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THE HISTORY OF SUBWAY

In 1965, Fred DeLuca set out to fulfill his dream of becoming a medical doctor.

Searching for a way to help pay his education, a family friend suggested him to open a

submarine sandwich shop.

Dr. Peter Buck has made a loan of $1000 to become Freds partner, and a business relationship

was forged that would change the landscape of the fast food industry.

The first stores was opened in Bridgeport , Connecticut in August, 1965. After that Fred

DeLuca and Dr. Peter Buck has set their first goal of having 32 stores opened within 10 years.

Fred soon learned the basics of running a business as well as the importance of serving a well-

made , high quality product , providing excellent customer service, keeping operating costs low

and finding great location for their new branches. These early lessons continue to serve as the

foundation for successful SUBWAY restaurants around the world.

(Subway History 2009, Subway Studentguide)

From a lot of subway sandwiches product I would like to choose the Italian B.M.T

sandwiches because it is recorded as the most famous and delicious sandwiches. Italian B.M.T

has its own history. The acronym B.M.T stands for Biggest, Meatiest, and Tastiest. In the early

days of SUBWAY restaurants, it was a promotion that was based on the Brooklyn Manhattan

Transit system in New York City that went along with the subway theme.

(Subway Frequently Ask Questions -FAQ ,2009)

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1. NAME OF THE BRAND : SUBWAY SANDWICHES & SALADS

2. HEADQUARTER ADDRESS : 325 BIC DRIVE,

MILFORD,

CONNECTICUT 06461-3059,

USA.

HEADQUARTER

CONTACT NUMBER : (203)877-4281 OR 1-800-888-4848

(Subway HQ, 2009 )

BRANCHES :

As SUBWAY restaurant has been franchised their product all over the worldwide country

making them as leader in the global development of the quick service restaurant industry. Since

47 years SUBWAY operates in global and until now keep on improving their products and

spread their franchised, now in 2012 SUBWAY has been located in 99 countries with 37,984

numbers of restaurants all over the world. This achievement can be interprets in the table below

showing how efficiently they enter the global market.

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TABLE 1.1 : NUMBER OF STORES IN EACH COUNTRY LISTED AS SUBWAY

FRANCHISEE

COUNTRY NO.OF STORES

AFGHANISTAN 2ANTIGUA AND BARBUDA 2

ARGENTINA 74

ARUBA 6AUSTRIA 9

AUSTRALIA 1346

BAHAMAS 7BAHRAIN 14

BARBADOS 1BELGIUM 17

BOLIVIA 10BRAZIL 971

BULGARIA 24CANADA 2843

CAYMAN ISLANDS 6

CHILE 34

CHINA 343

COLOMBIA 86COSTA RICA 49

CURACAO 8

CYPRUS 2CZECH REPUBLIC 10

DENMARK 8DOMINICA 2

ECUARDO 16

EGYPT 5

EL SALVADOR 35

FINLAND 99

FRANCE 387

GERMANY 602GREECE 1

GRENADA 3

GUAM 12

GUATEMALA 42

HONDURAS 22

HONG KONG 28HUNGARY 12

ICELAND 23

INDIA 302IRELAND 98

ISLE OF MAN 2

ISRAEL 4ITALY 13

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JAMAICA 3

JAPAN 378KUWAIT 56

JORDAN 9LEBANON 4

LIECHTENSTEIN 1

LUXEMBOURG 13MACAU 2

MALAYSIA 112

MALTA 3

MARSHALL ISLANDS 1MANTINIQUE 3

MEXICO 621

NETHERLANDS 112NEW ZEALAND 245

NICARAGUA 11NORTHEN MARIANA ISLAND 3

NORWAY 17OMAN 13

PAKISTAN 36

PANAMA 41

PERU 9

PHILIPPHINES 10POLAND 60

PORTUGAL 13

PUERTO RICO 205QATAR 16

ROMANIA 6RUSSIAN FEDERATION 453

ST.KITTS AND NEVIS 1SAINT LUCA 2

ST.VINCENT AND GRENADINES 2

SAUDI ARABIA 54

SINGAPORE 102

SINT MAARTEN 6SLOVAKIA 9

SOUTH AFRICA 14SOUTH KOREA 55

SPAIN 42

SURINAME 1ST.MARTIN 1

SWEDEN 108

SWITZERLAND 11

TAIWAN 135

THAILAND 46TRINIDAD AND TOBAGO 40

TURKEY 20UNITED ARAB EMIRATES 131

UNITED KINGDOM 1469

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UNITED STATES 25507

URUGUAY 4VENEZUELA 167

VIETNAM 3VIRGIN ISLANDS,US 7

ZAMBIA 6

TOTAL OPERATING COUNTRY : 99

TOTAL BRANCHES : 37,984

( Subwayro ots,2009 )

3. TARGET MARKET :

Italian B.M.T SUBWAY sandwiches is targeted to the person who loves to eat a fresh

meat but at the same time they want to keep their body healthy and to prevent from obesity.

