Subway is the world’s biggest sandwich chain. It overtook McDonald’s as America’s biggest fast-food restaurant by number of outlets in 2002, and achieved the same feat on a global scale in 2010.

1. Marketing

Advertising Campaign

* Subway targets more of the younger generation aiming at nutrition consciousness, these would include ‘empty nest 1 and 2’ (singles and newly married people) and ‘full nest 1 and full nest 2’ (family with young children and that with grownups still living with parents).

* Subway also focuses on hard sell approach in terms of the functional benefits and attributes of the menu being offered while the soft sell approach is inclined towards the nutritional value gained and often gets to be criticized for the hefty amounts spent for ad campaigns and promotions.

* Jared Fogle “The Subway Guy”, first came to media attention in 1999 when Men’s Health magazine did a story on how he became obese by eating junk food and not exercising and then proceeded to lose 245 pounds by eating Subway sandwiches. Fogle is now the face of Subway marketing. He tours around different schools and promotes healthy eating to children.

* Mark Blackwell is Subway restaurants weight loss hero in Australia. Blackwell was inspired by Jared Fogle to develop a diet of his own design that included Subway sandwiches.

* In the year 2002, the outlets’ low fat sandwiches were promoted showing Mark Blackwell having lost 42 kilograms after a year of Subway consumption, thereby, elaborating much upon the functional attribute.

* Later Subway started it’s in game text campaign accompanied by custom creating and text messaging to attract game lovers.

Marketing Message Subway Used to Become The Largest Restaurant Chain in The World

* Bret Thorn at Nation’s Restaurant News recently spoke with Subway CMO Tony Pace about its marketing strategy. This is how he defined subways marketing message:

* “We’re trying to avoid what I’d call health extremism: The whole notion that you have to be very prescribed down to the lowest level of calories isn’t really helpful to most of the population. So we’re showing things like the turkey BLT, which has 9 grams of fat. It’s flavorful, and you’re not in deprivation mode [when you order it], and that’s a much more livable way of eating. It’s not some sort of extreme exclusion of all the foods you like to the extent that you think you’re depriving yourself of all the food you like. You just can’t sustain that.

* Subway finds itself in a unique spot, wedged between two industries -- health food and fast food. The brand went right along with the health wave, yet stayed in direct competition with 'gourmet' chains like Jimmy Johns and Quiznos, who rarely harp on health.

* Subway does not want to be seen as a snooty health nut restaurant, nor does it want to be seen as a greasy fast food chain that dishes out 966-calorie burgers. At the same time, Subway has found a niche, attacked it with vigor, and now completely dominates it.

Main Marketing Strategies

1. Slogan: “Eat Fresh”

2. $5 Footlong

3. Same but different a. A sandwich from different subways will be a little bit different. b. Ability to add or take away certain ingredients. c. “Meeting people’s immediate needs”

4. Carved out niche d. They have become the default for a healthy and fast meal, two huge points.

5. Picking a fight e. Subway uses its own products against their competition. Points out how bad for you other fast food is compared to them.

6. All food, all hours

2. Social Media

Facebook

* Utilizing the new Facebook Timeline format, Subway boasts over 11 million Facebook “Likes” on its page. The page features an engaging high quality Cover Image, photos, discounts, news, events and fun. Utilizing the Timeline structure, the Page tells the Facebook story from its inception in August 1965. Photos and Video include both corporate and user posted content. Freshbuzz is their customized Facebook Page with links to their website, links to YouTube videos, email list sign-ups, Twitter updates, and promotions. The Flavorizer is a custom application that lets users build and name a breakfast sandwich. Subway posts are engaging, eliciting hundreds of responses per post. Overall Subway’s Facebook Page is an excellent example of Social Media for Retail.

Twitter

* Subway’s Twitter Profile currently has 400,430 followers. The profile includes a customized profile page with images of their currently promoted products. With 15 to 20 tweets a day, this is an active profile. Tweets include responses to questions by customers, promotion of products, customer service responses, congratulatory remarks, re-tweets, contests, etc. Contests include tweeting to enter a chance to win autographed basketball shows by a popular NBA star – Blake Griffin.

YouTube

* With over 1.6 million views, Subway’s YouTube channel is very effective. Especially, given that it only has 27 videos posted. A really interesting use of video is the Ultimate Series – a set of videos produced by college students.

LinkedIn

* With close to 9000 followers, Subway has a presence on LinkedIn. Both corporate and store level job opportunities are listed.

3. Digital Media

MediaCom * MediaCom was awarded responsibility for Subway’s U.S. digital media efforts, taking over the business from Publicis Groupe’s Publicis Modem. Duties on the new assignment include a full range of responsibilities including search and mobile. * In a statement, Tony Pace, Subway’s CMO said: “We have decided to consolidate our digital media planning and buying at MediaCom for both integration and efficiency reasons. We have confidence in MediaCom’s management and believe they will help build upon our success in the digital space.”

NEXCON and Real Digital Media
(Digital signage network)

* Subway hired NEXCON and Real Digital Media to launch in-store media campaign.

* Subway plays hand-selected and independently created content in all of its more than 36,000 restaurants in over 99 countries worldwide.

* The two combine to make a powerful communication medium for Subway franchisees to better inform customers of menu options and entice additional sales.

* The contract between Subway, NEXCOM and Real Digital Media represents one of the largest in the industry.

