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Subway marketing strategy composition

1)Industry examination

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a. Definition of the sector

The sector is the fast food industry (“la restauration rapide”). I would establish this market as a indicate of consuming food where the purpose is to consume quickly and have the possibility to adopt away. It is affordable. The most served food is Hamburgers, sandwiches, fries, soft drink although also hot dog, pizza, palabrota or sushi.

The yield of the market increased for 66% in 7 years and reach thirty-two, 7 billion euros this year. This turnover still has recently been affected by the crisis.

Because the average amount of cash spent in the marketplace decreased slightly. And the Sandwiches segment provides decreased in number of sandwich sold although has an raising turnover. But actually, the sandwich market took benefit of the problems and improves its market share. They stand for 20% from the fast food marketplace with 6th, 4 billion dollars euros. Also, 40% from the turnover of the outdoor ingesting is made with fast food.

The fast food industry ought to keep increasing with the advancement the street snack.

This can be a real success for brand like Juju’s (fruit juice and smoothies), we love boon (yogurt and ice cream), sushiju (a pickup truck of sushi) or Elevado café. « Mobile fast food store » are success because inside the fast food industry 50% of the food bought are to eliminate.

b. Marketplace trends in the last three years

Below are a few of the tendencies of the junk food market in France.

First, it’s important that the consumer started to be very demanding. He desires to have decision and want to eat in restaurant to don’t have only one product. The other require is that the buyer want to have everywhere (cinema, supermarket, gas station, train station, …) and at any time. Such as restaurant that close for 2 pm loose a whole lot of consumer. Because the economical context is not easy and the elevating environmental concern the consumers behavior changed. One example is we are changing our diet so we could adapt to the new work schedule, the increasing moments of transport, the shortening time of the break, the elevating nomadism, people eat outdoors and have a fraction of the time. The Second primary trend is the fact, fast food sequence needs to be very clear in their placing. They can’t always be the best as well as the cheapest concurrently. French buyer won’t trust a cheap merchandise; it’s bad quality for these people. Customers are incredibly demanding with regards to the quality standards. Fast food restaurant really tries to position themselves as good meals and not processed foods like many people use for think. Indeed, they try to offer better food with salad, juice …

Last but not least the main craze is: more quickly (simple and easy to eat), healthier, and cheaper.

An extremely interesting pattern is that a whole lot of cafe tend to “frenchenize” their give, in other word their adjust their merchandise to the marketplace and it seems like to function pretty well. For example McDonald’s had to create a France menu to have success with macaron, creation from the McCafé, stand services and baguette casse-cro?te. Mc Donald’s France is definitely far from the original US style.

This lead me to a new trend, as being a might think the French buyer don’t turn into American. For example in the US, Americans eat food throughout the day, but in England even when we all go to take out we eat for certain hours. Our ingestion of meals outside of the meal several hours is 8% while it can 28% in the US. And we send out about 31 minutes to consume our food while American only take 19 minutes. And finish, regarding 2 third of the sub bought in France will be the famous « Jambon/beurre » (ham & butter).

c. Economic composition (pure competition, oligopoly, monopoly)

The take out industry provides a monopolistic competition economic composition because there is other company that sells similar type of merchandise but not identical and the admittance in the market is relatively easy. You just have to build a take out restaurant or possibly a bakery. Even as we talk your competition is not only around the price whether or not it’s an important criteria for the consumer.  In fact the several sellers of food battle around competitive advantage just like quality, design & mood of the restaurant (like subway or McDonald’s), concept of division (made to order with subway) and also other. It’s a non-price competition. The idea is to differentiate from other. We have a considerable focus on advertising, manufacturers and brand. Especially with ALL OF US Company. From this market there exists many firm and product are differentiated. There is a very little control over the purchase price but with narrow limit. The restaurant/bakery may charge a price based upon the recognized value by the customer although cannot charge a high price or it will loose customer. One store may not affect the market price.

d. Simple business types (differentiation strategies, cost-leadership tactics, and concentrate strategies)

There are countless competitors within this market; Let me just discuss the main competition of Subway to describe the strategies utilized in this sector. For example , McDonald’s in Italy is a very interesting case because it’s a powerful attempt to combine two approaches: cost leadership and differentiation; also determine as stuck in the middle. Difference is defined as a price higher than industry offer as well as the cost more than the average expense of the market. To get the cost command, the cost plus the price will be lower plus they target all the people as they can. By gathering both equally strategies; they will have a dual positive aspects.

