Marketing and Communication Analysis of Subway - Report

This report provides a comprehensive analysis of Subway's marketing and communication strategies. It begins with an introduction to marketing and its evolution, differentiating between market and product orientations, and positioning Subway within the latter. The report examines the external marketing environment, specifically political and environmental factors impacting Subway's operations. It then delves into Subway's market segmentation approach, highlighting the use of psychographic segmentation. The core of the report focuses on Subway's marketing mix, including product offerings (subs and related products), pricing strategies (premium pricing), and place (outlet locations). The report also discusses the promotional mix and its role in marketing, though the specific promotional campaign video is not analyzed due to its absence in the provided text. The analysis demonstrates how Subway uses its product-focused approach to build a strong brand identity and customer base, particularly in the fast-food industry. The report concludes with a summary of key findings, emphasizing the importance of marketing and communication in creating brand awareness and attracting customers.

Marketing and
Communications

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1 Evolution of marketing......................................................................................................1
TASK 2 Marketing environment.....................................................................................................3
TASK 3 Marketing strategies..........................................................................................................4
TASK 4 Marketing mix...................................................................................................................5
PART 2 Communication campaign ................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
In today's world marketing plays a vital role in creating awareness among people. It helps
in attracting large number of people and developing customer base. For doing effective
marketing organisation must identify the market segment so that particular area can be focused
(Belch and et.al., 2014). Also, it is important to understand the demographics of market and
people. In this report it is shown that how a company identify market segment and promote their
products.
Overview of Subway
Subway was founded by two school friends Fred Deluca and De. Peter Buck in 1965.
They set a goal of opening 32 stores within 10 years but only 16 was opened till 1974. Now
Subway is operating globally with over 45,000 stores in 100 countries. It is a privately owned
fast food company. Subway provides a variety of products including sandwiches and salads. But
its core products is subs (sandwiches). Along with this, it also offers products such as wraps,
paninis and baked goods. The headquarter of subway is situated in Milford, Connecticut. Its
regional offices are located in various cities such as Amsterdam, Australia and New Zealand.
The CEO of company is Suzanne Greco (Sattelberger, 2015).
Purpose of report
This report is prepared to describe the role of marketing and communication. Its purpose
is to state different marketing methods that are used by Subway to promote their products. Also,
what tools are used by company to communicate with people in the market (Royle and Laing,
2014). Moreover, it will study on Subway has segmented its market and what strategy is being
used by them to attract people. Besides this, it will state what product or price offerings is
provided by Subway.
TASK 1 Evolution of marketing
a) It is very important for companies to promote its product and services in order to attract
people. For this they perform various activities for advertising their products and services.
Basically, marketing is based on two factors. These are market and products orientated.

Marketing and product orientation refers to the activities that are performed by company in order
to fulfil the needs of customers.
Market orientation - A market orientated company performs activities to fulfil needs of people.
They emphasis on marketing activities that helps them to attract people and increase sales. There
are various tools that is followed in this. These are market research, testing and customer focus.
For example – Samsung
It entails that products are advertised by differentiating markets. It helps in developing
separate strategies and advertising products. Also, operations are performed by analysing market.
 Advantages - Its main advantage is it help company to promote products according to
market condition (Felix, Rauschnabel and Hinsch, 2017) Accordingly, they develop
strategies. It also helps in identifying customer needs.
 As market condition changes company also develop strategies accordingly. This helps in
dealing with situation.
 Disadvantage- it only focuses on advertising without emphasising on product features.
This only attracts people but do not generate sales. Also, it incurs a lot of money to
perform various marketing activities.
 Manager develops effective strategies that takes a lot of time.
Product orientation - A product orientated company focuses on its core products that will fulfil
people needs. Also, product orientated company implement systems that supports its products. It
helps in maintaining quality of product. In this orientation is based on three concepts that are
product research , testing and product focus. For example – Apple
 Advantage- as it focuses on products, by this quality is maintained. People get high
quality product that helps in gaining market share and developing loyal customers. In this
only the feature of product is enough to attract large number of people.
 It enables company to focus on product quality in order to attract people.

