MARKETING AUDIT REPORT

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 Executive Summary

The entire study is based on preparation of marketing plan that will help in proper promotion in
Australia. A particular product has been chosen for which, a promotional plan has been clearly
developed. Analysis of market has been conducted that has helped in delivering quality product
in market. Segmentation of market is a prime area that needs to be done effectively for ensuring
proper execution of business. Subway has used every strategy for bringing growth in their
business and different recommendations are provided in this study for betterment of their
business. Moreover, marketing mix as well as SWOT analysis has been done for understanding
the condition of market properly. This will aid in gaining an idea regarding Australian market
therefore, lead to add extra benefits in business. It has been recommended that by different
segments of market the value of innovations will lead to the success of meeting in the
competitive market. In addition, in order to identifying the function of marketing by improving
different fields of distribution market segmentation would play important role.

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 Table of Contents

1. Introduction ................................................................................................................................. 5
2. Audit of Market.......................................................................................................................... 5
2.1 Analysis of market using Macro Environmental Analysis Plan ............................................... 5
2.1.1 Demographic .......................................................................................................................... 6
2.1.2 Economic ............................................................................................................................... 6
2.1.3 Natural Environment of a Company ...................................................................................... 7
2.2 Technology in an Entity ............................................................................................................ 7
2.3 Political ..................................................................................................................................... 8
2.4 Cultural background.................................................................................................................. 9
3 Task Environment of a Company ................................................................................................ 9
3.1 Market Structure of a Business ................................................................................................. 9
3.2 Customers of a Business ......................................................................................................... 10
3.3 Competitors ............................................................................................................................. 12
3.4 Dealers and Distribution ......................................................................................................... 12
3.5 Suppliers ................................................................................................................................. 12
3.6 Marketing Firms and Facilitators ............................................................................................ 13
3.7 Publics ..................................................................................................................................... 13
4. Strategy of Audit Marketing ..................................................................................................... 13
4.1. Mission of Business ............................................................................................................... 13
4.2 Objectives and goals of Marketing ......................................................................................... 13
4.2.1 Recommendation Goals and Objectives of Marketing ........................................................ 14
4.3 Various Strategies ................................................................................................................... 14
4.3.1 Recommendations of marketing strategy............................................................................. 14
5. Function of Audit Marketing .................................................................................................... 15
5.1 Product .................................................................................................................................... 15
5.2 Price ........................................................................................................................................ 16
5.3 Positioning of Products ........................................................................................................... 16
5.3 Distribution ............................................................................................................................. 16
5.4 Communications and Marketing ............................................................................................. 17

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5.5 Sales Force .............................................................................................................................. 17
5.6 Recommendation function of Marketing ................................................................................ 17
6. Conclusion ................................................................................................................................ 17
Reference List ............................................................................................................................... 19
Appendices .................................................................................................................................... 22

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1. Introduction
Marketing manager has been appointed newly for a marketing audit of Submarine Sandwich
Australia for knowing the entities current plans and marketing strategies in relation with Subway
sandwiches. From secondary and primary data sources, information have been collected and
gathered. Therefore, primary data was collected and gathered both using quantitative and
qualitative methods that include Submarine Sandwich market aspects, feedback from the entity,
and statistical data from country Australia.
Main purpose of making this report is to check Submarine Sandwiches present past and future
marketing plans and strategies. Marketing Functions, Marketing Strategy, Marketing
Environment and Task Environment has been highlighted in this whole project. Some models
have been used to analyze Submarine Sandwiches marketing strategies. Recommendations are
also planned so that entity works well in marketing sector.

2. Audit of Market
As per Altarifi, (2014, p. 126), marketing audit is totally a systematic and an independent way of
analyzing and examining a company's unit. Marketing audit has many goals and objectives both
internally and externally.