Indeed, McDonald’s France found a way to generate superior product at a lower cost. As a result of their brand awareness and product persistence they can impose a higher price and the international development and standardization they do economic climate of range and decrease the cost of production. They have a excellent competitive benefits over their very own competitor and a better profitability. So McDonald’s can be considered as the cost innovator of the industry but present a separate offer (American way of life). McDonald’s is still the market innovator; it has a greater market share (bigger turnover and bigger quantity of restaurant in France).

Simply no brand comes to my mind when I think about a focus strategy. We’re able to think about a junk food of just green product. The stores might then offer their product into a specific group of the population defined by the ready to eat just green product, very healthy and balanced product. This brand could acquire a differentiation strategy since their particular product would be very different and good quality. I heard about a quick food named East area burger that sells veggie burger just. This is a good example of focus approach.

What about subway? Subway provides a differentiation strategy because their aim is to sell a good product that offer exclusive attributes identified by buyers. Moreover, Subway doesn’t focus on only one part; they target a large area of the French inhabitants. The competitive advantage of Subway is the merchandise uniqueness; you make your personal sandwich. They can choose from a variety of ingredient and customize their particular meal. Whilst McDonald’s is the leader, we all cannot declare Subway choose a fans strategy but rather a opposition strategy. They will attack McDonald’s directly simply by expanding their very own network quicker and supplying a much healthier product. We will see how they utilize this argument to market their cafe.

In General, the foreign exchange market is non-price competition as I talked about, opponents are creating competitive advantage around differentiation. They create customer worth and don’t automatically try to be the cheapest.

2)Description of the organization

a. Main products

Subway is a cafe that serves sandwiches and actually makes them facing their client. It’s an American fast food chain that has 500 restaurants in France. They may be well known because of their excellent and fresh casse-cro?te. They offer the likelihood to eat diverse food which has a lot of several recipe. The main product is obviously the sub but they also possess salad and wrap. They sell dessert (yogurt, brownies, doughnuts, cookies) to make a menu and soft drink. That they is five step to put you sub together: opt for the size, what bred, meats, vegetable and the sauce

Subway is being sent with the element and the dessert, but the bred is made in the restaurant. This allows the restaurant to stop big expense in machine and space to prepare every thing. Also that they don’t need to hire qualified staff in cooking.

b. Main geographical market segments

Subway may be the world leader fast food chain in number of shops. They have thirty seven 881 restaurant in more than 98 countries. The initially French cafe arrive in 2001 in Rome, then a second one in Paris, france follow by Lyon, Lille, Marseille and Aix en Provence, Rennes.

Unfortunately we don’t have much information about the geographical markets of subway and awe how to start how much business each area of the world represent. I cannot access the US website since I am just French, that always redirect me towards the French web page. We at the moment that they are fundamentally all over the world and this there is 25503 stores in the US. Here is a data that show the repartition of the restaurant among the world.

Since it can be described as franchise, that were there a very fast international growth and their mojo was “if you like subway, you think it’s a good thing, and you simply think it would work in you country, then simply we’ll show you the concept and how it works and you go make money in your country”. They used development agents to get franchises and assist in growth.

Plus, Subway does not seriously select the countries they enter in since every single subway retailers is owned or operated by local business people which has the right to find the place exactly where they want to mount their retail outlet.

3)Marketing mixture of Subway in France

a. Main competition (very brief)

The opponents of subway are all the company/restaurant/bakery/stores offering fast food for under 10€ like bakery, fast food chain, caf� … The primary competitors will be McDonald’s, APPLEBEES and big bakery like Brioche Dorée.

n. Analysis from the marketing strategy in France (Segmentation, Targeting, Positioning)

•Segmentation

Subway segmented their market in respect to criteria like geographic, which correspond to countries, location and metropolitan areas. Mainly because a selection of their ingredient or menu enhancements made on specific countries like halal menu in middle east. The other criteria is definitely demographic, Come on, man group depending on age, male or female or status (studying & working). The promotion can be adapted to a age group just like student price cut in France. The various other criteria happen to be psychological, subway look for buyers that are health-conscious. It’s also related to the trend. The very last criterion is to my mind behavioral. I’m speaking about the occupied life lifestyle that people possess in the today world.

