COLLEGE OF BUSINESS ADMINISTRATION

MANAGEMENT AND MARKETING DEPARTMENT

Essentials of Marketing
Final Output: A Marketing Plan of Subway

Submitted to:
Dr. Lynn B. Garcia-Fufugal

Submitted by:
Biscocho, Ivan Joseph G.

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 Table of Contents

I. Executive Summary……………………………………………………………………….. 3

Vision Statement…. . .……………………………………………………….……...……….

Mission Statement . . .……………………………………………………….…...…………..

4

II. Situational Analysis …. . ……………………………………………………………………

4

Market Environment ….. . .……………………………………………………………………

4

SWOT Analysis ………………………………………………….……......…….................... 5

Target Market ……………….........………………………………………….………....……. 6

Marketing Goals/Objectives …………………………….…………………………….......... 6

III. Marketing Strategies and Marketing Mix

Product …….…………………………….………………………..…….………………..…7

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 Place …………………………….………………………………..……………………….. 7

Price ……………………….………………………………..……………………… ..…… 8

Promotion ……………….………………………………..………………………………... 9

IV. Marketing Implementation……………………………………………….…………….......10

Activities, Responsibility, And Timetables for Completion…………….…………………11

V. Monitoring and controlling …………………………………………………………..........11

Bibliography ........................................................................................................................ 13

SUBWAY MARKETING PLAN

I. Executive Summary:

Subway is the face of “healthy fast food eating”. Subway started 43 years ago as the rise of fast

food has taken the United States and other countries by storm. This has left many Healthy

Conscious Americans wondering if there is a healthier alternative to fast food. The fast food sub

sandwiches offered a variety of healthy and fresh everyday meals for people who want to eat

healthy and at the same time not consume that much time. Subway has become a big hit in busy

cities like New York and Los Angeles for its capability to provide healthy foods in one go. The

sub sandwiches don't just help Americans deal with obesity but also helps them to be conscious

about what they're eating and its different nutrients. Unlike any fast food chains, Subway has

always been a part of health campaigns such as transformation of obese people featured in their

commercials.

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A. Mission Statement:

The fast food subway goes by the saying “Eat Fresh” and to “delight every customer so that

they want to tell their friends – with great value through fresh, delicious, made-to order

sandwiches, and an exceptional experience. “This statement or motto is a marketing strategy for

people to eat what they want and at the same time not feel guilty about what they are eating. The

sub sandwiches are at great value with fresh and quality ingredients. This has made subway rise

amongst its fast food competitors knowing that even their buns are fresh unlike the ones bought

at a typical fast food place.

B. Corporate Goals and objectives:

The main objective of our products and services is to provide customers satisfaction by

giving them a wide range of products and services and giving them an option to customize their

purchase until they reach the level of satisfaction while we ensure them Food safety and quality.

Another one of our objectives is to give them healthy balanced meals to give them health

benefits in the future especially in our current situation. Our goal is to become a world leading

fast food restaurant while providing them our tasty, healthy, and affordable products.

Star Software, Inc., is in the business of helping other companies market their products

and/or services. Besides formulating a marketing-oriented and customer-focused mission

statement, Star Software should establish an objective to achieve cumulative growth in net profit

of at least 50 percent over the next five years. At least half of this 50 percent growth should come

from new, nonmanufacturing customers and from products that are nonseasonal or that are

generally delivered in the off-peak period of the calendar cycle.

To accomplish its marketing objectives, Star Software should develop bench marks to

measure progress. Regular reviews of these objectives will provide feedback and possible

corrective actions on a timely basis. The major marketing objective is to gain a better

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understanding of the needs and satisfaction of current customers. Since Star Software is

benefiting from a 90 percent reorder rate, it must be satisfying its current customers. Star could

use the knowledge of its successes with current clients to market to new customers. To capitalize

on its success with current clients, benchmarks should be established to learn how Star can

improve the products it now offers through knowledge of its clients’ needs and specific

opportunities for new product offerings. These benchmarks should be determined through

marketing research and Star’s marketing information system. Another objective should be to

analyze the billing cycle Star now uses to determine if there are ways to bill accounts receivable

in a more evenly distributed manner throughout the year. Alternatively, repeat customers might

be willing to place orders at off-peak cycles in return for discounts or added customer services.

Star Software also should create new products that can utilize its current equipment, technology,

and knowledge base. It should conduct simple research and analyses of similar products or

product lines with an eye toward developing specialty advertising products that are software

based but not necessarily calendar related.

II. Situational Analysis:

Subway is a healthier fast-food alternative and it is looking to expand its influence on the

Filipino market. To provide satisfaction and new food cuisine in the local country:

A. Market Environment

This section considers relevant external environmental forces such as competitive,

economic, political, legal and regulatory, technological, and sociocultural forces.

