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subway Presentation

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    . Communication- Transfer of ideas.

    Marketing communications means by which firms attemptto inform, persuade, and remind consumers directly orindirectly about the products and brands they sell.

    The project is all about designing an integrated marketingcommunication programme for SUBWAY Ranchi.

    SUBWAY, the sandwich specialist from America is now openat JD HIGH STREET MALL, Ranchi.

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    . Integrated marketing communication (IMC) is the

    coordination and integration of all marketing communicationtools, avenues, and sources within a company into a seamless program that maximizes the impact on consumers and otherend user at a minimal cost.

    Tools of IMC- ADVERTISING, SALES PROMOTION, DIRECTMARKETING, PUBLIC RELATIONS PUBLICITY, PERSONALSELLING WORD-OF-MOUTH-MARKETING.

    Tools we are using for our IMC program are advertisingthrough print media, outdoor media, electronic media, event promotion etc.

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    INTRODUCTION

    Biggest fast food chain in world

    One of the fastest growing franchisees in world with 34,751restaurants in 98 countries.

    Fred Deluca co founded it with peter Buck in 1965.

    Owned and operated by Doctors Associates Inc.(DAI)

    Bigger than McDonalds in US.

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    PRODUCTSBest known sandwiches both national and international favorites includes veggie patty, paneer tikka, aloo patty,chicken meatball, roasted chicken etc.

    Other item includes breakfast menu such as baked bagels,eggs and sausage sandwiches.

    Personal pizza are made up on order.

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    ADVERTISING AND PROMOTIONS

    Uses advertising slogan EAT FRESH.

    Slogan explains sandwiches are made from freshly bakedbreads, using fresh ingredients in front of customers to theirexact satisfaction, by employees.

    Has used INSTANT WIN COMPETION BASED ON GAMESCRABBLE as one of the promotional events.

    Has PRODUCT PLACEMENT television advertisementcampaign for US series.

    *www.subway.com

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    FRANCHISING STRATEGY

    Privately held and still led by its founder

    All outlets are franchised and follows unconventionalmethods in approaching customers.

    The company sign up multiple small franchises, unlikeMcDonalds and most other chains,

    8000 outlets in non- traditional and unusual location suchas goodwill store & automobile showroom.

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    MAJOR COMPETITORS

    LOCAL FASTFOOD JOINTS &RESTAURANTS

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    FAST FOOD INDUSTRY IN INDIA

    Growth rate of 25 to 30 % i.e. INR 11 billion for IndianOrganized Food & Retail Sector.

    Indian fast food market is valued at $1 billion approx.

    Subway faces intense competition from Mc Donalds becauseits food safety, hygiene and quality standards.

    While Mc Donalds focuses on kids selling burgers and Icecreams Subway put emphasis on HEALTHY EATING HABITStargeting young and working class.

    *www.wikinvest.com/industry/Fast_Food_Restaurants_%28QSR%29

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    REASON FOR GROWTH IN INDUSTRY

    Rising trend due to globalization and increase in disposableincome.

    Greater exposure to multiple cuisine .

    Change in lifestyle and keen interest in experimenting with food.

    Change in the working culture.

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    OPENING OF SUBWAYReopening it in famous hi-street mall in Ranchi.

    Relaunch with reduced prices.

    Needs aggressive marketing and promotional campaign for itsEAT HEALTHY awareness.

    Immediate competition from Dominos and other fast foodrestaurant chains in Ranchi.

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    TARGET MARKET

    Subway identified its target market as :Demanding Young People Who Know Their Own Minds

    Between the age of eighteen to thirty-nine

    The youngsters expecting alternative food culture

    Target audience whose eating habit is irregular and indentedto choose what ever they want

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    BRAND DIFFRENTIATION Subway differentiates itself in term of healthy sandwiches as an

    alternative to fast food

    Products like providing no oily food, fresh tomatoes, mayosand other items

    Providing a healthy fast food at lunch and dinner timingreduces the effect of increasing the weight

    Customised Menu

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    SWOT ANALYSIS

    STRENGTH

    Experience of operating inover 91 countries.

