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MARKETING PLAN
Ana Luisa Marques 201885213
Irina Tsoy 201503450
Faisal al jaber 201603617
In Soo Kang 201400080
Heon Seung Ha 201603651
INDEX
1. Introduction
2. Situation Analysis
1. Market Summary
2. SWOT Analysis
3. Competition
4. Product Offering
5. Keys to Success
6. Critical Issues
3. Marketing Strategy
3.1 Mission
3.2 Marketing Objectives
3.3 Target Markets
3.4 Positioning
4. Marketing Tactics
4.1 Product
4.2 Distribution
4.3 Communications
4.4 Marketing Research
5. Conclusion
● Founded in 1965 by
Frederick DeLuca
● 1984 first overseas branch
in Bahrain
● 2010 named as largest fast-
food chain with 44,000
restaurants
● Employs 400,000 people
Subway overview
Subway products
Subs
Cookies & chips
Soft Drinks
Salads
Situation Analysis
Market Summary
- Geographics: operate in all but pay attention to local
variations;
- Demographics: According to Subway, the majority of
customers is concentrated on the age group in between
18 to 39 years old, mostly people that are either studying
or working.
- Behavior: customers that prefer a healthier diet;
customers that need to eat their meal quickly because of
their busy lifestyle; customers that enjoy choosing their
meal ingredients
Market Needs
The franchise seeks to fulfill the following benefits that are important to its customers:
- Fresh ingredients
- Healthier products
- Customer service
- Suitable Price
Market Trends & Market Growth
- New products launches
- Demand for vegan options
- Demand for healthier drink
options and variety
SWOT Analysis
STRENGTHS
❏ Worldwide presence
❏ Customized products
❏ Location advantage
❏ Healthy products
❏ Low pricing
WEAKNESSES
❏ No consistent service delivery due to franchise
❏ No consistent control over franchise operations
❏ Weak online presence and marketing
OPPORTUNITIES
❏ Expand beverage menu
❏ Alliances with healthy beverages
❏ Vegan sandwiches options
❏ Higher quality premium sandwich line
THREATS
❏ High competition in the fast food industry
❏ Low barriers to entry for new businesses with
substitute products: kebabs, burgers, local
cuisine-based fast-food shops
Competition
Main Competitors in Korea
❏ McDonald’s
❏ Lotteria
❏ Mom’s Touch
Keys to Success
The main reasons Subway is successful is that the customer has the power,Subway offer fresh ingredient and
healthier fast food.
❏ Healthy products
❏ Lower prices
❏ Strong customer service
❏ Fresh ingredients
❏ Customer is the king
Marketing strategy #1
India - example
- Launch of vegan-only subs for Jain population
- Separate the handling of vegan and meaty subs
- Create two separate checkout counters for vegan and non-vegan customers
Launch a personalized message to
customers:
- Show where the ingredients come from
- Show that the ingredients come from
local small scale farmers
- Create a participatory approach to
customers where they have effect on
farmers’ lives
Marketing strategy #2
Environmental factors:
- EU ban of single-use plastic effect
- Replace single-use cups and straws with regular
dishes for dine-in option
- Provide small incentives for customers who bring
their own tumblers
- In Korea, Subway take-out include plastic bags
while in other countries, they use paper package
Marketing strategy #3
Marketing Strategy
Mission: “to provide the tools and knowledge to allow entrepreneurs to successfully
complete in the QSR industry worldwide by consistently offering value to consumers
through providing great fasting food that is good for them and made the way they like it”.
Marketing Objectives: the most environmentally friendly fast food chain;
Target Markets:
Asia (emerging markets) -> South Korea
Positioning: providing healthier fast food than other companies;
Franchise
● Subway: $69,300 to
$191,000
● Burger King: $240,000
to $2.5 million
● McDonald’s: $432,800
to $715,150
Franchise
PROS:
● Trademark strength
● Technical advice
● Support services
● Employee training
● Marketing resources
● Franchisee services
CONS:
● Prices of foreign franchisors
are often higher than local
alternatives
● Limited control
● Risk carrier
Marketing Research
Market barriers are high
because existing companies
have their own colors and have
nationwide stores
How to get in the market
barrier will be the key to
success of Subway in Korea.