1. Competitive forces

The competition in the specialty advertising industry is very strong on a local and

regional basis but somewhat weak nationally. Sales figures for the industry as a whole are

difficult to obtain since very little business is conducted on a national scale.

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 The competition within the calendar industry is strong in the paper segment and

weak in the software-based segment. Currently paper calendars hold a dominant market

share of approximately 90 percent; however, the software-based segment is growing

rapidly. The 10 percent market share held by software-based calendars is divided among

many different firms. Star Software, which holds 30 percent of the software-based calendar

market, is the only company that markets a software-based calendar on a national basis. As

software-based calendars become more popular, additional competition is expected to enter

the market.

2. Economic forces

Nationwide, many companies have reduced their overall promotion budgets as they

face the need to cut expenses. However, most of these reductions have occurred in the

budgets for mass media advertising (television, magazines, newspapers). While overall

promotion budgets are shrinking, many companies are diverting a larger percentage of their

budgets to sales promotion and specialty advertising. This trend is expected to continue as a

weak, slow growth economy forces most companies to focus more on the “value” they

receive from their promotion dollar. Specialty advertising, such as can be done with a

software-based calendar, provides this value.

3. Political forces

There are no expected political influences or events that could affect the operations of

Star Software.

4. Legal and regulatory forces

In recent years, more attention has been paid to “junk mail.” A large percentage of

specialty advertising products are distributed by mail, and some of these products are

considered “junk.” Although this label is attached to the type of products Star Software

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 makes, the problem of junk mail falls on the clients of Star Software and not on the

company itself. While legislation may be introduced to curb the tide of advertising

delivered through the mail, the fact that more companies are diverting their promotion

dollars to specialty advertising indicates that most companies do not fear the potential for

increased legislation.

5. Technological forces

A major emerging technological trend involves personal information managers

(PIMs), or personal digital assistants (PDAs). A PDA is a handheld device, similar in size

to a large calculator, that can store a wide variety of information, including personal notes,

addresses, and a calendar. Some PDAs even have the ability to fax letters via microwave

communication. As this trend continues, current software-based calendar products may

have to be adapted to match the new technology.

6. Sociocultural forces

In today’s society, consumers have less time for work or leisure. The hallmarks of

today’s successful products are convenience and ease of use. In short, if the product does

not save time and is not easy to use, consumers will simply ignore it. Software-based

calendars fit this consumer need quite well. A software-based calendar also fits in with

other societal trends: a move to a paperless society, the need to automate repetitive tasks,

and the growing dependence on computers, for example.

B. SWOT Analysis: (with table presentation – see example of Starbucks SWOT below)

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1. Strength:

Subway has a cheap start-up cost. This means it requires less money when it comes to

supplies and equipment. Wide variety of customization. This means customers can customize

their purchase until they are satisfied. Option for healthier meals. This means customers with

health anxiety do not have to worry about their purchase because of their freedom to customize

their purchase.

2. Weakness:

Subway franchises have a possibility to have inconsistent service. Due to numerous

franchises owned by the business, we cannot ensure the consistency of our services and the

satisfaction of our customers. Has bigger competitors in the marketing environment. There are

competitors who have bigger brand value than our brand. Low-cost restaurants. This affects the

customers’

satisfaction and attention

3. Opportunity:

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 Increase in demand for healthier products. Due to the current situation of our environment,

customers tend to be healthier to increase their immunity to illnesses. Launch of drive-thru in

franchises. This will possibly increase our sales by adding this service to attract customers who

are on the wheels.

4. Threats:

Main threats are the major fast-food chains in the Philippines that offer a more budget and

Filipino friendly foods. Just like Mang Inasal, Jollibee, KFC and Etc. The threat also is the

Filipino Tradition of eating Rice and unhealthy fast-food habits. Another threat is the change of

demand in the market. In the Philippines, consumers might prefer other meals other than our

product. This happens quite frequently because of trends.

5. Matching Strengths to Opportunities/ Converting Weaknesses and Threats

During the development of a marketing plan, marketers attempt to match internal strengths

to external opportunities. In addition, they try to convert internal weaknesses into strengths and

external threats into opportunities.

1. The acceptance of technological advances and the desire to control time create a

potential need for a computer-based calendar.

2. Star Software has more opportunity for business growth during its peak season than it

can presently handle because of resource (human and capital) constraints.

3. Star Software must modify its management hierarchy, empowering its employees

through a more decentralized marketing organization.

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 4. Star Software should discuss future growth strategies with its supplier and develop

contingency plans to deal with unforeseen events. Possible satellite facilities in other

geographic locations should be explored.

5. Star Software should consider diversifying its product line to satisfy new market

niches and develop nonseasonal products.

6. Star Software should consider surveying its current customers and its customers’

clients to gain a better understanding of their changing needs and desires.

