Submarine Sandwich and Subway

metros internal and Inter inwardness trade stray design Presented by Moses B eitherenger The University of Houston Victoria International commercialiseing (MKT 6377) 2011 Summer Session Table of limit 2. garner of Recomm final stageation 3. Executive psychodepth psychology 4. Introduction, Background, drumhead and update of the case take up 2. 1 target commercialise abstract 2. 12 old Target regimenstuff 2. 13 Primary Target grocery store Demographics 2. 14 Secondary Target Markets 2. 2 SWOT psychoanalysis 2. 21 Strengths (3 strengths) 2. 22 Weaknesses (3 Weaknesses) 2. 23 Opportunities (3 Opportunities from the macro environment analysis) 2. 4 Threats (3 Threats from the macro environment analysis) 2. 3 contender synopsis 2. 31 Primary contest 2. 32 Secondary Competition 2. 4 Keys to Success (3 keys to victory of the c on the wholeer- give away in order) 2. 5 large Environment Analysis 2. 51 parsimony (2 macro thriftiness eventors) 2 . 52 Culture (2 macro finishing factors) 2. 53 Politics, Rules, and Regulations (2 factors) 2. 54 Technology (2 factors) 3. 1 Mission account 3. 2 selling verifiables (3 Objectives in order of importance) 3. 3 pecuniary Objectives (From the rival analysis) 3. Positioning schema (From the challenger analysis) 3. 5 Marketing Mix Strategies 3. 51 harvest-home g all overning body 3. 52 cost Strategy 3. 53 Promotion Strategy 3. 54 aspire Strategy 4. 0 References 5. 0 Appendices (Promotion flyer and separate) 1. 2 Letter of Recommendation tube-shaped structure immunity main office/Doctors Associates Inc. CEO, President, Co-Fo infra 325 Bic Drive Milford, computerized tomography 06461 United States Dear Mr. Fred DeLuca, I would standardized to thank you first for the chance to involve the merchandising assessment proposal for your lodge.I apprehend you find my recommendations satisfactory in this letter, which is summarized be upset. subway system mustiness first be prestigious for its accomplishments so far to date. much(prenominal) achievement has come round from a baseborn p bentage partnership out of Bridgeport, computed tomography to big world(prenominal) mastery. As verbalise in your vision, beneath crystalise strives to be the 1 quick helping eating asss in the world, spell delivering fresh, delicious preparg geniuss, and exceptional experience. I gestate that much(prenominal) a vision is doable for the addict-shaped, Nipponese, and emerging grocery stores. disdain the challenges and failures of the lacquerese securities industryplace entry, there is much opportunity, littleon, and market shargon to scram. My primary winding recommendation discussed in the proposal is that tube-shaped structure conducts an aggressive and re-entry approach to lacquer. This aggressive, re-entry approach deprivations to be much adaptive to the lacquerese/Asian kitchen-gardening this time. This adap tation entrust requirement to take place from an publicizing and intersection point perspective most in-chief(postnominal)ly. How utile thermionic vacuum tube foc maps on these two aspects pull up stakes destine their success in lacquer and Asia.While electron tube has been highly booming in their orbiculate expansion, the Japanese and Asian markets allow for call for to a greater extent adoption and customization. Nowadays, lever, convey as a level of character reference for an low-priced price take hold ofms to harbour grip in the world-wide marketplace. Emergence of cost- apprisedness seems to be reshaping backing. subway system has done a majuscule chew over at remaining limber enough to change its practicable policies and refreshed enough to listen to its licencees. subway must continue to take this practice into Japan and Asian, date commission on their bone marrow competencies. underpass go out shed to listen to what problems certifyes argon having and make ad rightful(prenominal)ments accordingly. Its the claime thats on the front line, sightedness the daily trading operations, challenges, and guest interaction. I hope you find the search and recommendations sufficient to act on. Thank you over a accomplish for your time and consideration. 1. 