Free Essay

Marketing Case Analysis

In:

Submitted By venkatm
Words 1104
Pages 5
Marketing Management Case Analysis
Subway® Sandwich Shops

Abstract

Subway® Sandwich Shops was founded in 1965, and has been franchised into the hearts and stomachs of families all around the world. This highly successful sandwich shop was the dream of high-school graduate Fred DeLuca. With the financial help of long-time friend Dr. Peter Buck, Fred opened the first Subway ™ Sandwich Shop in Bridgeport Connecticut in 1965. By 1974, the pair had opened over 16 shops around Connecticut. In the year 2004, the SUBWAY® chain entered its 39th year of operation. It is the world's largest submarine sandwich chain with more than 21,000 restaurants in 75 countries. As a matter of fact, the SUBWAY® chain operates more units in the US and Canada than McDonald's® does (www.subway.com). Subway® currently operates 23,983 restaurants in 84 countries, and because of its' marketable success, the company was selected to be the subject of a marketing analysis.
The fast food landscape continues to evolve, and one of the most dynamic segments within the Quick Serve Restaurants market continues to be sandwiches, subs and wraps. Driven by consumer interest in healthier food choices and a growing demand for premium ingredients, sandwich chains are expanding locations as well as variety. In real terms, the sandwich, subs and wraps market has grown 70% since 1999, or from $9.9 billion to an estimated $16.8 billion in 1999-2004. Primarily Subway®, Quiznos, and Panera Bread have fueled growth and momentum. Regional chains have also seen significant revenue growth, contributing further momentum to the marketplace. Growth is driven through a combination of aggressive franchise strategy coupled with tactical marketing campaigns and innovative menu concepts that appeal from both a demographic, as well as a health standpoint (Mintel Int'l Group, 2005).
In response to its newfound competition, Subway® has responding with the following efforts. One effort to build sales units included adding a breakfast menu at 500 locations. In addition, Subway® has introduced specific value priced items to compete with McDonald's and other value positioned franchises. Finally, subway has expanded into non-traditional markets such as:

• airports
• amusement parks
• business centers
• coliseums and stadiums
• colleges and universities
• convenience stores
• convention centers
• hospitals
• military bases
• recreational facilities
• elementary and secondary schools
• supermarkets
• travel centers/truck stops

(www.subway.com, 2005)

As expected, Subway's customers tend to visit their location during lunchtime; however, a few customer demographics are unique to the sub chain, specifically, "demographics skew much younger and single" than the competition. In addition, Subway® is skewed towards western regions of the country and upper middle class customers (Wood, Robin 2002).
The target for the SUBWAY® chain's media buying is adults aged 18-49, in order to maximize our buying power with a skew toward programming that delivers better to the younger 18-34 audience. The goal of the chain's current advertising campaign is to increase the brand presence in the consumers' "consideration set"--that is, which fast-food restaurants consumers consider when deciding where to eat. It is doing this by continuing to build the brand on the "freshness" platform. The SUBWAY® chain is expanding its universe of potential customers as a place for "TASTY" and "HEALTHY" food. This positioning, communicated via an effective advertising campaign, will serve to make the SUBWAY® chain part of customers' everyday consideration set (www.subway.com, 2005).
SWOT Analysis

Strengths
• Satisfies the need for convenient, value-oriented products that taste good
• Health appeal - providing healthier alternative to fast food
• Great marketing slogans
• Eclipsed McDonald's as the largest restaurant chain in the country
• Team effort
• Jared Fogle campaign
• Testimonials
• Nationwide food with room for growth

Weakness
• Cannibalizing sales at existing units
• Franchises battling with franchisers for more control over their business
• Developing a differential advantage in a highly competitive and dynamic market

Opportunities
• Prospective Franchise Growth
• International Foundation
• Expansion in non-traditional areas
• Low start-up cost
• Training & constant support

Threats
• Competition intensified with hamburger chains offering sub-like concepts
• Finding locations for newly purchased franchises
• Deli's offering larger selections have/are entering the market

