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)