Subway’s business strategy includes easy access, healthy perception, and ability to customize. Subway restaurants require less space than other fast-food restaurant, such as McDonald’s, so it is easier for Subway to build and open in downtown. Also, the food in Subway is healthier than in other fast-food restaurants. People are more health-conscious now than before, so Subway can attract more customers who what something fresher or lighter than burgers and fries. In addition, people can customize meals to their specifications, so people can always try something new in Subway.
Expansion into developing nations with different social and cultural parameters would require altering the menus and catering to the specific customer needs. Economic factors The low franchising cost comparing to the competitors is an advantage for Subway. However the cost of ingredients and supplies used in the preparation of food is higher than that of the competition due to the need for fresh ingredients. Customers have a perceived value which is higher than that of the product offerings of alternate fast food chains. Social
Subway is a privately held American fast food restaurant. The subway franchise was established in 1965 and still sells some of the world’s best submarine sandwiches today. Subway advertises it’s delicious looking subs using billboards, commercials, and advertisements. One commercial for example, features simple but effective advertising. This commercial is very simple and shows the mouth watering submarine sandwiches and states 2 words: eat fresh.
The Subway started to explore Russian market since the beginning of 1990s. The first Subway café was opened in Saint – Petersburg in 1994 (Denero, 2011). The Moscow market appeared just 4 years later in 1998 (Оbuhova, 2001). Today there are 201 Subway restaurants (Subway, 2011a) in 47 cities (Subway Russia, 2011a). The Russian Subway uses the social networks since July of 2009 in order to be in touch with the potential franchisee and clients of the restaurants, to increase the information knowledge about the franchising itself and the fast food Subway (Marketing manager Rus, personal communication, 2011–05-01).
INTRODUCTION • Research background With a mixture of fresh ingredients, a whole lot of customer service, and a dash of innovation, the SUBWAY® brand continues to be the leader of providing nutritious and delicious sandwiches the whole family will love (Pradhan 2007, p.402). And in the end of 2010, Subway had 33,749 restaurants worldwide, compared to McDonald’s 32,737 (wsj.com 2011). • Company profile SUBWAY restaurants first ventured outside North America when the first location opened in the small Middle Eastern island nation of Bahrain in December of 1984; since then, the SUBWAY concept has gone around the world, with restaurants opening from Argentina to Zambia. As of 15 June 2012, Subway has 36979 Restaurants in 100 Countries with 106 Restaurants in Malaysia; the restaurants are committed to offering high quality food and exceptional service. The SUBWAY brand is famous for its made-to-order sandwiches and salads.
Changing the consumer's vision to one that says sandwiches and crisps belong together at lunch time and the fact that crisps weren't sold next to sandwiches in stores are the main issues. The business problem is that the major retailers weren't positioning Walkers in the sandwich aisle. So although time-poor lunchtime shoppers were
Food Quality & Food Safety Food safety and food quality are some of the top needs at subway. They want to serve food that reliably meets the most elevated quality and safety levels – from the time it is produced, harvested or caught to when it is put into a sandwich or coleslaw(salad) in their eateries. To guarantee that the products they serve are constantly crisp and reasonably delivered, thee have stringent review/audit forms that they adhere to all through their supply network and also require that their suppliers' work hones meet their Merchant code of conduct. Their highest requirements for food safety guarantee that their clients are getting the quality the SUBWAY brand expects them to deliver. It starts with setting point by point product particulars followed by examination of tests pulled from distribution points
The age factor used by the target market of McDonalds is a family with dual income that does not have the time to prepare their food for their children, the workers who are having lunch and teens. Besides that, according to Schroder and McEachern (2005), global target market fast-food industry account for 79 percent is at age 17-25. The income factor used by McDonald target customers are upper-middle and lower income consumers. The Mac value offered by McDonalds will attract lower class customers to upper-middle customers. McDonald 's lunch meal RM5.95 has improved the product as it is attractive to upper-middle and even lower customers.
To separate Subway from (potential) imitators, Subway should have elevated level of differentiation or make some benefit for Subway’s customers such as a coupon or membership service. It can do their utmost for customer satisfaction and drive customer loyalty. Subway also could help people that are willing to set up a store but do not have the required money. For that purpose, Subway could expand and give credits to their future franchisees. As exchange they could get a higher part of the revenue than the usual fee until the debt is payed.