as a marketer. For this I
use some marketing theories and concepts for explain my ideas. First I use small marketing
environment audit using SWOT analysis, P.E.S.T analysis and five forces analysis to
discuss SUBWAY marketing environment. Then I will discuss subway marketing
strategies using Ansoff metrics and Porter s generic strategies while considering their
marketing mix and finally will go for recent and future changes.

















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2.0 Situation Analysis
A situation analysis is an honest valuation of the opportunities and potential problems
facing a prospective or existing company, through analysis a deeper understanding of an
industry , competitor and possible optioned can be examined.
Subway is the market leader in the sub and sandwich shops offering a healthier alternative
to traditional fast foods. Subways annual sales exceeded $ 6.3 billion, while countless
awards and accolades have been bestowed its chain over the past 43 years . Subway has
more than 28,000 units worldwide whilst its rapid growth has attracted many investments
and brought it many competitors such as KFC and Burger king . Recent initiatives attract
customers beyond Subway traditionally health conscious consumers should increase the
companys share of the fast food market.
Being part of a highly competitive and dynamic market, Subway faces a strategic
marketing challenge as to what specific marketing mix to use in order to sustain a
diffencial advantage while maintaining sales growth and above all profitability.
Subway effectively competes with burger chains and others that are in the fast casual
segment of the market. Including healthier meals into his menu and giving much attention
to obesity and diabetes have supported consumers choice for subway. However, subway has
not been satisfied thus far, instead, more intensified efforts have been made to improve
business during the dinner hour. Additional menu options have also been added to answer
competitors trends and to place more focus on the childrens segment.
SWOT analysis can be helpful to highlight subways 1) Internal strength and weaknesses
along with 2) the external opportunities and threats. In the past few years, sandwich
market has gained incredible popularity in the U.K culture.











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2.1 Competitive Analysis
The purpose of analyzing competitors is to try and asses what they will do. This will
enable the organization to respond accordingly. Competitive advantage is about relative
competitive position competitors are sometimes used as benchmarks. (CIM, 2005)
Subway is not without competitive pressures, chief competitors include KFC,
McDonalds, Pizza hut, Greggs and Eat.KFC and Pizza hut are the world largest with
33,000 restaurants in over 100 countries. Four of the companys highly recognizable brands
KFC, Pizza Hut, Long John Silvas and Taco Bell, are global leaders of the Mexican,
Chicken, Pizza, Quick service sea food categories.
McDonalds corporation is the worlds largest food survives relating chain with 31,000 fast
food restaurants in 119 countries. The company also operates restaurants under the brand
names the Boston Market and Chipotle Mexican Grill. McDonalds operates largely in
the U.K and is headquartered in Oak Brook, Illinois employing 447,000 people.


















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2.2 SWOT Analysis
However, since marketing is such a complex function , it seems illogical not to carry out a
pretty through situation analysis at least once a year at the beginning of the planning cycle
, in the same way that an annual financial audit is carried out ( McDonald, 2002 )
One useful way of doing audit is in the form of a number of SWOT analyses. A SWOT is a
summary of the audit under the headings, internal strengths and weakness as they relate
to external opportunities and threats (McDonald, 2002)
Subway sandwich shops are well positioned to leverage their strength and address
reasonable threats, weaknesses and opportunities. The table below highlights these
Strengths, Weaknesses, Opportunities and Threats.








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STRENTHS
Size and number of stores and channels.
Menu reflects demand for fresh, healthy
and fast.
Use of nontraditional channels.
Partnering with the American Health
Association.
Worldwide brand recognition.
Customizable menu offerings.
Low franchisee start up cost.
Franchisee training is structured, brief and
designed to assure rapid start up and
success.


WEAKNESSES

Dcor is outdated.
Some franchisees are
unhappy.
Service delivery is
consistent from store to
store.
Employee turnover is
high.
No control over
franchise situation in
given market area.

