Subway Marketing report Essay

Executive Summary
Subway in Financial Year 2013-2014 has witness 1. 32 billion gross in Australia market. Since Subway has many ambitious programs to spread out its concern and occupy bigger market portion. it is important for Subway to suggest a sustainable long term program to spread out its domestic market portion by analyzing the external and internal environment in which new merchandise is to be introduced. This paper is taking to analyze the market environment by utilizing SWOT analysis and look into the potencies of the new merchandise with recommendations sing the elements and selling mix.

Introduction

The trade name Subway is owned by Subway Systems Australia Pty Ltd. which maps as one of the planetary franchisors and aids with Australian eating house aiming the domestic selling ( Subway 2014 ) . Originated in the US. Subway entered the Australian market in 1988. Today. Australia has become one of the largest markets outside of the U. S. There are over 1. 300 shops national broad ( Subway 2014 ) . Subway has made a batch of attempts in heightening the public attending of wellness diet.

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It has gained its market portion over the traditionally fast nutrient such as McDonald’s and KFC. Its merchandises are most celebrated for low in fat and high in fiber. with merely six gms of fat or less ( Subway 2014 ) . Current Market Share

SWOT Analysis
The SWOT analysis analyses the strengths. failings. chances and menaces ( La Trobe Business School 2013 ) .

A good SWOT analysis can help the company developing a strategic program to assist placing the cardinal factors of the internal and external environment of a company ( La Trobe Business School 2013 ) . It is noticed that Subway is confronting a batch of chances in the fast nutrient industry with a batch of internal and external challenges. Table 1 SWOT analysis of the Subway retail merchant concatenation and its new merchandises Flatizza ( Subway 2014 ) . Strengths ( S )

Failings ( W )
Healthy. fresh nutrient. the new merchandise is fresh cooked
Bargain. the new merchandise is inexpensive
Number of shops and channels. the Subway retail concatenation is spread outing Customizable bill of fare. with choice of different staff of life. meat and veggies

Service quality is inconsistent from shop to hive away
Long waiting line under high client flow. one teller means lower efficiency and lowered client satisfaction evaluations Appearance of merchandises are out dated
Limited siting handiness in most shops
No drive-through option. hapless client experiences

Opportunities ( O )
Menaces ( T )
CSR accomplishments. Subway has been positively engaged in some of the Corporate Social Responsibility activities Decoration to promote more dine-in clients.
Improve Customer Service Model. supply more people to function the client. increase the client capableness Improve franchisee dealingss. with a control of centre distribution Centre. the quality of the nutrient can be guaranteed Expand packaged offerings. alternatively of traditional paper bundle. box bundle and other bundles can be used. Continue to revise and review bill of fare offerings

Competition leads lessenings in their monetary values and hence decreases the net incomes. the Subway nutrient is besides at lower monetary value than its major rivals. More upscale sandwich stores in the local market. the Australian people are more likely to hold dine-in nutrient unless they are at work and don’t have excessively much clip Economy downswing. the retail and nutrient industry in Australia is sing slow rate of growing Competition from other big fast nutrient companies such as McDonald’s and KFC The sandwich store invests in another country which is non its forte is a bold move. if the merchandise is non successful. it will significant damage other merchandises as good and impact the net incomes. Findingss

Internal environment: there are many hazards bing in Subway’s internal environments. First of all. the traditional client service theoretical account has shown important restrictions on the client volume. The one waiting line theoretical account means merely one client can be served. The client experience could be downgraded with long waiting clip. It is extremely likely that clients choose the eating house with more check-out procedures and more staff. Second. the visual aspect of Subway shop and its merchandises are out dated. Unlike other fast nutrient retail merchant. the visual aspect of the bundle has non been changed with the alteration of social environment. McDonald’s. on the other manus. supports presenting new bundles and new visual aspects of its merchandises in response to major events to force its sale run. For illustration. McDonald’s had introduced the World Cup 2010 bill of fare sets ( McDonald’s 2010 ) . In add-on. McDonald’s has different bundles on which has specified merchandise information such as ingredients and Calories.

The 3rd determination in the internal environment is that Subway has shown incompatibility in its client service quality and nutrient quality. Since each Subway shop is runing separately. there is a great hazard of lacking of supervising. which might ensue cases and other negative effects. The acknowledgment of the shop could be damaged if one shop has involved with problems. The incompatibilities in client service and nutrient quality have mostly magnified the hazard ( La Trobe Business School 2013 ) . External environment: The external environment is dominant by Subway’s advocator of healthy life style from the nutrient. diet. policy and its market enlargement schemes. The advocator of low fat. high fiber merchandises have significantly increased the trade name acknowledgment and the corporate societal duty fulfillment.