    Offer subs and salads andall bread made dailyStrategically positioned newoutlet in Ranchi

    Develops local tasteTarget market is each andevery one especially theyoung student population inRanchi

    W E A K N E S S

    Ranchi population has notyet developed much taste for the western cuisine.Prices, though loweredmight still sum high to themiddle class of Ranchi.People wont be ready to pay Rs.75 for a sandwich.Suspect hygiene issue

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    . OPPORTUNITYIncreasing consumerismin Ranchi among youthand emerging middleclass.Not much competitionon the kind of productoffered.EAT FRESH campaigncan attract rising healthconscious population inRanchi

    THREATS

    Domino's and CCD havebeen here since long andhold advantage in marketSmall outlets offering such product at lower price canthreaten its existence.Ranchi market may discardthe idea of healthysandwich because of thegeneral prevalent notionamong Indian populationthat junk food is bad for

    health

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    45

    25

    20

    10

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    3530

    10

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    101520253035404550

    Restaurant Fast Foodoutlet Coffee andLightsnacks joint

    StreetFood Stalls

    1st CustomerPreference

    2nd CustomerPrefrence

    CUSTOMER PREFERENCE

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    MARKET OBJECTIVES To increase brand awareness by 10%

    To increase product awareness by 15 %

    To increase healthy fast food preference zone by at least5-10%

    To capture a substantial percentage of market of both fast

    food market and also coffee and light snacks joints(productsoffered being of the same category )

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    COMMUNICATION OBJECTIVE

    To create and stimulate interest and awareness, that is, to lettargeted consumers know about the brand SUBWAY and its product and service offering and where to find it.

    To convince customers, that SUBWAY products or service will provide the best value to customers, compared to itscompetitors.

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    . To position SUBWAY as a provider of healthy fast food snacks

    in the mind of the customers. Also to use its EAT HEALTHYcampaign to reinstate the importance of healthy eating habitsin modern life.

    To motivate the customer to take action, i.e to try the products of SUBWAY initially to increase customer trafficwhich can later be converted to a force of brand loyalcustomers.

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    OBJECTIVE AND TASK METHOD

    IMC BUDGETING IS BASED ON THE METHOD EXPLAINED:

    1) Defining specific objectives

    2) Determining the task to achieve these objectives

    3) Estimating the cost of performing these tasks

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    STEPS IN DETERMINING THE BUDGET

    Establish the market share goal:

    Total Population of Ranchi as per Census 2011: 29,12, 022

    Total literates (both male and female): 77.13%,i.e. 19, 46, 726

    *www.census2011.co.in/news/403-ranchi-census-2011-highlights.html

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    .Taking the location, income and preference as constraints,

    the estimated market size

    Overall market size in terms of consumer be,. 12,00,000(assumed)

    Let our target market share be 20% of the market size, i.e2,40,000

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    .Determine the percentage of Target Market that should bereached by advertising

    We hope to reach 80% (1,92,000 prospects) with the IMCcampaign

    Determine the percentage of aware prospects that shouldbe persuaded to try the brand

    Our survey showed 65% of the target market are aware of

    the brand subway. In figures that will be, 1,24,800

    Now if we want 40% of the aware prospects to try our product, that would be 49,920

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    .Determine the number of advertising impressions per 1%trial rate

    We estimated that 15 advertising exposures for every 1% ofaware prospects (1,24,800) will bring About the required 40%trial rate.

    Determine the number of Gross Rating Points to be purchased

    Gross rating point is the cost of 1 exposure to 1% of the target population.

    In our case, 15 exposures to 40% of population. We need tobuy 6 Points for 1% population. In all 600 Gross Rating Points for all the target population.

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    Determine the necessary advertising budget on the basis ofaverage cost of buying a gross rating point :

    To expose 1% of target population to 1 impression costs Rs 1800(assumed), hence 600 gross rating points would costRs 10,80,000 in the introductory year.

    So for the period of 3 months( Nov-Dec-Jan), we can assume thebudget to be Rs. 6,00,000 approx.

    *Reference: Marketing Management by Kotler

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    MEDIA PLANNING

    .

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    Media Selection And Strategy The media mix comprises of :1. Outdoor Media [Hoardings]:

    a) Proper location chosen to cater to the local and youth population.

    b) Cost effective with high repetition rate.c) Act as constant reminder of outlet position in festive

    season and weekends[high traffic seasons].d) Hoardings to be placed at beginning of Xaviers college

    Road, Upper Bazaar crossroad.e) High Reach but Frequency is a matter of visibility. f) Hoardings at Xaviers road cover youth from BIT Mesra,

    Xaviers college and XISS . & Upper Bazaar covers theworking class and health conscious mothers.

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    .2. Newspapers:The Hindustan Times supplement BRUNCH -[specializedsection on Sunday covering topics like Food, Health andWellness and Lifestyle] is chosen to cater to our objective ofincreasing awareness about healthy eating habits and abouthealthy fast foods.

    a) If we prefer package offer in advertising of HindustanTimes Jharkhand section then it will give additionaladvertising in Hindi Hindustan.

    b) Reach : Second highest viewership & daily circulationaround 17 00 000 copies [certified by Audit Bureau ofCirculation] & Readership of 2.2 lakhs readers as perthe Indian Readership survey (IRS Q1, 2011)

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    .c) Mass coverage with Low cost and choice of ad position.

    d) Frequency of ad maintained ,so short lead time of ad placement.