OPPORTUNITIES
Continue to grow global business.
Update dcor to encourage more drive in
business.
Improve customer service model.
Continue to expand channel opportunities
to include event wagons.
Improve franchisee relations.
Experiment with drive-through business.
Expand packaged dessert offerings.
Continue to revise and refresh menu
offerings.
Develop more partnerships with more
producers and toy manufactures to
promote new movie releases through
childrens menu packaging and co-branding
opportunities.

THREATS
Franchisee unrest or
litigation.
Food contamination
(Spinach).
Competition.
Interest costs.
Economic downturn.
Sabotage.
Law suits.




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Strengths
SUBWAY main identifiable strength is their size and number of stores and channels. This
gives better advantage for SUBWAY when it competes with other competitors. When we
consider their product line, menu reflects demand for fresh, healthy and fast .And they
have better customizable menu offerings as well. SUBWAY use nontraditional channels to
develop their markets. SUBWAY product is mainly targeting for healthy product, they
facilitate positioning their products by partnering with the American health association.
SUBWAY has better world wide brand recognition which will be discussed later part of this
plan deeply. Low franchisee start up cost is another strength they have when penetrating
the market. On the other hand their Franchisee training is structured, brief and designed
to assure rapid start up and success. These are the main strength which SUBWAY can use
their marketing developments.

Weaknesses
According to marketing point of view their main weaknesses are outdated dcor in their
franchise outlets . It reduces their competitive advantages in market. Some of their
franchisees are unhappy. And their service delivery is consistent from store to store. Other
main weakness of SUBWAY is their employee turnover is comparatively very high.
SUBWAY doesnt have control over franchisee situation in given market area. For better
marketing growth SUBWAY should critically evaluate these weaknesses and make them
manageable under some certain level.
.









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Opportunities
SUBWAY has number of opportunities become stronger in the sandwiches market rather
than competitors. SUBWAY is continuing to grow global business. They can update dcor to
encourage more drive in business. Better opportunity to improve customer service model.
They can continue to expand channel opportunities to include event wagons, improve
franchisee relations and expand packaged dessert offerings. SUBWAY can experiment with
drive through business like McDonald already doing. To minimize competition SUBWAY
should continue revise and refresh menu offerings. Develop more partnerships with more
producers and toy manufactures to promote new movie releases through childrens menu
packaging and co-branding opportunities.


Threats
Main threats we can identify for SUBWAY might be the food contaminations which are
more popular recently (Ex . Spinach). Franchisee unrest or litigation, emerging competition
are the other threats which SUBWAY face. Like every other companies SUBWAY face the
economic downturn threat these days. Sabotage and law suits are the other main threats
for SUWAY.


There are varieties of ways of classifying the forces at work in the macro environment.
PEST analysis and Porter five forces analysis are two of them.








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2.3 P.E.S.T. Analysis
Below table explain the P.E.S.T factors which are affecting to SUBWAY.

Political Factors
Health and safety guidelines
Labeling and GM foods
Animal rights campaigns

Economic Factors
Low set up costs
Franchising facilities set
ups
Support from major
suppliers
Growing market
Perceived value for money
Increasing disposable
income

Social Factors
Busy life styles
Healthy eating and obesity
Increased vegetarianism
Homogeneity
Social activities

Technological Factors
Investments in
technological innovations
Computer ordering(Till
system)




Political Factors
Main political factors which are affecting to SUBWAY marketing are health and safety
guidelines of the government, Labeling of genetically modified foods and animal rights
campaigns specially organize by some environment friendly groups.
Economic Factors
Low set up cost is a good advantage for SUBWAY. Franchising facilities setup, Support
from major suppliers, Growing market for healthy foods, Perceived value for money and
increasing disposable income are the main economic factors SUBWAY face.


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Social Factors
Busy life style of the new generation is very good advantage for any kind of fast food
industry. Awareness of healthy eating and obesity, increasing vegetarianism, homogeneity
and social activities regarding fast and healthy foods are the main social factors which
effect to SUBWAY marketing environment.

