Subway: Marketing and Busy Ants Segment

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Introduction Subway is a fast food restaurant that was established in 1956 and is now amongst the top franchise restaurants in the world. The mission of Subway is to delight each customer with their value through the fresh, delicious, made-to-order sandwiches and exceptional experience (Subway, 2010). This essay highlights how Subway positions its product in the market. Market Segmentation Individuals in the market have different behaviours and needs. Therefore, to serve them, there is a need for segmentation (Martin, 2011). Market segmentation is viewing the heterogeneous market as a few smaller homogeneous market to have a much precise knowledge on consumers wants to ensure firm’s offering will be able to match the customer’s requirement (Oestreicher, 2011). Subway’s market segment profiles are as of the follow: Segmentation Variables Cool Dudes Busy Ants The Suit Golden Oldies

Geographic

Country Age

Malaysia  13-20 years  Pocket money  High school, college Students  Cool  Adventurous  Dynamic  Medium

Malaysia  21-39 years  Low – High  University graduates  Ambitious  Versatile  Quick  Health conscious  Heavy

Malaysia  40-54 years  Medium – High  -

Malaysia  > 55 years  Retirement Fund  Retired  Laid-back  Practical  Health conscious  Medium -

Demographic

Income Education Occupation

Businessmen  Composed  Organised  Dominant  Light

Psychographic Personality

Behavioural

Usage rate

Market Targeting Market targeting is the partitioning of the market in order to select the market segment in which the company can choose to target through development of specific marketing mixes that will be in line with the needs of the specific target market (Restrepo, n.d.). The target market of Subway is the “Busy Ants” segment. This particular segment is targeted as these individuals are extremely health conscious, making the potentially regular customers who are willing to spend on healthier food. Furthermore, individuals in this segment are looking for a healthy yet fast alternative of food to meet their fast-paced and on-the-go lifestyle. This is in line with Subway’s vision to “Be the #1 Quick Service Restaurant (QSR) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience” (Subway, 2010).

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Values Sought by “Busy Ants” The values sought by individuals in the “Busy Ants” segment are as of the follow:         Meals must contain a variety of fresh vegetables Prepared with less salt Prepared with minimal amount of oil Can be easily held, as the want to eat on the go Not messy while eating i.e. allow them to do something else simultaneously Short waiting time when being served Affordable price Simple packaging

Perceptual Map Expensive

 Carl’s Junior  Burger King  Wendy’s Unhealthy  Mc Donalds  A&W  Ninja Joe Gap Healthy

Cheap Currently, the burger and sandwiches franchised restaurant industry are providing consumers with a choice of rather unhealthy menu with prices ranging from cheap to expensive. Mc Donalds for instance are offering set lunch with a cheaper price for selected range of burgers during lunch hour catering to the individuals who fall in the “Busy Ants” segment. However, with the level of education rising, people become more aware of their own health. This has resulted in individuals looking for cheap yet healthier alternative of food. It creates a gap in the market as competitors in the market are

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only able to provide tasty burgers and sandwiches at various prices but are mostly unable to fulfil the need of being healthy. Therefore, Subway has looked into filling up the gap in the market to capture the targeted market segment. Market Positioning Market positioning is a form of communication to the consumers in the market (Chacko, 1996). It is when a firm focuses the resources available to build up a potential advantage for its product in the product-markets...
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