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Subway marketing report essay

Executive Summary

Subway in Financial Yr 2013-2014 has witness 1 . 32 billion revenue nationwide market. Since Subway has its own ambitious programs to expand its organization and sit on bigger business, it is crucial pertaining to Subway to propose a sustainable long term plan to increase its home market share by simply examining the external and internal environment in which cool product is to be released. This newspaper is aiming to analyse industry environment by making use of SWOT examination and check out the possibilities of the new product with advice regarding the components and promoting mix.

Introduction

The brand Subway is owned by Subway Systems Australia Pty Limited, which functions as one of the global franchisors and assists with Australian cafe targeting the domestic marketing (Subway 2014). Originated in the, Subway moved into the Australian market in 1988. Today, Quotes has become one of many largest markets outside of the U. S i9000. There are above 1, three hundred stores national wide (Subway 2014). Subway has made a lot of attempts in enhancing the public focus of overall health diet.

It has attained its business over the traditionally fast food just like McDonald’s and KFC. Its products are most well-known for low in fat and high in nutritional fibre, with simply six grams of excess fat or less (Subway 2014). Current Market Talk about

SWOT Evaluation

The SWOT evaluation analyses the strengths, weak points, opportunities and threats (La Trobe Organization School 2013). A good SWOT analysis can assist the company developing a strategic intend to help determining the key elements of the internal and external environment of a company (La Trobe Organization School 2013). It is realized that Subway can be facing a lot of opportunities inside the fast food sector with a large amount of internal and external problems. Table you SWOT research of the Subway retailer sequence and its new releases Flatizza (Subway 2014). Strong points (S)

Weaknesses (W)

Healthy, fresh foods, the new system is fresh cooked

Discount, the new product is cheap

Number of retailers and channels, the Subway retail sequence is broadening Customizable menu, with selection of different bread, meat and vegetables

Service quality can be inconsistent via store to store

Long for a under high customer flow, one cashier means lower efficiency and lowered customer satisfaction ratings Presence of products are out dated

Limited seating availability in most stores

No drive-through option, poor customer activities

Opportunities (O)

Threats (T)

CSR successes, Subway has been positively involved in some of the Corporate and business Social Responsibility activities Decor to encourage more dine-in customers.

Improve Customer satisfaction Model, present more individuals to serve the consumer, increase the customer capability Improve franchisee associations, with a control of centre circulation centre, the standard of the food may be guaranteed Grow packaged offerings, instead of traditional paper deal, box package and other deals can be used. Continue to revise and refresh menu offerings

Competition leads lessens in their prices and hence diminishes the profits, the Subway meals is also by lower price than its key competitors. More upscale sandwich outlets in the local marketplace, the Aussie people are more likely to have dine-in food until they are at the job and don’t have too much time Economy downturn, the retail and food sector in Australia is experiencing very slow rate of development Competition from all other large junk food companies including McDonald’s and KFC The sandwich store invests in an additional area that is not its specialised is a bold move, if the product is not really successful, it is going to substantial destruction other items as well and affect the revenue. Findings

Interior environment: there are many risks existing in Subway’s internal conditions. First of all, the regular customer service model has shown significant limitations on the customer volume level. The one for a model means only one consumer can be served. The client experience could possibly be downgraded with firm waiting period. It is remarkably likely that customers pick the restaurant with additional checkouts plus more staff. Second, the appearance of Subway store and its particular products happen to be out dated. As opposed to other junk food retailer, seen the package deal has not been improved with the modify of societal environment. McDonald’s, on the other hand, keeps introducing fresh packages and new looks of its products in response to major incidents to push its sale advertising campaign. For example , McDonald’s had launched the World Cup 2010 menu sets (McDonald’s 2010). Additionally , McDonald’s has different packages on which offers specified product information just like ingredients and calories.

The 3rd finding in the internal environment is that Subway has shown inconsistency in its customer satisfaction quality and food top quality. Since each Subway retail outlet is operating individually, there is a great risk of lacking of supervision, that might result lawsuits and other adverse consequences. The recognition of the shop could be broken if a single store features involved with issues. The incongruencies in customer satisfaction and meals quality include largely magnified the risk (La Trobe Business School 2013). External environment: The exterior environment is usually dominant by Subway’s supporter of healthful lifestyle from the food, diet plan, policy and its market growth strategies. The advocate of low fat, large fibre items have drastically increased the brand recognition and the corporate sociable responsibility fulfilment.

