...College of Business and Public Policy 09/09/2013 TABLE OF CONTENTS COMPANY OVERVIEW 3 SUBWAY COMPETITION 3 TARGET CUSTOMERS 5 MARKETING TECHNOLOGIES 5 CURRENT ANCHORAGE MARKET…………………………………………………………...7 NEW SUBWAY LOCATIONS 9 COMPANY OVERVIEW Subway is the market leader in sandwich shops, and offers a healthier alternative to burgers and pizza for people looking to pick up food on the run. They specialize in making subs, wraps, salads, and pizzas. Subway is owned and operated by Doctor's Associates, Inc., and according to Forbes Magazine, is the largest single-restaurant chain globally with 40,043 locations in 102 countries around the world. SUBWAY COMPETITION As any other big company associated with food, Subway has to compete with international, national, regional, and local retailers of food products. Competition is based on price, convenience, and service. Subway is also focused on menu variety as well as product quality. Competition is one of the key factors that influence decision making processes as well as choosing a marketing strategy. Table 1. Subway Competition in Anchorage Direct Competitors Indirect Competitors McDonald's Red Robin KFC Mooses Tooth Burger King Bear Tooth Grill Wendy’s Tempura Express Carl's Jr Panda Express A&W All-American Food Denny’s Arby’s Village Inn Dairy Queen Snow City Cafe Pita Pit Spenard Roadhouse Quiznos Café Amsterdam Great Harvest Bread Co. Alaska Bagel Middle Way Cafe Leroy’s...
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...SUBWAY IN THE US Kozyrev Andrey Challenges of extending the product mix. In this case study I would like to analyze Subway, one of the biggest fast food chains in the world, and its project to include a new kind of product in its offer – pizzas, alongside with the submarine sandwiches, which have become the symbol of the chain. First of all I would like to analyze the present external conditions relative to Subway business to outline an image of a market the company operates in. 1.Environmental factors Since Subway’s project to extend the product mix yet only considers US market, we do not need to analyze the global economy condition, where Subway operates, but only US. The market is currently in stage of long recovery from the crisis of 2008, with a few positive forecasts. The customers’ buying power for the fast food has not been considerably reduced by the crisis. The current mindset of the customer base about the fastfood industry in the majority of areas of Subway operation is built around notions of accessibility, variety of choice, affordability and healthy food. 2.The Market The size of the market of fast food worldwide continues to grow due to new emerging markets and sustained turnover in already saturated markets. The age frame of customers for the fast food market varies from country to country, but it mostly is around 18-45 years old, almost exactly similar to the frame set by Subway. Attitudes of nodern customers are experiencing a shight shift from accessibility...
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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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...Subway The Subway restaurant chain is the world’s largest submarine sandwich franchise with 36,352 restaurants in 98 countries. New Subway restaurants are opening all the time at a rate of 40 stores per week. Fred DeLuca, current president of Subway, and Dr. Peter Buck founded the chain in 1965. Doctor's Associates, Inc. (DAI) currently owns the Subway sandwich shops. DAI is a privately held company and is not traded on any stock exchange. Subway has been realizing steady sales growth in recent years and reported $15.2 billion in revenue for 2010. Although Subway surpassed McDonalds in terms of store locations, McDonald’s is still the industry's revenue leader and earned $24 billion in 2010. Subway’s mission is to delight their customers with great food and service. In April 2010, Subway joined its major competitors and began offering a breakfast menu. Although Subway has been extremely successful selling submarine sandwiches, the chain faces several issues by entering this new market. These issues include major competition from other well-known fast food and full-service restaurants, consumer perception, accessibility and menu variety and pricing. McDonald’s has been the leader of fast food breakfast sales since 1975 with Dunkin’ Donuts and Starbucks being the next closest competitors in the market (Tice, 2010). These restaurant chains already have an established customer base for their breakfast products. On the other hand, Subway is widely known as the place with the...
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...INDIVIDUAL ASSIGNMENT COMPETITIVE ANALYSIS Strategic analysis and Strategic Analysis tools Name : Eduardo Christian Rodriguez Munoz – 30118825 Subject : Competitive Analysis Course Code : BUMKT5922 Lecturer : Sally-Anne Leigh Due : 8 June 2014 Word limit : 2271 SUMMARY CONTENS SUMMARY CONTENS 1 EXECUTIVE SUMMARY 3 INTRODUCTION 4 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...
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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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...TOPIC | PAGES | 1.0 | Content | 1 | 2.0 | Task 1 | 2 – 18 | 3.0 | Reference | 19 | 4.0 | Conclusion | | 5.0 | Coursework | | 2.0 Task 1 2.1 Company 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...
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...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 from...
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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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...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 Target Market-------------------------------------------------------------------------------------- Points of Difference-------------------------------------------------------------------------------7 ...
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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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...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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...------------------------------------------------- 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 matters...
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...Doctors Associates, Inc. (Subway) (3) Describe the company’s customers (households, businesses, schools, governments, etc.) To what extent does the company depend of international customers? --The company’s primary customers are households. Breaking this category down further, the company has chosen to target the traditional fast food enthusiast. Also, Subway has targeted non-traditional customers at locations such as convenience stores and truck stops. In 2010, Subways revenues from global sales were 15.2 billion. Subway has around 37,000 stores in 100 countries, 23,334 being U.S. stores and 13,664 being international stores. This means that international stores account for around 36% of Subways sales, and as such international customers do play a role in revenue generation for Subway. (4) Discuss the major determinants of demand for the firm’s primary product. Explain your choice of variables. If necessary, describe how determinants differ across customer segments -- The demand of types of sandwiches depends on the weather and income level of the local community. In winter hot sandwiches including meatballs and chickens along with soups are in most demand while in summer sandwiches like orchard chicken (content: chicken, cranberry, apples, raisins-most of the cold contents) tuna fish and other cold sandwiches are sold more than any others. Also the subways in rich community’s sale diet conscious sandwiches like turkey, Italians, chicken while a highway or area containing...
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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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