3 Executive summary metro represents an excellent case report card of a truly orbicularized caller in todays market place. The unions foc employ its roots from deliverer Fred DeLuca, who has had a clear vision for the afterlife of the vacuum tube mark as it continues to miscellanyulate and serve its nodes.The passion for delighting customers by dowry fresh, delicious, made-to-order sandwiches and providing people with quick, cheap, and nutritious meals has contri bargonlyed vacuum tube to being the license leader in the fast provender application. tubes clever publicizing, set scheme, flexibility, and operating(a) cleverness take over allowed them to expand and be utile beyond national borders. such(prenominal)(prenominal)(prenominal) success has allowed tubing to venture into some(prenominal) foreign markets. thermionic valve has withstood the recent 2009 economic moundturns that aversion a variety of industries partially repayable to favorable intentness circumstances and its own innovative actions. notwithstanding tubings familyer(prenominal) domestic and international success, it is having difficulty in different markets wish Japan. To be success in challenging markets same(p) Japan and clean/emerging markets, subway system go out discombobulate to continue to think remote the box. This thinking whitethorn period of play to be customized to the consequence of each specific market or country. These challenging and un-tapped markets of Japan, Latin America, and Asia for vacuum tube are saturated with domestic competitors like McDonalds, Starbucks, KFC and international competitors like Mos Burger, Mister Donut, and Yoshinoya. thermionic tube is smashing rich with a strong betray image and is therefore positioned headspring and crackting of making large investments in the Asian, Latin America, and some otherwise markets. The electron tube stake success in other countries levels that it fag be customized to local anesthetic cultures and markets for global expansion success. Despite the challenges, pipe has much electric potential and is salutary positioned to relieve oneself profitability and market carry on in Japan, Asia and other markets. thermionic tube lead collect to continue to be innovative, market its strengths, make the prerequisite adjustments to failures, and take favour of opportunities. 1. Introduction, Background, summary and update of the case teaching Introduction subway is an Ameri sack up restaurant claim that sells mainly hitman sandwiches (subs) and salads. It excessively nominates breakfast items such(prenominal) as bag els and nut & sausage sandwiches. In add-on underground makes personal pizzas and salads upon order. It main office is in Milford, Connecticut, with five regional centers supporting the out fermentth international operations. Regional offices are in the Netherlands, Australia, Lebanon, India, and Florida. Background subway is owned and playd by Doctors Associates Inc. (DAI) and was founded by Fred De Luca and shot Buck in 1966.The name comes from the fact that dickhead Buck holds a doctors degree degree. On August 28, 1965 Fred De Luca borrowed $1,000 from family friend Peter Buck to beginning his first sandwich shop. In 1966, they opened their second resistance restaurant in New York Summary of Case The case presentation is a marketing jut for vacuum tubes up coming 2012 fiscal year. In addition, a detai guide SWOT analysis is included. The marketing plan contains a stern market analysis which explains tubes target markets and demographics. A competition analysis is inc luded, which identifies subway system and it competitors in the attention.The marketing plan includes dodging suggestions in regard to harvesting, price, onward motion, and place. These system recommendations are aimed toward fulfilling the suggested mission statements as comfortably. modify of Case Study During the construction of this marketing plan, electron tube continues to move on its globalization strategy thru its aggressive franchising campaign. The tubing prerogative was ranked the number-one en claimment in the submarine sandwich category in the 2011 Franchise 500 Issue of entrepreneur magazine publisher. As of today tube-shaped structure has 34,824 stores in 98 countries and hopes to expand 2,010 restaurants in the U. K. and Ireland. 2. 1 Target Market Analysis tubing conducts a standard market analysis that centeringes on a target market area. In the target market, thermionic vacuum tube foc drills on the highest potential opportunity and leave render the greatest return. Like any other troupe, underpass allow for steer away from ugly markets that offer low return and opportunity 2. 12 Primary Target Market The primary target market consists of scoop shovel customers in the main thru the ages of 16 36 long time old, who are swellnessy and cost conscious 1. Subway intends to market these respective(prenominal)s as a healthier fast- intellectual nourishment option as compared to others such as Mc. Donalds and Burger King. . 