Ch. 4 - The Marketing Environment

        All businesses are affected by national and global economic factors. The climate of the economy dictates how consumers, suppliers and other organisational stakeholders such as suppliers and creditors behave within society.
As the economy is in a recession due to the financial crisis right now, it has the impact on the potential customers that they generally have less money to spend. Due to that fact, people might tend to keep the money in their pockets and cut down on expenses in their everyday life. One consequence may be that they reduce or cut down on restaurant visits. That can be seen as an advantage that they reduce visits to more expensive restaurants and instead visit less expensive fast food chains. In that an opportunity would arise for fast food chains like Subway. People do not want to renounce totally to go out for lunch or dinner and therefore they might choose more affordable places. Besides that, compared to other nationalities, Malays earn quite a lot. As a result they are not so affected by the crisis and do not have to cut down so much in their everyday life.
Population changes also have a direct impact on organisations. Changes in the structure of a population will affect the supply and demand of goods and services within an economy. Therefore, people have more money to spend. As a result, there are more potential customers for visiting fast food chains.

Subway Restaurant - Globe Locations

        Subway sandwich chain beats out McDonald’s Corp. as the world’s largest restaurant chain, in terms of units according to the Wall Street Journal.  At the end of 2010, Subway had 33,749 restaurants worldwide, versus McDonald’s 32,737.  As more restaurant chains look to grab market share in a trying economic environment, Subway may be offering more value as a healthier alternative as their slogan suggests “Eat Fresh”
Could Subway’s new fame globally usher in a new era of fresh alternatives at the drive through window? Already, McDonald’s has changed their menu and Burger King as well as other fast food restaurants are offering healthy alternatives to keep customers coming back.  Look for fast food chains to continue to offer healthy food and work harder to market the fresh, tasty -new offerings.  Subway’s Jared definitely helped the marketing for the restaurants and he is still popular as a cultural icon.

Heart Health & Childhood Obesity
Coronary artery disease is the most common form of heart disease and is a leading cause of death worldwide. Every year about 870,000 Americans die from cardiovascular diseases and stroke. A major factor is poor lifestyle habits prevalent among American adults and children.
Subway is particularly passionate about heart health and doing our part to fight childhood obesity by encouraging healthy eating habits and living active lifestyles.

Ch. 3 - Ethics & Social Responsibility

       

Subway Restaurant's Ethics

         Subway's vision is to make the restaurants and operations as environmentally and ethically responsible as possible. Every day, Subway strives to conduct business in a way that has a positive impact on the environment while improving the lives of their customers, franchisees, employees, vendors and communities worldwide. Subway believe that using good, environmentally sound business practices help increase their franchisees' profitability, improve their customers dining experience as well as help protect the planet. They promise to Continue to evolve their menu of great tasting, healthier options as well as provide access to nutrition and healthier lifestyle information. And, to ensure food meets the highest quality and safety standards. Also, Subway trys to find sustainable and cost effective solutions that serve the business needs of franchisees. In addision, they focus on sustainability initiatives on energy efficiency, water & resource conservation, waste reduction, sustainable sourcing and supply chain management. Finally, Subway encourages their franchisees' to contribute to their communities, promote diversity and choose  “environmentally friendly” options and business practices such as building Eco-Restaurants.

Subway Restaurant's Social Responsibility


        The SUBWAY brand understands the importance of offering a variety of healthy options and providing access to complete nutritional accurate information for thier customers. Over the past several years, Subway has switched to products and practices that improve energy efficiency, water conservation, food and water quality and reduce our waste stream. From streamlining they supply chain or using a strict Vendor Code of Conduct that ensures our high food quality and safety standards are met, they not only help reduce energy, water usage and waste but they’re taking care of the environment too. Subway knows that it takes more than just good food to nourish people and build vibrant communities. It starts with taking care of people, the heart and soul of the Subway experience. Whether a walk-a-thon in your community or a large school event, they’d love to help out with your local charity or educational institution’s event.

Ch. 2 - Strategic Planning for Competitive Advantage

 Competitice Advantage - means that a firm has a marketing mix that the target market sees as better than a competitor's mix

 SWOT analysis - that is, the firm should identify its internal strengths(S) and weaknesses(W) and also examine external opportunities(O) and threats(T).