Technological Factors
Investments in technological innovations and computer orderings are the technological
factors.
2.4 Five forces analysis
According to Porters five forces analysis followings are the main forces and their effects for
SUBWAY marketing environment.

Threat of
entrants
Threat of
substitutes

Power of
suppliers

Power of
buyers
Competitive
rivalry

1.Setting up

2.Product
differentiation

1.Convenience
shops

2.Mid range
restaurants

3.Pre cooked food

4.Other social
activities

5.Health food
shops

1.Farming
industry

2.Worldwide
market of
suppliers

3.Alliances

1.Consumers

2.Little
brand
loyalty

1.New entrants
likely

2.Price wars

3.Overall demand is
increasing


Threat of Entrants


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Major threats of entrants are setting up of the entrance and differentiation of products
which is important for market penetration and market development.
Threat of Substitutes
There are lots of convenient shops, mid range restaurants and health food shops are there
in the market. So customers can have much kind of alternatives to select their option.
SUBWAY marketing strategy should cover these every kind of competition as well. Pre
cooked foods which customers can easily consume are the other threat. Different kind of
other social activities regarding fast food industry also could be a threat f for SUBWAY
market.
Power of Suppliers
We can consider as power of suppliers for SUBWAY market as farming industry, worldwide
market of suppliers and alliances.
Power of Buyers
Any kind of industry power of buyers is specially consumers. Some kind of little brand
loyalty also can be considered as power of buyers.
Competitive Rivalry
Mainly we can consider as competitor rivalry for SUBWAY are new entrants likely , price
wars and increasing of overall demand.

3.0 Marketing Strategy
Marketing strategies reflects the companys best opinion as to how it can most
profitably apply its skills and resources to the market place. It is invertible broad in scope.
Marketing strategies are the means by which a company achieves its marketing
objectives and are usually concerned with the four P s. (McDonald, 2003)
Subway's marketing program addresses health, fresh, custom-made sandwiches
expectations of consumers through a number of approaches. The most notable were the
television commercials featuring Jared. These commercials emphasize the healthy aspects
of a Subway sandwich by highlighting the 245 pounds Jared lost by eating a Subway
sandwich diet. Subway also markets through a national sponsorship in events such as
American Heart Association Heart Walks and local events such as triathlons, and
children's sports teams.


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The Subway example represents marketing and product strategies that are classic
examples of focusing on market demand, consumer trends, product leveraging, and
innovation. The marketing strategies of creating clear brand recognition, brand and product
association, and market demands, have strategically positioned Subway to advance market
share into the near future. These marketing strategies are also repeatable fundamental
marketing strategies transcending the fast food market.
The Subway Franchisee Advertising Fund Trust or SFAFT governs advertising. SFAFT
functions independently of Doctors Associates Inc., which is the franchisor of the SUBWAY
business franchise concept, and its affiliates.SFAFT manages funds contributed by
SUBWAY franchisees. It was established to create advertising and marketing programs
that are designed to build restaurant sales and promote the systems image.
SUBWAY has a customer care team, dedicated specialists who are in constant
communication with consumers.
Success factors for fast food franchisees will include products and marketing targeted to
healthier menu selections, brand consistency, low start-up costs, franchisee support, and
consumer convenience. Subway represents a poignant example of a fast food franchisee
ready for success in the future fast food market. Their strategies transcend the fast food
market and apply to many other markets and products
Branded fast food continuing to move into other nontraditional venues such as colleges,
airports, military bases, hospitals, and amusement centers. Part of their marketing
strategy, Subway includes identifying which venues and retail chains would be most
amenable to quick-service brands.

