Marketing Planning for Subway Restaurant

This assignment presents a marketing plan for Subway, aiming to increase sales and market share. The report highlights the importance of marketing planning in achieving objectives. It projects sales of $72000, $79200, and $86400 for three years, along with income statements showing gross profit, operating profit, and net profit. The main objective is to target customers and increase market shares, with a goal of increasing sales by $16.5 billion between 2014 and 2016.

Marketing
Planning

TABLE OF CONTENTS
Introduction......................................................................................................................................3
1. Product and market focus.............................................................................................................3
Marketing and product objectives................................................................................................3
New and appropriate SMART objectives....................................................................................3
Segmentation, Targeting and Positioning....................................................................................4
2 Marketing program.......................................................................................................................5
Marketing mix..............................................................................................................................5
Financial data and projections.....................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................9
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Index of Tables
Table 1: SMART objectives for Subway restaurant........................................................................5
Table 2: Sales projection..................................................................................................................8
Table 3: Income statement...............................................................................................................8
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INTRODUCTION
Marketing includes all the activities in transfer of the goods and services by the
seller or the producer to the buyer or the consumer (Hollensen, 2015). Marketing planning is
very important aspect for a company, in making a profitable business. It is a process to develop a
plan for identifying, analyzing and satisfying the customer needs and demands with a motive to
earn profit. The present report is based on the Subway restaurant, an American fast food
restaurant franchise, in UK. This report explains the marketing and product objective along with
the segmentation, targeting and positioning of the product. Furthermore, this also evaluate the
last 3 years of financial data. The marketing mix is also covered in his report.
1. PRODUCT AND MARKET FOCUS
Marketing and product objectives
The Subway is a successful restaurant in UK, but still they need to improve their food
and services. The main objective of the Subway restaurant is to increase the sales. This can be
done by promoting the products as well as the services to the potential customers within a given
time frame (David, David and David, 2016). The mentioned restaurant can also plan to focus
more attention to the adverting of the restaurant. The another objective which the cited restaurant
is to achieve is, increase of the market shares.
New and appropriate SMART objectives
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Table 1: SMART objectives for Subway restaurant
Objectives Approach
Specific The objective is to increase the sales as well as to increase the
market shares of the company.
Measurable In 2014, the sales of the Subway was $11.9 billion (Your investment
– financial information, 2016). Now they have to increase the sales
by $16.5 billion in 2016.
Achievable On the basis of the marketing practices, these objectives can be
achievable by the cited restaurant.
Realistic This is realistic, as the mentioned restaurant have sufficient
marketing channels, adequate employees and enough resources.
Time specific This is the main and the foremost objective of the restaurant, while
increasing the sales. The specific time which is required, to achieve
this objective is 1 year.
Segmentation, Targeting and Positioning
Segmenting, targeting and positioning strategy helps the company in achieving the
objective of the company. These strategies help in increasing the sales as well as the market
share of the Subway.
Segmentation
This strategy can be done by the restaurant on the basis of the customer's attitude, taste
and preference (West, Ford and Ibrahim, 2015). They can segment the market on the basis of the
demographic. By this segmentation, they can classify their food according to the different age
group. They can also classify on the basis of income group. They can provide different type of
food and services according to the lower and higher level income group people. For example,
they can provide different varieties of burger to the youngsters and full nutrition and hygiene
food to the adult people.
Targeting
To increase the sales of the company, it is necessary for the restaurant to target the
customers. They can produce the food in high volume and can sell the product at a reasonable
price. Through differentiated targeting strategy, they can promote the mentioned restaurant
(Peterson, 2015). This can be done by giving more than 1 messages about the food, services and
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the restaurant with their benefits in a particular area. By this process, they can increase the
customer loyalty towards the business as well as the sales of the cited restaurant.
Positioning
This strategy will help the restaurant in increasing the sales along with the market share.
This can be done by producing different and better food and services for customers. The process
for positioning a new product is:
Segmentation is the first process, which can be on the basis of customer benefit and food
characteristics. The characteristic of the food and services will be different from the competitor.
