This paper has focused on Subway’s marketing plan and how it can improve its sales across the world. The paper entails segmentation of Subway, Market research methods, marketing mix, marketing strategy and control of the market plan. Subway is a fast growing company and the marketing plan which has been studied will be of great importance.
The firm’s mission and vision should be converted to tangible entity. Examples of objectives would include increase of product awareness among the customers, emphasize on features and benefits, and remove resistance from buyers. The objectives should be consistent and not conflicting with one another.
Marketing Research and CRM
There are many ways by which organizations conduct market research but most companies use one of these five methods:
- Focus Group: - In a focus group there is a moderator who makes use of written down questions and head a discussion within a group of people. These series of discussions normally take place at neutral grounds and lasts for only two hours while only three groups of people are surveyed.
- Personal interviews: - These interviews comprise of unstructured questions which are open ended and are conducted to individuals. The answers are normally recorded.
- Observation: - This is done through recording or writing down the customers behaviors on certain products and their response to the same. Observation method gives an accurate and precise situation analysis. Subway can use this method especially while launching a new product or when checking a non profit making product. Customers are able to give direct reasons for buying or not buying a certain product.
- Field Trials: -This is where a company places a certain product to the market for trials in order to observe the reaction of customers to the product. In this method there is room for modification of the product. For instance Subways can introduce a new dish and test it through this method; it also helps in customer relationship since customers say what should be added to the product.
- Surveys: - In this method concise and precise questioners are analyzed where a certain sample group has been sampled. The sample group represents the target market. Subway can make use of this method and specifically the internet survey; this method saves the cost of marketing.
The buyers in this group normally recognize the problem. This means that thy must be aware that they need the product. After recognition they do a thorough search of the product .This process makes them to have alternatives if what they get is not satisfactory. After searching, customers evaluate the alternatives they have in order to choose the best. This group of people since they are between the ages of 18-39 they tend to be very choosy. After a positive evaluation they make the purchasing decision. This is the important part where they make the final purchase and after purchasing they normally make after purchase decision in order to see whether they have made the correct decision.
The marketing mix (7ps) strategy
These describe the sets of decisions that a company must implement to enhance the marketing strategy. It has price, product, promotion, place, process, physical evidence and people. This is the best marketing strategy that can be used by Subway restaurant since it takes care of a wide range of issues.
In this product life cycle, many things come into play; the product enters in the market: the sales of the product increase gradually due to prices or the taste of people. In the maturity stage the prices might be lowered due to mass production and competition. Finally, the product reaches the saturation stage where the prices are counter optimal. In this stage, sales decline thus making profits to be a challenge.
Subway offers different services into the market this has been influenced by varied factors and attributes which are under the target market. In this case many attributes influence the segmentation of the market by subway. Before one can focus on segmentation it is important to know what is being provided by Subway and what the customer is considering. Strategies of segmentation can be described more appropriately using different variables which eventually result to marketing segmentation. In marketing strategies different segmentations are used such as behavioral, democratic, psychographic and geographic.
Geographic orientation divides the market into different units as nations, provinces. This way the company can deal with specific branches with use of localized machinery. In this segmentation strategy a company normally puts its products according to groups in geographical areas which have people with varied behaviors and characters. The subway company sells worldwide burgers aimed at private markets such as in Asia, Europe and United States of America. For instance, subway has recognized that Americans like chilly and therefore its products which have this recipe are normally targeted in that market.
Demographic segmentation puts users under age, gender, levels of income and education together. In subway, the demographic segmentation is deeply in age groups specifically between 18- 39.This age group has been targeted by sub way since most of the people there are either working or studying. In this case a company is able to study products according to certain age groups. Therefore, this type of segmentation promotes products which are of interest to certain age groups.
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Psychographic segmentation divides the market on basis of social class, personality, attitudes and traits. What customers look in this type of segmentation is a product that is cheap in terms of cost and suits the economy of many students who are in college. Here what people buy reflect their styles.
Behavioral divides the market on basis of knowledge and attitudes towards the use of a particular product. This mode of segmentation is based on the different responses by customers which are normally generated after the uses or sampling of the product. Occasions, benefits, user status, usage ratio, buyers readiness as well as loyalty status. It is a type of segmentation which is directly related towards a customers’ attitude in a particular product. Furthermore, it also has a relationship with what the customer is benefiting from, the demand is not constant and it is dependent on certain variables.
Positioning will help Subway to create a marketing mix for each segment. This is achievable through articulation of the company’s value of product with respect to customer needs. In broader term it means offering the products that find more use with a certain segment and are more popular.
These describe the sets of decisions that a company must implement to enhance the marketing strategy. It has price, product, promotion, place, process, physical evidence and people.
Pricing is putting a price tag on an item and it is supposed to reflect return on investment. It can be due maximize profit or promote the products. It can also be used for segmentation where it has to match a certain segment. It can be cost oriented whereby the cost of production has a direct impact on price. Demand orientation determines price according to the demand in the market, it is reasonable in that it generates and sustains profit. Customer orientation looks at the income and the capability of the customer to buy goods. In competitor based pricing, prices are set above below or at par with the competition.
Product is the physical product that is tangible as well as the services. Here, brand name, styling, quality, health safety and support are considered. Food products have to totally be attractive and the brand should give a title that is recognizable and sells easily. The quality of foods produced should be high to create value for the customer.
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Place involves the placing of the goods. Factors to be considered are the channels of distribution used and extent of coverage, issues to do with restaurant, distribution centers, transportation and reverse logistics.
Promotion represents the aspects of marketing that communicates about the product with a goal of positive response, pull and push strategies, personal selling, advertising media, public relations and publicity and budget of marketing. It can also involve teaming up with other companies, products or services that one is compatible with and are not their competitors.
People represent recruiting of appropriate staff as well as training them in delivery of services. They enhance better service and interaction. It is appropriate to hire people who are qualified for the positions.
Processes are the systems used to deliver the offers. They enhance effective service delivery and physical evidence is where the service is being offered .A restaurant is expected to be clean and friendly environment. Customers make perceptions based on the sight of the service
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Every leader in the marketing world is always faced with challenges that would jeopardize the performance of the company for a long time. Sometimes measures to counteract such a situation are made without having proper view and understanding of the situation. Through the production of quality foods and better brands Subway will be able to be well established in the market.