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Subway, having aggressive marketing strategy expects development agents to target more outlets than any other franchise in the same territory. This strategy enables Subway to build visibility in the region and making them the only market leader in the sandwich sector.
On the flip side, aggressive franchising can result in a loss of control. As a critical success factor the model is selecting the right business partner, as it is important that the franchisee shares the same strategic vision as that of the company.
As development agents are given the task to grow the company regionally, they at times saturate markets with Subway restaurants in a region and have two restaurants so close in location that they end up competing with one another. Although this may lead to lower profits per Subway location, it leads to overall higher profits for the entire chain and the Development Agent. However, Gulri clarifies, “When market is busy and shows potential for customers, then only we open more than one outlet. It purely depends upon the pull of …show more content…
Whereas chains like McDonalds and Pizza Hut have appointed master franchisees who have set-up stores with approval from the company.
On the branding front, Subway is lacking far behind international QSR companies like Domino`s, McDonalds and Pizza Hut. As players like these are heavy spenders on advertising and marketing activities, whereas Subway is planning to follow a rather novel marketing strategy in India. The competition is doing a lot more activities on their promotional tactics to get the flavour of localization.
On the basis of anonymity a Subway franchisee says, “We pay 4.5 per cent to the company for advertising fund, but the company does the branding only at the national level. Locally we only need to take care of our outlet. There is much scope of increase in branding Subway can do in India.”
But on the contrary the segment at which Subway based on the health platform has a unique positioning which shall emerge stronger in the long run. Other QSR companies have begun to offer healthier alternatives to cope up with the trend. Subway has managed to retain a healthy image in the fast food section all across the world. Subway needs to have lot more promotional activities to create a bigger segment of health conscious people in
On the flip side, aggressive franchising can result in a loss of control. As a critical success factor the model is selecting the right business partner, as it is important that the franchisee shares the same strategic vision as that of the company.
As development agents are given the task to grow the company regionally, they at times saturate markets with Subway restaurants in a region and have two restaurants so close in location that they end up competing with one another. Although this may lead to lower profits per Subway location, it leads to overall higher profits for the entire chain and the Development Agent. However, Gulri clarifies, “When market is busy and shows potential for customers, then only we open more than one outlet. It purely depends upon the pull of …show more content…
Whereas chains like McDonalds and Pizza Hut have appointed master franchisees who have set-up stores with approval from the company.
On the branding front, Subway is lacking far behind international QSR companies like Domino`s, McDonalds and Pizza Hut. As players like these are heavy spenders on advertising and marketing activities, whereas Subway is planning to follow a rather novel marketing strategy in India. The competition is doing a lot more activities on their promotional tactics to get the flavour of localization.
On the basis of anonymity a Subway franchisee says, “We pay 4.5 per cent to the company for advertising fund, but the company does the branding only at the national level. Locally we only need to take care of our outlet. There is much scope of increase in branding Subway can do in India.”
But on the contrary the segment at which Subway based on the health platform has a unique positioning which shall emerge stronger in the long run. Other QSR companies have begun to offer healthier alternatives to cope up with the trend. Subway has managed to retain a healthy image in the fast food section all across the world. Subway needs to have lot more promotional activities to create a bigger segment of health conscious people in