Subway restaurants opened their first store outside North America in December of 1984. Now with 32,863 restaurants in 92 countries, with 423 restaurants in Brazil, Subway is one of the leading sandwich restaurants in the world. The SUBWAY® brand arrived in Brazil in 1994 with the first location opening at Paulista Ave. in Sao Paulo City most famous business area.
In 2003 the operations has been restructured and since then, SUBWAY® brand has continued to grow. Wherever Subway restaurants are located, the core menu stays relatively the same with the exception of some cultural and religious variations.World travelers can expect the same high quality of ingredients regardless of what nation they are visiting. A customer can enjoy a foot long Turkey Breast Sub, with your choice of a variety of vegetables and condiments served on bread baked right in the restaurant in Jamaica, then travel to New Zealand and get the same foot long Turkey Breast Sub.
(Subway) Distribution Barriers Subway and its affiliated companies face distribution barriers when trying to deliver supplies to their stores around the world.Subway has to deal with the export and import laws between the counties they are trying to get their supplies too. Brazil has a regulation where anyone cannot bring in beef derived from cattle administered growth stimulants, as well as colored prints for the theatrical and television market (FedEx). Subway has to make sure their beef they purchase does not contain growth stimulants. If their beef does consist of the growth stimulants, Brazil will not allow the beef into their country. International IntermediariesInternational intermediaries include the US State Department, USDA, the U. N, World Trade Organizations. In July 2006, Venezuela officially joined the Mercosul trade bloc; its full membership is pending ratification by the Brazilian congress.
China has increased its importance as an export market for Brazilian soy, iron ore, and steel, becoming one of Brazil’s principal trading partners and a potential source of investment (U. S. Department of State) Distribution Channel The distribution channel only affects their ability to re-supply their store’s inventory of raw material.
Subway will be able to ship good through the air, and overseas on ships. Once the materials arrive at Brazil trucks will deliver the material to individual stores. Action Plan Despite all the distribution laws in Brazil, Subway will have no problem getting its goods are services delivered to our different stores through air ways and overseas shipping. We plan to establish restaurants that will be assessable towards obtaining all that it required to make it run sufficiently.
Promotional GoalsThe brand name and image is the most important part of SUBWAY® business and is the key factor that will help to bring customers over and over. The target market is middle and upper class young professional that recognizes nutritional value and diversity of options. There are certain promotional goals must be achieved, and one of the first elements is to building SUBWAY® brand awareness in Brazil.
For that reason, gaining the attention of target market is vital for the success of the company. We need to rely on the local customers and tourists, thus pricing strategy is extremely important.Pricing strategy should be in accordance with a competitive advantage and correlate with promotional goals through promotional planning. Brazilian market is drenched with different restaurants and fast food stores, and it is very important that marketing and promotional strategies will touch the market in a right way.
The main slogan is “Eat Fresh” is the main idea of SUBWAY® to introduce consumer to fresh-custom-made subs and emphasize on healthier concept that SUBWAY® chain is promoting globally and in US. Business EnvironmentBrazil is a growing country with great potentials. Since the regulation became a little easier, Brazil attracts more entrepreneurs which creates more job position and have better flows of FDI. Besides the economic growth, Brazil has a beautiful weather all year around, which attracts millions of people from all over the Globe. In Brazil there are varieties of different type of food establishments that ready to accommodate the tourists and local customers. Competition is very tough; however, the demand for the entertainment and good meal is also very high.Government places tremendous effort to support local business owners and tourism, and is continuously invests in development of new sites, transportation, and roads. By providing great support to their country, Brazilian Government helps to increase amount of tourist each year, which helps country’s economic growth.
Regardless of the income differences of the local consumers, it’s varies from $600 to $2400 per month, SUBWAY’s® pricing strategy goal is to have the price to accommodate everyone. Media PlanIn order to successfully deliver “Eat Fresh” slogan to consumer, SUBWAY® should use different marketing channels. For tourists for example, SUBWAY’s® commercials and billboards could be used in the Airports, and advertising coupons and flyers on famous cultural events such as cruises and festivals. Other media plan successfully could be implemented through TV commercials, company press release, numerous discussion boards, using buses as moving bill boards, subway stations and bus terminal, local magazines and other publications.
Promotional StrategyPromotion strategy is designed to sell products though the SUBWAY® chain stores. There are many techniques available, but the most popular are the following: sales and promotions pull and push strategy, persuasive advertising, reminder advertising, TV commercials, and news papers. In a push strategy, we “push” our business and/or products toward the customers who may or may not be aware of it. On the other hand, in a pull strategy, the customer “pulls” our business and/or products toward themselves, because they are interested in learning more about it.Using a push strategy involves the active engagement of a target market through methods like advertising on relevant websites, and mail/email marketing (www.
doshdosh. com, 2010). Action Plan Learn about your target market; create a niche and more publicity by establishing relationship with local community.
Increase local consumer interest by promoting products specially tailored for consumer needs and demands. Create marketing strategy that will connect SUBWAY® brand name recognition to a product that has been promoted. At the same time, implement promotional plan attracting tourists using different marketing channels.