Subway Marketing Strategy – Marketing Strategy of Subway: 1965, 1965, the company Subway was established in 1965. It is one of the world’s biggest Submarine sandwich fast-service restaurant chains with over 45,000 locations across the globe. Subway is well-known for its healthy and fresh MTO (Made-to-order) vegetarian food items since the beginning.
Offering clean fast food items that provide excellent customer service and expanding its outlets has helped Subway Subway in becoming the no. one fast-food chain worldwide.
Subway At A Glance – Marketing Strategy of Subway
Company : Subway
CEO: John Chidsey
Founder: Fred DeLuca | Peter Buck
Year founded: August 28, 1965, Bridgeport, CT
Headquarters: Milford, CT
Annual Revenue: US$16.1 billion
Number of employees : 5,000
Products & Services: Submarine sandwiches Pizzas (some locations) Salads
Subway Fun Facts: A recent high school graduate, 17 year old Fred DeLuca, and family friend Dr. Peter Buck team up to open their first submarine sandwich shop in Bridgeport, Connecticut. Originally called “Pete’s Super Submarines,” they sell 312 sandwiches the first day.
Marketing Strategy of Subway
Subway’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Subway? Let us discuss.
Segmentation, Targeting, Positioning – Subway Marketing Strategy
Subway utilizes a mixture of demographic and geographic segments to ensure that its items are better suited to its particular segment of customers.
The biggest single-brand restaurant chain employs a non-differenced targeted method to create menus and services based on the preferences of its customers.
It utilizes a values-based positioning strategy to build a lasting image of the brand in the minds of consumers who are likely to purchase.
Subway Mission Statement
“To be the world’s favorite destination for discovering great value and unique selection.”
Subway Vision Statement
“To become no. 1 in quick-service restaurants worldwide while maintaining the taste & freshness”
Competitive Advantage – Subway Marketing Strategy
A significant number of chains worldwide:
The brand Subway is part of Doctor Associates and collects 8 percent of its revenues from its 45000+ franchised locations around the globe, with locations in more than 120 countries.
No or low operational costs:
Doctor Associates does not own any franchised outlets, which shields them from loss or the financial burden of operating costs.
BCG Matrix – Subway Marketing Strategy
Subway’s sandwich and salad shop Subway provides fresh vegetable and non-veg options around the world.
Subway’s submarine sandwiches and salads served at Subway are the main attractions in the BCG matrix while non-veg menu items and baked products such as doughnuts, and muffins aren’t included in the BCG matrix because of the presence of a huge amount of players in the market.
Distribution Strategy – Subway Marketing Strategy
Subway is the biggest chain operator in the world. has more than 45000 worldwide. All of them are operated under the franchise model. The owner’s firm Doctor’s Associates collects 8% of the earnings for each franchise.
Brand equity – Subway Marketing Strategy
In the top ten list of important brands around the globe, the subway was ranked at 87th position (May 2016, report). The aggressive way of advertising products and services across different channels has assisted subway to increase its exposure within its world.
Competitive Analysis – Subway Marketing Strategy
Fast food restaurants are putting the edge on Subway however, due to its specialized advertising strategies that emphasize healthy eating the quality of food, its taste, and other health benefits Subway can gain long-term competitive advantages.
Market Analysis – Subway Marketing Strategy
The fast-food industry is saturated with multinational corporations and local food chains battling for the other’s market share. Subway with its 45000+ outlets all over the world is the largest company in this QSR business (Quick Service Restaurants) as well as ahead of chains such as McDonald’s, KFC Dominos, and many more.
Changes in habits of living and health concerns as well as changing eating habits and rising health awareness harm the growth of businesses in this field
Customer Analysis – Subway Marketing Strategy
Customers from Subway are health-conscious people who are in the age range between 15 and 40 years old and enjoy having fun with their families, friends as well as loved ones. Subway is a popular choice for younger people who enjoy socializing and are at college or in school.
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