...background The History of Subway As early as 1965, Fred DeLuca started to realize his dream of becoming a doctor. Looking for a way to pay for his education, a family friend suggested he open a submarine sandwich shop. friend-Dr loans $ 1,000. Peter Buck-offered to become Fred's partner, reached a business relationship will change the landscape of the fast food industry. Connecticut Bridgeport first store opened in August this year, 1965. Then, they set a goal of 32 stores open for 10 years. Fred quickly learned the basics of doing business, as well as a producer of the importance of excellent service, high quality products and provide excellent customer service, maintaining low operating costs and looking for a great location. These early lessons from around the world continue to serve as the basis of a successful restaurant Subway. SUBWAY, the Franchise By 1974, he owned and operated 16 submarine sandwich shops in Connecticut. Realize they will not achieve the target time of 32 shops, they began franchising, subway ® brand to launch a period of significant growth and continues to this day. A Fresh Future Today, the subway ® brand is the world's largest submarine sandwich chain with more than 37,000 worldwide locations. We have become the main choice of people looking for a quick, nutritious food, the whole family can enjoy. From the beginning, Fred has a clear vision of the future metro ® brand. We continue to grow, for customer service, he guided us warm fresh delicious...
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...EXTERNAL ENVIRONMET ANALYSIS 5 Fast Food industry analysis 5 PESTLE analysis 5 Political and Legal 5 Economical 6 Social 6 Technological 7 Environmental 8 Porter’s Five Forces Framework 8 Threats of new entrants 8 Bargaining Power of Buyers 9 Bargaining power of suppliers 9 Threat of Substitutes 9 Intensity of Rivalry among competitors 10 Key Success Factors in fast food industry 10 Branding 10 Location 11 Speed 11 Efficiency 11 INTERNAL ENVIRONMETS ANALYSIS – THE FIRM 11 Subway - Strengths and Weaknesses Analysis 11 Subway Strengths 12 Subway Weaknesses 12 Subway Analysis 12 Subway - Key resources, capabilities and competencies 13 Subway – Resources tangibles 13 Subway - Intangibles 13 Subway Human Resources 14 Subway – Porter value chain 14 Firm infrastructure 14 Human Resource 14 Technology 14 Inbound logistics 15 Outbound logistics 15 Marketing and Sales 15 Service 15 OVERALL ANALYSIS OF SUBWAY 16 CONCLUSION 18 REFERENCING 19 EXECUTIVE SUMMARY The following report shows an analysis of the real competitive environment into the Australian fast food industry. To understand the microenvironment this is conducted by PESTLE analysis. With this analysis can be found some positive factors for the fast food industry players. Also, is going to be used Porter’s five forces with the objective to research the level of rivalry in the industry of fast food and also barriers that may exist to entry and/or exit...
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...Advantage of franchising – Subway In engaging a franchise business, one will face the pros and cons from the business they operate. There are a lot of benefits prospective franchisees can get from Subway the company provides their franchisees with assistances before and after they open a Subway restaurant. Services provided before opening include an intensive 2-week training, site selection, restaurant design, equipment ordering, and access to product formulas & operational systems. And services provided after opening include, in-depth operations manual, field support, franchise services, research and development, and continuing education (Subway Franchise Training & Investment, Subway Help & Support, n.d.). Apart from the many benefits derived from the cooperation between Subway and the franchisee, there are some more advantages for potential franchisees in buying a franchise business (Franchising 101, 2005), for examples, franchisees can enjoy the advantage of well-established trademark and name recognition of the franchise business. Fred DeLuca, the founder of Subway created the principles which all the ‘Subway’ restaurants needed to follow. High quality, fresh food and customer satisfaction were main things which the franchises needed to keep up. And in 1978, Subway’s success was followed by the opening of its 100th store. The company’s rule in which the bread that was used should be baked in the restaurant itself. This helped increase Subway’s reputation and...
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...Administration Lappeenranta Corporate and Financial Law Riina Liutu SUBWAY MARKET RESEARCH Bachelor‟s Thesis 2010 ABSTRACT Riina Liutu Subway Market Research, 114 pages, 7 appendices Saimaa University of Applied Sciences, Lappeenranta Degree Programme in Business Administration Corporate and Financial Law Bachelor‟s Thesis 2010 Instructor: Sari Jokimies Manager of Degree Program The main goal of this thesis is to find out whether Danish entrepreneurs can become successful in the Danish market as Subway franchisees. Three specific cities, namely Århus, Horsens and Vejle, are looked at in depth. In the thesis, these three cities will represent the Danish market. An evaluation of the most suitable location for a Subway restaurant is made. To reach the above objective, the Subway franchising concept, the market situation, the customers and the competitive situation will be analyzed and evaluated. In order to understand the market in which the franchisee would operate, the size of the market, historic growth, potential growth, trends and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsen s or Vejle. After evaluating the results...
