Part 1 Individual - Marketing Report
In 1965, Subway was founded by 17 year-old high school graduate Fred DeLuca, along with his family friend, Dr. Peter Buck. The first store opened in Bridgeport, Connecticut, USA in 1965. Fred DeLuca and Dr. Peter Buck set a goal of having 32 Subway stores opened in 10 years. By 1974, the duo owned and operated 16 submarine sandwich shops throughout Connecticut. However, they realised that they would not reach their 32 store goal in time hence they began franchising, launching the Subway brand into a period of remarkable growth which continues to this day. The Subway brand is the world's largest submarine sandwich chain with 44,000 stores in more than 100 countries. Subway has become the leading choice for people seeking quick, nutritious meals that the whole family can enjoy (Subway, 2018; Thomas, 2017).
Scenario As a newly appointed marketing assistant of Subway marketing team, you have been asked to write a report addressing the following task areas: (Word counts below are indicative)
Provide an overview of Subway
Outline the purpose of the report
Task 1: Evolution of Marketing (LO1)
a. Describe the marketing and product orientations, highlighting the advantages and disadvantages of each
b. Identify and explain the orientation adopted by Subway, and provide two (2) examples that demonstrate Subway’s use of the approach
Task 2: Marketing Environments (LO2, 3)
a. Identify and discuss one political factor and one environmental factor that could impact Subway’s business operations and consumer buyer behaviour
Task 3: Marketing Strategies (LO3)
a. Explain how psychographic segmentation differs from behavioural segmentation
b. Discuss one type of segmentation that would be considered the most valuable for Subway to use when segmenting the market .
Task 4: Marketing Mix (LO1, 4, 5 6)
a. Identify and describe
Subway’s product offerings
Subways’ pricing strategies
The place where Subway’s products are sold ensuring you provide detailed descriptions and examples (400 words)
b. The Marketing Director has announced a new objective for the company: To increase Subway’s market share by 15% by December 2019
The marketing director has assigned you the task of reviewing Subway’s video campaign
Part One: You must watch Subway’s video campaign using the following link: https://youtube/lRzJ1mdkljQ
Part Two: Communications campaign review should include:
- An explanation of the role of the Promotional Mix
- Discuss the promotional mix element that Subway adopts in the video campaign, ensuring you include the advantages and disadvantages
- Conduct research and discuss the channels used by Subway to increase its market share
- Discuss the key message the video campaign
- A discussion of the key target audience of the video campaign and their characteristics
- Use of AIDA (Attention, Interest, Desire, Action) marketing theory to explain how the video campaign’s source attributes and key message achieve Subway’s new objective
- A discussion of one (1) method Subway should use to gather feedback on the effectiveness of the video campaign
Marketing and communication
Subway is a franchise restaurant that is well known for fast food. The restaurant was incorporated in 28th August 1965 in U.S. The company has approx 45,000 stores in more than 100 countries. It is one of the leading and growing franchises across the world (Subway, 2018). It has been found that it is biggest single restaurant chain and larges restaurant operator throughout the world (Subway, 2018). The firm is committed to provide a wide range of great delicious, tasting, healthier food choices while decreasing environmental footprint and generating a favorable influence in the societies. The main vision of the company is to be a global leader in fast food industry. The mission of the company is to render the tools and knowledge to permit entrepreneurs to compete successfully and effectively in the fast food industry globally by consistently rendering value to the customers through offering excellent tasting food that is good for them and made in an effective way (Jurevicius, 2013). It is noted that Subway restaurant used dynamic and effective advertisement and promotional strategies to increase the market share and revenue in the marketplace.
The primary aim of this task is to outline and evaluate the significance of marketing and product orientation concept. In first part, the paper explains that which orientation method is used by Subway restaurant while conducting business activities in the international market. Here is the discussion about the market segmentation that adopted by the company to maximize growth and market share. The political and technological factors also have been explained in the task. The marketing mix for Subway restaurant also has been discussed in the task briefly. In second part, the paper explains the role and significance of the promotional mix. Apart from this, it explains that how target audience influence the success and profitability of the firm.
