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Subway's marketing strategy in USA and India: USA is the founder country of subway, doing business successfully since starting. Later the business spread in different countries of the world. Now they are doing successful business in India as well. The marketing strategies are not same in both countries. The strategies defend on business environment. The domestic business environment such as political, economical, social and technological factors impact on business. The different strategies could be further advise for Subway in target of successful business in USA and India.
Product strategy: In some cases, the same product developed for USA can be sold in India, But usually products have to be altered to meet conditions in India. In some cases company can't modify existing products to fit the needs of foreign country, in this case company develop new products. Subway producing non-veg products in USA and they are well accepted by the customers. With the same products company can't do success in India because of vegetarian customers. If the company make vegetable sandwich instead of chicken, beef or fish, they can make market easily. The company should avoid producing beef made product in India as most of the people are Hindu, they do not accept beef. So company should produce the products according to customers need.
Price Strategy: The price of a product is usually different in domestic and foreign market. Price usually depends on cost of foreign trade, such as taxes, tariffs and transportation (Cateora, P and Graham, J 2012). Exchange rate also influences in pricing. Sometime company establish lower price in foreign countries intentionally. The practice of selling surplus products in a foreign country of origin is called dumping. This practice is illegal in USA but Subway can do this practice in India. The pricing strategy will be set by considering customers income.
Place: This is a set of activities concern with transfer product from seller to buyers (Lancaster & Reynolds, 2003). The place choice also differs in different country. Subway is a multinational company doing business in more than 100 countries in the world. So, they should the appropriate place for each country. In USA Subway selecting the place by considering competitors, localization etc. In India the company need to focus on urban area, because the rural people can't afford the Subway's products.
Promotion strategy: Many companies use the same message worldwide to inform customers about products and persuade them to buy ( Meldrum, M and Melcolm, M2009). Uniform promotion, including advertisement and publicity, enables firm to gain recognition throughout the world. For promotion success, promotion must be modified because language, laws, culture differ from country to country. Subway made all the advertisement for USA in English language and by following their culture. This advertisement is not accepted in India as most of people does not understand English. Some of the promotional activities do not accepted because of cultural change. So promotion activities should be processed according to domestic language, law and culture.