    Also, Times of Indias local supplement Ranchi Timeswould be advertised in. It contains a special youthappeal.

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    .3. Leaflets & Coupons :

    a) Cost effective.b) Leaflets could be passed by simple distribution

    system with frequency of 1000 leaflets distributedover a period of 15 days.

    c) Lead to trial purchases and ensure initial traffic.d) Inform about price reduction offers.e) Immediately redeem the coupons while the

    purchase is made.

    f) Leaflets will be distributed by sale force appointed.g) Detailed information provided.

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    .4. Radio:

    a) Radio mantra 91.9 FM, Life ka mantra . b) The preference by music lover youth and working class in

    Ranchi.[our target market]c) Pan India listenership of 5.37 million

    (ref. radioandmusic.com) reaches 95% youth populationin Ranchi.

    a) Focuses the age group of 14 to 35 yrs.b) Target programs: Prime time programs like Tea stall

    c) (Morning) and Mera Wala Hit ( Evening). The theme andappeal of Radio Mantra very well goes with our Theme ofSubway.

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    . f) Repetitive ads to aware and persuade and even cause psychological influence and create preference towardshealthy fast foods.

    g) Repetitive ads from 1 st Nov [anniversary of RadioMantra] which will continue from Monday to Friday onevery week for 3 months.

    h) Short lead time.i) Radio is mobile i.e. it could be carried and listened

    anywhere and even heard at offices. j) Low cost of Radio Mantra as compared to other radio

    channels in Ranchi.

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    .5. Internet:

    a) Its a media used with negligible cost. b) We are targeting the all youths who are available on

    social media like Facebook & Twitter.

    c) There are 7200 Likes of High Street Malls on Facebookso any wall post about Subway on this official page willreach the 7200 youths and those who might connect withit in future.

    d) New information on discounts/offers could be placed aswall post conveniently and quickly.

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    .6. Alternative Media:

    Targeting Fest and installing stalls at major fest like Pantheonand BITOTSAV [BIT Mesra] and Panache [ XISS] . Stalls will beset on promotional basis and discount coupons will be givenwho purchases from it. They will be given customized menuto attract the youths attention towards healthy fast Foodsand according to your choice of ingredients.

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    Media Budget

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    *To be played on Eylex and Glitz before movies during evening shows, for 3 months, as per

    the budget assigned.

    *20 sec

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    Creative Strategy

    Creative Brief of Subway:Key Fact:Subway is the biggest food chain in the world though theconcept is relatively new for the population of Ranchi.

    Problem the campaign must solve:Low awareness about the brand. Also, the products, thoughdoing great in metros, have not yet has been accepted in citieslike Ranchi.

    Prospect Definition:Youth, working professionals, health conscious middle andhigher middle class

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    .Principle Competition:Mainly unorganized sector, small restaurants etc. In organized

    sector, mainly Dominos and CCD.

    Key Promise:To increase awareness, gain acceptance and promote trial.

    Reason:Healthy substitute for fast foods. Totally new concept in thismarket.

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    BIG IDEA

    Eat Fresh

    Eat Healthy

    Endless Fresh Creation...

    Discover The Flavor

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    Advertising Campaign B I L L B O A R D S :

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    NEWSPAPER

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    RADIO 1st Friend: WowYaar such a cute dress! Kash ye mujhe fit ho

    pati par ye fast food resist hi nahi kar pati. 2nd Friend: Hey.. Dont u know! Tum apne pasand ke sare

    desserts and sandwiches kha sakti ho wo bhi withoutworrying about health.. And price too fit in our pocket And

    ye sab ab available hai Subway, Ranchi me. 1st Friend: Really?? Tab to main pura menu yaha ja ke try kar

    sakti hu. 2nd Friend: Now health, hygiene and taste all in one bite...A

    sub for every day.. Both: When its your way, its subway.. Eat fresh

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    RADIO AD SCRIPT

    RA DIO JINGL E:

    Life too busy and no time for lunch?

    And what once was tummy is now just a paunch?

    Looking for a healthy yet rocking life style?

    So try our new menu and wear a smile.

    With taste so rich, it'll make your hearts sway

    To eat fresh and eat right, come to subway.

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    LEAFLETS PAMPHLETS

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    DISCOUNT COUPONS

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    INTERNET LINKS AT FACEBOOK & TWITTER

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    ELECTRONIC MEDIA

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    References

    Indiabiznewz.com Telegraphindia.com Exchangeformedia.com Auditbeauroofindia.com Releasemyads.com Indianreadershipsurvey/IRSQ1, 2011 Hindustimes.com Radioandmusic.com

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