CHAPTER 3

FINDINGS AND ANALYSIS

3.1 MARKETING OBJECTIVES OF SUBWAY

SUBWAY's objective all over the world is to offer a wide range of tasty, quick and healthy
meals. It's important to us that our menu offers a wide range of healthier food choices for a
healthier lifestyle. Food safety and food quality are of paramount importance to us. Our quality
assessments ensure our food meets the highest quality and safety standards. We are proud to
provide our customers with more sensible fast food choices, such as our low-fat sandwiches.
We will continue to evolve our menu of great tasting, healthier options as well as provide access
to nutrition information. We believe it is important to provide complete nutrition facts on all
menu items, so customers can make informed meal choices.

In every SUBWAY restaurant there is a wide range of low fat subs that contain only 6 grams
of fat or less. No artificial Tran’s fats are contained in any of our foods.

To ensure the best possible ingredients in our food our suppliers must meet strict requirements.
We bake our breads and cookies several times every day and our veggies are fresh and cut at
each restaurant every day.

On a more personal level, Subway gives customers the choice of building a sandwich exactly
how they like it without charging extra for substitutions or add-ons. This strategy gives
consumers a sense of value. Subway takes their customers very seriously, indeed; they
implement many programs to build customer loyalty. Loyalty cards attract repeat business. The
use of social media and a program that outlines customer contact online, in store or via the
telephone identifies purchasing activity. Subway social media sponsor interactive activities and
special promotions to further build repeat business. A

3.2 Marketing Strategies adopted by Subway

1. Subway is analyzing the food marketing trends and trying to keep up with them.

2. Introducing competitive pricing scheme, packages with promotion schemes.

3. Delivering the fresh food 7/24 and thus maintain and getting customers’ loyalty.

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4. It has near 36,000 franchises and increasing with the passage of time.

5. Planners of subway marketing understand that “location matters.” They are opening
franchises where they can get more exposure and attention of public.

Quality Consistency Strategy

1. From the beginning of the company, “Subway” is offering high quality food to its all
customers.

2. According to the survey report of USA it has been ranked no. 1st in providing fresh and a
wide range of quality foods.

3. No compromise on customer service and product excellence.

4. Trying hard in the fresh food providing market to maintain the customers’ loyalty.

5. Willing to have developments in all food services.

6. “Subway” has fair and clear-cut dealings with his customers and share holders.

7. More attractive and affordable Manu.

8. Subway has “Quality Assurance” and a researcher team that study the market rend and make
considerable change to the ways that enhance the customer confidence over services.

3.3 MARKETING MIX OF SUBWAY

PRODUCT

The product policy of the Subway chain is international by using global branding and a
corporate identity. Every franchisee in the world should offer the core product portfolio. In
Denmark, Subway has a core product range of 15. The product line is defined through its
various kinds of sandwiches (program depth) but it is very close program bredth (mainly
sandwiches).

Moreover, Subway positioned itself as the healthier alternative within the fast food sector. As
the Euro monitor trends research showed (compare Euro monitor international, chapter 9.2
Trends), the upcoming wellness and healthiness is still ongoing.

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The survey results of the field research also determined that customers in each city of the
research expect food quality as the most important factor. This need to quality food, fits to
Subway freshness (slogan: “eat fresh”) approach according to the Danes.

PRODUCTS

Subway's core product is the submarine sandwich (or "sub"). In addition to these, the chain
also sells wraps, salad, Panini’s, and baked goods (including cookies, doughnuts,
and muffins).

Subway's best-selling sandwich,the B.M.T., contains pepperoni, salami, and ham. The name
originally stood for Brooklyn Manhattan Transit, but now stands for "Bigger, Meatier, and
Tastier".

Subway also sells breakfast sandwiches, English muffins, and flatbread. In 2006, "personal
pizzas" debuted in some US markets. These are made to order (like the subs) and heated for 85
seconds. Breakfast and pizza items are only available in some stores. In November 2009,
Subway signed a deal to serve exclusively Seattle's Best Coffee coffee as part of its breakfast
menu in the US.