13 Primary Market Demographics Subway provides fast pabulum services of sandwiches for individuals and stage straines in different industries. In addition, the alliance provides franchisor services to its franchisee in the form of support and guidance. . The out increment in gross revenue enhancement of the sandwiches lately has put the hamburger empennage as the 1 fast aliment sought for. much(prenominal) a expect in sandwiches sales has been a top of a decrease in consumer using up on h amburgers and fries. A more posit has been toward healthier options. Sales of sandwiches are maturation 15% annually, outpacing sales of burgers and steaks (McCarthy, 2006).The demand demographics in this market depends on consumer preferences and consumer preference trends. currently in the market, particularly the U. S. , there is an enlarge emphasis on healthier and affordable food choices as compared to the past. Subway typical operates in high metropolitan and condensed areas, provided now subway franchises experience expand to outside of urban areas to rural areas. Its not un commons to see a subway storefront in a small town. In addition Subway store front overly operate out of unconventional locations such as schools, universities, stadiums, m spendums, military stations, truck stops, and gas stations. . 14 Secondary Target Markets Subway too functions as franchisor, so it continually seeks business opportunities with potential investors of franchises. Subway provi des prospective investors with franchise culture, guidance, and seminars. There is also a FAQ on the phoner bladesite to answer the most common questions about franchisee opportunities. Subway main business is to sell sub sandwiches to individuals, which drives the main business and secondly to captured qualified and successful franchisees to buzz off their business. 2. 2 SWOT Analysis 2. 21 Strengths 1.Brand Name Subways brand image and appeal has grown signifi tummytly thru its healthy and nutritional advertising, it celebrity advertising, and it affordable growths. agree to Entrepenuer. com was the number 1 franchise in 2001. 2. overlap Offering Despite the heavy competition in return fling in the fast food industry. Subway has go along to battle in this category a crystallizest its competitors of Mc Donalds, jackstones in the Box, KFC, and many more. Subway profit its sandwich offerings such as the BBQ pulled pork, along with adding new breakfast items, salads, and p izza.Along with its ontogenesisd product offerings, the partnership has added a healthy and nutritional food judgmention and has successfully appealed to customers as a healthier option. 3. Simple Franchise operations Subway has a franchise system that is extremely simple compared to other franchises. From an operational standpoint, the preparation of a sandwich is mostly done in front of the customer and has simple steps to make all their sandwiches. From a startup perspective, a franchisee house shit a store well under $200,000. accord to Enterpenuer. com, Subway has cheaper start up cost than Mc.Donalds, Pizza Hut, KFC, and Dunkin Donuts. gloomy start up costs constitute allowed Subway to venture out in non traditionalistic outlets like hospitals, schools, and retail stores like Home Depot and Wal Mart. 2. 22 Weaknesses 1. No Product Differentiation Subways product offerings prolong no stylemark or patent protection, so it products are no different from its competitor s. The only variable quantity that sets Subway apart from its competition is its price. Against its competition, Subway offerings are limited. Other sandwich shops such as Potbellys, which-wich, and Quiznos offer more meat and sandwich image choices. 2.Franchise Over Saturation in certain markets In an converse with Franchise 500, franchise consultant and CEO of FranChoice Jeff Elgin says that there are complaints about encroachment issues concerns that theyre displace too many units close together. 3. bottleneck in Franchise ingathering In contrast to the over saturation of franchise stores, there also has been some stunt of crop in this regard. In an query with Franchise 500, CEO DeLuca says that there is a bottleneck in Subways festering, with many franchisees still searching for a storefront. The real estate bust and wintry credit obligate delayed openings. . 23 Opportunities 1. fruit ( International) Subway has more potential than its competitors for continued s uccess in profits and growth in the domestic and hostile markets. 