The Australia market has responded Subway’s inducement with increase in its gross revenues and net income. However. with the increasing competition in the domestic fast nutrient market. the healthy construct has been adopted by many fast nutrient companies. McDonald’s labelled the Calories of all the merchandises and provided more options in its salads and drinks ( George Institute 2014 ) . KFC committed with a 10 per cent decrease in Na ( George Institute 2014 ) . Domino’s Pizza besides introduced less sodium pizza with more veggies in its ingredients. The increasing competition has squizzed the net income border of the merchandises. Subway seems to hold fewer options to alter its bill of fare sets. the lower monetary value. which has been used as an advantage in the competition. now besides becomes a deficit that brings negative impacts to subway. Recommendations

Target market
One large potency market identified in the instance survey is the kids market. As indicated in the SWOT analysis. it is found that Subway doesn’t have kids friendly installations or kids friendly repasts. In order to derive its market portion. it is of import for Subway to pull more attendings from kids by presenting kids friendly menu set. The chief rivals of Subway in the market. such as KFC and McDonald’s. hold already had value repast for childs. The advantage of kids friendly repast is non merely aiming the kids entirely. but besides. by conveying the kids to the shops ; it is likely that the grownups will besides buy the nutrient. By making so. Subway can exponentially increase the figure of its clients. New merchandise description and Marketing Mix

Merchandise
The new merchandise of Subway. Flatizza. can increase and consolidate the trueness of clients. Furthermore. it can convey more immature clients to the shop. because it is little and fast. most parents can bask the repast with their childs without a long waiting clip. It besides helps Subway to derive more net income and higher market portion. Flatizza looks like a little pizza. which has the convenience for take away. In add-on. it bundle besides have to protect the quality of Flatizza and allow the Flatizza maintain fresh.

Monetary value
Another characteristic of this merchandise is that the monetary value is improbably low. The field cheese is $ 2. 50. vegetable is $ 2. 50. pepperoni is $ 3. 50. and spicy Italian is $ 3. 50. Most kids are low-cost with this merchandise. Furthermore. for grownups and seniors. this merchandise can be regarded as bite when they are hungry. This monetary value scope is much lower than its competitor’s monetary value. which will assist Subway to derive a larger market portion. Topographic point

Topographic point will aim at big vicinity and communities where there are a batch of kids. The chief mark of this merchandise is kids ; hence. a shop stopping point to the resort areas and Parkss will convey important benefits to the franchise. Promotion

The publicity method of this merchandise should emphasis on the monetary value to pull more clients. For illustration. Subway can do a verifier for free Flatizza. It can be uploaded to Subway Facebook page or Twitter. and other societal networking tools. Customer value proposition

A well-constructed and delivered client value proposition can do a important part to concern scheme and public presentation ( Anderson et al. 2006 ) . First of all. in Subway. each value proposition must be typical. This requires that the new merchandise must be superior to Subway’s competitor’s merchandises. Second. the value propositions must be mensurable and based on touchable properties ( La Trobe Business School 2013 ) ; it should be quantified in pecuniary terns ( Anderson et al. 2006 ) . At in conclusion. the client value proposition must be sustainable. The company image and trade name should be good maintained. Justification of the pick of new merchandise

The strength of the new merchandise is that it maintains the construct of healthy and fresh nutrient and adds some new elements in it. The traditional sandwiches are normally cold when they are served. in Subway. one job is that there is fewer hot nutrient. When some clients are looking for hot nutrient. they will jump Subway for other options. With Flatizza. Subway can successfully derive more attending from these clients. The monetary value of Flatizza is still a deal ; it maintains the monetary value advantages of Subway to its rivals. The chance of the merchandise has made some betterment in its bundle. which has been criticized for a piece. The new bundle is able to go forth a better feeling to the clients and supply a more friendly takeout option.

The container of the Flatizza is much handy than traditional paper bundle. It besides helps better the bill of fare option. Since the bill of fare in Subway has been pointed out to be stalled. this new merchandise will spread out its Market and derive a batch of market portion from its rival such as Domino’s and Pizza Hut. The new merchandise. nevertheless. is missing of fight with McDonald’s Burgers and KFC’s fried poulet. It doesn’t better the state of affairs that Subway has been criticised for its meat quality. The new merchandise besides needs the market to analyze its hereafter. the thought showing and concern analysis have concluded that Flatizza will derive more market portion and set up new Subway image. But the merchandise proving and market public presentation demands to be carefully examined in the close hereafter.

Mention

Anderson. J. C. Narus. J. A and Rossum. W. V 2006 ‘Customer Value Propositions in Business Markets’ . Harvard Business Review. vol. 84. issue. 3. pp. 90. Gargano. S 2014. ‘Fast Food Services in Australia’ . IBISWorld Industry Report H4512. viewed 2nd May 2014. Available: hypertext transfer protocol: //clients1. ibisworld. com. au/reports/au/industry/default. aspx? entid=2005 George Institute 2014. ‘Fast nutrients now lower in salt’ . . viewed 2nd May 2014. Available: hypertext transfer protocol: //www. georgeinstitute. org. au/media-releases/fast-foods-now-lower-in-salt La Trobe Business School 2013. Business Foundations: LaTrobe Compilation. La Trobe Business School. Pearson. ISBN 9781486013753. McDonald’s 2010. ‘McDonald’s Connects Customers around the World with FIFA World Cup ( TM ) Excitement’ . Media McDonald’s. Subway 2014. ‘Franchisee Information- Facts and History’ . Subway. viewed 2nd May 2014. Available: hypertext transfer protocol: //www. metro. com. au/About/Facts-and-History