CUSTOMER RELATION MANAGEMENT

Customer Analysis

Subway

Submitted to:
Sir Maaz Zafar

Submitted by:
Muhammad Faisal Riaz
Razi Ul Hassan
Imran Yousaf
Farhan Rafiq
Muhammad Ahmed
Ali Haider

This report is a customer analysis for Subway Restaurant, an American franchise that has
become one of the fastest growing franchise in the world.
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Company logo and slogan

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1. Introduction

Subway (Restaurant) is a fast-food American franchise owned by Dr. Associates, Inc. and
operates globally in 96 outlets. Subway was founded by Peter Buck and Fred DeLuca, with
his first restaurant being created in Bridgeport, Connecticut, United States of America in
1965 (Subway Website). The franchise has grown since then and operates in 96 countries and
has 34,166 restaurants around the world (metro web site). The franchise that focuses mainly
on selling submarine sandwiches, pizzas and personal salads is the second largest franchise
restaurant in the world after Yum! Trademarks that currently have 37,000 points; And most
single-brand franchise brand throughout the world (Hoovers 2011, the most interesting facts,
2011). subway is currently owned by Dr. Associates, Inc. and manages sales through regional
offices in Amsterdam, Brisbane in Australia, Beirut in Lebanon, Singapore and India, among
other places. It is one of the fastest growing franchises.

In an increasingly competitive market, it is very important that the organization develops

proactive actions to increase its competitive edge (Butler, 2006). Among the most effective
ways to improve competitive advantage is by effective marketing strategies that effectively
indicate the need for a marketing plan.

Consumer Relation Management delivers the improvements for the Subway restaurant by
developing the techniques customer effective with collaborating with the independent
purchasing cooperative Inc to track the customers.

Company has the peculiarity of being the fastest growing franchise in terms of the world
over. Subway operates mainly through franchising and is one of the fastest growing
franchisees. 44,000+ Subway has concessions in 112 countries and territories. They find
themselves in luxurious places out of place and have proven to be boom for the brand. They
found in airports, malls, amusement parks, malls, hospitals, military bases, etc. These outlets
are in premium locations where customers are more aware of calories and therefore be
willing to pay the higher price. The European regional franchise office is in Amsterdam, New
Zealand and Australia in Brisbane, Asian offices are in Singapore, Lebanon and Beirut, while
the Latin American regional office is in Miami. The company is a 100% franchise
organization based all the properties and maintained independent restaurants.
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Mission Statement

"Delight every customer so they want to tell their friends – with great value through fresh,
delicious, made-to-order sandwiches, and an exceptional experience."

Factors used to develop consumer relation in any country:

Social/Cultural Factors includes the following

A) Social class:

It has medium-high-end market segments always targeted and therefore their sandwiches
do not cost a bit.

B) Culture:

Although the culture of their metropolitan background is different but adopt Pakistani
culture as well. In India they Subway only serve vegetable sandwich because they do not
eat meat while in Pakistan they serve sandwiches with meat beef, chicken etc.

C) Faith:

It not only adopts Pakistani culture but also religion. Halal foods offered to customers, which
is the symbol adopted Islam in Pakistan.

D) Customer Feedback and suggestions:

Subway always welcome customer feedback and suggestions to make its consumers happy and
to bring changes and improvements.

The competitors of Subway:

Direct competition
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 McDonalds

 AFC

 KFC

 Dixy Chicken

 Fried Chicks

 Pizza Hut

 Papas Allis

Indirect Competition

Are Like Salt & Pepper, Kabana, Village, Bundu Khan Etc.

Subway has a head-on competition with McDonalds and KFC

Product or service

Subway offers a variety of products under its product mix marketing strategy with the
approach to CRM needs for more success in customer satisfaction. The first product offered
was a Subway Sandwich Submarine and today has diversified product offerings. Its
restaurant menu includes a variety of sandwiches, snacks, side drinks, breads. The
underground serves as baked biscuits. For some countries it has introduced buns, breakfast
sandwiches, English muffins. Subway also introduced a series of vegetarian products for the
Indian market.

Subway Sandwich is providing high quality, low-fat, cholesterol and healthy at a reasonable
price. They feel very proud because their product is healthier than other fast food sectors.
Also, they also make sandwich in front of the customer after the customer chooses topping,
food and bread. You can prove that the way your sandwich is made is fresh and clean.

Breads Sauces Meat Salads

Italian Thousand Island Turkey All meat
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Whole wheat Chili sauce Steak and cheese All veggies

Parmesan Mayonnaise Tuna Includes all
sauces
Sesame Sweet honey Oven roasted
chicken
Ranch Bar-b-que chicken
Olive oil Chicken tikka
Ketchup Peri Peri
Southwest sauce Fajita

Promotions

Subway uses various promotional activities to promote their brand and products. Subway
advertise their products, hiring personal sales personnel to engage public relations and
promote sales in the marketing strategy mix marketing. They use their slogan, "eat fresh"
to promote the freshness and high quality of the foods they make. Most of the promotions
are aimed at adults between the ages of 18 and 35, so your ads are primarily broadcast
over cable, sport, and internet. Like any other brand, ads are aimed at customers increase
awareness of the brand for consideration when it comes to eating at fast food chains.
They made sandwiches in front of customers to show the quality and freshness of her
ingredients and how their sandwiches were prepared for her "Subway Sandwich Artists".