A 2009 Zagat survey named Subway the best provider of "Healthy Options" (in the "Mega
Chain" category). Subway was also first in "Top Service" and "Most Popular" rankings. It
placed second in "Top Overall", behind Wendy's.

On April 18, 2017, Subway announced the addition of Panini’s to its menu. Chipotle Steak &
Cheese, Triple Cheese, Chicken Cordon Bleu, and Italian B.M.T. Melt were the four variations
announced.[29]

Before i start my observation, i would like to briefly introduce the products that Subway is
offering.

The main product of Subway is sandwich. However, besides sandwich, Subway do sell other
side products such as cookies, soup, snacks and drinks.

The goal of Subway is to offer quality made-to-order sandwiches that are specially customize
based on what customers have ordered to fulfill each of their tastes.

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Sandwiches in Subway are being classified into three types which are classic, favorites and
premium.

For classics sandwiches, there are Spicy Italian, Steak & Cheese, Chicken Teriyaki, Meatball
Marinara, Seafood & Crab and Veggie Delight. Each a la carte classic sandwich costs
Rm10.90++. A set of classic sandwich which come together with a sandwich, a beverage and
a cookie/snack costs Rm15.40++.

For favorite’s sandwiches, there are Roasted Chicken, Roast Beef, Turkey Breast, Tuna,
Turkey Breast & Chicken Slice and Chicken Slice. Each a la carte favorite’s sandwich costs
Rm11.50++. A set of favorite’s sandwich which comes together with a sandwich, a beverage
and a cookie/snack costs Rm16.00++.

For premium sandwiches, there are Subway Melt, Italian B.M.T and Subway Club. Each a la
carte premium sandwich cost Rm12.50++. A set of premium sandwich which come together
with a sandwich, a beverage and a cookies/snack costs Rm17.00++.
Customers are allowed to pick the bread, the veggies and the sauces of their sandwich
according their personal tastes.
Bread choices,
1. Hearty Italian
2. Wheat
3. Honey Oat
4. Italian
5. Parmesan Oregano
6. Wrap

Veggies choices,
1. Lettuce
2. Tomatoes
3. Cucumber
4. Peppers
5. Red onion
6. Pickles

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7. Olives
8. Jalapenos

Sauces choices,
1. Yellow mustard
2. Sweet Onion
3. Mayonnaise
4. Olive oil blend
5. Chili
6. Ketchup
7. BBQ
8. Ranch
9. Thousand Island

Besides sandwiches, Subway is also selling some side foods which include soup (mostly is
chicken soup), cookies, salad, chips and beverages.

Cookies choices, (1 piece Rm1.50, 3 pieces Rm4.00 & 12 pieces Rm15.00)

1. Oatmeal Raisin
2. Chocolate
3. Double Chocolate
4. White Chocolate Mocha

Beverages choices,
1. Bottled Water - Rm2.50
2. Can Drinks - Rm2.50
3. Hot Drinks - Rm3.00
4. Cappuccino Mocha - Rm3.90
5. Flavor Tea - Rm3.90
6. Bottled Juice - Rm3.90

Services
• Catering
• Online Ordering

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• Loyalty Program for Customers called Subway Club
• Make your own sub
• Nutritional Guide
You can know exactly what you are eating at Subway® Restaurants and to help you make a
healthier choice; they have created this interactive menu. You just have to simply select your
favourite Sub, Side or individual ingredient and view its nutritional breakdown. You can
customize your selected sub with your choice of bread, sauces and salads and the data will be
automatically updated.

Subway's menu varies between countries, most significantly where there are religious
requirements relating to the meats served.

Subway opened its first restaurant in India in 2001 in New Delhi. Subway restaurants in India
do not serve beef and pork products in deference to Hindu and Muslim beliefs respectively and
sell an extended vegetarian range due to the large number of vegetarians in the country. There
are 591 Subway restaurants in 68 cities of India as of January 2017. On September 4, 2012,
Subway opened its first all-vegetarian outlet on the campus of Lovely Professional
University (LPU) in Jalandhar, Punjab. On March 6, 2013, Subway opened its second all-
vegetarian outlet also offering Jain food in Paldi, Ahmedabad.

