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Marketing Presentation: 4P's Analysis
Transcript of Marketing Presentation: 4P's Analysis
Current Target Customer
Level of Product
Sandwiches: 45,000VND - 95,000VND
Desserts and Drinks: 20,000VND - 25,000VND
Hamburgers: 19,000VND - 50,000VND
Hamburgers: 15,000VND - 40,000VND
=> Market Skimming Pricing
New-product Pricing Strategy
Product Mix-Pricing Strategy
Product Line Pricing
Optional Product Pricing
Age: 18 - 50.
Many combos => Save customers' money.
High initial prices.
Founded in Connecticut, USA in 1965 by Fred DeLuca
Has reached 37,000 locations in 87 countries
Well–known for “made-to-order sandwiches and salads”
Have sufficient nutrition provided with a variety of vegetables
Prices are still high despite combos and discounts.
Adapted from http://www.numbeo.com/cost-of-living/country_result.jsp?country=Vietnam
Le Duan, D1 - ground floor of Kumho building
Subway’s hotline (08)3914 3333
Online order: free delivery to home/office at all HCMC: http://chonmon.vn/subway, foodpanda.vn
Channel Design Decisions - Exclusive Distribution
+ 4 outlets in HCMC are owned and managed by one manager
3 outlets in District 1 and one outlet in RMIT in District 7.
Ho Tung Mau, D1
Nguyen Van Linh - RMIT, D7
Pham Ngu Lao, D1
Le Duan - ground floor in Kumho building, D1
Vertical marketing systems (VMS) - Contractual marketing systems through franchise.
+ Cost $100,000 (Huong S, 2011).
+ The International Food and Beverage Alliance (IFBA) brings Subway to Vietnam.
"Make it a Meal" - 35,000VND
2X Footlong - 50,000VND
Product Bundle Pricing
Price Adjustment Strategy
According to Subway n.d. :
Subway has not participated in stock market. (vietnamplus 2011)
New brand in Vietnam => advantages and challenges.
Premiums with great benefits attract a large number of customers.
Reduce snacks abundance.
The vouchers are sold out fast.
Help maintain current customers and gain more potential customers.
Encouraging purchases and customers' loyalty
4. POP Display
POP displays help increase brand awareness and customers' attention
6. Games and Contest
Build up good relationship with current cutomers.
Mimo is not well-known => a waste of money for Subway.
Motivating people to visit Subway Facebook , enhance brand awareness and customers' positive thoughts towards Subway.
Located in advantageous area => Subway has potential customers.
Not widely distribute and medium number of delivery staff => do not deliver sufficient convenience for customers.
Public service activities
Corporate identity materials
Mobile tour marketing
News: diverse Subway's advertising articles on printed magazines and online websites
Social networking: Many followers on Facebook.
Special events: attract many participants.
Mobile tour marketing: attract many people and journalists.
Corporate identity materials: recognizable brand in logo, uniform and business card.
Public service activity: attract many participants.
Internet: Poor design of Subway's website and its official fan page.
Many healthy products.
Increase brand awareness and reputation by 50%.
20% discount for the customers who have:
ANZ signature priority banking platinum
ANZ visa platinum (Khuyenmaivang 2013)
Make salads by yourself
Direct channel - no intermediaries.
To Nhat Huy - s3426368
Sam Hue On - s3425469
Duong Khanh Nhu - s3410181
Dang Yen Nhi - s3426382
Lam Hai Trieu - s3426215
+ Have video clip on " How to desgin a submarine" on Subway Vietnam Youtube Channel - only had nearly 400 views after uploading on 3/1/2013
- Print :
+ Printed promotion posters in Subway stores
+ -Many websites wrote about Subway Vietnam - Kenh 14,Vnexpress.net, Ngoisao.net, Thanhnien.com.vn, Anyareana, Zing.vn,etc
+ Facebook : Great way to advertise Subway and its promotion - over 62,000 followers on Facebook.