Price

Subway serves their products at a higher price than their competitors. But it serves food
for attentive calorie customers. So, therefore, the price is justified. Subway also aims to
serve better food than any of its competitors, so their prices are obvious. The number and
size of food serving the subway is more than McDonald, KFC. Differential price strategy
with valuation is based on value generation in terms of quality delivered by points.

Although four piece’s are the very much explanation of the marketing but Subway is so
dependent on these four to keys to emotionally connect with their customer to increase
the response of the CRM.
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2. Hierarchy

Chief Executive:

He or she is the highest in the rank of ladder of corporate executive. Making decisions of
franchise and passing it from the top to bottom.
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Functional Manager:

The next person in the hierarchy is the functional. He or she is responsible for all the
related functions to the project and to make sure they get completed at any cost.

Manager of the Project manager:

This is the same as the functional manager ranks. They are supposed to supervise the
project manager under them.

Project Manager:

They can be temporary or permanent depending on the kind of the nature. Permanent
manager has the higher rank in the project where as temporary manger positions can be
change according the job.

Staff:

Under the functional manager are the staff of the branch. This section can be divided into
2 parts, namely, permanent and temporary. The temporary staffs obviously belong to the
lower rank among them.

After all these top management levels the point comes to the restaurant management
functions. Planning, Organizing, Staffing, Directing and Controlling.

3. Consumer Analysis

The main objective of the subway market is young people between 16 and 39 segments of the
middle and high-class market. Single, married and married with small children who are
healthier and prefer the healthiest foods for fattening fast food meals.
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Providing catering services to your customer, Subway is segmented according to market

behaviour of customers. Subway knew elegantly hectic and busy, fresh catering, healthy and
fast food life needed in everyday life

Subway also do special promotion on occasions like Christmas and New Year Gift Offer
year, etc. to buy their food. This shows that client segments based on his client's behaviour.

Subway identified the reference market as "young asking to know their minds." Young
people who want to have food nutrition instead of pizzas, burgers and fries. Subway Define
Your Sub Target Date is between the ages of 18-39, according to one of the five statements
mentioned: young people who believe that they will not be influenced by other perspectives,
the public wants to be received by others How are young people who love to go for a life
with the novelty, challenge and change, who would like to try different varieties of food, the
target of maintaining life-giving elements, young people who do not care about Their future
and wants to enlighten the present life and the target that they want to be informed, organized
in life.

Beyond attracting these target prices your articles at a reasonable price in comparison, but
with greater value.

Subway understand that these customers in the reference market have uneven eating habits
and are embarrassed by the variety of food choices, these customers are aiming to choose
what they want and how they want it structured, they have lofty expectations with low
loyalty. Subway sandwiches offered to their customers according to their specifications, for
the customer according to their choice. Subway offers its customers the opportunity to
"point-to-order", so that new customers will not be confused about the selection. It's exactly
in the opposite direction to provide service from competitors such as KFC, McDonald,
Burger King and others.

4. Consumer Relation Management

After consumer analysis shedding light on the CRM which helps the Subway to manage the
notion of the seller and the customer relation. Subway is all about the CRM of exchange.
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More over subway uses the CRM as the prime factor to satisfy the customer needs. To make
it subway use some of its customised techniques to stay ahead of its competitors. Subway
uses cost effective manner approach to its loyal customer. Subways IT challenges are
somewhat are different form its retailers because they own every franchise all over the world
to maintain the standardization of the submarine sandwich. Another wonderful thing was
launched in the 2006 for making the CRM strong was the cash card which is compulsory for
every subway branch but couldn’t make it possible for all the franchise, but some of the
North American branches are running this sharing the cost of deployment.

It was the time of the 1990s gift card were the famous. Lipp said he, “expects to see a sharp
increase in not just the quantity of retail usage, but the sophistication of them as well.”
Subway techniques are creative to its thoughts, that All Yahoo employees associated with the
program have special coding that signals that they get 20 percent more benefits than other
customers. "When they go online and load up another $20, they get a 20 percent [bonus], so
they’ll get $24. That’s subsidized in a deal between Yahoo and Tully’s."

Independent purchasing cooperative (IPC) uses CRM to track all the customer e-mails, calls,
inquires and reply. This includes the time and handled by. This entire process is documented
to track it all.

9. Financial information

The initial underground costs, including construction and equipment rental costs, between
$ 116,200 and $ 262,850, according to the company.

The opening of a McDonald restaurant requires up to $ 2.3 million in startup costs alone,
in comparison. But subway restaurants generate less revenue than McDonald's units.

On average, a subway restaurant generated $ 490,000 per year sales, compared to $ 2,5
million in average annual income for McDonald's restaurants, according to QSR
magazine.

Total investment: $ 116,600 - $ 263,150

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Excess fee: $ 15,000

Course fee: 8%

Term Franchise contract: 20 years, renewable

Incentives for veterans: they are exempt from voting rights if they open in a military /
governmental position; 50% discount on license fee if you open a non-governmental
position but receive government funds

Position analysis and competitors

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Advertising and promotions

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