Task 1 Evolution of marketing
a. Marketing and product orientation
A market orientation firm is one that organizes its operations, activities, products and services across the needs and wants of its customers in the international market. On the other hand, product Orientation Company only focuses on its products and on the knowledge, skills and systems that provide support that product (Grundey, 2010). The market orientation is a firm philosophy that only concentrated on the discovering and attaining the needs, requirements and wants of its customers through its product mix. In product orientation, the company only focuses on the quality and features of its products. The firm ignores the wants, needs and desires of the customers in the competitive market (Ahmed Ismail, 2016).
The advantages and disadvantages of market orientation are detailed below.
- There is wider scope of market orientation concept in the global market.
- By using market orientation concept, the company has been able to identify and analyze the wants and desires of the customers in the international market.
- Along with this, the organization is able to get feedback and reviews from the customers related to the products and services (Kokemuller, 2018).
- Constant change is one of the significant and biggest threats for the company.
- In addition, a marketing orientation concept also requires a huge investment in market research.
- Along with this, a marketing orientation strategy can make it quite complex to plan for the future (Joseph, 2018).
The Advantages and disadvantages of product orientation have been elaborated below.
- The product orientation helps in improving and enhancing the quality, attributes and aspects of the products.
- The product orientation is easier to opt for outsourcing its products.
- Economies of scale is more developed and improved with the help of product orientation concept.
- Missed opportunities and obsolescence are biggest threat in product orientation concept.
- Sometimes, the company loses competitive benefits and product orientation also affects the returns and revenue in the international market.
- Poor responsiveness is another weakness of product orientation (Edmunds, 2018).
Orientation adopted by Subway restaurant
Orientation is an effective and significant part of the each and every company. As the same way, Subway restaurant also uses important orientation to attain rivalries benefits globally (Wedel and Kamakura, 2012). It is noted that Subway uses market orientation approach to analyze and evaluate the needs, wants and requirements of the customers in the global market. Let’s talk about an example, Subway uses social media channels such as facebook, Twitter, Instagram and other channels. The market orientation concept helps in analyzing and identifying the conditions and nature of the market. This concept helps the company to determine and evaluate the strategies and policies of the competitors effectively and successfully. Along with this, Subway restaurant also uses product orientation concept to differentiate its products from the competitors. This concept helps the firm improve and enhance the quality and features of the products in a hassle free manner. The organization can choose the vegetables, sauce, flavor and amount of the products. The quality of the products can be maintained by using the product orientation concept in the international market. Subway cannot expand and explore the business activities and operations internationally without using marketing and product orientation concept in a large extent.
Task 2. Marketing environment
a. Political factor and technological factor
Political factor: There are various political factors affect the productivity and efficiency of the firm adversely. The USA and UK are recently undergoing political changes due to the current elections in both the nations and the Brexit process in the UK (Businessteacher, 2018). Along with this, various trade agreements will also affect the efficiency and effectiveness of Subway restaurant. Planning regulations and norms in UK might also restrict where Subway can locate its franchises and in the USA, the company may be found in traditional places like shopping centres, but are also in schools and churches. In addition, health and safety guidelines are rendered by the government and other entities to gain competitive benefits in the global market. The health related campaigns and programs also have direct impact on the food chains such as Subway (Businessteacher, 2018).
Environment factor: It is an empirical element of macro environment that could affect the success and efficiency of the firm. Environment plays a significant and vital role in survival of the business. The environment factors such as climate change, globalization and weather may affect the operating income and returns of the company. Therefore, the company should focus on the environment to meet the long term expectations and needs of customers (Haseeb, 2017).
