Subway Restaurants is the taking pigboat sandwich franchise in the United States and the universe with 20. 532 eating houses worldwide located in 72 states. Restaurant locations continue to increase twelvemonth over twelvemonth from an one-year rate of 4 per centum in 1999 to 14 per centum in 2003. Brand acknowledgment grows as market geographically expands. The new Tuscany Decor reinforces the thought of a fresh. healthy and great savoring menu points. Recent add-ons such as the Atkins friendly sandwich wraps should set up a stronger association between merely good savoring fast nutrient to now healthy savoring fast nutrient as concerns continue to turn about the increasing fleshiness jobs.
A diverse bill of fare continues to supply a healthy option to Burger ironss which continues to back up overall growing. Target markets continue to include persons with incomes over $ 55. 000. pupils. and immature professionals in high population centres. and persons concerned with their wellness including the corpulence.
With over control of over 59 per centum of the market. Subway’s closest rival continues to stay Quizno’s. Concern over their ability to gnaw Subway’s client base from older franchise “no frills” eating houses is a concern. A newer add-on to the pigboat sandwich market is Burger King with their assorted grilled poulet pigboat sandwiches on baguettes. With over 11. 000 eating houses. this could develop into a major menace.
Recommendations include concentrating selling study surveies on the ability of Quizno’s and Burger King to gnaw client base. Further rating is needed refering the consequences of test direct selling of vouchers through text messaging. The response rate for the 800 text messages sent out for free Subway sandwiches was 8 per centum. This is greater than the mean response to paper vouchers and could be a great avenue to aim the engineering dependent mark market.
Metro Restaurants Marketing Case Study
Subway was founded in 1965 in Bridgeport Connect by Fred Deluca and Dr. Peter Buck. Today Subway is the world’s largest pigboat sandwich concatenation with over 20. 500 shop locations in over 72 states. This growing form in the last 38 old ages has made Subway the 2nd largest fast nutrient concatenation behind McDonald’s. Entrepreneur magazine rates Subway the figure 1 franchise for 12 of the last 16 old ages. The franchise continues to be good received both nationally and internationally with growing in franchise eating houses up 14 per centum between 2002 and 2003. Subway continues to be the national leader in the franchise concern. The market continues to necessitate a healthy fast nutrient option to the national Burger ironss. Families need a more upscale dining experience as place cookery continues to worsen and wellness concerns addition. Subway is absolutely positioned with its new Tuscany decor eating houses that are bright. cheerful. and stress the fresh healthy bill of fare option.
One out of four grownups now consumes a fast nutrient repast per twenty-four hours. Internal selling studies have detailed information on Subway’s loyal clients. In add-on. parents now have a healthier option for kids’ repasts that include the fruit axial rotation up and juice instead than a cooky and sodium carbonate. This information will go on to be leveraged in selling runs and publicities. Needs and wants will go on to be monitored and new merchandise development will be guided by these study consequences.
Subway has locations across North America and services a diverse market with a really reliable bill of fare from one location to the following. Uniting with TCBY Yogurt shops has been an first-class add-on to spread out gross revenues to the same mark market. Subway has continued to remain loyal to the same market base throughout the old ages with small divergence. The success has come from spread outing its clasp on that market and increasing mean ingestion per client. With the Jarod run. the thought of eating Subway repasts more than one time a twenty-four hours and even up to 14 times a hebdomad became a practical construct.
The Burger. french friess. and a drink market will ever be at that place and is extremely competitory. Subway came in and has dominated the Burger alternate market with extended cognition of its mark client and clearly defined providing to that client. The age. economic. and behavioural groups targeted by Subway have demonstrated exceeding trueness to the eating house concatenation.
The profile demographics of the Subway client base include geographic. profile. and behavior factors:
Geographic: Each franchise is located within an country incorporating a high denseness population of professionals or pupils located within walking distance of the population and with a high visibleness location sooner in a location having high tiffin and dinner clip traffic. Corner locations are preferred. Strip promenades and indoor mall locations that place Subway in high traffic shopping countries are besides preferred.
*Students. immature professionals ( 18-39 ) . and parents with kids.
*Household with one-year income of $ 55. 000 and up.
*Those concerned about their wellness.
*”Overweight” grownups and kids.
*Eat out often.
*Concerned about wellness.
*Want quality and healthy fast nutrient with fresh ingredients.
*Want a convenient. fast but pleasant dining experience.
*Want a competitively priced repast compared to other fast nutrient dining.