 

Strengths:

• (Scale) Subway Restaurants is one of the leading submarine sandwich franchise based in the world.(20,532 restaurants all over the world).
• (Customization) Customers are able to choose great degree of healthier meals.
• (Price) Low startup Costs.
• (Place) Subway has positioned itself in places like hospitals, churches, schools and popular retail stores like Home Depot and Wal-Mart.
• (Food) The food menu of the Subway reflects the high demand of healthy and fresh food which is also fast.

 

Weaknesses:

• (Decor) The interior design of the oultets often outdated.
• (Service3-1) Service commitment is not consistent from store to store.
• (Service3-2) There are no drive through availability and child entertainment.
• (Service3-3) Limited seating in most stores and menu.
• (Staff) Employee turnover is high.
• (Food) No desert options for gluten-free or diabetic diet.

Opportunities:

• (Invest2-1) The company can invest more to expand its business in the international market. (additional global stores)
• (Invest2-2) The company can update interior and look to encourage dine-in.
• (Service2-1) Instroduction of drive-thru.
• (Service2-2) Home meal delivery.
• (Customer) Changing customer habits and new customer groups.
• (Food3-1) Good nutriton geared to all ages. (children and seniors can enyoy)
• (Food3-2) Help to control childhood obesity.
• (Food3-3) Increasing demand for healthier food.

Threats:

• (Competition3-1) Competition has better quality of meat.
• (Competition3-2) Competiton decreases their prices.
• (Competition3-3) The company faces serious threats from large fast food chains in the world like Wendy's, KFC, McDonald, etc.
• (Service) Lack of drive-through means patrons could go elsewherefor quicker service.
• (Bad economy) The current economic recession is another threat for the company as it directly affects the consumption and spending power of the consumers.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement)

The Subway Sandwich Fast Food Restaurants History:

Back in 1965, Fred DeLuca set out to fulfill his dream of becoming a medical doctor. Searching for a way to help pay for his education, a family friend suggested he open a submarine sandwich shop.

With a loan of $1,000, the friend—Dr. Peter Buck—offered to become Fred’s partner, and a business relationship was forged that would change the landscape of the fast food industry.

The first store was opened in Bridgeport, Connecticut in August, 1965. Then, they set a goal of having 32 stores opened in 10 years. Fred soon learned the basics of running a business, as well as the importance of serving a well-made, high quality product, providing excellent customer service, keeping operating costs low and finding great locations. These early lessons continue to serve as the foundation for successful SUBWAY® restaurants around the world.

By 1974, the duo owned and operated 16 submarine sandwich shops throughout Connecticut. Realizing they would not reach their 32 store goal in time, they began franchising, launching the SUBWAY® brand into a period of remarkable growth which continues to this day.

Today, the SUBWAY® brand is the world's largest submarine sandwich chain with more than 37,000 locations around the world. We’ve become the leading choice for people seeking quick, nutritious meals that the whole family can enjoy. From the beginning, Fred has had a clear vision for the future of the SUBWAY® brand. As we continue to grow, we are guided by his passion for delighting customers by serving fresh, delicious, made-to-order sandwiches.

The Subway Sandwich Fast Food Restaurants Mission Statement:

In its clarity, simplicity, and achievability, the Subway Sandwich Restaurant chain has one of the best mission statements in the U.S. restaurant industry. The Subway mission statement is...

"Delight every customer so they want to tell their friends – with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience."

Subway fast food restaurants also have a larger vision, which is the inspiration for its international restaurant operations. The Subway restaurants and franchises Vision is...

"Be the #1 Quick Service Restaurant (QSR) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience."

How Subway Sandwich restaurant franchisees and employees achieve the company's mission and make the Subway vision a reality is further defined by the Subway Core Values and Philosophy...

• Family – We build our business relationships by serving each other, our customers and our communities, much as we do within our own families.
  
  
• Teamwork – We challenge ourselves and each other to succeed through teamwork, against shared goals and to be accountable for our responsibilities.
  
  
• Opportunity – We create an entrepreneurial, ever-growing SUBWAY® community, increasing the opportunity for everyone.