2. modify Franchise Relations Despites the past issues amid Subway and it franchisees, there is still live and opportunity for the company to enhance their relationships. Such an enhancement bequeath lead to increased satisfaction among franchisees and improved reputation to Subway. This give eventually lead to increased intimate tax for the company and increased pecuniary rate. 3. Untapped Product OfferingsSubway has the potential to merely contend and exceed their competitors in their product offering range. The company testament reserve to make continued investments into research and rearment and testing to see what products work. Subway has way of life to experiments with different meats, cheeses, bread, and other fixins. Since the company is global they fecal matter expand their product offerings to foreign consumers taste preferences. 2. 3 Competition Analysis The Fast food industry is under co nstant and evolving competition. The main competitors in this industry are McDonalds, Yum Brands, Wendys, and Jack-in-the- Box.Yum Brands consists of KFC, Pizza Hut, Taco Bell, and hanker John Silvers. In addition, Subway faces secondary private-enterprise(a) pressures from other sandwich makers like Quiznos, Jimmy Johns, Potbellys, Lennys Subs, Firehouse Subs, Which-wich and many others. With the increased sales of sandwiches in recent years as compared to burgers, secondary competition should be well on the rise for Subway. (13) 4. Keys to Success According to Michael McCarthy, success factors testament include products and marketing targeted to healthier menu make outions, brand consistency, low start-up costs, franchisee support, and consumer convenience.This success factors covers the scope of Subways current challenges and concerns. Subways continued success allow continue to thrive off its brand, fascinating low franchise costs, and healthy menus selection. However, Sub way entrust have to focus on improving their relations with franchisees. A wish of mismanagement of the franchisee issues could lead to catastrophic results for the company. 5. Macro Environment Analysis 2. 51 Economy In 2008 and 2009, the world seemed turned big top down by prejudicious economics events. The financial meltdown in the U. S. lagued several industries, rivetd the availability of credit, and created massive job losses. The two effects created massive burble effects in every regard, such as reduced consumer spending and increase cost understanding. The fast-food industry seemed un impressed notwithstanding and Subway seemed to find a tasty growth in a play economy. Companies like Starbucks suffered when customers get the jitters about paying for premium coffee. But Subway managed to do supremely well in a down economy where its $5 dollar substructure long and other value food items appealed to cost conscious customers.As a whole the industry has embraced val ue meals, cutting prices and offering more or less. It has been a reaction to more consumers who are repealing restaurants in an effort to save money. For the industry, price-cutting is a tested technique to weather an economic downturn. Subway has proven such so far during the U. S. sluggish economy my offering daily value meals and monthly specials like the $2 cold cut and meatball subs for July. 2. 52 Culture Subway has capitalized on the health conscious revolution by focusing its advertising on its healthy but tasty offerings.It featured a testimony by a satisfied customer, Jared Fogle, who state that he lost 245 pounds by substitute on 6 Subway sandwich a day for one of his meals. The results were gallant and the company embraced the Jared testimonial of the health benefits of eating its food compared to others. The Jared campaign proved to have excellent timing during the health consciousness revolution in America. After the company realized the value of Jareds testimonia l, it utilise its professional communications staff to create appealing advertising, harness social media, and develop online relationship building activities. Pina, 2010). From the point Subway launched as series of health initiatives in response to the high demand of the health culture, such as ingest Fresh and modified its corporate web site to the nutritional and health informatory indispensablenesss of its customers and the public. 2. 24 Threats 1. Franchisee Disparity Subway has had a continued history of franchisee dissatisfaction. Such dissatisfaction has come from franchisor support, franchise contractual arrangements, and over saturation of franchises in some markets. These disparities will affect the public image of Subway as an investment choice among investors and it profits.The extent of franchisee dissatisfaction has even led to litigation and material body action law suits over Subways low-down contractual provisions. 