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Subway Problems with Place Product and Price Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 2814 | 1391 Words (7 Pages) | Fabrizio Di Muro | Ivey Publishing : 9B20A087 |
A Word File
Subway, the country's greatest food company, was established in Greenwich, United States. Frederic Caruso, this same inventor, had been seventeen years old and was interested in going to university but couldn't pay the costs. With the assistance of a relative of mine, John Couple of quid, who gave the king just a thousand-dollar advance, he chose to establish a pizza place to support victor earn a few bucks. The couple formed a partnership and established an eatery called Cripes Hyper Navy ships, which again was subsequently abbreviated to Cripes Nuclear subs as well as basically changed to Subs. A year afterward, a third shop debuted, and in the years since, more branches have emerged. Since the group's emphasis was on rapid growth, Lombardi and Buck chose to convert it into a partnership ten years afterward. "Chew Freshest," the industry's well-known tagline, informs consumers that those that just have been using new sourdough goods and raw fruits. Subway created a celebrity out of Dan Simmons, who is alleged to have dropped poundage by eating only Subway sandwiches. The business received several gold medals in sandwich categories, as well as the finest menu component of the strategic title.
Following questions are answered in this case study solution
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Classify the issues that Subway is facing using 4Ps.
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How can Subway address its product related issues?
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How can Subway address its distribution related issues?
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How can Subway alter the negative price perception?
Case Analysis for Subway Problems with Place Product and Price
1. Classify the issues that Subway is facing using the 4Ps.
Subway stores have experienced a decline in sales, press relations problems, and other challenges in recent years. Problems with Subway costing have implemented a distinct pricing approach. Franchises are continually whining about price cuts. People used to be reluctant to incur additional costs once a promotional period ended. The main problem is that licensees must pay a fee despite the absence of profit. So, if only more bargains are offered, there is a lower possibility of financial gain in this current situation of declining sales. Problems with Campaigns The $5 quarter pounder ad caused quite a stir. Around 400 franchisees have joined a petition opposing the brand's plan. While it was successful with customers during the recession, it hurt Franchisee profits. Placement difficulties in the Franchise caused several problems in the business. Subway charged franchisees a rental fee (8% of revenue). This approach initially resulted in increased development. However, there really was eventually an overdramatization situation.
Problems with the product have diminished the eateries as a result of receiving veggies that were about to decay. Subway is facing several issues related to its marketing mix, also known as the 4Ps: Product, Price, Place, and Promotion. Here are some examples of the challenges Subway is currently facing under each of the 4Ps:
Product:
The lack of innovation in its product offerings has led to a stagnant menu and declining sales. Consumers are concerned about the quality and freshness of its ingredients.
Price:
The perception of Subway as a low-priced fast-food chain may not appeal to customers looking for higher-quality and premium options.
Difficulty in raising prices due to intense competition in the fast-food industry.
Place:
Overexpansion and saturation of the market is resulting in cannibalization of sales and diminishing returns for franchisees.
Limited presence in some international markets, which hinders its growth potential.
Promotion:
Ineffective marketing campaigns that have failed to resonate with consumers or differentiate Subway from its competitors.
Negative publicity and controversies surrounding the brand, such as the scandal involving former spokesperson Jared Fogle.
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