Subway's Marketing Strategy in India


Details


Case Code : CLSM023
Publication date : 2005
Subject : Services Marketing
Industry : Food and beverages
Length : 03 Pages
Price : Rs. 100

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Key words:

Indian Fast Food Industry, McDonald's, Dominos, Pizza Hut, Subway, Subway Systems India, Customer Interaction, Indian Recipes, Sentiments and Sensibilities, Franchising, Arvind Singhal, Fred DeLuca, KSA Technopak, Premium Pricing Strategy, Price Conscious, Advertising Fund, Triton Advertising Agency

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.


 


Abstract:
ICMR India ICMR India ICMR India ICMR India RSS Feed

Subway is a leading sandwich chain, which operates through a wholly-owned subsidiary, Subway Systems India. The caselet provides an overview of the product strategy followed by Subway that involved customization of its recipes and preparation to match the tastes and sensibilities of Indian consumers. The caselet also illustrates the franchising method adopted by Subway in India. Finally, it provides a brief description of the company's pricing and advertising strategy.


Issues:

   Indian fast food industry and entry of multinational players.
   Distribution strategies of fast food chains in India.
   Pricing policies of multinational fast food chains.
   Promotional strategies of fast food chains in India.

Introduction

The Indian fast food industry is pegged at Rs 20bn with an expected annual growth rate of 40%. Several multinationals like McDonald's, Dominos and Pizza Hut have established their presence in India.

A new entrant is Subway, a leading sandwich chain, which, with 16,900 outlets in Canada and the US, has surpassed McDonald's branch strength in these two countries. Worldwide, it has a total of 22,361 restaurants, spread across 78 countries. Subway operates in India through a wholly owned subsidiary, Subway Systems India (Subway)...

Questions for Discussion:

1. We have never compromised on quality and services. But you cannot be present in 70 countries to monitor this on a day to day basis. So we follow the franchise route everywhere." Do you agree with this statement?

2. Subway has adopted a premium pricing strategy with prices 15% higher than those of its competitors. Do you feel that such a pricing strategy is appropriate for the price-conscious Indian consumer market?


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