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The Internal And External Environments Of Subway Marketing Essay

The report reveals a brief intro of the Subway sandwich string and concentrates mainly on its marketing strategies and targets. For that it presents an evaluation of its inside and external conditions plus a detailed SWOT research for the business. This consists of an insight into the target market of the company along with the promotion and rates strategies followed by the company so far in order to generate value for its customers. The record ends with a concise affirmation of marketing aims for Subway that it needs to follow in order to achieve its goals.

Subway, the world's number 1 1 sub-marine sandwich franchise of 2011, was began by Fred DeLuca in 1965 to make money for being in a position to pay his medical college's tuition fee. Fred borrowed $1000 from Dr. Peter Buck, a family group friend who down the road became his partner, to open his first sub-marine sandwich shop in Bridgeport, Connecticut. The shop trained him the artwork of doing business combined with the significance of producing high-quality sandwich, great service, low operating costs and location efficiencies.

Fred and Peter broadened their business in 1974 through allowing franchisees to open up Subway franchises and thus making Subway typically the most popular sub-marine sandwich brand. Subway in the beginning offered Submarine sandwiches but slowly but surely broadened its product offerings as it grew. The menus of Subway franchises vary from location to location as it adapts to the ethnic differences and tastes of its aim for consumers.

The report reveals a situational examination of both internal and external conditions of Subway to spotlight the company's target market, its aims, competitive advantages, overall market examination and its marketing strategies. In addition, it presents a rival analysis accompanied by a SWOT examination of the company that indicates the advantages, weaknesses, opportunities and hazards presented by the internal and external surroundings of Subway. Marketing aims will follow the SWOT analysis, laying the building blocks for helping the company meet its goals.

Situation Analysis

Internal Environment

Subway's main objective is to provide its customers with fresh and high quality sandwiches at all times. It also is aimed at creating itself as a fresh and healthy sandwich machine in the junk food industry.


Subway mainly offers in submarine sandwiches that are advertised as healthy and fresh sub-sandwiches. This was what Fred DeLuca began initially when he opened up his first sandwich shop in Bridgeport. The business, however, widened its product offerings with the duration of time and therefore increased its menu from only sandwiches and salads to breakfast time, sandwiches, salads, catering services, espresso, cookies and Kids' dishes.

Promotion, Costing and Placement

Subway has always targeted the top and upper-middle class segments of the marketplace therefore their sandwiches do not come cheap. Among the franchisees, however, set out to increase his franchise's sales and acceptance by offering $5 Foot-long sandwiches that was later implemented by the business as a promotional advertising campaign because of its popularity and also since it brought instant increases in the franchise's sales-volume.

Since Subway has advertised itself as a healthy fast-food string, it ran advertising and campaigns with Jared Fogle, a teenager who lost 245lbs after carrying out a time long Subway sandwich diet, as their spokesperson in order to inspire those who wished to lose their weight and also to boost the market share of the company.

Subway has benefited a lot from its product positioning strategies in which it includes used two of NBC's famous shows namely Chuck (Mel, 2009) and The Biggest Loser (Castillo, 2010) for marketing wherein heroes have been seen craving for and caring the knowledge of eating a Subway sandwich, and consuming it to lose excess weight.

The marketing campaigns of subway have always been successful in promoting the brand as a healthy sandwich producing company. The most important feature of an brand, the logo, helps a firm or venture communicate to its consumers the actual brand is all about. The logo design of subway helps the business convey its purpose of making the consumers know about its healthy sandwiches. The renewable color in the logo of subway represents characteristics, health insurance and environment friendliness. This conveys openly to the consumers that subway sandwiches are more healthy and fresh than its competitors. The white color found in the logo signifies purity and it conveys that subway sandwiches are free of impurities and are thus healthier.

The health advertising campaign of subway is also advertised by the Doctor's Affiliates Inc. and Subway's sponsorship of the North american Heart and soul Association's Start! Heart walk (Subway 2011). This indicates Subway's mission of providing its consumers with fresh and healthy food.

Target Market

The main marketplace of Subway contains young adults varying between the age group of 16 and 39 and belonging to the center and upper category segments of the marketplace (Subway 2011); one, wedded without children and hitched with small children who are usually more health conscious and prefer more healthy food over fattening fast food items.


