Subway Swot Analysis
Strengths
Brand Recognition: Subway Restaurants are one of the leading submarine sandwich franchises based in the United States. Today Subway has brand recognition in over ninety-two countries having over 33,246 restaurants all over the world. Subway has well established itself as a brand in the fast food industry as one of the healthiest—if not the healthiest fast food restaurants in the United States. Subway is known as a company that offers healthy sandwiches that are much better compared to other food items offered by other fast food chains, such as McDonalds and Burger King. “They have been rated repeatedly as a No. 1 franchise opportunity and DeLuca says that is due to Subway's pledge to build relationships, set goals and listen to customers” (Stover).
Marketing Strategies: The marketing and promotional strategies used by Subway further add to the strengths of the company. “In recent years, Subway may best be known for Jared, the advertising face of Subway who lost a great deal of weight, it is said, by eating healthy at Subway Sandwich Shops. In fact, Subway and Jared have now teamed up with the government to fight childhood obesity, opening another page in Subway history” (Stover). The company has also partnered with the American Heart Association to further its image. The effectiveness of this health-oriented campaign is an important part of Subway’s advertising, especially with a large amount of the population in America concerned with obesity. Subway has gained a reputation as a relatively healthy choice in comparison to all of the major fast food chains. At very least, although other companies may offer healthy options, Subway has earned a great reputation of providing healthy fast food meals to the consumer.
Affordability: The Company has altered its advertising schemes, menus, and prices for the average day to day person. When one hears Subway, healthy affordable food comes to mind. The five dollar foot longs quickly became one of the company’s best promotional items to date. “Despite the recession, Subway restaurant sales were up 17% last year – thanks in large part to its $5 meal promotions” (McCarty). With smart advertising schemes Subway is going against the turn of the economy and still growing.
Weaknesses
Inconsistency of Food: Consumer reviews have revealed that quality of food in certain franchises are not as good as others, hence there is inconsistent quality of food when it comes to Subway. Therefore the satisfaction level of the customers is not the same across franchises and also some franchises perform very poor.
No Diversification: One of Subways greatest weaknesses is in its menu. There is no variety in the food that is provided to the consumer.
Décor: The decoration and look of the franchises is said to be old an outdated look.
Opportunities
Promotions: Advertising plays an important part in the success of any business and Subway is no exception. Subway could continue with the great promotions, like the five dollar foot longs, and could also add new, different promotions to attract customers.
Menu: Change is good, so in order to increase business Subway has recently added a breakfast menu and increased hours of operations. However, Subway could try to add more variety to their menu but still keeping the food offered healthy and fresh.
Drive-thru: Subway is one of the fast food restaurants that do not offer a drive thru. People who are in a rush and don’t have time to enter the restaurant would prefer to go to places that offer a drive-thru. If Subway were to invest in opening up a drive thru, it could potentially attract even more consumers. Advertisement: Most of Subway’s advertising is done through television. Even though this is an effective method, Subway could try to expand their advertising through the internet, newspapers, and magazines (Advertising). Location: Although, Subway is seen in over 92 countries, it is still continuing to expand its franchise throughout the world. Opportunities for expansion, development and growth of the Subway franchise exist (Location). “As we continue to grow, we are guided by a passion for delighting customers by serving fresh, delicious, made-to-order sandwiches” (Franchisee).
Threats
Competitors: Competition is growing not just from other submarine sandwich places, but from numerous other sources. In light of the recent health conscious Americans, McDonalds, Burger King and other fast food places are experimenting with placing more options for healthier eating on their menus.
Economy: The recent downturn of the economy will directly affects the consumption and spending power of the consumers. People just don’t have money to spend on fast food anymore, no matter how good the deals and promotions are.
Quality: There are controversies with the quality of their breads and the size of their breads not being as large as advertised. A large company like Subway or any other fast food restaurant is bound to receive its fair share of criticism. However the company has adjusted itself to try to meet all issues and needs of the consumer as best as possible.