To attract the customers and increase the sale, food benefits are to be highlighted to customers.
The analysis of the strength, weaknesses, threats and opportunities of the product is the next step
for proposing a new positioning. Mention the strength, opportunities to the customers and
identify the weaknesses and threat, so to eliminate them. After that, the restaurant can start
positioning in the market.
2 MARKETING PROGRAM
Marketing mix
To achieve the objective of increasing the sales and the market share, Subway restaurant
segment the market on the basis of age (Subway. About us, 2016).
Market segments of Youngsters
 Product- they provide different varieties of burger to the youngsters with different size
along with different flavors of cold drinks.
 Price- They can sell the food at a reasonable price, so that more and more customers will
attract on this product. With selling or product at low price will result in increase in the
sale of the food.
 Place- There should be a numerous franchise by the Subway restaurant, so that
youngsters can conveniently reach the restaurant.
 Promotion- This can be done on social sites, like Facebook, Google, TV, YouTube, etc
as they are very much familiar with these applications.
 Physical evidence- The physical evidence is, there should be a proper availability of
product as well as proper counter, so that customer does not feel any difficulty related to
the services in the restaurant (Hollensen, 2015).
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 People- Physical evidence are the employees of the restaurant, they deliver the food and
services to the customers. Process- It includes the procedure of identify the objective, analyze them, implement the
alternative to achieve the objective and at last achieve the objective.
Market segments of adults
 Product- They can provide full nutrition and hygiene food like organic food to the adult
people.
 Price- They can sell the food on the basis of the different income group so that every
income group can purchase those products.
 Place- Adult people can easily and conveniently reach the restaurant.
 Promotion- They can promote the restaurant, by advertise in the newspaper, TV, radio
etc.
 Physical evidence- The physical evidence is the proper availability of food as well as
proper counter, so that they can easily give orders for their food. People- People are the employees or staff of the restaurant, they deliver and serves the
food and services to the adult people (David, David and David, 2016).
 Process- The process to achieve the objective must be same, at every individual market
segment. For example, to increase the sale of the cited restaurant, there should be proper
availability of food at the time of requirement by the people. Availability of product-
service's at the time of requirement, helps the company in achieving the objectives.
Financial data and projections
Assumptions
1. The unit of product sold by the Subway is increased by 10% every year.
2. The average price of the Burger is $3.
3. The cost of good sold is assumed to be 30%.
4. All the expanse are increased by 10@ every year.
5. The tax, which Subway is to paid every year is 10% of the profits.
Table 2: Sales projection
Sales
projections
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Year 1 ($) Year 2 ($) Year 3 ($)
Units of products
sold
24000 26400 28800
Average price 3 3 3
Revenues 72000 79200 86400
Table 3: Income statement
Particulars Year 1 ($) Year 2 ($) Year 3 ($)
Revenue 72000 79200 86400
Less: COGS (30%) 21600 23760 25920
Gross Profit 50400 55440 60480
Operating Expenses
Market Research 5000 0 0
Marketing and promotional 5000 5500 6050
Utilities (Electricity & Phone) 2500 2750 3025
Salary 7000 7700 8470
Miscellaneous Expenses 3000 3300 3630
Delivery and packaging 1500 1650 1815
Total Operating Expenses 24000 20900 22990
Operating Profit 26400 34540 37490
Less: Tax 2640 3454 3749
Net Profit 23760 31086 33741
The above presented figures shows the 3 year sales. From which the revenue earned by
the mentioned restaurant for the 3 years are $72000, $79200 and $86400. The income statement
is also prepared, to evaluate the gross profit, operating profit and the net profit for the 3
proceeding year. Mentioned restaurant earn profits in the 3 years, in the 1st year they earn
$23760, in year 2 they earn $31086 and in year 3 they earn $33741.
CONCLUSION
The aforementioned report is based on the Subway and this explained the importance of
marketing planning in achieving the objectives. It concludes that the main objective of the
Subway restaurant is to increase the sales and also to increase the market shares. In 2014, the
sales of the Subway was $11.9 billion and now they have to increase the sales by $16.5 billion in
2016. Furthermore, to increase the sales of the company it is necessary for the restaurant to target
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the customers. In addition to this, it concludes that the targeting strategy will help the restaurant
in increasing the sales along with the market share.
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REFERENCES
Books and Journals
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
David, M. E., David, F. R. and David, F. R., 2016. The quantitative strategic planning matrix: a
new marketing tool. Journal of Strategic Marketing. pp.1-11.
West, D., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage.
Oxford University Press.
Liu, G., Eng, T. Y. and Takeda, S., 2015. An investigation of marketing capabilities and social
enterprise performance in the UK and Japan.Entrepreneurship Theory and Practice. 39(2).
pp.267-298.
Online
Subway. About us. 2016. [Online]. Available through:
<http://subway.co.uk/menu/subs/default.aspx>. [Accessed on 4th May 2016].
Peterson, H., 2015. Subway has cut its restaurant growth in half. [Online]. Available through:
<http://www.businessinsider.in/Subway-has-cut-its-restaurant-growth-in-half/articleshow/
48717253.cms>. [Accessed on 4th May 2016].
Your investment – financial information. 2016. [Online]. Available through:
<http://www.subway.ie/business/franchise/financial_information.aspx>. [Accessed on 4th May
2016].
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