MCOM4040 Marketing and Communications For Subway Restaurant
Questions:
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
Answer:
Introduction
Subway restaurant is one of the biggest food chains in the market that was originated in 1965. It is a market leader in the sub and sandwich shops rendering a healthier alternative to traditional fast foods. The store of the restaurant brand started more than 50 years ago. In today’s era, the company brand is the world’s biggest Submarine sandwich chain with approx 40,000 locations across the world (Subway, 2018). The firm is growing and leading company who provides delicious and tasty fast food products to the customers throughout the world. The main vision of the company is to make restaurant and operations in a hassle free manner. The firm understands the significance of rendering a variety of healthy options and offering access to complete nutritional information for the customers (Subway, 2018). The corporation is also working constantly to improve energy efficiently, food and water quality, and water conservation and reduce waste stream. Apart from this, effective CSR activities also are being exercised by Subway restaurant widely. It also uses dynamic and strong supply chain management to supply the fast food products effectively and efficiently. Furthermore, code of conducts and ethics are also followed by the organization carry out the business activities effectively and hassle free manner.
Marketing is one of the biggest strategies for each and every company. As the same way, Subway restaurant also uses marketing mix strategies to compete and strive with rivalries in the marketplace. Marketing and product orientation concept, political and environmental factor also have been explained in the task. In first part, the report outlines the marketing mix strategies of Subway restaurant. In second part, the paper discusses about the promotional mix that helps the company to encourage the customers for buying the fast food products. The paper also depicts ample of information about the key target audience of Subway restaurant.
Evolution of marketing
Marketing and product orientations
Marketing may be defined as an activity, processes for creating, set of institutions, communicating, rendering and exchanging offerings which have value for the customers, partners, clients and community in a large extent. In this way marketing plays a significant role to attract and retain the customers in the global market (Polyorat and Sophonsiri, 2010). By using marketing research, the company may able to increase and enhance the sale and profit volume.
Product orientation is also considered an important and effective concept to make attractive and effective the products in the competitive market. An organization that follows a product orientation choose to ignore their needs, requirements and choices of the customers and they start to focus on the efficiency, quality and effectiveness of the products (Baker and Hart, 2008). In product orientation, the company just only focuses on the features and quality of the products.
Advantages and disadvantages of marketing have been detailed below.
Advantages
- Marketing helps in promoting and enhancing the business globally.
- Furthermore, it also helps in enhancing and improving the brand recognition in the competitive market.
- Marketing also improves the business profits by increasing or boosting the sales (Kokemuller, 2018).
Disadvantages
- It has been found that marketing is very costly and time consuming process.
- Lack of certainty is other disadvantage of the marketing.
Advantages and disadvantages of product orientation have been discussed below.
Advantages
- Product orientation helps in identifying and determining the quality, features and size of the products.
- Another benefit to the product orientation is that it permits for a technology to be built and developed that can be used for a wider range of a products.
- Economies of scale is one of the significant advantages of product orientation (Bender, 2018).
Disadvantages
- Missed opportunities is a significant disadvantage of the product orientation.
- Narrow branding is also a biggest cons in the product orientation (Edmunds, 2018).
Orientation adopted by Subway
It has been found that orientation plays an empirical role in Subway restaurant to gain competitive advantages in the international market. There are two orientation approaches used by the company such as market orientation and product orientation. For example, the company uses social networking services like Twitter, Facebook and other various customer services to connect with the customers in the global market. Along with this, the organization also uses product orientation to improve the quality of the ample of products. Subway, unlike other restaurants renders ample of choices for the customers on the menu. With the help of product orientation, the customers can choose the flavour, amount of these, bread, vegetables and sauce and other side menus that can go with the sandwich (Drummond, Ensor and Ashford, 2007). Through market orientation, the firm has been able to conform to those needs, requirements and wants, generating what the public wants. Furthermore, Subway also uses product orientation to focus on the internal research and development and quality of the products. It helps in overcoming the competitors in the international market. It is analysed that product and market orientation help in achieving the desired goals and objectives successfully and effectively (Drummond, Ensor and Ashford, 2007).
Marketing environments
Political factor and one environmental factor
Political factor: There are various political factors that need to be kept in mind while focusing on the performance of the international food chains like Subway. These elements put direct impact on the business activities and operations of the company (Khan, 2014). One effective and dynamic political element is the health and safety guidelines provided by the government of the state in which the company is initiating the business activities and operations. These guidelines also affect the strategies and policies of the firm . In addition, the other political element such as campaigns is carried by the government and semi government companies working in those specific areas. These campaigns also put the impact on the food chains such as Subway (Haseeb, 2017).
