Detailed Marketing Management Report: Subway's Strategies and Analysis

This report offers a comprehensive analysis of Subway's marketing management, examining its market and product orientations, political and environmental factors, and segmentation strategies. It delves into the differences between psychographic and behavioral segmentation, evaluating which is most valuable for Subway. The report also provides a detailed examination of Subway's marketing mix, including product offerings, pricing strategies, place, and promotion. Furthermore, it explores the use of market orientation and how Subway adapts its offerings to suit different markets, such as in Asian countries. The report also includes an executive summary and references for further study.

Running head: MARKETING MANAGEMENT
Marketing Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has helped in analyzing and understanding the different functions performed by
Subway. Furthermore, this has been seen that the Subway has tried to include different
strategies that has helped them in maintaining the different kinds of analysis which will help
in solving the different issues related to the political and environmental issues. Subway has
tried to include different premium pricing strategy that has helped the company in gaining
competitive advantage in comparison to the other company in the competitive market and in
an effective manner as well.

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Table of Contents
Introduction................................................................................................................................3
Purpose of the Report.............................................................................................................3
Task 1.........................................................................................................................................4
a. Market and Product Orientations.......................................................................................4
Orientation Used by Subway.................................................................................................5
Task 2.........................................................................................................................................6
Political Factor.......................................................................................................................6
Environmental Factor.............................................................................................................6
Task 3.........................................................................................................................................7
Differences Between Psychographic Segmentations and Behavioral Segmentation.............7
Type of Segmentation Valuable for Subway.........................................................................7
Task 4.........................................................................................................................................8
a. Marketing Mix of Subway.................................................................................................8
b. Video................................................................................................................................10
Part Two...............................................................................................................................10
References................................................................................................................................14

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Introduction
Subway is one of the American private fast food restaurant franchise that sells
submarine kinds of sandwiches along with different kinds of salads. This is one of the fast-
growing franchises in the entire world and it was founded in the year August 28 1965 and the
headquarter of the same is based in Milford, Connecticut, U.S. There are number of locations
such as more than 44834 restaurants in more than 112 countries.
Subway IP Inc is one of the owners of the intellectual property for the entire
restaurant system. From the year 2007, it has been noticed that Subway has been mentioned
to be in top 500 franchises list and this is one the biggest achievements for them as well.
Furthermore, it is one of the single brand restaurant chain that is located in more than 100
countries. Furthermore, it has been noticed that more than half of the stores is located in
United States (Subway.com 2018).
The regional stores offices for the European franchises are located in Amsterdam,
Australia along with New Zealand that are supported from Brisbane which is helpful in
nature for providing the different customers with different kinds of pizzas and other
sandwiches as well that has helped in making their brand so famous.
Purpose of the Report
The main aim and purpose of the report is to analyze the different kinds of marketing
along with product orientations done by Subway. Proper analysis of the orientation is
required to be described in an effective manner that has assisted in understanding the
marketing strategies adopted by them. The proper scan of the marketing environment is done
as to understand the marketing mix of the company efficiently. The communication campaign
review is required to be done in order to discuss the marketing of the products at Subway.

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Lastly, the video campaign has to be analyzed effectively that will help in understanding the
different channels along with source attributes as well.
Task 1
a. Market and Product Orientations
The market orientation is defined as the philosophy that is required to be adopted by
the company on meeting along with discovering the needs along with the desires of the
customers through the product mix. This is essential for the company as this helps in
achieving high rate of satisfaction among the different customers in the market. Market
orientation helps in analyzing the different kinds of techniques in increasing the sales
effectively (Andrews et al. 2017).
On the other hand, the product orientation is defined as the analysis wherein the
primary focus is on the products sold by them rather than on the skills and knowledge that
supports the product. The company that follows the product orientation are the ones who
chooses to ignore the needs of the different customers and they mainly focus efficiently on
building the quality kind of products.
There are different advantages and disadvantages of market orientation that are as follows:
Advantages
 This will increase the sales and income along with market share
 Continuous improvement of effectiveness and efficiency
 Faster adoption to the change along with increased innovation
Disadvantages
 Dealing with different kinds of corporate perceptions
 Challenges if responding to the changes in the market

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 There is huge risk in underestimating the different customers in the market
There are advantages and disadvantages of product orientation are as follows:
Advantages
 This focuses on the strength and making the products they are skilled in the
manufacturing of products
 When the company have idea of the market, they have the excellent idea of selling
products at a relative price
Disadvantages
 R & D cost of the products may be steep
 The customers cannot be interested in what the company is selling
 The customers may not trust the delivery of the products sold by the respective
company (Fan, Lau and Zhao 2015)
Orientation Used by Subway
The orientation that is used by Subway is the market orientation approach as they
mainly analyze the different tastes and preferences of the customers and prepare the different
food items or products based on their preferences. They mainly focus on analyzing and
discovering the needs of the customers through the product mix (Baker and Saren 2016).
Subway tries to analyze the demands of the customers in such a manner that this will
help them in reacting the way through which the customers wants to get their products.
Furthermore, the product-oriented approach is not followed by Subway as the market-
oriented approach is much effective in handling the preferences of the customers in a positive
manner (Armstrong et al. 2015).
Examples of Subway

