1.1 Introduction
According to Keller, brand auditing is an in-depth analysis of a brand to assess its equity and consumer perception that informs strategic choices (Joe et al., 2020, p. 145). On the other hand, in Subway’s case, a fast-food chain leader, its brand audit echoes how a changing market is constantly driving its evolution, and its strategies must reflect this reality.
According to Modi, Subway was founded by Fred DeLuca in 1965 with the help of Dr. Peter Buck, and it has grown into a global franchise with more than 40,000 locations in more than 100 countries. While DeLuca died in 2015, Subway is still turning heads and has gained the status of a true giant, taking the lead from McDonald’s after reaching 26,744 locations in the U.S. and keeping the #1 stop in Entrepreneur’s Top 500 Franchises list since 2007.
The digital journey of Subway represents the transformation towards modernization through mobile apps (Duggal et al., 2021, p. 5), social media presence, and the online ordering system to boost customer engagement and convenience. The digital ecosystem aligns with the Brand’s core values of freshness and customization and seeks a unified brand experience on all platforms.
Under Subway’s branding strategy, the company seeks to refresh its essence by implementing elements such as strategic visual identity, storytelling, and points of contact or digital platforms to build brand loyalty and advocacy (Nukhu & Singh, 2020, p.76604). Although the market conditions hinder Subway’s potential progress, the strategic initiatives and branding efforts have produced desirable results in market share, revenue growth, and customer retention metrics.
One of the main goals of this brand audit is to analyze Subway’s branding tactics in terms of their effectiveness and areas to be improved. In this research, we will explore Subway’s digitization and branding aspects to establish the role of brand image and consumer perception in the context of fast-food organizations.
1.2 Brand inventory
1.2.1 Brand Elements
Brand elements are essential to brand identity (Flori, 2021, p. 67). Subway’s elements include:
Logo: Subway’s logo has changed occasionally but retains the traditional yellow and green combination. The latest version draws on the original design, highlighting simplicity and recognition. The evolution of the name and logo is shown in the figure below;
Figure 1; Subway Logo evolution (Source: Logolook, 2022: online)
Slogan: With a firm endorsement of celebrity images and emphasizing healthy, wholesome food that tastes good, Subway’s “Eat Fresh” campaign is quite a hit, and they are achieving tremendous business success with it.
Figure 2; Subway Slogan (Source: Qistina, 2022: online)
Tagline: The slogan “FRESHLY MADE FOR YOU” by Subway implies that this firm uses only fresh ingredients to make its products; this approach has met consumer demands since its inception, and the tagline has been used since 2004.
Figure 3; Subway Tagline ( Source: Carlzon, 2020: online)
Packaging: According to Subway’s packaging policy, Sustainability is at the heart of how Subway thinks about its packaging, balancing freshness, price, and footprint.
Figure 4; Subway Packaging (Source: Gareth, 2018: online)
Symbols: As symbols, subway arrow, and subway-arrow-on-ball indicate that the subway strictly adheres to brand integrity and safety in usage.
Figure 5; Subway Symbol (Source: Logolook, 2022: online)
Trademarks: According to Morales, Subway has registered over 134 trademarks and has been sure to cover the basics, such as its name, logo, and critical slogans. These trademarks are often used on televised adverts, billboards, and newspaper advertisements.
1.2.2 Attributes of the Brand
Subway differentiates itself through the following key attributes (Barrett et al., 2022, p. 90): Provision of fresh ingredients for the customizable sandwiches, permitting customers to customize their orders by allowing them to choose from a variety of bread, toppings, and sauces, offering healthy, good quality and cheap foods, convenience as subway has so many branches at various places making it easily accessible to all and reducing sandwiches to a relatively healthy substitute for fast foods. This has enhanced its popularity among the population. These are represented in a diagram as shown below;
Figure 6: Attributes of Subway ( Source: Dean, 2020: online)
1.2.3 Competitor Analysis
Subway competes with McDonald’s, Burger King, and other fast food leaders by stressing freshness and individualization (Kim & Zapata Ramos, 2018, p. 900). Values of indirect competitors such as Chipotle and Panera Bread are also similar. The figure below shows the distribution of the various fast food chains in terms of volume of users. It shows McDonald’s as the clear dominant, with Subway coming in second place, clearly showing its relatively good standing on the market.
Figure 7: Subway competitor analysis (Source: Seikyusho, 2019: online)
Figure 8: Fast food chain market analysis (Source: Mayank, 2020: online)
1.2.4 Target Market
Subway is aimed at having various customers, including children (Kabisch et al., 2021,p 8907), adults, and professionals, depending on multiple attributes, including affordability, convenience, and health awareness.