Task 3: Marketing strategies
a. Psychographic segmentation
Segmentation is a process of dividing the entire market into different small groups. It will help in accomplishing the desired goals and objectives and further, it also will help in analyzing the growth opportunities in the international market. The psychographic factors include life style, personality and social group. These factors put direct impact on the choices and needs of the customers. Due to psychological factors, people follow healthy life style and love to eat healthy and delicious food for instances sandwiches in their routine life (Weinstein and Cahill, 2014). On the other hand, behavioral factors include occasions, user stages, benefit sought, loyalty, and status and consumer behavior. The behavior factors may affect the purchasing power of the consumers in the competitive market. Food quality and food safety are some of the paramount that significant for Subway restaurant in the international market. The suppliers of the company are adhered to regional standard food safety and quality policies to ensure the excellent quality of the products in the marketplace. This segmentation only focuses on the level of income, culture, values, beliefs and loyalty of the customers while psychographic segmentation does not focus on these factors. In this way, psychographic segmentation is quite different from the behavioral segmentation.
Suitable segmentation for Subway restaurant
It has been noted that Subway restaurant divide its market after considering the needs, desires and expectations of the consumers in the rivalries market. The company focuses on the geographic segmentation to attract and retain wide range of customers internationally. After the various analysis it has been found that halal menu is offered by the company in Middle East Countries and vegetables are offered by the firm in India. Subway restaurant focuses on the geographic factors such as climate change and weather to beat the competitors widely. The organization also needs to consider the demographic factors to stand out against the competitors in the global market. In demographic area, the firm identifies and analyzes the age group of people to maximize the customers. Generally, the organization focuses on the age group, gender, race, income, religion and occupation of the people to maximize the sale and revenue in the marketplace. By analyzing and identifying the geographic and demographic segmentation, Subway has been able to flourish the business activities and operations globally. It also helps in striving with competitors in the competitive market. No company can grow its business without using the segmentation strategy and approach (Kang, 2013).
Task 4: Marketing mix
Product mix: It is one of the significant elements of the marketing mix that helps in attracting maximum number of customers globally. Subway restaurant offers various products such as salads, dinners, soups, desserts and pasta. Along with this, the company also provides attractive menu and excellent quality of the products to the customers in a large extent. The menu of Subway also include Veggie Delite, Meatball Marinara, Subway club, Steak and cheese, Tuna, Subway melt and roasted chicken. In some countries, the menu entails some products such as breads, breakfast sandwiches and English muffins. Along with this, the company also provides various types of pizzas to the customers across the world. It has been found that the firm has made various changes in its menu according to a specific place or location (Bhasin, 2018).
Price mix: One of the vital factors of marketing mix is place strategy that helps in gaining long term benefits. The pricing strategy helps Subway to distinguish its prices from the competitors in the global market. Subway sets the premium prices of the products in order to provide good quality of products to the customers in the market. The prices of Subway products are high as compared with other competitors such as McDonald’s and KFC. Aside this, the firm also maintains excellent quality of food products and it keeps high prices to match the quality and features of the products. It will help the firm to retain the large number of target audience globally. Therefore, pricing strategy is initiated by the corporation to meet the long term requirements of the customers (Nagle and Müller, 2017).
Place mix: Place is a significant marketing mix that plays a vital role in maximizing the profitability and outputs. Subway restaurant has become the biggest operators in the market. The international headquartered of the firm is situated in Milford in USA. Apart from this, the firm has five centers that are based regionally. The company also sells its products in Singapore, New Zealand and Australia. By using place strategy, Subway can reach its maximum number of the customers in the marketplace. The organization has opened various restaurants in non-traditional places in the market. Along with this, some outlets has opened in premium areas where customers are bound to be more calorie conscious. With the help of place strategy, the company can make a dynamic and effective image in the eyes of the customers globally (Ivy, 2008).
