Free Essay

Subway

In: Business and Management

Submitted By blaine
Words 1080
Pages 5
Issue 6:
Advertising is a way to let customers know a company’s products and its concept. In which way Subway chooses to make it known to the public.

The four primary functional areas of a firm are marketing, finance, operations, and human resource. For most firms, operation is the technical core or “hub” of the organization, interacting with other function areas and suppliers to produce goods and provide service for customers.

Is there any good product or service has high sale rate without effective advertising? The answer is absolutely no. Therefore, effective advertising is an important segment in marketing.
Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertising can be a cost effective way to disseminate messages, whether to build a brand preference or to educate people.

Organizations handle advertising in different ways. In small company, advertising is handled by someone in the sales or marketing department, who works with an advertising agency. A large company will often set up its own department, whose manager reports to the vice president of marketing. The department’s job is to propose a budget, develop strategy, approve ads and campaigns, and handle direct-mail advertising, dealer displays, and other forms of advertising.
Subway corporate posited itself as a more health-conscious restaurant. Much of Subway's rapid growth can be attributed to its somewhat unique business model. Unlike most franchisors, the parent company does not operate any restaurants. Local franchisees operate the stores, and in most markets Subway enters into a contract with a franchisee to be its Development Agent for that market. The Development Agent is then responsible for developing new locations, evaluating stores on a monthly basis, and assisting franchisees with whatever needs they may have. 8% of sales at each location go to royalties to Doctors Associates (they give third back to the local DA), while 4.5% (as of 1 January 2008) of sales go into a fund, the Subway Franchisee Advertising Fund Trust, also known as SFAFT which is operated by a board of directors voted on by Subway Franchisees. SFAFT functions independently of Doctor’s Associates Inc., which is the franchisor of the SUBWAY® business franchise concept, and its affiliates. It was established to create advertising and marketing programs that are designed to build restaurant sales and promote the system’s image.

Advertising strategy is the general plan designed to give the campaign its competitive edge. The key to strategic thinking involves anticipating consumer and competitive responses to a variety of alternative actions. However, how to make advertising strategy is an important issue to the company. In designing and evaluating an ad campaign, it is important to distinguish the message strategy (how the as expresses the brand claims). So designing effective advertising campaign is both an art and a science.
Subway uses the advertising slogan "Eat Fresh" to explain how every sandwich is made on freshly baked bread, using fresh ingredients, in front of the customer to their exact specification, by employees who Subway terms "Subway Sandwich Artists®"
The goal of the chain’s current advertising campaign is to increase its presence in the consumers’ “consideration set” , that is, which fast-food restaurants consumers consider when deciding where to eat. The SUBWAY® chain is doing this through a variety of tactics, including the 8 subs with 6 grams of fat or less and other low-fat messages; a family marketing strategy; and an emphasis on unique qualities that make the chain stand out from other fast-food chains.
In addition, many restaurant analysts attribute Subway's fast growth to the growing concern on health by restaurant customers, a trend that Subway has taken advantage of in its marketing. In 1999, an Indiana University student named Jared Fogle lost 245 pounds (110 kg) with a diet made up mostly of Subway sandwiches combined with exercise. The story is used by Subway as a large part of their marketing campaign to this day. Jared has emerged as a spokesman for Subway, furthering their image as a health-conscious restaurant chain.

After the message generation and evaluation, the company should creative development and execution. The ad’s impact depends not only on what it is said, but often more important, on how it is said. Message execution can be decisive.
Finding the most cost-effective media to deliver the desired number and type of exposures to the target audience is very important. The majority of SUBWAY® Restaurants’ advertising is done on national TV during prime time, sports and late-night programming on all major networks and cable networks. Additional advertising is placed locally on TV, radio and in print. SUBWAY® Restaurants also promote advertising messages and specials in-store with point-of-purchase materials (such as posters, menu translites).
Subway’s creative advertising agency is Mccarthy, Mambro Bertino Advertising (MMB), located in Boston, Massachusetts. MediaCom, New York, N.Y., is the agency-of-record doing the national media planning and buying. There are also approximately 30 local U.S. advertising agencies that work with the SUBWAY® franchisees on a regional level.

