Subway's Marketing Strategies

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SUBWAY: An Introduction

The Subway brand was started in the summer of 1965 in Bridgeport, Conneticut. It was the brainchild of 17-year old Fred DeLuca and his family friend Dr. Peter Buck, with its purpose being to earn money for Fred’s college tuition. With a $1,000 loan from Dr. Buck, Fred opened up the sub shop. Currently, there are 27436 Restaurants in 85 Countries, making it the second largest fast-food franchise in the world. Approximately 5000 of these locations are non-traditional units -- such as convenience stores, truck stops, colleges/universities, hospitals, military bases, arenas, shopping malls, and more. Their goal is to be the largest fast-food franchise in every market. But let’s get one thing straight, Subway is not your everyday fast food outlet. They don’t sell hamburgers or greasy French fries; they’re in the business of healthy eating, their main products being their submarine sandwiches which are made right in front of your eyes by the highly efficient staff members.

The 5 most important strengths of SUBWAY

Brand Awareness
Even though it is not that well known in South Africa, Subway is brand that is known the world over for their fresh tasting products and innovative store placements. Quality of food
Subway prides themselves on always having the freshest ingredients available for your sub, and they hide nothing from the customer. All their products are made on the spot while the customer chooses what toppings he/she wants on the sub. Unlike most fast food franchises, nothing is deep-fried or frozen. Efficiency

At Subway, you don’t wait for your order. You order it at the counter and watch it being made by the highly efficient team of staff. When the product is ready, you pay and take it with you. No bills, no queues, no hassles. Store Location

Subway restaurant sites are adaptable to any type of location. The simplicity of the Subway Restaurant operation and the ability to fit into spaces that their competitors cannot allows them to open restaurants in many unusual and non-traditional sites, such as airports, hospitals and even supermarkets! Exclusivity

Subway offers a unique eating experience. It’s quick, easy and most importantly, it’s healthy. In most cases, they are the quickest way to a healthy meal, and they possess unrivalled innovation when it comes to choice and service.

Macroenvironmental trends that impact on Subway

Political factors
Anti-American and Anti-George Bush schools of thought.
The level of crime and lack of security in South Africa.
Economic factors
The constantly decreasing amount of disposable income that people have due to inflation and taxes. Socio-cultural factors
The ‘healthy eating, healthy body’ trend.
An increased need for convenience and choice.
Technological factors
Increased technology levels means increased implementation of CRM programmes.

The influence of these trends on Subway

Political factors
According to Gavin Mitchell, owner of the Subway franchise in Somerset Mall, there is a large amount of anti-Americanism going around these days due to the fact that people around the world disagree with what George Bush is doing to his country and many others. This leads to them boycotting American brands and choosing other brands to satisfy their needs. Another school of thought is that America is trying to take over the world with all its huge brands and sort of ‘Americanise’ the rest of the world. Now, because Subway is an American brand, people who support these schools of thought would rather support a local brand than eat at Subway.

Also, we all know that the level of crime in South Africa is something that no one can ignore. Our government turns a blind eye to it all and it is constantly in the headlines and in other media. So what we’re left with is a large amount of people who are too scared to go out for fear of being a victim of crime. “Because we don’t have a delivery service, and the fact that we only have 10 outlets in...
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