Communication campaign review
1.The promotional mix plays a significant role in Subway restaurant to promote and encourage the products in the marketplace. Along with this, promotional mix helps in maintaining a reciprocal relationship between company and buyers as well. It also helps in building awareness among the target audience and further it also increases and boosts the loyalty and trust among the customers. In addition, promotional mix also stimulates sales by targeting promotional incentives on a specific products and services. It is an effective and unique short term tool to capture the entire market. In this way, promotional mix is an effective and significant part of the company (Kokemuller, 2018).
2.There are various elements of promotional mix that used by Subway while initiating the business activities and operations. The various promotional mix element include advertising, sales promotion, public relation, and personal selling. One of the significant element that mostly used by the firm is advertising (Mbaskool, 2018). Subway uses advertisement strategy to promote its products and brand. There are various advantages of advertisement in the global market. Advertisement helps in decreasing the cost of the products by rendering the benefits of economies of scale. It also encourages the products of the company in a large extent. On the other hand, advertisement also affects the goodwill of the company adversely. The firm has to invest large amount on advertisement and it is too commercial.
3.It is noted that the company uses social media channels to promote and improve the quality and features of the products. Personal selling and sales promotions are done by Subway to meet the desired needs and requirements of the customers. Beside this, the firm uses slogan ‘eat fresh’ to encourage the freshness and best quality food that they make in the market. The organization also carries a product campaign and program in the series chunk that is watched in T.V. It also uses newspaper, and television to increase and enhance the selling of the products. The firm is well known for its celebrity endorsement as well. This will also help in increasing market share globally (Abdelhamied, 2013).
4.The main and primary key message in video campaign is to increase and enhance the sale and profitability of Subway by focusing on the promotional strategy. Various communications channels are used by the company to attract maximum number of target audience in the international market. Subway wants to increase around 15% market share by December 2019. Furthermore, unique and excellent quality of products is introduced by Subway with the help of communication campaign and programs. This will also help Subway to maximize the outcomes and to make a attractive and effective financial position in the international market (Anitsal, Girard and Anitsal, 2012).
5.It has been noted that Subway always is targeted different kind of age segments by providing them innovative food products. It is especially focused on the kid’s meals to sustain competitive benefits. The company has improved and enhanced the nutritional content of children meal by replacing the carbonated beverage with the vitamin juices. The firm also has launched a new range in Australia such as Moroccan lamb and pulled pork. The characteristics of target audience include demographics, usage, psychographics, benefits and geographic location. The level of income is one of the significant attributes of target audience that helps in deciding the purchasing behavior of the consumers internationally (Joseph, 2018).
6. AIDA stands for Attention, interest, desire and action. It is one of the vital and effective marketing theories that help in overcoming the competitors in the marketplace. This marketing theory helps in achieving the new objectives in the international market. The presented video shows that how the company attains new goals and objectives with focusing on the rivalries effectively and efficiently.
Attention: The consumers become aware for buying the products and services.
Interest: The consumers show their interest by learning about the products and brand benefits.
Desire: The customers develop a positive disposition towards the brand.
Action: The consumers make decision to buy the products effectively and efficiently.
7. Monitor social channel is one of the empirical and important methods that can be used to gather feedback and reviews globally. This method should be used by the company to collect feedback from the customers regarding the quality and features of the products. Monitoring on the social media channel is not a easy task but it will help in resolving and handling the issues and queries of the customers in the marketplace. This method also helps in maximizing the outputs and reducing the threats and challenges of the market (Abdelhamied, 2013).
On the above mentioned analysis it is concluded that Subway restaurant is one of the biggest fast food chains in the international market. It provides various types of fast food products such as pizza, pasta, salads and beverages to the customers across the world. The above mentioned analysis shows that how the company uses marketing mix and segmentation strategies to build and develop a dynamic image in the market. Apart from this, it also provides brief information about the product and market orientation.
Abdelhamied, H.H.S., 2013. The effects of sales promotion on post promotion behaviors and brand preferences in fast food restaurants. Tourismos: An International Multidisciplinary Journal of Tourism, 8(1), pp.93-113.