2.1 Analysis of market using Macro Environmental Analysis Plan

By doing macro environmental analysis plan, opportunities and threats upon a business will be
enhanced on completely both from inside and outside. Mahdavi and Daryaei (2015, p.7) said that
by analyzing macro environmental plan Submarine Sandwiches will get know about their
positive and negative impact on the business. Analysing the macro environmental plan will not
only help to solve negative and positive impacts on business but also will give a solution on
political, cultural trends, environmental and technological trends of a growing business. The
cultural trends and negative impacts on business will give large viewpoints on existing market
structure as well as threats coming from them.

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2.1.1 Demographic
Byrnes et al. (2015, p.132) said that demographic of a market means identifying various markets
based on age, race, sex and caste. It also means market segmentation with similar and common
traits. According to Eagle and Dahl (2015, p.20) this information will help the entity whether to
hit or fall from market. Keeping in mind of young generation, Subway has introduced Submarine
Basically there are some aspects that are closely related with Subway marketing which includes:
Food taste differs among different age group of people: 20-30 years age of people are
targeted therefore their requirements are provided serious concern by subway. Age
between 20- 30 almost tries sandwiches rather than the old age persons.
 Based on Australian culture only the native people of Australia prefers sandwiches the
most
 Healthy food and understanding among educational groups: only health conscious people
have healthy foods.
 Takeaway food is also available in day and night basis for household patterns which is
only preferable for office goers and educational groups.

2.1.2 Economic
Eulerich (2015, p.132) commented that economy of a nation depends on production, distribution
and investment. Market economy will help the entity to face competition with existing business
running in market. Doing market economy survey, Subway will get more information regarding
different customer taste buds and according to this, they will launch more new food product like
Submarine Sandwiches. Beasley (2015, p.77) opined that owners are free to produce and sell
variety of product in a competitive market.
 Reasonable price of sandwich is the main customer psychology as many consumers of
middle class want to have sandwiches at reasonable prices, which they prefer the most.
 Reasonable duration of delivering sandwiches is another psychology of consumers as
they want their sandwiches to be delivered to their respective places following reasonable
durations that are on time delivery.
 Income Distribution also plays an important role here as based on Australian market
culture maximum native people of Australia prefer sandwiches as they are very curious

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 about fast food centres. Also as the income of Australian native people is very high so
they can earn more and also spend more.

2.1.3 Natural Environment of a Company

As Subway is a fast food company natural disaster is much more less than other industries
employee, who everyday work outside. As it is a fast food chain entity naturally natural
resources play an insignificant character. Subway is not perceived as a main contributor towards
pollution and thus they use very less renewable resources. Subway does not have any home
delivery options like other fast food company but does uses a less consuming electrical gadgets
and ACs inside the store.
Strengths: Subway has undertaken suitable promotional strategies and has also enhanced their
standard of food. This has made products of the venture most preferable one to every customer
of Australia. However, delivery of healthy food products is considered as another key strength of
Subway in its business environment.
Weaknesses: Subway has very unorganised way of product delivery and is very inconsistent in
providing services in its stores. Therefore, it creates a huge problem for this entity to maintain a
good position in competitive sector of fast food industry.
Opportunities: People of Australia has become very health conscious and they prefer to eat
healthy foods (Lipnická et al. 2013, p.125). This increased demand of food products has assisted
in adding extra benefits to products of business of Subway.
Threats: Competition in market is very high and other rivals are ready to grab customers at any
cost. They are trying their level best to incorporate proper strategies so that they can take a huge
leap in the run of business. This can be considered as a big threat for Subway because it needs to
survive in the chase of becoming pioneer in Australian market.

2.2 Technology in an Entity

Ersun, and Karabulut (2013, p.76) said that today technology in a company plays an important
role in developing total marketing structure. Competition will also increase similarly in industry.
Subway has come up with a new and faster way of delivery option. Many aspects are linked with
the marketing of Subway sandwiches are:

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  There is great change in social media and digital tech as it became very useful in booking
table and ordering menu.
 Many innovations have been done in digital sectors and unlimited opportunities are also
there linking with digital in all aspects of business.
 Many regulations have also been increased for a change in regulation as many legal
requirements are there for delivering process as they implemented robotic delivery unit
for the process of delivery.
 Stable increase is also there in Australian culture as native people of Australia can book
table or give orders with the help of mobile phone or by using internet. This is one of the
positive impacts with the customers of Australia and Subway.

