Fast Food Market Forecast – The Subway Example of Strategic Product Positioning

The United States fast food items market has found a healthy increase in growth within just the last a few decades which forecasts can be sustained. The quick food industry is forecast to keep its present expansion expectations, with an expected Compound Yearly Growth Amount (CAGR) of 2.3% for the 5-year interval 2005-2010. This is expected to travel the market place to a value of $57.6 billion by the finish of 2010. Motorists of growth include expanding numbers of People in america in the office, which reduces the volume of time put in on preparing foods at home. In 2010, the United States quick foods market place is forecast to have a value of $57.6 billion, an improve of 12.1% considering the fact that 2005.

Forecast Quantity

In 2010, the United States quick foods industry is forecast to have a quantity of 37 billion transactions (Determine 1). This represents an boost of 5.3% since 2005. The CAGR of the current market quantity in the period 2005-2010 is predicted to be 1%.

Good results Variables

Achievements components for rapid food stuff franchisees will include things like products and solutions and advertising and marketing specific to more healthy menu choices, brand name regularity, reduced commence-up fees, franchisee assist, and customer comfort. Subway ® represents a poignant example of a rapid foodstuff franchisee all set for achievements in the upcoming fast foods sector. Their techniques transcend the rapidly foods industry and use to numerous other marketplaces and products.
SWOT Assessment

Subway sandwich stores are nicely positioned to leverage their strengths and deal with acceptable threats, weaknesses, and chances. The desk under highlights these Strengths, Weaknesses, Alternatives, and Threats.


  • Sizing and selection stores and channels
  • Menu displays need for new, healthier and speedy.
  • Use of non-traditional channels.
  • Partnering with the American Heart Affiliation.
  • All over the world model recognition.
  • Customizable menu offerings.
  • Low franchisee begin up prices.
  • Franchisee teaching is structured, short and built to guarantee speedy start-up and accomplishment.


  • Décor is out-of-date.
  • Some franchisees are sad.
  • Service delivery is inconsistent from keep to shop.
  • Employee turnover is substantial.
  • No management more than franchise saturation in supplied sector places.


  • Keep on to Increase International Small business.
  • Update décor to inspire far more dine-in small business.
  • Boost Customer Service Model.
  • Carry on to increase channel possibilities to incorporate party wagons.
  • Improve franchisee relations.
  • Experiment with push-through company.
  • Grow packaged dessert choices.
  • Carry on to revise and refresh menu choices.
  • Create extra partnerships with movie producers and toy suppliers to encourage new movie releases as a result of kid’s menu packaging and co-branding chances.


  • Franchisee unrest or litigation.
  • Food contamination (spinach).
  • Competitors.
  • Fascination Costs.
  • Economic downturn.
  • Sabotage.
  • Law Fits.

Competitive Investigation

Subway is not without the need of aggressive pressures. Main opponents consist of Yum! Brand names, McDonalds, Wendy’s, and Jack in the Box. Yum! Models are the world’s biggest, with 33,000 restaurants in above 100 international locations. Four of the firm’s remarkably recognizable brands, KFC, Pizza Hut, Lengthy John Silver’s and Taco Bell, are international leaders of the Mexican, chicken, pizza, swift-support seafood categories. Yum! has a workforce of 272,000 workers and is headquartered in Louisville, Kentucky.

McDonald’s Company (McDonald’s) is the world’s greatest foodservice retailing chain with 31,000 rapidly-meals dining establishments in 119 countries. The enterprise also operates dining places underneath the brand names ‘The Boston Market’ and ‘Chipotle Mexican Grill’. McDonalds operates mainly in the US and the British isles and is headquartered in Oak Brook, Illinois employing 447,000 individuals.

Wendy’s International (Wendy’s) operates three chains of fast food stuff dining places: Wendy’s (the 3rd greatest burger chain in the earth), Tim Horton’s, and Baja Fresh new. Wendy’s operates in excess of 9700 places to eat in 20 nations, has been included in Fortune magazine’s checklist of prime 500 US providers, is headquartered in Dublin, Ohio, and employs about 57,000 persons.

Jack in the Box owns, operates, and franchises Jack in the Box swift-provider hamburger dining establishments and Qdoba Mexican Grill quick-informal eating places and is headquartered in San Diego, California.

Target Markets

The raise in revenue of the sandwiches has been a result of decreases in customer desire in hamburgers and fries and boosts in demand for much healthier options. Sales of sandwiches are rising 15 p.c every year, outpacing the 3 % sales expansion price for burgers and steaks.

Present-day Marketing and advertising Application

A new breed of restaurant is earning huge gains in opposition to the current market-saturated hamburger establishments. Termed “rapid-casual,” these eating places are dominated by Mexican chains, and sandwich dining places offering fresh-baked breads and specialty sandwiches.

Responding to evolving purchaser anticipations for wellness, new, personalized-designed sandwiches Subway’s marketing and advertising plan addresses these anticipations by way of a amount of ways. The most notable had been the tv commercials showcasing Jared. These commercials emphasize the healthful facets of a Subway sandwich by highlighting the 245 kilos Jared lost by taking in a Subway sandwich eating plan. Subway also markets by a countrywide sponsorship in events these as American Coronary heart Affiliation Heart Walks and neighborhood gatherings such as triathlons, and children’s sports activities teams.

The Subway case in point represents internet marketing and products approaches that are classic illustrations of focusing on current market desire, buyer traits, product or service leveraging, and innovation. The marketing procedures of creating distinct brand name recognition, brand and item affiliation, and sector calls for, have strategically positioned Subway to advance sector share into the in the vicinity of potential. These internet marketing approaches are also repeatable fundamental promoting strategies transcending the quickly meals market place. Does your advertising system bind brand name recognition to solutions that guidance your market’s long term direction?