1. What marketing PRICE strategy would you recommend to Subway to counter the threats to its business? I would recommend Subway to pursue a differentiation strategy. First of all Subway’s meals and foods are prepared for a unique customer segment. The majority of its customers are very health conscious people who prefer low calorie foods or diet products unlike MacDonald’s Burger King’s or KFC’s customers. Since the firm can be able to differentiate its products and create meal menus that are not similar to other top competitors’, it can adopt a premium pricing strategy with prices that are a little bit higher than those of its competitors.
Besides Subway doesn’t have similar followers in the international markets. Customers will pay the price premium because they perceive a value in its products. 2. Why do you recommend this marketing PRICE strategy to Subway to counter the threats to its business? I especially recommend this strategy because a differentiation strategy will protect the firm from downward price pressures. Other global giants like MacDonald’s and KFC have more experience in the international markets and they can use their economies of scale advantage with brand awareness and distribution efficiency at the same time.
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Thus a low cost strategy wouldn’t work for Subway in the short term. 3. What marketing PRODUCT strategy would you recommend to Subway to counter the threats to its business? Hot and cold sandwiches, turkey wraps, and salads are currently Subway’s core products. However there are other meals such as meatball marinara that are prepared for a less health conscious customer segment. I think Subway should increase the product varieties without changing its image. For example a middle aged housewife who is on diet may come to the restaurant with her kids.
When she orders a low calorie salad she may want small pieces of chocolate cakes or ice-cream for her kids. 4. Why do you recommend this marketing PRODUCT strategy to Subway to counter the threats to its business? I recommend this product strategy because if the firm increases the variety of meals and foods, it wouldn’t be affected too much from competitors’ threats. This is similar to using a rich portfolio of securities during the investment process. For example if Quiznos (another big restaurant chain that has similar menus) starts offering a rich variety of cold sandwiches with cheaper prices, Subway can focus on e. . selling special healthy soups and regain the market share that it lost. 5. What marketing PLACE strategy would you recommend to Subway to counter the threats to its business? I would recommend a market development strategy in the big cities in countries like Australia, Singapore, Japan and India. It would be feasible to locate franchises in places like large malls, airports and big sports facilities in these cities. Because there are more health conscious customers in these countries who tend to eat vegetables rather than meat.
Besides most of these countries have sufficient distribution and transportation infrastructure. However Subway still needs to customize some of its menus for these countries to adapt their standards. 6. Why do you recommend this marketing PLACE strategy to Subway to counter the threats to its business? Because the local people in these countries cannot be able to adapt other fast foods like burgers, fries and chicken strips very easily. This contradicts to their traditional eating habits. This is an important opportunity for Subway because it is a global brand and it offers a rich variety of foods that fits local tastes.
There is no doubt that the company can acquire the lion share in these markets in a few years. 7. What marketing PROMOTION strategy would you recommend to Subway to counter the threats to its business? I would recommend Subway to create brand awareness by focusing on healthy eating habits. The firm can use popular local people and icons in its advertisements in the domestic and international market. It can also sponsor seminars about healthy eating habits, diet and obesity issues. Commercials should be honest, quiet, and direct that can lead customers to the point. . Why do you recommend this marketing PROMOTION strategy to Subway to counter the threats to its business? Because most of the other top competitors can never compete with Subway about the health standards of their meals. Besides obesity concerns is another opportunity that can help the company to attract a different customer segment. Subway Sources 1. Datamonitor: Doctor’s Associates 2. Subway http://www. subway. com 3. Marketing strategies http://nmc. itc. virginia. edu/E-folio/1/EDIS542/2004Fall-1/cs/UserItems/cng9r_447. html