Subway Case Analysis

Topics: Fast food, Hamburger, Subway Pages: 5 (1225 words) Published: October 18, 2013

College of Business and Public Policy

09/09/2013

TABLE OF CONTENTS

COMPANY OVERVIEW3
SUBWAY COMPETITION3
TARGET CUSTOMERS5
MARKETING TECHNOLOGIES5
CURRENT ANCHORAGE MARKET…………………………………………………………...7 NEW SUBWAY LOCATIONS9

COMPANY OVERVIEW

Subway is the market leader in sandwich shops, and offers a healthier alternative to burgers and pizza for people looking to pick up food on the run. They specialize in making subs, wraps, salads, and pizzas. Subway is owned and operated by Doctor's Associates, Inc., and according to Forbes Magazine, is the largest single-restaurant chain globally with 40,043 locations in 102 countries around the world.  SUBWAY COMPETITION

As any other big company associated with food, Subway has to compete with international, national, regional, and local retailers of food products. Competition is based on price, convenience, and service. Subway is also focused on menu variety as well as product quality. Competition is one of the key factors that influence decision making processes as well as choosing a marketing strategy. Table 1. Subway Competition in Anchorage

Direct Competitors
Indirect Competitors
McDonald's
Red Robin
KFC
Mooses Tooth
Burger King
Bear Tooth Grill
Wendy’s
Tempura Express
Carl's Jr
Panda Express
A&W All-American Food
Denny’s
Arby’s
Village Inn
Dairy Queen
Snow City Cafe
Pita Pit
Spenard Roadhouse
Quiznos
Café Amsterdam
Great Harvest Bread Co.
Alaska Bagel
Middle Way Cafe 
Leroy’s Family
Sicily's Pizza
Eddie’s Sports Bar
Johnny Chicago's 
Humpy’s
Brown Bag Sandwich Co.
T.G.I. Friday’s
Napoli's Pizza
Suite 100
Wings 'N Things 
Glacier’s Brew House
Peppercini's Deli House
Qdoba Mexican Grill
Alaska's Gourmet Subs
Orso’s
Table 1 illustrates some of the largest Subway direct and indirect competitors in the Anchorage market. Not only are the local fast food stores taken into consideration, but also restaurants, quick-service eating establishments, pizza places, bars, cafes, etc. Among Subway’s strongest competitors are McDonald's, KFC, Wendy’s, and Dairy Queen. Figure 1. Subway SWOT Analysis

Figure 1 represents Subway SWOT analysis (retrieved from http://www.strategicmanagementinsight.com/swot-analyses/subway-swot-analysis.html, 09/08/2013) One of the main advantages that Subway has over these other restaurants is that they offer much healthier food. People are not going to find fries and greasy burgers at Subway, instead they will try to make a better choice with promotions such as subs with 6 grams of fat or less, and eventually they will feel good about eating out while still eating healthy. Subway beat McDonalds at some point in terms of having the most stores around the globe. Another competitive advantage is Subway allows its franchisees to choose their own food suppliers, so that the store can access the best and freshest ingredients. In addition, customers can see the Subway team making their food.

TARGET CUSTOMERS
Nowadays, many people have very busy schedules and it became a luxury to prepare food at home every day. People are so occupied with work, school, and family activities, that they simply do not have the time to prepare three meals every day. Fast food restaurants are a great help when it comes to people on the run. Initially, Subway’s target customer is a health-conscious consumer, though they also try to go beyond in order to increase the company’s share of the fast food market. Subway is constantly working on expanding its product mix to attract a wider range of consumers. With the $5 foot long pricing, the brand has been able to capture a larger market share of people who see it as an affordable option. “For some time, the media spotlight on obesity, diabetes, and heart disease, and the importance of making better meal choices away from home, has driven growth in the range and number...
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