Recommendations

The sandwich market is gaining popularity in American culture. Several competitors are now present in the market place competing against Subway®. Many of the fast food providers are currently trying to capitalize on this growing market. The food sales market is growing and Subway® has marketed their sandwiches as hearty and healthy. This is one of the many marketing strategies that Subway® has used to continually be the industry leader in sub shops.
In order to maintain their industry leading edge Subway ™ must market the high quality of their subs. It is recommended that Subway ™ start a marketing program based on the freshness and quality of their sub offerings. The marketing strategy should include the fact that the bread is fresh made and the vegetables fresh cut. Subway® offers many high quality toppings to complement any sandwich. It is recommended that Subway ™ market the fact that they offer more choices at a higher quality than their competitors. This will be extremely noticeable when competing against other traditional fast food chains that are entering the sub market (Torres, 2003).
It is recommended that Subway® should develop several new offering to provide for the growing needs of its customers. An expanded warm sub menu should be developed to attract a larger night crowd. Along with the new sandwiches more complementary choices should be offered such as salads, and dessert pastries. Subway® has been lacking in the night crowd market and could capitalize on this market to increase profitability in the short-term market.
Competition is increasing in the sub market. The competition is explicit in nature, each competitor is aware of the other. It is important that Subway® monitor the competition and their progress as they develop into the marketplace. Many times the greatest threat comes from competitors that are new to the market. Subway® should monitor the competition, and pay close attention to competition stemming from market expansion and product expansion. (Clark, 1998)
References
Clark, B. (1998). Managing competitive interactions. Industrial Management. Vol. 7 Issue 4. (pgs. 8-21). Retrieved from EBSCOhost database on August 19, 2005.
Mintel International Group. (2005). Sandwiches subs & wraps. Retrieved August 20, 2005 from http://www.just-food.com/store/products_detail.asp?art=33949&lk=rotw_arc.
Torres, N. (2003). Do the math. Entrepreneur Magazine. (January 2003) Retrieved August 21, 2005 from http://www.entrepreneur/article/0,4621,305432,00.html.
Wood, R. (2002). Subway beef up its area numbers. The Business Review. (December 20, 2002) Retrieved August 19, 2005 from http://albany.bizjournals.com/albany/stories/2002/12/23/story2.html.
www.subway.com

Similar Documents

Premium Essay

Doctors

...Guidelines for Addressing Case Topics FRAMEWORK FOR ANALYSIS SITUATION ANALYSIS The Situation Analysis involves analyzing a number of internal and external factors. Important internal factors to analyze include the organizational structure, the resources at hand, and the personalities involved in the decision- making. Externally, you should analyze the organization's positioning relative to the competition, the size and characteristics of various target audiences, consumer attitudes toward the product or service, the nature of the purchase/consumption function, the salient attributes of the product or service, and the threats versus opportunities posed by the various elements of the environments (i.e., social, political, legal, technological, and economic). Secondary sources should be used for this section of your paper. Assumptions based on logic may be appropriate, if stated as such. Remember, an advertising manager will never have ALL the information he or she would like in order to make a decision. A. External Environment 1. Relevant economic, social, political, legal, technological trends 2. Nature and extent of demand a. demand elasticity b. size of the market 3. Industry structure a. entry/exit barriers b. competition 1) nature of competition 2) profile of competitors (background, resources, etc.) ...