2. Franchisee Disparity (Revenues) Franch isee disparity is two-fold. The other side of the disparity is poor franchise capital punishment. This disparity can be seen as early as 1998. In a CNN Money article, consultant Cliff marshall estimates that 25% of franchisees are unhappy and suffering, plot of ground about 40% are just getting by and making a few dollars, and 30-35% are happy and doing fine, though many of the happiest owners are also agents, who can control the number of competing Subways. . Competition An on-going threat to Subway is its own competition with the fast food industry. Its biggest competitor, McDonalds will constantly stay on its heals in competition in terms of global expansion, product offering, financial performance, and many other variables. In addition, other competitors like Quiznos, Which wich, Jack n-the Box continue to offer more product offerings and competitive prices . Any slow or bad year for Subway could lead it to be easily bumped down in the franchise ranking. 2. 53 Politics, Rul es and RegulationsSubway is under regulation over several federal, state, local agencies. In addition the company can become subject to pressure from consumer bide/advocacy groups. wedded that Subway is in the fast food industry, the company like its competitors have seen significant pressure in corporate social responsibility on food character for consumers. For voice, according to the midway of comprehension in the Public raise (CSPI) and more than 30 other national and local health advocacy groups and experts have urges Subway to set nutritional standards for foods marketed to children.According to the CSPI and other groups, Subway is missing from industry self-regulatory programs. CSPI and other groups wants Subway to join the Council of Better barter Bureaus Childrens fodder and Beverage Advertising Initiative (CFBAI). Since Subway resides in the fast food industry, it has also came under heavy subjection for kilocalorie content, Trans fertile, and portion sizes. In response to such Subway has become more unmingled in its product offerings to consumers. In addition is has labeled the fat and calorie content on some of its sandwiches online and in the stores.If you go to Subways website, and click on a given product, it will show the nutritional information. Such a revealing of informational has resulted from national and local group pressure. 2. 54 Technology The use of engineering science is play a significant role in the outcome of international business success. Subway must devise a technology strategy that will keep it well informed on it sales metrics, customer spending behavior, and store management. The use of e commerce and web-enables services with suppliers and vendors will be necessary in todays business climate.All these technological pursuits will need to aim at customer satisfaction, inventory efficiencies, gathering critical information quickly. The use of technologies such as inter kale and point-of-sale will be pivotal for Subway and its franchisees to gather and collect information quickly and efficiently as compared to traditional ways. With POS data can be tasteful to provide instant information on weekly sales movements and market shares of individual stores. POS also renders better data case. It can act as virtually accountant of information. (Kotabe, Helsen 2010).According to Restaurant Informer. com, another trend in quick-service restaurants (QSR) is the use of kiosk ordering and contactless hire options. Installing Kiosks saves labor and cuts down on staff errors. Such errors can be on wasted food or register errors. The Subway is currently experimenting with kiosks, allowing customers to select their own order. 3. 1 Mission Statement Delight every customer so they want to tell their friends with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience. 3. 2 Marketing ObjectivesGlobalization is a increasing kind in todays markets. Subway success is still heavily certified on its U. S. operations, since roughly 20,000 of the 34,842 worldwide stores are in the U. S. Therefore revenues are highly dependent on the domestic stores/franchises. Since Subway is a privately held company, any form of marketing objectives will not published. Therefore, I have suggested a set of marketing objectives for the upcoming 2011 and 2012 fiscal years. Objective 1 (Continue International Expansion) Subway continues to grow globally each year.Based off the chart below, Subway is expanding 2,000 stores on average since 1995. If this trend continues and all variable remain constant the company by volume will capture more revenues over time. Such increase in volumes whitethorn or whitethorn not fulfill the financial objectives mentioned below. pic Objective 2 (Capture more global revenues and market share) In conjunction with Objective 1, Subway will need to focus on capturing more revenues for 2011 and 2010 in international markets. more(prenomi nal) store-front expansion will lead to less dependency on the U. S. market performance and economic climate.According to Micheal McCarthy the U. S. fast food market has seen a healthy rise in growth in the last cardinal years, with a compound annual growth rate of 2. 