Wednesday, April 10, 2013

The startup and advertising strategy for Subway


Subway is one of the most popular chain restaurants for sub sandwiches. Subway was established by a 17 years old college student and his family friend Fred DeLuca and Peter Burk. He borrowed $1000 and opened the first shop in 1965. The first restaurant was located in Bridgeport, Connecticut and called Pete’s Super Submarines. Their long-term goal was to open 32 stores in 10 years. But in 1974, Fred and Peter had only 16 submarine sandwich shops established. At that point, Fred and Peter realized that they wouldn’t reach their target number of operational restaurants. To reach their goals and expand their brand name, Fred and Peter pursued the opportunity of franchising; launching the Subway brand.

Switching gears, the rest of the post will focus on how subway is advertising its own brand:

Subway targets adults between the ages 18 and 49. This is a wide target. Subway believes this market to be more health conscious and live a healthy lifestyle. Subway advertises most on national TV during prime time sports and late night shows on popular broadcast and cable networks. They also advertise via local markets on TV, radio and print. Subway uses social media to inform consumers about upcoming offers or competitions. Subway currently has 25.5 million people like Subway on Facebook whereas Quizno’s only has 1.1 million. On their Facebook page, they had announced the winner of the competition and the prize was giving 1000 subs to a local food bank. That is a great way of get consumers involved and support a local community.  

Have you heard about Jared “the Subway guy”? He is the inspirational spokesman of Subway, who had lost 245 lbs. He achieved this life changing experience through exercise and consuming subway sandwiches for a year. Men’s Health Magazine wrote his story and had reached national headlines. The story gave Subway the reputation serving healthy food. His diet was eating a 6-inch Subway turkey sub for lunch and a foot-long Veggie Delite sub for dinner. After the story, Jarred started working for Subway as a spokesperson. He has traveled around the US and Canada; telling his story. He has also been a part of interviews for television, radio, newspapers and magazines.        

Subway utilizes the Franchisee Advertising Fund (FAF); to develop creative advertisements for the sub sandwich powerhouse. FAF cooperates with a national media agency to create advertisements that fit Subway´s reputation. They hire a public relation agency to be responsible for the content and promotions of new products and programs. Subway had also made advertisements for local advertising agencies throughout the world.

2 comments:

  1. Is Jared the Subway guy still active? Can you link to any recent ad campaigns.?

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