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4. PRICE :

SIZE : 6 INCHES

PRICE : RM 12.50

SIZE : 12 INCHES / FOOTLONG

PRICE : RM 25.00

5. DISTRIBUTION :

Subway has distributed their product directly to the customer using their franchisee all

around the world. In every country that subway operates, they provide a factory in each state of

the country, as their distribution centers. For example in Malaysia , all the franchisee from

Selangor will be supplied by their factory to each branches in Klang.

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6. PROMOTION :

Type of promotions Examples :

CouponsThis promotion can be

offered based on currentcelebration in such asRamadhan Meals andDeepavali Special Treats.

Sub of the day

- Special price on certainmenu on certain day.

- Because of Italian B.M.Tis the most favorable, it ison Monday

MAKE- IT- FOOTLONG

- Only add-on RM8.00 andmake your sandwich 12inches(only with the samebread)

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7. OTHER PRODUCTS BY THE SUBWAY COMPANY :

PRODUCT NAME EXAMPLES

13 TYPES OF SANDWICHESo Tunao Roasted Chickeno Steak And Cheeseo Turkey Breasto Chicken Sliceo Turkey Breast And

Chicken Sliceo Chicken Teriyakio Seafood And Crabo Meatball Marinarao Veggie Deliteo Subway Clubo Subway Melto Italian B.M.T

4 TYPES OF COOKIESo Oatmeal Raisinso White Chocolate

Macadamiao Chocolate Chipso Double Chocolate

2 TYPES OF SOUPo Chicken Cream Soupo Mushroom Cream Soup

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8. PRODUCT CATEGORY

Subway sandwiches is under a healthy foodcategory.

9. ATTRACTIVENESS OF THE PRODUCT CATEGORY

o A healthy foods

o Full of nutrition ingredient

o Contributes to a healthy lifestyle

o Prevent from obesity and a high cholesterol of food

o Can be eat by all level of age

o Less fat

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10. COMPETITORS :

O` Briens sandwiches

Subway sandwiches

Tuna Sandwiches

Italian B.M.T

RICEKFC

Mc Donald

MARRYBROWN

FOODS

CLOTHES

BEVERAGES

Product

competit

Product

category

competito

Generic

competition

Budget

competition

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PRODUCT FORM COMPETITORS

A product form competitors is defined as the presence (or absence) of acharacteristic or attributes of the competitors product that have a same or alikefeatures or values. Here, the product competitors for SUBWAY is the O`BRIENS,because they also offers the same product like SUBWAY which is a sandwiches.

PRODUCT CATEGORY COMPETITIONS

The second level is the product category competitions. Here, the product orservices with a similar features existed in the industry can be a competitors. Forexample, in the healthy foods industry O`Briens Tuna Sandwiches is the competitors toSubway Italian B.M.T sandwiches because both of them is categorized as a healthy foodsandwiches.

GENERIC COMPETITIONS

Generic competition is the third type of competition where the competitors of a

product came from other company that produce substitute product of their company.A product will be considered as a substitute of other product when the product fulfillthe same customers need. In this case, KFC, McDONALD, MARRYBROWNS ANDRICE is considered as a generic competition because, instead of they buy asandwiches, they may buy others substitute products.

BUDGET COMPETITIONS

The last level is the budget competition. This is the broadcast view of competition,

where it considers all the products and services competing for the same customer

amount of money as forming a market. For example, budget competition for sandwiches

can be anything , such as beverages ,foods or clothes as long as the other product and

service compete for the customers same money value.

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11. FOUNDERS, CURRENT MANAGEMENT TEAM AND TOTAL EMPLOYEE

FOUNDERS

Subway was founded as Doctor's Associates in 1965 by Fred DeLuca and

Peter Buck in Bridgeport, Connecticut. (Wikipedia - subway founder,2011)

CURRENT MANAGEMENT TEAM

(SUBWAY Franchisee Owned-Management team, 2012)

TOTAL EMPLOYEES

In 2012 Subway company has operates in 99 countries and build 37,984 branches inthe world, and now they have more than 20,000,00 employees either direct orindirect to the company .