Conclusion
1. Need for create new
menu options
2. Flexible response to the
market trends
3. Stop expansion and
focus on strengthening
existing chains
4. Reconsider franchising
5. Localization strategies
Thank You
References
Demi, S., 2017, “Globalization of Subway in India: How a US Giant Has Adapted in the Asian Subcontinent”, Journal of Asian and African Studies, Vol. 52(5)
573–585 http://journals.sagepub.com/doi/full/10.1177/0021909615596764
Hoon-Ku Sul“Restaurant Franchisees’ View of The Relationships Among the Determinants of Franchisors’ Entrepreneurial Strategy Processees”
http://journals.sagepub.com/doi/pdf/10.1177/1096348006290113
Ilan Alon, “Global Franchising and Development in Emerging and Transitioning Markets” http://journals.sagepub.com/doi/pdf/10.1177/0276146704269320
The History of Subway http://www.subway.com/en-mu/aboutus/history
“Subway - Company Profile, Information, Business Description, History, Background Information on Subway”, Reference for Business
http://www.referenceforbusiness.com/history2/11/Subway.html
Explore our world, Subway http://www.subway.com/en-us/exploreourworld
Forbes, the World’s Most Valuable Brands https://www.forbes.com/companies/subway/
Independent, “EU proposes total ban on plastic cutlery and straws to reduce single-use litter”
https://www.independent.co.uk/news/world/europe/plastic-ban-straws-eu-cutlery-cotton-buds-single-use-uk-environment-a8373351.html
Knutson, B., 2007, “How Students Perceive Restaurant Brands”. Cornell
http://journals.sagepub.com/doi/pdf/10.1177/001088040004100318
Pierre Chandon, Brian Wansink, 2007, “The Biasing Health Halos of Fast‐Food Restaurant Health Claims: Lower Calorie Estimates and Higher Side‐Dish
Consumption Intentions”, Journal of Consumer Research, Vol. 34, No. 3
http://www.jstor.org/stable/pdf/10.1086/519499.pdf?refreqid=excelsior%3A01522f43b90b005dddc43fc0be045f41

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Marketing Plan-Subway CASE STUDY

  • 1. MARKETING PLAN Ana Luisa Marques 201885213 Irina Tsoy 201503450 Faisal al jaber 201603617 In Soo Kang 201400080 Heon Seung Ha 201603651
  • 2. INDEX 1. Introduction 2. Situation Analysis 1. Market Summary 2. SWOT Analysis 3. Competition 4. Product Offering 5. Keys to Success 6. Critical Issues 3. Marketing Strategy 3.1 Mission 3.2 Marketing Objectives 3.3 Target Markets 3.4 Positioning 4. Marketing Tactics 4.1 Product 4.2 Distribution 4.3 Communications 4.4 Marketing Research 5. Conclusion
  • 3. ● Founded in 1965 by Frederick DeLuca ● 1984 first overseas branch in Bahrain ● 2010 named as largest fast- food chain with 44,000 restaurants ● Employs 400,000 people Subway overview
  • 4. Subway products Subs Cookies & chips Soft Drinks Salads
  • 5. Situation Analysis Market Summary - Geographics: operate in all but pay attention to local variations; - Demographics: According to Subway, the majority of customers is concentrated on the age group in between 18 to 39 years old, mostly people that are either studying or working. - Behavior: customers that prefer a healthier diet; customers that need to eat their meal quickly because of their busy lifestyle; customers that enjoy choosing their meal ingredients
  • 6. Market Needs The franchise seeks to fulfill the following benefits that are important to its customers: - Fresh ingredients - Healthier products - Customer service - Suitable Price
  • 7. Market Trends & Market Growth - New products launches - Demand for vegan options - Demand for healthier drink options and variety
  • 8. SWOT Analysis STRENGTHS ❏ Worldwide presence ❏ Customized products ❏ Location advantage ❏ Healthy products ❏ Low pricing WEAKNESSES ❏ No consistent service delivery due to franchise ❏ No consistent control over franchise operations ❏ Weak online presence and marketing OPPORTUNITIES ❏ Expand beverage menu ❏ Alliances with healthy beverages ❏ Vegan sandwiches options ❏ Higher quality premium sandwich line THREATS ❏ High competition in the fast food industry ❏ Low barriers to entry for new businesses with substitute products: kebabs, burgers, local cuisine-based fast-food shops