Words: 1318 - Pages: 6

Premium Essay

Haiser Group Case Analysis

...The Haier Group: U.S. Expansion I. INTRODUCTION A. EXECUTIVE SUMMARY 1. Summary statement of the problem: The Haier Group is a major home electrical appliance maker based out of China. This company was listed as the only Chinese name brand among the world’s 100 most recognizable brands in a global name brand list edited by the World Brand Laboratory. The main issue that Haier Group is facing is how expand into the U.S. market. 2. Summary statement of the recommended solution: Haier has been successful in the Chinese and foreign market but is looking to succeed in the U.S. market. The problem is, Haier has to compete with well known electrical appliance maker companies like General Electric, Whirlpool, Maytag, Electrolux, Sony, Panasonic, Phillips and LG. All of these companies are well known in the US and have control over the market. Haier Group will have to lower their prices for their products in order to get U.S. consumers to want buy their products. Then they’ll have to convince U.S. consumers that their products are comparable with the other major brands when it comes to productivity. When they achieve this goal there will be no stopping Haier. B. THE SITUATION Haier Group started out in 1984 and was enterprise that was owned by the Chinese government. They originally imported refrigerator technology from Germany. Haier would eventually start to venture into international expansion, acquisitions and mergers, capital operations, scientific...

Words: 1992 - Pages: 8

Premium Essay

Framework for Case Analysis

...A Framework for Case Analysis Case analysis is a problem solving process. You are demonstrating in a systematic way how you have defined a key problem/issue, identified plausible, realistic alternatives (not necessarily limited by those suggested in the case), analyzed these alternatives using common criteria, and finally developed a complete set of recommendations. This process challenges your organizational and communication skills as much as your analytical and quantitative skills. Step 1. Situation Analysis. The first step in systematically analyzing an organization's marketing problems is to conduct a situation analysis. This is not part of the written case brief but it is needed before you can begin the problem solving process. Step 2. Define the Problem/Issue. Once you have conducted a thorough situation analysis, you can identify the problem(s) facing the organization. Be careful not to assume that the characters in the case are objective or accurate in identifying the problem or make a rush to judgment about the problem. Step 3. Identify plausible alternatives. What are reasonable options for solving the identified problem? While you should at least initially consider the options discussed in the case, do not assume that these are the best or even appropriate alternatives, especially if these options are not consistent with the problem. Alternatives should be plausible, not "straw men" that are just knocked aside in order to make a bee line for some obvious solution...

Words: 2924 - Pages: 12

Premium Essay

Progressive Insurance Case Study

...Ateneo de Davao University School of Business and Governance Entrepreneurship Department Progressive Insurance: A Case Study Submitted to: Mr. Rey Navacilla Submitted by: John Paul Dela Vega Jose Antonio Kintanar Clarence Mitchell Sy Dayle Lois Tulang John Way Keith Medina Table of Contents I. Introduction…………………………………………………..…… II. Statement of the Problem…………………………………..…... III. Objectives of the Case Study………………………………..…. IV. Methodologies and Approaches…………………………….… V. Analysis of the Case a. Qualitative Tool: Fishbone Diagram………….…. b. Quantitative Tool: Decision Tree Analysis……. VI. Alternative Courses of Action (ACAs) c. Alternative Course 1……………………………..… d. Alternative Course 2……………………………….. e. Alternative Course 3……………………………..… VII. Significant Findings…………………………………………….. f. Positive Findings…………………………………… g. Negative Findings………………………………….. VIII. Recommendations…………………………………………….... IX. Conclusions……………………………………………………… I. Introduction Progressive Insurance, an automobile insurer company, which is based in Mayfield Village, Ohio. On the year of 1991 Progressive Insurance had approximately $1.3 Billion in their sales. When the year of 2006 came that $1.3 Billion in sales suddenly became $14.5 Billion. What did they do to make this figures increase so high? Nothing. For 15 years Progressive insurance just did little advertising...

Words: 2124 - Pages: 9

Free Essay

The Black

...|STRATEGIC MANAGEMENT (MGT431) | |GUIDELINES FOR THE WRITTEN STANDARDIZED CASE ANALYSIS | | | | | |I. |Overview: | | | | | |The introduction of your paper should acquaint the reader with the company being analyzed and demonstrate your ability to succinctly describe the company| | |from a historical perspective. Take this opportunity to highlight key factors and past strategies, which have led the company to its present position. | | |It is important for you to understand precisely why the company has been successful (or unsuccessful) in the past. Taking time to articulate this may | ...

