Professor: Cheng – Nan Chen Students: Lim Veron Nardy –

M987Z210

Yoseph Kaburuan –M987Z213

Sermsri C. –M987Z220

Lee Po Kun –M9870114

Nguyen Duy –M987Z218

Pham Thi Nguyet –M987Z241

Introduction

Marketing Environment (Micro & Macro)

New strategy to repositioning – differentiation

Subway SWOT analysis

Conclusion and Recomendation

Question Discussion

Previous position and challenges

Fast food is the term given to food that can be prepared and served very quickly.

Fast Services Food = General term used for a limited menu of foods that lend themselves to production-line techniques; suppliers tend to specialize in products such as hamburger, pizzas, chicken, or sandwiches.

Fred DeLuca founded the SUBWAY® chain in Connecticut, USA, in 1965. The company has since grown into a multi-billion pound business, with 31,949 outlets in 91 countries.

The SUBWAY® chain aims to increase the number of outlets it has in the UK and Ireland to over 2,000 stores by 2010.

In 2009, the SUBWAY® chain was ranked the

number one franchise

opportunity by Entrepreneur Magazine. 

In 2008, the SUBWAY® chain was voted the No. 1 sandwich provider in the British Sandwich Association’s (BSA) sandwich industry report. 

In most years, about 70% of new SUBWAY® franchises are sold to existing SUBWAY® owners. 

The low fat menu is popular with customers all around the world. 

Diet Start Date: Mid-March 1998

Height: 6' 2'' Starting weight:

425 pounds Current weight: 190

pounds

The Jared Diet: New healthier sandwiches:

less than 7 grams of fat

Menu for lunch: Six-inch turkey,

no mayo, no oil, hold the cheese

Menu for dinner: A footlong veggie, baked potato chips, diet beverage

Background - The McDonald's Story The McDonald's story began in 1940 when

Dick and Mac McDonald opened a highly successful car-hop, barbecue restaurant in San Bernardino, Calif.

They temporarily closed their restaurant, built a simplified menu around their best-liked products, designed a more efficient interior and re-opened with self-service at the former car hop windows.

Thus, they invented the self-service, drive-in concept that was a limited-menu, paper-service, hand-out operation, featuring 15-cent hamburgers, 19-cent cheeseburgers, 20-cent malts and 10-cent French fries.

After a slow start, business boomed. In 1952, American Restaurant Magazine ran a cover story on the phenomenal success of the brother's new concept.

McDonald’s

In 1955, Ray was granted exclusive rights by the brothers to develop and franchise McDonald's drive-ins for the United States. Ray formed McDonald's System, Inc. in 1955. Ray opened the 9th McDonald's, his first, in Des Plaines, IL, in April 1955. In 1961, Ray bought from the McDonald's brothers the proprietary rights to the McDonald's system, including all rights to the rest of the world. The organization that Ray founded -- today's McDonald's Corporation -- proceeded to add more than 23,000 McDonald's restaurants and 4,500 franchisees across more than 111 countries around the world.

McDonald’s

India In India, there are

no Big Macs because the Hindu people don’t eat beef.

However, they have the Maharaja Mac, which is a Big Mac made of lamb or chicken meat. There is also a vegetarian burger, the McAloo Tikki.

Germany It’s bottoms

up in Germany, where McDonald’s serves – Beer!

CANADA In parts of

Canada, have a lobster dinner with the McLobster lobster roll. Pardon me – “McHomard” (in French).

JAPAN Japan totally reinvents

McDonald’s with its Ebi Filet-O (shrimp burgers), Koroke Burger (mashed potato, cabbage and katsu sauce, all in a sandwich), Ebi-Chiki (shrimp nuggets) and Green Tea-flavored milkshake!

NORWAY In fish-loving

Norway, they have the McLaks, a sandwich made of grilled salmon and dill sauce.

HONG KONG Rice-loving Hong

Kong, has – of course – Rice Burgers, where the burgers are in between, not burger buns, but two patties of glutinous rice.

* Age Structure Young people become the

target of fast food industry. The younger the person,

the more they eat out at fast food restaurants.

*Working WomanThe increasing number of working woman, makes the need of fast food service growing.

The young people attend to eat together with friends or co-workers.

The raise of health consciousness.

The need of natural product and demand from customer for company

Families that have more money eat out more.

The larger the family, the less they eat out, but the times they do eat out, they visit fast-food restaurants more.

People spend more money on fast food than they do on higher education, personal computers, software or new cars. They spend more on fast food than on movies, books, magazines, newspapers, videos and recorded music - combined.

Mission Healthy food – healthy world

Objective - One of the world’s fastest growing industries - Provide quality fast food with international standards, taste and freshness

Broad strategies

- Remake image - Reposition for a global future- Sign up franchisees and open new stores as more as possible- Build up the reseller and wholesaler system all over the world

Policies - Quality – safe – clean - High brand awareness and preference

Most of fast food companies have competitive marketing strategy globally to get the target - “Become the number one position in fast food industry” with healthy product.

