Marketing in Hospitality: Subway Restaurant Analysis and Strategies

This report provides a detailed analysis of Subway's marketing strategies within the hospitality industry. It begins with an introduction to the concept of marketing and its significance for service industries, focusing on Subway as a case study. The report explores the impact of the marketing environment, the relevance of consumer markets, and the rationale behind market segmentation. It then delves into the components of the marketing mix, including product, price, place, and promotion, and examines pricing policies and strategies. The role of the promotional mix is discussed, along with the planning of an advertising campaign, and the role of public relations and sales promotion. The report also assesses the relevance of market research to service industry operations, the development of effective marketing plans, and the suitability of various media for marketing Subway's products and services. The report concludes with a comprehensive overview of the key marketing concepts and strategies employed by Subway, providing insights into its success in the fast-food industry.

Marketing in Hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Concept of marketing for a particular service industry.........................................................1
1.2 Impact of marketing environment on the industry................................................................2
1.3 Relevance of consumer markets in the industry...................................................................2
1.4 Assess the rationale for generating various market segments...............................................3
TASK 2............................................................................................................................................3
2.1 Significance of components of the marketing mix within the industry................................3
2.2 Identify the pricing policies and strategies in regards with industry....................................4
TASK 3............................................................................................................................................5
3.1 Role of the promotional mix.................................................................................................5
3.2 Plan an advertising campaign for the operations of service industry....................................5
3.3 Role that public relations and sales promotion play in promotional efforts.........................6
TASK 4............................................................................................................................................6
4.1 Relevance of market research to the service industry operations.........................................6
4.2 Market research for an effective product or service..............................................................7
4.3 Suitability of several media for marketing an appropriate product and service....................7
4.4 Develop the implementation of marketing plan for an effective product and service..........7
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Marketing plays a very important role within the business industry as well as hospitality
industry. This concept is very much necessary for the manager who always conduct the market
research and identify the key factors in the organizations. Along with this they also generate the
effective tools and techniques for the business companies. In the hospitality marketing manager's
considered the demand of consumer's and than enhance the marketing developing techniques in
order to achieve targeted customer's properly. This present assignment is based on the Subway
restaurant which is one of the fastest growing franchises across the globe. It was established in
the 28 August 1965 by Fred Deluca and Peter Buck and it is headquartered in Milford, U.S.
Along with this report will describes the marketing concept in the service industry and role of the
marketing mix, promotional mix (Baines, Fill and Page, 2013). At last, marketing cycle in the
services industry environment will get covered in this assignment.
TASK 1
1.1 Concept of marketing for a particular service industry.
Marketing can be described as the set of lots of protocol in order to make customer's
relationships, delivering the values to the consumer's and communication by which an
organization can get benefited in a proper manner. In reference to the Subway, marketing in the
hospitality industry is very unique thing just because hospitality sector always deals with the
several tangible aspects such as food, ambiance, bed and services etc. These tools are very much
effective for the organization within the market as its fulfil the consumer's demand in a
systematic way. On the basis of this Subway always focuses on their customer's needs and wants
in order to satisfying them in a proper way. With the help of this they can increase their sales and
revenue profit for future.
Therefore, this can be said that the concept of marketing is much effective or attractive
approach for every business in order to maximise good profit as well as develop opportunities in
a proper way. That's why Subway concentrate on their marketing concept in order to analyse
their marketing culture within the hospitality sector. By using this aspects an organization has
aim to develop higher revenues by fulfilling the consumer's requirement at the right time in an
appropriate manner.
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1.2 Impact of marketing environment on the industry.
Marketing environment is the good way in order to deciding failure or success of the
marketing plan of the business industry. On the other side it the combination of all internal or
external factors which influence the ability of company's in order to develop good relations with
customer's. In reference to the Subway, they follow the environment of micro and macro in order
to maintain their sales rate in a proper way. By using this sort of environment they can get good
opportunities for future and also able to identify their marketing strategies by both micro and
macro environment. Their are some micro environmental factors which involved in the various
aspects like coordination with suppliers, competitors, arranging finance in order to make
effective business operations in the marketplace.
