Post on 30-Oct-2014
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SubwayBy:Sarah Ellis
Background Founded in 1965 by Fred DeLuca Changed names 3 times before settling
on Subway Over 34k franchised locations
Surpassed the number of McDonald’s Operates in more than 95 countries
Frame of Reference
Target Customers
Benefits Price
Healthy Eaters/Losing weight
Fresh food/Low calorie/fat
12% Premium
Subway positioned itself as the “healthy” option in fast food
Brand Equity Subway’s motto is “Eat Fresh” Customer Advantage: differentiates
itself from the typical greasy fast food chains
Points-of-Difference: Healthy and nutritious Fresh food Nothing fried Low calorie/fat/cholesterol
Customer-based Brand Equity Subway launched a major marketing
campaign featuring Jared Fogel Millions of overweight Americans could
personally identify with his struggle to lose weight
The “Subway Diet” was easy and could virtually be done by anyone
Brand Building Elements Memorable—Subway is easily
recognized and recalled Meaningful—Offers healthy sandwiches
in a “unhealthy” fast food market; geared towards healthy eaters and those trying to lose weight
Likable—Simple, self-explanatory name of the product offered
CompetitionSubway’s Competition
Fast food chains (Wendy’s, Burger King, etc.)
Other subway shops (Charley’s, Port of Subs, etc.)
Sit-down restaurants (TGIF, Chili’s, etc.)
Sandwich Competition
2009 Franchise Openings
SubwayCharley'sJimmy John'sJersey Mike'sFirehouse Subs
Subway was named the #1 franchise for 2011 in the submarine sandwich category
Holistic Marketing Personalization—No two eaters are alike;
create your own sub version Integration—Features a mix of ads on
healthy menu options and the cheap “$5 Foot long” Healthy eaters Slow economy
Direct Approach Marketing Subway sales increased 20% in 2000
after Jared Fogel commercials launched (nndb.com)
$3.8 billion in sales alone from the ad campaign “$5 foot long”
Marketing Modification For techies, Subway allows customers to
place orders online at participating locations
Subway saw an opportunity in the breakfast market In an effort to promote and boost sales,
coupons for free breakfast items were distributed in weekly newspapers
Product Life Cycle
OpenedIn 1965 Intro
Maturity
GrowthGrew to 11kin ‘95
Grew to 32kin ‘09
Subway is most likely nearing the top of its growth stage and will enter into the mature cycle
Subway’s Continuing Success Subway’s prospects of maintaining
success are high Customers value fresh and nutritional
food More American’s are educated on
nutrition/health
References http://www.nndb.com/people/955/00004
4823/
www.subway.com