3.1 Mission
Mission is an organizations rationale for excising at all and/or its long term strategic
direction and/or its values ; its basic function in terms of the products and services the
organization produces for its clients (CIM , 2005 )
Subway Mission
To provide the tools and knowledge to allow entrepreneurs to successfully complete
in the QSR industry worldwide by consistently offering value to consumers through
providing great fasting food that is good for them and made the way they like it (Subway ,
2005 )
3.2 Core values and Philosophy


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SUBWAY is always committed to customer satisfaction through offering high quality food
with exceptional service and good value. They always maintain their quality of customer
service every franchisee outlet. They take great pride in serving each other, customers and
communities. They seek continuous improvement in that entire do. SUBWAY Value a sense
of urgency and emphasize an innovative, entrepreneurial approach to business because
especially they are in fast food industry. They expect fairness and mutual respect in all
activities. They know their success depends upon the initiative they take individually and
their ability to work as a team.

3.3 Marketing objectives
SUBWAY main marketing objectives are maintain positive , strong growth each quarter
and achieve a steady increase in market penetration. SUBWAY posses good information
about the market and knows a great deal about the common attributes of the most prized
customer. This information will be leveraged to better understand who is served, what their
specific needs are, and how SUBWAY can better communicate with them through
marketing. SUBWAY use marketing segmentation, targeting and positioning strategies to
develop their market.
4.0 Target Markets
The process of breaking down the total market for a product or services into distinct
sub groups or segments , where each segment might represent a distinct target market to
be reached with a distinctive marketing mix. A market segment consists of a group of
customers or consumers who share the same or similar needs (McDonald, 2002)
Segmentation Methods
1. Demographics (Age, Life cycle , Gender , Income , Occupation, Religion ,
Education , Race ,Nationality )
2. Geographic ( Location , Regional , Urban , Density , Climate )
3. Psychographic (Social class , Life style , Personality )
4. Behavioral (Occasions , Benefit sought , User stages , Usage rate , Loyalty
status )
SUBWAY Segmentations
Age group (18 39) Kids meals
Income level (c 1) worldwide locations


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Healthy Life style
Urban Areas (South east etc)
Halal sandwiches
Subway is always improving their geographic segmentation from their early development
ages. By studying Subways geographical expansion we can identify what kind of
segmentation they include their marketing strategies.
Where did the SUBWAY chain

open its first international location? It wasnt in Canada,
Mexico or somewhere close to the United States. It wasnt in England, Australia or
somewhere that English is the official language. It wasnt in Germany, France or
somewhere else where many different types of sandwiches are popular. Its not where you
might think.
The SUBWAY chain tested international waters when it opened its first unit in the small
exotic Middle Eastern island nation of Bahrain in December of 1984. In a relatively short
time, the SUBWAY chain started to appear in such distant lands as Iceland, Poland,
Nicaragua and China.
The SUBWAY chain, the worlds largest submarine sandwich franchise, goes to tremendous
lengths to bring great taste and fresh ingredients to consumers in the farthest reaches of
the globe. With more than 2,400 locations outside the U.S. and Canada, the SUBWAY
chain is a leader in fast-food international development.
In upcoming months, the plans for SUBWAY restaurants in countries such as Belize,
Luxembourg, Thailand Romania and Hungary are on the drawing board. Despite the
diversity of cultures.
We can see SUBWAY target some kind of cultural and religious segments while keeping
their original values maintaining. Wherever SUBWAY restaurants are located, the core
menu stays relatively the samewith the exception of some cultural and religious
variations. World travelers can expect the same high quality ingredients regardless of what
nation they are visiting.
On the other hand SUBWAY always target different kind of age segments, through their
existing product lines and product developments, specially improving kids meals.