3% surrounded by 2005 and 2010. The overall market value from this is $57billion by the end of 2010. Given this information, it can be inferred that the growth rate will continue at this pace. So for 2011 and 2012 the fast food industry should be valued around $58 and $59 million respectfully. Given this additive pattern, Subway should look to increase the market share by 1-5% domestically. Such a market share goal is practicable and reasonable.This domestic goal should be used as a guidance for astute international figures. Each individual foreign market would have to be assessed to determine what type of marketing objectives. Objective 3 (Make Key Strategic Partnerships in unlike Markets) Regardless if the m arket is Japan or Latin American, Subway will need to make key strategic coalescences with host country firms when necessary. Such alliances will avoid costly and failed entries, such as Japan. Given the genius of Subways franchise business, franchisees take majority of the burden for failed performance.The nature of the strategic alliance will veer from each market. Subway may have to make different types of alliance mingled with Japan and Latin America for example. It is plain that a unique form of strategic alliance will be required for Japan as compared to Latin America. distinctly Subway will need a strategic alliance, where a Japanese advertising firm will do the progression and advertising to help get the brand crossways. Another strategic alliance that could be made in Japan is one with Japanese ingrained farmers and meat producers.This alliance could bring in the fresh complete ingredients needed for the appeal to Japanese consumers. 3. 3 Financial Objectives Sin ce Subway is privately held, the company is not subject to stockholder expectations and pressures. However, the company is subjected to heavy competitive pressures. Such pressures have transpired to financial performance. Objective 1 ( accession Domestic & Global Revenues) According to The Week, Subways revenues in 2010 was $15. 2 billion, while Mc Donalds was $ 24 billion.. Subway had 33. 749 stores worldwide, while Mc Donalds 32,737 stores in 2010.Clearly this shows the top two competitors in the industry battling intensely. Subway clearly is behind in revenues overall and revenues per outlet. Objective 2 ( change magnitude Franchisee Financial Performance) Given the franchise business model, Subway does have an obligation to service and support franchisees in their store-front goals and challenges. Given this, overall franchise and franchisee financial objectives should be famous separately. Given the revenue figures mentioned above, Subway and its franchisees need work togethe r to reduce operational costs by all measures.Sure a decrease in operational costs will help increase revenue per franchisee and make them more competitive with McDonalds and other competitors. Such a focus to work with franchisee satisfaction will increase demand in the long mental testing for Subway franchisee contracts and increase intrinsic value for the company. Objective 3 (Adjust Royalty fees) It can be inferred that Subway needs to increase its overall revenues and revenue per franchise in order to close the gap between its biggest competitor. To meet this financial objective will be challenging.The company globally is seeing a rise in operational expenses in the form of rising lower limit wage, utilities, and food processing. It appears that the quickest adjustment that the company can make to increase revenues is to reduce or increase the royalty franchise fees. According to Subways FAQs on its website, royalty fees are 8% of a franchisees revenues in the U. S.. However the company may need to make royalty adjustments worldwide and test the effects of a increase or decrease on overall revenue and revenue per franchise. 3. 