 Disadvantage- In this products are not promoted according to market condition. So
sometimes it leads to failure (Yadav and Pavlou, 2014) Also, in this no marketing
strategy is developed so it does not advertise products in effective way.
 Change in market situation will affect company profits. In this case product orientation
fails.
It entails that even if market condition change, company must focus on core product.
There will be no effect on products.
b) Subway follows the product orientation method. They focus on their core product that is
sandwiches. This helps them to provide high quality goods to people in different countries. With
the help of this they are able to expand in different countries. Moreover, Subway is able to
maintain product quality so this has attracted people towards the company. Also, Subway
provide variety of veg and non veg sandwiches to fulfil needs of people. The two examples that
demonstrate this use is as follows :-
Subway offers their products in India. Though there are many fast food companies in
India such as McDonald's and Burger king but Subway has differentiated their product. They
have created a distinct image by offering sandwiches. They did not promote themselves but
created a positive image in the minds of people. The second example is companies like Burger
King and KFC focus on effective marketing in various markets (Leonardi, 2014). By this they
attract people and sell their products. On the other hand Subway focus on its core product.
TASK 2 Marketing environment
A) A business is always surrounded by external environment in which it operates. So change in
external factor will directly affect business operations to a great extent. Thus, it is important to
analyse the external environment. Subway has also analysed the two macro factors that can
affect their growth in different countries. These are as follows :-
Political – This is the main factor that must be analysed by business. It is because it includes
policies related to tariff, trade, etc. A little change in laws and regulation of country like India
will affect Subway growth. For example- Indian government may ban the use of pork and beef.

This will restrict Subway to use them as ingredient in sandwiches (Jucaitytė and Maščinskienė,
2014) Also, it will affect the behaviour of non vegetarian people. Current political factor in UK
is Brexit. This is affected the overall economy of UK.
Environmental – A change in national or international rules and regulation related to
environment may affect Subway operations. Also, different countries impose laws to protect
environment and follow sustainable approach may affect Subway operations. It may force them
to reduce the use of plastic and other things. Due to this consumer behaviour may change as
well. This will result in decline in sales and profits. Current environmental factor in UK is
climate change. This has forced Subway to use renewable resources.
TASK 3 Marketing strategies
A ) Every company do business by segmenting the market. This helps them to identify their
target market so that specific people can be attracted. Also, it helps in building competitive
advantage in particular market area. Moreover, it helps in determining the needs of people and
their buying behaviour (Davari, A. and Strutton, 2014) Generally, a market can be segmented in
three ways that are behavioural, psycho graphic and geographic.
Behavioural – It refers to segmenting market on the basis of behaviour of people. This is done
by identifying needs by dividing people into different age groups such as young, old, etc. For
example- youngsters prefer the latest mobile phones.
Psycho graphic – in this market segmentation is done on the basis of lifestyle of people. It is
similar to behavioural but in this the buying behaviour is also included. In this company may
also observe countries lifestyle and accordingly target people (Belch and et.al., 2014. ).
Demographic- in this segmentation is done by dividing population on the basis of variable. These
are age, gender, race, religion, etc. it is the most common method used. It helps in targeting that
segment effectively.
Geographic- in this segmentation id done on the basis of location or area. In this there is no
specific people targeted. It is less effective as in a particular area needs of people can vary.

B) Every company have their own way of segmenting the market. They do segmentation on the
basis of their products or needs of people (Ström, Vendel and Bredican, 2014). This helps them
to gain market share and customer base in different countries. Subway can segment their market
on the basis of psycho-graphic. They can provide various products to people. For example – for
youngsters they can offer
Subway can use the psycho-graphic segmentation. This is because it will reflect upon the
lifestyle of people. They can provide variety of products to people. This will help Subway to
fulfil needs of people. They can target youngsters for this as they want healthy food in quick
time.
TASK 4 Marketing mix
A marketing mix is a framework that is used to companies in order to achieve their goals
and objectives. It helps in defining the products and services of business in different markets.
With this it becomes easy to develop marketing strategies and deciding what promotional
activities must be performed (Belch and et.al., 2014.). In traditional marketing mix consist of 4
P's that are product, price, place and promotion. Subway marketing mix is as follows :-
Product offerings – It refers to the core product that company offers to their customers to fulfil
their needs. Subway core product is subs that is sandwiches. By providing variety of submarine
sandwiches Subway is able to create a distinct image (Olof Lagrosen and Grundén, 2014). They
provide variety of products veg and non veg products. In non veg they are having more varieties
than any other company such as tuna, turkey, etc.
Pricing strategies – this is the main element of marketing mix. It is because the entire marketing
strategy is dependent on pricing of products. Subway have priced their products at premium
place. This can be stated by comparing it with KFC and McDonald's. The price of Subway is
high as compared to them. This is because they are able to provide high quality products to
people. Also, Subway has been able to maintain their product quality. In different countries
company prices varies as it depends on currency rate and market condition (Leonardi, 2014).
Place- In marketing mix place refers to the location where products are available. It must be
placed at a location where people are easily able to recognise and purchase it. Subway provide

