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Application1Week1 Subway
Eric G. Hughett
WaldenUniversity
ApplicationsinMarketing
MMBA-6620-2
Dr. Felix Lao

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Subwaystargetmarketisthe consumerwhoisconcernedwitheatinganalternative to
traditional fastfood. Theirmarketingmix iswiththe productwhichisahandmade sandwich. Pricingis
competitivewithotherfastfoodcompetitors.Promotioniscarriedoutbymediawhicheducates
customersaboutthe traditional footlongsubwhichcan be constructedasa healthyalternative tohigh
calorie alternatives.Theirdistributioniscarriedoutbythe franchise locationswhichsell andmarket
theirproducts. Subwayhasbeenable tomarketopportunitiesthoughhealthytestimonials of
customerswhichsucceededinweightlossfromtheirproducts(Subway,2007).This woulddistinguish
theirmessage fromafictional characterwhichwouldshow lesscredibility. Also,the marketopportunity
to allowcustomerstosee the productionof the sandwichanditsfreshingredientshadreinforcedthe
“eat fresh”slogan.
SWOTAnalysisof Subway
Strengths
1. Well KnownBrand
2. PopularSpokesperson
3. AlreadyinHealthyFoodPosition
4. Well Placedlocationstosupportcommunities
Weaknesses
1. Paradox of healthymenuandsome highcalorie
choices.
Opportunities
1.Baby boomersandseniordemographic
2. Local school systemswhichare plaguedwith
childhoodobesityissues.
Threats
1. Complacencyandlack of focuswith“Eat Fresh”
and itsbenefits.
2. Vulnerabilitytofoodprice increasesdue to
multiple ingredientsinsandwiches.
Subwayhascontinuedintheiroriginal focusonbeingaworldclasssub-sandwichprovider.
Theirchallenge iswiththeirhealthyimage andlifestylepromotiontheyare marketinghighfat

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alternativesontheirmenusuchasmeatball sandwiches.While this maycapture anew segmentwhichis
lessconcernedwitheatinghealthytheircore customersmayquestionif theirmissionand
spokespersonsmessage. Opportunitywiththe babyboomerpopulationwhichisseekinghealthy
alternativesandgrowingchildrenand youthsegmentcouldleadtogreatergrowth.
SWOT Analysisof McDonalds
Strengths
1.Globallyrecognizedbrand
2. Multiple locations
3. Executionof productionof foodquickly.
4. Early childhoodorientation/HappyMealsetc.
5. Well establishedManagementandtraining.
Weaknesses
1. Less variationtomenu.
2. Inabilitytomake a vegetariansandwichwith
variationsimilartosub-sandwichlocation.
Opportunities
1. Expansionof quickserve throughairlines.
2. Continuedfocusonhealthiermenuitems.
3. Reductionof entrycosts to franchises.
Threats
1. Popularityof BigMac and highcalorie foods.
2. Educated consumerswhoare willingtowait
longerforfoodor pay for healthieralternatives.
McDonaldshas continuedtobe a worldleaderinfastfood.Theyhave manylocationsand
recognitionfromsmall childrentoseniorcitizens.Throughthe yearsmanagementandtraininghas
establishedoperations whichare veryefficient. Some citiesandcountiesare passingordinanceswhich
can actuallyalterbusinesswithfastfoodrestaurantswhoare sellingunhealthyproducts(Martin,2011).
McDonaldshas alreadyhadnational attentionwithregardstotheirmenuwhichoffersmanyfattening
items. A change in itsmissionandwhatMcDonaldsconsidersimportantincludinghealthycustomers
couldaffectthe future of the chain.Subwayisin a good positiontocapitalize onthese governmental
influences. Withourpopulationgrowingthere isaneedtoaddresstheirchallengesincludingeating
healthier(Pride &Ferrell,2008).Subwaycouldgainexposure bypromotinga seniormarketing
campaignwhichcouldsay “we have the same foodingredientsthatyourparentsate”.Encouraging

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freshvegetablesandmeatswithlimitedfatcontentcanmake seniorsfeelgoodabouttheirchoice of
food.
References
Martin, A.(2011). Laws promotinghealthydietssee some results:Surveysshow ordinanceschange
eatinghabits.AmericanCity&County,126(8), 15. RetrievedMarch5, 2011, fromthe BusinessSource
Premierdatabase.
Pride,W.& Ferrell, O.C.(2008). Marketing.Boston:HoughtonMifflinCompany.
Videosegment:“Global Growth:The SubwayStory”(programlength:10 min.)
http://college.cengage.com/business/pride/foundations/3e/assets/cms/students/vid_quizzes/popup.ht
ml?layer=act&src=wf_ch0505_vid_quiz_2.xml

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