Franchisee is one of the most popular meanings in marketing strategy.

Build up the large restaurant system as more as stronger.

List of fast food restaurants: McDonald’s Burger King Subway Pizza Hut Yum! A&W Restaurants And so forth.

1.ImageThe essentials of the Subway “eat fresh” Image2. Transparency of PreparationAt Subway Restaurants you can see all ingredients YOU choose for your Sandwich.You can observe every step of preparation in front of youYou are always asked for every single vegetable in order to focus you on the “live preparation”3.Emotional and psychological itemsThe colours and materials that are used for furnishing & the design elements of a Subway Restaurant are always natural: wood tones, brown, green and red

Shops fast food appear more and more over the world

Competitor:Reduce price: McDonald’s retaliated by reducing the price of it burger to 99 cents in the US and 99 pence in the UK.Understand customer’s need: Jollibee in the Philippines, which had a similar business model to McDonald’s, offered adaptation, such as spicy sauces that appealed to the local markets

New strategy to repositioning

Transparency of Preparation• All ingredients for your Sandwich.• Observe every step of preparation• “live preparation”• The nutritional information provided for insight and online

Emotional and psychological items

• The nature color materials: wood tones, brown, green and red• Subway Restaurant surrounding: eating food and fresh food.• Friendly atmosphere and a feeling of trust

US TV Commercial Series “Subway Dinner Theatre”

Three TV spots for three target groups

Three different situations

Three main messages: Value and quality; Subs are easy and fast to get; non-comlexity of eating at a Subway restaurant

The testimonal: Every TV spot has an intro with a well known person who identifies himself with Subway food. At the end of every TV spot he speaks out the Subway Slogan “eat fresh”

Update the stores’ interiors

Open new Subway’s stores in US and abroad

Using the images of fresh tomatoes and other vegetables in New York subways system

Repositioning

At MD the emotional “free like home” and “have fun” messages are dominant.

No transparency of preparation, BUT engagement and friendship giving the customer confidence concerning healthy food.

No direct “fresh” and “healthy” attributes in main advertisement – fact treated as an assumption

Personality & Character

• MD sponsors lots of sports events and charity events

• The engagement in indirect ads for a life style that MD identifies with.

• Meeting point for young people who want to have fun combined with easy and fast food

• Supporting various events MD uses the media to push its image and make the name omnipresent – no chance to escape

Sports & Activities Associates Healthy

Nutrition

“Bag a meal” “Who’s next

basketbal” “Sports” “I am Asian”

Some activities and PR campaigns in 2006

Main Target Group

• Young people

• People at work, health conscious

of Subway

• Children, young people

• People at work, on vacation, eating for fun

Association & Sponsorships

RECOMMENDATION AND RECOMMENDATION AND CONCLUSIONCONCLUSION

• McDonald’s has improved their menus by adding up fresh green salad, which implies healthiness. • Aside from this, they could adapt into the environment where they are in and give out tastes that could relate to different countries.• Fast food industry has to supply various products and they are much more healthy.• Due to fast food, people do not have to spend more as much time on making their own food, doing their taxed or travel.• Fast food companies has been conducting marketing strategy to create new image and reposition for a global future.•Franchise is a global system to build up a global brand in fast food industry.

QuestionDiscussion

Answer: Globalization is the system of

interaction among the countries of the world in order to develop the global economy.

2 main forces are driving it: The development in fast technology Condition of economy.

Answer: Because the global strategies only

focus on enlarging more and more stores over the world, this make a surplus to customer demand while they don’t focus on caring much about the change in eating tendency of customer .

Answer:International Competition. Mergers can help

firms deal with the threat of multinationals and compete on an international scale

Mergers may allow greater investment in R&D This is because the new firm will have more profit. This can lead to a better quality of goods for consumers

Greater Efficiency. Redundancies can be merited if they can be employed more efficiently

Answer: Critical success factors: adapting the strategy to country-

specific situations effectively communicating the brand

across the world (both within and outside the organization).

Successful global e-business brand

Cultural and environmental differences are the main challenges that are faced by international managers in managing and controlling a global marketing strategy. Key words include eating habits, GDP, economic, political situation competition .For example, Different countries have different eating habits . The Chinese have a saying “Good things for breakfast .Eating a big meal for lunch but eating less at dinner.”

Many Americans agree that one should start the day with a good breakfast, but their ideas about lunch and dinner are different.Most Americans only give themselves a short time for lunch . So they eat a small lunch . After work they will have more time to eat a big dinner .Also a quiet dinner at home with all family talking about their day is a way to take a good rest after a long, hard day of work.

The manager must monitor environments which impact consumer behavior very closely, in order to develop forecasts, goals, and plans for international activities .

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