products in their own outlets. Basically, these outlets are located at high street, shopping malls,
etc. besides this, as Subway operates in many countries, there outlets are easily available. Their
product are sold in places where there is a huge footfall of people (Olejniczak and Tomorad,
2015). The example can be taken as – In India their outlets are mostly found in high street
markets and malls. They do not provide products in local market. Moreover, only the brand name
of Subway is required to build an outlet.
PART 2 Communication campaign
1) Promotional mix is a marketing framework that contains four basic elements. It helps in
providing an overview of different products and their prices. Also, it helps in developing
effective marketing strategy. Moreover, marketing mix helps in developing products according
to market. It also gives an advantage in improving promotion techniques according to the
products. In addition to this, marketing mix helps in improving business efficiency by identifying
weak areas and improving it. Furthermore, promotional mix helps in identifying the best market
where product can be provided to people.
The role of promotional mix is it contains the 4 elements of marketing mix. Also, it helps
in describing about the goals and objectives of company along with promotion. It focuses on
developing long term relationship with customers. This helps in creating a large customer base
and earning revenues.
2) In this video Subway has not effectively promoted their promotional mix. This can be said
that in to only product and promotion is done (Sattelberger, 2015). There is no clue of price and
place in this video. It only describes about product and targeted audience.
Advantage- It has highly focused on targeted audience and the feature of product. It has shown
that how fast and healthy food is available to people. Also, what they desire is easily available to
them at Subway.
Disadvantage- there is no emphases given on place and price. Due to this people are not able to
identify what is product price and where it will be available. Advertising was used by Subway in
the video.

Advantages- It covers a huge range through people can be attracted. Also, it is effective as it
describes the entire information about product.
Disadvantages- it incurs a lot of investment in developing an ad. Also, people generally watch
ad one time and then avoid watching it again.
3) Subway promote its products by using different communication channels. They have used you
tube in order to attract people. So this has helped them to attract people. But on the other hand
Subway can also use different channels. The best channel they can use is social media. In this
Subway promoted products on various networking sites such as Facebook, Instagram, etc. they
provided offers to loyal customers (Royle and Laing, 2014). In this they can post update about
new products. It has created awareness among them. People purchased their products. It leads to
increase in sales and profits. In this way Subway gained more market share. Besides this, people
can also promote it through social media. They can share it with others.
4) this video gives the message about the needs of different people. It relates life of people with
food. It shows people that don't take what you are given in life and food. It means live your life
freely and choose what you want to eat. Also, it describes that eat healthy food of your own
choice. Make it what you want means that get or achieve what you desire. Moreover, another
message is shown that how people can have fun with fast food. They can enjoy while eating.
5) in this video the target audience shown is youngsters. Those people are targeted who want to
eat healthy food and in quick time. In this youngsters are targeted because in today era they do
not have enough time to eat food. Also, they want food that taste is different and delicious. The
characteristics of these people is to enjoy life with good food. They want to eat high quality food
in effective price. Moreover, youngsters want to do epic things and eat various types of food.
The key message that was shown in video was how youngsters enjoy their life. They do
various epic things. For this they need healthy food. So Subway provides them this.
6) In this AIDA can be used to determine new message of Subway. It is as follows :-
Attention- through this video Subway can target youngsters (Felix, Rauschnabel and Hinsch,
2017). They can create brand awareness in the market by relating this video with their goals.

Through this video the attention of youngsters were gained. It was done by showing them
different adventures that can be done in life.
Interest – In this Subway can generate interest among youngsters to eat healthy food in quick
time. Also, a message can be given about how people can get variety of sandwiches. Interest was
created by relating food with life. It shows how life can be enjoyed by eating healthy food.
Desire – in this Subway can create desire about their product. They can show that how life of
people is moving fast. Desire was shown by involving enthusiastic people in ad.
Action – In this Subway can make a move to engage customer to eat their sandwiches. They can
provide taste of subs to them. This was shown in video by involving food at last in all activities.
Thus, by showing this Subway can achieve their goals and objectives. It can state that
people can get what they want to eat.
7) Subway can take feedback of people by showing them this video. For this Subway can follow
the method of questionnaire or survey. In this they can ask people about whether they liked the
video or not. Also, they can ask people about what message they get after watching the video
(Yadav and Pavlou, 2014) Thus, by collecting data and information by doing survey, Subway

can find out the effectiveness of video. With this company can identify what impact marketing
strategy has created in the market. Moreover, it will be easy to identify what changes must be
made in next video so that more people are attracted.
CONCLUSION
From this report it is concluded that it is very important to select appropriate marketing
and communication so that people can be attracted. Also, it helps in doing effective promotion in
the market. Marketing is based on two factors. These are market and products orientated. A
business is always surrounded by external environment in which it operates. Also, a market can
be segmented in three ways that are behavioural, psycho graphic and geographic. A marketing
mix is a framework that is used to companies in order to achieve their goals and objectives. It
helps in defining the products and services of business in different markets.

REFERENCES
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