Yet globally, their clients react in the same way with their marketing work.

•Targeting

I do think that Subway target just about everyone in whose looking for a speedy way to enjoy for cheap and want a high-quality sandwich. But their core concentrate on is teenagers from 15 to more than 30 years old. Subway identified its target market since “Demanding Young adults Who Find out Their Own Minds”. The customers from this industry aren’t very faithful and change frequently of restaurant. They goal people that are health conscious who like to eat low calories food on the contrary of McDonald’s of KFC. That they target people that look for healthy food choices rather than lasagna, burger or perhaps fries. That they target folks who would like to make an effort other kinds of food. They target folks who look for an alternative solution, for a low fat option.

Due to wide range of casse-cro?te offered, they will target a really diversified client.

•Positioning

Relating to their web page, their placing statement is usually: “we like delighting buyers by serving fresh, scrumptious, made-to-order casse-cro?te for people seeking quick, healthy meals the whole friends and family can enjoy. ” An other internet site tell us that Subway Hoagie fast food eating places focuses on freshness and customer satisfaction, which makes an exceptional Subway experience”. Subway tries to be seen as a healthful and new fast food cafe where you can create your own sub. Subway tried out and works in being a restaurant having a style between your very The french language bakery plus the American junk food style. For Marc Kreder, The CEO of Subway France, Subway is a substitute for McDonald’s. It’s a typical take out but they don’t serve hamburger, they serve healthy food.

Their mission should be to provide a clean quality product made to meet every buyer taste

c. Analysis of the marketing blend

•Product

As mentioned, the main system is a sandwich. But the difference is that the buyer makes his own hoagie and recommendations whatever ingredient he desires among a broad choice. This individual chooses the bread, the meat, the vegetable and the sauce. There exists different type of bread (cereals, white, Italian language, cheese, honey). Subway also suggest recipe. Ingredients happen to be in little box to compose a sandwich, a wrap or possibly a salad. You can add a delicacy and a soda to produce a menu. Time after time, Subway gives the encapsulate and the greens to it is menu to fulfill the variety requires. To create a sandwich it takes regarding 3 minutes.

This is the picture of a typical sandwich:

To be more specific, the bread is cooked about site and seven dishes contains lower than 6gr of lipids. There is absolutely no frying and the mayonnaise is light. Therefore the sandwiches of Subway are very well known for the quality of the product, the caliber of the fast service and the cleanliness from the restaurant. Their offer gather ease, good value and benefit.

•Price

As I said, Subway has a differentiation technique and they create a meal menu that is distinct from other rival. They undertake a premium prices strategy. All their prices are a little bit more than competitors. Although thee have got great campaign like the bass speaker that expense 2, 90€. They have a very good quality-price rate.

•Place

Subway sells their sandwich through a restaurant where you can either take away or consume inside. In France, there is certainly 408 cafe and they predict to have one particular 400 restaurants in 2015. The inside with the restaurant is the same as the original restaurant in the US. This is the picture of your restaurant in Texas on the left hand side and an italian restaurant around the right. Is it doesn’t exact same screen. The subway restaurants often be small , they you do not have a lot of space (few table): 80m2 on average.

The location that subway chooses happen to be part of all their strategy for 2013. They tend to pick nontraditional spot to get new customers. So subway will try to create stores in area like train station, subway station, road and even colleges. Subway designed a alliance with Elior (specialize in institutional catering) to open a restaurant on the road between Bordeaux and Lyon in January 2013. They also created the 1st “kiosque store” inside a subway station.

•Promotion

Its advertising and marketing slogan is usually “mangez frais” (“Eat fresh”), same slogan in the US. Plus the official slogan is “préparés sous ces yeux” (“prepared under your eyes”).

Subway has additionally an available promotion thanks to its unique smell (baked bread). As well the point of selling of Subway really are a promotion since there are everywhere and it will even better whenever they will be satisfied in uncommon spot. The rand name decided to utilize the TV to improve its brand awareness and it worked well. According to a TNS Sofres study, Subway gains 31 point of brand awareness in 2 years. twenty six of them are top awareness. This increase is principally due to the expansion of the volume of restaurant as well as the increasing price range spending in marketing and conversation.

