Premium Essay

Subway Marketing

In: Business and Management

Submitted By thaqif89
Words 25058
Pages 101
Saimaa University of Applied Sciences Business Administration Lappeenranta Corporate and Financial Law

Riina Liutu


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, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset Boulevard, are analyzed in...

Similar Documents

Premium Essay

Subway Marketing Plan

...Subway in Japan Outline 2.1 Situation Analysis 2.1.1Target market analysis 2.1.2 Primary target market 2.2 SWOT Analysis 2.2.1Strengths 2.2.2 Weaknesses 2.2.3 Opportunities 2.2.4Threats 2.4 Competition Analysis 2.5 Keys to success 2.6 Macro environment analysis 2.6.1 Economy 2.6.2 Culture 2.6.3 Politics, Rules and Regulations 2.6.4 Technology 2.7 Marketing objectives 2.7.1 Financial objectives 2.8 Positioning strategy 2.9 Marketing mix strategies 2.9.1 Product strategy 2.9.2 Pricing strategy 2.9.3 Promotion strategy 2.9.4 Distribution strategy 2.1 Situation Analysis 2.1.1Target market analysis According to Hitt, Ireland and Hoskisson, market targeting plays a vital role in a firm’s effort to penetrate a new market (81). In its operation, Subways provides a wide range of fast-food products such as salads and sandwiches. Within the Japanese market, Subways intends to position itself as a healthy fast-food firm. The firm targets individual customers who have a high level of disposable income. The firm targets customers who have appreciated consumption of fast-foods. In its internationalization process, the management team conducts a comprehensive market analysis in an effort to determine the feasibility of the success. Some of the elements which the firm considers include political and economic stability. 2.1.2 Primary target market In its operation, Subways have appreciated the importance of......

Words: 3094 - Pages: 13

Premium Essay

Subway Restaurant Marketing Analysis and Research

...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......

Words: 4377 - Pages: 18

Premium Essay

Marketing Research of Subway

...[pic] Marketing Research of Subway Executive Summary This paper aims at conducting marketing research of Subway with a purpose of attaining its strategic objectives comprehensively. This company is an American world’s largest fast food chain, primarily selling submarine sandwiches and salads, that operates on the franchising principle. Marketing research is “the function linking the consumer, customer and public to the marketer through information – information used: to identify and define marketing opportunities and problems; to generate, refine and evaluate marketing actions; to monitor marketing performance; and to improve understanding of the marketing process” (Kotler, 2007). The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior. Also for performing marketing activity successfully the company should carry out situation analysis, use marketing concepts (segmentation, targeting and positioning) to analyze the needs of their clients and then make decisions to assure those needs, better than the competition. Situation analysis based on the external factors observation (PESTEL analysis), customers’, rivals’, distributors’ and shareholders’ behaviour have also been discussed. SWOT-analysis was used in the completing of this assignment as one of the analytical methods of strategic analysis. BCG matrix as one of marketing strategies and integrated mix part (seven...

Words: 4145 - Pages: 17

Premium Essay

Subway Service

...TOPIC : SUBWAY Submitted to: Prof. BRIJESH MBA Dept Submitted by: Punith R Pokale 1PT12MBA58 CONTENT * INTRODUCTION * FLOWER OF SERVICE FOR SUBWAY * HARD AND SOFT SERVICE STANDARDS * CHANNELS OF SERVICE DELIVERY * COMMUNICATION MIX * SERVICE BLUEPRINT * SERVICE QUALITY GAP MODEL AND QUALITY DIMENSIONS * PRICING STRATEGIES * CRITICAL ANALYSIS INTRODUCTION SUBWAY has come a long way in India since it opened its first restaurant in India. Young Indians have warmed to the image of the American chain, and made it one of their favourite places to swarm to, and hang out in. Subway has very successfully entered the Indian market and sustained its growth by developing a unique menu to appeal to the Indian taste. If you are a foreigner visiting India, you might be interested in indulging in some of the Indianite treats at Subway -- for example, the legendary paneertikka sandwich. Also, as an Indian you might be interested in some of Subway’s Continental treats like the Italian B.M.T. Subway offers a wide variety of submarine sandwiches and salads on its menu. It offers an assortment of vegetarian and non-vegetarian fares. They also cater to the health-conscious customers by providing them with 97% fat free subs. Subway offers a separate specialty menu for breakfast. Apart......

