Analyzing Subway's Marketing: Trading and Exchange Principles

This report provides an analysis of Subway's marketing strategies, focusing on trading and exchange principles within the Australian market. It examines various macro and micro environmental factors affecting Subway's operations, including demographic trends, economic conditions, technological advancements, customer preferences, competitive landscape, and the role of intermediaries. The report also presents recommendations for how Subway should react to these factors, such as updating their menu, enhancing their online ordering system, maintaining competitive pricing, leveraging social media for marketing, and ensuring strong supplier relationships. The goal is to help Subway maintain its customer base, improve its performance, and adapt to changing environmental conditions effectively, by providing high-quality customized food services.

Marketing Principles
Trading and Exchange

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Company information:................................................................................................................3
Presenting the environmental factors related to the company: ..................................................4
Explaining company reacting to changes:...................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing activities of the company helps in promoting or selling of product or service to large
customers. The present report is based on Subway that serves the best fast food services across
the worlds. Moreover, affect of various micro environmental and macro factors will be analysed
in detail so that proper business strategies can be developed by the quoted company in the future.
Also, overview of the quoted firm will be presented properly so that working and products of the
firm can be identified. Lastly the study will analyse firm respond to various factors and
changes through various points.
MAIN BODY
Company information:
Subway is the largest food franchise in Australia that serves fast food that includes
sandwiches, salads, wraps, beverages etc. It also serves variety of topping choices that allows
customer to choose what topping they want. They are been known for using fresh ingredients,
and they have long time slogan as “ Eat Fresh” that attracted large number of customers.
Subway menu varies between the countries and it is mainly known best for its sandwiches and
salads. It operates in more than 100 countries and is headquartered in Milford, Connecticut.
Subway is committed for building customer satisfaction by offering high quality food through
exceptional services.
They believe in continuous improvement through team building and developing
innovative business practices in the working environment. Moreover, the subway brand has the
largest submarine sandwich that is located in more than 40,000 locations in the world (Simi and
Matusitz, 2017). As they grow they are focused in serving the delicious, fresh and ready to eat
sandwiches so that best customer experience can be provided. Moreover, there are number of
smaller units of subway operating in stores, truck shops, college and high school campus,
airports and other locations to offer seating area where customers can eat and enjoy their meals.
The chain of subway has undergone various changes so that they keep growing and
appeal to the customers such as ports at tables, new menu items, bread made without gluten etc.
(Steele and Roper, 2019).One of the marketing strategy that they have implemented is that the
logo has remained same since the first day it was introduced and only minimum changes have
been made over the years so that staying power can be maintained.

Presenting the environmental factors related to the company:
There are various macro environment factors that exists and affects the operations of the
business. They are enormous, unpredictable and uncontrollable some of them are:
Demographic :
They are based on age, gender, occupation, family background and cultural status etc. In
the context of subway such factors may affect the consumption of fast foods as they serve to the
age group who are mainly youth and adults and as such there is no product that is been made
according to the needs of the children that may help to increase the market base of subway on
large scale (Hudrasyah and et.al., 2019). They may be favourable factor as it will help the firm to
develop new growth opportunities and increase sales.
Economic trends:
The performance of the company depends upon the economic conditions of the country.
If economic conditions are (favourable) than business will get profit from low rate of interests.
However, in unfavourable conditions such as at the times of COVID the sales may be reduced
to great extent and firm will suffer the most.
Technological environment:
With the changing times there is constant change in the technologies that has been
favourable to most of the firms in carrying out the daily tasks in efficient and effective manner
(Satalkina and Shpak, 2018) With proper technological developments' subway can sell its
quality products to various markets in limited time frame. Moreover, they can provide nutritional
information and advertise the products about each offering via various social media platforms.
Micro environment factors:
They are the small forces in company that affects the ability to serve its customers. They
can be controlled by they firm through proper strategies and are briefly discussed as below:
Customers:
This is main factor that helps in sales of product as organization goals and objectives
cannot be achieved without them. The subway should continuously monitor changes in tastes and
preferences along with change in buying habits so to make the situation favourable during
complex times.
Competitors:

Quoted firm need to be aware about list of competitors that are operating in the market so
that unfavourable situations does not arise. Moreover, it needs to identify the strength and
weakness of various rivalries in the target market so that accordingly strategies can be made.
Intermediaries:
They represent the agencies, financial institutions, retailers etc. that helps in sales of
particular product or goods. For the quoted firm this factor will be favourable as it will help in
smooth and effective physical distribution of goods (Javeed and Mukhopadhyay, 2017)
Moreover, they would be helpful in increasing the sales through various promotional techniques.
Explaining company reacting to changes:
 The quoted firm should install various techniques through which external and internal
environment can be measured easily on regular basis. For this purpose various key
performance indicators would be helpful in determine the overall growth of the firm
(Vahlne and Johanson, 2020). These indicators must be reviewed by the management so
that corrective actions can be taken on time to modify the business plan.
 In order to maintain customer base subway should change update their menu and provide
high nutrition food by using multigrain bread and new sandwich toppings.
 Company should update their chain of food supply so that it helps to get fastest delivery
at home.
 Customer are placing an order online with the help of mobiles apps and websites. It is
required to for the company to update their app as per the customer stability so that their
interest should be maintained.
 Company should keep nominal prices after analysing their competitors which will help to
survive for the long term in market.
 Now a days people are using social media in order to get update with the environment.
Therefore, company should provide updates, offers and discounts on the social media
channel so that mare and more customer can be addressed.
 As competition is increasing day by day, company should maintain their relations with
the suppliers so that right quality of raw material can be procured.
 Company should create a positive image by offering high quality of food, fast delivery
and maintaining hygiene etc. in the mind of the customer which helps to increase their
sells.

 Company should make standard budget in order to compare actual performance with the
past data. It will help to react as per the environmental changes.
 Company should provide quick and high quality of customized food services as per the
requirement of the client which will help to maintain loyal relationship with the customer.
 Company should take time to time feedback in order to improve their performance by
adopting changes as per the customer requirement.

REFERENCES
Books and Journals
Hudrasyah, H. and et.al., 2019. Marketing Strategy for Game Developer Based on Micro and
Macro Environment in Indonesia. Journal of Global Business and Social
Entrepreneurship (GBSE). 5(14).
Javeed, N. and Mukhopadhyay, D., 2017. Exosomes and their role in the micro-/macro-
environment: a comprehensive review. Journal of biomedical research.31(5). p.386.
Satalkina, L. and Shpak, N., 2018. Evaluation of the Influence of the Macro-environment on the
Social Innovation Activity of Enterprises. Organizacija. 51(1). pp.36-48.
Simi, D. and Matusitz, J., 2017. Glocalization of subway in India: How a US giant has adapted in
the Asian subcontinent. Journal of Asian and African Studies. 52(5). pp.573-585.
Steele, R. and Roper, J., 2019. Less is more: An investigation into how different levels of
localisation in out-of-home creative drive sales. Applied Marketing Analytics. 4(4).
pp.282-289.
Vahlne, J. E. and Johanson, J., 2020. The Uppsala model: Networks and micro-
foundations. Journal of International Business Studies. 51(1). pp.4-10.