Marketing Strategy and Plan for Subway's New Ice-Cream Product

This report provides an in-depth analysis of Subway's new product launch: organic ice cream. It examines the marketing mix, including product strategy (branding, packaging, quality), pricing strategy, promotional mix (IMC objectives and strategy), and place (intensity and strategy). The report details the product life cycle, the target market (young, health-conscious consumers), and the marketing strategies employed in Australia. It covers product features like biodegradable packaging and natural flavors. The pricing strategy, set at $2-$5 AUD, is influenced by product uniqueness and health benefits. The promotional mix focuses on digital marketing and in-store promotions. The report recommends emphasizing the health benefits of the organic product in promotional activities to align with Subway's sustainability goals.

Running head: INTRODUCTION OF NEW PRODUCT IN SUBWAY
INTRODUCTION OF NEW PRODUCT IN SUBWAY
Name of the Student
Name of the University
Author Note

1INTRODUCTION OF NEW PRODUCT IN SUBWAY
Executive Summary
The analysis in the report is based on the launch of a new product in the market by Subway.
Subway is a fast food chain that originates in America. The product that is being launched in
the market is organic ice-cream which is made from natural products. The cups that are used
for serving the products are also bio-degradable in nature. The marketing mix and
promotional mix of the product is also discussed in the report. The other factors related to the
product are target market, segmentation of the market and ways by which the product can be
marketed in Australia.

2INTRODUCTION OF NEW PRODUCT IN SUBWAY
Table of Contents
1.Introduction.................................................................................................................4
2.Summary of Assignment Part A.................................................................................4
3.Marketing Mix............................................................................................................4
3.1 Product Strategy...................................................................................................5
Product Life Cycle.................................................................................................5
Branding.................................................................................................................5
Packaging...............................................................................................................5
Labelling................................................................................................................5
Quality....................................................................................................................5
Product Mix (Depth or Width)...............................................................................6
Augmented Services...............................................................................................6
3.2 Pricing Strategy....................................................................................................6
Strategy..................................................................................................................6
Influences...............................................................................................................6
3.3 Promotional Mix..................................................................................................7
IMC........................................................................................................................7
Objectives and Strategy..........................................................................................7
3.4 People...................................................................................................................7
3.5 Process..................................................................................................................7
3.6 Physical Evidence................................................................................................8
3.7 Place.....................................................................................................................8

3INTRODUCTION OF NEW PRODUCT IN SUBWAY
Intensity..................................................................................................................8
Strategy..................................................................................................................8
4.Recommendation.........................................................................................................8
References....................................................................................................................10
5.Appendices................................................................................................................12
Appendix 1...............................................................................................................12
Appendix 2...............................................................................................................12
Appendix 3...............................................................................................................13
Appendix 4...............................................................................................................14
Appendix 5...............................................................................................................15
Appendix 6...............................................................................................................16

4INTRODUCTION OF NEW PRODUCT IN SUBWAY
1.Introduction
The report is based on the introduction of a new product for the brand Subway. The
different factors that will be analysed in the report are the strategy of the product which
includes, branding, packaging, quality, labelling, product mix and the services will be
provided. The pricing of the new product will also be discussed and the way by which this
influences the sales will be analysed. The promotional mix of the new product will be
discussed in detail in the report. The people who are related to the introduction of this product
and the processes related to this are the major part of this analysis.
Subway is a franchise of fast food based restaurants that its origin in America and the
primary products of the organization are, salads and submarine sandwiches. The organization
was founded in the year 1965 (Subway.com 2018).
2.Summary of Assignment Part A
The part A of the assignment is related to the analysis of fast food industry and
explaining the strengths, weaknesses of the industry. The industry is analysed based on the
SWOT framework. The behaviour of the consumers are also analysed in the previous
assignment. The other factors that are analysed in the report are the decision-making process
of the buyers and the market segmentation based on the customers of the fast-food industry
(Huang and Sarigöllü 2014). (Refer to Appendix 1)
3.Marketing Mix
The product that is being introduced in Subway is ice-cream. Ice-cream is such a
product which is still not available in the stores. The marketing mix is comprised of the
description of the product, the price of the product, promotional activities related to the
product and the place where it is introduced.

5INTRODUCTION OF NEW PRODUCT IN SUBWAY
3.1 Product Strategy
Product Life Cycle
The product life cycle comprises of four stages which include, introduction, growth,
maturity and decline. The ice-cream that is introduced by Subway is named as “Subway Big
Ice Surprise”. The product is in the introduction stage as it is being launched by the brand in
the market. The other stages of product life cycle cannot be linked with the new product of
the brand (Liu et al. 2017). (Refer to Appendix 6)
Branding
The product is named as “Subway Big Ice Surprise”. The awareness of the brand can
be spread among the customers with the help of digital marketing and through the website of
the company.
Packaging
The packaging of the product will be done in small bio-degradable food cups and
edible preservatives will also be added so that these products can be stored for a longer time.
The ice-cream will be served in the outlets of Subway in Australia. (Refer to Appendix 4)
Labelling
Labelling acts as the major factor for any new product that is being launched in the
market. The label of “Subway Big Ice Surprise” will denote the policy of the organization to
serve natural and healthy products (Bahadir, Bharadwaj and Srivastava 2015).
Quality
The quality of the cups in which ice-cream will be served will be of bio-degradable
quality so that it does not affect the environment and also provides healthy options of ice-
creams for the customers. (Refer to Appendix 3)

