Subway
Customer Loyalty and Evaluating Marketing Strategies
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Dr.Lalita Mishra, Guest Lecturer, Govt. Krg.Pg College Gwalior [M.P.] India
Abstract
Purpose- The major consideration of this research was the chain restaurant industry, and its underlying principle was to
(1) establishing which factors manipulate relationship excellence and customer loyalty development. (2) Observe the
relations between relationship quality and loyalty. Based on the literature review, five proportions influence restaurant
consumers behavior: service quality, food quality, price, location, and environment. Speculative relationships between
attributes influencing consumers behavior, relationship quality, and loyalty were consequential from the literature review.
Methodology- This research is based on data collected on Subway and its food chains. The decision from establishing
customer loyalty between customers, this research helps to understand how we can treat to our customer and give then
satisfaction.
Finding-Data analysis identifies that the following 5 characteristics influence loyalty building, with impact intervene by
relationship quality. These also leverage customer satisfaction by building loyalty and enhancing their trust level.
Moreover, service quality is such an aspect that directly or indirectly affects the trust level, and its impact is also stronger
as compared to other attributes. Managerial suggestions are discussed.
Values- This research is helps to established customer relation, customer satisfaction and also customer loyalty. By these
factors service quality is also improve and companys growth become rise.
Future work- The future work is based upon that how we can improve our growth by retaining customers; by giving well
kind of service quality by which they feel satisfaction from the service quality of company.
Keywords: Customer loyalty, customer satisfaction, product and service quality. Marketing strategy.
Introduction
Subway chain is a fast food chain that comes at third
position globally which comes after McDonalds and
KFC. This company came out to be established in 1965
and the originator of the Subway food restaurant was
Fred De Luca, and he was so thoughtful to start is
restaurant business when he was only 18 years old. First
and foremost store was established in Bridgeport,
Connecticut. The founder of Subway almost
immediately cultured the fundamentals of management
in a business, in addition, the significance of allocation
as a well-made, high eminence item for consumption, on
condition of the outstanding customer service and
keeping operating costs low simultaneously by
discovering immense position. Such kind of
inventiveness sustained in serving the groundwork for
prosperous SUBWAY restaurants internationally. There
are in excess of 36,467 Subway restaurants nearly 100
countries globally and also it can be said as the worlds
greatest intensifying authorization succession. This area
monopoly sequence has occupied more than 173,432
inhabitants (Subway 2011). Subway offers many
different kinds of fresh marine sandwiches also known
as subs to their customers. Everything I decided by the
consumers s which kind of a product they want to have
in the services The companies motive is to provide the
fresh products, slogan of company, Eat Fresh which
says, Subway chain uses only a moment ago baked bread
and fresh constituents. Since a very long time the
Subway tried to make every efforts in the markets to set
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Methodology
a)
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EFFICIENT
0%
3%
HEALTHY FRESH
10%
12%
CONVENIENT
5%
BRAND IMAGE
0%
WESTERNIZED
50%
HIGH END
20%
Figure 3: Brand image of Subway
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THREE- FOUR
22%
ONE-TWO
68%
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SATISFACTORY
0%
9%
POOR
8%
EXCELLENT
45%
GOOD
38%
RECOMMENDATION
MAY BE
30%
0%
YES
50%
NOT
20%
Figure 7: Recommendation
7. What do you think of competitive positioning and
strategy about Subway?
a) Excellent (37%)
b) Good (23%)
c) Poor
(7%)
d) Satisfactory (33%)
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COMPETITIVE POSITIONING
AND STRATEGY
0%
_________________________________________________________________________________
SATISFACTORY
EXCELLENT
37%
33%
GOOD
23%
POOR
7%
Figure 8: Positioning
8. How will you rank Subways in terms of healthy
product offerings?
a) Excellent (38%)
b) Good (22%)
c) Poor
(12%)
d) Satisfactory (28%)
Out of 100 respondents, almost 38 respondents rated
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10. How to earn customers loyalty and how important these factors are?
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11.
Do you like to visit your nearer Subway
again?
a)
59 % yes
b) 20% may be c) 21 % no
Here we can see that 100 out of 59 customers want to
visit again to our Subway branch. Whether 20%
customer says that they can also visit other branch too so
there is a case of may be, they can visit again.
13.
Are you completely satisfied with our restaurant
as overall?
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(a)
other
18% no
(c)
5%
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like
restauranttoo.
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16.
How do you rate responsiveness to dealing with
customers?
(a)
Excellent (48%) (b)
Good (27%)
(c)
Poor (14%) (d) Satisfactory (11%)
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Exterior Analyses:
Pest Analysis
Financial Performance
SUBWAY Market Value Forecast Year (2005-2010
Table 1:
Year
Value (Billions)
Growth%
2005
51.4
3.6
2006
52.8
3.4
2007
53.4
3.3
2008
55.0
3.4
2009
56.4
3.6
2010
57.6
3.1
Competitor Analysis:
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Political Factors
Political factor which consist of government policies and
legal issues. The firm must operate the official or non
official rules which also consider the employment laws,
environmental regulations, trade restrictions and political
firmness.
Economic Factors
This factor basically affects the buying power of
customer and also the firms cost assets. For example the
macro economy has interest rates, economic growth,
exchange rates and inflation rate.Social Factors
This factor affects the customer needs and size of the
possible market. These are demographic and incorporate
with external macro environment. Some social factor
includes health awareness, population growth rate, age
distribution, career attitudes.
Technological Factors
These factor obstacles to entry, decrease minimum wellorganized production levels, and manipulate outsourcing
decisions. Some technological factors can be mentioned
as research and development activity.
Situation Analysis
This factor explains the problem occur during
establishing a company and existing company. So in this
factor we need to do a deep or better analysis for
understand a company, your competitor and all the
situations which can possibly happen with you and your
company.
In the international fast food market the growth of
Subway food chain is raising their healthy food
environment, their subs known as a healthy wealthy fast
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Competitive Analysis
The basis of investigating competitors is to try and ask
what they will do. This will make easy the organization
to respond consequently. Sometime as a point of
reference competitors is regarding to the competitive
position; competitors are sometimes used as point of
reference (CIM, 2005).Subway is not without
competitive difficulties, major competitors including
KFC, McDonalds, Pizza hut. KFC and Pizza hut are the
world largest with 33,068 restaurants in over 98
countries.
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SWOT Analysis
---Nevertheless,
since marketing is such a multifarious
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d.
Recommendations:
In this strategy model, the franchise companies do not
issue the license to a latent franchiser to open a new
store. By lowering the franchisers risks by relocating
store that has stable internal operation, store executive,
loyalty consumers, and also provide them commercial
money making. Second, the company has better service
product, quality in their service and control over the
store management of individual chain stores. On the
other hand, if franchise wants a store license as soon as
possible to open their store, the company help them for
locating the store, commodities supplies, personal
training too. Franchise model using most of chain
27
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Department
of
Management,
Faculty
of
Management and Human Resource, Consumers
Purchase Intentions in Fast Food Restaurants: An
Future Work:
Empirical Study on Undergraduate Students.
The_________________________________________________________________________________
research is based upon the collection of data,
[16] the determinants of customer loyalty: an analysis of
marketing strategies and also about the types of
intangibile factors in three service industries
customers. The whole research helps us to retain
[online]. Publication: International Journal of
consumers by providing them good quality of services
Commerce & Management
and products. In the future work is only depend upon
[17] Michael Mccarty, 2010,Fast Food Market Forecast this, the thing may change by changing of market status
The Subway Example of Strategi
Product
and their values.
Positioning
[18] Werner Reinartz, 2002, Harvard Business review,
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