Internet Marketing About Subway

1. Introduction

A. Company background

Subway IP Inc. (or Subway) is the American fast food restaurant franchise, which mainly sells submarine sandwiches with salads. SUBWAY is one of the fastest growing brands in the world with more than 44,800 restaurants in 112 countries ("The History Of SUBWAY" 2016). Fred Deluca and Peter Buck were two people who took the initiative founder SUBWAY- a sandwich shop. That decision had changed the landscape of the fast food industry. The first store was opened in Bridgeport, Connecticut in August 1965. For Fred, he had put the service and the quality of product on top, as well as providing excellent customer service ("The History Of SUBWAY" 2016). Nowadays, SUBWAY is quite popular in the world because of its high quality in products, high quality in customer service along and the passion to create nutritious meals for everyone. This is the reason why SUBWAY becomes one of the most successful fast food restaurants in the world.

B. Industry background

Currently, in the fast food industry, there are many fast food companies; hence, consumers have many different options. This creates a high competitive level. Thus, the fast-food restaurants should always create new products to attract consumers. However, the fast food compares with food in full service restaurant, is the best choice for those, who do not have high income for gourmet food and do not have much time in the restaurant. Because the price of fast food is cheaper and fast food does not take much of their time. Besides, the statistics of Kemp (2015) showed that more than 4 million people in Singapore use Internet and they often spend 2 hours on the media. Moreover, the interaction between the media and people in Singapore is 70%, three times higher than the world average.

So, from the statistics above, Singapore is one of the countries that have most users in media in the world (Kemp, 2015). So it is an indispensable job for SUBWAY to create an e-marketing plan. Because, through the Internet, SUBWAY can gain competitive advantage compared to other business competitors.

2. Situation Analysis

A. Environmental analysis

I. Legal factors

According public health policy in Singapore, it tends to discourage citizens from using fast food, which harm their health and cause some types of disease such as heart attack from high cholesterol. Nonetheless, SUBWAY has opportunity to grow in Singapore because SUBWAY focused on producing nutritional product to customers.

II. Technological factors

Technology is one of the most important factors that directly impact the success of a particular marketing campaign. As mentioned above, most Singaporeans are using social networks. Moreover, according to Kemp (2015), more than 46% of Singaporeans use social networks to evaluate products and collect feedback from previous customers. Summed up, the media has many advantages and SUBWAY can use it to create E-Marketing plan, which can help SUBWAY enhance the competitive advantages and minimize the threat from competitors

III. Market-related factors

According Weida (2010, p. 22), the average per working hours of Singaporeans is 46.3 hours a week, compared with the average of working hours in Europe (41.7 hours weekly). With this busy life, most Singaporeans do not have time to choose to go to a restaurant to enjoy a nutritious meal. So this is an opportunity for the SUBWAY as fast food restaurants that offer to customers the nutritional in quality of the product

IV. Competitive environment

As mentioned above, fast food industry in Singapore is competitive. There are many fast food restaurants in Singapore also offer fast food to customers such as McDonalds, BurgerKing or KFC. They all target the same audience with SUBWAY. So this will be a challenge for SUBWAY to attract more customers. However, SUBWAY has strength that they offer nutritional products that are not available in McDonalds or BurgerKing

B. SWOT Analysis

Strengths

• Strong market position

• Worldwide brand recognition: Subway has more than 44,800 stores in 112 countries

• SUBWAY has special menu on special day (Christmas, New Year, Valentine’s day)

• Nutritional products

Weaknesses

• Services are not consistent from store to store

• High employee turnover from high working hours

• No capital (seeking investor)

• More difficult to promote

Opportunities

• Famous

• Developing multiple fast food restaurant

• Increasing demands for healthier fast food

• Changing customer habits and new customer group

Threats

• High competition

• Similar concept or service

It can be seen that SUBWAY is famous and strong brand with their efforts of increasing healthy food to serve consumers. On the other hand, SUBWAY also has weaknesses as high employees turnover and lack of investors. However, those points can be overcome by raising E-marketing and development efforts in this area. One hand, it can attract external investment, on the other hand it can also build brand image and attract more workers.

3. E-marketing Strategic Planning

A. Company’s Segmentation

i. Geographic Segmentation

The purpose of this E-Marketing plan is to focus on those who live in Singapore and often have stressful lifestyle, or they do not have much time to eat but always looking for a healthy meal without spending a lot of time

ii. Demographic Segmentation

This E-Marketing plan aims at people or families who have middle income, and no individual characteristics of sex or race. Specifically, it targets customers between the ages of 20 to 50. This means