Words: 2060 - Pages: 9

Premium Essay

Strategic Financial Management

...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......

Words: 2026 - Pages: 9

Premium Essay


...------------------------------------------------- Marketing Feasibility Study The purpose of the Marketing Feasibility Study is to determine the suitability of this property for profitable development, and to define optimal products and amenities in accordance with projected market demand, and to project sales absorption and annual revenues from development of this property. The methodology entails examination of the site's market potential followed by research on the real estate consumer market and on competitive real estate products. 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......

Words: 6825 - Pages: 28

Premium Essay

Fast Food Industry Australia

...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......

Words: 4428 - Pages: 18

Free Essay

Principles of Management Research-Subways

...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......

Words: 4380 - Pages: 18

Free Essay

Public Relations

...Crisis Mode We are all involved in public relations (PR). Practicing positive self-promotion is a daily activity for most, and comes as a sort of side effect of human interaction. This constant effort to control and maintain an image can prove to be very taxing. Then, on top of that, crises can arise which demand extra attention and PR ‘magic.’ Even at the small scale of the individual this can prove stressful, and mistakes are often made. Imagine how stressful it can be for a corporation, a grocery chain, a political figure, or cultural figure. Recently, Volkswagen (VW) came clean (please, excuse the pun here) about cheating on emissions test for their new diesel vehicles. This development is bad for the company’s image for at least two reasons. One, it shines a negative light on their internal culture and values because the issue was born from within the corporation. Two, VW’s reputation as a reliable, trustworthy brand has suffered some tarnishing as a large amount of people purchased cars under the false pretense of the tests. Luckily, VW ​ quickly responded​ the situation: they immediately removed Chief Officer Martin to Winterkorn and announced an internal investigation. Also, they were ​ honest​ the media: the with American Operations Chief announced, “We screwed up” (Hemus). It may take a while, but VW will seemingly be able to recover. Grocery and health store chain Whole Foods was charged by New York City’s Department of Consumer Affairs (DCA)......

Words: 998 - Pages: 4

Premium Essay

Strategic Managemen 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...

Words: 6499 - Pages: 26

Free Essay

Regression Model for State Suicide Rate in the U.S.

...Subway is the world’s biggest sandwich chain. It overtook McDonald’s as America’s biggest fast-food restaurant by number of outlets in 2002, and achieved the same feat on a global scale in 2010. 1. Marketing Advertising Campaign * Subway targets more of the younger generation aiming at nutrition consciousness, these would include ‘empty nest 1 and 2’ (singles and newly married people) and ‘full nest 1 and full nest 2’ (family with young children and that with grownups still living with parents). * Subway also focuses on hard sell approach in terms of the functional benefits and attributes of the menu being offered while the soft sell approach is inclined towards the nutritional value gained and often gets to be criticized for the hefty amounts spent for ad campaigns and promotions. * Jared Fogle “The Subway Guy”, first came to media attention in 1999 when Men’s Health magazine did a story on how he became obese by eating junk food and not exercising and then proceeded to lose 245 pounds by eating Subway sandwiches. Fogle is now the face of Subway marketing. He tours around different schools and promotes healthy eating to children. * Mark Blackwell is Subway restaurants weight loss hero in Australia. Blackwell was inspired by Jared Fogle to develop a diet of his own design that included Subway sandwiches. * In the year 2002, the outlets’ low fat sandwiches were promoted showing Mark Blackwell having lost 42 kilograms after a year of......

Words: 1949 - Pages: 8

Premium Essay

Mmgp Final Busi 520

...imbedded in the marketing management team of a company. In this project, Subway’s marketing strategy is thoroughly researched to reveal why the firm is thriving among fast food chains around the world. This is done through researching the 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......