* Approximately 1,000 installations have already been deployed in the U.S., with more than 500 installations in the L.A. market area, and plans are underway to soon expand into international markets.

* "Subway's goal is to continually increase the value of the franchisees' investment in the restaurant and to help them successfully compete in the QSR industry. With digital signage, they are building a viable, cost-effective program to help franchisees reach their customers with timely product and promotional messages that influence customer behavior at the counter and increase sales.

Viacom Media Networks

* Viacom created the Subway “Fresh Buzz” program, which featured 20 emerging artists across music, comedy and pop culture.

* This original digital experience authentically infused Subway's "Eat Fresh" brand message by discovering and sharing fresh artistry with fans. Exclusive videos, interviews, profiles, performances and more were promoted across MTV, Comedy Central and Spike.

* In order to increase their buzz factor, our artists became ambassadors - posting original "Fresh Buzz" content on their fan sites, Facebook pages, MySpace, Twitter, YouTube and more.

* Viacom Media Networks drives visitors to the "Fresh Buzz" program via advertising, search marketing, search optimization, social media, blogger outreach and more.

4. Partnerships

(Dec. 2009/Jan.2010) * MTV Network with Subway’s Freshbuzz site.

* In Singapore Subway has teamed up with the Health Promotion Board to help communicate healthy living. It’s an innovative partnership, which benefits both brands.

(2010) * In 2010 Subway kicked off a Sony PlayStation partnership as they teamed up for the Fiery Footlong Frenzy fueled by PlayStation program. Codes were given away in Subway and people could access different levels of the game and attack people with a footlong sub in the game itself as well as win Sony prizes every minute. Great branding, if very male.

* That gaming promotion partnership clearly worked well for both brands, because Subway teamed up with Sony PlayStation once again for Uncharted 3, a brand new game just released.

(June, 2011) * Subway recently created a partnership with the Green Lantern, creating special meals and giving away great film benefits as well as giving the film millions of dollars worth of free publicity in all stores and in all marketing.

(April 4, 2011) * Subway created a cause marketing partnership with the American College of Cardiology (ACC) CardioSmart National Care Initiative, which promotes awareness and heart healthiness.

* Subway will also continue its partnership with NBC to highlight the brand during the upcoming season of the Biggest Loser.

* Subway in the US also created a multi-platform deal with NBC covering the network’s NFL and NHL telecasts. Subway endorsers Michael Phelps and Jared Fogle star in co-branded promo segments.

* Subway sponsors NBC’s “Football Night in America”.

* Subway sponsors NHL Game of the Week intermission reports and makes series of “Fresh Take” features available during the U.S. Figure Skating Championships.

* The USC School of Cinematic Arts and Subway Restaurants announced a corporate-academic-creative partnership connecting students at the nation’s top film school with a quick-service restaurant to create original branded entertainment content through the Subway Fresh Artists Filmmakers program.

* “Subway is a brand of opportunity,” says Tony Pace, Subway franchisee advertising fund trust chief marketing officer. “With the Subway Fresh Artists Filmmakers contest, we are providing an opportunity for USC’s emerging filmmakers to create work and have it seen by an enormous audience. Additionally, our fans will get an early peek at the work of young talent and the next generation of filmmakers.”

* Subway teams up with director Peter Berg, New York football champion Justin Tuck, and U.S. Army Col. Gregory D. Gadson to Host Wounded Warrior Project on the Intrepid.

* http://fastfoodmarketing.org/media/FastFoodFACTS_Report_Results.pdf. Link for pdf of a comparison of all the different fast food restaurants.

5. Tony Pace

* Went to University of Notre Dame. * Pace joined Subway in 2006. He previously worked at Young and Rubicam and McCann Erickson, where his client roster included Coca-Cola, Kentucky Fried Chicken and Burger King. He is now responsible for Subway's $358 million dollar advertising spend; $12.7 million of which goes to digital marketing. * As Senior Vice President and Chief Marketing Officer of the SUBWAY® Franchisee Advertising Fund Trust (SFAFT), Tony develops integrated marketing and advertising programs to drive profitable sales in SUBWAY® restaurants around the world. * Under his marketing leadership, the SUBWAY® brand has ascended in consumer ratings (Named #1 QSR on Millward Brown's BrandZTM Top 10 List for Brand Momentum. Named #2 overall above brands like APPLE and WAL-MART) and is a top performer in terms of sales and traffic growth. * The SUBWAY® chain is now the #2 QSR in total sales in the U.S. behind McDonald's – moving up from #5 just three years ago - and dominated the category with over 17% growth in 2008, vs. industry average of 2.7%. * Tony has been the architect of highly visible and successful SUBWAY® marketing programs including: $5 FOOTLONGS, SUBWAY FRESH FIT®, Jared's 10th Anniversary and SCRABBLE® AT SUBWAY®--now in its third year. * These programs have been groundbreaking in the QSR industry. In fact, Advertising Age magazine noted that the $5 FOOTLONG, which has over 95% consumer awareness, has become the yardstick for fast-food meal deals. The $5 FOOTLONG is a success that has been imitated, but not yet duplicated, in the QSR category.

* Since Tony arrived at SFAFT, he has increased national advertising from 33 to 52 weeks a year and added a digital marketing team to help take the brand to a whole new level. In addition, he orchestrated groundbreaking branded integrations on hit shows like TheBiggest Loser and Chuck on NBC.