Rapid Food stuff Sector Forecast – The Subway Illustration of Strategic Product Positioning

Quickly Food items Market place Forecast – The Subway Case in point of Strategic Product Positioning

The United States quickly food stuff market has observed a healthier increase in expansion within the previous a few a long time which forecasts can be sustained. The rapid food marketplace is forecast to manage its recent development expectations, with an expected Compound Yearly Advancement Rate (CAGR) of 2.3% for the five-year period 2005-2010. This is envisioned to drive the sector to a value of $57.6 billion by the stop of 2010. Motorists of expansion include escalating numbers of Us residents in the office, which lowers the volume of time spent on preparing foods at property. In 2010, the United States speedy food stuff marketplace is forecast to have a value of $57.6 billion, an increase of 12.1% because 2005.

Forecast Volume

In 2010, the United States rapidly foods marketplace is forecast to have a quantity of 37 billion transactions (Figure 1). This represents an maximize of 5.3% because 2005. The CAGR of the market volume in the period 2005-2010 is predicted to be 1%.

Success Variables

Accomplishment components for rapidly food stuff franchisees will involve merchandise and marketing focused to more healthy menu selections, brand consistency, lower start out-up costs, franchisee assist, and client comfort. Subway ® signifies a poignant case in point of a quick meals franchisee prepared for accomplishment in the upcoming quickly food items current market. Their tactics transcend the speedy food items current market and use to several other marketplaces and products and solutions.
SWOT Examination

Subway sandwich retailers are properly positioned to leverage their strengths and handle fair threats, weaknesses, and prospects. The table under highlights these Strengths, Weaknesses, Options, and Threats.


  • Dimension and quantity suppliers and channels
  • Menu displays demand from customers for contemporary, nutritious and quick.
  • Use of non-traditional channels.
  • Partnering with the American Heart Association.
  • Around the world brand recognition.
  • Customizable menu offerings.
  • Small franchisee begin up prices.
  • Franchisee teaching is structured, brief and developed to assure quick begin-up and accomplishment.


  • Décor is outdated.
  • Some franchisees are not happy.
  • Support supply is inconsistent from keep to retail outlet.
  • Worker turnover is superior.
  • No control in excess of franchise saturation in specified market place regions.


  • Carry on to Improve World Business.
  • Update décor to stimulate additional dine-in business.
  • Increase Buyer Provider Model.
  • Continue on to grow channel options to involve party wagons.
  • Increase franchisee relations.
  • Experiment with push-through business.
  • Expand packaged dessert choices.
  • Go on to revise and refresh menu choices.
  • Produce a lot more partnerships with movie producers and toy manufacturers to advertise new movie releases by children’s menu packaging and co-branding prospects.


  • Franchisee unrest or litigation.
  • Meals contamination (spinach).
  • Level of competition.
  • Interest Prices.
  • Financial downturn.
  • Sabotage.
  • Regulation Satisfies.

Competitive Evaluation

Subway is not with out competitive pressures. Chief competitors involve Yum! Makes, McDonalds, Wendy’s, and Jack in the Box. Yum! Brands are the world’s most significant, with 33,000 eating places in in excess of 100 nations around the world. Four of the company’s remarkably recognizable models, KFC, Pizza Hut, Very long John Silver’s and Taco Bell, are global leaders of the Mexican, chicken, pizza, speedy-provider seafood classes. Yum! has a workforce of 272,000 staff and is headquartered in Louisville, Kentucky.

McDonald’s Company (McDonald’s) is the world’s largest foodservice retailing chain with 31,000 rapidly-food items eating places in 119 international locations. The company also operates dining places less than the brand names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. McDonalds operates largely in the US and the Uk and is headquartered in Oak Brook, Illinois employing 447,000 men and women.

Wendy’s International (Wendy’s) operates three chains of quickly meals dining places: Wendy’s (the 3rd most significant burger chain in the entire world), Tim Horton’s, and Baja Fresh. Wendy’s operates around 9700 restaurants in 20 nations around the world, has been provided in Fortune magazine’s checklist of major 500 US businesses, is headquartered in Dublin, Ohio, and employs about 57,000 people today.

Jack in the Box owns, operates, and franchises Jack in the Box fast-assistance hamburger dining places and Qdoba Mexican Grill quickly-informal dining establishments and is headquartered in San Diego, California.

Focus on Marketplaces

The increase in sales of the sandwiches has been a end result of decreases in consumer interest in hamburgers and fries and boosts in desire for healthier options. Sales of sandwiches are rising 15 percent every year, outpacing the 3 per cent sales expansion rate for burgers and steaks.

Existing Marketing Program

A new breed of cafe is creating large gains from the sector-saturated hamburger institutions. Termed “rapid-informal,” these dining establishments are dominated by Mexican chains, and sandwich places to eat featuring fresh-baked breads and specialty sandwiches.

Responding to evolving buyer expectations for health, clean, custom-built sandwiches Subway’s marketing method addresses these anticipations through a range of methods. The most noteworthy were the television commercials showcasing Jared. These commercials emphasize the healthier factors of a Subway sandwich by highlighting the 245 kilos Jared lost by taking in a Subway sandwich diet program. Subway also markets as a result of a national sponsorship in occasions these kinds of as American Coronary heart Affiliation Heart Walks and community functions such as triathlons, and children’s sporting activities groups.

The Subway instance signifies marketing and product techniques that are typical illustrations of focusing on market desire, customer trends, product leveraging, and innovation. The marketing methods of building crystal clear brand recognition, brand and product affiliation, and sector needs, have strategically positioned Subway to advance industry share into the close to potential. These marketing approaches are also repeatable essential marketing methods transcending the quick food stuff market. Does your marketing strategy bind brand recognition to solutions that support your market’s long term course?

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