On the other side this can be said that demographic factors such as size, age, structure,
occupation should be done by Subway to know their consumer's demand and their taste as well.
So that this process can be easy for them in order to implement on the effective or unique
strategies. By using this business operations can get influenced in an proper manner by following
several macro factors like political, social, technological and various rules and regulation by
government directly affect company's sales in a proper way.
1.3 Relevance of consumer markets in the industry.
The main purpose of marketing is totally based on the business industries within the
hospitality sectors, so that they required to accomplish the consumer's needs and want at the right
time. In context with Subway, they always meet consumer's needs and demand and fulfil them
that's why to know the consumer's nature is very much important thing in every firm. At the
present time some individuals who mainly purchased hospitality services in order to accomplish
their needs in a proper way. Therefore, there different kind of factors which influence the
purchasing decision of customer's lots of times so that company is needed to analyse their factors
in front of the consumer's so that they can get good services easily without any issues within the
marketplace (Bird, 2012).
In order to make better situation the marketing team members of Subway are required to
make effective and attractive strategies by which their customer's can get more satisfied and able
to purchase their product in the hospitality sector or industry as well. For example: in the case
scenario of Starbucks which faced few issues in order to form their coffee chain in the China but
people of this country did not accepted this offer because they think that this organization
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maximise the Western culture in their country. Therefore, this situation created by lack of
understanding of Chinese tradition. So that Subway should always consider their customer's
first , by using this formula they will get to know consumer's mind set and their taste in a proper
way.
1.4 Assess the rationale for generating various market segments.
In order to go in any market industry services than every company should classified or
segment their market in order to gain their target consumer's within the marketplace. Wherein,
market segmentation refers to the classified of overall market into the smaller groups. With the
help of this company is able to know about customer's like what kind of choice they have and
who have the similarities in their choice perception. In reference to the Subway, they can make
their overall marketing strategies in a unique way by determining the customer's needs and
requirement of each individual in the marketplace.
Therefore, market segmentation is done on the behalf of different type of aspects
geographical, demographical in which customer's are classified on the basis of gender, age,
occupation, income, family and so on. At the time of geographical basis customer's are
categorised by the nation, regions, states and cities. Therefore, market segmentation is useful to
understand for the Subway in order to achieve their effective goals and objectives in a proper
way. So that it helps company to make their effective decision as well as unique innovative
strategies to make their customer's happy.
TASK 2
2.1 Significance of components of the marketing mix within the industry.
The goods and services of hospitality industry are very much perishable as well as
inseparable in nature. As per this the manager of marketing department most of the time produce
a effective combination of marketing mix in order to meet customer's requirement at the different
times. For making its better manager also fix the price on their product to satisfying customer's.
In regards with the, Subway they are offering their products at different price within the
marketplace (Bowie and et.al., 2016). Along with this they always concentrate on their
consumer's needs and wants to making consumer's happy at higher level.
On the other hand marketing mix refers to the place in which customer's can get their
desirable products with the help of effective distribution channels at the right time whenever they
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want. Therefore, Subway make their strategies and develop unique price proposition so that their
customer's easily purchased them in an effective way. That's why these mixes of marketing is
very important in a proper way. There are some point in regards with marketing mix which are
given below:
Product: Subway mainly deals in the submarine sandwich, along with this deals with the
different product that is muffins, doughnuts, salads, cookies and wraps. Therefore the product
mix involves in several items to satisfying customer's effectively.
Price: Selected organization in the hospitality sector it has premium price based
strategies as compare to the KFC and McDonald's they have higher price of their products. This
company also ensured that they prepared better quality of food with the affordable price.
Place: As Subway is the franchise which is growing rapidly in the world. So that it
operates their 42,673 outlet across the globe. That's why it has wider scope in the world.
