subway case study marketing management

Topics: Fast food, Pizza Hut, Fast food restaurant Pages: 8 (921 words) Published: May 29, 2014
SUBWAY’S FORAY INTO THE PIZZA MARKET

POSITIVE OR NEGATIVE??

Case study analysis

WHAT DO WE KNOW?

Fast and constant change in the fastfood industry in the USA variety of food, good taste, accesible costs.
growth in popularity for the pizza segment
pizza segment: second largest category in 2007 with $33.9 billion significant increase in obesity in the USA
concern of the society, critical, social and ethical issues

Change in life style eating habits due to health concern
looking for healthier options
good taste, health, and convinience

Desire of different food chains to position itself in the pizza market easy & cheap elaboration
taste and variaty ruled americans buying decisions in spite of their health concern.

ISSUES

Lack of consumer awareness in its offer
it was getting harder to introduce this new offer

Possible damage in its “healthy image”
completetly different to their known image

Loose of profits due to constant changing in the fast food industry

Possible fail due to new life styles of americans.
staying healthy was getting more popular in time

MARKET’S INTERESTS

Desire of healthy new offers
Excellent flavour
Good prices: compare to other restaurants
Fresh healthy products: fresh vegetables, protein, drinks
Fast to get-fast to eat

SUBWAY THROUGH THE YEARS

1965: first sándwich shop, in Connecticut, USA
same owners, but didnt have the Brand name yet
Until 1968- fifth shop- first one with the Brand name Subway- it was now oficial! Later adds to the menú:
”snack sub” (6 inch sándwich)
normal salads AND sandwich with salads
steak, cheese and wheat bread
25 after its emerge in the food industry: total of 5000 FRANCHISES!! Interests: Pizza market
influenced by: high sells in this market
fail try
Advertisements:
heavily increasing
official website (www.subway.com)
Movies & TV series:
Terminator 2 “judgment day”
Ace ventura when nature calls
The simpsons
Law and Order

STP ANALYSIS

SEGMENTATION:
Geographic
Countries, locations, town & cities
Based on: different geographic locations
special need: according to eating traditions & costumes
Demographic
ages between 18-49
students or employees mostly
Psychographic
health conscious
reasonable prices: VALUE OF MONEY
Benefit
special offers: gift cards
good relationship of thrust between the costumer and the company.

TARGET:
age: young adults between 18-39
Sub of the dayyoung adults that:
believe in their product
dont get that easily influenced
are open-minded to new products
aren’t concerned about the future but living the present
aren organized in all aspects
gender: female and male
general needs: FAST, HEALTHY, TASTY!

POSITIONING:
first healthy fast food chain
clean food (hygienic)
ALWAYS fresh
Best relationship with costumers sense of care
worldwide healthy fast food chain

COMPETITORS (fast food market)

KFC
Pizza Hut
Dominos Pizza
McDonald’s
Burger King
Smokin Joes
TacoBell
Papa John’s Pizza

WHY THE PIZZA MARKET?

Main porpuse: to expand their product mix
strong competition & changing habits in the fast food industry new categoriespeople’s variety demands
EASY & CHEAPterms of preparation
Pizzamost competitive cathegory in fast food restaurants despite health awareness PizzaBEFORE: food for day
NOW: food for lunch AND dinner also.
NEW type of pizza: PERSONAL-SIZED pizza

SUBWAYS FORAY INTO PIZZA MARKET- SWOT ANALYSIS

GOOD OR BAD DECISION?

HALFWAY SUCCESSFULL
Even though the results in subways first try to get into the pizza market were negative, this didnt affect their enthusiasm to try to get into this potential market. And this is reflected in the positive acceptance of this new product on their second try. reflected growth: POSITIVE

1 year later after this new menu adittion, they managed to grow and outfaced the...
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