SUBWAY
Q U I C K S E R V I C E R E S TA U R A N T
Re-Defining
Healthy Eatables
MARKETING MIX
PRODUCT
PROMOTION
The primary product is the
Most of Subway’s promotional activities
submarine sandwich (sub). It offers a
are targeted at the age group 18-35.
variety of breads, sauces and other
The ads are highly targeted and run
ingredients to choose from. Subway
during the telecast of prime time shows
offers the flexibility of making our
and sporting events. The ads generally
own sandwich. Subway also serves a
focus on the freshness of the food
variety of healthy salads, wraps and
offered and the variety. They also use
other sides like beverages, cookies
slogans like “Eat Fresh”, “My way” etc.
and chips.
PRICE PLACE
Subway is comparatively higher Subway operates through the
priced when compared to its close franchise model. The brand
competitors McDonalds and KFC. franchises individuals to open their
The price depends on the size of the retail outlets and provides branding
sub 6” or 12” and the patty. Subway rights. India currently has over 600+
has a “Sub of the day” scheme, outlets. Subway products are also
where a particular sub is offered for available on online food delivery
a cheaper price on a given day. platforms.
CLIMATE ANALYSIS
Political Economical Social Technological Legal Environmental
Government regulations Subway operates a Preferences and tastes Technology has played Legal issues pertaining Apart from sustainable
regarding: premium fast food of consumers vary from an important role in to global QSR businesses production and supply
• Sourcing of meat, business and is heavily place to place shaping the business in comprise of: chain, these businesses
vegetables and other affected by: depending on the socio- several different ways • Violation of labour are also investing in
ingredients • Inflation of raw cultural setup: including: laws other aspects of their
• Health, Safety and material prices • Halal meat for • Online order facilities • Violation of global.
Food Sanitization • Economic slump and followers of Islam • Online customer franchisee-franchisor The company has greatly
• Trade agreements unemployment • Aversion to beef in support laws reduced its carbon
between the The company is also certain cultures • Digital menus • Compliance to waste emissions during the last
franchisor’s and affected by the vast Consumers also • Self-order kiosk in the disposal and ten years. It has also
franchisee’s countries competition as the cost associate the brand with restaurant employee hygiene reduced its oil
All these factors of switching is very low its social image, and • Social media regulations consumption as well as
directly impact the for a customer in this hence is very important. marketing and electricity consumption
ease of doing industry Subway lost a lot of customer in its stores.
business customer value due to engagement
the Jared Fogle incident.
SEGMENTATION
1
By Food Preference
• Vegan
• Vegetarian
• Eggetarian
• Non-Vegetarian
2
By Eating Behavior
• Junk Lovers
• Fast Food Enthusiasts
• Healthy Eaters / Diet Followers
• Gluten Free
3
By Age
• Children
• Students (Teens and early twenties)
• Working Professionals
• Elderly
TARGET CUSTOMER PROFILES AND
PERCEPTIONS PERCEPTIONS
FRESH FOOD LOVERS
People who want fresh and hygienic food whenever The fresh and hygienic food that Subway provides is one
of the major reasons that consumers are drive towards
they eat out the Subway Restaurants. The company spreads the
“EAT FRESH” message to garner customer confidence.
VEGETARIANS AND VEGANS
People who follow a healthy lifestyle and seek
varieties in vegetarian and vegan items The increasing inclination towards health and fitness
motivates customer to purchase meals from Subway.
BUSY BEES Also, the separate Vegetarian and Non- Vegetarian
outlets makes it even more likely for Indian customers
Professionals, students and people who do not have to dine in and order.
the time to cook for themselves or miss on their
meals
The localized outlets of the food chain
makes it easier to tap customers leveraging the
convenience and ease in reach.
POSITIONING The company has around 700 plus restaurants in India.
Subway promises the customers tasty, nutritious, low calorie
and customizable foods at an affordable pricing
COMPETITOR ANALYSIS
Market Share Last Known Net
Products Value Proposition
(% share of global market) Promoter Score
3%
• Submarine Sandwich Subway promises the
• Salads and Wraps customers tasty,
• Beverages, Cookies nutritious, low calorie
and customizable foods
2.0
and Chips
at an affordable pricing
• McBurgers
• Fries, Wedges, 21% McDonalds promises
Nuggets food of a constant
• McPizza pockets quality that is served -8.0
• Shakes quickly and consistently
• Ice cream, McFloat across the globe.