Nutritional Content

In 2011, Subway introduced gluten-free bread and brownies to some locations in Texas. It also
cut the salt content of its sandwiches by 15 percent.

In the United Kingdom and Ireland, Subway has reduced salt content across its entire range by
33% and has committed to further reductions, in line with government targets. Subway's range
of "Low Fat" subs is endorsed by the charity Heart Research UK.

PLACE

Subway has the distinction of being the fastest franchise in terms of growth in the whole world.
This restaurant chain has become the largest operators of restaurants that are nearly 42,673 in
number and with its franchises in one hundred and eight countries.
The international headquarter of the company is located in Milford in USA. The
international operations of Subway are handled through five centers that are based regionally.

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The offices for European regional franchise is in Amsterdam, the New Zealand and Australian
office is in Brisbane, the offices of Asian region are situated at Singapore, Lebanon and Beirut,
whereas the Latin American regional office is situated in Miami. The company is a 100%
franchisee based organization with all the restaurants being independently possessed and
maintained.

To open an outlet of Subway a person just requires the franchise fee that enables him the brand
name to build the outlet. Subway has been opening a number of restaurants on non-traditional
places and this unusual activity has proved to be a winner. The subway outlets are generally
opened in premium areas where people are bound to be more calorie conscious.

Subway is one of the fastest-growing franchises in the world[2] and, as of June 2017, has
approximately 45,000 stores located in more than 100 countries. More than half of the stores
are located in the United States. It is the largest single-brand restaurant chain and the largest
restaurant operator in the world

All Subways independently owned and operated. The kind of like a corner store selling Lay's
potato chips; they're permitted to solicit the brand name as long as their independent claims
agree with the big corporation's standard regulations. Even though they are known as the
'healthy' fast food place, a Subway franchise can choose to heavily promote their 'fattening'
sandwiches in an attempt to broaden their local customer base as long as they announce the
relevant copyrights and don't alter said copyright's nutritional claims.

However, all franchise owners also own part of an independent marketing company. A certain
percentage of all gross sales is automatically owed to that company, who uses the money to do
extensive research and fund advertisements (much broader than what any franchise would be
capable of on their own). It would be kind of counter-productive to be obligated to 'invest' in
that company but not honor whatever promotions it has deemed most appealing/profitable and
is therefore spending all of its money on.

There is a 0 level distribution network as no intermediary is involved. There is direct contact

between manufacturer and the consumer.

PRICE

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Subway is premium priced because when you compare it with KFC and McDonalds, it has a
higher price. However, the low-calorie content of Subway sandwiches makes it deserve of its
price. Subway has always maintained better quality of food products and hence kept their prices
a bit higher to match the product quality. Off course, the quantity of a sub sandwich is big too
so in general, it is at par with other competitors. Their differential pricing strategy with value
pricing is according to the value generation in terms of quality delivered by the Subway outlets.
Hence, this gives an insight on the marketing mix pricing strategy of Subway.

PROMOTION

Subway uses various promotional activities to promote its brand and products. Subway
advertise their products, employ personnel that personally sells, involve public relations and
sales promotions in its marketing mix promotional strategy. They use their slogan, ‘Eat fresh’
to promote the freshness and high quality food that they make. Most of their promotions are
directed to adults between 18-35, thus their advertisements are broadcasted majorly during
primetime, sports and on cable networks. Like every other brand, Subway's advertisements are
targeted so that the customers move up the brand from awareness set to consideration set when
it comes to eating in fast food chains. They have been making the sandwiches in front of their
customers to flaunt the quality and freshness of their ingredients and the way their sandwiches
have been crafted by their ‘Subway Sandwich Artists’. Subway have involved cartoon
characters like Peter Griffin for promoting their new sandwiches. They had a promotion series
for product placement in US TV series, ‘chuck’. They also had ‘Buy one sandwich, Give one
sandwich free’ promotional campaign on National Sandwich Day.

Promotions strategies and Penetration in the Market

1. Using electronic media for advertising.

2. Sponsoring the college, university and schools’ function to get introduced to the young
generation.

3. Using promotion schemes like; free cold drink, snacks, discounts on special occasions.

4. Training session, meetings, events organizing, beach parties and customers’ membership
cards.

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There are different individual components of the promotion mix to increase the awareness of
the brand and its products. Furthermore, it is the goal to increase the brand presence in the
consumers’ “consideration set”, to create a need, and to motivate the customer to buy the
product or service.

