1.1 Introduction
Founded in 1965 by Fred DeLuca and Peter Buck, Subway has grown into an international fast-food giant with a reputation based on vast arrays of customized sandwiches (Subway, 2018). It is operational in over a hundred nations and has continued flourishing because of its dedication to fresh produce and customization.
1.2 Evolution in the Digital Space
Subway has had the vision to embrace the digital age and has tactically indulged in digital branding within its play, thus accentuating the above. The inclusion of online ordering and delivery services in the digital journey started when the franchise was taking a step inside the fast-food industry, realizing the utmost importance of online accessibility in making its competitive stance in this particular industry (SubwayLive, 2023). This commitment extends to active involvement in social media channels, using Facebook, Twitter, and Instagram for advertising, customer engagement, feedback collection, and trouble handling and resolution (Atherton, 2023). The Subway app on mobile is one example of digital innovation by the brand, providing ease of ordering in addition to loyalty rewards.
Figure 1: Subway’s Social media analytics.
1.3 Recent Performance and Brand Impact
Subway’s recent performance is reflective of dynamism. In North America, same-store sales for the brand gained 9.3% over 2022 in the first semester of 2023. The surge was about 14.5% in the top 75% of locations (roughly 17,000 restaurants), while the vast gain came at 19.8% in the top 50% (around 11,500 restaurants). Subway subsequently reported a whopping increase of 17.8% in digital sales, thus reiterating Subway’s competence to leverage digital touchpoints to drive its revenues (Restaurants, 2023). These figures indicate that Subway is excellently responding to the fiercely competitive market.
2.0 Brand Inventory: Unveiling Subway’s Strategic Marketing
As stated by Keller and Brexendorf (2019), brand inventory explores the strategic manner that a company uses to market and brand its products, including entity identity and communication strategies. For Subway, the global giant in fast food, this analysis would help understand the aspects shaping its brand and market stance.
2.1 Identification of Brand Elements
Elements of the brand Subway constitute a characteristic mosaic in a row of the fast food industry.
Figure 2: A Subway Logo
Another colorful, bright symbol to be mentioned is Subman, often seen in Subway promo materials.
Packaging design is an essential part of maintaining the representation of the brand, and in terms of design identification, Subway meets the requirements. The packaging of Subway’s food is uniquely characterized by a set of bright, fresh, inviting green and yellow colors (Faubert, 2020). These colors featured in these palettes help the brand be positioned as providing its clientele with a wholesome, appealing visual environment to do with food through these colors and thus help compliment the showing of the arrows of the icons and the Subman character on any marketing collateral.
Figure 3: Different packaging schemes for Subway.
Subway creates a cohesive brand with memorable slogans like “Eat Fresh” and trademarks accompanying their signature products.
Figure 4: Subway Slogan
2.2 Brand Attribute Analysis
Subway’s brand positioning heavily relies on its price strategy. In the quick-service restaurant industry, customer preferences are changing, which aligns with this to emphasize customization, freshness, and a healthier fast-food alternative in communications (TBH, 2023).
2.3 Applicable Promotional Events
Subway’s mobile app strategy best exemplifies robust digital marketing strategies. With 150 full-time staff members committed to the digital team, Subway prioritizes technological development, digital strategy, and improving customer experience. Subway’s mobile app has resulted in a significant 17.8% rise in digital sales, according to Digital Vidya (2019), highlighting the effectiveness of its digital marketing strategy.
Figure 5: Marketing tactics used by Subway
2.4 Examining Competitors’ Profiles to Find Similar and Dissimilar Features
A comprehensive knowledge of Subway’s competitive landscape can be obtained by examining direct competitors such as McDonald’s and indirect competitors such as Chipotle (Kaneko, 2022). Similarities between the two industries—focusing on customization and prompt service—highlight accepted practices. Subway’s market positioning is distinguished by its unique selling points, which include its emphasis on healthier food.
Figure 6: Rivals of Subway
2.4.1 Recognizing the Perceptions of Customers
Customer perceptions are shaped by marketing initiatives, brand features, and traits taken together. There is good resonance with Subway’s reputation as a source of innovative, personalized solutions. Positive consumer perceptions are fostered by a personable and approachable brand, enhanced by a vibrant online presence and lively social media interactions.
