SUBWAY® chain was founded by Fred DeLuca in Connecticut, USA, in 1965. It has now been a multi-billion company with more than 30000 outlets in 87 countries. There were 1254 open SUBWAY® restaurants in Australia till March 2011. As it has become a very popular brand, there are progressive plans to frequently open more SUBWAY® restaurants in Australia in the future. ‘Franchise 500’, an entrepreneur magazine has named it as the number one franchise opportunity based on research and surveys of franchises located in the United States in 2010.
1. Are the corporate objectives clearly stated and do they lead logically to the marketing objectives?
The corporate objective of SUBWAY® is very straight forward, i.e. to bring the customers into
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On the other hand one has to keep their store clean and well organised. Thus, it affects the various areas of marketing such as advertisement, better quality of service and customer satisfaction. Meanwhile as it’s a franchise company, their franchisees must have to work hard to make improvements regarding their food and services. Although to achieve their objectives SUBWAY® as a whole organization, have to work hard in improving its menus or in advertising its …show more content…
3. What is the core marketing strategy for achieving its objectives? Is it a sound strategy?
The core marketing strategy of SUBWAY® for achieving its objectives is to address health, fresh and custom-made sandwiches in accordance to the expectation of the customers by number of approaches. SUBWAY® introduces national sponsorship event like American Heart Association Heart Walks as well as local events such as triathlons and children’s sports teams to market its product. The marketing strategy of SUBWAY® is one of the best examples of focusing on market demand, consumer trends, product leveraging and innovation.
It is a sound strategy because SUBWAY® have been strategically positioned to advance market share in near future by the marketing strategies of creating clear brand recognition, brand and product association and market demands. Moreover, these marketing strategies are also repeatable fundamental marketing strategies surpassing the fast food market. SUBWAY® is in constant touch with consumers through its dedicated specialist customer care team. As a part of their marketing strategy, SUBWAY® identifies which venues and retail chains would be most manageable to quick-service brands as branded fast food has began to move into other non-traditional venues such as colleges, airports, military bases, hospitals and amusement
During week two, Learning Team B will take a thorough look at the Olive Garden Italian Restaurant chain. Team B has decided that a new appetizer item should be added to the restaurant menu. The appetizer item being considered is cheese filled breadsticks served with Marinara sauce. The team will begin this marketing plan by giving an overview of the Olive Garden Restaurant, along with a detailed description of the new menu item being considered. They will also explain why marketing plays an important role in the restaurants success. A SWOTT analysis will be given to introduce all the strengths, weaknesses, opportunities, threats, and trends that should be considered prior to
If the Sandwich Blitz, Inc. were to expand on a large scale, strengths include the current consistency in the quality of food that is found among the current eight freestanding shops and the historic performance of these shops. The 30% return on investment for 2011 shows that the company has been successful and is in a good place financially for expansion. Another strength is that the sandwich and beverage shops do not require a large lease in order to be successful. Being able to lease land that is unsuitable for most commercial purposes gives the company a competitive advantage when negotiating leases and would continue to be a strength in the large-scale expansion.
By 2010, Panera Bread Company (PBC) stood ahead of the crowd; once a pioneer in the fast casual concept of dining, the organization has now far surpassed its competition (Vincelette & Fogarty, 2010). Enduring economic challenges that only strengthened the organizations position as industry leaders while competitors struggled to exist, Panera’s co-founder and majority shareholder Ronald Shaich pushed through the years with strategic plans, implementation, and actions (Wheelen, Hunger, Hoffman, & Bamford, 2015), that led to success in creation of the “fast-casual” innovation of dining (Vincelette & Fogarty, 2010). The concept offered consumers healthier, quick dining choices in comparison to the outdated version of fast food chains (Vincelette & Fogarty, 2010). Food wasn’t the only attraction that led to brand name recognition...trends towards an atmosphere that was cool and inviting with upscale decor, inviting, comfortable atmosphere (Vincelette & Fogarty, 2010), warm and friendly welcoming employees, and product and menu diversifications contributed to Panera’s appeal (Rowe, 2006). This made consumers wanting to come back (Vincelette & Fogarty, 2010), therefore adding to the quality and value of the company’s organizational structure and social culture (Wheelen, et al, 2015). Shaich’s vision used strategy as a means to expand the organization in many
As you walk through the doors of Panera Bread, the lighting and décor calm you while the fresh smells of the bakery envelop you. Every detail has been carefully coordinated to ensure a high quality dining experience at a reasonable price. This sophisticated concept for Panera began when a cookie company and a fast casual restaurant, called Au Bon Pain, synergized their efforts and found a propitious niche between fast food and fine dining (Repetti & Vincelette, 2005). By 2003, the company was able to generate significant revenues through company-owned stores, through the sale of fresh dough to franchisees, and through royalties and fees paid by franchisees (Repetti & Vincelette, 2005). In an effort to ensure success of Panera’s strategic
A key aspect of Panera Bread’s business that protects the company from direct competition in the fast food industry is their product niche, artisan fast food. Fast food chains are often criticized for offering unhealthy foods. But, Panera Bread focuses on a higher nutritional value in their products. Dine in restaurants are very susceptible to drops in consumer spending, so Panera Bread’s
Panera’s over time has grows to become a leader in the american food industry.In this particular case ,the strategy use by panera is based on product differentiation and on offering a better pricing.This strategy comes from the company blueprint called Concept Essence which consist of competitive advantage via (a) great, high quality, healthful food and (b) superior customer service.The concept also include a product differentiation strategies involve a selection of artisan breads, bagels and pastry products that are handcrafted and baked, designing bakery-cafes that are pleasing and inviting, high quality foods, a menu with sufficient diverse offering, providing courteous, capable and efficient customer service and offering patrons a sufficient
Panera Bread Company’s strategy comprises of offering a premium of the specialized bakery as well as excellent cafe experience to its customers who include suburban residents and urban workers (Arthur, 2016). The strategy is further enriched by an effective broad differentiation strategy. The company seems to be concerned with designing and producing its products in unique in ways in order to cater for its wide range of consumers and satisfy them adequately. The company developed this strategy after a thorough market research that aimed at identifying what consumers could want. The company had a pack of product that significantly excited customers that constituted of fast food as well as casual dining.