Promotion: in order to promote their strategies this company using several kind of online
websites, social sites so that consumer's can get aware about their products at higher level.
2.2 Identify the pricing policies and strategies in regards with industry.
Pricing policies: These type of policies are involves in the supply and demand that
develop the pricing aspects for the company within the hospitality industries. In reference to the
Subway they are applying effective pricing policies in order to satisfying their customer's
properly. With the help of these policies company needed to take decision as per the marketing
condition of price (Coombs, 2012). It helps the company as well as consumer's just because
according to this they can get knowledge about the pricing analysis within the competitive
business environment. Therefore, pricing policies always prepared on the basis of competitive
market situation into the marketplace. Along with this it mainly includes in the retail price,
wholesale price, actual price, publisher price and so on.
Pricing strategies: These type of strategies refers to the demand, cost and competition.
This strategy also helpful for getting financial objectives in order to achieve goals and objectives
in the hospitality industry effectively. In reference to the Subway, they are using several sort of
pricing strategies and applies them on their products. On the other side, this restaurant make
effective pricing strategies so that this can be easy for customer's in a proper way.
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TASK 3
3.1 Role of the promotional mix.
It is the combination of various tools and methods of communication which is used by
the different companies in order to promote products and achieve the potential customer's in a
proper manner. Wherein, effective promotion is the main aspect of marketing mix which helps
companies to attract their customer to purchase their products in a proper manner. Therefore,
promotional mix plays a important role within the every company to achieve their aim
effectively. In reference to the Subway, promotional mix is the very effective effort which
developed by them to promote their product from one level to another level by implementing the
innovative thoughts and ideas properly.
In order to apply new and innovative strategies company needs to deliver their product
with the innovative things in the competitive environment to achieve overall business growth in
the marketplace. That's why marketing strategies are much important for promoting product and
delivering goods and services in a proper way. Therefore, for new changes in their fast food
chain company needs to apply several type of marketing channels which will be helpful for
company to identifying their products in front the consumer's easily. By using this strategy
organization can meet their customer's to achieve their target.
3.2 Plan an advertising campaign for the operations of service industry.
In order to make any kind of plan systematic approach is required in order to enhance the
consumer's needs in a proper way. This concept is needed for advertising within the marketing
place (Dzhandzhugazova and et. al., 2016). For advertising campaign and planning, Subway
launched unique food item that named as vanilla flavoured muffins in their restaurant chain, But
in the competitive world, there are various food chain restaurant which provides several items for
their customer's in a proper way. In order to design and implementation on unique strategy
Subway required to follow few aspects such as, transportation, local and area coverage,
technological advertising and so on.
The transportation department is one of the effective aspect by which this restaurant and
their facilities can be interact with each other so that the advertising of transportation sector can
influence lots of people efficiently. Wherein, technological based advertising always prefer to the
local market in order to know their customer's effectively. Therefore, plan and advertising
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campaign both are necessary for the Subway in order to increase higher sales and revenue in a
proper way.
3.3 Role that public relations and sales promotion play in promotional efforts.
In the present scenario, each and every organization are using different type of tactics in
order to make promotional mix strategy in a clear way by following various objectives. On the
basis of new organizations they are using promotional mix strategy in order to develop
awareness within the consumer's mind so that they can get the knowledge about the benefits of
that particular product. Therefore, sales promotion is accomplish by the effective relationships
between customer's and company so that it maintain the target of an organization in a proper
manner.
Therefore, this is very useful in the Subway as they prepared good strategies and their
effective aim or purpose in order to develop relation between sales promotion and public relation
in an effective way. Wherein, public relations are developed by the several activities which is
performed by the people within the hospitality sector. Good public relationship always maintain
the smooth ways of maintaining the relations between sales and promotion activities within the
organization (Hsu, 2011).