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Subway tries to focus mainly on the changing tastes of the customers in an effective
manner wherein it is seen that they focus on the market research and then they adjust the
preparation of the sandwiches or the burgers accordingly.
Furthermore, in different Asian countries wherein Subway is active, they have tried to
add different new flavors of chicken or other related items and this has been a huge success
as well.
Secondly, the other example is wherein the they have started to innovate new small or
family packages wherein they have tried to appeal their customers and audiences in an
effective manner.
Task 2
Political Factor
There are different political factors that is considered while considering the entire
performance of the different international food chains such as Subway. These are the
different factors that impact Subway in a direct manner (Kumar, Sharma and Gupta 2017).
The major political factors are the health and safety guidelines that is provided by the
government in which the Subway is working as a unit. These are the different guidelines that
is ran by the government along with other organizations working in particular kind of area.
There is halal food restriction in Subway in different regions and this has affected the brand
image of the company in a negative manner (Saleh 2016).
Environmental Factor
There are different environmental factors that includes the different changing trends
of the different environmental norms. There are different steps taken by the world against the
pollution such as recycling that has impacted the business strategies of Subway (Lehmann
and Winer 2017). There is different other that include the different kinds of initiatives that is

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taken by the food chains as to promote awareness among the different individuals to save
food. Subway has tried to expand their business in the world. As to maintain proper quality
and to compete with the other companies, the different practical strategies as to analyze the
above factors (Kavaratzis, Warnaby and Ashworth 2014).
Task 3
Differences Between Psychographic Segmentations and Behavioral Segmentation
The psychographic segmentation is less concrete in nature than demographic and
geographic segmentation of the different customers. Furthermore, it has been noticed that
these are tangible in nature and it helps in including dividing the market into different
segments that is based on different personality traits along with analysis of the lifestyle of the
consumers in the market. This kind of segmentation is advantageous in nature as this helps in
allowing to engage in the designing of the product along with marketing in focused manner
(Zenker, Braun and Petersen 2017).
On the other hand, Behavioral segmentation is defined as the marketing strategy that
is based on the actual buying behavior of the different consumers in the market. Furthermore,
this respective segmentation helps in dividing the market into different groups of the
customers as per the knowledge of the attitude of the customers towards them along with
proper use of the response towards the product as well. It is based on the differences in the
consumption behavior of the different consumers in the market that affects their tastes and
preferences. This respective segmentation helps the employees in analyzing the lifestyle of
the different individuals effectively as well (Kotler 2015).
Type of Segmentation Valuable for Subway
The type of segmentation that is considered to be most valuable in nature for Subway
is the mix of both demographic and geographical segmentation as this helps in making their

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products more appealing in nature in comparison to the other brands in the market
(Rosenbaum-Elliott, Percy and Pervan 2015). Furthermore, the geographic segmentation will
help Subway in targeting their customers in an effective manner by analyzing their offerings
to the customers and this will help them in attracting more customers towards their brand as
well.
Furthermore, this has been seen and mentioned that Subway can use the value-based
positioning strategy that helps the company in managing the offerings of the customers and
create a long-lasting image on the minds of the customers in the entire organization as well.
The geographic segmentation is one of the best options that can be used by Subway as this
helps the company in dividing the market as per the geography and their menu will be based
on the preferences of the different countries or regions (Kim et al. 2014). Lastly, the
demographic segmentation will help Subway in segmenting their market as per the race,
religion and gender of the population and they try to provide the products at cheap prices that
is affordable by all.
Task 4
a. Marketing Mix of Subway
Product Offerings of Subway
The product is the first criteria that is required to be analyzed by the company as to
analyze the preferences of the customers in the market. Furthermore, the main product in the
Subway menu is the submarine sandwiches along with different baked foods such as
doughnuts and muffins (Eshuis, Klijn and Braun 2014). There are different options provided
to the customers of making and preparing their own sub sandwiches. Furthermore, Subway
has made different variations in the menu and changes in the menu as well as per the different