2.3 Political
Laczniak and Murphy (2014, p.10) opined that political factors have influence in all sectors of
market. These factors affect both growth and fall structure of industry. Therefore, Subway has to
survey the political background of nation before establishing their business. Rahim and Idowu
(2015, p.37) said that negative aspects will surely low down business within nation. There are
many features that have been analysed at the time of marketing of Subway Sandwiches:
 Health regulation and store is one of the Government agencies that are implemented for
having stable political environment.
 Codex has set numerous regulations in conducting fair trade by different entities in
Australia. Codex Alimentraus commission has set the standard for food quality in
Australia that has to be followed by Subway minutely for executing business without any
political interference.
 Mainly the heated up competition of the seasons of election creates problem that brings a
negative impact in business environment of Subway. ACT has influenced Subway a lot
because it mentions that healthy foods are required to be served in Australia by fast food
industries (Cockcroft, 2015, p.66).

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  Cancer Council of Australia have indicated by detailed report theta 50% consumption fast
food has been increased due to this there is huge rise in obesity among the people in
Australia. These political conditions have impacted in Subway in Australia.

2.4 Cultural background

Wu (2015, p.578) opined that Australia is a country of numerous cultural background of people.
Cultural factors have most influence in setting up business strategies. There are many other
aspects that have affected cultural background of Australia as it includes:
 Different types of food that is consumed by the people of Australia and they prefer
healthy and hygienic foods as maximum people in Australia are very health conscious.
 Native people of Australia prefer take away food rather than cooking as in the society of
Australia people are does not get mush time in cooking so they prefer home delivery or
take away food.
 Customer’s feedback also impacts other customers and this process can help in growing
business in positive manner.
In Australia maximum number people love to eat fast foods as well as they try to consume these
foods in their daily basis. Therefore, when Subway came up with their products, Aussies became
very happy as the entity is providing them quick sandwiches which are tasty and easy to digest.

3 Task Environment of a Company

Teplov (2014, p.109) stated that task environment are very important while setting up any
business organization globally. Competitors, suppliers, customers are main people in task
environment.

3.1 Market Structure of a Business

Subway is under the market Quick Service Restaurant which provides quick and easy meal to
people of Australia. At some point of the year Subway market has fall down because of
supplying a low quality sandwich to customers. That is why sooner the market value decreases
and consumer rate falls. Lambert (2014, p.44) opined that for this growing market Subway

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automatically started producing new and tasty food product in market because of growing
customer demand.

Measurable Subway collects primary data with the help of conducting survey of the
customers that arrive at the stores.

Substantial Subway has to determine that segmentation of various data is very large enough
for justification. Enriched data has been collected for having proper justification
of segmentation.

Accessible Subway also approved many store locations that are basically based on number
of factors including assessing the internet connections in restaurants. Majority of
stores in Subway are in maximum density areas.

Differentiable Different stores are being set up especially in front of schools, universities and
office areas. Subway understands the basic segments as they are required to be
separated for having various types of marketing.

Actionable Subway has been trying to meet all criteria and for this reason it has become one
of the major competitors in market.

3.2 Customers of a Business

Subway has already surveyed Aussie customers’ taste buds. According to Gerakos, and Syverson
(2015, p. 725) said that they have started making delicious sandwiches. The entity has therefore
made gluten Submarine Sandwich gluten free, as they are very much aware of some young
generation taste buds. The actual monitoring is needed before attempting the market
segmentation as what has done by Subway.

Geographic Geographic region Melbourne, Australia.

