case report.docx

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casereport

LincolnUniversity

CaseReport

（SubwaySandwichShops）

By

HuangChai

ChunxinTao

MingZhang

ZhongzhouZhu

IntroductiontoBusiness（BA10）

Instructor:

Dr.WilliamHess

Dr.ArthurAshurov

May10,2012

1．Summary

Competitioninthesandwichsegmenthasintensified.Subsseemtobeacategoryanyonecanparticipateinbecauseoftheeasyentryandasimple,low-costroutetomenuexpansion.Inthiscase,theauthordiscusesSubwaywhichistheundisputedmarketleaderinsubsmarket,with10timesmorelocationsthananyothercompetitorandmorethan75percentofallUnitedStatessubchainoutlets.Inthiscase,besidesintroducinghowFredDeLucadevelopedhiscompany,theauthorcomparesSubwaywithothercompetitor.Comparingwiththeburgerchains,theauthorfindswiththelowstart-upcostsandeasierfoodpreparation,subsaremorepotential.Andit’sthereasonwhymanybusinessesstarttosellsubs,sotheauthoralsointroducesomeotheroperatorsinsubsmarketlikeBlimpie,Quizno,MiamiSubsandsoon.Withcustomeranalysis,authorfindalthoughfastfoodhasabigmarket（78.7percentofalladultshavepatronizedafast-foodordrive-inrestaurantinthelast30days）andcustomersthinksubsareriedfood,assubsmarketleader,Subwayjumuchhealthierthanfsthas4.6percentrestaurantvistedin1991.Thisnumberismuchlowerthanothers.McDonald’s,BurgerKing,andKFCareeachseveraltimesmorelikelytobevisitedthanisaSubwaylocation.Inthecase,theauthoralsodiscussaboutadvertisingplaysofsubway.Foradvertising,subwayhasaorganizationcalledtheSubwayFranchiseeAdvertisingFundTrustwhichisgovernedbyaBoardofTrusteesconsistingof12electedfranchiseownersfromacrossthechain.Problemsinfranchiselandanddifferentialadvantagearealsodiscussedattheendofthecase.（HuangChai）

2.SubwayStatus

Economicglobalizationisthedeepbackgroundandunderlyingtrendsofthedevelopmentoftheworldchanges.Inthefiercemarketcompetition,thesubway,tomaintainasteadygrowthtrend,Subwayopenedin86countrieswith28,977branchesallaroundtheworld,itisthelargestsubmarinesandwichfranchiseorganizationintheworld,inJanuaryofthisyearonthe1stoftheglobalstore,300003,749300002,737homesoverMcDonald's.Becometheworld'slargestsingle-brandfastfoodfranchisechainintheUnitedStates"Entrepreneur"magazine"18years914franchiseorganizations500competitions,"wasnamedglobalfranchisefirst,asaninternationalfast-foodindustryaleaderofthearmy.

Forsubshops,theSubwaychainistheundisputedmarketleader,with10timesmorelocationsthananyothercompetitorandmorethan75percentofallUnitedStatessubchainoutlets.Asofmid-1993,Subwayoperated7,825unitsworldwide,withabout7,750unitsinNorthAmerica.Whenitreached8,400storesin1993,SubwaywastheNo.2fast-foodchainintheUnitedStates.Byopeningitssmallsandwichshopsatbreakneckspeed,Subwaygrewfrom$360millioninsalesin1987to$2.2billioninsalesin1992（Figure1–1）,whileincomeincreasedsubstantially（Fig.1–2）.TheformerNo.2wasPizzaHut,whichoperated7,929unitsinNorthAmericaandexpectedtohave8,355bytheendof1992,However,intermsofsales,Subwayranks12thamongchainsnationwide.Salesareabout15percentofMcDonald’s.

Intherestaurantisalsocateringglobalization,which,SUBWAYintheglobalizationofthemarketeconomythereisagreatthreat.

Subwayfacesalotofcompetitors;thereisagreatthreatofsubway,suchasKFC,McDonald's,PizzaHut,BurgerKing,etc.

Thecustomerchoiceinfood,thealternativeisverybig,forSBUWAY,hehasalotofcompetitors,incompetitors,manyoftheirproductsandsubwayandsimilar,alternativeisveryhigh,andcustomerhadavarietyofchoiceway,suchas:

convenientdegree,taste,price,howtoreducethealternativethreatisofvitalimportance.（MingZhang）

3.SubwayAdvantage

（1）.Healthyfood

Thesupplyoffreshhealthandfullnutritiondeliciousfood.InNorthAmerica,"seven"potpourrisandwichfatcontentunder6g!