A business must be highly competitive in the business markets today. For a business to grow successfully, remain sustainable, and competitive a business needs a good understanding of a marketing plan, and the knowhow to put the concepts to work for the business achieving a successful marketing strategy. Remaining successful when an economic growth has leveled out shows a sustainable business. Competitors that follow the same marketing concepts will need to develop a good marketing plan, and implement the concepts into a marketing strategy to remain a competitive business. A good marketing strategy contains a marketing plan describing the products offered, and taking into account
For Subway Sandwiches, the global leader in franchised subway sandwich shops, the segmentation criterion that affects target market selection varies significantly within each community, city and metropolitan area chosen for expansion. At their most fundamental level, segmentation strategies at Subway are based on a broad base of assumptions with regard to socio-economic and demographic factors including age, income, mix of genders in a given region, ethnic composition of a community, vehicle ownership versus mass transit use, and media habit including social media use. All of these factors are included in the foundational elements of the Subway Sandwich market planning, marketing strategy and store planning. Additional factors that segmentation strategies are often based on are discussed in this analysis.
Subway Sandwich, as presented in the Case Study presented in the Marketing Management MGT 551 class, is an undisputed market leader in a segment that is “firmly established as a nationwide food item for which there is plenty of room in all areas” (University of Phoenix, 2008). However, with a growing competition, changing consumer trends and increased product specialization, Subway’s real strategic marketing challenge is to be able to develop and maintain a differential advantage while sustaining sales growths and profitability.
Every organization needs to have a marketing strategy so that they know who are their competitors, which market they need to target, do they have resources to compete in that market and what strategies they need to adopt to gain competitive position in the industry. The most important thing is with the help of marketing, company is able to make people aware of its product.
Mariotti & Glackin (2013) provide that development of marketing strategy and competitive advantage is from the "Four P's". The "Four P's" include product, price, promotion, and place. This paper further outlines each of the "Four P's". Mariotti& Glackin (2013) recommend continually referring to the mission statement and vision statement while developing the marketing strategy. This reference helps to build the marketing strategy and form the core competency for the business. The first part of the business plan, the mission and vision statements, are stated below:
The first Subway was founded in 1965. The founder of the Subway chain, Fred De Luca, started running his restaurant business when he was only 17 years old. The first Subway restaurant was opened nine years after its foundation in Connecticut where the headquarter is now situated.
This approach has been one of the main competitive advantages of the company that maintained its stores and cafes in a friendly and ambient atmosphere in various locations. The company did not start as a traditional fast food restaurant, but rather as a network of places where people could fulfill their natural instincts with healthy and freshly cooked food with a little higher than average price range. Panera Bread was one of the trend makers of casual-food restaurants, whose vision was entirely different from the typical model of public facilities. All of the locations shared a common design and menu that created a unique environment of the franchise. Moreover, in order to enable high-quality service, the executive team of the company decided to equip all of the bakery’s completely to be capable of making their own products directly to the spots. This fact allowed to reach a certain level of autonomy and reliability of the brand that always managed to deliver and provide the freshest and natural
The generic competitive strategy that Panera best fits is broad differentiation. This is primarily because Panera sought to be the first choice for patrons looking for fresh-baked goods, a sandwich, soup, a salad or a beverage in a pleasing environment. In this platform Panera has set their eyes on people who may not necessarily be looking for an expensive meal, but might also not want cheap, fast food but instead are looking for a fresh meal that can be enjoyed in a relaxing environment. In this Panera is looking for a