Why Subway Is Not Popular in China
1. Introduction
2.1 Relevant background
Since the Subway restaurant chain started in 1965, it has opened more than 30,000 stores in 87 countries during the past 40 years. In Western countries, Subway is very popular and famous for its “stylish and nutritious” concept. More importantly, Subway brings the idea of health into the fast food industry. Because of the nutritious sandwiches and low fat ingredients, Subway receives considerable acclaim in Europe and America. Moreover, some professional magazines pay many honours to Subway, such as America's Top Global Franchise” in 2009 and “Annual Franchise 500® listing” for 16 of the past 22 years.（Subway Chain Fact, 2006）However, in Chinese market, the development of Subway has not gone well.
2.2 Rationale
The Subway restaurant chain entered into Chinese market more than 10 years ago. Although it has opened at least 100 stores in many cities in 2008, it is surprising to find that Subway is still not popular among the Chinese customers, even a number of people have never seen or heard about it. Subway as the largest submarine sandwich franchise in the world is always insisting on nutrition of fast food, which meets the need of customers who emphasize on the importance of heath and attach importance to saving time. It is a phenomenon deserving of investigating carefully why Subway is not very popular in China.
1.3 Brief Literature Review
Most individuals point out that China is a special and huge market. Meanwhile, they also agree that some marketing strategies should be changed when the global brands expand in china market. Ambler, Wizel and Xi (2009) advised that foreign companies need to adapt to “Chinese characteristics” or “the special situation in China” in order to reach Chinese consumers. Therefore, this literature review mainly focuses on the importance of product, price, promotion and advertisement in China.
According to a market survey conducted by Bennett (1998), compared with
2.1 Relevant background
Since the Subway restaurant chain started in 1965, it has opened more than 30,000 stores in 87 countries during the past 40 years. In Western countries, Subway is very popular and famous for its “stylish and nutritious” concept. More importantly, Subway brings the idea of health into the fast food industry. Because of the nutritious sandwiches and low fat ingredients, Subway receives considerable acclaim in Europe and America. Moreover, some professional magazines pay many honours to Subway, such as America's Top Global Franchise” in 2009 and “Annual Franchise 500® listing” for 16 of the past 22 years.（Subway Chain Fact, 2006）However, in Chinese market, the development of Subway has not gone well.
2.2 Rationale
The Subway restaurant chain entered into Chinese market more than 10 years ago. Although it has opened at least 100 stores in many cities in 2008, it is surprising to find that Subway is still not popular among the Chinese customers, even a number of people have never seen or heard about it. Subway as the largest submarine sandwich franchise in the world is always insisting on nutrition of fast food, which meets the need of customers who emphasize on the importance of heath and attach importance to saving time. It is a phenomenon deserving of investigating carefully why Subway is not very popular in China.
1.3 Brief Literature Review
Most individuals point out that China is a special and huge market. Meanwhile, they also agree that some marketing strategies should be changed when the global brands expand in china market. Ambler, Wizel and Xi (2009) advised that foreign companies need to adapt to “Chinese characteristics” or “the special situation in China” in order to reach Chinese consumers. Therefore, this literature review mainly focuses on the importance of product, price, promotion and advertisement in China.
According to a market survey conducted by Bennett (1998), compared with
References: Ambler, T. Witzel, M. Xi, C. (2009). Doing Business in China. New York: Routledge Bennett, R Doctoroff, T. (2005). Billions: Selling to the new Chinese Consumer. New York: Palgrave Macmillan. Dommermuth, W.P. (1989). Promotion Analysis, Creativity and Strategy. Boston: PWS-KENT Proctor,T.(2003) Subway Chain Facts. (2006). Retrieved February, 2006, from Subway Website.