4 Positioning StrategyAccording to Smithfam. com, a positioning strategy results in the image you want to fuck off in the mind of your customers, the picture you want him/her to visualize of you, what you offer, in relation to the market situation, and any competition you may have. Since Subway operates in a highly competitive fast food environment two domestically and abroad, the company will have to keep its competitors in perspective when formulating a positioning strategy. The company should evaluate their competitors strengths in the Japanese market and incorporate it into their strategy.For example competitor, Mos Burger uses unplayful quality ingredients, which reflects the range of mountainss high prices and wholesome image. This has led to Mos Burgers success in Japan. While accomplishing all the noted above, Subway needs to stay focused on its core competencies and values that has gotten them to where they are today. 3. 5 Marketing Mix Strategies 3. 51 Product Strategy Subway provides products with a global brand that is well- contendn and, most grandly, healthy, with split of flavor and variety on its menu. Subway product line consists of numerous varieties of sandwiches served with different fillings and on different types of bread.The choices are multiform but the product line is anchored by one choice 6 inches or 1 foot long. Subway has been successful in the U. S. with its product offerings, pricing, and advertising and has led to a strategic advantage for the company. Subway promotes its sandwiches as fresh, healthy and made-to-order. They use the shibboleth Eat Fresh. In the international marketplace where Subway is trying to gain its footing, in terms of market discernment and gained market share, the company will need modify its product strategy differently from its internation al and domestic strategy to fit the needs of Japan and Asian countries.Since Japan and Asian countries have been such a challenge for the company, it will critical for Subway to develop a efficient product strategy. Out of the four Ps in the marketing mix, Product strategy will be main fixed of Subways success in Japan. Subway promotes its sandwiches as fresh, healthy and made-to-order. They use the slogan Eat Fresh. This concept and slogan can be effective in Japan, but will have to be taken in a further context to satisfy Japanese consumers. Japanese consumers think of healthy food more in terms of quality for example, how fresh, pure, or organic ingredients are than in terms of ts calorie or fat content or cholesterol level. Subway may have to modify its product strategy to show its quality more transparently with consumers or switch to organic ingredients. Therefore different investments made have to be made in higher(prenominal) quality foods as compared to other countries/m arkets. 3. 52 Price Strategy Pricing will correlate with product as an important factor of the marketing mix. A whelm or significant modification in product strategy will affect pricing strategy accordingly.Given the product strategies suggested above, Subway may have to adjust its pricing for sandwiches if all organic ingredients will be used in Japan. This however may not translate to a negative response from consumers in Japan. Japanese consumers may be willing to pay more for a sub sandwich if its made of quality, fresh, and organic ingredients. Customers willingness to pay will vary across cultures text book and products that are perceived as good value in one culture may have little to no value in other cultures.So who knows, perhaps the $5 foot long concept will evolve to $ 6 foot long in Japan, where the Japanese see it as the same value as U. S. consumers. Another alternative maybe to pass the costs of going organic in Japan to other products, such as chips, drinks, cooki es, or salads? In the end, to establish a stronger brand image and sustain/grow a market presence, Subway may have to subsidize their pricing to gain some market share and familiarity in Japan. This approach may be necessary until a market presence has been realized and then the company can build in pricing promotions similar to the U. S. such as weekly value meals, monthly values deals ( $2 cold-cut & meat ball sandwiches in July), and foot-long specials ($5 foot long). 3. 53 Promotion Strategy Subway is the one of largest franchises in the world with a global presence that can be mat up and seen. Despite this, such a global presence hasnt been entirely felt in Japan and other Asian countries. Former franchisee owner Tetsuzo, Ono, in an interview with Englands The Times newspaper in 2002, said that people who didnt know sandwiches never saw any commercials, never heard any word of peach and because the chain did not grow, never passed a store on the street.Given this feedback f rom franchisees and the lack of success in Japan, Subway will need to revamp their promotion strategy. Such a promotion campaign will need to be focused on advertising, promotions, and direct marketing. Focusing on these ternary aspects will cover all statistical distribution channels and get the word out to Japanese consumers. Subway can use channels such as internet, television, sport organizations, and special events. In addition the promotion strategy needs to be strictly adaptive and customized to the Japanese and Asian cultures. 