Except above normal ways to advertising, Subway also attempts to be the sponsor of some Big Game. This is useful way to advertising. Subway is the corporate sponsor for two NASCAR Nextel Cup series stock car races: the Subway Fresh Fit 500, held at Phoenix International Raceway; and the Subway 500, held at Martinsville Speedway. In addition, Subway has been the primary sponsor of the NASCAR Nextel Cup number 16 car, driven by Greg Biffle. Biffle has appeared in advertising for Subway along with his Crew Chief Doug Richert. In 2007, Tony Stewart has appeared with Jared Fogel in ads, and it is likely that he will drive his #20 Home Depot Chevrolet with Subway primary sponsorship in the two Subway sponsored races. Previously, Subway had sponsored Jeff Purvis' #51 car in at least one race in 2001. They also sponsor a pro-cycling team and American Heart Association.

Till 2007, Subway has over 28,888 franchised units in 86 countries as of January 2008 and is the fastest growing franchise in the world. Currently, Subway is the third largest fast food chain globally after Yum! Brands (34,000 locations) and McDonald's (31,000 locations). Effective advertising allowed Subway compete successfully in the QSR industry worldwide.

Reference:
Frequently Asked Questions www.subway.com
Jared’s Story www.subway.com
Subway (restaurant) http://en.wikipedia.org/wiki/Subway_(restaurant)…...

Similar Documents

Free Essay

Strategy of Subway

...Administration Lappeenranta Corporate and Financial Law Riina Liutu SUBWAY MARKET RESEARCH Bachelor‟s Thesis 2010 ABSTRACT Riina Liutu Subway Market Research, 114 pages, 7 appendices Saimaa University of Applied Sciences, Lappeenranta Degree Programme in Business Administration Corporate and Financial Law Bachelor‟s Thesis 2010 Instructor: Sari Jokimies Manager of Degree Program The main goal of this thesis is to find out whether Danish entrepreneurs can become successful in the Danish market as Subway franchisees. Three specific cities, namely Århus, Horsens and Vejle, are looked at in depth. In the thesis, these three cities will represent the Danish market. An evaluation of the most suitable location for a Subway restaurant is made. To reach the above objective, the Subway franchising concept, the market situation, the customers and the competitive situation will be analyzed and evaluated. In order to understand the market in which the franchisee would operate, the size of the market, historic growth, potential growth, trends and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsen s or Vejle. After evaluating......

Words: 25125 - Pages: 101

Premium Essay

Subway

...Subway was started by a seventeen-year old entrepreneur named Fred DeLuca back in nineteen sixty five. Fred started the company based on a suggestion from a friend because he was trying to look for ways to raise money to pay for schooling to become a medical doctor. Fred was able to borrow a thousand dollars from a friend, Dr. Peter Buck with an agreement to become business partners. The first Subway opened up in Bridgeport, Connecticut in August of ninety sixty five. Fred quickly learned the value of serving well –made and high quality sandwiches along with top notch customer service. Other key things Fred learned early during his business venture was the importance of keeping your operating expenses low and finding good locations for new restaurants. Today Subway is a chain restaurant with more than thirty seven thousand sandwich shops around the world. The marketing strategy at Subway focuses on the fresh, healthy, and custom made in front of you sandwich consumers want. Subway’s concept of serving fresh made sandwiches on their fresh baked bread along with them being made directly in front of the customer has proven to be strong winning marketing strategy with its customers across the world. The sandwich shop has been working hard to strengthen their health conscious customers’ which has proven very successful for the company. It only makes sense with the healthy fast food alternative Subway offers that their marketing slogan is “Eat fresh”. Subway uses......