C. Target Market:

The ideal customers are between the ages 18 to 50. They are the chosen target market age

because they are the people who are in favor of eating healthy foods, because we all know that

children hate vegetables, they cannot appreciate subway foods. Mostly people that are working

and in the middle class.

D. Marketing Objectives:

Star Software’s marketing objectives include increases in both revenues and profits of

approximately 10 percent over the previous year. Revenues should exceed $4 million, and

profits are expected to reach $1.3 million.

III. Marketing Strategies and Marketing Mix:

MARKETING MIX:

1. Product

Subway will create a new type of product that is suitable for ages 18 below. The product

we want to create is to encourage the younger generations to start eating healthy while they

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 enjoy the taste of our product. With this style of eating our product will be advertised to both

parents and children. In this way subway products will be viewed as a more suitable product

this pandemic since it provides healthy alternatives to your often fast food deals. Subway will

also promote toy collectibles for children to attract more children and by doing this will help

catch their attention.

Subway will also create a rice meal promotion that includes fresh whole grain rice like brown

rice and red rice to healthier eating. In this way Filipinos will fill their rice cravings. We will

come up with a meal that will be more affordable and tastier that will satisfy the local

customers while also maintaining the option to customize the ingredients.

Marketing Strategy for Product:

To gain competitive advantage, we will obviously keep our ingredients fresh in our new

products so our customers will realize our quality to ensure them satisfaction. We will add new

ingredients in our business that are famous from our cuisine. We will add more than 1 ingredient

so that we can keep the freedom of meal customization in our new products. For our rice meal,

we will add a healthier choice of ingredients like brown rice to keep our mission and tagline true.

2. Place

Subway has approximately 44,000+ franchises over 112 countries. It can be found in the

countries in which it operates. They are commonly found in airports, shopping malls, theme

parks, business centres, etc. The restaurant website has a section called “Find our shops” where

you can enter your zip address, country or city name and browse. Soon you will find your nearest

Subway restaurant. Most of the Subway restaurants provide both food and take-away facilities.

The restaurant also provides home delivery services in some countries. It is also located in some

premium areas where consumers are more mindful of calories. The Philippines only has a total of

11 branches of Subway. In which we will continue to expand by the means of advertising.

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Marketing Strategy for Place:

Subway uses direct marketing strategies as it deals directly with its customers. Although

Subway’s product is good for shopping, it uses selective distribution. We will have to start

selling our new products on selected branches. For our rice meals, we will start adding our new

products in the

Philippines’ 11 total branches since the demand of rice meals in the local country is very high.

There may also be other countries that have high demand in rice meals so if we notice that the

sales of our new product in the Philippines is successful, we will extend the availability of our

rice meals to other parts of Asia that currently have our branches.

3. Price:

Subway sub-sandwiches are not convenient in terms of the Filipino Pricing. A subway

sandwich will cost around 49-250. A full on subway sandwich rice meal will cost around 120250

which is a little pricey for Filipinos. The sandwiches reflect the price on its quality and fresh

ingredients. It might be average to middle class Filipinos but for it to be introduced to a bigger

market subway needs to lower their price in a reasonable and durable amount.

Marketing Strategy for Price:

Subway sandwiches have always been at the top of their quality in terms of ingredients

and service at a fair price. The pricing method will be based on Value-Based Pricing, the product

will make sure that it gives the customer the tasty satisfaction that they need to perform

throughout the day. The product will ensure that no customer will feel that the product is

overpriced and that their money is well spent on a good quality balanced food. In terms of

discounts and promos,

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Subway will offer different promos on days like for “Two for 200 Tuesdays” and other special

offers during holidays and occasionally during the time where many people go out to eat. The

pricing method will be based on Value- based Pricing, the product will make sure that it is a

good combination of quality, good performance and service at a fair price. The product will

ensure that the customer will have the most benefit to make sure that their money is spent on a

good cause. This way it will build customer satisfaction, loyalty and customer value will be

delivered. In terms of discounts and promo pricing, it will be done occasionally, there will be

special offers during some sale periods, like “Buy one and 50% on the second one”, Raffle

promos during the opening or the holiday season. This way it encourages customers that the

product is worth buying. This will increase sales and it could attract possible customers. In the

future the company will use different Psychological Pricing techniques so the customers are still

engaged in purchasing the product.

4. Promotion:

Subway will use the slogan "Start em' young. Start Clean Eating. Start going to subway”

This will encourage customers, specifically parents to start their children to eat healthy by

introducing them to healthier alternatives. Subway will provide commercials and advertisement

where the scenario will be a “Good Parent, chooses subway”. This type of advertisement

encourages children and parents in order to eat since its pandemic. The Promotion of our product

would just basically Filipinos being in a healthy shape and at the same time filling up their

satisfaction taste.