2.4.2 Evaluating Product and Line Extensions
The way that consumers view line and product extensions is crucial to the development of a brand. Subway has expanded to various outputs such as wrapped sandwiches, salads, and breakfast dishes. The expansion, therefore, shows the adjustment patterns towards the market demands (Forest et al., 2021). Moreover, constant talks and having a listening ear to the consumer’s needs have made Subway shift their preferences to consumer-based products.
3.0 Brand Exploratory: Getting Around the Subway Brand Environment
Brand exploration is a tool that explores the rival markets, consumer demands, and market position from time to time (Kim et al., 2018). Therefore, exploration focuses on brand equity, where the various aspects of consumers are understood and analyzed. The strategy gives rise to a better consumer perception of Subway products.
Figure 7: Concept for brand exploration
3.1 Review of Previous Research Papers
Research, such as TBH (2023), offers valuable insights into Subway’s brand awareness and applicability to health-conscious consumers who prioritize freshness and customization. These findings open the door for brand exploration by revealing how consumers now view particular companies and highlighting possible development areas.
3.2 Media Analysis: Brand and Product Category Interpretation
As Varghese Agrawal (2021) illustrates, consumers are always swayed by what the internet says about a particular product. Therefore, this study intends to initiate digital and traditional programs for keeping Subway products alive and healthy.
3.3 Discovering Knowledge Structures: McDonald’s vs. Subway
3.3.1 Analysis of Rivals
McDonald’s, a significant rival, markets itself as a quick and recognizable option by emphasizing convenience and classic fast-food options. To stand out in the market, Subway, on the other hand, deliberately concentrates on providing a healthier fast-food substitute, customization, and affordability (Rani, 2023).
3.3.2 SWOT evaluation
Brand | Subway | McDonald’s |
Strengths | Health-conscious menu, customization options, affordability. | Global brand recognition, extensive menu variety, and convenient locations. |
Weaknesses | Perception challenges in a highly competitive market. | Perceived as less healthy, criticism for traditional fast-food offerings. |
Opportunities | Growing health and wellness trends, expanding digital presence. | Expansion into emerging markets, diversification of the menu. |
Threats | Intense competition, changing consumer preferences. | Health-conscious trends, increasing competition in the QSR sector. |
SWOT Analysis Table 1
3.3.3 Positioning Map Comparison: Subway vs. McDonald’s
The placement map displays several tactics. McDonald’s prioritizes competitive prices, a wide range of products, and affordability. Conversely, Subway places a premium on customization, quality, and health consciousness, which accounts for its higher pricing point in the marketplace. This visual aid aids in comprehending how a brand is viewed; perceptions of the product line and price point provide information about the appropriate approach.
Figure 8: The placement map shows how McDonald’s and Subway have different strategies.
3.4 Measuring Brand Awareness and Brand Image Depth and Breadth (CBBE Model)
Using Keller’s CBBE model (Çınar, 2020), Subway’s strong worldwide recognition and presence are the main drivers of its high brand awareness. Subway’s broad familiarity contributes to its depth, which reflects customers’ recognition and memory.
Figure 9: The CBBE (customer-based brand equity) approach for Subway
4.0 Important Distinctions Between Brand Exploratory and Brand Inventory: Cracking the Code on Subway’s Complex Brand
4.1 A Critical Analysis of the Principal Difference
The CBBE model is valuable for dissecting crucial differences between Subway’s Brand Inventory and Brand Exploratory. Spooner (2018), with added weight, notes that while the frontal elements of the CBBE doctrine revolving around the Brand Inventory deal with tangible materials, the aspect shaping through Brand Exploratory zeroes on more intangible things, like a consumer’s impressions, feelings, and vibration. With this model, Subway can anticipate awareness and image dimensions, essential information regarding the company’s reputation among its customers in the tremendously competitive fast food industry.
4.2 Importance of Customer Views and Overall Attractiveness
Customer loyalty and advocacy are significantly shaped by the emotional depth created by the brand exploratory, visible in social media comments and customer reviews (Andler, 2023). These intangible details demonstrate Subway’s success in expressing freshness and individuality, forging a human connection beyond typical fast-food consumption’s boundaries.