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 City Industrial suburb
Climate Four season Australian climate
high
Density

Demographic Age 20-30

Family size Big and small both including children
Family life cycle Young and adults
Gender Male and female both
Income $50-$140
Education Highly educated people
Occupation AI group
Religion Christian
Race Anglo Christianity
Generation Present generation
Nationality Native Australians
Social class Working and studying

Psychographic Life style High income as well as medium income people

Personality Fun loving

Behavioral Occasions On every special occasions

Maximum Regular customers
Benefits Robotic delivery thereby ensuring high speed delivery
User status Active
Usage rate Rate are High
Loyalty status Very loyal based on services provided
Readiness stage High buyer
Product attitude energetic

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For more detail, refer to Appendix 9:

3.3 Competitors
Growing competition globally has made Subway entity to face competition with other food
industries throughout the world.

Market leader Subway

Market challenger Dominos

Market followers Pizza Hut and KFC

Market Niches Baker’s Delight

3.4 Dealers and Distribution

Subway has many dealers within the city. Subway distribute with their own employees. No other
distribution channels have been made to supply product.

3.5 Suppliers
Subway not only owns main objects but also have a large market share in other sectors. They
have huge demand in the market but they are unable to differentiate their products. Suppliers are
supplying their products but the entity could not collect products for which chaos have been
created in their business. Therefore they try to use favourable mediums for collecting products
from supplier

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3.6 Marketing Firms and Facilitators
Subway use Linfox for supplying of food. If Linfox could not have there then Subway might
have fallen down in the market. Linfox has made Subway more popular globally and because of
the bus, service entity has opened many branches around the world. Due the entity strong
performance in market, they use various methods of financing debit and credit cards as well as
balance sheets.

3.7 Publics
Djakeli (2014, p.37) said that Subway has maintained a strong customer base globally but has
failed to grab the market of Australia that is why they implemented those steps for growth in
Australian market. This popularity has increased due to providing gluten free and cheese free
Submarine Sandwiches to people. The company has seen a high growth structure in market due
to opening up branches in so many countries and states.

4. Strategy of Audit Marketing

Subway has a very strong strategy of marketing that are functioned in a well manner.

4.1. Mission of Business

Business mission of Subway has stated clearly that there are various terms and conditions that
should be focused at marketing time. Main mission of the entity is to sell more sandwiches by
understanding proper marketing strategy that are focused on huge growth that is what Subway is
currently in process.

4.2 Objectives and goals of Marketing

Marketing objectives of this entity are more appropriate that are based on the factors of leaders
of market also market challenges in best service restaurant sector. Subway also invested very
actively in advance methods to optimize organization planning to make and deliver sandwiches
as well as interact with customers. It has also maintained specific time period for making
position in market, available resources that includes many financial features and opportunities
are available for Subway. As stated by Kantudu et al. (2015, p.34) marketing perspectives and

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transition of companies have also processed form starting an awareness for others being brand
ambassador.

4.2.1 Recommendation Goals and Objectives of Marketing

Subway has performed very strongly in the market share. As recommended by Cook et al (2015,
p.18) recommendations and strategies of market objectives, goals are performed for continuing
with the present types of customer management.

4.3 Various Strategies

Subway has basically focused upon their communication as well as marketing strategies for
ensuring quality services to people. This venture has tried to improve their communication
process with purchasers, as it will aid in bringing more efficiency in their work. Subway has
clearly stated a marketing strategy as efficiently building restaurants that require footage of less
square also implementing various types of options of ordering food through digital system for
achieving objectives of marketing. As referred by Banterle et al. (2014, p.131) many
demonstrations have been done for performing analysis in detail manner that are presented in the
report.

4.3.1 Recommendations of marketing strategy

Many strategies have been implemented including happy hours can be implemented by giving
40-50% discount to customers. This entity can do that with the help of promoting in social media
also by sending anonymous mails to customers. Brand endorsement can also be done for
ensuring success in business. Subway is currently known as very stable brand in the market. It
also appreciates that at a level of product has been done physically with reasonable price and
delivering the Submarine Sandwiches so it is combined the product with digital and enhancing
the optimization the experience of customers. Subway is also utilizing many positive tactics
against the competition of market by investing its strength that is innovation, which is very open
up plan of external activities or opportunities.