Words: 1219 - Pages: 5

Free Essay

Ase Analysis Research – Striving for Best Academic Practice

...ZhiQing | Student ID No.: | 22012511 | Unit Code & Name: | MNG91002 | Campus: | MDIS | Tutor’s Name: | Frankie-Lim | Assignment No: | 1 | Assignment Title: | Case Analysis Research – Striving for Best Academic Practice | Word Count: | 1193 | Due Date: | 21 Apr 2014 | Date submitted: | 20 Apr 2014 | Declaration: I declare that this assignment is my own original work and has not been submitted for assessment elsewhere. I acknowledge and irrevocably agree that the assessor of this assignment may, for the purpose of assessing this assignment: * Reproduce this assignment and provide a copy to another member of faculty for review and comment, including whether the work is an original work; and/or * Provide a copy of this assignment to a plagiarism checking service for review so that it may determine whether the assignment is an original work. The checking service may retain a copy of the assignment on its database for the purpose of future plagiarism checking. I have read and understand the Rules relating to Awards (Rule 3.17) as contained in the University Handbook. I understand the penalties that apply for plagiarism and agree to be bound by these rules. CHEN ZHIQING 20 Apr 2014 Signature (please type) Date Tutor's comments: Paper Title: Case Analysis Research –...

Words: 1822 - Pages: 8

Free Essay

Levendary Cafe

...INTERNATIONAL MANAGEMENT CASE ANALYSIS-LEVENDARY CAFÉ: THE CHINA CHALLENGE SPRING 2015 The following are the guidelines for completing the case analysis for Levendary Café: 1. Read the case carefully to gain a good understanding of the case and all the issues facing the company. 2. Identify the Environmental Factors (Political, Legal, and Technical) that exist in China and that have an impact of how business is conducted in China compared to how it is conducted in the United States. Focus on the ones that specifically affect the business that Levendary Café is in. What are these factors and how specifically do they affect Levendary Café’s business in China. 3. Identify the Economic and Demographic factors that exist in China and discuss how they affect Levendary Cafés business in China. 4. Identify the major Cultural Differences between the U.S. and China, and explain how they affect doing business in China for Levendary Café. 5. Identify differences in Ethical practices and values between the U.S. and China and explain how these differences affect doing business in China. Focus on those differences that affect the business that Levendary Café is in. 6. Using Hofstede’s Cultural Dimensions, compare the U.S. with China and explain how the differences would affect doing business in China for Levendary Café. 7. Based on the Cultural differences between the U.S. and China and the Hofstede’s Cultural Dimensions analysis, what is the most effective...

Words: 448 - Pages: 2

Premium Essay

Cookie

... May NhanRoom 405 OB | E-mail: | nhan@uwindsor.ca | Teaching Assistants: | To Be Assigned | | | This course will familiarize students with business including marketing, operations, finance, accounting international business and human resource management. By the end of the course students should develop a general understanding of business including but not limited to its various applications and forms, key challenges to ethical decision-making, key success factors for a career in business, and the impact on, and the impact of, business on political, legal, social, cultural and economic environments. Methodology This class follows a lecture-discussion format. Students are expected to be prepared to discuss readings assigned for each class. With only limited time to meet during the semester, is it essential that students be prepared to engage, participate and contribute in each session. Lectures and readings will be supplemented by discussion, videos, and case studies, which apply concepts to real-world situations. Textbook, Other Materials and Course Web Site * Bissonette, G. 2012. Business: Strategy, Development, Application. Toronto: McGraw-Hill Ryerson (available electronically or at the University Bookstore). * The course home page (CLEW) will be used to distribute case materials, load course lessons, make announcements, and communicate your course evaluations. It is your responsibility to check the course home page regularly. ...