TASK 4
4.1 Relevance of market research to the service industry operations.
In order to make effective planned marketing research is the very good role which is most
of the time provided by the companies in a better manner. It is used as the source of innovative
thinking with unique ideas that always brings changes within the organization in a proper way. In
reference to the hospitality industries the system of marketing information plays very effective
role in order to collect the different aspects of prices and so on. In reference to the Subway they
are applying unique strategies and promotional activities in order to identifying the requirement
of current market situation as well as identifying the data for overall evaluation of an
organization.
Now this can be said that there are different type of restaurant and hotels which comes
under the hospitality industry that make effective change and always satisfy the customer's in a
right manner. Marketing research always helped Subway to describes their tools and techniques
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in order to find out the better operation within the organization. Therefore, it is necessary this
selected organization to operate industries programmes in a effective way.
4.2 Market research for an effective product or service.
Marketing research refers to the feedback and response of consumer's towards the new
menu or food items which is given by the organization within the marketplace. In reference to
the Subway, they spread their business all over the world with unique identity. Wherein, primary
research is used by this restaurant in order to know the consumer's mind by using the several
questionnaire and interview sessions properly. With the help of this company can get their
potential consumer's and able to communicate with them.
On the other side of secondary research is done by the internal records such as books,
journals, newspapers, articles which is measured by the different type of food items in the
restaurant with the matching of consumer's taste and priorities in an effective way. Therefore,
both research are based on the market situation by which an organization can get ideas about
their position within the market that affects people in a right way (Jones, Hillier and Comfort,
2016).
4.3 Suitability of several media for marketing an appropriate product and service.
There are different kind of forms and types which is used by the every organization in a
present manner to achieve their targeted outcomes and effective management operations in a
proper way. In reference to the Subway, they are using different media sources like TV., print
media, newspapers and so on. Therefore, the suitability of these resources are much effective or
attractive in the company because it helps them to know their customer's deeply like what kind of
need they have etc. so that this can be said that these are the very useful or attractive resources in
order to influence other people within the market and also helps to achieve their target in a
proper way.
4.4 Develop the implementation of marketing plan for an effective product and service.
Executive summary: In order to implement and develop the effective marketing plan
Subway is going to launch their new product that is vanilla flavoured muffin. As this is very
much fastest growing brand in the world which provides better qualities of food in a proper way.
For enhance their business in the world it follows the different type of aspects which helps this
organisation to earn their effective sales and revenue in a proper way.
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Vision: In order to build strong relationships with customer's to satisfying them and
achieve their target easily.
Mission: To deliver their services for every customer's with having the good values by
using fresh food like delicious sandwiches etc.
Objectives: Main objective is to provide large number of tasty food products with
healthy meals.
STP: It helps in identifying the marketing strategy in order to generate vanilla flavoured
muffin in a proper way. Wherein,
Segmentation: As per this firm segmented their marketplace on the basis of character,
age, gender, name and age of people.
Target: It basically targets those customer's who are willingly select the subway food in
an effective way.
Position: In this Subway set their marketing goals and always focuses on the position of
their product in the market.
SWOT:
Strength Weakness
It has 44,852 outlets as compare to the other
food supplying chain so that it influence
people in a positive way (Joshi, 2012).
As per the highest demand in market
Subway can face few issues in regards with
the consumer's demand.
Opportunity Threats
As its provide health conscious food for
those people who really wants better quality
so that it has opportunities to expand their
business for future.
It has various competitors like, McDonald's,
KFC so that it can suffer from few issues
globally.
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Budget:
Marketing budget (£)
Particulars 1st year 2nd year 3rd year 4th year 5th year
Initial money 40000 150000 180000 200000 60000
Investment 40000 30000 35000 12000
Total A 40000 110000 150000 165000 48000
Marketing
expenditures:
Advertisement 30000 15000 20000 18000 25000
Promotional
Campaign 5000 8000 9000 2000 3000
Total B 35000 23000 29000 20000 28000
Available balance (A-
B) 5000 87000 126000 145000 20000
Marketing control:
This process help company to control their expenses when the advertising their product
and it also helps in reducing the amount in advertising and develop good profit for this selected
company (Kotler and et. al., 2017).
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