Strategic management Assignment

O.Sandhya
120420684029

Subway strategic planning

Introduction
1) Subway is an American fast food restaurant franchise that primarily sells
submarine sandwich and salads.
2) Subway is one of the fastest growing franchisee in the world, with 40,855
restaurants in 105 countries and area of 1st January 2014.
3) Subway's international headquarters in Milford.

PRODUCTS
1) Subway's core product is the submarine sandwich. In addition to these, the
chain also sells wraps, salad, and baked goods.

2) Subway's best-selling sandwich, Contains pepperoni, salami and ham.

MISSION OF SUBWAY

1) "To provide the tools and knowledge to allow entrepreneurs to

successfully complete in the QSR industry worldwide by consistently
offering value to consumers through providing great fasting food that is
good for them and made the way they like it".
MARKETING STRATEGY

1) Subway's marketing program addresses health, fresh, custom- made

sandwiches exceptions of consumers through a number of approaches.

2) Success factors for fast food franchisees will include products and
marketing targeted to healthier menu selections, brand consistency, low
start-up costs, franchisee support, and consumer convenince. Subway
represents a running example of a fast food franchisee ready for success
in the future fast food market.

3) Branded fast food continuing to move into other international venues

such as colleges, airports, military bases, hospitals, and amusement
centres. Part of their marketing strategy, Subway includes identifying
which venues and retail chains would be most amenable to quick-
service brands

OTHER STRATEGIES
1) Market penetration.
2) Market Development.
3) Diversification.
4) Product Development.

MARKETING PENETRATION
1) Market penetration is a firm increases its share of a market in which it
already operates.
2) Subway always focuses their marketing strategies to penetrate the
markets which they are already operating. They have one operating
department, it is franchise sales, this group is dedicated to finding those
individuals who has qualify of the entrepreneurial spirit required to open
a subway franchise of their own. They new franchisees to penetrate the
market.

MARKET DEVELOPMENT
1) This strategy involves finding new markets for the products a firm
already makes.
2) Subway has developed a team specifying for market development.
New Business Development. This team works closely with potential
franchisees who wish to open a Subway restaurant in non- traditional
locations such as in a supermarket, movie theatre or gas station.
3) Subway restaurant sites are adaptable to any type of location.

DIVERSIFICATION
1) Diversification involves the firm going into new markets which are
totally different from those targeted by the existing activities of the
firm. Subway is going for real estate markets, mobile phone markets
and some financial markets to reduce their business risk through
diversification.

PRODUCT DEVELOPMENT.
1) Improvement of products over time to maintain their competitive
position, product development is one of the main marketing
strategies of Subway's, specially introducing improved healthier
menus.
2) Subway has a Research and Development team this department is
responsible for developing and test marketing the food that we serve
and the equipment that is used.
CONCLUSION
Subway is currently the largest single-brand restaurant chain and
restaurant operator in the world. Even so, it can be easily substitute by
other fast food restaurant in the market. As compared to other fast food
restaurant, subway is selling a much healthier food which is a big
advantages for consumers for worried about their health. The goal of
subway is open up to 100,000 stores around the world.