Marketing Plan for

SUBWAY
By Tharanga Siriwardena


Contact Details; Mobile 075 29726992
Email tharangaps@gmail.com


2009
Tharanga Siriwardena
Student ID 104664
8/18/2009
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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.
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.

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.
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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.


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.



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
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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.

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.






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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.

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
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
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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.
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.
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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
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.
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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
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.
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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
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
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"HEALTHY" food. This positioning, communicated via an effective advertising campaign, will serve to
make the SUBWAY chain part of customers everyday consideration set.
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 required to open a SUBWAY franchise of their
own. They find new franchisees to penetrate the market.


Market
penetration


Product
development



Market
development


Diversification
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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.

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.
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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. 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.





Overall cost
leadership



Differentiation



Cost focus


Differentiation
focus
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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 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.

PRICE

Level
Discrimination
Discount

PROMOTION

Advertising
Sales promotion
Personal selling
PRODUCT

Design
Packaging
Display
Brand
PLACE

Warehousing
Transportation
Service
Stockholding
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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 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.


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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 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 .






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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.

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