For Subway, it is necessary to create a Unique Advertising Proposition (U.A.P.) as they are
part of a saturated market. It is the goal to create a one-of-a-kind advertising message. To
generate an advantage in competition, a selling proposition has to be created by connecting the
advertising message with the product. (Hollensen 2003, 757)

There should be one main objective to the promotion campaign. Therefore, Subway has to
focus its message on tasty, but healthy food, which is prepared quickly and freshly in front of
the eyes of the customer. Besides that, this healthy food is affordable for everyone.

The promotion of the chain must be clearly focused towards the identified target groups, as
each target group has different interests and therefore different communication channels have
to be applied.

The promotion must have the right impact on the customers to be the most effective. Therefore,
it is necessary to know where they spend their time and what would attract their attention.
These questions have been answered in detail when defining the two main target groups in the
previous chapter.

The function of the aspired communication can be described with the AIDA-Model. Aida
stands for attention (attract attention), interest (arouse interest), desire (create need/desire) and
action (initiate purchase). (Articles base)

Online marketing

One of the main target groups of Subway has been identified as teenagers and pupils. As they
spend their free time hanging out with friends, online communities like Facebook or MySpace
would fit very well to this segment. One opportunity is to add banners with hyperlinks and/or
pop-ups on the most popular websites for teenagers. They could show the weekly/daily
specials.

In addition, the website of Subway gives information on the chain, the products and services.
Another direct marketing tool is direct mail. When people register with their email on the
website, they will get weekly newsletters about new products, special offers or coupons.

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Sales Promotion

Sales Promotion is addressing the target audience at the Point of Sale (POS) using temporary
campaigns. There are different ways of sales promotion which can be adapted to the Subway
chain, for example BOGOF promotion which means buy one get one free, coupons attached in
newspapers, money-off promotions, sampling, displays, tasting and customer bonus system
with coupon stickers. (Hollensen 2003, 585-587)

The Subway Franchisee Advertising Fund Trust - SFAFT

SFAFT is a centrally controlled promotion pool, which directs the advertising and other
marketing activities of Subway, to increase the awareness of the brand and its products.
(Subway Student guide National Advertising 2009)

SFAFT works independently of Doctor’s Associates Inc., which is the franchisor of the
SUBWAY® business franchise concept. Part of the advertising fee each franchisee has to pay
according to the Franchise Agreement, is placed into a national advertising budget. (Subway
Student guide National Advertising 2009)

SFAFT manages the promotion for each Subway chain, as it provides the franchisees with
advertising materials that are the most effective. These materials include point-of-sale
materials, public relation promotion, and advertising on TV. Of course, each franchisee can
make individual advertising in the local area, where they are located. If they hire a local
advertising agency, the principles and criteria of the SFAFT have to be respected. (Subway
Student guide National Advertising 2009)

Advertising

Subway is the second-biggest fast food advertiser in the United States, behind only
McDonald's. It spent US$516,000,000 on measurable advertising in 2011.

Subway used the advertising slogan "Eat Fresh", and focused on how its sandwiches were made
from freshly baked bread and fresh ingredients, in front of customers to their exact
specifications, by employees which Subway called "Subway Sandwich Artists".

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In November 2007, Subway's US commercials featured the cartoon character Peter Griffin
(from FOX's Family Guy) promoting its new Subway Feast sandwich. Subway has also used
"instant win" games, based on the game Scrabble.

Subway ran a product placement campaign in the US TV series Chucksince its first season. As
ratings dwindled in the second season, a campaign to "save Chuck" was launched for fans,
encouraging them to purchase a footlong sub from Subway on April 27, 2009, the date of the
season finale. Tony Pace, Subway's marketing officer, called it the best product placement the
restaurant chain has done "in several years."

To celebrate National Sandwich Day on November 3, 2015, Subway offered a Buy One
sandwich, Give One sandwich free promotion.