4.1 Targeting


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Marketers do targeting for segmented markets. After the market has been
segmented into its segments according to their segmenting strategies he will select a
segment or series of segments and
Target it /them. Resources and effort will be targeted at the first is the single segment
with a single product. Secondly the marketer could ignore the differences in the segments,
and choose to aim a single product at all segments. Finally marketer will target a variety of
different segments with a series of differentiated products. The advantage of target
marketing is marketing effort can be focused on the market segment(s) that offer the
greatest potential for the company to achieve its objectives (Lancaster & Reynolds,
2003)
Year 2003SUBWAY improves the nutritional content of its Kids Pak meal by switching the
carbonated soft drink to a juice box and changing from a high calorie cookie to fruit roll up
fruit snack that is high in vitamin C. Many of the Kids Pak toys are now designed to inspire
physical activity. The web site includes a resource for parents striving to manage their
childrens diet and exercise levels. Parents and children can also ask Jared Fogle about how
he lost his weight or how they can incorporate fun exercises into their everyday lives.
SUBWAY restaurants begin to distribute 'Jareds Steps to Healthier Kids' information cards
in efforts to educate customers about preventing childhood obesity
The increase in sales of the sandwiches has been a result of decreases in consumer interest
in hamburgers and fries and increases in demand for healthier options. Sales of sandwiches
are growing 15 percent annually, outpacing the 3 percent sales growth rate for burgers and
steaks.
SUBWAY target virgin international markets using their strong brand name.

4.2 Positioning
Positioning is all about Perception . The term Positioning reefers to the consumers
perception of a product or service in relation to its competitors. Positioning relates to the
task of ensuring that a companys market offerings occupy a predetermined place in
selected target markets, relative to competition in that market (Lancaster &
Reynolds, 2003)
SUBWAY positioning their products by continuing to build the brand on the "freshness"
platform. The SUBWAY chain is expanding its universe of potential customers as a place
for "TASTY" and "HEALTHY" food. This positioning, communicated via an effective
advertising campaign, will serve to make the SUBWAY chain part of customers everyday
consideration set.


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SUBWAY use lots of strategies to position their kids meals. In year 2004 Jared Fogle and
WNBA superstar Lisa Leslie kick off the Jared and Friends School Tour in NYC, stressing
the importance of healthy eating and exercise. The in-school curriculum, 'One Body! One
Life! Eat Fresh! Get Fit!' is developed by the SUBWAY brand and Weekly Reader. The
curriculum is intended to help teachers of fourth, fifth and sixth grade students and instill
proper eating and fitness values
Develop more partnerships with movie producers and toy manufacturers to promote new
movie releases through children's menu packaging and co-branding opportunities

4.3 Strategies
We can use strategic tools to explain marketing strategies of the company.

4.3.1 THE ANSOFF MATRIX
Some of the more common marketing strategies are illustrated by the Ansoff matrix.
Existing Products New
Existing

Markets


New

Market Penetration
Market penetration is when a firm increases its share of a market in which it already
operates.
SUBWAY always focuses their marketing strategies to penetrate the markets which they
are already operating. They have one operating department, it is Franchise sales, this
group is dedicated to finding those individuals who possess the entrepreneurial spirit


Market
penetration


Product
development



Market
development


Diversification


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required to open a SUBWAY franchise of their own. They find new franchisees to penetrate
the market.
Other way they use existing franchisees to penetrate the market. For this purpose also they
have separate department, Profit Building & Local Marketing This department helps
franchisees in local markets with initiatives designed to increase sales at their restaurants.

Market Development
This strategy involves finding new markets for the products a firm already makes.
SUBWAY has developed a team specifying for market development. New Business
Development This team works closely with potential franchisees who wish to open a
SUBWAY restaurant in non-traditional locations--such as in a supermarket, movie theatre
or gas station
Subway restaurant sites are adaptable to any type of location. The simplicity of the Subway
Restaurant operation and the ability to fit into spaces that competitors cannot enables
them to open restaurants in many unusual and non-traditional sites, such as:
Airports
amusement parks
business centers
coliseums and stadiums
colleges and universities
convenience stores
convention centers
hospitals
military bases
recreational facilities
elementary and secondary schools
supermarkets
travel centers/truck stops

Diversification
Diversification involves the firm going into new markets which are totally different from
those targeted by the existing activities of the firm. SUBWAY is going for real estate
markets, mobile phone markets and some financial markets to reduce their business risk
through diversification. They have a team called Subway Real Estate Corp the men and
women of this division assist franchisees with real estate leasing and negotiations.