Literature Review: http://www.ehow.com/about_5101686_history-subway-sandwiches.html. http://www.subway.com/subwayroot/Development/locationOpps/index.aspx http://www.adbrands.net/us/subway_us.htm http://ezinearticles.com/?Fast-Food-Market-Forecast---The-Subway-Example-of-Strategic-Product-Positioning&id=735770
http://en.wikipedia.org/wiki/Subway_(restaurant)#Advertising
Brand Recognition: Subway Restaurants are one of the leading submarine sandwich franchises based in the United States. Today Subway has brand recognition in over ninety-two countries having over 33,246 restaurants all over the world. Subway has well established itself as a brand in the fast food industry as one of the healthiest—if not the healthiest fast food restaurants in the United States. Subway is known as a company that offers healthy sandwiches that are much better compared to other food items offered by other fast food chains, such as McDonalds and Burger King. “They have been rated repeatedly as a No. 1 franchise opportunity and DeLuca says that is due to Subway's pledge to build relationships, set goals and listen to customers” (Stover).
Marketing Strategies: The marketing and promotional strategies used by Subway further add to the strengths of the company. “In recent years, Subway may best be known for Jared, the advertising face of Subway who lost a great deal of weight, it is said, by eating healthy at Subway Sandwich Shops. In fact, Subway and Jared have now teamed up with the government to fight childhood obesity, opening another page in Subway history” (Stover). The company has also partnered with the American Heart Association to further its image. The effectiveness of this health-oriented campaign is an important part of Subway’s advertising, especially with a large amount of the population in America concerned with obesity. Subway has gained a reputation as a relatively healthy choice in comparison to all of the major fast food chains. At very least, although other companies may offer healthy options, Subway has earned a great reputation of providing healthy fast food meals to the consumer.
Affordability: The Company has altered its advertising schemes, menus, and prices for the average day to day person. When one hears Subway, healthy affordable food comes to mind. The five dollar foot longs quickly became one of the company’s best promotional items to date. “Despite the recession, Subway restaurant sales were up 17% last year – thanks in large part to its $5 meal promotions” (McCarty). With smart advertising schemes Subway is going against the turn of the economy and still growing.
Weaknesses
Inconsistency of Food: Consumer reviews have revealed that quality of food in certain franchises are not as good as others, hence there is inconsistent quality of food when it comes to Subway. Therefore the satisfaction level of the customers is not the same across franchises and also some franchises perform very poor.
No Diversification: One of Subways greatest weaknesses is in its menu. There is no variety in the food that is provided to the consumer.
Décor: The decoration and look of the franchises is said to be old an outdated look.
Opportunities
Promotions: Advertising plays an important part in the success of any business and Subway is no exception. Subway could continue with the great promotions, like the five dollar foot longs, and could also add new, different promotions to attract customers.
Menu: Change is good, so in order to increase business Subway has recently added a breakfast menu and increased hours of operations. However, Subway could try to add more variety to their menu but still keeping the food offered healthy and fresh.
Drive-thru: Subway is one of the fast food restaurants that do not offer a drive thru. People who are in a rush and don’t have time to enter the restaurant would prefer to go to places that offer a drive-thru. If Subway were to invest in opening up a drive thru, it could potentially attract even more consumers. Advertisement: Most of Subway’s advertising is done through television. Even though this is an effective method, Subway could try to expand their advertising through the internet, newspapers, and magazines (Advertising). Location: Although, Subway is seen in over 92 countries, it is still continuing to expand its franchise throughout the world. Opportunities for expansion, development and growth of the Subway franchise exist (Location). “As we continue to grow, we are guided by a passion for delighting customers by serving fresh, delicious, made-to-order sandwiches” (Franchisee).
Threats
Competitors: Competition is growing not just from other submarine sandwich places, but from numerous other sources. In light of the recent health conscious Americans, McDonalds, Burger King and other fast food places are experimenting with placing more options for healthier eating on their menus.
Economy: The recent downturn of the economy will directly affects the consumption and spending power of the consumers. People just don’t have money to spend on fast food anymore, no matter how good the deals and promotions are.
Quality: There are controversies with the quality of their breads and the size of their breads not being as large as advertised. A large company like Subway or any other fast food restaurant is bound to receive its fair share of criticism. However the company has adjusted itself to try to meet all issues and needs of the consumer as best as possible.
Literature Review: http://www.ehow.com/about_5101686_history-subway-sandwiches.html. http://www.subway.com/subwayroot/Development/locationOpps/index.aspx http://www.adbrands.net/us/subway_us.htm http://ezinearticles.com/?Fast-Food-Market-Forecast---The-Subway-Example-of-Strategic-Product-Positioning&id=735770
http://en.wikipedia.org/wiki/Subway_(restaurant)#Advertising