Subway was founded in 1965 by Fred DeLuca and Dr. Buck and has grown exponentially through franchising. Their strategy is to think globally but act locally, targeting underserved customer segments and expanding internationally. Their product development focuses on innovation, augmentation of existing offerings, and line extensions. Their target market is young urban consumers, using a franchise retail model located near residential and office areas. Their supply chain sources ingredients from central warehouses to franchisees.

1. PRESENTED
BY
PRASHANT MORE

2. COMPANY HISTORY
 Subway prides itself in being a healthy fast food chain
offering a variety of sandwiches and subs
 Founded in 1965 by Fred DeLuca and Dr. Buck.
 As a growth strategy, and in an effort to increase
profits, they embarked on the idea of franchising their
business.
 Subway locations grew exponentially.

5. Strategy
 "Think Globally, Act Locally".
 Targeting an underserved customer segment
 Expanding internationally

6. PRODUCT DEVELOPMENT
STRATEGY
 Creating new offering for existing market
 Innovation:- new offers
 Augmentation:- enhance the value to customers
of existing offers
 line extantion by adding different size, forms, flavor, etc

7. MARKET STRATEGY
 TARGET MARKET
 YOUNG, URBAN
 RETAIL FORMAT
 FRANCHISE MODEL
 UPSCALE AREAS PREFERABLY NEAR RESIDENTIAL
COLONIES AND OFFICES

8. CONT…..
 We would go for demographic segmentation and
in that we would target age wise segmentation. As fast
food is a major preference for youngsters and
teenagers
 one can target segment with age range of 16-30

9. SUPPLY CHAIN FLOW
• Bread
MUMBAI • Breads
• Souses • vegetables • Vegetables
• Meats • Warehouse for • Sauces
all others • Meats
DELHI ALL

10. CONT….
AT LOCAL LEVEL
 franchisee owns vehicles to source from central warehouse and
inter outlets
 Orders are placed on Tuesdays and received on Fridays
LOGISTIC
 Orders are taken up by the centralized call center
 From there information is passed onto the nearest Subway outlet
 The delivery is done by staff members only there are no separate
delivery boys
 Each store has 3 delivery bikes

11. CSR
 SUBWAY can provide free sandwiches outside
the hospitals for recoverdpatients2)
 They can do CSR by using eco-friendly materials for
their product(minimum usage of plastic bags or
packaging and replacing it with paper packing)
 By providing quality food and indirectly giving
better health to society