Subway has always tried out to maximize the value and benefits derived from buying a Subway sandwich. It includes offered fresh, made-to-order sandwiches that are prepared before the customer with the customer giving orders in what he/she would like in the sandwich and what needs to be excluded according to their tastes and choices. This has given additional value to the business enterprise as customers get a feeling of personalization in their sandwiches and therefore helps bring about repeated purchase. It offers its customers a choice of freshly baked bread they can choose from for his or her sandwich and also offers freshly toasted bakery. Subway has its bread manufacturing items and thus can provide a variety of freshly baked breads.

External Environment

The increased understanding about health insurance and safe practices issues has helped Subway gain greater popularity among customers because they are now more alert to healthy and health benefits of Subway sandwiches. The upsurge in the desire to 'live healthy, eat healthy' has also lead to an increase in the sales of Subway as more customers are shifting from fried and fattening burgers to Subway's healthy and newly made sandwiches. It is therefore, understood that any person who is concerned about his/her health would like Subway over another junk food restaurant.


The main competitors of Subway are McDonalds, KFC, Taco Bell, Wendy's, Hardees, Pizza Hut and Long John Silver's.

These companies normally position themselves as providers of appetizing burgers and pizzas not actually paying much heed to the nutritional or health aspects of their food. They focus mainly on the knowledge rather than nutrition and diet requirements of the consumers.


Since Subway is a worldwide franchise, it preserves a constant contact with its franchisees thorough its intranet and has something of electronic transmission of its sales improvements from franchises to head office. Subway also possesses state-of-the-art cooking amounts/ovens which are used in production of its breads and various other elements.

SWOT Analysis


Subway sandwiches are custom-made to match the taste preferences of its customers and develops in them a feeling of liking and attachment with the brand.

Subway chains are wide-spread and have also been termed as the quantity 1 Franchise of 2011 (Subway 2011). Subway has opened up its mini-stores and franchises in parks, clinics, tube stations, institutions and popular shops.

Success stories of people like Jared Fogle have helped the business gain fame on the market and have increased its sales phenomenally.

An increase in the customer awareness regarding health and basic safety has lead to an increase in the reputation of Subway sandwiches and has thus led to a larger market show of Subway as more and more customers are moving from good friend and fattening burgers to Subway's fresh and healthy submarine sandwiches.


One of the major weaknesses of Subway is the independence it has directed at its franchisees in identifying their promotion promotions. This is considered a weakness because this leads to deviation and inconsistency on the list of franchises of Subway and so leading to misunderstandings among customers.

Since franchisees have a certain degree of freedom of preference, they have lead to inconsistency in quality and style as they change from franchise to franchise and thus lead to customer dissatisfaction.


Subway still has a lot to consider because of its customer satisfaction and so should pay more focus on customers in order to get them. This can be done by revamping its stores and designing them, not with subway maps of the united states, but with subway and railway range maps of the countries where it is working to be able to supply the customers a larger sense of affiliation.

Subway still has a major chunk of customers that contain been kept un-tapped. A lot of Muslims reside in the United States but they cannot eat Subway's sandwiches being that they are not Halal. Subway can open up Halal chains in order to attract Muslim consumers.


The main threat experienced by Subway is from its main rivals as they may have increased their efforts to retain their customers and also have also started campaigns to attract more customers, thus, intimidating Subway's market talk about.

Subway is also threatened by the downturn that hit the earth as it offers reduced the purchasing power of its customers.

Marketing Objectives

The main marketing objective of Subway ought to be to attract a larger quantity of customers and this can be done only by increasing advertising attempts. More combo meals should be offered and discount costing should be done in order to draw in customers during non-peak hours. It will seek to improve the demand for its products by doing so. Demand can also be increased by emphasizing more on medical issues and by promoting triggers like anti-obesity promotions. Advertisement promotions should be as regular as possible, differing only to meet the cultural variations of different countries to be able to maintain an as constant image as you can worldwide. Subway should count more on subliminal messaging and really should also start advertising comprehensive videos i. e. by putting your signature on agreements with movie suppliers to advertise Subway sandwiches in films and major TV shows.

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