Fast Food market Forecast - The Subway Example of Strategic goods Positioning

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The United States fast food market has seen a healthy rise in increase within the last three years which forecasts can be sustained. The fast food market is forecast to enounce its current increase expectations, with an unbelievable compound each year increase Rate (Cagr) of 2.3% for the five-year duration 2005-2010. This is unbelievable to drive the market to a value of .6 billion by the end of 2010. Drivers of increase comprise expanding numbers of Americans in the workplace, which reduces the number of time spent on making ready meals at home. In 2010, the United States fast food market is forecast to have a value of .6 billion, an increase of 12.1% since 2005.

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How is Fast Food market Forecast - The Subway Example of Strategic goods Positioning

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Forecast Volume

In 2010, the United States fast food market is forecast to have a volume of 37 billion transactions (Figure 1). This represents an increase of 5.3% since 2005. The Cagr of the market volume in the duration 2005-2010 is unbelievable to be 1%.

Success Factors

Success factors for fast food franchisees will comprise products and marketing targeted to healthier menu selections, brand consistency, low start-up costs, franchisee support, and buyer convenience. Subway ® represents a poignant example of a fast food franchisee ready for success in the time to come fast food market. Their strategies transcend the fast food market and apply to many other markets and products.
Swot Analysis

Subway sandwich shops are well positioned to leverage their strengths and address uncostly threats, weaknesses, and opportunities. The table below highlights these Strengths, Weaknesses, Opportunities, and Threats.

Strengths

Size and number market and channels Menu reflects ask for fresh, healthy and fast. Use of non-traditional channels. Partnering with the American Heart Association. Worldwide brand recognition. Customizable menu offerings. Low franchisee start up costs. Franchisee training is structured, brief and designed to assure rapid start-up and success.
Weaknesses

Décor is outdated. Some franchisees are unhappy. Service delivery is inconsistent from store to store. Employee turnover is high. No control over franchise saturation in given market areas.
Opportunities

Continue to Grow Global Business. Update décor to encourage more dine-in business. Improve buyer aid Model. Continue to enlarge channel opportunities to comprise event wagons. Improve franchisee relations. Experiment with drive-through business. Expand packaged sweetmeat offerings. Continue to revise and refresh menu offerings. Develop more partnerships with movie producers and toy manufacturers to promote new movie releases straight through children's menu containers and co-branding opportunities.
Threats

Franchisee unrest or litigation. Food contamination (spinach). Competition. Interest Costs. Economic downturn. Sabotage. Law Suits.
Competitive pathology

Subway is not without competitive pressures. Chief competitors comprise Yum! Brands, McDonalds, Wendy's, and Jack in the Box. Yum! Brands are the world's largest, with 33,000 restaurants in over 100 countries. Four of the company's very recognizable brands, Kfc, Pizza Hut, Long John Silver's and Taco Bell, are global leaders of the Mexican, chicken, pizza, quick-service seafood categories. Yum! has a workforce of 272,000 employees and is headquartered in Louisville, Kentucky.

McDonald's Corporation (McDonald's) is the world's largest foodservice retailing chain with 31,000 fast-food restaurants in 119 countries. The company also operates restaurants under the brand names 'The Boston Market' and 'Chipotle Mexican Grill'. McDonalds operates largely in the Us and the Uk and is headquartered in Oak Brook, Illinois employing 447,000 people.

Wendy's International (Wendy's) operates three chains of fast food restaurants: Wendy's (the third largest burger chain in the world), Tim Horton's, and Baja Fresh. Wendy's operates over 9700 restaurants in 20 countries, has been included in Fortune magazine's list of top 500 Us companies, is headquartered in Dublin, Ohio, and employs about 57,000 people.

Jack in the Box owns, operates, and franchises Jack in the Box quick-service hamburger restaurants and Qdoba Mexican Grill fast-casual restaurants and is headquartered in San Diego, California.

Target Markets

The increase in sales of the sandwiches has been a effect of decreases in buyer interest in hamburgers and fries and increases in ask for healthier options. Sales of sandwiches are growing 15 percent annually, outpacing the 3 percent sales increase rate for burgers and steaks.

Current Marketing Program

A new breed of bistro is manufacture big gains against the market-saturated hamburger establishments. Termed "fast-casual," these restaurants are dominated by Mexican chains, and sandwich restaurants contribution fresh-baked breads and specialty sandwiches.

Responding to evolving buyer expectations for health, fresh, custom-made sandwiches; Subway's marketing program addresses these expectations straight through a number of approaches. The most supreme were the television commercials featuring Jared. These commercials emphasize the healthy aspects of a Subway sandwich by highlighting the 245 pounds Jared lost by eating a Subway sandwich diet. Subway also markets straight through a national sponsorship in events such as American Heart connection Heart Walks and local events such as triathlons, and children's sports teams.

The Subway example represents marketing and goods strategies that are classic examples of focusing on market demand, buyer trends, goods leveraging, and innovation. The marketing strategies of creating clear brand recognition, brand and goods association, and market demands, have strategically positioned Subway to enlarge market share into the near future. These marketing strategies are also repeatable underlying marketing strategies transcending the fast food market. Does your marketing strategy bind brand recognition to products that support your market's time to come direction?

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