Essay about Marketing Strategies of Subway

3637 Words Sep 15th, 2010 15 Pages

Subway is a leading sandwich chain, which operates through a wholly-owned subsidiary, Subway Systems India. The caselet provides an overview of the product strategy followed by Subway that involved customization of its recipes and preparation to match the tastes and sensibilities of Indian consumers. The caselet also illustrates the franchising method adopted by Subway in India. Finally, it provides a brief description of the company's pricing and advertising strategy

As a SUBWAY® store owner, you’ll be part of the world’s largest restaurant chain and one of its most recognized brands, with the support and experience that goes along with it — a brand that keeps customers coming back for better-for-you meals made just the way
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As of December 30, 2008, the company has 32,401 franchised locations in 91 countries and produced US$9.05 billion in sales every year. In 2007, Forbes magazine named De Luca number 242 of the 400 richest Americans with a net worth of $1.5 billion.
In addition to traditional restaurants, Subway operates in many non-traditional locations. For instance, there are over 900 Subway locations inside of Wal-Mart stores and 200 on military bases, including several in Iraq and Afghanistan, in addition to three located inside The Pentagon, as well as an increasing number on college and university campuses. In UK and Ireland some Subways are located inside Londis stores.[citation needed]
Subway restaurants have been consistently ranked in Entrepreneur Magazine's Top 500 Franchises, and was selected as the #2 overall franchise in 2008. Additionally, it was ranked as the #3 "Fastest Growing Franchise", and the #1 "Global Franchise" as well.[6]
Subway`s marketing model
In totting up to its strong positioning as a more health-conscious restaurant, much of Subway`s rapid growth can be credited to its somewhat unique business model. Unlike most franchisors, the parent company does not operate any restaurants. Local franchisees operate the stores, and in most markets Subway enters into a contract with a franchisee to be its `development agent` for that market.

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