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...Research findings are analyzed with respect to property location, potential competition, and preliminary development plans to define marketing feasibility in terms of potential market share, marketing constraints and opportunities and projected absorption rate and pricing ranges. These feasibility components provide the basis for definitive recommendations on development potential, development strategy and a cost-effective marketing and sales strategy. Marketing feasibility study for your successful project The study of the market is an essential point which is indispensable in the study of any economic feasibility for any proposed project that is because it shows the success or failure of any investment project in the provision of services or products to the largest number of consumers. It also shows the power of a project in continuation where it determines the degree of competition, policies of pricing, among other important matters to any project that adopt the slogan of continuity and success. Therefore, it is obligatory on investors to make a detailed survey for the market with the purpose of obtaining all the needed information that show the success of the project before starting of investment and money investment. Steps of marketing study: First: About the project: It includes the name of the project, its...
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...Paper 1: Compare and Contrast November 12, 2011 McDonald’s vs. Subway – The supersized fast food fight Who would have ever thought that our lives would become so complex and time starved that we would have to choose between two all-beef patties or five dollar foot long. McDonald’s and Subway are some of the first things that come to mind whenever you’re in a rush for work, school or for any other urgent matter and hungry at the same time. They both have a diverse variety of ready-to-go foods that you can bring along in the car, bus or as you make your way through the crowded sidewalks of any urban jungle. The difference between McDonald’s and Subway is not as obvious as people might think. They are totally different in terms of food offering so people with different palettes have to decide whether to frequent the golden arches for their famous hamburgers or visit the establishment that Gerard made famous for its submarine sandwiches. One similarity is their exponential growth in recent years, both in the United States and abroad. While both of them are scrumptious enough to get confused about, what is even more confusing is who will win the battle to become the leader of the quick service restaurant category? Quick service restaurants (QSR’s) are establishments where patrons generally order at a cash register or select items from a food bar and pay before they eat. They typically have limited service, drive-thru windows and can be further defined by being able to serve...
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...Principles of management APPLIED RESEARCH SUBWAY Sandwich shop Michael D. Robinson Ottis Walizer Park University Internet Campus A course paper presented to the School for Arts and Sciences and Distance Learning in partial fulfillment of the requirements for the degree of Baccalaureate Principle of Management Park University May, 2008 TABLE OF CONTENTS Page INTRODUCTION 3 BODY 3 International Business 4 Social, Legal and Ethical Responsibilities 5 General Planning & Strategic Planning 6 Operations Management and Plans 7 Organizing Work and Synergism 8 Organization Structure and Chart 8 Work Team Utilization 9 Staffing 10 Employee and Manager Development 10 Motivating Employees 12 Leadership and Management 13 Managing Conflict and Stress 13 Managing Change 14 Controlling 15 Appraising and Rewarding 16 Operations Control 16 CONCLUSION 17 REFERENCES 18 INTRODUCTION SUBWAYS restaurants were developed by Fred La Duca and Dr. Peter Buck in Bridgeport, Connecticut, back in the summer of 1965. Fred was looking for a way to pay for college and one of his parents closes friends, Dr. Peter Buck, told him to open a sandwich shop. The suggestion came for a sub shop because they were very...
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...Introduction Before introducing the history, mission, and vision, I am enterprising a fast food company, Subway® restaurants in Malaysia. Subway® restaurants are the world's biggest submarine sandwich chain working more units in the US, Canada and Australia than McDonald's does (Dec 16, 2009). Today, there are more Subway restaurants in the world than other restaurant chain, 42996 restaurants in 108 countries, and there are 177 restaurants in Malaysia. “Subway, eat fresh”. (Nov27, 2013) History The founder of Subway, Fred Deluca. In 1965, he had just graduated from high school in Bridgeport, Connecticut, USA. He had dreams of attending college and he was a hard-working, competent and dependable young man, however, the $1.25-per-hour he earned working at the local hardware store would not be enough to finance his education. Discouraged, he decided ask an old friend, Dr. Peter Buck for advice and he gave Fred an idea to open a submarine sandwich shop that he would change his life and lives of people around the world. Dr. Buck explained how the shop could finance his future education. After that, they formed a partnership that would lead to the first SUBWAY® restaurant. The company continued to grow from first day. From that day, they had a goal of opening 32 submarine sandwich shops within 10 years. As Fred and Dr. Buck searched for approaches to develop the business, they settled on a choice that franchising was the way to obtain their objective. So Fred met with his...
