International Marketing (Qasim) Essay Example | Topics and Well Written Essays - 2500 words

International Marketing (Qasim) - Essay Example The key products offered in Subway include: custom sub sandwiches, salads, soft drinks and some other food items (Ibis Report 2013). Company’s rational behind internationalization The company’s strategy is based on the aggressive international expansion worldwide. Internationalization decision is mainly based on the business growth opportunities offered by rapidly growing markets. Subway will continue to expand internationally, especially in emerging economies as it is likely to be the largest source of profit and revenue growth (Ibis Report 2013). Today, these markets include markets not yet saturated with fast food brands (Russia, the United Arab Emirates, Brazil, China, India (Fertman n.d.). Mode of entry-selection of market entry strategy to enter into various countries Subway restaurants chain has chosen franchising option as a mode of entry strategy for starting business in various countries. Initially, the Subway chain did not even select new countries to expand into, as entrepreneurs from these countries contacted Subway (Welch et al, 2008). The original foreign entry in 1986 had a following typical format: individual entrepreneurs contacted the restaurants chain from a country where there were no Subway locations, and then the development team worked together with the entrepreneur, providing assistance in opening a franchise restaurant under Subway brand (Welch et al, 2008, 61). Thus, the company transferred the method of operation to the franchisee and had a much greater degree of control over its marketing efforts in a foreign market (Lecture notes). However, nowadays, Subway is also searching actively for new markets. Business Development department of Subway determines which markets would be appropriate to entry by evaluating a number of factors, including: the cost of doing business, the GDP, fast-food development and some others, etc. By operating as a franchising chain, Subway as a franchisor experiences less risks and is capable t o penetrate various markets very rapidly. Besides the obvious benefits and advantages of the franchise concept, Subway is imposed to certain risks as well. The value of the brand, either increasing or decreasing will have effect on the franchisee competitiveness. Franchisee of Subway has a number of responsibilities, including: initial franchising fee, finding locations, hiring employees and operating restaurants, leasehold improvements and equipment and paying a fee into the advertising fund and 8% royalty to the company (Subway Global Brochure 2013, 4). Subway also has certain responsibilities, such as: providing access to operational systems, guidance on store design and equipment ordering, operations manual, training program, R&D, ongoing support and periodic audits, and informative publications (Subway Global Brochure 2013, 4). The marketing mix strategies adopted by the company There are recognized several key elements of international marketing mix, including: product support , price support, promotion/selling support, inventory support, distribution support, service support, and financial support (Lecture notes). Below are briefly evaluated all these elements with a reference to Subway restaurants chain. Product support. Even though the product line and customer service are standardized among all Subway restaurants as it is common for any franchising chain, there are cultural and local eating habits in particular country that require adaptation