Words: 1250 - Pages: 5

Premium Essay

Subway

...SUBWAY® FAQs 1. Who founded the SUBWAY® restaurants? When and where did the first restaurant open? In 1965, SUBWAY® restaurants was founded by 17 year-old high school graduate Fred DeLuca, along with family friend Dr. Peter Buck. The first restaurant opened in Bridgeport, Connecticut, USA in 1965 and was called Pete’s Super Submarines. The first franchised SUBWAY® unit opened in Wallingford, Connecticut. 2. Where is the company headquarters? The company headquarters is located in Milford, Connecticut, with additional regional and country offices, employing about 1,000 people in total. Worldwide, its franchisees provide more than 300,000 jobs in the communities where they are located. 3. Can I buy stock in SUBWAY®? No, DAI is a privately held company and is not traded on any stock exchange. Each franchise is individually owned and operated. 4. Who is Jared? Is he a real person? Jared “The Subway Guy” lost 245 lbs. with his own SUBWAY diet for almost a year: he had a 6 inch SUBWAY® turkey sub for lunch and a foot-long Veggie Delite® sub for dinner.* His story came to our attention after Men’s Health Magazine featured his incredible weight loss success story. Since then, Jared’s story has inspired many others to follow his lead. Today, Jared stays busy as a SUBWAY® spokesperson, traveling throughout the US and Canada, making public appearances and doing interviews for television, radio, newspapers, and magazines. 5. What are the goals of SUBWAY® restaurants for...

Words: 1012 - Pages: 5

Free Essay

Subway Franchise

...Subway’s mission is: “Delight every customer so they want to tell their friends – with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience.” Subway’s franchise vision is to be the number one Quick Service Restaurant (QSR) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience. Subway has three core values: family, teamwork, and opportunity. Family is important to the Subway community. “We build our business relationships by serving each other, our customers and our communities, much as we do within our own families.” The next core value Subway holds near and dear is teamwork. “We challenge ourselves and each other to succeed through teamwork, against shared goals and to be accountable for our responsibilities.” The last core value is important for the franchisor and well as the franchisee, opportunity. “We create and entrepreneurial, ever-growing Subway community, increasing the opportunity for everyone.” Subway, originally Pete’s Super Submarines, was founded in Bridgeport, Connecticut in 1965. A high school graduate named Fred DeLuca, just 17 years old, wanted to achieve a higher education. No matter how hard Fred worked, he only received $1.25 per hour, minimum wage at the time. Fred started to think he would not earn the money to be able to pay for his college tuition. Fred asked a longtime family friend Dr. Pete Buck, also a nuclear physicist, for financial advice. Instead of giving......

Words: 828 - Pages: 4

Free Essay

Subway

...29/08/2013 Erick Josué Guillén Manzano Enterprise Development G1 Khoo Hock Seng Subway improvement During this Essay there will be analyzed and proposed options to grow Subway outlet in campus. Subway is an American fast food restaurant franchise that offers sandwiches, made on freshly baked bread and prepared just as you want it, with a wide assortment of meats, cheeses, vegetables and toppings. They also offer wraps, delis and salads, potato chips, baked cookies and choice of different drinks. Is one of the fastest growing franchises in the world with 40,043 restaurants in 102 countries; and SMU held one of them on the School of information Systems, (2 Seragoon Road, #01-16, Singapore, Singapore 218227) in operating Hours between 8:30 am - 10:30 pm. The outlet has a big demand specially during the lunchtime (11:30 – 2:30) during this time waiting for your meals can take between 15- 20 min due long queue, but during the rest of the day the sells are reduced. As any other franchise requirements of quality and image are imposed, but the restaurant could get more clients by solving three opportunity areas: First Active use of the Social Networks; the investment on publicity in other campus areas and campus events; finally the remodeling of the food area to create a better environment. This three proposes will be explained in order to grow the business sales, and quality of the subway experience at SMU. First proposal is to have and active use of the Social......