+ No outdoor billboards yet
Career Week Day
International Flea Market
Ineffective display to catch customers' attention.
Those who live in urban areas and have middle income (VietNamNet Bridge 2012).
Foreigners and teenagers who are active, interested in Western cuisines .
People who get concerned about freshness and nutrition.
Low brand equity.
No healthy beverages.
All the sandwiches are made in front of the customers with hygiene.
Free choices of vegetables.
Various products and prices.
Good common sense. For ex: lower prices of sandwiches in VN, cookies and chips at RMIT Subway (Karunaratne 2013)
Collaborate with Pepsico and Lotte => Good business relationship => 'Positive relationships are the key to success in business' (Valine C 2001).
II. Current analysis
1. Target customers
2. 4P's analysis
III. Marketing Objectives
Internet distribution - make products available for customers nationally at low costs.
Independent order website among 4 outlets => hard for customers to choose which websites to order.
Increase Subway website visits.
Increase Facebook followers by 20% and activities to warm up Facebook page of Subway.
Open 4 more outlets (Karunaratne 2013)
Accelerate advertising and PR activities to change people's awareness of paying for the products instead of the brand.
Continue sponsoring Vietnam University Games.
Continue collaborating with Hotdeal.vn, nhommua.com and muachung.com.
Collaborate with Vinamilk to enrich the goods, which are nutritional drinks such as fruit juice, fresh milk, yogurt and ice-cream
Increase brand equity through promotion activities.
More food on each combo. For ex: a platter of salad without toppings.
Set specific time for "Sub of the day" 50,000VND. For ex: the program is applied from 8 am to 2 pm.
Create an official website for Subway instead of each separated one for each outlet.
Open outlets in supermarkets and shopping malls such as Vincom, Cresent Mall and Parkson.
Expand Subway outlets in District 5, district 3 and district 10.
- Offering free tickets for first 100 customers ( RMIT Subway - May/ June/ July )
- Buy a Sub and a Drink get a free cookie - Happy Women's Day
- "Buy sandwiches get free gifts" - Apply in March
- Continue Business Card Drawing ( January) - Apply in 3 stores in District 1
- Create TV commercial: play it on Taxi Mai Linh/ Cali Wow/ Fitness Center , upload on Youtube/ official Facebook.
- Display posters in RMIT campus announcement board / Cali wow or Fitness Center
- Continue to give Rewards Card ( 1 point for each visit )
- Coupon discount vouchers " Happy Valentine's Day" are printed on magazines ( Tiep thi gia dinh & 2! ) - Not apply for Wow 39.000 / Sub of a day
- Display outdoor billboards on Nguyen Van Cu bridge/ Nguyen Trai roundabout/ district 1 / district 3/ district 4 ( Nguyen Tat Thanh St)
+Low brand equity
+ Line extension
+ New-product pricing: Market skimming pricing
+ Marketing mix pricing: product line, optional and product bundle pricing
+ Price-adjustment pricing: discount, segmented and psychological pricing.
+ Vertical marketing system (VMS)
+ Exlusive distribution system
+ Sales promotion
+ Public relations
Mc Donalds' will penetrate to Vietnam market next year ( Vu K and Nguyen M 2013), so Subway needs to set specific and strategic plans for the next year.
Marketing Principles - MKTG1205
1. Hot Deal n.d, ‘Bánh mì Subway’, Hot Deal, viewed as 17 August 2013, <http://www.hotdeal.vn/ho-chi-minh/an-uong/banh-mi-subway-27954.html>
2. Huong, S 2011, ‘Subway looks to take a bite out of Vietnam’, VIR Vietnam Investment Review, 22 February, viewed 4 July 2013, http://vir.com.vn/news/en/corporate/subway-looks-to-take-a-bite-out-of-vietnam.html.