Subway is supplying the traditional pigboat sandwich along with low fat and Atkins friendly ( low saccharide ) wraps to turn to the current wellness concerns with fleshiness in developed states. peculiarly the U. S. Fresh ingredients are used and offered as either take out or dining within a bright and friendly Tuscany decor ( for newer franchises ) .
Sub Sandwich Restaurant Competition
*Quizno’s: As a top rival. it is the figure 2 pigboat sandwich concatenation with over 2. 500 speedy service eating houses functioning oven adust signature bomber or construct your ain options. Other menu points include salads. soups and dessert points. Advanced and ask foring shop decor provide a pleasant dining experience and is considered strong completion to our newer Tuscany eating house decor. Quizno’s is considered a strong menace to our older non frills franchise locations. They have both national and international locations.
*Blimpie: The national figure 3 pigboat sandwich concatenation with over 1. 500 locations functioning hot and cold ( but no cook ) pigboat and wrap manner sandwiches. salads. and soups. They have introduced a Blimpie Carb Counter Menu. The eating house decor is no frills hence no existent menace sing dining experience. Blimpie actively markets to households and kids with their Busy Blimpie activity web page and Ecards. They have moved into offering sandwiches in peddling machines. Franchise locations include both national and international locations.
*Miami Subs & A ; Grill: Not a nationally recognized trade name at this clip. Over 120 restaurant locations in more than 12 provinces and Puerto Rico. Offers hot and cold bomber sandwiches. cheesesteak sandwiches. gyros and salads. Currently co branding in some locations offering hot Canis familiariss from Nathan’s and chicken from Kenny Rogers Rosters. Slightly “fresher” decor–more pleasant than Blimpie. Not a strong participant in the healthy fast nutrient selling at this clip.
National Fast Food Restaurant Competition
*McDonald’s: As a top rival. the world’s figure 1 fast nutrient company has over 30. 000 eating houses in over 120 states. Specializing in standardised processs acquiring nutrient from approved providers. they are spread outing their bill of fare offering healthy options such as salads. While providing to households with kids. their continued offering of Burgers and french friess does non crossover good into the “healthy fast food” market. Kids’ repasts are marketed utilizing Ronald McDonald. McDonald’s has a high profile in the community and with parents through the Ronald McDonald House Charities. An copiousness of older franchise locations with many out of day of the month and no frills decor. it is equal to our dining experience expect when compared to our newer Tuscany decor. Still considered a large challenge to our franchise.
*Burger King: The figure 2 beefburger concatenation still offering the Whopper. there are over 11. 000 eating houses worldwide. With “The Fire’s Ready. ” selling run. the chief bill of fare consists of fire grilled beef and poulet Burgers. french friess. salads and breakfast points. However. they now offer assorted grilled poulet pigboat sandwiches on baguettes and this may be a development of concern. The Whopper sandwich is still popular. with other poulet sandwiches. salads and breakfast points being offered. The dining decor is considered somewhat more gratifying than McDonald’s.
*Wendy’s: The figure 3 Burger concatenation. Wendy’s international has approximately 6. 300 eating houses worldwide. With its signature Burgers. french friess and fried poulet sandwiches. it is marketing “Quality is Our Recipe” and non forcing a “healthy fast food” option. Baked murphies. chili and salads add more diverseness to the bill of fare with a dining experience a little betterment over McDonald’s. Directed towards households. kids’ repasts are marketed utilizing Wendy and Clifford the large ruddy Canis familiaris. May be more of a menace if salad bars are reintroduced.
*Taco Bell: With over 7. 000 locations and 120 of these located internationally. the chief focal point is fresh cooked Mexican manner nutrient with chopped cheese. boodle. beans. poulet and land beef as the chief ingredients. Presently there is no selling run sing it as a healthy nutrient. They are keeping their leading in the Mexican manner fast nutrient focal point.
The undermentioned SWOT analysis nowadayss Subway’s internal cardinal strengths and failings within Subway Restaurant franchise. and the external chances and menaces confronting the company. A more elaborate SWOT is presented in Appendix A.
*Large figure of shops with good market incursion and strong trade name individuality.
*Successful selling to the demographic group of individual and in-between to upper category incomes.
*The new Tuscany decor is a great new retail infinite that appears to households.
*Continued cutting border healthy fast nutrient merchandises with the low fat and Atkins friendly sandwich wraps.
*Pricing remains competitory with other fast nutrient franchises.
*Some shops may be located excessively close together cut downing the possible geographical market.
*Demographics weak in northeast U. S. and with seniors nationally.