Marketing Strategy for Promotion:

One of the main strategies of business to attract their customers is advertising. Subway

uses traditional and modern media to advertise their goods. They use conventional media,

including television and radio ads. This is beneficial because of its wide scope and potential to
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draw a large number of people. Subway also uses online and social media ads, which is effective

and more beneficial due to the growing use of the Internet. Subway advertises on different social

media sites such as YouTube, Facebook, and Twitter due to high monthly use. It has more than

one hundred thousand likes or customers on these accounts, which are exposed to the regular

content posted by them. They are also particular in advertising in K-drama Series, which

celebrities use to eat in Subway in the Drama. It also goes into personal purchases, with a broad

Salesforce to boost its presence in retail stores. They use a percentage of the revenue system to

calculate the budget of promotions for the year.

IV. MARKETING IMPLEMENTION

This component of the marketing plan outlines the specific activities required to

implement the marketing plan, who is responsible for performing these activities, and when

these activities should be accomplished based on a specified schedule.

A. Activities, Responsibility, and Timetables for Completion

All implementation activities are to begin at the start of the next fiscal year on

April 1. Unless specified, all activities are the responsibility of Star Software’s next

president, Jonathan McLemore.

 On April 1, create four sales manager positions and the position of marketing

director. The marketing director will serve as project leader of a new business

analysis team, to be composed of nine employees from a variety of positions within

the company.

 By April 15, assign three members of the analysis team to each of the following

projects: (1) research potential new product offerings and clients, (2) analyze the

current billing cycle and billing practices, and (3) design a customer survey project.

The marketing director is responsible.

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  By June 30, the three project groups will report the results of their analyses. The full

business analysis team will review all recommendations.

 By July 31, develop a marketing information system to monitor client reorder

patterns and customer satisfaction.

V. MONITORING AND CONTROLLING:

In Monitoring and controlling the customers, we will decide how to evaluate our

customers. First, we will observe the competitor’s strategy including the fast foods that have

come before us. This will help us improve on how they handled Filipino culture and make some

more useful and effective strategies. We will monitor our progress to help us realize how we

perform in the market. Observation of our sales must be performed. This will help us know if

our plan is effective or not. It is also important to know the feedback of our customers. This

method will help us identify the room for improvement of our products and services.

Developing future plans for our product’s improvement and effectiveness will help us in the

future situations especially if we are trying to adapt to Filipino culture. Market research, by

asking our customers about the effectiveness of our plan, this will help us create better

marketing plans in the future. If possible, we would like to create a survey based on the current

situation so that we can identify the demand and needs of local culture for us to improve our

products.

VI. Distribution Plan

Subway provides mass marketing; therefore, we are planning to do the Intensive

Distribution strategy. We would like to distribute our new adaptive products in as many outlets

as possible. Since we have a minimum number of outlets in the Philippines, we came up with

this distribution strategy to increase our sales. Due to the current situation, we have provided an

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app that gives access to a new distribution strategy. Our app let’s our customers purchase our

products without going to any of our outlets by delivering their orders which benefits both us

and the customers. Our app also has the feature to measure the calories of their order so health

conscious customers do not have to worry about their purchase. To increase this distribution

strategy, we are authorized to sell our products in Grab food and Food Panda in order for us to

maximize the distribution of our products in this current situation. We also have a landline

number for the customers who have not downloaded any of the apps that support the online

delivery feature.

VII. Bibliography

“Jurevicius, O. (2013, February 16). Subway SWOT analysis 2013.

https://strategicmanagementinsight.com/swot-analyses/subway-swot-analysis.html.”

“Subway. History. https://www.subway.com/en-US/AboutUs/History.”

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“Smith, D. L. (2019, January 25). 10 Best Subway Sandwich Tips.
https://www.eatthis.com/best-subway-sandwich-tips/.”

Rubrics

Does not meet Below Meets Exceeds

CRITERIA expectation expectation expectation expectation Grade
(1) (2) (3) (4)

Contains all
relevant topics Contains all Lacking some Lacking most
Contents (40%) with additional relevant topics important topic important topic
38

significant discussions discussions

discussions
Students possess Students possess Students possess Students
extensive adequate some only
knowledge about knowledge knowledge possess shallow
the topic research about the topic about the topic knowledge about 27
and were able to research and were research and the the topic and
Data
exceed the able to meet the student failed to failed to
Presentations expectations of discuss some
expectation of the meet the
(30%) the faculty important
faculty member expectations of the
during topic member during matters from the faculty
topic student during
presentation. topic member during
presentation. topic presentation.
presentation.
Time Prior to the date On the date of 1-2 days after Beyond 2 days
Submission of deadline of Submission the deadline of after the deadline
20
(20%) submission Submission of submission
Documentation Printouts are not Printouts are Printouts are Printouts are
(10%) organized; with partially organized highly highly organized
missing with missing organized with with additional
information required 8
information supporting
information information
TOTAL
93

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