• Burgers
• Fries and Wedges 3% KFC promises a hygenic,
•
•
Bucket Chicken
Shakes
finger lickin good chicken
in a unique packaging
14.0
• Rice bowl and Wraps
COLLABORATORS
Olo
Helps Subway in online consumer reach by
Digital developing and improving its digital presence
Platform through food ordering website and app
PepsiCo
Partners
Lite Bite Foods
Introduction of largely popular beverage and
Expansion of franchises in prospective
snacks offered by PepsiCo
Develop- locations
Supplier
Jyoti International Foods Private Limited (JIFPL) ment
Partners Franchise World Headquarters
Procures and delivers ingredients and food Agents
Processes information about franchises
products, requiring storage within specified
and heads operations in setting up of new
temperature limits
outlets with same quality and design
Subway
Dentsu Impact
Campaign planner with innovative approaches to
boost consumer affinity towards Subway Creative
and Delivery Zomato , Swiggy
Happy Making Films Media Partners Door step delivery of Subway's healthy
Produces short advertisements in story form to sandwiches and wraps, topped with desserts and
Agency
engage with larger consumers base beverages
Inclusion
Doctor's Associates LLC Partners
Works to ensure inclusion of women and
minority groups in the work culture of Subway,
leaving no one behind
ANALYZING CONSUMER MARKETS
Social Factors Personal Factors
Roles and status Likes and dislikes Aspect To Emphasize In Consumer
People, who are high in status will like to People choice vary from person to person Behaviour
buy food from 5 star but office going bunch
would like a faster and convenient food
Age
Community attitude Groups and Reference groups Occupation
Younger generation prefer subway more
Due to Covid there is raised hygiene than elder people Since people trust their peers and Life has become fast in metros and
standard among people expect a very high family's choice in nearly every habit. people do not have time to pack a tiffin
level of hygiene if they are going to eat out
Lifestyle food is obviously no different than other this presents a great opportunity for
Groups and Family Reference items. If continuous praise from their subway to grab the consumers as they
People who are health conscious prefer groups is received they are more likely to are short on time and are in need of
People follow what their peers are eating subway to its counterparts as subway try subway. decent healthy food.
and mimic choices to some degree. markets itself as a healthier option
Family is another reference group that
affect purchase depending on their past Lifestyle
interaction
Occupation
Subcultures People have become incredibly health
People who are working prefer fast
delivery of food item as they are in a hurry conscious nowadays as they want to eat
Each cultures comprises of subcultures thus subway comes in clutch as it takes out but eat healthy. This can be one the
based on religion which may permit some only a few minutes to make best place to emphasize on in the
kind of food and rejects other type Status marketing plan
Based on upper, middle or lower class to
some it is a hobby to eat out at subway, for
some a family treat or weekend party and
for some its a luxury item
MARKETING ACTIVITIES ADOPTED
ALONG THE BUYING PROCESS
Problem Information Evaluation of Purchase Post Purchase
Recognition Search Alternatives Decision Behaviour
Problem recognition phase Information search Evaluation of alternatives
We all know fast food is always As people are looking at online Subway can bank on its relative
related to obesity, also people are about healthy places to eat healthiness. It can come up in the
having less time to spend if they Subway can come up as viable ads and search as a healthy
are in a working environment. search. Furthermore, Banking on alternative other fast foods
its fast completion time
Purchase decision Post purchase behavior
Since subway provides a lot of Consumer can be given rewards or loyalty points if they share their
options in the choice of bread, visit to a subway outlet and post their buy with a hashtag. This kind
fillings, and sauces it can utilize of strategy has yielded starbucks a free and effective marketing
that in the evaluation of
alternatives
COMPETITIVE MARKET ANALYSIS
QSR MARKET
Market Leaders Challengers Followers
Focusing on retaining its market share and expanding into new regional markets. To achieve this, it must improve its menu with new offerings. The traditional
products can retain the existing customers but innovation is required to attract more customers
Struggling to maintain its premium perception to retain its market share. To achieve this, it must focus on providing regional appeal in its outlets. For instance,
neighborhood specific interiors in each outlet. This makes the customers associate Starbucks with their locality and hence feel exclusive
Focusing on expanding into new regional markets. It already has the advantage of standing out in the fast-food market by offering its unique 'Subs'. However,
its share is still declining due to poor customer experience at its outlets, inconsistent service, expensive offerings, high employee attrition, etc. To tackle this
and ensure business growth, Subway must price its products appropriately, allow more autonomy to franchisee stores, bank on the 'relatively healthy' nature
of its products, upgrade individual stores with better interiors, consider home-delivers (much needed in this pandemic) and lastly, create and maintain a strong
online presence of the brand.
Is perceived as a premium brand with relatively fewer but more loyal regular customers. Pizza Hut also faces regular issues in its inventory management, where
certain items on the menu aren't available which further affects customer satisfaction. Hence, it needs to bring in a variety of options with increased focus on
inventory management. In order to increase market share, it must offer more discounts or price its offering at competitive prices challenging opponents like
Domino's.
