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Subway

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by

Megan Rose

on 30 April 2015

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Transcript of Subway

Why I chose this franchise?
Known as a healthy fast food restaurant
Only fast food restaurant in my hometown
This is where I go the most to get fast food
History
Swot Analysis
Product Mix
Salads
Soups
Wraps
Various bread selections
Baked goods (cookies)
Ice cream
Variety of vegetables
Combinations of sandwiches
Apple slices
Chips
Product Modification
Removed azodicarbonamide from the bread- used to increase elasticity EX: yoga mats and synthetic leather
Over the last couple of years, they have switched to products and business practices that use less energy & resources
In the future, I can see Subway continuing the going green concept and switching ingredients to use less energy and resources in the products
Conclusion
Subway does a very good job with their marketing mix
They are constantly interacting with customers and creating contests
Their advertisements are well executed and catchy
If Subway continues on the path they are going, I believe sales will keep increasing and they will stay #1
Branding
Product Life Cycle
Channel Structure
Level of Distribution
Retailing
Ad Appeal and Message
Media Selection
Internet Marketing
Price
Product Demand
Discounts/Rebates
Price Tactics
1965- Fred DeLuca and Peter Buck opened the first Subway
Fred needed money for medical school
Bridgeport, Connecticut
1974: Owned and operated 16 Subway shops
Launched the Subway brand
Today- World's largest submarine chain
43,857 locations
110 countries

Works Cited
"Environmental Leadership." Subway. N.p., n.d. Web. 29 Apr. 2015.
Murray, Rheana. "Jared the Subway Guy Marks 15 Years of Turkey Subs." NY Daily News. N.p., 9 June 2013. Web. 29 Apr. 2015.
"Subway $5 Footlong Menu." Sub Of The Day. N.p., n.d. Web. 29 Apr. 2015.
"The History of Subway." Subway. N.p., n.d. Web. 29 Apr. 2015.

Strengths
Largest fast food restaurant chain
Healthy meal options
Customized subs
Marketing
Partners with Britain and American Heart Associations
Catering Service
Breakfast option
Operation manual
Weaknesses
Service isn't consistent between stores (Different in various towns)
High employee turnover rate-Constantly hiring new employees
Some stores offer more items than others (Pizza and ice cream)
Appearance- outdated
Franchise has a lot of control over the stores (Cameras-hats, ring up the food)
Opportunities
Delivery service
Wider selection of healthy foods
Aim towards different customer groups
Globalization

Threats
Competition: Quiznos, Jimmy Johns
Various lawsuits
Healthy food trend
Soft Drinks
Juices
Milk
Platters
Kids Meals
Fresh fit choices
Pizza
Breakfast
Sub Club: started in 2005, a points program, ended
Five dollar footlongs-ended
Sandwich of the month
Choice from 6 subs, chips, and a drink for $6
No rebates
Retail Structure
Producer to Retailers to consumers
Subway sells their products through over 43,000 retailers
Good bc/ doesn't grow through a huge line of people (time consuming/reduce freshness)
Conflict: Can order online but no delivery service




Twitter
-Learning Italian < taking your mouth on a trip to Italy with the New Turkey Italiano.
- 2.21 million followers
#subwayhearttruth

Facebook
-Almost 26 million likes

Instagram
-Pictures of subs
-Send a picture with a sub and be entered into a contest
-23.4 thousand followers

All include: deals, celebrities with subs, interaction with customers, contests, etc.

Subway Fresh Buzz website
-Tips for healthy living
Jared Fogle
425 to 200 pounds
Meal: 6-inch turkey sub for lunch and a full-length veggie sub for dinner, both meals with a bag of baked chips and a diet soda.

“The big thing was no mayo, no oil, no cheese,” he said. “I did it for 11 months.

Message: Eat Fresh
AIDA Method- Get
attention
through ads,
interest
through healthy options,
desire
through losing weight, get customers
active
through sales
Target Market: Young, health conscience, urban
Colors: Yellow and green
Catchy outdoor signs- Turn left to eat right
Celebrities:
Mostly athletes
Known for yellow and green
Green- for the concept of going green, appeal to Subway rather than McDonalds
Tagline: Eat Fresh
The arrows- entrance and exit of Subway (fast)
Gives off a sense of fastness and the tagline makes you want to go there instead of getting greasy food from somewhere else
Line up by the vegetable bar
Have an employee take your order behind the bar
Update stores and packaging
Family Friendly
Allow more seating
Display the sandwiches of the month for the year
More retro and appealing
Affordable (Range below ten dollars for meals)
Uses a status-quo strategy (for the most part Subway stays around the prices of competitors)
I agree bc/ if you up your prices too much people won't come
The supply and demand are about equal
Subway makes the amount of food that customers want
Elastic demand: If Subway raises their prices too much, individuals will find food elsewhere
The availability of substitutes would influence my product the most bc/ there is so much competition and the customer can easily switch

Most effective:
TV commercials and Social Media
TV commercials are often seen, get the point across, and are repetitive
Social Media advertisement are free and the most effective (interact with customers, promote sales, update)

Intensive-
Easily accessible to customers
Located in some Walmarts and gas stations
Basically everywhere you go there is a Subway near by
Helps Subways sales by having so many locations
Growth stage:
Customers need fewer incentives to purchase Subway
Persuasive Promotion (sandwich of the month) is used to build and maintain brand loyalty
Coming out with new ideas all of the time (Fresh Fit Choices)
Past-Single Price tactic:
Ex. $5 footlong
Today-Value-Based Pricing:
Price of the product is set at a level that seems to the customer to be a good price compared with the prices of competitors
E-Commerce
Online media helps out Subway by allowing communication with customers (fix problems and connect)
Don't have to worry about eBay or amazon (no fake subway sandwiches)
Promotional Mix
Advertising
TV commercials
Internet
Billboards
Posters
Public Relations
Partners with the American Heart Association
Donate to 10 charities every year
Sponsor Jump Rope for Heart and Hoops for Heart
Sales Promotion
Five dollar footlong
Sandwich of the month
Choice from 6 subs, chips and a drink for $6
Sub Club-point system
Personal Selling
Not much personal selling bc/ workers don't go out and persuade customers to buy the sandwiches
Goal
Inform the customers about the healthy options
Budget Consideration
Spent around 530 million on advertisement
Marketing ranks high bc/ most of the products are handmade (low production costs), the customers customize their own products (low research and operating expenses)

Megan Rose
Full transcript