Subway also uses the merchandise placement in TV shows like Chuck that is certainly well known in France. And in France Subway is the bring in of neighborhood sport group, they give discount codes and has its own radio where there is marketing spot. Additionally they use print.

Subway work with corporate traditions to promote the manufacturer. Subway is definitely involved in an environmental friendly advancement strategy. In accordance to their internet site: “The SUBWAY® system is committed to providing a broad variety of great tasting, much healthier food choices while minimizing our environmental footprint and creating a confident influence in the communities we serve around the world. “

Subway decide to prove that Subway sandwich were healthy and balanced by using the history of young men. Jared H. Fogle was obese by eating junk food and decided to take in subway rather than other recognized fast food chain. He dropped 240 pound (109 kilos) due to the subway diet. The national campaign relating this kind of story had a huge accomplishment and was follows by a sales raising. Jared has become known as the subway guy and did a lot of campaign for subway. He performed commercial, in-stores appearances; this individual gives frequent talks upon fitness and healthy eating. They actually run a second campaign to point out the fact that Jared maintained his excess weight with subway.

Here is a website link of a funny US commercial of Subway that focus on the nutritional value of their offer. http://www.youtube.com/watch?v=8_Hp70B6uTs That iq interesting to see the communication is not the same. In the US, they focus on the nutritional value and loose of fat. In Europe and England, their commercial focus on Choice and modifying: http://www.youtube.com/watch?v=2Cb7Rmh4PU4

Following this success story end in 2008, Subway chosen to emphasis their very own communication for the cheap renowned foot lengthy sandwich (5$). A very diverse communication that don’t focus on the vitamins and minerals.

d. Key environmental and market causes of the strategy?

Subway chosen to use a standardized global online marketing strategy. As we observed in the promoting mix, is it doesn’t same restaurant concept just about everywhere, same adornment, same soul, and same display. Ingredients are the same (same, bread, same meat, same sauce and dessert). The suggested casse-cro?te are just about the same. I’ve been to a subway in England, UK and US and it was much the same, only the brand of the component changed. The only change was the consideration of the religious and cultural factor but in England it’s okay. Subway believes that their particular sandwich will overcome the cultural barriers. But Subway will always need to make slight adaptation, such as in Chinese suppliers where they have different flavor preferences.

Also in France, Subway developed a alliance with Danone in order to offer a wider selection of dessert with yogurt. Additionally they created a “raclette” sandwich (a French cheese) to satisfy French taste. As well as we discussed the interaction is not exactly the same around the world. But what ever country you consume a subs you will often find both the same sizes: six in .. (15cm) and a foot long (30cm). Actually Subway created a 12 cm sub in Italy.

The main aim of Subway is to be the number one chain plus the strategy was going to use business. The concept of franchising is to backup a successful business design to multiple locations. It is the basics of standardization. This way of advancement allows a better control of the quality of service as well as the product as well as the store supervision. Subway constructed a real global brand photo around the world say thanks to to the standardization. Subway uses the same online strategy and mix atlanta divorce attorneys country. The technologies associated with world smaller sized and buyer needs around the globe tend to turn into similar

To seduce french market, Subway use a very methodical technique, they divided the country in to 16 region managed by simply business designer in charge of finding sport, and finding people to buy a store, in other expression developing the network. Speaking of strategy, Subway is not a public organization in order to actually focus on their very own product, quality, restaurant rather than on problems related to Stock market companies like financial pr release.

Bibliography

http://www.lenouveleconomiste.fr/lesdossiers/restauration-rapide-ou-traditionnelle-14616/#.UOrW5onm6xE

http://www.lesechosdelafranchise.com/franchises-restauration-rapide/restauration-rapide-les-5-grandes-tendances-du-secteur-en-2011-25710.php

http://www.tvweek.com/tvmojoe/2009/04/subway-good-night-and-good-chu.php

http://www.francesoir.fr/actualite/economie/subway-dix-ans-sandwiches-114039.html

http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Subway-Sandwich-Mission-Statement.htm

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