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...Strengths: Subway Restaurants is one of the leading submarine sandwich franchise based in the United States and having presence in more than ninety five countries having over 30,000 restaurants all over the world. The growth rate of the company has been increasing year after year. Subway has established itself in the fast food industry having brand recognition all over the world. Due to its great strategies the company has become the leading franchise in the United States in a very short period of time. In the United States alone there are over 23,000 subway restaurants. The company has even positioned itself in places like hospitals, churches, schools and popular retail stores. Subway is known to be companies that offer healthy subs sandwich that are preferred and much better as compared to food items offered by other fast-food chains. The company has partnered with the American Heart Association to add to its image further. The food menu of the Subway reflects the high demand of healthy and fresh food which is fast too.. Weaknesses: The decoration and look of the franchises is said to be old an outdated. Another problem with franchises is that the satisfaction level of the customers is not the same across franchises and also some franchises perform very poor. Service commitment is not consistent from store to store. This can be said to be related to staff as there is not much motivation and the turnover rate of the employees is very high. Opportunities: The company can...
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...SUBWAY® FAQs 1. Who founded the SUBWAY® restaurants? When and where did the first restaurant open? In 1965, SUBWAY® restaurants was founded by 17 year-old high school graduate Fred DeLuca, along with family friend Dr. Peter Buck. The first restaurant opened in Bridgeport, Connecticut, USA in 1965 and was called Pete’s Super Submarines. The first franchised SUBWAY® unit opened in Wallingford, Connecticut. 2. Where is the company headquarters? The company headquarters is located in Milford, Connecticut, with additional regional and country offices, employing about 1,000 people in total. Worldwide, its franchisees provide more than 300,000 jobs in the communities where they are located. 3. Can I buy stock in SUBWAY®? No, DAI is a privately held company and is not traded on any stock exchange. Each franchise is individually owned and operated. 4. Who is Jared? Is he a real person? Jared “The Subway Guy” lost 245 lbs. with his own SUBWAY diet for almost a year: he had a 6 inch SUBWAY® turkey sub for lunch and a foot-long Veggie Delite® sub for dinner.* His story came to our attention after Men’s Health Magazine featured his incredible weight loss success story. Since then, Jared’s story has inspired many others to follow his lead. Today, Jared stays busy as a SUBWAY® spokesperson, traveling throughout the US and Canada, making public appearances and doing interviews for television, radio, newspapers, and magazines. 5. What are the goals of SUBWAY® restaurants for...
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...is a good idea, and a typical retrenchment strategy, but I believe there to be better alternatives. Implementing Subway restaurants inside of Best Buy‟s instead of reducing the size of Best Buy stores by 10% may have the same financial underlining but not the same market impact. Subway is a restaurant chain that has (1) Brand Recognition (2) Good Public Image “healthy”, “fresh”, “Inexpensive” (3) Strong Independent Advertising Campaigns (4) Profitability within a Growing Industry. Subway restaurants promote and advertise timely events such as movies, athletic events, months, holidays, etc. to go along with Subway‟s existing promotional deals such as the “$5 Footlong” sandwich deals. Subway creates daily incentives for customers and provides a multitude of product offerings that allow Subway not to get stagnant or predictable to consumers. “Take your pick; eat a sandwich on a budget and lay out $5 for a 12‟inch submarine, or eat a fresh, healthy one to train like Michael Phelps, lose tons of weight like Jared Fogle (Subway spokesman), or eat a green avocado topped sandwich in commemoration of The Green Lantern motion picture. For any reason, or any cause, there is a Subway sandwich for you.” The possible cross-promotional functions of venturing with a strong commercialized corporation will have a large impact on future revenues in the long run. For example, when Subway promotes a movie in theatres, they hope to create an...