The Australia market provides responded Subway’s incentive with increment in its sales and profit. Nevertheless , with the elevating competition inside the domestic take out market, the healthy concept has been adopted by many junk food companies. McDonald’s labelled fats of all the products and provided numerous options in its green salads and drinks (George Commence 2014). KFC committed with a 10 percent reduction in sodium (George Commence 2014). Domino’s Pizza also introduced less sodium pizzas with more fresh vegetables in its ingredients. The increasing competition offers squizzed the money margin from the products. Subway seems to have fewer options to alter its menu sets, the lower price, that can be used as an advantage in the competition, today also becomes a shortage thatbrings negative affects to subway. Recommendations

Marketplace

One big potential market recognized in the case examine is the kids market. Since indicated in the SWOT examination, it is discovered that Subway doesn’t have children friendly features or kids friendly foods. In order to gain its market share, it is vital for Subway to bring more efforts from children by simply introducing children friendly menu set. The primary competitors of Subway on the market, such as KFC and McDonald’s, have already got value meals for kids. The benefit of children friendly meal isn’t just targeting your children alone, yet also, by bringing the kids to the shops; it is likely that the adults will even purchase the food. By doing so, Subway can tremendously increase the number of its clients. New product information and Advertising Mix

Item

The newest product of Subway, Flatizza, can maximize and consolidate the loyalty of customers. Furthermore, it can bring more youthful customers to the store, because it is small and fast, most father and mother can enjoy the meal with their kids without a very long waiting period. It also helps Subway to get more profit and larger market share. Flatizza looks like a tiny pizza, that has the convenience for take away. Additionally , it deal also have to guard the quality of Flatizza and let the Flatizza keep refreshing.

Price

Another characteristic of this system is that the price is incredibly low. The plain cheese is usually $2. 40, veggie is definitely $2. 40, pepperoni can be $3. 60, and hot and spicy Italian can be $3. 55. Most children will be affordable with this product. Furthermore, for adults and seniors, this device can be regarded as snack when they are hungry. This kind of price range is a lot lower than the competitor’s value, which will help Subway to gain a greater market share. Place

Place is going to target at large neighbourhood and communities where there are a lot of kids. The main target of this system is children; therefore , a store nearby the playgrounds and parks brings significant rewards tothe franchise. Promotion

The promotion way of this product should certainly emphasis on the purchase price to attract more customers. For example , Subway can produce a voucher totally free Flatizza. It is usually uploaded to Subway Facebook or myspace page or perhaps Twitter, and other social networking equipment. Customer benefit proposition

A well-constructed and delivered client value task can make a significant contribution to business approach and performance (Anderson et ing. 2006). To start with, in Subway, each value proposition must be distinctive. This involves that the new product must be superior to Subway’s competitor’s products. Second, the value sélections must be measurable and depending on tangible attributes (La Trobe Business University 2013); it should be quantified in monetary terns (Anderson ou al. 2006). At finally, the customer benefit proposition must be sustainable. The business image and brand needs to be well preserved. Justification in the choice of new product

The strength of the brand new product is that it maintains the idea of healthy and fresh food and adds some new elements in it. The traditional sandwiches are usually cold when they are served, in Subway, a single problem is there is fewer sizzling food. The moment some buyers are looking for warm food, they will skip Subway for other available choices. With Flatizza, Subway may successfully gain more focus from these kinds of customers. The cost of Flatizza is a bargain; it maintains the price advantages of Subway to the competitors. The opportunity of the product has made several improvement in its package, that can be criticized for some time. The new package is able to leave a better impression to the customers and provide a much more friendly take-away option.

The container with the Flatizza is much handy than traditional paper package. Additionally, it helps improve the menu option. Since the menu in Subway has been pointed out to be stalled, this new merchandise will grow its Market and gain a lot of market share from its competitor such as Domino’s and Pizza Shelter. The new item, however , is usually lacking of competitiveness with McDonald’s burgers and KFC’s fried chicken. It doesn’t increase the situation that Subway have been criticised for its meat quality. The new product also demands the market to examine its future, the theory screening and business analysishave concluded that Flatizza will gain more business and create new Subway image. But the product screening and market performance should be carefully examined in the near future.

Reference

Anderson, M. C, Narus, J. A and Rossum, W. Versus 2006 ‘Customer Value Sélections in Business Markets’, Harvard Business Review, vol. 84, concern. 3, pp. 90. Gargano, S 2014, ‘Fast Food Services in Australia’, IBISWorld Industry Record H4512, seen 2nd May well 2014, Offered: http://clients1.ibisworld.com.au/reports/au/industry/default.aspx?entid=2005 George Institute 2014, ‘Fast food now reduced salt’, looked at 2nd May possibly 2014, Offered: http://www.georgeinstitute.org.au/media-releases/fast-foods-now-lower-in-salt La Trobe Business School 2013, Business Fundamentals: LaTrobe System, La Trobe Business University, Pearson, ISBN 9781486013753. McDonald’s 2010, ‘McDonald’s Connects Clients around the World with FIFA Community Cup(TM) Excitement’, Media McDonald’s. Subway 2014, ‘Franchisee Information- Facts and History’, Subway, viewed next May 2014, Available: http://www.subway.com.au/About/Facts-and-History

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Published: 04.06.20

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