Subway was founded in 1965 and has grown to over 34,000 franchised locations in more than 95 countries, surpassing McDonald's. Subway positioned itself as the "healthy" fast food option, differentiating itself from greasy chains by offering fresh, low calorie sandwiches with no fried foods. Subway saw major success from its "Subway Diet" campaign featuring Jared Fogel, which helped overweight customers identify with losing weight through Subway's easy diet. Subway continues to have prospects for success by meeting customer demand for fresh and nutritious fast food options.
2. 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
3. Frame of Reference Subway positioned itself as the “healthy” option in fast food
4. 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
5. 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
6. 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
9. 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
10. 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”
11. 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
12. Product Life Cycle Maturity Grew to 32k in ‘09 Grew to 11k in ‘95 Growth Opened In 1965 Intro Subway is most likely nearing the top of its growth stage and will enter into the mature cycle
13. 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
