Strategic Planing And Development Of Subway Marketing Essay

1541 words (6 pages) Essay in Marketing

5/12/16 Marketing Reference this

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Subway is American based company, working in food industry. Franchise based subway company is famous for sell sandwich and salads. It’s working under Doctor’s Associates Inc. (DAI). According to year 2010, Subway Company is the fastest growing franchise in the all over world, working with 35,000 restaurants in 97 countries. Subway franchise is the second largest restaurant world-wide, after Yum! Brands. According to 2010, company earned $15.2 billion revenue. Subway Company is expanding its franchises at very high rate. Subway Company is also sponsoring Subway Fresh Fit 500 which was held in Phoenix Raceway, Pro-cycling team and baseball teams.

History of Subway

Originally, subway was founded in 1965; Peter Buck borrowed $1000 to start his own sandwich business. He was only 17 years old, when he started his shop under name Pete’s Submarines. Pete’s Submarines was promoted through radio advertisement. Company’s name has similarity with Pizza Marines, so he renamed Pete’s subs. After a sometime, company adopted new name Subway.

Subway is producing approximately $15.2 billion in every year. Company’s main head quarter is operating in USA. Subway is also investing in education, increasing its colleges and university. Subway was ranked 3rd in fastest growing franchise in market and ranked 1st franchise in world wide. Subway is also very popular fast food industry in USA according to American poll.

Subway Company is more famous for its main product, submarine sandwich. Company is also selling cookies, muffins and Danishes. In the year 2009, Zagat Fast Food Survey’ also ranked the Subway company is providing the healthy food and also categorized the best and fast service to its customers.

Mission and Vision of Subway

” To provide the tool and knowledge to allow entrepreneurs to successfully compete in the QSR industry worldwide by consistently offering value to consumers through providing great tasting food for them and made the way they like it”.

In the mission statement, Subway Company is showing sincerity towards its customers. Company is providing the fresh quality food to its customers and also serving in clean environment with very friendly and fast employees. Subway Company’s mission is also carrying useful tools and useful knowledge, which allow to businessmen to compete in neck-cut competition, offering great taste food, the way customers want it and like it. There is great vision of company towards customers, competitors and its employees.

We are dedicated to customer satisfaction by offering healthy food with excellent service.

We look for improvement in all operations.

We find the worthiness of sense of importance and give emphasis to an innovative approach to business.

We are expecting a mutual understanding and fairness to all our business activities.

Our success depends upon the initiative, which we like to take individual.

We have ability to work as a strong team.

Competitors of Subway Company

There is always a giant competitor market for very business. Competition is increasing day by day, sandwich places are not only the competitors of Subway, but there are also big giant industries in fast food chain. Burger King and McDonald’s are main competitors of Subway. In 2010, Domino’s Pizza (Pizza Delivery Company) also introduced oven-baked subs in the market. There are some main competitors:



Burger King


Domino’s Pizza

Quiz no is the biggest competitors of Subway. It is the second largest sandwich production company after subway, in North America. Quizno’s eat-in business strategy is attracting more customers, with a open choice of products like fresh-made subs, salads, pasta dinner. They are making 65 percent sales from eat-in business. Quiznos average annual sales are$450,000.

Arby’s American based company founded in 1964 with more than 3000 branches, also a competitor for subway in sandwich market in US, selling same products like sandwiches, salads, wraps with really pushing its aggressively marketing strategies to make more sells in market. An average annual sale of Arby’s is approximately 1.6 millions.

There are some competitors in market, who has competition with Subway Company, Miami Subs, Jerry’s Subs and Pizza, Blimpie, D’Angelo and Great Steak & Fry etc., Making sandwiches business is getting popular in fast food chain, easy to prepare within less time. You need a very small amount of investment to start business in making sandwich and you can generate a big amount of profit.

Stakeholders and Subway Company

Subway Company is a private owned business; it’s not registered in stock market. Subway is held by Doctors Association Inc. Company is not trading with any stock exchange market.

Swot Analysis of Subway Company

From the past decade, success in sandwich business segment has been increased double comparative any other fast food business. Subway is offering very easy entrance in market. Many other food restaurants are also seeking the opportunities to start subs in their menus. We can analysis Subway’s market position through the SWOT analysis strategy. SWOT analysis is planning strategy, where we can evaluate a business from its internal and external factors. SWOT can be categorized in two parts:

Internal Factors: When we evaluate a business within its internal factors, we compare its strengths against its weakness.

External Factors: Opportunities and Threats are helpful to evaluate your business within market situation.


Subway is giving the best growing opportunities to enter into food business. According to franchise analysis, with a less amount of investment can give to start in market comparative others like Mc Donald’s, Burger King’s, Domino’s etc. In 2010, Subway ranked 1st as global growing franchise in Entrepreneur magazine.

Subway offers fresh and healthy food in different types of subs, even some doctor’s advice to eat its nutrition food. Subway is very popular for lunch user’s customers. “Top service” and “Healthy option” ranked received to Subway from Zagat Survey

Subway is popular to serve its customers at very fast pace with friendly staff. A customized sub takes only one minute to make. Fast service helps to attract more customers in business.


Although Subway is fast growing franchise chain in food business, but employee’s turnover is very high rate in the company.

Subway is offering eat-in service to its customers, ignoring delivery segment.

Subway is also offering only subs in market, other business are getting profits from different kind of food verities.


New coming technology helps to improve its operations to compete neck-cut competition in market.

Expanding global business is creating more places to enter in different markets.

These days customers are also very emphasizes on their living-standards, high level of living-standard also gives the positive growth to business.


New entrance of sandwich making business is the biggest threat to Subway. It creates high level of competition in market.

Micro-Economy condition of also create a threat to subway; crisis of 2007 to 2009 hit all businesses very badly.

Strategies of Subway Company

Subway Company is adopting lots of strategies to expand its business. We can analysis its marketing strategy of Subway through 4Ps. 4Ps strategy is very famous strategy, product, price, place and promotions.

Product Strategy:

Subway is famous for its fresh bread. Company is more focusing to maintain its standard to its fresh product (bread). Product strategy is playing a vital role for any business. Subway products its fresh bread is making its brand name strong in market. They introduce and sell its product according to customer’s requirements

Price Strategy:

Subway Company’s price strategy is helping to maintain all prices according to competition. Competitive price also attract more customers in market and also contribution to create more profitability to business.

Place Strategy:

Location of any business affects its long running strategy. Subway opened its more than 35,000 franchise worldwide. Company try to open shops near shopping centres, school and college etc.

Promotion Strategy:

Subway is adopting lots of activities to promote its business. Sponsorships with movie-makers and toy making company will create a more space in market. Subway’s 99 percent advertisement on coming on televisions, radios etc. Company is spending huge amount on its advertisement, according to a survey company spending $38.7 millions, if we compare with Arby’s and Blimpie they are spending $26.3 million and $ 2million respectively.


Subway is the leader in selling sandwich market, offering to eat a healthy food. Subway is competing in high competitive market with its strategic marketing plans. Subway Company is registered under DAI, which private owned Business Company, operating its main operations in Milford. Subway is becoming famous for its healthy food as Subway Diet. They are making new strategies to expand its business and more focusing on product strategy to create market competition. Subway’s fresh bread(product) is making itself strong position in global competition.

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