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Subway Presentation

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Alexandra O Grady

on 23 November 2012

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Transcript of Subway Presentation

Subway History Growth of Subway Promotional Tools Healthy Eating Marketing Message 1965 Fred De Luca opened a submarine sandwich shop in Connecticut 1968 The 'Subway' name was first used 1974 Began franchising 1984 First international store opened in Bahrain 1989 Subway now present in all 50 American states 1991 Subway opened first store on a University campus 1994 First Subway franchise opened in Ireland 2002 Subway surpassed McDonald's in the USA 2011 Subway surpassed McDonald's worldwide 2012 38,131 restaurants in 99 countries Franchising led to remarkable growth
Subway's 'gold standards'
Low cost franchising model
$94,000 - $223,000
Non traditional stores
Aims to open 1000-2000 locations worldwide annually Direct Marketing Various TV ad campaigns
TV personalities to boost sales
Product placement Price Deals Interpersonal communication style with customers
Subway 'sandwich artists'
Endless choice, variety and combinations
Video mining techniques Loyalty Scheme SubCard or SubCard App Online Presence Easily accessible website
Up-to-date Facebook and Twitter profiles Jared Fogle 'Subway Guy' The American Heart Association has given Subway 'Heart-Check' meal cert logo
Nutritional information on menu in UK & Ireland
Food Standards Agency
Provides 'flavourful, much more livable way of eating' - Subway marketing officer, Tony Pace Celebrity Endorsements Tommy Bowe Michael Phelps Subway uses well known athletes as celebrity endorsements to reinforce their healthy eating marketing message vs Tanzania Antigua Afghanistan Barbados Bolivia Bonaire Cayman Islands Grenada Jamaica St. Kitts St. Lucia St. Martin St. Vincent 38,131 Subway McDonalds 34,000 approx Subway is world's biggest fast food chain in terms of locations. Subway has units in many countries McDonalds do not such as: Subway
$11.5 billion sales
Healthy eating
Sandwiches largely have better reputation than burgers, despite actually sometimes having more fat and calories McDonalds
$34.2 billion sales
Junk food
Protests against McD's over links to obesity, animal rights and environmental degradation Any Questions? Retail Model Store Locations Prime locations in city centres
Healthy image allows for non-traditional locations eg hospitals Store Layout Flexible store layout
Generally smaller stores - lower start up costs Store Experience Wide selection of products
Smell - aromatic products
Sight - preparation transparancy Global Strategies transnational strategy
think globally, act locally
alterations to menus based on religious/cultural needs Strategy Different menus Japan UAE USA Franchise Opportunities Subway's impressive growth due to franchising
Low cost franchising opportunity
Entrepreneur Magazine 2012 named Subway 2nd best franchise opportunity in the world Global Growth First international location in Bahrain
Initially focused on 10 high growth level countries
Now shifted focus to include countries such as UAE and BRIC (Brazil, Russia, India, China) countries which analysts predict will be catalysts for Subway's future success Strategic Alliances Since 2004, Subway has teamed up with Walmart to open over 2,000 locations in USA
Formed alliance with C H Robinson Worldwide - transportation and logistics company World Trade Center Reasons Behind Successful Retail Model tell a good story
in touch with trends
flexible brand
creative locations
customer engagement
great franchise relations Big Mac Meatball Marinara Sub Quiznos rat
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