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    Subway Case Study

    Uploaded by

    Shobhita Agarwal
    The chairman of Subway says they prioritize quality and service, but cannot directly oversee all franchise locations daily. Therefore, they use a franchise model where franchisees are responsible for opening and operating locations independently. While this allows for growth, it risks inconsistent quality if franchisees cut corners. The document discusses Subway adopting a 15% higher pricing strategy in India compared to competitors. This is appropriate for India's evolving consumer market, as incomes are rising and exposure to Western lifestyles is increasing demand for branded fast food. Subway positions itself as a healthy food option, justifying slightly higher prices for health-conscious Indian consumers.

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    Subway Case Study

    Uploaded by

    Shobhita Agarwal
    122 views1 page
    The chairman of Subway says they prioritize quality and service, but cannot directly oversee all franchise locations daily. Therefore, they use a franchise model where franchisees are responsible for opening and operating locations independently. While this allows for growth, it risks inconsistent quality if franchisees cut corners. The document discusses Subway adopting a 15% higher pricing strategy in India compared to competitors. This is appropriate for India's evolving consumer market, as incomes are rising and exposure to Western lifestyles is increasing demand for branded fast food. Subway positions itself as a healthy food option, justifying slightly higher prices for health-conscious Indian consumers.

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    Case study of marketing

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    The chairman of Subway says they prioritize quality and service, but cannot directly oversee all franchise locations daily. Therefore, they use a franchise model where franchisees are responsible for opening and operating locations independently. While this allows for growth, it risks inconsistent quality if franchisees cut corners. The document discusses Subway adopting a 15% higher pricing strategy in India compared to competitors. This is appropriate for India's evolving consumer market, as incomes are rising and exposure to Western lifestyles is increasing demand for branded fast food. Subway positions itself as a healthy food option, justifying slightly higher prices for health-conscious Indian consumers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    122 views1 page

    Subway Case Study

    Uploaded by

    Shobhita Agarwal
    The chairman of Subway says they prioritize quality and service, but cannot directly oversee all franchise locations daily. Therefore, they use a franchise model where franchisees are responsible for opening and operating locations independently. While this allows for growth, it risks inconsistent quality if franchisees cut corners. The document discusses Subway adopting a 15% higher pricing strategy in India compared to competitors. This is appropriate for India's evolving consumer market, as incomes are rising and exposure to Western lifestyles is increasing demand for branded fast food. Subway positions itself as a healthy food option, justifying slightly higher prices for health-conscious Indian consumers.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Subway’s marketing strategy in India

    Q - We have never compromised on quality and services. But you cannot be present in 70 countries
    to monitor this on a day-to-day basis. So, we follow the franchisee route everywhere.” Do you agree
    with this statement?

    Ans: -

    The chairman of subway in his statement says they do not bargain on the quality and services and
    yet he has said that they can't screen the everyday administrations so that is the reason they have
    follow the franchise route which implies the franchise route has to bear the cost of setting up the
    outlets. These incorporate an initial franchise fee and purchasing or leasing the equipment. The
    franchise will be answerable for dealing with the restaurant and work force. The franchise will pay a
    royalty of 8 percent and 3.5 percent toward a publicizing store in lieu subway will give in aids with
    recognizing the area for the sources in planning the store in setting up the menu in setting up
    operational frameworks in leading preparing developers and in completing occasional assessment. I
    disagree with his assertion since franchise may settle on the quality and servicers and the franchise is
    utilizing subway name and logo and so forth which at last subway will confront the outcomes.

    Q - Subway has adopted a premium pricing strategy with prices 15% higher than those of its
    competitors. Do you feel that such a pricing strategy is appropriate for the price-conscious Indian
    consumer market?

    Ans: -

    Answer to the Question no 2 Yes, we feel that the pricing strategy is appropriate for price - conscious
    Indian consumer market. Subway 's entered into Indian market by adopting premium pricing
    strategy. Although India is a country where people are very calculative in nature, price competitive
    strategy would have been much more applicable for the market but Subway 's premium pricing
    strategy is the right decision due to the following reasons. i) The brand has branded and established
    themselves as a premium brand. So, they also reflected this in their pricing strategy. ii) The income
    levels of Indian customers are increasing, leaving them with more disposable income to spend. Such
    spending power encourages the customers to experiment with various products and services. iii)
    Moreover, with the increased exposure to and interest in the Western lifestyle, eating out has
    become a popular socializing activity of Indian consumers. These consumers are willing to pay a
    premium for products and services provided by western fast-food outlets. This has been reflected in
    the success of McDonalds and Dominos in India. iv) Another major factor that is in favour of Subway
    is its positioning. The company has positioned its outlets as a destination for healthy and fresh food.
    With consumers becoming increasingly conscious about eating healthy food, its premium pricing
    strategy is justified .

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