Ch. 7 - Business Marketing

 Strategic Alliances

 

    The SUBWAY franchise is actively seeking businesses to lease space to a trained franchisee. There are also thousands of corporate, as opposed to individually owned, SUBWAY stores around the world. The flexibility of the chain’s franchise system has allowed SUBWAY outlets to open in a variety of locations such as convenience stores, shoppin centers, air ports, hospital, convention centre, and places of work.

 

Subway restaurants and wal-mart store

 

    During the past 10 years, SUBWAY® restaurants have presented their menu options to millions of U.S. Wal-Mart customers, as the world's largest retailer has teamed with franchisees of the world's largest submarine sandwich chain to provide delicious SUBWAY sandwiches and salads at many of their locations. The SUBWAY chain's sustained growth in this arena has not gone unnoticed, as the Wall Street Journal recently highlighted the SUBWAY chain's success in its mutually beneficial Wal-Mart partnership.

 

Subway restaurants and The Walt Disney Studios

 

    In addition, SUBWAY restaurants recognized The Walt Disney Studios for outstanding brand collaboration at the recent SUBWAY Convention in Nashville, Tennessee. Closely shared values of family have fueled the SUBWAY-Disney relationship throughout the years and through various film properties. Each SUBWAY Fresh Fit for Kids meal will be included a low-fat sandwich paired with apple slices and low-fat milk or bottled water, and is an option that kids enjoy and parents can feel good about.

 

Subway restaurants and Lionsgate Entertainment

  

    Subway Restaurants and Lionsgate have announced a new partnership to promote The Hunger Games : Catching Fire. The partnership will also help support Feeding America, a nonprofit that includes over 200 food banks across the U.S. Standees of Catching Fire characters will also be featured in Subway restaurants for fans to snap photos with. They will be encouraged to share their photos on social media for other chances to win.

Relationships in other cultures

 

    With more than 40,000 locations in 103 countries, the SUBWAY® brand is the world’s largest submarine sandwich franchise, and has become a leader in the international development of the quick service restaurant industry. Wherever SUBWAY restaurants are located, the core menu stays relatively the same — with the exception of some cultural and religious variations. World travelers can expect the same high quality of ingredients regardless of what nation they are visiting. You can enjoy a footlong Turkey Breast Sub, with your choice of a variety of vegetables and condiments served on bread baked right in the restaurant in Jamaica, then travel to New Zealand and get the same footlong Turkey Breast Sub.

Ch. 8 - Segmenting and Targeting Markets

 
Segmentation
 
Subway segmented their market based on the test of different geographic location. For example, they offer mostly halal menu in Middle East countries, mostly vegetable without beef in India, likewise, more sauce for American. And according to subway it majority of customer are concentrated on the age group in between 18 to 39 years mostly the people are either studying or working. Therefore, by providing healthy and fresh food, subway segmented the customer based on the trends or psychological. Besides by offering the reasonable priced food with fast services, subway wants to suits the pockets of the many college going adults as the concept is something related to the value for money.



 
Targeting
 
Subway targets market is young adults between age of 16 & 39, although people of all ages and background enjoy the delicious and healthy sandwiches. Majority of population lies in between these age groups. Subway understand that these target market customer have irregular food habit and are spoiled for the variety of food choices, these customers are intended to choose what they wanted and how structured they want it, they have high expectations with low loyalty. Subway sandwiches offered to its customers as per their specifications, in front of the customer according to his choice. Subway is offering its customers the choice of “point to order”, so that new customers won’t confuse for their selection. It is the exact opposite way of delivering the service by its competitors like KFC, Mc Donald’s, Burger King, Popeye’s and others. 


Positioning
 
Providing a healthy fast food chain for a healthier and hygienic food is a brand value strategy of Subway. The listing of the healthy items includes the fresh and fast food items that reflect the menu The above positioning is further strengthened by maintaining a good relation with the American heart association and getting worldwide recognitions due to its healthy supply of food and offering to all ages. It sends messages to its customer that they are positioned as a fresh and healthy food

Ch. 11 - Developing and Managing Products

Subway Deveoloping Two New Gluten-Free Menu Items: Bread and Brownie

        Subway is testing two new gluten-free menu items. The fast food chain will conduct the trial starting at stores in Dallas and Tyler, Tex. The baked goods will arrive pre-packaged and individually wrapped, and workers will be trained on how to cut them using a pre-wrapped knife to avoid cross contamination.
On the surface, this could be good news for people with celiac disease and gluten intolerance, since options for gluten-free meals in fast food restaurants, while growing, are still pretty limited.
But it also could be a nightmare of cross contamination --I used to eat in Subway frequently pre-diagnosis, and all the sandwich ingredients, plus the preparation area, usually were covered in bread crumbs.
I honestly don't see how they could make a safe gluten-free sandwich at Subway without getting all fresh ingredients from the back. But I applaud them for trying, and I truly hope they come up with a way to handle it that will work.

How does the SUBWAY® brand ensure food safety in its restaurants?

        All SUBWAY® restaurants follow our “Gold Standard” policies regarding prepared food and produce manufacturing and inspection specifications. All franchises are provided with information on proper food handling procedures in order to properly train their crew members.
Food is prepared fresh daily and temperatures are monitored regularly. Gloves are required to be worn during all food handling procedures.

 

        Also, the American Heart Association’s (AHA) heart-check mark that has been on grocery-store products for 17 years is now extending to the restaurant industry, with a certain sandwich chain paving the way. Last year, Subway became the first restaurant chain to participate in the AHA’s Heart-Check Meal Certification program, a two-year pilot program in which menu items that meet the required nutritional criteria can display the AHA’s Heart-Check mark.