Figure 9: Subway’s target market ( Source: Dean, 2020: online)
1.2.5 Consumer Perceptions
Consumers see Subway as an affordable and user-friendly substitute for regular fast-food places motivated by buzzers on social media and advertising campaigns (Chen et al., 2018, p. 124). The subway always has a positive image of price and quality compared to its competitors.
Figure 10: Subway’s customer perception (Source: Brandau, 2019: online)
1.2.6 Perceptions of Line and Product Extensions
Subway’s line and product extension, such as breakfast sandwiches and wraps, enables the company to become a market area and widen its consumer base sandwiches alone (Baker et al., 2020, p. 78). Nevertheless, the effect of these extensions on brand perception also differs from the literature on the subject, reporting inconclusive results.
1.3 Brand exploratory
1.3.1 Research Focus
This brand exploratory covers specific information regarding the current standing of Subway, target market insights, and the competitive environment it penetrates, as per Brumfield’s research done in 2022. Previous research, media analysis, and knowledge discovery are used to explain Subway’s brand image and consumer perception as part of the assessment.
1.3.2 Literature Review
The former research provides information about the brand perception of Subway, its consumers’ preferences, and the market’s current state (Jiang et al., 2020, p. 40). Studies highlight the health appeal of Subway, its response to dietary trends, and challenges in staying consistent among the franchises.
1.3.3 Media Analysis
Using endorsements, Media accentuates Subway’s “Eat Fresh” principle and associations with a healthy lifestyle (Ban, 2018, p. 67). In advertisements, some celebrities and athletes reinforce Subway’s freshness and healthiness:
Figure 11: Subway advertisement ( source: Nouton, 2020: online)
1.3.4 Uncovering Knowledge Structures
Analyzing the fundamental brand knowledge structures of Subway and its competitors offers a better understanding of consumer perceptions regarding the company and its rivals (Butt et al., 2018, p. 963). Brand characteristics, which the Brand should hold, usually include freshness, customization, affordability, and health awareness.
Through the competitive analysis, key players identified in this industry are McDonald’s, Burger King, and Wendy’s, among others, with unique brand positions and offerings (Baldwin et al., 2023, p. 67543). McDonald’s focuses on fast and excessive eating, but Subway emphasizes freshness and applicability, as shown in the figure.
1.3.5 SWOT Analysis
A SWOT analysis usually helps develop strategies to focus on strengths and limit weaknesses (Coman & Ronen, 2018, p. 600). Below is a SWOT analysis of Subway’s Strengths, Weaknesses, Opportunities, and Threats concerning McDonald’s, as done by Meena in 2019,
Figure 12and 3; SWOT analysis comparing McDonalds and Subway (Source: Meena, 2019: online)
1.3.6 CBBE (Consumer-based Brand Equity) Model
It measures brand equity regarding brand awareness, brand associations, loyalty value, and perceived quality (Constaza et al., 2018, p. 29). It also helps demonstrate global brand recognition, health consciousness, and customer loyalty. Keller’s CBBE model is as shown below:
Figure 13: Keller’s CBBE model (Source: Kevin, 2019: online)
1.3.7 PODs and POPs
PODs underline the critical areas in which Subway is distinct, such as freshness, customization, health consciousness, and accessibility, while Points of Parity (POPs) comprise price positioning, branding differentiation, product offering, and size flexibility (Bajj, 2020, p. 56).
In conclusion,Subway’s brand exploration reveals its strengths, where freshness, nutrition, and customization are distinctive.Using strengths and weaknesses, Subway can remain dominant in the fast-food industry.Also, using PODs and POPs effectively, Subway can remain unique and competitive, satisfying its customers’ needs.
1.4 Comparison of brand inventory and exploratory
The brand exploratory inventory provides separate views of a brand’s position in the market, perception, and condition (Aboelenien & Nguyen, 2023, p. 201). Comparing these two approaches is an excellent factor in getting the best ideas on how brands like Subway operate in the fast-food industry.
1.4.1 Brand Inventory
Tangible Elements: Brand inventory is accurate in so far as its elements are logos, slogans, packaging, and products it offers (Gunelius, 2019, p. 70). As for the Subway restaurant, it will include targeted linguistic analysis of the Subway logo, Subway’s store design, the content and menu items of its menu, and the promotional materials of that restaurant.