Ahmed Ismail, E.M., 2016. The impact of Market Orientation and Innovation on Sudanese Export Performance and the Mediating Role of Environmental Factors (Doctoral dissertation, Sudan University of Science and Technology).
Anitsal, I., Girard, T. and Anitsal, M.M., 2012. An Application of Services Marketing Mix Framework: How do Retailers Communicate Information on Their Sales Receipts?,„. Business Studies Journal, 4(2), pp.77-90.
Bhasin.H.,2018. Marketing mix of Subway [Online]. Available from https://www.marketing91.com/marketing-mix-of-subway/ [Accessed as on 9th July 2018].
Businessteacher.,2018. Subway Pestle analysis [Online]. Available from https://businessteacher.org.uk/pestel/subway.php [Accessed as on 9th July 2018].
Edmunds.S.A.,2018. The disadvantages of product orientation to a business [Online]. Available from https://smallbusiness.chron.com/disadvantages-product-orientation-business-45985.html [Accessed as on 9th July 2018].
Grundey, D., 2010. The marketing philosophy and challenges for the new millennium. Scientific Bulletin-Economic Sciences, 9(15), pp.169-180.
Haseeb.,2017. Pestle analysis of Subway [Online]. Available from https://marketingdawn.com/pestle-analysis-of-subway/ [Accessed as on 9st July 2018].
Ivy, J., 2008. A new higher education marketing mix: the 7Ps for MBA marketing. International Journal of educational management, 22(4), pp.288-299.
Joseph.C.,2018. Characteristics of a target market [Online]. Available from https://smallbusiness.chron.com/characteristics-target-market-1020.html [Accessed as on 9th July 2018].
Joseph.C.,2018. Disadvantages of market orientation [Online] Available from https://smallbusiness.chron.com/disadvantage-market-orientation-23294.html [Accessed as on 9th July 2018].
Jurevicius. O.,2013. Mission statement of Subway [Online]. Available from https://www.strategicmanagementinsight.com/mission-statements/subway-mission-statement.html [Accessed as on 9th July 2018].
Kang.B.,2013. Segmenting and targeting markets [Online]. Available from https://3474223248.blogspot.com/2013/12/ch-8-segmenting-and-targeting-markets.html [Accessed as on 9th July 2018].
Kokemuller.N.,2018. Role of a promotion mix [Online]. Available from https://smallbusiness.chron.com/role-promotion-mix-61417.html [Accessed as on 9th July 2018].
Kokemuller.N.,2018. The advantages of marketing orientation [Online]. Available from https://smallbusiness.chron.com/advantages-marketing-orientation-20975.html [Accessed as on 9th July 2018].
Mbaskool.,2018. Subway marketing mix [Online]. Available from https://www.mbaskool.com/marketing-mix/services/16886-subway.html [Accessed as on 9th July 2018].
Nagle, T.T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more profitably. Routledge.
Subway., 2018. About us[online]. Available from https://www.subway.com/en-us/aboutus/searchforbetter [Accessed as on 9th July 2018].
Wedel, M. and Kamakura, W.A., 2012. Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media.
Weinstein, A. and Cahill, D.J., 2014. Lifestyle market segmentation. Routledge.
This problem has been solved.
Cite This work.
To export a reference to this article please select a referencing stye below.
Urgent Homework (2022) . Retrive from https://www.urgenthomework.com/sample-homework/mcom4040-marketing-and-communications-evolution-of-marketing
"." Urgent Homework ,2022, https://www.urgenthomework.com/sample-homework/mcom4040-marketing-and-communications-evolution-of-marketing
Urgent Homework (2022) . Available from: https://www.urgenthomework.com/sample-homework/mcom4040-marketing-and-communications-evolution-of-marketing
Urgent Homework . ''(Urgent Homework ,2022) https://www.urgenthomework.com/sample-homework/mcom4040-marketing-and-communications-evolution-of-marketing accessed 06/10/2022.