Case 3-Subway

In: Business and Management

Submitted By rebeccasms
Words 792
Pages 4
BA 640
Case Memo 3

Subway’s Entry into the Japanese Fast Food Market

1. Background: * 1st store opened in Connecticut, 1965, began franchising in 1974 * Marketing strategy-healthy fast food option * Jared the Subway guy-spokesperson * 18000 stores in US, committed to international expansion * Looking for ‘high potential’ markets, ie. dense population, economic and political stability, preference for fast food options, disposable income * Very sluggish growth in Asian market

2. Japanese Food culture * Popularity of junk food * Smaller portions * View healthy food in terms of purity, organic, quality of ingredients * Local food is traditionally very healthy (rice, fish, vegetables, ect)
3. Competitors | # of stores | Pricing strategy | Advertising strategy/Brand Position | Target Market | McDonalds-market leader | 3000 | 100 yen menu, 500 yen basic set menu | Heavy TV advertising, seasonal product launches, low pricing strategy, local tastes (ie. Teriyaki burger) | Total market, plus children | Mos | 1435 | Higher prices, burger sets at 600 yen | Emphasis on quality, seasonal ingredients, burgers cooked to order, salad options, “Miffy” character | Women in their 20’s-30’s | Yoshinoya | 1031 | 300 yen and up | Traditional Japanese fast food, sells gyudon. Fast, cheap, convenient, 100 years of ‘tradition’. | Male students and workers | Starbucks | 702 | Sandwich 380 yen, coffee 250-330 yen | Convenience, relaxing atmosphere, coffee break time | Young people, women, office workers | KFC | 1159 | Set menu 750 yen | Take home options, heavy TV advertising, image of freshness, ‘home cooked’, hospitality | Family market | Mister Donut | 1284 | Very cheap, 100 yen doughnut sales | TV advertising, handout discount vouchers, famous Japanese promoters. Doughnuts, noodles, pork buns | Young people, students,…...

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