Subway’s Promotional Methods Subway, the largest franchise in the world, uses various promotion methods. Subway uses mass selling as their primary way of advertising. Since the target market is large and scattered over 98 countries, this is the easiest way for Subway to target their products. They announce their promotions using TV ads, radio ads, newspapers, and online ads. Subway also uses publicity as a form of advertising. Jared Fogle, Billy Blanks, and Michael Phelps are all great examples of this.
We all know Jared as the overweight college graduate who lost 245 pounds by eating Subway sandwiches three times daily, Billy as the fitness guru known for the Tae Bo videos and Michael, superstar Olympian who loves the meatball and jalapeno sub (O’Leary, 2010). Publicity is a great way for Subway to promote products because by using celebrities who already love eating their sandwiches, they avoid paying for media services. Because they offer coupons, they also engage in sales promotion. These coupons can be found in coupon books such as, the Entertainment Book and the PayBack.
Coupons are also published in the newspaper occasionally, most recently as February 14th, 2011. All Subway customers received a free cookie with any purchase (“Februany at subway,” 2011). Integrated Marketing Communications Subway’s promotional efforts produce integrated marketing communications well. The message that is always conveyed is that their food is fresh, healthy, not overly priced, and can lead to weight loss if done right. I think that all of their advertising gives the same message because if Jared Fogle lost 245 pounds, Billy Blanks stays fit, and Michael Phelps can win eight gold medals, their sandwiches must be healthy.
Eating at Subway can also help maintain a full wallet. If someone wanted to, they could eat Subway for $15 a day and lose weight doing it (this is less than eating at other restaurant chains)! The TV ads, radio bits, publicity efforts, and sales promotions all blend together to create the same big picture. Media Used Advertising is used by Subway in many forms. They promote their products in TV and radio commercials, newspapers, online, and in publicity. This is the biggest form of advertisement that increased their sales substantially ithin the last five years. Jared has a big part in Subway’s publicity- in losing 245 pounds and in training for the ING New York City Marathon (O’Leary, 2010). The radio ads which sing a catchy tune, “Five, Five-Dollar, Five-Dollar Foot-Looooong”, are also a part of the company’s success. The Footlong promotion was only meant to be a four-week promotion and is now at more than 130 weeks long (O’Leary, 2010). Informing, Persuading, and Reminding Subway, being a national brand, does not need to inform its customers of their products.
Society knows who Subway is along with their product, so only when they offer a new product or promotion, will they need to inform. They do a great job in persuading their consumers to buy. They have used Jared Fogle as a reason to buy for the past five years. Although Quizno’s and McDonald’s are in the same target market, Subway has managed to become the number one franchise by persuading their customers. Subway also reminds its customers to keep going back. Their target market is knowledgeable of their products, but Subway reminds them with new sandwiches and $5 Footlong ads.
Promotional Efforts affected by Product’s Life Cycle Subway’s products are in the market growth stage. Their sales are increasing and other companies have tried to emulate their success. I feel that their promotional efforts are paying off for them in this stage because they are now the number one franchise in the world. The industry sales have not leveled off yet, but they soon will as the product’s life cycle changes. Subway has been successful because they monitor their sales and profit opportunities, and then create more promotional activities to keep themselves at the front of the race.
They offer certain promotions on certain days of the year, so that their customers can enjoy their freshly baked products at no charge, and I believe this is just one reason that they are above the competition. Recommendations of Promotion I do not believe that Subway should make any drastic changes to their promotion element. They are a great company and exhibit that through their success. Their $5 Footlong promotion was originally set to be a four-week promotion, but has been running for over two years. Their product tastes great and is healthy and fresh.
I believe that they’re doing a great job and have created a big name for their company, but if they went out into the community to hand out coupons that would be great. I think if they went to college campuses and handed out coupons to students, it would create bigger sales for them. College students are always looking for ways to save a buck or two, and there are locations in and around college campuses, so I think this is a great idea. Pricing Methods/Policies Subway uses the one-price policy in its stores to keep customers buying their products. All of their subs cost the same among stores (Albers).
In the case of the $5 Footlong, all stores charge the same price because they want to maintain goodwill among their customers. This one-price policy is convenient for their numerous stores that are part of the largest franchise in the world. Related Pricing with Competitors Subway’s prices are of equal or greater value than their competition. When Subway introduced the $5 Footlong, other companies introduced their own version. Quizno’s introduced a $4 Tasty Torpedo, Domino’s launched a $5 toasted sub for delivery, Kraft introduced frozen sandwiches under $4, and McDonald’s had a meal combo that equaled around $5 (York, 2009).
With Subway’s consistency in being healthy and fresh, they have reigned over their competition with the $5 Footlong promotion lasting 126 weeks over the scheduled period. Other Subway menu items are considerably less than Quizno’s sandwiches. At Quizno’s, a large sub (12 inches), depending on which one you order can cost you almost $9 with tax, but any of Subway’s Footlongs (not including the $5 deal) will only cost you around $7. 50 plus tax (“Subway”, 2011) (“Quizno’s Restaurants”, 2011). So besides saving $1. 50 in your wallet, you also save in the waistline.
Different Prices for Different Locations Subway’s prices do not vary from store to store, but the online prices have slight differences. Subway now offers online ordering, which allows customers to order what they want through their website. Some of the Footlongs are still priced at $5, but other ones that were previously the same amount, are now priced at a higher amount (“Subway”, 2011). Quizno’s products are priced the same online as in their stores. This is one reason to order online because you are not losing any money by putting your order in and having it ready when you pull in their driveway.
Pricing affected by Product’s Life Cycle Subway is in the market growth stage. Their price is affected because competitors have entered the market, and have been trying to duplicate their success. Before their $5 Footlong promotion sales were declining, but now they are the largest franchise in the world because of that one change in price. Subway’s one-price policy has treated them well, and I believe that their sales will not level off because of this. Customers know that their price is $5 for some of their Footlongs, and will keep going back if they maintain it.
They want their customer’s goodwill to remain in good standing by keeping their prices low. This is also part of their success. Price Recommendations I do not think that Subway should change their pricing policy. I think that the one-price policy is the fairest way to keep customers happy and returning. If Subway was to raise their $5 Footlong price today and go back to original prices, they would lose customers and probably their spot as the number one franchise in the world. They should continue with this Footlong special because it’s making them millions.
References
- Albers, Rachel.
- Personal Interview by Tiffany Sinden. 21 Apr 2011. 25 Apr 2011.
- Februany at subway features national free cookie day. (2011). Catalyst News, Retrieved from http://www. catalystpublicrelations. com/press-room/tag/tony%20pace
- O’Leary, N. (2010). How subway built a $4b brand, five bucks at a time. Brandweek, 51(34), 53.
- Quizno’s restaurants. (2011). Retrieved from http://www. quiznos. com/index1. html
- Subway. (2011). Retrieved from http://www. subway. com/subwayroot/index. aspx
- York, E. (2009). Subway’s $5 foot-long becomes yardstick for fast-food meal deals.
- Advertising Age, 80(21), 8.