*Older shops have “no frills” decor and some are sing jobs with storage infinite for extra ingredients.
*Product quality is hapless in some franchises depending on direction.
*The selling covering with “overweight” issues embarrass some clients.
*Room for growing continues in sandwich market.
*Continue to take advantage of the national compulsion with healthier nutrients.
*Expand into non traditional shop locations ( i. e. convenience shops and universities ) .
*Takeout dining is go oning to increase as place cookery continues to diminish increasing the possible market–test publicities for “take place meals” for busy commuters.
*Expand the advertisement market by utilizing clip sensitive electronic vouchers.
*Expand venture with NASCAR. and sponsorship with the American Heart Walk against bosom disease.
*The continued growing of Quizno’s and the new visual aspect of pigboat sandwiches from Burger King.
*Low barriers to entry. low net income borders and similar merchandises by new competition.
*Franchisees vs. franchisers ( battle over concern control ) .
*Completion over community charities as selling scheme for advertizements.
*Concerns over the taint with beef merchandises in the U. S.
*An increasing educated consumer and increasing gross revenues of organic nutrients since the transition of the U. S. Organic Act in 2001.
Subway Restaurants maintains its leading in being named the figure one franchise in 2004. With accent on the healthy fast nutrient option. Subway expects to go on to have a favourable response to the Atkins friendly wraps. and the low fat pigboat sandwiches. The Jared publicities continue to convey new clients in looking for a fitter option. The following are features of the merchandises:
*Newer upscale dining experience with the Tuscany manner decor.
*Bright. fresh exposures and bill of fare shows stressing the healthy fresh bill of fare points.
*Low fat bomber sandwiches and Atkins friendly wraps to turn to current weight and wellness concerns.
*Sandwiches can be made to the customers’ specifications utilizing great quality ingredients.
Extensive franchise support and preparation allows a quality and consistent dining experience for the client along with competitory pricing. Franchise eating houses at a glimpse:
*Location: An upscale traditional fast-food eating house along with some nontraditional mercantile establishments such as airdromes and colleges in high denseness population countries.
*Size: Traditionally franchise mercantile establishments are from 1. 200 to 2. 000 square pess.
*Employees: Average 12 to 18 both full- and parttime.
*Seating: 50 to 60.
*Transactions: 65 % dine in. 35 % dine out.
Keies to Success
Franchise locations and pooled attempts in regional ad runs are critical to trade name success. Additionally. wellness and weight concerns should go on to drive consumer demand for Atkins friendly and low fat pigboat sandwiches.
*Maintain high daylight and eventide populations for new franchise locations.
*Continue pooled ad runs and accent on healthy options.
*Continue educational visits and seminars on healthy life advancing Jared’s success.
*Concern over wellness and weight issues in the U. S. should go on demand in this market.
*Pricing is competitory.
Subway Restaurants has a 59. 9 percent portion of the of the non Burger sandwich market. This can be properties to the figure of restaurant locations. over 20. 500. which is eight times the figure of the nearest rival. Quizno’s. Sums gross revenues continue to mount as the entire figure of locations increased by 14 per centum in 2003 over 2002. Entire market impregnation has evidently non been reached.
*Continue to supervise Quizno’s market growing and merchandise development.
*Provide a more focus selling research attempt to find if the Quizno’s upscale dining decor is deviating clients from Subway when a Quizno’s eating house is located near our older ( no frills decor ) franchise eating houses. It may propose the upgrading of older franchises would forestall eroding of current client base.
*Monitor the grilled poulet pigboat sandwiches on baguettes being offered by Burger King. With over 11. 000 restaurant locations. this may go a menace to our non Burger sandwich market. particularly if clients can particular order a lower fat version of the sandwich. More focussed market research may be needed in this country.
*Continue to supervise the wellness concerns and fleshiness issues in the popular imperativeness. A recent Wall Street Journal article emphasizes the demand for increased fibre in the American diet to protect against the increasing rate of diverticulitis and bosom disease. The over processing of nutrients has resulted in an mean U. S. ingestion of 14. 6 gms of fiber per twenty-four hours compared to the recommended 25 gms per twenty-four hours for an grownup. Changes to our bread preparations may necessitate to be considered to turn to this concern.
*Continue to supervise wellness issues refering the meat packing industry and our providers. With the continued rapid growing of organic nutrients gross revenues in the U. S. and the transition of the U. S. Organic Food Act in 2001. consumers will merely go on to go more educated about sanitation. nutrient additives. and wellness issues related to sandwich meats. staff of lifes and green goods.
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