Bryan

Griffiths

CEOandCompanyDirector

Mike AttwoodPurchasing Director

Dominique Billes

Supply Chain Director

Agnes FairheadFinance Director

Abbie GregoryService Director

Ben FrickeCommercial Director

Hans PrinsenService Director

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12. PRODUCT POSITIONING MAP

This is the perceptual map approach. By using the perceptual map it can interprets a

technique that use by marketing manager or product manager to visualize customers or

potential customer pint of view regarding the companys product. For example, a

sandwich can be divided into a nutritious and not nutritious, and can be viewed as in

term of a fast foods or fresh foods. Here, from the customer point of view, their

perception on Subway Sandwiches is a fresh foods and a very nutritious food. This

perceptual mapping also can be used to classify the companys potential competitors.

( Donald R.Lehmann,2005)

NUTRITIOUSNOT- NUTRIOUS

FAST FOOD / FROZEN FOOD

FRESH FOODS

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13.CHALLENGES

o Because of we have a worldwide channel of distribution, in a different region with so

much culture and religions it is quite hard for us to penetrate their country with our

franchisee. For example in Malaysia itself we need to follow up with the Ministry of

Health Malaysia and Jabatan Kemajuan Islam Malaysia ( JAKIM ) to prove that we did

not distribute a non-halal product in Malaysia because Malaysia is an Islamic country. In

addition, the perception of Malaysian that assume Subway company sell a pork bacon

like in Singapore.

( Ginny Ling. Subway Manager ( Skypark Airports),2012)

o The others challenges that we need to face is when customer assume that we are a fast

foods company, while actually we are fresh and nutritious. We serve and baked our

bread in every branche by our sandwich artist. We also do a procedure where we only

use a vegetables and meats less than 24 hours to make sure that the ingredients is

totally fresh.

( Nur Fatin fairuz . Subway Senior Supervisor (Skypark Airports,2012)

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REFERENCE / BIBLIOGRAPHY

1. Nur Fatin fairuz . Subway Senior Supervisor (Skypark Airports,2012

2. Ginny Ling. Subway Manager ( Skypark Airports),2012

3. Donald R.Lehmann.(2005).PERCEPTUAL MAPPING. Retrieved

PRODUCT MANAGEMENT & STARTEGY.

4. SUBWAY Franchisee Owned-Management team(2012). Retrieved

(http://www.eipc.eu/Management-Team )

5. Subway branches.(2009). Retrieved

(http://www.subway.com/subwayroot/ExploreOurWorld.aspx)

6. Subway HQ.(2009). Retrieved

(http://www.subway.com/subwayroot/ExploreOurWorld.aspx)

7. Subway History.(2009). Retrieved

(http://www.subway.com/ContactUs/StudentGuideEdits.pdf)

8. Subway Frequently Ask Questions.(2009). Retrieved

(http://www.subway.com/ContactUs/CustServFAQs.aspx)

9.OTHERS SUBWAY PRODUCT.(2012). Retrieved

(http://en.wikipedia.org/wiki/Subway_%28restaurant%29 )

http://www.eipc.eu/Management-Teamhttp://www.eipc.eu/Management-Teamhttp://www.eipc.eu/Management-Teamhttp://www.subway.com/subwayroot/ExploreOurWorld.aspxhttp://www.subway.com/subwayroot/ExploreOurWorld.aspxhttp://www.subway.com/subwayroot/ExploreOurWorld.aspxhttp://www.subway.com/subwayroot/ExploreOurWorld.aspxhttp://www.subway.com/subwayroot/ExploreOurWorld.aspxhttp://www.subway.com/subwayroot/ExploreOurWorld.aspxhttp://www.subway.com/ContactUs/StudentGuideEdits.pdfhttp://www.subway.com/ContactUs/StudentGuideEdits.pdfhttp://www.subway.com/ContactUs/StudentGuideEdits.pdfhttp://www.subway.com/ContactUs/CustServFAQs.aspxhttp://www.subway.com/ContactUs/CustServFAQs.aspxhttp://www.subway.com/ContactUs/CustServFAQs.aspxhttp://en.wikipedia.org/wiki/Subway_%28restaurant%29http://en.wikipedia.org/wiki/Subway_%28restaurant%29http://en.wikipedia.org/wiki/Subway_%28restaurant%29http://en.wikipedia.org/wiki/Subway_%28restaurant%29http://www.subway.com/ContactUs/CustServFAQs.aspxhttp://www.subway.com/ContactUs/StudentGuideEdits.pdfhttp://www.subway.com/subwayroot/ExploreOurWorld.aspxhttp://www.subway.com/subwayroot/ExploreOurWorld.aspxhttp://www.eipc.eu/Management-Team

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APPENDICES

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