3. Karunaratne S 2013, ‘Marketing 4P’s’, interviewed by Duong Khanh Nhu, Sam Hue On, To Nhat Huy, Dang Yen Nhi, in person, Subway RMIT University, 15 August 2013.
4. KFCVietnam n.d., homepage, KFC, Vietnam, viewed 18 August 2013, <http://www.kfcvietnam.com.vn/vn/menu>.
5. Khuyenmaivang 2013, ‘Khuyến mãi Subway giảm giá 10% dành cho chủ thẻ ANZ’, Khuyenmaivang.vn, 23 May, viewed 16 August 2013, <http://khuyenmaivang.vn/tin-khuyen-mai/tin-khac/khuyen-mai-subway-giam-gia-10-danh-cho-chu-the-anz-1014.html>
6. LOTTERIA n.d., homepage, LOTTERIA, Vietnam, viewed 17 August 2013, <http://www.lotteria.vn/thuc-don/catalog/1>.
7. Mua Chung n.d, ‘Voucher ăn uống nhà hàng Subway’, Muachung,viewed as 18 August 2013, <http://muachung.vn/quan-an/voucher-an-uong-nha-hang-subway-20279.html>
8. Nhom Mua n.d, ‘Nhà Hàng Subway’, Nhom Mua, viewed as 17 August 2013, <http://www.nhommua.com/tp-ho-chi-minh/nha-hang/nha-hang-subway-7F050508067C.html>
9. Numbeo 2013, 'Cost of living in Vietnam - Price in Vietnam’, Numbeo.com, viewed 16 August 2013, <http://www.numbeo.com/cost-of-living/country_result.jsp?country=Vietnam>
10. Subway n.d., ‘The History Of Subway’, Subway, viewed 4 July 2013, http://www.subway.com/subwayroot/about_us/history.aspx.
11. Subway Vietnam 2013 , Album , image , Facebook , viewed 19 August 2013 , <https://www.facebook.com/subwayinvietnam/photos_stream?ref=br_tf>.
12. SUBWAY VIETNAM n.d., ‘SUBWAY VIETNAM Photos’, facebook, day - month of posted message, viewed 17 August 2013, https://www.facebook.com/subwayinvietnam/photos_stream.
13. SUBWAYVIETNAM 2013, ‘SUBWAY VIETNAM - Tự thiết kế Submarine Sandwich theo ý thích’, video, Youtube, 3 January, viewed 19 August 2013, <
14. Valine, C 2001, Positive Relationships are the key to business success, businessknowhow, viewed 28 August 2013, <http://www.businessknowhow.com/growth/positiverelationships.htm>
15. Vietnamplus 2011, McDonald's mất vị trí dẫn đầu thị trường fast-food, VietNamPlus, 8 March, viewed 17 August 2013, <http://www.vietnamplus.vn/Home/McDonalds-mat-vi-tri-dan-dau-thi-truong fastfood/20113/80759.vnplus>.
16. VietNamNet Bridge 2012, US companies leading Vietnamese franchise market, VietNamNet Bridge, 13 January, viewed 11 July 2013, <http://english.vietnamnet.vn/en/business/17564/us-companies-leading-vietnamese-franchise-market.html>.
17. Vu K and Nguyen M 2013, McDonald's to Open First Restaurant in Vietnam, The Wall Street Journal, 16th July, viewed 20th August 2013, http://online.wsj.com/article/SB10001424127887324348504578609363895591172.html
18. VUG - Vietnam University Games 2013, Album, image, Facebook, viewed 19 August 2013, https://www.facebook.com/VUG.vn/photos_stream
Subway has conducted a significant and effective strategies in 4P's, which positively helps Subway to:
Keep existing customers and attract more potential customers.
Boost sales and get more returns.
Increase brand awareness and Subway's popularity.
Expand its outlets nationally.
Diversify product types.
- Continue to work with online news and collaborate with Hotdeal, Muachung, Nhommua to sell coupons discounts