  • 9. Competition Main Competitors in Korea ❏ McDonald’s ❏ Lotteria ❏ Mom’s Touch
  • 10. Keys to Success The main reasons Subway is successful is that the customer has the power,Subway offer fresh ingredient and healthier fast food. ❏ Healthy products ❏ Lower prices ❏ Strong customer service ❏ Fresh ingredients ❏ Customer is the king
  • 11. Marketing strategy #1 India - example - Launch of vegan-only subs for Jain population - Separate the handling of vegan and meaty subs - Create two separate checkout counters for vegan and non-vegan customers
  • 12. Launch a personalized message to customers: - Show where the ingredients come from - Show that the ingredients come from local small scale farmers - Create a participatory approach to customers where they have effect on farmers’ lives Marketing strategy #2
  • 13. Environmental factors: - EU ban of single-use plastic effect - Replace single-use cups and straws with regular dishes for dine-in option - Provide small incentives for customers who bring their own tumblers - In Korea, Subway take-out include plastic bags while in other countries, they use paper package Marketing strategy #3
  • 14. Marketing Strategy Mission: “to provide the tools and knowledge to allow entrepreneurs to successfully complete in the QSR industry worldwide by consistently offering value to consumers through providing great fasting food that is good for them and made the way they like it”. Marketing Objectives: the most environmentally friendly fast food chain; Target Markets: Asia (emerging markets) -> South Korea Positioning: providing healthier fast food than other companies;
  • 15. Franchise ● Subway: $69,300 to $191,000 ● Burger King: $240,000 to $2.5 million ● McDonald’s: $432,800 to $715,150 Franchise PROS: ● Trademark strength ● Technical advice ● Support services ● Employee training ● Marketing resources ● Franchisee services CONS: ● Prices of foreign franchisors are often higher than local alternatives ● Limited control ● Risk carrier
  • 16. Marketing Research Market barriers are high because existing companies have their own colors and have nationwide stores How to get in the market barrier will be the key to success of Subway in Korea.
  • 17. Conclusion 1. Need for create new menu options 2. Flexible response to the market trends 3. Stop expansion and focus on strengthening existing chains 4. Reconsider franchising 5. Localization strategies
  • 19. References Demi, S., 2017, “Globalization of Subway in India: How a US Giant Has Adapted in the Asian Subcontinent”, Journal of Asian and African Studies, Vol. 52(5) 573–585 http://journals.sagepub.com/doi/full/10.1177/0021909615596764 Hoon-Ku Sul“Restaurant Franchisees’ View of The Relationships Among the Determinants of Franchisors’ Entrepreneurial Strategy Processees” http://journals.sagepub.com/doi/pdf/10.1177/1096348006290113 Ilan Alon, “Global Franchising and Development in Emerging and Transitioning Markets” http://journals.sagepub.com/doi/pdf/10.1177/0276146704269320 The History of Subway http://www.subway.com/en-mu/aboutus/history “Subway - Company Profile, Information, Business Description, History, Background Information on Subway”, Reference for Business http://www.referenceforbusiness.com/history2/11/Subway.html Explore our world, Subway http://www.subway.com/en-us/exploreourworld Forbes, the World’s Most Valuable Brands https://www.forbes.com/companies/subway/ Independent, “EU proposes total ban on plastic cutlery and straws to reduce single-use litter” https://www.independent.co.uk/news/world/europe/plastic-ban-straws-eu-cutlery-cotton-buds-single-use-uk-environment-a8373351.html Knutson, B., 2007, “How Students Perceive Restaurant Brands”. Cornell http://journals.sagepub.com/doi/pdf/10.1177/001088040004100318 Pierre Chandon, Brian Wansink, 2007, “The Biasing Health Halos of Fast‐Food Restaurant Health Claims: Lower Calorie Estimates and Higher Side‐Dish Consumption Intentions”, Journal of Consumer Research, Vol. 34, No. 3 http://www.jstor.org/stable/pdf/10.1086/519499.pdf?refreqid=excelsior%3A01522f43b90b005dddc43fc0be045f41