Subway introduced a new marketing campaign, "Founded on Fresh". The campaign focuses
upon Subway's establishment and early history, and features Fred DeLuca, as played by his
son, Jonathon. The new campaign downplays the use of jingles and celebrity endorsements
(besides "targeted" sports marketing), in favor of focusing upon the qualities of its products,
and specific products. Chief advertising officer Chris Carroll explained that the focus on fat,
calories, and weight loss were "what fresh used to be", and that the new campaign would focus
more on the sourcing of Subway's ingredients, such as its phase-out of antibiotic-treated meat.
Carroll also explained that the new strategy was being developed prior to the controversy
involving Fogle.

Media advertising

Advertising can also be done via national TV, radio and print. However, it is important to keep
in mind that TV advertising is very expensive and has to be planned very carefully. Local radio
and newspapers are a much cheaper ways to advertise.

Advertising in newspapers with coupons can be a good opportunity. This communication

channel addresses to the businessmen, who read the daily newspaper and too many other people
also.

Some examples of promotions –

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$5 footlongs

In 2008, Subway began to offer all foot-long submarine sandwiches (excluding premium and
double-meat varieties) for five dollars, in the continental United States and Canada, as a
"limited time only" promotion. "Five Dollar Footlongs" quickly became the company's most
successful promotion ever. Upon the initial promotion's completion, customer response
prompted Subway to create a permanent "$5 Footlong Everyday Value Menu" that offered
some footlong sandwiches for $5. As of 2011, there has been a monthly rotating $5 footlong.

In October 2011, a similar promotion was launched in the United Kingdom. Customers can
buy one of nine subs and any drink for £3 (for a six-inch sub) or £5 (for a footlong).[54] On
November 1, 2014, Subway discontinued the five dollar footlong promotion, replacing it with
the £6 six-inch select with a drink and a choice of cookies or chips.

Sub Club

In early June 2005, Subway announced its first customer reward program would be phased out
due to counterfeiting. The "Sub Club" program was discontinued in September 2013 by
Doctor's Associates.

Participating Subway restaurants in the U.S. and Canada offer a "Subway Card" to customers,
which functions as a stored-value cash card. In some states and provinces, the card also
functions as a "Subway Rewards Card", allowing customers to earn points for free food and
sandwiches. Unlike in the "Sub Club" program, no other purchase is needed when redeeming
points and registered cards can be replaced if lost or stolen. Subway runs periodic promotions
in which it gives away free subs to customers who pre-load a Subway Card with certain dollar
amounts, usually listed at mysubwaycard.com.

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All stores in the United Kingdom and Ireland participate in the Subcard system, offering
customers points with each purchase at a store, which are redeemable for subs and snacks.
Unlike in the US system, these cards cannot be used to store cash. The program was rolled out
in Germany, and other parts of Europe from 2012.[57]

Italian Hero

In early 2017, Subway introduced its Italian Hero, and advertised it with a campaign describing
it as an authentic Italian[-American] sandwich. Two comedic spots feature stereotypical
Italian-American characters on and around the stoop of a New York / New Jersey tenement
building, one including a cameo by sportscaster Dick Vitale. Another ad features Food
Network's Jeff Mauro, the "Sandwich King", who is Italian-American,[58] discussing the
nature and role of the different Italian meats and other ingredients.

Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing
mix of Subway.

People:

Subway, being a prominent restaurant brand, must focus on its people i.e. customers as well as
employees. More than 400,000+ people are employed with Subway worldwide, for whom
customer service is of the highest priority. Subway daily serves millions of customers
worldwide.

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Process:

One the USP of Subway is the transparency it gives to the customers while making freshly
made sandwiches. The services are important for a brand like Subway and hence they focus on
the customer service. As far as other business processes are concerned, Subway has efficient
food procurement, warehousing, storage, supply chain etc processes.

Physical Evidence:

For a restaurant brand like Subway, its main physical evidence are its stores. Subway has more
than 40000+ stores spread across the world. The ambience at the stores, the staff, location,
maintenance etc form the physical evidence of the brand. Also, the quality of vegetables,
chicken, breads used, because of which the product is made, completes the physical evidence
of the company. Hence, this completes the Subway marketing mix.