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places and they have tried to open new Indian Subway in different places wherein they do not
include pork or beef variety of the sandwiches as well.
Pricing Strategies of Subway
Subway is premium pricing strategy in comparison to KFC and McDonald’s and it
has higher pricing price in comparison to the other two. Furthermore, it has been seen and
noticed that the low-calorie kind of sandwiches that are sold by Subway is worth and
deserving to include such pricing and they try to provide proper pricing to the different
products by maintaining better quality food and tried to attract more customers as well. There
are different other factors that is required to be considered while deciding the pricing strategy
and this includes competition is the best example that is required to be analyzed by Subway
as to gain more customers in the market and understand the role of the competitors in the
market as well. Subway has maintained as to gain competitive advantage and they tried to
implement different other techniques which has helped Subway in understanding and
analyzing their ways to improve the customer service.
Place
The place is the distribution channel of the product and Subway has distinction of
being franchise in terms of the growth in the entire world. The respective restaurant chain is
one of the largest operators of restaurants that are 42673 in number and the headquarter is
located in USA. On the other hand, when the product is premium consumer product, this will
be available only in selected stores. The distribution has huge affect on product profitability
in an effective manner. Considering the FMCG company, that has national distribution for
the respective product, this will help Subway in analyzing the different strategies that has
helped them in expanding their presence in the entire world effectively and appropriately
with proper measures.

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b. Video
Part Two
Communications campaign review should include:
1. Promotional Mix
The Promotional Mix tends to play a major role in the domain of business and it
comprises of a blend of various methods in order to present the company and represent its
products in the market in front of the target customers (Ramaswamy and Mosher 2013).
Promotion forms an essential part of marketing and therefore, it goes a long way in attracting
the different customers and generating loyalty.
The different tactics which are used in a promotion mix help an organization to
correlate the communication objectives carefully with the objectives of an organization and
assists firm in successfully being able to market its products in the right manner
2. The promotional mix element that Subway adopts in the video campaign
The promotional mix element as adopted by Subway comprises of the following:
Television Advertising- the Company sees to it that it advertises adequately on the television.
It helps to reach out to a larger number of customers.
Newspaper Print Ads- It gives away various print advertisements on the newspaper as well. It
helps to reach out to a larger group of people.
Pamphlets- It distributes pamphlets in different parts of a particular country or a city. It helps
to make quick decisions (Miquel-Romero, Caplliure-Giner and Adame-Sánchez 2014).
Social Media Advertisement- The social media is also used as a tool to analyze the different
target customers and to advertise the products in that channel. It reaches out to the new target
group.

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Discounts and Packages: The Company offers various discounts and combined meals to the
customers as well whereby they get huge discounts in case they buy products together. Helps
to promote the products.
3. The channels being used by Subway are given as follows:
Subway uses a multi-channel communication technique in order to be able to reach
out to the given customers. Subway believes that only one channel will not be sufficient
enough to make the customers aware (Bagozzi et al. 2018). Hence, Subway makes the use of
a wide variety of strategies and techniques which include channels such as Television, Social
Media, Newspaper , Print media and mobile channels as well. Subway wants to ensure that
the market share of the company increases considerably.
4. The key message in the video campaign:
The given video tends to portray the message that the company wants to portray that it
produces customized products for the different customers. It portrays that for the convenience
of the customers, the company shall customize it according to the taste (YouTube. 2018). For
this reason, the company wants to meet with the needs of the customers and for this purpose,
it has advertised accordingly to portray successful achievement of the taste of the target
market.
5. The key target audience of the company through the given video is as follows:
Young Millennials- The young millennials are one of the most ardent customers of Subway
who are concerned about their choices are seem to be confused. Hence, the customize option
has been provided to them.
Children – The advertisement shows children enjoying a sub also, hence the children are also
being targeted.

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Health conscious –People who like to have healthy food are also being targeted in the given
campaign. They can opt for tastier meals but have healthy options as well.
6. Application of AIDA model
The AIDA model is used to identify the different cognitive stages which a suitable
customer goes through before purchasing the service or the product.
AIDA stands for the following:
Awareness- The given advertisement tends to create brand awareness with the given product
by associating the different options available and the products which can be chosen from the
Subway brand.
Interest- Interest can be gathered effectively by sharing the benefits of the product (Goworek,
McGoldrick and McGoldrick 2015) .As subway states that the product can be made
according to the taste of the consumer, this aspect tends to bring about feedback to the
customers.
Desire- The emotional connection is created through this aspect. This stage helps in
transforming from liking to wanting it. Subway creates this aspect while reflecting the kind of
people in the advertisement very close to the actual audience.
Action- The last step is the action plan which convinces the buyer to use the product by
interacting directly (Kotabe and Helsen 2014). This can be done by the subway outlets and
the executives themselves.
7. Consumer Feedback
The method which can be used by the Body Shop to measure consumer feedback is as
follows:

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Facebook reaction: As the advertisement will be aired in all social media networking cites as
well, this can be effectively used as a method to attain feedback. The comments section of the
video along with the likes and reactions received on the particular video needs to be
effectively analyzed in order to determine what the reaction of the general crowd is. Based on
these feedbacks which will be received, the company can successfully change the
components of the promotion mix.

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References
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