Sunteți pe pagina 1din 11

Marketing plan of Subway

1
Table of contents

1. Executive summary. 3
2. SWOT analysis3
3. Marketing objectives... 6
4. Strategies. 7
5. Implementation...10
6. References . 11

2
1. 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.

2. SWOT analysis

However, since marketing is such a complex function , it seems illogical not to carry out
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)
3
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.

4
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
startup 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.

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.

5
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.

3. Marketing objectives

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 childrens 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.

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

6
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.

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 )

Marketing objectives

SUBWAY main marketing objectives are maintain positive, strong growth each quarter and
achieve a steady increase in market penetration. SUBWAY possess 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. Strategies

The ANSOFF matrix

Some of the more common marketing strategies are illustrated by the Ansoff matrix.

Existing Products New

Existing

Markets Market Product


penetration development

New
Market Diversification
development

7
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.

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

8
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. 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.

PORTERS GENERIC STRATEGIES

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

9
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. Implementation

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 an 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

10
meats like flavored soy products, but SUBWAY can take advantage of that problem since
SUBWAY go for healthy and low calorie food product marketing.

6. 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

11

S-ar putea să vă placă și