3.4 Market share & growth rate

Subway made its entry into India in December 2001 in the national capital Delhi. In May 2013,
Subway opened its 350th restaurant in India. During the recession era, when most of the global
giants reduced their speed of growth, Subway became more aggressive and came out to the
fastest growing international brand during economically challenging times.

In terms of sales and revenues Subway is also one of the largest limited service restaurant
chains in the global market. In the United States, Subway has some of the highest sales in the
quick service restaurant industry, ranked among other large brands such as McDonald’s and
Burger King. It is the leading sandwich restaurant chain in the U.S. with system wide sales
more than three times as high as its closest competitor Arby's.

What makes Subway so successful?

One of the reasons that make Subway so successful in India is that it adapts its menu to suit the
taste palette of the local population. The restaurant is known to work closely with local
suppliers and local chefs in order to prepare sandwiches and salads that Indians like. Except
olives, which are not grown in India, Subway sources all locally grown ingredients. Keeping

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in tune with the local preferences, 40 percent of Subway’s menu in India consists of vegetarian
dishes.

Another reason that cements the success of Subway in India is its business model. Franchises
are offered easily and entrepreneurs can start Subway outlets with low startup costs. The
operations are simple, operational costs are low and the company offers a lot of freedom for
the franchisers to offer creative services. As a result, more and more budding entrepreneurs are
tempted to choose the Subway franchise over other fast food chains.

The third factor that works tremendously in favours of Subway is its preference for non-
traditional locations. Unlike its competitors, Subway does not restrict itself to the prime
locations in commercial areas. Instead, the food chain has its outlets in college campuses, food
courts, theatres, stores and entertainment centres. These small booth-like Subway joints have
been tremendously successful in India.

Tremendous scope for growth

According to its chief development officer, Don Fertman, Subway aims to have one of its food
outlets for every 8000 people in over the world. Going by these lines, and considering the fact
that India has a population of 1.237 billion, Subway should have around 155,000 outlets in the
country.

3.5 SWOT ANALYSIS

Strengths in the SWOT analysis of Subway:

 No. of stores: Subway has 44,852 outlets compared to its competitors. McDonald’s has
36,615 while Burger King has 15,243. KFC is operating in 19,952 locations while Taco

31
 Bell has 7000 restaurants. This sheer difference gives Subway an added advantage to
cover larger potential population.

Graph 3.01

 High Brand Loyalty: It has a high brand recall and following among its customers.
The ones who eat here are high brand loyalists. On the most valuable restaurants in the
world, Subway holds the number third spot being beaten only by McDonald’s
and Starbucks. Its brand value stands at $10.314 billion.

 Health benefits: They offer healthy subs sandwich that is preferred and much better as
compared to food items offered by other fast-food chains like McDonald’s.
McDonald’s and KFC rely heavily on oily and fried foods which are completely
opposite to what Subway aims for. The rise of Subway rapidly can also be accounted
because of increasing health related problems by eating junk food and so customers
have started moving towards healthier options. This is probably the best strength in
the SWOT analysis of Subway

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  Easy Starting of franchise: Franchisee staff training is structured, brief and designed
to assure rapid start-up for new employees as these are all carried out by the agency
which has hired the brand name of Subway. This ensures easy set-up of new restaurants
at far off locations and smooth functioning without any obstructions of different
regulations.

 Differentiation: In the world of many different burger and pizza chains, Subway stands
different because it is a customsed sandwich. You can build it the way you like it with
the various ingredients on offer. If we consider the customization angle, no other fast
food brand has achieved the level of popularity which subway has achieved. This
differentiates subway and makes it a loved brand amongst the various food franchises.

Weaknesses in the SWOT analysis of Subway:

 Brand Value: Although having the highest no of operating locations in the world
Subway still suffers in brand value when compare to its biggest competitor
McDonald’s. It is also not very far away from its closest competitors, though in
restaurants it is solidly at the second position (keeps changing year on year).

 Satisfaction and Level of Service: Because of the training of the staff is outsourced to
the ones who have franchised does not ensure a common level of service satisfaction
around all the Subway stores around the globe. The commitment cannot be the same
across all the restaurants.