Environmental factor: One of the significant factors of environment is social factor that can affect the success and growth of Subway adversely as well as positively. The social factors include culture, values, attributes, beliefs and behaviour of the people. Changing customer trends and buying behaviour have also impacted on the company with consumers seeking for excellent variety in their menu choices and preferences. Apart from this, the elements such as eating healthy and obesity have also been the greater and effective opportunity for the food chains such as Subway that is rendering the fresh and customised tastes in sandwiches away from the typical junk foods such as stuff and burger. This factor can affect the business activities and functions of the company directly or indirectly as well (Samnani, 2014).
Marketing strategies
Differences between psychographic and behavioural segmentation
Segmentation plays an empirical role in each and every company to fulfil the needs, wants and requirements of the customers. Subway focuses on the age group between 16 to 39 years who are very health conscious. Thus, by rendering healthy and fresh food, Subway divided the customers on the basis of the trends or psychological. Aside this, by providing the suitable priced food with unique and dynamic services, Subway wants to capture the entire target audience in the marketplace (Wells, 2011). The psychographic concept is something related to the value for money. On the other hand, behavioural segmentation also plays a vital and enormous role in Subway restaurant to keep the reciprocal relationship with customers globally. The organization divides its market after considering the behaviour, values and beliefs of the people widely (Demby, 2011). By providing catering services to its customers, Subway restaurant wants to make a dynamic financial position in the international market. The firm knew that with busy and hectic lifestyle, healthy and fast foods are essential in everyday life for everyone. Subway restaurant makes some special promotion and advertisement during festivals such as new years and Christmas by rendering gift cards and other offers. This indicates that the company segments its market on the basis of behavioural segmentation.
Types of segmentation
Mainly, Subway is divided its market after considering the geographic areas. It is one of the biggest and unique segmentation strategy that initiated by the company while conducting business activities and operations globally. For example, they render mostly halal menu in Middle East countries, mostly vegetables without beef in India and also offers more sauce for American. The company focuses on the geographic areas to gain rivalries advantages in the global market. After the various analysis it is noted that majority of the customers are focused on the age group in between 18 to 39 years furthermore many people are either working or studying. Apart from this, the company is segmented on the basis of psychological areas to render healthy and fresh foods and beverages. In addition, by rendering the products at appropriate prices with fast and attractive services, the organization wants to make a dynamic and unique image in the minds of the customers in the global market. It is one of the biggest and unique submarine chains in the world. In upcoming months, the company is planning to expand and explore the business in various other countries such as Thailand, Belize, Luxembourg, and Hungary to compete and strive with competitors in the global market (Gunter and Furnham, 2014).
Marketing mix
Identify and describe
Product strategy: It is one of the significant and effective strategy for Subway that used by Subway globally. Subway menu renders variety of pasta, dinners, salads, soups, and desserts. The organization provides better quality of products and menu. In 2004, the company chain launched a line of new crab controlled wraps. Furthermore, the organization added fresh toasted products in 2005. The restaurant provides products with excellent ingredients in the global market. All the food products of the company are made on the spot while the customers select what toppings she/he wants on the sub. In this way, Subway uses unique and effective strategies to introduce new and innovative products in the international market. It will help in overcoming and handling the competitors in a large extent.
Pricing strategy:Price is one of effective and potential elements of the marketing mix that helps in attaining the desired objectives and targets worldwide. It is dynamic and unique factor of marketing mix because it has direct impact on the behaviour of the customers. The pricing strategy helps in increasing and enhancing sales volume and growth rate of the company successfully. It also has a direct and significant impact on the economy of the country. Subway uses upscale pricing strategy to attract and retain wide range of the customers globally (Herlé and Rustema, 2012). The company is able to offer different types of products by using or initiating the pricing strategy. The pricing strategy helps the company to create a value for the customers in terms of quality and attributes. Subway differentiates the prices of the products from the competitors to make an effective financial position in the global market. It will also help the restaurant to attain maximum benefits globally. By using further pricing strategy, the organization has been able to maximize the returns and revenue in the competitive market (Rahman, 2018).