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Product Development
Improvement of products over time to maintain their competitive position. Product
development is one of the main marketing strategies of SUBWAY, specially introducing
improved healthier menus. SUBWAY has a Research & Development team this department
is responsible for developing and test marketing the food that we serve and the equipment
that is used.IN 2005 SUBWAY; their low-fat sub choices are expanded to 8 Subs less than 6
Grams of Fat. In 2007 The SUBWAY restaurant chain launches its Fresh Fit and Fresh Fit
for Kids meals, which feature healthier-for-you side options such as apple slices, plump
raisins, low-fat milk, bottled water and Dannon yogurt. The meals are developed to fit into
the American Heart Associations approach to a healthy lifestyle. All trans fats are removed
from SUBWAYs core menu items. Menu choices now include higher fiber Wheat and Honey
Oat Breads, personal size Pizzas, Black Forest ham, and The Feast Double Stacked sub.

4.3.2 PORTERS GENERIC STRATEGIES
Competitive Advantage
Low cot Higher cost

Narrow
Competitive scope

Broad


Porters Generic strategies
Focus means the company consolidates its efforts on a small range of products in a market
niche.Differenciation means to establish a unique sales proposition or feature that
competition cannot match. Cost leadership means the lowest price in the market.
SUBWAY menu offered a wide variety including salads, pasta, dinners, soups and desserts.
They have steps taken to improve business during dinner and late night sales and
marketing to children. Their nutrition factors- fresh and so much healthier than others.


Overall
cost
leadership



Differentiation



Cost focus


Differentiation
focus


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More value for money improving quality will
increase the value of the product. They have
differential pricing strategy with value
pricing. But create value products by service in
terms of quality, ambience, variety and
convenience.



5.0 Marketing Mix
Marketing mix consist of four Ps. Product, Price, Place and Promotion.








Available marketing tools to target customers (Lancaster &
Reynolds, 2003)
Product
The marketing mix combines many factors, but customers view marketing effort in more
tangible terms of the product (or service). (Lancaster & Reynolds, 2003)
SUBWAY menu offered a wide variety including salads, pasta, dinners, soups and desserts.
They offer wider menu and better quality fresh products .In 1996 The chain's flagship
sandwich, the classic BMT, is first introduced.IN 1997 The 7 under 6
menu, featuring seven submarine sandwiches with 6 grams of fat or
less, is first introduced! In 2001 Another fresh veggies, the cucumber is
added to the SUBWAY menu, which already boasts lettuce, tomato, red
PRICE

Level
Discrimination
Discount

PROMOTION

Advertising
Sales promotion
Personal selling
PRODUCT

Design
Packaging
Display
Brand
PLACE

Warehousing
Transportation
Service
Stockholding


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onion and green peppers. 2004 The SUBWAY chain introduces a line of new crab-controlled
wraps. The wrap itself, has only 5 grams Net Crabs. In 2005 Delicious, fresh toasted subs
are added to the SUBWAY menu,
Quality of food
Subway prides them on always having the freshest ingredients available for sub, and they
hide nothing from the customer. All their products are made on the spot while the customer
chooses what toppings he/she wants on the sub. Unlike most fast food franchises, nothing is
deep-fried or frozen.
Price
Price is a potent element of the marketing mix because of its direct impact on customers,
the company and the economy. SUBWAY use upscale pricing little higher than normal subs
in the market. They offer differential pricing strategy with value pricing. But create value
products by service in terms of quality.

Place
This is concerned with activities needed to move the product or service from the seller to
the buyer. (Lancaster & Reynolds, 2003)
SUBWAY target is open another 1600 locations in U.K by 2010.SUBWAY use their major
selling locations as franchisee shops and their another new market development places in
nontraditional places like Airports ,amusement parks ,business centers ,coliseums and
stadiums ,colleges and universities ,convenience stores ,convention centers ,hospitals,
military bases ,recreational facilities ,elementary and secondary schools ,supermarkets and
travel centers/truck stops. People who in any kind of SUBWAY sales point are on hand to
ensure customers needs are matched with the right product and to explain the different
options available.
And SUBWAY do market research on the location preferences and they close poor and
predatory franchisees regarding customer satisfaction. They upscale to stripped down shops
to quasi deli restaurants. At Subway, you dont wait for your order. You order it at the
counter and watch it being made by the highly efficient team of staff. When the product is
ready, you pay and take it with you. No bills, no queues, no hassles.
Promotion
Promotion covers four areas. Advertising, Personal selling, Public relations and Sales
promotions. The target for the SUBWAY chain's media buying is adults aged 18-49, in
order to maximize our buying power with a skew toward programming that delivers better


