Subway Market Research

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1 INTRODUCTION
Subway chain is the third largest fast food chain in the world after McDonald‟s and KFC. The first Subway was founded in 1965. The founder of the Subway chain, Fred De Luca, started running his restaurant business when he was only 17 years old. The first Subway restaurant was opened nine years after its foundation in Connecticut where the headquarter is now situated. (Subway Denmark) Now there are more than 30,000 Subway restaurants in 88 countries worldwide and it is the world‟s fastest growing franchise chain. New Subway restaurants are opening all the time. The franchise chain has employed more than 150,000 people. (Subway 2009) Subway offers customers many different kinds of fresh submarine sandwiches also called “subs”. Customers always decide how they want their sandwiches to be served. Subway‟s advertising is based on freshness. Slogan “Eat Fresh” tells that Subway chain uses only freshly baked bread and fresh ingredients. Subway has a lot of competitors for example McDonald‟s, Burger King and Sunset Boulevard. There were more than 20 Subways in Denmark in the 1990s but 10 years ago they withdrew from the Danish market. In 2009 Subway tried to strive for the Danish market again. At the beginning of February they reopened Subway in 2 cities, in Aalborg and Sønderborg. The Subway chain has also a lot of competitors in Danish market. One of the main competitors is the Danish chain Sunset Boulevard. When the Subway chain was withdrawing their restaurants from the Danish market, Sunset Boulevard bought 3 of their branches. (Subway Denmark) 1.1 Background of the research

This thesis will give background information about the Subway chain, its customers and Subway as a franchise concept. The fast food market in Denmark and the competition between Subway and its three biggest competitors, McDonald‟s, Burger King and Sunset Boulevard, are also included. 7 1.2 Purpose

The purpose of this thesis is to find out how attractive the Danish market is for entrepreneurs to take up the Subway franchise concept. This means that the focus of the thesis will be to analyze the Danish market and the opportunities that Subway offers the entrepreneurs. The objective of the thesis is to find out which is the most attractive location for a Subway restaurant. Three different cities are analyzed namely Århus, Horsens and Vejle. The topic was chosen because it is interesting that Subway is not well-represented in Denmark. This thesis is made to find an answer for the following main question: Can entrepreneurs take up the Subway franchise concept and become successful in the Danish market? The franchising concept of Subway:

A company needs to know which strings it can play on, meaning that it has to know what its key competences and its overall capabilities are. By having this knowledge, the company can decide on doing business within areas where it is most capable. To find out the benefits of doing business with Subway, the following main question could be asked: What are the pros and cons of cooperating with Subway?

External analyses:
The market
For a company it is important to know the market it is operating in. Knowing the possibilities for entering the market and the potential customers are vital. Furthermore it is a good idea to look at the macro environmental factors that are influencing the market. To get a better knowledge about a market, the following main question is asked: How attractive is the market for fast food? 8

Customers
A company needs to know who its customers are. To know the target group and its preferences can be a huge advantage. Knowing this would make it easier to make decisions concerning products, service and promotion. To get to know the customers and their buying behavior, there is one main question namely: What is the target group?

Competition:
It is important to know something about the competition within a given market, as it serves as an indicator as to how difficult...
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