Place strategy:It has been found that Subway restaurant is becoming one of the biggest operators of restaurants that are around 42,673 with its franchises in one hundred and eight countries (Bhasin, 2018). Aside this, Subway uses their majority of selling places as franchise shops and their other effective and unique development locations such as business centres, airports, coliseums, colleges, universities, stadiums and hospitals. It is analysed that marketing research and survey is done by the company to find out attractive location in the marketplace. It will further help the firm to maximize the customers worldwide. Place strategy is unique and effective to capture the entire market globally (Bhasin, 2018).
Communication campaign review
1.Promotion is an integral and dynamic part of the marketing mix. The role of promotion in the marketing mix is vital and effective for brands who want to ensure the rights and dynamic consumers are reached and goals are met. By using this strategy, the company wants to connect with consumers to generate maximum outputs and revenue. With the help of promotion strategy, the people get to know about the products ad brands of the firm. Along with this, it also helps in providing ample of information and facts related to the quality and aspects of the products (Suttle, 2018).
2.It is noted that Subway uses a number of strategies when promoting the fast food products globally. The company uses television advertisement strategy to capture the entire target market globally (Anitsal, Girard and Anitsal, 2012). It is an effective and dynamic key to attract maximum target audience in a large extent. The advantages and disadvantages of advertisement strategy have been discussed below.
Advantages
- It helps in enhances the goodwill and brand loyalty of the customers.
- It improves the quality of the products.
Disadvantages
- High cost involved in advertisement.
- Competition is fierce.
- Along with this, it is also very complicated to attract customers globally.
3.Subway slogan “Eat fresh” is effective source to promote the fast food products in the global market. In this way, advertisement strategy is used by the company to attain rivalries benefits internationally. It uses athletes to encourage their products like football legend Pele, Olympian Michael Phelps and NBA player Blake Griffin. Subway restaurant used innovative and dynamic social media channels such as digital marketing, T.V, radio and other attractive channels. The firm also uses various campaigns, programs and campaigns to increase and enhance the sales and returns in the competitive market. Along with this, it also helps in achieving the desired mission and vision (Suttle, 2018).
4.The main motive of the video is to increase and enhance the sale of the company globally. The mission of Subway restaurant is to offer reasonably priced quality fast food in an effective manner. With the help of presented video, Subway restaurant wants to attract wide range of consumers internationally. Along with this, the video also provides information about the promotional mix strategies of Subway restaurant in the rivalries market. The company wants to increases awareness among the customers by using promotional mix strategy (Schlosser, 012).
- Mainly, Subway restaurant is targeted the kids of different age groups to maximize and increase the selling rate widely. Kids group is one of the biggest target segments for the company in the marketplace. Along with this, Subway restaurant target market is young adults between age of 16-39 years who want to eat healthy and delicious food. Income level of the consumer is one of the dynamic characteristic that helps in determining the sales and revenue of the company. The demographics, culture and values are also included in the characteristics of the target audience (Kraig, 2013).
6.AIDA comprises attention, interest, desire and action.
Attention: In this force, people become more attentive to buy the products globally.
Interest: Under this force, consumers show their interest by learning about the quality and aspects of the fast food products.
Desire: In this force, the consumers develop and build a favourable disposition towards the brand.
Action: The consumers decide to buy the products widely.
Subway restaurant uses AIDA marketing strategy to achieve and accomplish the innovative and new objectives and goals. AIDA helps the company to communicate and collaborate with customers more effectively and efficiently (Suttle, 2018).
7.There are various ways to collect information and facts on the effectiveness of the video campaign. It has been found that the company should use email surveys for new customers in the marketplace. This method is inexpensive and unique to increase the number of the customers in the marketplace. Sending surveys through email is remarkably more cost effective and dynamic than using regular mail to conduct surveys and market research. Along with this, it is attractive and dynamic tool to gather information about the individuals and groups. Therefore, the company can use this method to make a goodwill and brand image internationally (Suttle, 2018).
Conclusion
It is concluded from the above mentioned analysis that Subway has attained excellent marketing position and brand image in the fast food industry. There is high and immense competition for Subway product line. The above mentioned analysis shows that how the company uses marketing, segmentation and marketing mix strategies to compete with competitors in the international market. Here is the discussion about the marketing and product orientation concept that are being used by Subway to gain competitive benefits widely. It also discusses how communication campaigns and programs help the firm to maximize the sale and outputs globally. The political and environmental factors also have been explained in the task.
References
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