54. Place StrategyPlace refers to distribution and also can be thought of as the place of leverage. This strategy asks Do you want your product to be everywhere? or do you want to create demand for it because its exclusive and hard to find? 2 Its very important for Subway to be cautious with its place strategy because such a strategy makes a statement about the quality and status of their product. Typically Subway places its stores in commercial a reas or as complete stores. Subway will also place store fronts in unconventional locations, what Subway calls unique stores on its website.Such stores will be museums, airports, military bases, schools, colleges, stadiums, supermarkets, and gas stations. At the moment, Subway seems to be well positioned and on embrace in terms of place. There are already 115 stores in Japan. According to the franchise application guide book, Subway is focusing on opening more stores around Tokyo, Kyoto, Osaka, and Kobe. In these cities, Subway will target downtown areas, business areas, sport centers, and rail station hubs. References 1) The Week (2011, demonstrate 8). Subway, the Worlds biggest restaurant chain By the numbers. Retrieved, in 16h July 2011, from http//theweek. om/article/ ability/212902/subway-the-worlds-biggest-restaurant-chain-by-the-numbers 2) Subway Restaurant website. History. US. Retrieved, in sixteenth July 2011, from http//www. subway. com/subwayroot/AboutSubway/history/ subwayHistory. aspx 3) Michael McCarty (July 2006). Fast Food Market Forecast- The Subway Example of Strategic Product Positioning. Ezine Articles. Retrieved, in seventeenth July 2011, http//ezinearticles. com/? Fast-Food-Market-ForecastThe-Subway-Example-of-Strategic-Product-Positioning&id=735770 4) entrepreneur Magazine (January 2009). Top 10 Franchises of 2009. Retrieved, in sixteenth July 2011, from http//www. ntrepreneur. com/magazine/entrepreneur/2009/january/199094. hypertext mark-up language 5) Entrepreneur Magazine (2011) 2011 Global Franchising Rankings. Retrieved, in sixteenth July 2011, from http//www. entrepreneur. com/franchises/rankings/topglobal-115388/2011,. html 7) Richard Behar (1998 March 16) Why Subway is Fortune Magazine. CNN Money. Retrieved, in sixteenth July 2011, from http//money. cnn. com/magazines/ batch/fortune_archive/1998/03/16/239302/index. htm 8) Margie Walker. (2008 August) Using Technology to Increase Your Bottom Line. Restaurant Informer. com. Re trieved, in 17th July 2011, http//www. restaurantinformer. om/2008/07/using-technology-to-increase-your-bottom-line/ 9) Synergy Resources (2008 February 12). Synergy Resources Announces Successful execution of instrument of ERP System at Visual brilliant Systems in NYC. Retrieved, in 16th July 2011, http//www. synergyresources. net/pdf/Visual_Graphic_Systems_-_Press_Release. pdf 10) formal Subway Restaurant website. US. Retrieved, in 14th July 2011, from http//www. subway. com/subwayroot/index. aspx 11) Subway Restaurant website. World. Retrieved, in fifteenth July 2011, from http//world. subway. com/Countries/frmNutrition. aspx? CC=AUS&LC=ENG&Mode 12) Official Subway Restaurant website.Q&A. UK. Retrieved, in fifteenth July 2011, from http//www. subway. com/subwayroot/index. aspx 13) Wikipedia. The Free Encyclopedia. SWOT. Retrieved, in 15th July 2011, from http//en. wikipedia. org/wiki/SWOT_analysis 14) Entrepreneur Magazine (January 2009). Top 10 Franchises of 2009. Retrieved, in 14th July 2011, from http//www. entrepreneur. com/magazine/entrepreneur/2009/january/199094. html 15) Romero, Dennis. (2009). Subway hit the spot. Entrepreneur, Vol. 37(1), p cxxv 133, 8p. Retrieved from patronage Source Complete 16) Comes, Steve. (2010). Fred DeLuca. domains Restaurant News, Vol. 4 (37), p54, 1p. Retrieved from Business Source Complete 17) Nations Restaurant News (June 2010). Top one hundred Chains Ranked by Growth In U. S. Franchise Units. Retrieved, in 15th July, from Business Source Complete 18) downwind A. Obringer. (June 2010). How Marketing Plans Work. Retrieved, in 16th July 2011, http//money. howstuffworks. com/marketing-plan24. htm 19) CSPI (January 2009). Subway Urged to Set Nutritional Standards for Foods Marketed to Children. Center for Science in Public interest. Retrieved, in 16th July 2011, http//www. cspinet. org/new/200901141. html Appendices A. Subways J-Curve pic