Words: 742 - Pages: 3

Premium Essay

Subway Service

...TOPIC : SUBWAY Submitted to: Prof. BRIJESH MBA Dept Submitted by: Punith R Pokale 1PT12MBA58 CONTENT * INTRODUCTION * FLOWER OF SERVICE FOR SUBWAY * HARD AND SOFT SERVICE STANDARDS * CHANNELS OF SERVICE DELIVERY * COMMUNICATION MIX * SERVICE BLUEPRINT * SERVICE QUALITY GAP MODEL AND QUALITY DIMENSIONS * PRICING STRATEGIES * CRITICAL ANALYSIS INTRODUCTION SUBWAY has come a long way in India since it opened its first restaurant in India. Young Indians have warmed to the image of the American chain, and made it one of their favourite places to swarm to, and hang out in. Subway has very successfully entered the Indian market and sustained its growth by developing a unique menu to appeal to the Indian taste. If you are a foreigner visiting India, you might be interested in indulging in some of the Indianite treats at Subway -- for example, the legendary paneertikka sandwich. Also, as an Indian you might be interested in some of Subway’s Continental treats like the Italian B.M.T. Subway offers a wide variety of submarine sandwiches and salads on its menu. It offers an assortment of vegetarian and non-vegetarian fares. They also cater to the health-conscious customers by providing them with 97% fat free subs. Subway offers a separate specialty menu for breakfast. Apart......

Words: 2060 - Pages: 9

Premium Essay

Subway

...Subway case study | Subway and the challenges of franchising in China | | ADVANTAGES AND BEST ENTRY STRATEGY OF SUBWAY | | | SUBWAY AND THE CHALLENGES OF FRANCHISHING IN CHINA Question: - What are the advantages of franchising in China from Jim Bryant’s perspective? From Subways perspective, is franchising the best entry strategy for China and why? Answer: - “Subway is a very big firm and to spread its business with franchises. To enter in China it was the best way. It is the best way of licensing and entry in a new country. In this company has given a trademark fro their promotion and training.” (International Business Environment and operations 11th Edition, 2009). 1. Entry with franchisee system:- Before subway enter in the China market the franchises system was not so much famous. But because of this system any company only open one store and after that they can go for many stores. So, because of this system it is difficult to attract more customers. But China wanted to know about this system because they also want to expend some of their companies they allow to subway enter to the China by this way. The subways choose to enter in China by this way and they were able to open their many branches in the China market. It is not only save their time, but also have some good effect in the the favour of Subway. Now more and more people know about Subway. They also know how to promote their product. 2. Low cost: - The other advantage was that......

Words: 654 - Pages: 3

Premium Essay

"On the Subway

...Essay #4 “On the Subway” is about the complex connection between whites and blacks. In the first stanza the author shows an account that compares a black person with a white person (lines 1-13). And then in the second stanza the author starts to show the obvious inconsistencies so that inter relationships surface. In the third stanza the author gives insight on to how the scene is parallel to American culture on a larger scale. Olds uses imagery to show the significant difference between the black boy (the observed), the white woman (the narrator) and the observer as they all sit in the same subway. The main focus of the stanza is his sneakers that are black “laced with white”. The white woman describes the white laces as “intentional scars”. These “scars” are supposed to show the reader the discrimination of blacks by white society. The use of the word intentional shows the reader that the whites intended to harm blacks mentally and physically on purpose. This image compares blacks and whites by saying that whites are powerful and blacks are meant to be compliant. The two characters are on two opposite sides of the train, stuck there, and permanently separated from each other. Next the clothing is describes and is used as another contrasting element. In this image the black boy is “exposed” opposed to the white person who is covered in fur. The image is used to reinforce the opposition. In the second stanza the tone change…In the......

Words: 1132 - Pages: 5

Premium Essay

Subway

...When the founder of the Subway Restaurant,respected Mr Fred DeLuca with his partner Dr. Peter Buck opened the first shop in Bridgeport,CT in 1965,this company has already become a strong and energetic single entity among all the well-known competitors,its growing trait exists in a total of close to 35,000 units located in 98 different countries.In fact,such a scale of development, not just a simple number, it shows the subway broad market presence, and the ability to explore the market, and that this is a huge advantage even such a fast-food giant McDonald's did not have. For Subway,grounded in a such large global background including economics environment,the firm is limited by many pressure,constraint and even threat from competition that can affect the strategic management process of Subway.In a way,if the firm want to be successful really,you must find out a sustainable competitive advantage(core competency) derived from capabilities and resource.(core competencies are capabilities that serve as a potential source of competitive advantage for a firm over its rivals).And high-quality food,top customer service and the ability to continuously finding supervisor location is the core competencies of Subway today. As shown by the slogan”Eat Fresh”,the firm has much more confidence than providing satisfied food to different needs from different customers,for example their own bread,the offer of a set of fresh ingredients as the choice by the customers and so on.At the......