"Advertisingcanbeseeneverywhere.Inonedayin1999,anAmericancollegestudentscametotheobesitypotpourriofastore,hesaid"oneselffat,veryashamed,afraidtogoout",hopetobeabletoeateverydaytothefullfreefood,andarewillingtodoadvertisementforthecompany.Whenthepersoninchargeofthestorerefusedthefatman,butthenewsreporttocompanyheadquarters,theresultsoftheheadquartersoftheexecutiveimmediatelyestablishedateam,includingnutrientdivision,theexpertsstartedtohelpthefatmanmanagementdiet.Ayearlaterthemiraclehappened,thefatmanlostweightof185pounds.Hestartedforthepotpourriadvertising,atthattimeintheUnitedStatescausedsocialsensation,attractedalotoffatmancametothepotpourri.Thatbecomesatypicalintegrationintotheconsumerenvironment,sothatconsumersbecomebrandofcommunicators’case.Subwaybecomesthepronounofglobalhealthfastfood."Notallfastfoodwillbeobese"advertisingbigdopropaganda;

（2）.Uniformstandard

Accesstoglobalanya"potpourrirestaurant,canseetheunitydecoratingdesign,unifiedmenu,feelunifiedserviceconcept,totastetheglobalunity,styleofpure"potpourrifood.Thesecretofsuccessinthefullissimple--characteristicsisthelifelineofI.These"potpourricharacteristics,andletpeopleinmindthepotpourriwillsandwichcontacteddirectly

（3）.ConsumersBehavioralFactors:

-Recognizetheneedtoeathealthy，desireforfreshingredientsandhealthfoods;

-Frequentlyeatout;

-Convenience:

morelikelytoeatoutduringworkingdaysonlunchhours，foodpreparedfastbeforetheconsumer’seyes;

-Motivatedbydiversityofflavorsandaproductadaptedtotheirneeds.

4.Subwayimprovewell-knowmethods

Advertisementmethods

Fixedbillboard

（1）Abillboard,mainlyreferstothebuildingexternalwallbillboards,generalareaislarger,abillboardareasomeevenmorethan500squaremeters.

（2）Sidewalkbillboards,onbothsidesofthesidewalk,lightbox,pillarsmallbillboardsadvertising,orsignreleaseonadvertising,etc.

（3）Thetrafficads,mainlysetupinsomeandtraffickindaboutpublicplaces,suchasthestation,airports,highways,theplacesuchasthebusstation.

Mobileadvertising

（1）Busbodyadvertising

（2）Hotairballoon,zeppelin（ship）advertising

（3）Professionaladvertisingcar

（4）TV,newspaper,magazineads

5.developmentdirection

（1）.Thetake-awaysendservice:

Increasethetakeawayservice,theconvenienceofourcustomers

（2）.Providemorepreferentialservice

"Inthefoodofthegeneralgoesupatthepresentstage,thepricefornotonlyalargerangeofitselfgoodpublicityfunction,foralotofcampaignwhereenterpriseprovince,butalsobecauseoftheincreasedsalesandgetturnoverinparttooffsettherisingcostofandterminalofthepricecut."

（3）.Expandingchainrange:

ComparedwithMcDonald's,KFC,"intheperceptionofChinafulllow,enterprisedevelopmentisstillintheearlydays,becauseAmericanfastfoodmarketnearlysaturated,eacharebigthefast-foodchainpaymoreattentiontothedevelopmentofoverseasmarkets,especiallyinAsia.

Thepotpourriin1984inBahrainopenedthefirstoverseasfast-foodrestaurant.Thecompanyisexpectedtooverseasin2020morethanthenumberintheUnitedStateswillbefastfoodrestaurantlocalstorequantity.Atpresent,"intheUnitedStateshasabout2.4fullstores,lastyearcreatedtherevenuesof$10.5billion.Andthetotalrevenuelastyearfullfor$15.2billion.

ThepotpourriexpectsChinatobeitsoneofthelargestmarket.Atpresent,inChinathepotpourrionly199stores,butexpectedtoreach2015inwillincreasetomorethan500fast-foodrestaurantnumberhome.

（4）.Lookingforreasonablerentalstores（costreduction）

（5）.Humanstructureimprovement（standardization,automation,computerized）（ZhongzhouZhu）

6.Improve

Accordingtotherequirementsofdifferentregions,wecanconductmarketresearchprogramtodeterminethedifferentregionsandmarketdemandforthedifferentpartsofthemarketshare,relativetothemarketingplan,areasonableallocationforaregionalmarket,sothatourfranchiseesnothappenharshcompetitionwitheachother.

Throughtheperformanceappraisaltoevaluatethedifferentbranchesofthechainmanagementlevel,inordertorewardorpunishmentinthebranchesofdifferentlevels.Poormanagementormarketsaturationreachedacertainamountofstoresinatimelymannertodealwithoptimization.Alsoreducetheuncomfortableofthefranchiseeonthesubway,toreduceunnecessarylegaldisputes,toavoidunnecessaryadversesocialinfluence.Aperiodoftotaltraffic（tonnage,cubic,etc.）dividedbythecorrespondingtotaldrivingkilometers,inordertoreflectthedistributionrestaurantconcentratedonthelocation.

Byimprovingtheirexistinginstallations,continuingtoadaptmenusforcustomerneedsandofferingabettercontrolovermarketsaturation,Subwaywillcontinuetothriveonstrengths,exploitnewopportunitieswhileimprovingweaknessesandavoidassociatedthreatstotheirbusinessplan.

Theaboveisfortheimprovementofthemarketforourbusiness,wealsohopetomakesomenewimprovements,

1,Quality

Healthfoodisaveryimportantissue,thesubwayhasbeenthefoodhealthasthefirstpoint,asopposedtoMcDonald's,KFC,fastfoodcompanieslikesubwayfoodismorebeneficialtothebody,wewantthequalityofrawmaterialsasakey,andtheoriginoftherawmaterials,grading,andtomakeuseofhigh-graderawmaterials,toensurethatthe