Words: 12534 - Pages: 51

Premium Essay

Buisness Plan

...Subway Franchise Business Plan ¬¬¬SUBWAY FRANCHISE GULFWAY Shopping Center Franchise owner Back in 1965, Fred DeLuca set out to fulfill his dream of becoming a medical doctor. He needed a way to pay for his education. A friend by the name of DR. Peter. Buck offered a suggestion of opening a submarine sandwich shop. Fred was able to obtain a loan of a 1,000 dollars and Fred’s Friend Peter. Buck offered to become business partners with him. After that they were able to start on an incredible journey that would revitalize the fast food market. The first store they were able to open was in Bridgeport, Connecticut in August, 1965. Then, after words they set a goal of having 32 stores opened in 10 years. Fred soon learned the basic ins and outs of running his fast food chain. Fred was able to operate his business with low costs and high profit while providing excellent service and high quality of food. These lessons would later serve him well in the Subway empire he was building. Now the Subway brand is the world’s largest sandwich shop which now consists of over 37,000 shops worldwide. Type of ownership This will be a LLC company and Franchised owned. I have picked this route because the company is already established and has done well on the market. I will be a LLC as well because if for some unseen reason in the future my business is sued I will not lose all my assets as well as the business. There were many reasons for me......

Words: 1623 - Pages: 7

Free Essay

Made to Stick

...Complimentary Sample Summary Made To Stick Why Some Ideas Survive and Others Die THE SUMMARY Some stories stick with us forever. Long after we hear them, we could easily re-tell them. A lot of Aesop’s fables are like that: The Boy Who Cried Wolf, The Goose that Laid the Golden Egg, etc. We are all familiar with the opposite experience—reading an article that we can’t remember five minutes after we have finished, or listening to a lecture that leaves our brain as quickly as it enters. They are the opposite of “sticky.” Why do some ideas succeed while others fail? How do we nurture our ideas so they’ll succeed in the world? Many of us struggle with how to communicate ideas effectively, how to get our ideas to make a difference. This book is about how to do just that. In researching successful, “sticky” stories, six principles emerged. Sticky ideas shared certain traits that made them more likely to succeed. This doesn’t mean that there is a formula that guarantees success, but it does mean it is possible to greatly improve our odds. The six principles are: About the Authors Chip Heath is a professor of organizational behavior in the Graduate School of Business at Stanford University. Dan Heath is a consultant to the Policy Programs at the Aspen Institute. A former researcher at Harvard Business School, he is a co-founder of Thinkwell, an innovative newmedia textbook company. Published by Leaders Book Summaries. 872 New Britton Rd, Carol Stream, IL 60188 No part of......

Words: 6548 - Pages: 27

Premium Essay


...Introduction Subway is an American restaurant franchise that primarily sells submarine sandwiches (subs) and salads. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with 35,302 restaurants in 98 countries and territories as of September 10, 2011. Doctor's Associates, owners of Subway, was founded by Fred De Luca and Peter Buck in 1966, when they opened the second Subway restaurant in New York. The name comes from the fact that Buck holds a PhD. Despite Subway marketing itself as a health-conscious restaurant, neither Subway nor Doctor's Associates are affiliated with nor endorsed by any medical organizations or doctors. SUBWAY in INDIA Operating from its main office located in Milford, Connecticut, the quick service restaurant chain has five regional centers to support its expanding international operations. The Asian centre has been growing at a rapid pace and India as a country occupies a pivotal spot on this expansion map. Subway Systems India Pvt Ltd opened its very first restaurant in 2001 in New Delhi and has swiftly grown its operations to 228 operating restaurants in 26 cities across India. Although it is a global brand with a menu that is relatively the same around the world, SUBWAY restaurant's takes great pride in honoring and respecting local traditions and food preferences and has earned a reputation for offering a healthier alternative to traditionally fatty and greasy fast food. SUBWAY......

Words: 2853 - Pages: 12