 Old-fashioned themed restaurant: Subway has not updated their restaurant’s styles
accordingly to the changing times. This results in poor satisfaction level of the
customers leading to the customers changing their preferences over time.

 No Online Presence: No online presence and promotions affect the brand name of the
company. Today in the digital era online presence is equally important. This is where
Subway lacks.

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  Many Employees: Subway employees’ job is a low paid and a low skilled job. It results
in low performance and high employee turnover, which increases training costs and add
to overall costs of Subway.

Graph 3.02

Opportunities in the SWOT analysis of Subway:

 Health Consciousness: People are getting more and more health conscious in today’s
world. So, Subway can actually exploit this and become more successful as brand and
restaurant.

 Home Delivery: Most of the successful restaurants are providing services like home
delivery. Subway needs to pick up on this trend and start catering the home delivery
loving potential customer.

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  Diversification: Subway has stuck with only one kind of product i.e. Subs but it needs
to diversify into different kinds of healthy options and stay in the competition. They
can utilise their already established customers to change their eating habits and generate
more loyal customers.

 Drive through: Also one of the services offered by its competitors is drive through the
facility for the quick and working class people. Subway needs to apply this in their
restaurants as well.

 Vegetarian Foods: Mostly Subway offers different kinds of meats but lacks in a varied
menu for vegetarians. It needs to diversify in this front as well.

Threats in the SWOT analysis of Subway:

 Competition: Subway can face a serious threat from competition like McDonald’s,
KFC, Taco Bell, Wendy’s which also have a loyal following. If they also start providing
low-fat food options this can seriously damage Subway’s customer base.

 Saturated Market: New restaurants are coming up with the same model as of
Subways. This can damage the customer base as they can influence the local people
better and serve their needs better in the regional base.

 Bad Reputation: There have been some lawsuits against the brand regarding stale and
unhealthy food that was being served to the customers. This damages the brand’s trust
and makes people reluctant to try them again.

 Trend Change: If people start caring about their food (somewhat unhealthy) more and
might want more spice of taste to it they may choose to move to other restaurants.

3.6 Competitor Information

Subway is not without competitive pressures. Chief competitors include Yum! Brands,
McDonalds, Wendy's, and Jack in the Box and Mr. Sub. Yum! Brands are the world's largest,

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with 33,000 restaurants in over 100 countries. Four of the company's highly recognizable
brands, KFC, Pizza Hut, Long John Silver's and Taco Bell, are global leaders of the Mexican,
chicken, pizza, quick-service seafood categories. Yum! Has a workforce of 272,000 employees
and is headquartered in Louisville, Kentucky.

McDonald's Corporation (McDonald's) is the world's largest foodservice retailing chain with
31,000 fast-food restaurants in 119 countries. The company also operates restaurants under the
brand names 'The Boston Market' and 'Chipotle Mexican Grill'. McDonalds operates largely in
the US and the UK and is headquartered in Oak Brook, Illinois employing 447,000 people.

Wendy's International (Wendy's) operates three chains of fast food restaurants: Wendy's (the
third largest burger chain in the world), Tim Horton's, and Baja Fresh. Wendy's operates over
9700 restaurants in 20 countries, has been included in Fortune magazine's list of top 500 US
companies, is headquartered in Dublin, Ohio, and employs about 57,000 people.

Mr. Sub, originally called Mr. Submarine before the 1990s, is a Canadian chain of over
200 sandwich shops.[3] The first store was opened in 1968
in Toronto's Yorkville neighborhood, which was then known for its "hippie" culture.[3]

As of 2015, Mr. Sub has seven restaurants across India, one in Dubai,[4] and one in Saudi
Arabia with the rest being located in Canada

Competitor analysis

Product Competitors like McDonald’s and Burger King have many similarities in their menus
for example French fries, burgers, salads and drinks. Taking a closer look at Sunset Boulevard,
it can be noticed that they offer healthier products to the customers, for example smoothies
instead of milkshakes or sandwiches instead of hamburgers. Furthermore, McDonald’s and
Burger King offer some special burgers/menu for children same as Sunset Boulevard. For the
children there are additional toys in all the three competitors.

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