Words: 4348 - Pages: 18

Free Essay

Syllabus

...Analysis of Business Issues, Writing In the Disciplines (WID) BADM 2003W (95440): BADM_2003W.SEC.12 Tuesday Combined Class: SEMESTER: Spring 2014 LOCATION & TIME: Duques 353, Tuesday 11:10 AM-12:25 PM PROFESSOR: Dr. Bret Crane Department of Management Office: Funger Suite 315N Email: bretdcrane@gwu.edu Office Hours: Tuesdays 1:00-2 PM or by appointment TEACHING ASSISTANTS: |Erin Vander Wall | | |Leigha McReynolds | | |Mark De Cicco | | |Tess Strumwasser | | |Daniel Berkhout  | | |Sam Yates | | |Vicki Brown | | | ...

Words: 4096 - Pages: 17

Free Essay

Ritz-Carlton Case

...Title Page Course – MKTG 6300 Fall 2007 Service Marketing Student Name: Maria E. Kobayashi Individual Case Analysis Individual Case Summary: Ritz – Carlton Hotels 1. Key issues Ritz – Carlton (RC) wants to be perceived as the premier luxury hotel, with differentiated and personalized service, high levels of guest retention and guest recovery rates, and low levels of service defect incidence. The group wants to achieve this goal by optimizing the balance between human relationships and the systems. Nevertheless, the systems and databases RC had in place at the time of the case do not deliver the level of information needed to reach their objective. Moreover, they do not allow for smooth interaction with the RC team, who are able to gather highly valuable information regarding customers’ preferences, dislikes, or potential problems experimented by the guests. 2. Recommendations First of all, the Encore system should be modified to include real-time updating of customers’ preferences and of potential problems the guests might have experimented during their stay. This should be standardized across all RC properties. Guest categorization should also be standardized and input into the system. This system should be available in a user-friendly way to any member of the RC staff in convenient locations. It should also include a common defect reporting module with the functionality to cross data between different locations. After all these processes...

Words: 382 - Pages: 2

Free Essay

Coke Pepes

...Case Analysis Guide The Six Steps for Preparing a Case Analysis with excerpts from: “Teaching and the Case Method”, Barnes, Christiansen, Hansen; Harvard Business School Publishing. Professor Edward G. Wertheim, College of Business Administration, Northeastern University Why study using the case method? Stated simply, to teach you, the student, how to think. “The sole direct path to enduring improvements in the methods of instruction and learning consists in centering upon the conditions which exact, promote, and test thinking. Thinking IS the method of intelligent learning, of learning that employs and rewards mind. We speak, legitimately enough, about the method of thinking, but the important thing to bear in mind is that thinking IS method, the method of intelligent experience in the course which it takes”. * *From “Teaching and the Case Method”, Barnes, Christiansen, Hansen; Harvard Business School Publishing. Your Responsibilities: Participation in a case method class is futile without careful preparation. It is similarly futile to attempt to learn simply by listening to your classmates’ opinions of the “right answer”. Learning in a case method course is based on active participation in the generation of alternative solutions and creation of actionable strategies. The case itself is merely the conduit for discussion. Most students are disconcerted by the seemingly vast and disjointed information presented. Even though the prospect of a...

Words: 1147 - Pages: 5

Premium Essay

Overhead Reduction Task Force

... Terance J. Wolfe, Ph.D. Email: terancew@marshall.usc.edu Office: Bridge 307-F Phone: 213.740.0765 FAX: 213.740.3582 Office Hours: by appt Course Overview GOAL: The goal of this course is to enhance participant understanding of the nature and the processes of effective groups, and what it takes to build and lead them as high performance teams. Teams are an endemic aspect of culture and society. Whether playing sports, singing choir, playing in the orchestra, performing ballet, or parenting, one is engaged in team-based activities. Organizations increasingly rely upon teams as a primary work unit. Whether you are in supply chain management, customer relationship management, marketing and sales, new product development, manufacturing engineering, project management, information systems, cross-functional task forces, or consulting, you will inevitably be solicited to contribute to team-based organizational initiatives. Despite their ubiquity and our collective competence in building and leading sports and performance teams, there is often little understanding of what it takes to build a cohesive and effective work team. Members are assigned, objectives are given, resources (if you’re lucky) are allocated, but beyond that there is scant...