Has already seen rapid growth in Asia in the last 10 years. However, their franchisee management model faces regular issues related to operations. KFC should
focus on targeting the BRICS nations for great global share. Also, it can shift its focus towards a more healthy menu to attract millennials and Generation Z
customers.
PORTER’s FIVE FORCE ANALYSIS
P O R T E R ' S 5 F O R C E S H A V E T R A D I T I O N A L LY B E E N U S E D T O U N D E R S TA N D T H E E N V I R O N M E N T I N W H I C H , S E V E R A L C O M P E T I T O R S
C O - E X I S T. H E R E W E A P P LY T H E M O D E L T O S U B W AY, O P E R AT I N G I N T H E FA S T- F O O D I N D U S T R Y.
Competition in the industry: The fast-food market is filled with various players for all the segments. Moreover, every segment has both, giant and small scale players. For
instance, Giants - Burger King, McDonald's, KFC, etc. Small Scale - Local Bakeries, Stores selling snacks, etc. This makes the industry, a highly competitive one which is a
disadvantage for each individual player.
Potential of new entrants into the industry: There is no restriction for new players to enter this market. However, factors like infrastructural requirements, capital
requirements, food safety issues and too many legal compliances hence act as barriers to entry for new players. Moreover, the existing brands command huge consumer
equity and goodwill in the market. Competing with them successfully would require a very powerful Unique Selling Proposition (USP). Hence, the existing players enjoy an
advantage here.
Power of suppliers: The suppliers here include sellers of dairy, wheat dough, meat products, spices & herbs, etc. Many sellers exist in the market and the cost of switching
is also on the lower side for their client (fast-food chain). Moreover, the ingredients being offered lack any differentiation. Hence, the bargaining power of suppliers is low
in this industry.
Power of customers: Since the fast-food market is saturated with multiple players, the bargaining power of customers (buyers) remains high as they can easily switch to
alternatives at no cost. However, Subway offers unique items (Subs and Sandwiches) when compared to other giants like McDonald's and Pizza Hut. Hence, it enjoys the
advantage of being unique here.
Threat of substitute products: Fast-food products like Pizzas, Burgers and related drinks are very easy to replicate. Moreover, there are multiple substitutes at a much
reasonable price. For example, Vadapavs sold in Mumbai provide a higher value for money than Burgers by any established brands. Hence, the threat here is high.
PREDICTING THE DEMAND
• From the 2018 MHRD report on Education in India, CAGR can be calculated about high school
and college going students in India. Since our target population is the above category, a basic
projection of demand can be made.
• CMIE economic outlook reports on growth rate of white collar workers in India will help us to
Secondary segment the groups in a more effective way.
Sources
• According to Redseer's report on number of health conscious people in India, there will be a
1.4x increase in health conscious people in the next couple of years. Since our product
offering is catered towards these people, these data will help us to identify our market.
• The basic market research from Subway's end would be to conduct survey based on various
age, gender, income ratio and willingness towards healthy food.
Further Insights
• Deal values like dinner meals, adding extra cost on customer’s part for six inch
subs to make them a foot long
• Meal value provision like adding drinks and cookies to food is used. Selling as a
SOURCE bundled pack at a cheaper rate is also a tactic
Subway Marketing
• Giving discount coupons
Professional
• Celebrating sandwich day to promote the primary offering
• Attracting customers by showing a reduction in price if more of the same
offering is bought
• Positioning the brand as a provider of healthy and fresh food with low sugar and
more fiber, is used to attract the health-conscious group
• Reduction in prices to attract customers (especially in the recent times)
A brief look at Subway’s brand elements
Brand Identity: Fresh Sandwiches
Brand Image: Relatively more nutritious offerings than other fast-food brands
Positioning: Healthy food with preferred customization for a better appetite
Personality: Trustworthiness with a concern for health, innovative and consumer-
receptive brand
Equity: 41,600 stores offering distinct variations in their offerings
Customer Experience: Self-service and self-thought in choosing the right item for
self
Expectation vs Reality Gap: Offers food items just as advertised
How do these elements help Subway?
• While all the other fast-food brands speak about good taste that brings joy, Subway stands out by encouraging
health consciousness for self-contentment.
• This makes consumers feel positive towards the brand that actually cares about them
• Consumers associate Subway with fresh food that offers great scope for customization as per their preferences.
• Thanks to Subway’s extensive campaigning over the years, its offerings are being perceived as more nutritious
than those of other fast-food brands.
• In a world full of increasingly health-conscious people, Subway enjoys a distinct benefit due to its age old
positioning statement.
• Building trust when it comes to food takes time. Subway enjoys a head-start here, being in operations for more
than 55 years.
