SUBWAY’S FORAY INTO THE PIZZA MARKET
POSITIVE OR NEGATIVE??
Case study analysis
WHAT DO WE KNOW?
Fast and constant change in the fastfood industry in the USA variety of food, good taste, accesible costs.
growth in popularity for the pizza segment
pizza segment: second largest category in 2007 with $33.9 billion significant increase in obesity in the USA
concern of the society, critical, social and ethical issues
Change in life style eating habits due to health concern
looking for healthier options
good taste, health, and convinience
Desire of different food chains to position itself in the pizza market easy & cheap elaboration
taste and variaty ruled americans buying decisions in spite of their health concern.
Lack of consumer awareness in its offer
it was getting harder to introduce this new offer
Possible damage in its “healthy image”
completetly different to their known image
Loose of profits due to constant changing in the fast food industry
Possible fail due to new life styles of americans.
staying healthy was getting more popular in time
Desire of healthy new offers
Good prices: compare to other restaurants
Fresh healthy products: fresh vegetables, protein, drinks
Fast to get-fast to eat
SUBWAY THROUGH THE YEARS
1965: first sándwich shop, in Connecticut, USA
same owners, but didnt have the Brand name yet
Until 1968- fifth shop- first one with the Brand name Subway- it was now oficial! Later adds to the menú:
”snack sub” (6 inch sándwich)
normal salads AND sandwich with salads
steak, cheese and wheat bread
25 after its emerge in the food industry: total of 5000 FRANCHISES!! Interests: Pizza market
influenced by: high sells in this market
official website (www.subway.com)
Movies & TV series:
Terminator 2 “judgment day”
Ace ventura when nature calls
Law and Order
Countries, locations, town & cities
Based on: different geographic locations
special need: according to eating traditions & costumes
ages between 18-49
students or employees mostly
reasonable prices: VALUE OF MONEY
special offers: gift cards
good relationship of thrust between the costumer and the company.
age: young adults between 18-39
Sub of the dayyoung adults that:
believe in their product
dont get that easily influenced
are open-minded to new products
aren’t concerned about the future but living the present
aren organized in all aspects
gender: female and male
general needs: FAST, HEALTHY, TASTY!
first healthy fast food chain
clean food (hygienic)
Best relationship with costumers sense of care
worldwide healthy fast food chain
COMPETITORS (fast food market)
Papa John’s Pizza
WHY THE PIZZA MARKET?
Main porpuse: to expand their product mix
strong competition & changing habits in the fast food industry new categoriespeople’s variety demands
EASY & CHEAPterms of preparation
Pizzamost competitive cathegory in fast food restaurants despite health awareness PizzaBEFORE: food for day
NOW: food for lunch AND dinner also.
NEW type of pizza: PERSONAL-SIZED pizza
SUBWAYS FORAY INTO PIZZA MARKET- SWOT ANALYSIS
GOOD OR BAD DECISION?
Even though the results in subways first try to get into the pizza market were negative, this didnt affect their enthusiasm to try to get into this potential market. And this is reflected in the positive acceptance of this new product on their second try. reflected growth: POSITIVE
1 year later after this new menu adittion, they managed to grow and outfaced the...
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