Words: 5915 - Pages: 24

Premium Essay

Subway

...Strengths: Subway Restaurants is one of the leading submarine sandwich franchise based in the United States and having presence in more than ninety five countries having over 30,000 restaurants all over the world. The growth rate of the company has been increasing year after year. Subway has established itself in the fast food industry having brand recognition all over the world. Due to its great strategies the company has become the leading franchise in the United States in a very short period of time. In the United States alone there are over 23,000 subway restaurants. The company has even positioned itself in places like hospitals, churches, schools and popular retail stores. Subway is known to be companies that offer healthy subs sandwich that are preferred and much better as compared to food items offered by other fast-food chains. The company has partnered with the American Heart Association to add to its image further. The food menu of the Subway reflects the high demand of healthy and fresh food which is fast too.. Weaknesses: The decoration and look of the franchises is said to be old an outdated. Another problem with franchises is that the satisfaction level of the customers is not the same across franchises and also some franchises perform very poor. Service commitment is not consistent from store to store. This can be said to be related to staff as there is not much motivation and the turnover rate of the employees is very high. Opportunities: The company can...

Words: 376 - Pages: 2

Premium Essay

Subway

...first SUBWAY® restaurant.By lunchtime on the first day Fred and Pete’s submarine shop was open,customers were pouring in. From that day on the company continued togrow. Fred and Pete had a goal of opening 32 submarine sandwich shopswithin 10 years. By 1974, eight years after they opened their firstsandwich shop, Fred and Pete owned and operated sixteen shopsthroughout the state of Connecticut, only halfway to their goal.As Fred and Pete looked to grow the business, talk turned to franchising, 4. an idea they had previously dismissed as something only for “the bigguys.” Determined to succeed, Fred and Pete decided franchising wasthe key to achieving their goal. So Fred met with his friend Brian Dixonand made him an offer he couldn’t refuse. He offered Brian a loan to buyone of their restaurants, but to sweeten the deal, Fred told Brian that ifhe didn’t like the business, he could return it and owe nothing.Brian is known as the very first SUBWAY® franchisee – setting the newstandard for the SUBWAY® business model. This enabled Pete and Fredto not only reach their goal, but surpass it. Today, entering their 46thyear of operation, SUBWAY® restaurants is the world’s largestsubmarine sandwich chain operates more units in the US, Canada andAustralia than McDonald’s® does. Countless awards and accolades havebeen bestowed upon Fred DeLuca and the SUBWAY® chain - theSUBWAY® name and its products have even appeared in numeroustelevision and motion picture productions. The SUBWAY®......

Words: 1806 - Pages: 8

Free Essay

Subway

...Branded Foodservice QSR Insights & Best Practices Presented by Doctor’s Associates, Inc. Don Fertman, Director of Development What is Subway®? Our Credentials in Brief Subway is the world’s largest sandwich franchise in fastest growing QSR segment Subway has more restaurants in North America than any other fast food franchise. Subway is the 2nd largest QSR chain in the world in numbers of units. 22,500+ restaurants in 78 countries. 4500+ restaurants located outside US. Subway in C-Store Locations 3500 3000 2500 2000 1500 1000 500 0 1994 1996 1998 2000 2002 2004 Open C-store/Truck Stop Locations Subway® Restaurants in Convenience Store/Gas Station Locations Stop-N-Go Convenience Store, Quincy, MI USA Esso C-store/Gas Station Exterior, Brampton, ON, CAN Esso C-store/Gas Station Drive Thru, Brampton, ON, CAN Shell C-Store/Gas Station, Interior and Exterior, Ennis, TX Shell C-Store, Interior and Exterior, Bushnell, FL Jared with the Troops in Cuba Guantanamo Bay Naval Base The “eat healthy” message spans the globe! QSR Best Practices that C-Stores Can Leverage National brand awareness National “top of mind” consumer credibility Complement “brand” of c-store/truck stop Product familiarity Overall quality/health benefits Success history QSR Best Practices that C-Stores Can Leverage (cont.) Purchasing Product consistency Portability of product Operational simplicity Start – up assistance Training and support QSRs and C Store-Gas...

