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Marketing Concepts And Principles Of Success Of Subway Marketing Essay


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Marketing analysis consists of finding out the group of potential customers or consumers as well as the market you are targeting. we need to find out their potential needs how can we develop and modify the product or services to develop their needs. We should also know the preferable usage the customer might have for the product or service.

We should also be aware of the competitors operation throughout the market that is their pricing policy so that we can be one step ahead of our competitors. We should also be careful about the distribution of the product and services in order to make sure it reaches the right target of the market both local and international. This report is written by studying Subway a leading sandwich shop in Britain.


The story begins in Bridgeport, Connecticut, USA during the summer of 1965. Fred DeLuca, an ambitious 17-year-old high school graduate, was looking for a way to make enough money to pay for his university tuition. The solution came at a BBQ during a conversation with a family friend, Dr. Peter Buck. Dr. Buck suggested to Fred that he open a submarine sandwich shop - having seen a sandwich shop in his hometown experience huge success. 

With a $1,000 loan from Dr. Buck, the partnership was formed and Pete's Super Submarines opened in August 1965. The first year was a challenge and a learning experience for the young entrepreneurs.

They opened their second location a year later and quickly realised that marketing and visibility were going to be key factors in the success of the business - the third outlet was in a highly visible location and it's still serving sandwiches today. The name was shortened from Pete's Super Submarines to SUBWAY® and the familiar bright yellow logo was introduced. 

The next step was to formulate a business plan that outlined the SUBWAY® chain's goals. In an effort to reach those goals, SUBWAY® outlets began franchising, giving others the opportunity to succeed in their own business venture. The first SUBWAY® franchise opened in Connecticut in 1974.

Literature Review

Compare alternative definitions of marketing.(P1)

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.(kotler 2003).

Marketing is the management process which identifies,anticipates and supplies customer requirements,efficiently and profitably.(Chartered Institute of Marketing).

Marketing is the process of planning and executing the conception, pricing,promotion and distribution of ideas,goods and services to create exchange and satisfy international and organizational objects.(AMA 2004).

As far as we can see in the above definitions that all of them is trying to say the same thing that it is a process. Some say it is a social process some say it is a planning process. I would define marketing as a way to reach the consumers as well as customers as AMA - American Marketing 2004 has the definition that it is the perfect finishing of pricing promotion and distribution of ideas. I agree with that definition.

Identify the main characteristics of marketing oriented organizations.(P2)

All marketing oriented organizations develop their business around the customer.

They focus on the environment and make a key factor in their decision making

Ans:there are four main characteristics which explain the marketing oriented organizations. They are-1)Shared values.




3)Strategy-Every market oriented company should have a good long term strategy. This is because the company will have a target of gaining its ultimate goal that is to be a market leader that is why from the first they should have a strong strategy which is understandable and flexible also.

4)Stakeholders-Stakeholders are those who has a direct or indirect stake which can be affected by the organisation's behaviour or activity.For an organization stakeholders are a very sensitive issue.They should be careful when they make any decisions because the decision must be taken in consideration with the view point of the stakeholders.If the stakeholders are unhappy then this might affect the organization very badly.

3:Explain the various elements of marketing concept.(P3)

Team work and Integrated approach to business


Customer orientation

Identify and assess the benefits and costs of marketing approach.P4

Ans: the cost and benefits of marketing approach are-


1Regular marketing research-Company needs to do regular market research in order to stay updated according to the market.

2)Building excellent services-Company needs to give a good service both with the suppliers and the customers in order to build a goodwill for the company.

3)distribution-Company needs to be very particular in terms of the distribution costs.if the distribution cost is high it might affect them in the long run in terms of increasing the total cost.


1)Profit-A good marketing approach means that it is going to hit the right point which should be the profit.

2)Customer loyalty and trust-Customer loyalty should be one of the key benefit. loyalty comes with the trust which is an important factor. when a customer trusts a company the customer will recommend it to the others. that is how

the company will increase its benefit from the marketing approach.

P5:Identify and explain macro and micro environmental factors which influence marketing decisions.


Macro environmental factors which influence marketing decisions are(P5/M2)

Economic Environment

It is best described as having the "factors that affect consumer buying power and spending patterns" (Kotler et al 1998). These factors include income, levels of employment, inflation, value of the currency and many others.

The income is a very important factor in terms of macro-environment as any customer because the customer should have the purchasing power to buy the product. If they have the purchasing power they are most likely going to buy at subway. Value of the currency is an important factor. If the value fluctuates then we cannot value the correct value of sub according to the market.




Micro environmental factors which influence marketing decisions are-

1)Customers-Organisations survive by satisfying the needs, wants and providing the benefits of the customers. For e.g-Subway gives special offers to the customers like the "sub of the day".

2)Employees-Employing the correct staff and keeping this staff motivated is a very important part in terms of strategic planning process of the organization. Training and development is an important factor in subway in terms of getting a competitive edge than any other fast food joint.

3)Suppliers- Keeping a good relationship with the supplier is a very important factor. Prices of raw materials might increase. A good relationship ensures that they get the products of good quality at a competitive price.

P6:Propose segmentation criteria to be used for two products in different markets.

Ans: Market segmentation is the fundamental component of a market-based strategy. A market segment is a specific group of customers with distinctive customer needs, purchase behaviours and different descriptive characteristics.(Best 2000).

We can talk about the halal stores in subway and the general store of subway. They are two products in different markets. One is aimed generally. Another one is specially aimed at the muslim customers who wants to eat at subway.

P7:Outline the factors which influence the choice of targeting strategy.

Ans: targeting strategy is the selection of potential customers to whom the business wants to target them to sell products or service.

Factors influencing the choice of targeting strategy are-

1)Market's diversity- Market goes on to take different routes like the case of subway which is diversifying their sandwich products.

2)The level of competition-Subway has to ensure their goal beside the level of competition that they are facing. This is why they are targeting health conscious customers by introducing low fat subs like chicken teriyaki. They also use the slogan called "Eat Fresh" to target people who want to eat out but wants to avoid junk food.

8)Explain how buyer behavior affects marketing activities in two different buying situations.

Ans: Buyer behavior affects marketing activities in many situations. One may be the way the customer's lifestyle is. For e.g.-if the customer is an marketing officer he is more likely to buy formal clothes than a plumber who needs informal clothes like jeans because it will be more suitable for him to work with a pair of jeans.

Another situation might be a psychological factors. For e.g-customers of mark and spencer might belief that m&s products are very much better than the others. This might influence them to buy that product.

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