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Essay on Subway Sandwich Shops Situation Analysis

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Subway Sandwich Shops Situation 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.
Subway Sandwich effectively competes with other fast-food restaurants by including and promoting healthier meals into its menu, as demonstrated by singling out its …show more content…

With its aggressive global growth strategy, Subway was able to reach in 2006 $11.3 Billions in revenues from its franchises around the World. Subway’s marketing strategy remains the promotion of health through fresh ingredients, while still targeting young adults (16-39 years old) as its main consumers (Subway, 2008).
Demographics

The profile for Subway’s present and potential consumers consists in the following factors:
Geographics:

Subway’s international expansion reached 28,000 outlets in 86 countries in 2007. Their strategy consists in “low start-up costs, ease of operations and healthier menus” (Anderson, 2007), which makes it attractive to franchisees around the World to adopt the concept. Subway primarily targets booming sandwich markets such as United Kingdoms, Germany and other Western Countries with increasing obesity problems.
Subway exercises an aggressive growth strategy by expanding globally, but also nationally in non-traditional locations such as college campuses, hospitals, gas stations, military bases, for example. Geographical saturation is believed to play a great part in Subway’s marketing plan to make customers perceive them as number one fast food chain (Chamis, 2001). Although saturation affects other regional Subway franchises, it boosts the sales and revenues of the entire chain, which is detrimental

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