ellis subway

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Subway By: Sarah Ellis

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Sarah Ellis's Week 5 Presentation--MKTG 6000

TRANSCRIPT

Page 2: Ellis subway

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

Page 3: Ellis subway

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

Page 4: Ellis subway

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

Page 5: Ellis subway

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

Page 6: Ellis subway

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

Page 7: Ellis subway

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.)

Page 8: Ellis subway

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

Page 9: Ellis subway

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

Page 10: Ellis subway

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”

Page 11: Ellis subway

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

Page 12: Ellis subway

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

Page 13: Ellis subway

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