Topic > Subway Case Analysis - 1272

Subway Case AnalysisSUBWAY® is the market leader in subways and sandwich shops offering a healthier alternative to traditional fast food restaurants. SUBWAY® annual sales have exceeded $6.3 billion, while countless awards and recognitions have been bestowed upon the chain over the past 40 years. SUBWAY® had 7,825 units worldwide with 7,750 units in North America, while its rapid growth attracted a lot of investment and brought in many competitors such as KFC and Burger King. Recent initiatives to attract customers beyond SUBWAY®'s traditionally health-conscious consumers are expected to increase the company's share of the fast food market. Strategic Marketing Problem Being part of a highly competitive and dynamic market, SUBWAY® faces a strategic marketing challenge of which specific marketing mix to use to sustain a differential advantage while maintaining sales growth and, more importantly, profitability. Answer to the Problem Subway competes effectively with hamburger chains and others that are in the fast-casual segment of the market. Including healthier meals on the menu and paying close attention to obesity and diabetes supported consumer choice for Subway (Tarantino, 2005). However, Subway has so far not been satisfied; instead, more intensive efforts were made to improve business during the dinner hour. Additional menu options have also been added to respond to competitive trends and to focus more on the children's segment. ProofTeam B's SWOT analysis can be helpful in highlighting Subway's 1) internal strengths and weaknesses along with 2) external opportunities and threats. In recent years, the sandwich market has gained incredible popularity in American culture. As the fast food landscape continues to… middle of paper… the active sandwich segment. Restaurants and Institutions, 116(6), p49-53. Cebrzynski, G. (2006, May 8). It's 5pm. Do you know where your dinner is? The subway yes. National Restaurant News, 40(19) p18. Retrieved September 1, 2006, from EBSCOHostFood for Consideration. (2003, September/October). Marketing management. 12(5) 5.Mintel International Group (2005). Sandwiches, subs and wraps. Retrieved September 7, 2006, from http://www.just-food.com/store/products_detail.asp?art=33949&lk=rotw_arcSpethmann, B. (2006, July). Subway Refreshes Kids Marketing: Van Hookup Drives Summer Action for Kids & Teens: Promo, 19(8), p17.Subway (2006). Subway corporate website. Retrieved September 8, 2006, from www.subway.comTarantino, D.P. (2005). Bariatric surgery: evaluating opportunities for value innovation. Surgical Innovation, volume 12, no. 1. Retrieved September 8, 2006 from the Web