Subway sandwich shop case

1. SUBWAY SANDWICH SHOP CASE
Alika Koshy
Ribhu Vashishtha

2. What is the case about ?
• Subway Sandwich Shops around the world.
• The Sandwich Restaurant Industry
• Subway History
• Subway’s Customer Analysis
• Subway’s Promotion Strategy

3. What is the case about ?
• Three big questions for deli firms:-
– How to develop and keep a differential advantage
in a highly competitive and dynamic market while
maintaining:
• Sales Growth
• Profitability
– What mix of the 4Ps to adopt and why?
– How to deal with the growing competition?

4. FIVE FORCES MODEL

5. Rivalry Between Competitors
-HIGH

6. Bargaining Power of Suppliers
• LOW
• Volume is critical to suppliers
• Low cost of switching suppliers

7. Bargaining Power of Buyers
• LOW
• Buyers require special customization

8. Threat of New Entrants
-HIGH

9. Threat of Substitutes
1. Convenience shops
2. Mid range restaurants
3. Pre cooked food
4. Health food shops
-HIGH

10. Symptoms, Issues, Problems
• Bad management
• Poor location
• Franchisees are battling franchisors for more
control over their businesses.
• Franchisors are fighting back to preserve their
profits.

11. Actions taken
• In addition to individual location efforts to
increase sales, all Subway franchises
contribute 2.5 percent (some markets elect to
contribute more than this percentage) of
weekly sales to the Subway Franchisee
Advertising Fund Trust (SFAFT).
• 99% of this advertising budget is allocated for
TV advertising and the remaining 1% for print,
radio, digital, outdoor advertising.

12. Actions to be taken
• To increase per outlet sales, Subway should:
– Promote their offerings for hours other than lunch
and snacks as well, for e.g. breakfast, dinner, late
night meals.
• To expand outlets, Subway can:
– Open outlets in supermarkets, malls, multiplexes,
schools, colleges, amusement parks, hospitals,
airports, bus stops, etc.

13. Actions to be taken
• Increase the variety of their subs and
sandwiches pertaining to various markets of
the world.
• Offer their food & beverages at various price
points (low, medium and high) in major
markets like India and China.
• Introduce a combo of meals like kids meal,
health meal, etc.

14. Subway’s Brand Positioning
• Offers “fresh, healthy and affordable fast
food”

15. Who is the average Subway customer?
MALE

16. What does he want?
• Quality
• Great taste
• Value for money
• Healthy food
• Sufficient quantity

17. Loyalty
Engagement
Attachment
Value for money
Eat fresh
Customized Product
4. Relationship
What about you & me?
Fit
Great taste
Filling
Completely satisfying
Health conscious
Young
Single
Busy Professionals
Submarine Sandwich Joint
3. Response
What about you?
2. Meaning
What are you?
1. Identity
Who are you?

18. Customer Profiles
1. Subway: Prefer take away
2. Quizno’s: Prefer eat-in
3. McDonald’s: Prefer eating with family
4. Blimpie Drive-in: Young adults with children

19. Promotional Activities
• Sponsoring of the New York marathon.
• “Love your heart” campaign in Ireland.
• Donations to Heart Research UK and the Subway
Healthy Heart grant scheme, which supports
communities to help them lead healthier
lifestyles.
• Endorsement by Michael Phelps and his portrayal
as Subway’s “Famous Fan”
• Formulation of the “Subway Diet” plan to help
people lose weight.

20. Promotional Activities
• According to the new “Talking About” option,
Subway outranks every brand on Facebook,
including Facebook itself.

21. Promotional Activities
• Focus on:
– Food Quality & Food Safety
– Sustainable Sourcing Practices
– Local Sourcing
– Animal Welfare
– Forced Labour & Human Trafficking
– Streamlining Supply Chain

22. Thank You.