 

Ch. 18-Social Media and Marketing

SUBWAY Twitter & Face book

        With nearly 15 million friends on SUBWAY's facebook page and over 555,555 followers on Twitter, subway spend a tremendous amount of time not only sharing news about special promotions at Subway, but also listening, responding and amplifying customers' stories or their concerns to make sure they know they are being heard.
   

 

 

        Twitter : Definitely key to success for any business is to provide the best service to its customers and to get the satisfactory response from them. Subway does a great job of making sure that they are constantly engaging with their customers via Twitter. They recognize the importance of social customer service. The brand does not only use their Twitter handle for promotional purposes, but they take advantage of the opportunities it provides for them to connect with their customers.

        Facebook : Subway restaurants is under fire after an Australian man posted a photo on the company's Facebook page of one of its footlong sandwiches next to a tape measure that shows the sub measuring up to 11 inches. While Subway has had much success with their “$5 Footlong” promotion, more than 100,000 people have "liked" or commented on the photo, which is accompanied by the caption, “Subway pls respond.”


        It has definitely changed the landscape of customer service for all of SUBWAY franchisees by providing a platform for consumers to share their feedback in real time

Ch. 10 - Product Concepts

Subway's concept (choices)
          Americans love choices. They pride themselves on the ability to make decisions. They're mature individuals after all, they can handle their lives with the sensibilities of a well-informed decision.
 
Subway sandwiches have quickly become a familiar and favorite brand for American consumers across the country, and is picking up markets spanning the globe. The variety, selection, fresh ingredients, and countless options to make your signature sub haven't stopped us from enjoying that steady lunch from this franchise.

 With the development of five different bread options, six different sauces, 15+ sandwich/salad toppings, five types of deli-style cheese, 5 types of meat, and a revolving menu of specialty subs, its enough to make your head spin.
In addition, when your next visit the store, you'll notice a few key differences.

1. There is usually not a standard sandwich setup; competitors are offering very unique and individual concoctions that aren't so easily mixed and matched.
2. The sauces cannot usually be transferred from one sandwich to another; if the sandwich is a Reuben, you usually can't put the Thousand Island dressing on a BLT (unless you ask nicely, but it could take a while).
3. The menu offerings aren't quite so frequently advertised, nor are the newest additions flashed across evening primetime television for weeks straight as the sole provider of new ideas for our pleasant sandwich-making process.

Subway's new concept

      Subway Cafe’s are set up essentially the same (as a traditional Subway) as customers order sandwiches the way they’re used to, however, Subway Café’s include baked goods and dessert items and a full line of espresso-based creations. Subway Cafe’s signature menu items are in addition the the regular fare.

Ch. 17 - Personal Selling and Sales Management

retaining loyal customers (Subway eat fresh club)
       Subway is giving away free lunch to those who join their Subway Eat Fresh Club. In addition, you'll be emailed details just before your special day such as your birth day on how to claim your free 6 inch sub adn drink. You'll also get special offers and more just for joining.








Relationship selling

Subway's core product is the submarine sandwich (or "sub"). In addition to these, the chain also sells wraps, salad 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 "Biggest, Meatiest, Tastiest".
Subway also sells breakfast sandwiches, English muffins, cookies, and flatbreads. In 2006, "personal pizzas" debuted in some US markets. These are made to order(like their subs) and heated for 85 seconds. Breakfast and pizza items are only available in some stores. In November 2009, Subway signed a deal to exclusively serve Seattle's Best Coffee coffee as part of their breakfast menu in the US.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Advertising

Eat Fresh

Subway’s slogan is perfect.

Subway uses the advertising slogan "Eat Fresh", and focuses on how their sandwiches are made from freshly baked bread and fresh ingredients, in front of customers to their exact specifications, by employees whom Subway calls "Subway Sandwich Artists".
How much more simple could they make their slogan to imply so much? Does any other national

food chain come close to competing? You can see your food being made with tons of leafy greens piled high right before your eyes.

Sales Promotions 

One of the biggest reasons I personally love going to Subway is for the food and how it is the same sandwich yet it is just a little bit different every time. I can order the same Roasted Chicken Breast sandwich from 5 different Subway Restaurants and they will be just a little bit different each time. Not to mention a few extra or fewer veggies or sauces adds an element of satisfaction you are looking for at that moment. Having the ability to add or take away as you see fit is a nice and welcomed change from the other fast food joints.


 

$5 Footlong

A Subway franchise owner by the name of Frankel started something huge. He was looking for a way to increase slumping weekend sales at his restaurant, and that triggered the idea of selling Footlong subs for just $5.
“There are only a few times when a chain has been able to scramble up the whole industry, and this is one of them,” says Jeffrey T. Davis, the president of restaurant consultancy Sandelman & Associates. “It’s huge.” Just take a look at what the competition has done since the $5 Footlong introduction. In fact, the $3.8 billion in sales generated nationwide by the $5 footlong alone placed it among the top 10 fast-food brands in the U.S. for the year ending in August, according to NPD Group.

Sub club

 

In early June 2005, Subway announced its customer reward program would be phased out due to counterfeiting. The "Sub Club" program was discontinued in the US.
All stores in the US in the Subcard system, offering customers points with each purchase at a Subway store, which are redeemable for subs and snacks. Participating Subway restaurants in the U.S 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 preload a Subway Card with certain dollar amounts.