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to the younger 18-34 audience. The goal of the chain's current advertising campaign is to
increase the brand presence in the consumers "consideration set"--that is, which fast-food
restaurants consumers consider when deciding where to eat.
The majority of the advertising is done via national TV during prime time, sports and late
programming on major broadcast networks and cable networks. Additional advertising is
done via local markets on TV, radio and in print. SUBWAY restaurants also promote
advertising messages and specials in-store with point-of-purchase material such as posters,
menu translates, etc.

5.1 Branding Strategy
SUBWAY brand position as a very healthy fast food chain providing healthier and fresher
food brand value. Positioned between a stripped down version of subs and full theme
restaurant. Service is more like a fast food style but in terms of food quality, quantity,
presentation and fresh, puts it closer to theme restaurant.

6.0 Recent and Future Changes in Marketing Environment at
SUBWAY
Although, SUBWAY has achieved better marketing position and brand image in the fast
food industry, they face much kind of challenges in marketing environment. Specially
most of the recent challenges are been created by economic down turn in the world.
Economic downturn is being affected all of the markets in the world as well as fast food
market. So each every marketer are finding ways, how to survive in this environment and
what strategies have to use to develop their own market activities. SUBWAY also badly
affected from this crisis environment.
On the other hand there is a emerging competition for subway product line. Especially for
their health conscious products. Because, all the other fast food competitors are introducing
and improving their health conscious product line , which SUBWAY use to maintain
leadership. Being part of a highly competitive and dynamic market, Subway faces a
strategic marketing challenge as to what specific marketing mix to use in order to sustain a
diffencial advantage while maintaining sales growth and above all profitability.
Subway effectively competes with burger chains and others that are in the fast casual
segment of the market. Including healthier meals into his menu and giving much attention
to obesity and diabetes have supported consumers choice for subway. However, subway has
not been satisfied thus far, instead, more intensified efforts have been made to improve


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business during the dinner hour. Additional menu options have also been added to answer
competitors trends and to place more focus on the childrens segment.
Like all kind of companies SUBWAY also facing the rapidly advancing of technologies.
SUBWAY also introduces and gets use of new technological innovations to expand and
penetrate their markets. When they designing dcor for franchisees they widely use new
technological designing tools.
Food contaminations are increasing in recent years and SUBWAY marketing badly effect
from it. In future it will be more due to lots of pollutants in environment. On the other hand
genetically modified food rejections also will be a big challenge for all kind of food produces
specially for fast food producers. And environment friendly groups always make problems
for meat and in future it will accelerate , so SUBWAY should have think about alternatives
for meats like flavored soy products, but SUBWAY can take advantage of that problem
since SUBWAY go for healthy and low calorie food product marketing .



7.0 Appendix
References


McDonald, M. (2003) Marketing Plans, 5 th ed.., Kent: Butterworth-Heinemann
publications.

CIM (2005) Marketing Environment, 4 th ed.., London: BPP professional education.

Swift, I. (2005) Marketing, 4 th ed.., London: Holder & Stoughton.

Lancaster, G and Reynolds, P (2003) Marketing made simple, 2 nd ed.., Oxford: Made
simple.


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Subway (2009) Mission and values, web page accessed on 02/08/2009 from
http;//www.subway.co.uk.

European Franchising (2009) Subway, webpage accessed on 27/07/2009 from
http;//www.europeanfranchising.net

Subway (2009) student educator, webpage accessed 20/07/2009 from
http;//www.subway.co.uk