Words: 968 - Pages: 4

Free Essay

Case Analysis Case Analysis “Robert Princeton” Loginjoin Rss ©2012 Termpaperwarehouse.Com Privacy Policy Terms of Service Copyright Information Contact Us Help Advertise with Us

...Charlotte Beers (Ogilvy & Mather) Case analysis At the point of planning to the launch of the business, the owner of the business is very passionate and usually experienced in the line-of-business; as David Ogilvy was at the age of 38 when he started his own advertising agency in 1948. Ogilvy & Mather, an advertising agency was started in New York and expanded worldwide. By 1991, O&M was ranked the largest marketing company in the world.[1] But there comes a time when a company must look to adapt a change. With competition growing, clients of O&M changed their demands. O&M was a high-cost agency that was failing in controlling their budget and lowering their cost; they failed to see the reason for a change. Due to that fact, O&M had lost few of their multi-million dollar accounts. Many companies may have either filed bankruptcy or have shutdown in the process of losing their clients but O&M was not the type of company that would give up that easily. In 1992, Charlotte Beers was appointed CEO of O&M and a massive change was underway. She was not the type of person who would dwell on the past, but instead look to better the future. Charlotte Beers clearly made an impression on the O&M employees as she had the ability to inspire. But more importantly, she came up with three strategies which turned the company around 360 degrees; Client Security, Better Work/More Often, and Financial Discipline. Yes these strategies were formed for an advertising agency...

Words: 492 - Pages: 2

Free Essay

How to Approach a Case

...How to Approach a Case This is not the only approach that exists, but it’s a worthwhile one to try as you get started. 1. GETTING ORIENTED It’s useful to think of a case analysis as digging deeper and deeper into the layers of a case. 1. You start at the surface, Getting Oriented and examining the overall case landscape. 2. Then you begin to dig, Identifying Problems, as well as possible alternative solutions. 3. Digging deeper, Performing Analyses you identify information that exposes the issues, gather data, perform calculations that might provide insight. 4. Finally, you begin Action Planning to outline short-, medium-, and long-term well-defined steps. Typically, you’ll need to repeat this process multiple times, and as you do, you'll discover new analytical directions, evolving your assessment of the case and conclusion. a. Case Analysis Overview Analyzing a case is not just about digging. It’s also about climbing back out to examine what you’ve unearthed, deciding what it means, determining what to analyze next, and digging some more. Often your examination of information about a problem will change your idea of what the real problem is and about what to analyze next. The process is similar to when a detective investigating a crime shifts his or her opinion about the most likely suspect as more clues come to light. Gather your materials and tools. These include the case and any other related materials to supplement your reading...

Words: 3234 - Pages: 13

Premium Essay

Sample Demonstartes

...2008 : CSH 208 Required: David, Fred R. (2009) Strategic Management: Concepts and Cases (12th edition) Upper Saddle River, New Jersey: Prentice Hall. Course Description: Strategic Management requires that students integrate relevant knowledge gleaned from previous core business-course experience. Extensive case work and library research are demanded. Students work with a real organization to develop a comprehensive strategic plan. The student should have completed all MBA core requirements or be currently enrolled in the remaining courses. 1 Course Objectives: At the end of the course students should be able to: 1. Use the strategic management process to understand competitive forces and to develop competitive advantages. 2. Analyze complex business situations from management’s perspective. 3. Appreciate the interdependence of all business functions and operations. 4. Be more proactive in ascertaining and acting upon opportunities that may occur in the macro-environment. 5. Identify what an organization wants to achieve and know how they will do it. 6. Develop creative alternatives to resolving business problems, choose a strategy from among the alternatives generated, and effectively and efficiently implement the proposed course of action. 7. Work cooperatively in a group and collectively communicate results and recommendations based on objective and subjective analyses of business case problems. Course Procedure: Class lectures are designed to explain and supplement...

Words: 1366 - Pages: 6