Words: 433 - Pages: 2

Premium Essay

Subway

...Introduction Subway is an American restaurant franchise that primarily sells submarine sandwiches (subs) and salads. It is owned and operated by Doctor's Associates, Inc. (DAI). Subway is one of the fastest growing franchises in the world with 35,302 restaurants in 98 countries and territories as of September 10, 2011. Doctor's Associates, owners of Subway, was founded by Fred De Luca and Peter Buck in 1966, when they opened the second Subway restaurant in New York. The name comes from the fact that Buck holds a PhD. Despite Subway marketing itself as a health-conscious restaurant, neither Subway nor Doctor's Associates are affiliated with nor endorsed by any medical organizations or doctors. SUBWAY in INDIA Operating from its main office located in Milford, Connecticut, the quick service restaurant chain has five regional centers to support its expanding international operations. The Asian centre has been growing at a rapid pace and India as a country occupies a pivotal spot on this expansion map. Subway Systems India Pvt Ltd opened its very first restaurant in 2001 in New Delhi and has swiftly grown its operations to 228 operating restaurants in 26 cities across India. Although it is a global brand with a menu that is relatively the same around the world, SUBWAY restaurant's takes great pride in honoring and respecting local traditions and food preferences and has earned a reputation for offering a healthier alternative to traditionally fatty and greasy fast food. SUBWAY......

Words: 2853 - Pages: 12

Premium Essay

Subway

...Introduction Before introducing the history, mission, and vision, I am enterprising a fast food company, Subway® restaurants in Malaysia. Subway® restaurants are the world's biggest submarine sandwich chain working more units in the US, Canada and Australia than McDonald's does (Dec 16, 2009). Today, there are more Subway restaurants in the world than other restaurant chain, 42996 restaurants in 108 countries, and there are 177 restaurants in Malaysia. “Subway, eat fresh”. (Nov27, 2013) History The founder of Subway, Fred Deluca. In 1965, he had just graduated from high school in Bridgeport, Connecticut, USA. He had dreams of attending college and he was a hard-working, competent and dependable young man, however, the $1.25-per-hour he earned working at the local hardware store would not be enough to finance his education. Discouraged, he decided ask an old friend, Dr. Peter Buck for advice and he gave Fred an idea to open a submarine sandwich shop that he would change his life and lives of people around the world. Dr. Buck explained how the shop could finance his future education. After that, they formed a partnership that would lead to the first SUBWAY® restaurant. The company continued to grow from first day. From that day, they had a goal of opening 32 submarine sandwich shops within 10 years. As Fred and Dr. Buck searched for approaches to develop the business, they settled on a choice that franchising was the way to obtain their objective. So Fred met with......

Words: 2248 - Pages: 9

Premium Essay

Subway

...Performance Assessment Of Subways Mission And Strategy Business Essay In this project, I have discussed all the aspects of Subway restaurant. I have explained the introduction, history, strategy, mission statement and objective of the Subway. I have described the criteria of performance management and the important issues of the organization. And how Subway can meet their future needs adopting new strategies ideas and feedback given by the people is included in this report. Introduction of the Company: The Subway restaurant chain is the world's biggest submarine sandwich company, with more than 32,200 locations in 90 countries. Headquartered in Milford, Connecticut, and with regional offices in Amsterdam, Beirut, Brisbane, Miami, and Singapore, the Subway chain was co-oriented by Fred DeLuca and Dr. peter Buck in 1965. The Subway brand was ranked the number one Franchise Opportunity and the number one Global Franchise Opportunity in the 2010 edition of Entrepreneur magazine's "Annual Franchise 500" survey, an honor that the Subway chain has received 17 times in the past 23 years. For more information about the Subway restaurant chain, please visit www.subway.com. Subway is a registered trademark of Franchise World Headquarters. It was the mainly introduction of the Subway restaurants which explained that how they get started. SUBWAY's Strategy: Subway is exclusively a franchise operation, and does not own or operate any corporate restaurants. The Subway chain was......

Words: 1568 - Pages: 7