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...Marketing Plan for R&B Exotic Fruit and Salad Bar Proposed by: Rhonda Fairley Submitted to: Professor Elliot Masocha Date: October 19, 2013 Table of Contents Company Description--------------------------------------------------------------------------------------1 Strategic Focus and Plan-----------------------------------------------------------------------------------1 Mission/Vision Statements-----------------------------------------------------------------------1 Goals------------------------------------------------------------------------------------------------2 Core Competency and Sustainable Competitive Advantage--------------------------------2 Situation Analysis------------------------------------------------------------------------------------------3 SWOT analysis------------------------------------------------------------------------------------ Industry Analysis----------------------------------------------------------------------------------4 Competitor Analysis------------------------------------------------------------------------------4 Company Analysis--------------------------------------------------------------------------------5 Customer Analysis--------------------------------------------------------------------------------6 Market-Product Focus-------------------------------------------------------------------------------------6 Marketing and Product Objectives--------------------------------------------------------------6 ...
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...PART A 1.0 ELEMENTS OF THE MARKETING MIX 1.0.1 PRODUCT Subway offered a menu with wide variety meal and better quality fresh product such as pasta, salad, desserts, soup, the chain's flagship sandwich which is the classic BMT, the 7 under 6 menu which featuring seven submarine sandwiches with 6 grams of fat or less, fresh veggies which already boasts lettuce, tomato, red onion and green peppers (Subway, 2012). Subway also brings in a line of new crab-controlled wraps in 2004 and the product itself has only 5grams Net Crabs. Moreover, in the year 2005, a new menu has been added to Subway’s menu that is a delicious fresh toasted sub and the menu still in consumer demand until now. 1.0.2 PRICING The potential element of marketing mix is the price of the company offered because it is direct impact on the company, consumer and economy as well. Subway uses a little higher of upscale pricing than normal subs in the market. Subway offers different pricing strategy with value pricing. But create value products by service in terms of quality. 1.0.3 PLACE This is concerned with activities needed to move the product or service from the seller to the buyer (Lancaster & Reynolds, 2003). Subway use nontraditional places such as supermarkets, airports, convention centers and business center and also another new market development as their major selling location as a franchise. People who in any kind of Subway sales point are on hand to ensure customer’s demands are coordinated...
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...background on the company, analyzing the fast food market, identifying the position/competition/brand, evaluating the services and pricing, and finally considering promotions/marketing. Through the breakdown of these subjects it will be apparent that Subway is not only one of the leading firms in its industry, it will also show that it has outshined companies across the world in marketing management. Provide a description of your product/service and a brief history of the firm that produces your product/service. Subway is a fast food restaurant franchise that specializes in the submarine sandwiches. It is owned and operated by Doctor’s Associates, Inc. Subway’s headquarters is located in Milford, Connecticut. The franchise has five regional offices to oversee its international operations. The regional offices for Europe are located in Amsterdam, regional offices for Australia and New Zealand are located in Brisbane, regional offices for Asia are located in Beirut and Singapore, and regional offices for Latin America are located in Miami, Florida. (China Weekly News, 2011) Currently, Subway franchise has over 39,000 stores in 102 countries and provides over 400,000 jobs and opportunities worldwide. (Subway, n.d) In 2010, Subway overtook McDonald’s as the largest fast food chain in the world. (Jargon, 2011) Entrepreneur Magazine has consistently ranked Subway as the top 500 franchises in the world. (Entrepreur.com, 2012) It...
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...Business Administration Lappeenranta Corporate and Financial Law Riina Liutu SUBWAY MARKET RESEARCH Bachelor‟s Thesis 2010 ABSTRACT Riina Liutu Subway Market Research, 114 pages, 7 appendices Saimaa University of Applied Sciences, Lappeenranta Degree Programme in Business Administration Corporate and Financial Law Bachelor‟s Thesis 2010 Instructor: Sari Jokimies Manager of Degree Program The main goal of this thesis is to find out whether Danish entrepreneurs can become successful in the Danish market as Subway franchisees. Three specific cities, namely Århus, Horsens and Vejle, are looked at in depth. In the thesis, these three cities will represent the Danish market. An evaluation of the most suitable location for a Subway restaurant is made. To reach the above objective, the Subway franchising concept, the market situation, the customers and the competitive situation will be analyzed and evaluated. In order to understand the market in which the franchisee would operate, the size of the market, historic growth, potential growth, trends and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsens or Vejle. After evaluating the results of the questionnaire...
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