6INTRODUCTION OF NEW PRODUCT IN SUBWAY
Product Mix (Depth or Width)
Product mix can also be called the product portfolio. The product mix consists of the
product line and the type of the product. The availability of the different types of the same
product helps in deciding the depth of the product mix. The ice-creams will be available in
different natural and organic flavours which include, coconut, mango, orange, strawberry,
chocolate, coffee-walnut and many more (Hanssens et al. 2014). (Refer to Appendix 5)
Augmented Services
The services that are offered by any organization other than the physical product are
known as the augmented services. Augmented services are related to the marketing as well as
promotional activities of the organization. Subway will conduct the promotional activities
with the help of the website and in the stores as well.
3.2 Pricing Strategy
The pricing of the ice-cream will be set at 2 Australian dollars. The prices differ with
the changes in flavour from 2 Australian dollars to 5 Australian dollars.
Strategy
The pricing strategy is based on the availability of the products and the seasonal fruits
as well. The other factors affecting the prices are uniqueness of the products and health
benefits.
Influences
The pricing strategy of the product is mainly influenced by the external environment
and unavailability of the product in the other stores of the same industry (Aras et al. 2017).

7INTRODUCTION OF NEW PRODUCT IN SUBWAY
3.3 Promotional Mix
Promotional mix can be defined as the mix of the promotional variables that are
chosen by the marketing professionals of the organization so that they can achieve their
goals. (Refer to Appendix 2)
IMC
Integrated marketing communication is related to the use of the marketing strategies
so that the communication can be optimised and the message can be sent to the stakeholders
of the brand. IMC is mainly related to the recognition of the boundaries related to the
promotional mix. The communication of subway is done with the help of the website of the
company and the promotional activities in the stores.
Objectives and Strategy
The objectives of the Subway are, to provide healthy food options, to target the young
group of customers and to keep the food as fresh as possible.
The strategy of the organization is mainly related to the offering of high-quality food
to the consumers. The major goal is to provide healthy and tasty options of food (Aghaei et
al. 2014).
3.4 People
The people or the target customers of the organization are mainly the young
population of the country who are health conscious and are looking healthy options in ice-
creams.

8INTRODUCTION OF NEW PRODUCT IN SUBWAY
3.5 Process
The process of marketing related to Subway is done with the help of the website of
the organization. The other process of promotion is related to the distribution of flyers to the
customers who visit the stores of Subway (Jin, Kim and Kim 2015).
3.6 Physical Evidence
The physical evidence is related to the people or the customers who consume the
products or services offered by the organization. The consumers in this case are the target
group of the organization who are the young population of the country (Hisrich and
Ramadani 2017).
3.7 Place
The place of the marketing activities of Subway is in Sydney, Australia. The
consumers of this area are already related to the organization as they already have their stores
here. The promotional activities will be easier for Subway in this area as they already know
the market and their needs.
Intensity
The intensity of coverage of the market and the promotional activities is related to the
distribution of the products in the market and the target customers. The main aim of Subway
is to start the supply of ice-cream in all the stores which are operating in Australia. The
different strategies related to the distribution of products are, intensive distribution, exclusive
distribution and selective distribution (Khan 2014).
Strategy
The strategy that is undertaken for the promotional activities is to depict the product
in such a way so that it supports the objective of Subway to offer products which are related
to health benefits.

9INTRODUCTION OF NEW PRODUCT IN SUBWAY
4.Recommendation
Subway is recommended to use the promotional activities in such a way so that the
consumers can understand the health benefits of the products. The ice-cream is prepared in an
organic manner and the cups are also bio-degradable in nature. This enables the organization
in operating in a sustainable manner. The sustainable operation of Subway will contribute in
the success of the newly launched product.

10INTRODUCTION OF NEW PRODUCT IN SUBWAY
References
Aghaei, M., Vahedi, E., Kahreh, M.S. and Pirooz, M., 2014. An examination of the
relationship between services marketing mix and brand equity dimensions. Procedia-Social
and Behavioral Sciences, 109, pp.865-869.
Aras, M., Syam, H., Jasruddin, J., Akib, H. and Haris, H., 2017, July. The Effect of Service
Marketing Mix on Consumer Decision Making. In International Conference on Education,
Science, Art and Technology (pp. 108-112).
Bahadir, S.C., Bharadwaj, S.G. and Srivastava, R.K., 2015. Marketing mix and brand sales in
global markets: Examining the contingent role of country-market characteristics. Journal of
International Business Studies, 46(5), pp.596-619.
Hanssens, D.M., Pauwels, K.H., Srinivasan, S., Vanhuele, M. and Yildirim, G., 2014.
Consumer attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4),
pp.534-550.
Hisrich, R.D. and Ramadani, V., 2017. Entrepreneurial Marketing Mix. In Effective
Entrepreneurial Management (pp. 75-99). Springer International Publishing.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132).
Springer New York.
Jin, N., Kim, J. and Kim, K.H., 2015, June. THE SERVICE MARKETING MIX EFFECT
ON CUSTOMER EXPERIENCE AND CUSTOMER EQUITY IN THE SERVICE
INDUSTRY. In 2015 Global Fashion Management Conference at Florence(pp. 838-844).

11INTRODUCTION OF NEW PRODUCT IN SUBWAY
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
Liu, Y., Li, K.J., Chen, H. and Balachander, S., 2017. The Effects of Products’ Aesthetic
Design on Demand and Marketing-Mix Effectiveness: The Role of Segment Prototypicality
and Brand Consistency. Journal of Marketing, 81(1), pp.83-102.
Subway.com (2018). [online] Available at: http://www.subway.com/en-au [Accessed 17 Jan.
2018].

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5.Appendices
Appendix 1

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Appendix 2
Appendix 3

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Appendix 4

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Appendix 5

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Appendix 6