The Boston Matrix is a qualitative method of product portfolio analysis, created by the Boston Consulting Group. It has four categories; the star, question mark, cash cow, and dog.
The star: high market growth, high market share
The question mark: high market growth, low market share
Cash cow: low market growth, high market share
Dog: low market growth, low market share.
When applying the Boston Matrix to Subway's products, the following table can be the result.
The sweet onion chicken teriyaki sub seems worth using money on, as it is the founder's favorite. The Italian B.M.T, Tuna, and Subway Club are the three best selling sandwiches of Subway. The salads seems to fit Subway's image of a relatively healthy fast food restaurant. The Flattizas are relatively less successful to the other product lines.
Riley, Jim. "Boston Matrix and Product Portfolios." Tutor2u. N.p., 23 Sept. 2012. Web. 09 Feb. 2014.
Monday, February 10, 2014
Product Life Cycle
The product life cycle(PLC) is a basic sequence that a product goes through, once launched. Its stages are introduction, growth, maturity and decline.
In order to extend the "life" of the product, companies can use certain strategies. For Subway, there are some PLC extension strategies that could be used for certain products. As their main product line, the sandwiches, are well known and familiar enough to the public, price reduction for a limited time would be beneficial. For the relatively unknown products like the Flatizza™ line, more promotion specific to the products and the variety of the menus would help. Also, another strategy is redesigning the Flatizza™ line so that customers can customize their Flatizza™. This will well fit Subway's image as subway has a well designed customizing service for their sandwiches.
Saturday, February 8, 2014
Product
Product item : The specific item that has a unique selling point that makes it different from other products.
Product line : The collection of items that are in a particular category or similar to each other, but still different in minor parts like colors.
Product mix : Variety of types of different items.
Product range : Both variety and similarity of items
Subway's product range is not too varied, as it is mostly focusing on sandwiches. However, subway still has some alternative menus, all within a specific product line. The variety within the Breakfast line and Flatizza™ line is less in numbers, compared to the Sandwiches line's.
As Subway's signature menus are the sandwiches, it would be a good marketing objective for them to market on their other menus. Also, they could increase the diversity of each product lines to provide more choices for customers.
Product line : The collection of items that are in a particular category or similar to each other, but still different in minor parts like colors.
Product mix : Variety of types of different items.
Product range : Both variety and similarity of items
Subway's product range is not too varied, as it is mostly focusing on sandwiches. However, subway still has some alternative menus, all within a specific product line. The variety within the Breakfast line and Flatizza™ line is less in numbers, compared to the Sandwiches line's.
As Subway's signature menus are the sandwiches, it would be a good marketing objective for them to market on their other menus. Also, they could increase the diversity of each product lines to provide more choices for customers.
Monday, January 6, 2014
Market vs. Product Orientation
Market orientation is when a business focusses on market research, thus trying to understand the public's needs and wants. Then, the company tries to conform to those needs and wants, creating what the public wants.
On the other hand, product orientation is when a business focusses more on the internal research and development of the company. Doing so, the company creates what will become a need or want to the public.
Subway, in my perspective, is a more market orientated company. This is because it tries hard to connect with the customers through Social Networking Services such as Facebook or Twitter, and also has various other customer services. Also, a strong supporting point that proves that Subway is more interested in providing what the customers want, is the ordering system. Subway, unlike other restaurants, provides much more choices for customers on the menu. When ordering a sub sandwich, the customer can choose the bread, flavor, amount of cheese, vegetables, and sauce, as well as other side menus that can go with the sandwich. This is a evident effort of Subway to provide its customer their needs.
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