Objective Evaluation: It involves a critical assessment of the resources a brand offers (Park et al., 2018, p . 64), ensuring the Brand is in line with what it needs and the targeted market.
Internal Focus: Brand inventory is more inward-seeking, determining the strengths and weaknesses within the Brand and which particular offerings and strategies are sustainable (Luo & Bu, 2018, p. 32). It focuses on internal branding, employee engagement, and culture alignment with customer interactions
1.4.2 Brand Exploratory
Perception and Associations: Brand exploratory examines perceptions, associations, and feelings individuals carry toward the Brand (Low & Lamb, 2018, p. 7). It uses qualitative research techniques to dig into the subconscious attitudes and beliefs surrounding the Brand, for instance, the factors that motivated Subway’s brand values in quality, freshness, and healthiness.
Emotional Connections: In contrast, Brand explorative probes into consumers’ emotions towards the Brand. It attempts to step beyond physical elements to know the perception of consumers (Sullivan, 2019, p. 346) about issues like healthiness, freshness, and value.
External Focus: Brand exploratory looks outside, analyzing how the Brand compares to competitive brands and how the Brand fits into the consumer’s lifestyles and preferences (Klein et al., 2019, p. 30112). Customer loyalty is built through prioritizing customer experiences, feedback, and innovation, thus developing brand loyalty.
Brand exploratory is crucial when analyzing emotional connections, brand loyalty, and preference (Hwang & Kandampully, 2018, p. 21). About Subway, consumer decision-making perceptions regarding healthiness, freshness, and value. Without sufficient depth in the understanding of consumer perceptions and emotional attachment to the Brand, limitations to brand differentiation and effectiveness in connecting to its target audience may occur.
Brands like Subway need to make substantial brand analysis investments, such as brand exploratory, to understand the consequential links and sustain loyalty (Adhikari & Panda, 2019, p. 101). Consumer perceptions and unmet emotional needs can help brands develop strong positions in the market and create sustainable bonds with their customers.
1.5 Key Findings
There are some crucial findings from a detailed review of the Subway business and its standing in the fast-food industry. The first thing to note is that Subway has become a familiar brand that has spread across several locations globally. Its main competitive advantage was the dependence on fresh ingredients and the ability to customize sandwiches, which was interesting for healthy people who were always seeking an easy meal format.
But, despite the initial effectiveness, Subway has to compete with traditional and similar competitors, emerging healthy fast-food chains. In addition, volatile consumer preferences, especially among the youth, directly impede Subway’s ability to stay relevant and seize viable market spheres. Moreover, in the past, issues and surrounding events with the uproar about franchisee relations and stores’ closure conflicted with Subway’s overall brand perception and loyal clients.
1.5.1 Recommendations for brand strategy marketing
Enhance Menu Innovation and Customization: A critical measure for Subway to contemplate is developing its menu innovation and alternative highlights. Whereas the brand equity for Subway is based on a premise of customizable sandwiches and its execution thereof, the entity can build and capitalize on the above through innovation in terms of ingredients, flavors, and dietetic options that would address the needs of the broad consumer base. Performing detailed market investigations and keeping a tab on current trends being observed by replacing foods has to be knowledge in the area of Subway can capture such chances to fresh its menu and be out ahead of its rivals. In addition, technology like mobile applications or interactive kiosks allows customers to customize their orders effortlessly, improving their dining experience from their perspective.
Revitalize Marketing and Brand Messaging: Another essential thing to be done by Subway is revamping its marketing and brand keyring needs strategies. They must create a value proposition for the consumers while tackling any negative publicity or controversies that remain attached to their brand image. A devoted investment in different campaigns, in a vast percentage of social networks, digital channels, and also, especially, in traditional channels, will allow Subway to get to their clients and acquire new ones. In addition, highlighting Subway’s focus on Sustainability, community involvement, and high-quality ingredients may appeal to socially conscious shoppers and provide a competitive advantage in an oversaturated market space.
By undertaking these intelligent moves, Subway has the potential to fortify its brand positioning with certain superior customer relationships, leading to sustainable growth in the fast-food sector that continues to grow increasingly aggressively. By consistently evolving, with a solid brand to take to market and re-establishing the focus on consumer satisfaction, Subway can adapt to changes and become a better choice for individuals seeking something fresh and designed to their liking.
1.5.2 Conclusion
Even though Subway has been going through ups and downs in the past few years, brand awareness remains reasonable. This achievement has a significant connection with its brand communication. It is nice to see that Subway ensures brand equity with consistency in freshness, value, and satisfaction and an improvement in digital engagement with the customer.
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