Marketing Case Study Subway

Terms of Reference

The purpose of this paper is to demonstrate the use and application of marketing theories were studied during the marketing course and make projection using a case study to illustrate how far the business can succeed when using these tools.

The paper uses Subway as a case study. Subway is well known company in the fast food industry. Subway offers a good value for money and good customer proposition by serving nutrition food in an industry the majority of the players are serving high fat-trans and genetically modified food which is known as junk food.

Subway is a good case for the following reasons:-

1- It serves nutrition products in an industry well know with its junk food products.

2- It’s a market oriented company and

It pursues customer satisfaction and valuing customer feedback. Mission, vision and values are incorporated to achieve these objectives. The aim is to make it clear in customers’ perception that Subway is equivalent to fresh and healthy fast food.

What Subway did to delight every customer?

1- Offers fresh, healthy and high quality ingredients.

2- Menu is fully customizable.

3- Subs and salads are prepared in the front of the customer.

4- Menu suits each country’s culture and ethnic.

5- Products’ varieties (5g of fat, 6 inches $5, classic, breakfast subs, hot served subs).

What Subway will gain?

1- Increasing sales and profit

2- Word of the mouth.

3- Wide spread (43,631 outlets in 110 countries).

4- Will be no. 1 in Quick Service Restaurant (QSR); Subway brand came in the 85th place in “World’s Most Valuable Brands” list according to Forbes.com in November 2014 and in the 3rd place after McDonald’s and Starbucks in fast food industry.

According to Entrepreneur.com Subway came in the 1st place in the “Fastest-Growing Franchise” in the last 2 years, and 4th place in the “200 North American franchisors seeking international franchisees”.

Strategic

2- Every Sunday, there’s one flavour cheaper than others.

3- Breakfast with coffee in the breakfast day-part.

4- Seasonal promotions like in Ramadan and Christmas times.

Future Challenges

1- Store cannibalisation is nightmare for franchising organisations; organisations must maintain proper control to minimize risks.

2- Subway franchising is attractive for franchisees; especially with low startup costs but the risk occurs when more outlets open, the market can be saturated in some countries.

3- Increasing sales per outlet to increase franchisees profits.

4- Keeping the menu fresh and interesting while offering new day-part like breakfast and late dinner.

Recommendations

1- Improve kids’ meal packaging with more decorative wrapping papers and toys such as Happy Meal from McDonald’s and Kids Meal from KFC. This will increase kids’ awareness for nutrition food, customers’ loyalty and segments.

2- Increase digital marketing to get more customers especially in countries that have small number of outlets.

Reflective