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 Groups Involving in Marketing Marketing Metric

Finance and Marketing Profit Margin

Marketing Goals

Sharing of hearts of markets and minds Expansion of Benefits

Market promotions

Recognition, viewpoint and utilization

Management Portfolio and products Percentage of extension

Customer
Buyers and holding

Consumer agitation

Total percentage of supporters and attackers

5. Function of Audit Marketing

5.1 Product
As explained by Igo et al. (2013, p.1919) objectives of product line are to sell submarine
sandwiches in such a way that it can provide business. They have undertaken the strategy of
Five product levels for providing quality services to customers with the help of inventing
different innovative products. They have used five-product levels shelf to lives the quality of

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products from the core benefit to potential product. Similarly, they have also focused on the
expectations and the argumentations associated to the product.

Refer to Appendix 8:

5.2 Price
Quality products at cheap rates have been provided by entity to each section of customers.
Buyers see values of products with the value it offers. Subway has conducted a proper analysis
of market so that it can be able to set a suitable price of their products. This will help in
increasing numbers of customers. In comparison to prices of other competitors, this company has
set a reasonable pricing strategy for their products in their business. Subway bases their prices on
the belief of its customers and in valuable cost. Opined by Broberg et al. (2014, p.23)
demonstration has been done for standard range by increasing the quality of meat so that
discounts can be offered in bundles.

5.3 Positioning of Products

Subway has used suitable strategy of positioning their products. This venture has positioned their
products in the most business place of Australia where the attention of target market can be
easily grabbed. This has assisted a lot in enhancing business profits and increase growth revenue
of this enterprise. Transportation of raw materials are done in a very proper way that is why,
outlets are inaugurated in places, which are connected by every mode of communication.

5.3 Distribution
Distribution of business has been done with the help of franchising policy. Existing business
market can be analyzed through franchising policy. Therefore, it proved beneficial for subway.
Distribution has been done mainly in each outlet. Stated by Frösén et al. (2013, p.737) stores
positively are standard from the management of operations that is very much perspective in
nature. Products are then distributed from stores with the help of delivery.

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5.4 Communications and Marketing
Subway also utilizes various numbers of communications that includes competition with other
rival companies. Subway has focused on various communication media also focused on activities
of the customers so that they can calculate, which media should be the best choice for them
(Altarifi, 2014, p.126).

Refer to Appendix 7

5.5 Sales Force

Subway is now known as the most valuable brand as the Subway’s objective of selling force also
increases more awareness about the improvements in services and products. It always includes
various types of advertising of GPS driver tracking process not about of how sandwich tastes as
this has been established. Sales force of subway can also be compared with many other fast food
companies that are integrated due to proper marketing model of subway operations of marketing.

5.6 Recommendation function of Marketing

However, Subway leaves no stone unturned while marketing, yet they lag behind in gaining
attention of buyers. It can be recommended that this venture can use eye-catchy tag lines while
advertising in different areas. Moreover, it can also undertake different social campaigns so that
people can remain aware of different developments that are being done in Subway.
Recommendations has been done by different segments of market that provides the value of
innovations with the success of meeting the competition market for identifying the function of
marketing by improving different fields of distribution.

6. Conclusion
Subway is an Australian business that has a deep understanding of Quick service Restaurant in
Australian market. The level of innovating ideas is very impressive in nature. It was also
identified that subway is the main market leader in Sandwich sections of Quick Service
Restaurant in Australia. Many recommendations have also been done in this chapter for
providing the total feedbacks of price in subway so that there will be no competition in the future
market. Various tools and collection of important data has been done for better marketing plans
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with proper success. Many recommendations are also included for stretching the products for
creating another competition, which is similar to this company for identifying the innovations for
delivery.

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Appendices
Appendix 1: Porter’s Five Forces

Appendix 2: BCG Matrix

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Appendix 3: SWOT analysis

Appendix 4: Brand Positioning

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Appendix 5: Market Responses

Appendix 6: Market segmentation

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Appendix 7: Setting Marketing Communication Mix

Appendix 8: Five Product Levels

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Appendix 9: Marketing Segmentaion Statistical Presentation

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