• Most fast-food brands glorify their products in their advertisements in terms of size, shape, taste, etc.
• Subway draws a clear distinction by ensuring minimal expectation-reality gap by providing its submarine
sandwiches exactly as there were shown before preparation.
• This naturally builds a loyal customer base who appreciate their favourite brand’s honesty.
• The green and yellow colour combination used in Subway’s branding since 5 decades has helped it set a firm
image in the market. Subway logos are recognized almost across the entire globe today. A feat only market
leaders can claim.
• Internally, Subway is known for treating franchisee owners and store staff very well. This exceptional treatment
has helped its store presence grow exponentially in a short period of time, faster than any other major fast-food
chain.
• Operating costs and one-time fee is lower for Subway than other industry players. Yet another reason for store
growth
BRAND PERCEPTION MAP
Wide Variety The perception spectrum is divided into 4
quadrants made up by two axes, the
healthy - junk axis and the wide variety –
limited choice axis.
The various players in the QSR market
have been positioned in the quadrants
based on the kind of food served, the
variety offered in their main food category
and the variety of food categories offered
by the brand.
Junk Healthy
Subway truly stands out from rest
of the competitors in being the
most healthy by serving fresh
The size of the logo indicates foods, and by providing the option
the number of outlets owned of customization, it also stands out
by the brand in India
in the variety axis by being at par
with some of the other top brands.
Limited Choice
The Subway Promise
A healthy yet tasty treat for your taste buds while you rush to your commitments.
Our items are assured to be relatively nutritious, lower in calories and uniquely customizable
All this for our customers at an affordable price
Communication Strategy
An integrated approach is followed, to ensure the right marketing mix for Subway. Activities include:
- On-ground events
- Website development
- Social/Digital media marketing
- ATL advertisements (Newspapers, Television, Billboards, etc)
- Public Relations
- Dedicated franchise management team
> All campaigns by Subway focus on clear brand recognition by leveraging product innovation and contemporary
market trends
> For instance, Subway currently focused on launching fully vegetarian outlets in India, starting with Punjab &
Gujarat
CSR initiatives (Social responsibilities undertaken)
Getting families active
• In stores throughout the UK and Ireland, employees, customers and members of the public are encouraged to register for the annual Subway Helping Hearts Family 5k Series, in
partnership with leading heart health charity Heart Research UK
Reducing waste and sustainability
• Over the last few years, company has switched to using more sustainable products and business practices that use less energy and resources, and generate less waste. Some
highlights include:
• In the UK , subway has cut road miles by over 400,000 per annum by adding new depots to the distribution network for food and produce, and bringing them closer to stores
• Improved the energy efficiency of the equipment used in our stores
• Optimised packaging of ingredients which has removed at least 650 tonnes of cardboard from waste stream each year
• Cleaning chemicals are non-toxic, non-corrosive and are biodegradable
• Collaboration with pickle and pepper suppliers in Europe to reduce the amount of brine. This means that now shipping of 29% more product in the same amount of packaging,
saving around 47,000 cardboard boxes per year
• Napkins used are made from 100% recycled material and are fully recyclable
Waste commitments
• Hot drinks are served in a double-wall hot cup, replacing the triple-wall hot cup. This is estimated by the company to save 30 tonnes of pulp per year across Europe and takes
approximately 25% less energy to produce
• Sugar stick size has been reduced from 97-82mm which the company estimates brings about a 15% reduction in paper
• Franchisees are encouraged to serve customers with a reusable basket which reduces Sub Wrap usage by up to 20–30% in stores
• Reduced bag usage - stores now have the option of using a sticker to seal individually wrapped Subs for takeaway and bags are provided for takeaway purchases on request
Modern Slavery Act
• The Subway brand already independently audits its suppliers to ensure that they meet and maintain high standards of food safety, quality and product integrity, and are able to
demonstrate traceability throughout the supply chain.
• Although Subway brand does not yet reach the turnover requirements to be legally obliged to make a statement as required by the Modern Slavery Act
Food Provenance
• Subway also believes in the need to maintain sustainable fish stocks and support the use of independently assessed responsible fishing practices worldwide.
• Long-term goal is to work with industry to move to more sustainable practices via several methods including sourcing seafood from independently certified sustainable fisheries,
supporting protected areas and driving progress towards sustainable sourcing.
• All of the eggs that are used from free range hens. Whether it’s the eggs used in breakfast Subs, or the eggs used as an ingredient in products, like mayonnaise
THANK YOU
Group 3:
Akshay Krishnan B
Arun Kumar Singh
Astha Dixit
Atreyee Mitra
Bhaswar Chowdhary
Jai Gandhi
Manish Suryavanshi