4.3 Variations in Assessment and Rationale
When a brand maintains a consistent and cohesive branding strategy, slight variations between the brand inventory and exploratory may exist. Subway has always intensely focused on cost, customization, and novelty in its tangible and intangible components (Kolhe, 2023). Subway’s achievement in developing a cohesive and appealing brand image is highlighted by the congruence of its packaging, advertising, and internet interactions with consumer mood (Balboula & Ackermann, 2021). The absence of notable variations underscores the brand’s proficiency in upholding a strong and uniform approach, deftly merging concrete and abstract components.
5.0 Suggestions to Strengthen Subway’s Brand Strategy
5.1 Principal Discoveries
The Subway brand audit finds an extensive presence in tangible and intangible dimensions. According to Sami and Sara (2023), the brand inventory elucidates the strengths of pricing tactics, visual identity, and productive marketing initiatives. The brand exploration strongly emphasizes the influence of consumer sentiment, emotional resonance, and intangible alignment on how customers perceive a brand. The secret to Subway’s success is its ability to successfully navigate the digital terrain while upholding a consistent brand image of affordability, personalization, and freshness across tangible and intangible brand assets.
5.2 Suggestions
5.2.1 Strengthen Personalization and Digital Engagement
The considerable increase in digital sales indicates that Subway’s recent success has been largely attributed to its web presence. Enhancing its digital engagement tactics should be Subway’s top priority to capitalize on this momentum further. This entails improving the mobile application to provide a smooth and intuitive ordering process (Costin & Eslava, 2022). A key component should be personalization, with data-driven insights being used to customize promotions according to the tastes of specific customers.
Furthermore, cutting-edge technologies like chatbots and augmented reality can creatively infuse Subway’s digital strategy. Chatbots can improve customer service and engagement, and augmented reality can produce immersive and engaging promotions (Costin & Eslava, 2022). In keeping with modern expectations, Subway can guarantee a distinctive and unforgettable patron experience by remaining at the forefront of digital innovations.
5.2.2 Cooperative Strategy for Innovation
Collaboration is frequently the key to innovation, and Subway can benefit from forming strategic alliances with companies or influencers in the health and wellness sector (Huguelet, 2021). This strategic partnership might go beyond marketing campaigns to include new product development. Co-branded goods that appeal to health-conscious customers or special offers for similar audiences can provide Subway’s menu with something fresh (Huguelet, 2021). Subway may obtain a competitive advantage in a congested industry by positioning itself at the forefront of health-conscious customer trends and partnering with brands and influencers with similar values.
These suggestions are made to strengthen Subway’s brand strategy by utilizing digital innovations and fitting them with changing consumer tastes. The emphasis on improving digital engagement and investigating potential partnerships for innovation indicates a forward-thinking strategy that can strengthen Subway’s standing in the cutthroat fast-food industry.
6.0 Conclusion
The brand audit conducted by Subway reveals a dynamic blend of material and immaterial components, from a distinctive collection of emblems and symbols to the nuances of consumer perceptions. Subway’s strategic attempts to incorporate healthy fast food ingredients and customization align with changing consumer preferences and position the brand for sustained growth in the face of intense competition in the Quick Service Restaurant (QSR) industry. The interaction of concrete and intangible elements highlights Subway’s ability to adjust to changing customer demands and strengthens its unique brand within the fast-food industry.
7.0 References
Atherton, J. (2023). Social media strategy: A practical guide to social media marketing and customer engagement. Kogan Page Publishers.
Belboula, I. and Ackermann, C.L. (2021). Consumer response to service brand physical elements: Using a semantic priming task to explore the implicit understanding of service brand meaning. Journal of Retailing and Consumer Services, 61, pp.102019.
Çınar, K. (2020). Customer-based brand equity models in the hotel industry: A literature review. Strategic Innovative Marketing and Tourism: 8th ICSIMAT, Northern Aegean, Greece, 2019, pp.281–288.
Costin, H. and Eslava, A. (2022). I am emerging Technology Trends in Hospitality and Tourism—University of South Florida (USF) M3 Publishing, 17(9781732127593), pp.11.
Digital Vidya. (2019). Journey of Subway in Digital Marketing World: Case Study. [online] Available at: https://www.digitalvidya.com/blog/journey-of-subway-in-digital-marketing-world/ (Accessed: January 19, 2024).
Faubert, B. (2020). Walk the Line: Betwixt [In] Between. Arts.
Forrest, J.Y.L., Novikov, D.A., Larson, S., Wang, F. & Yang, J. (2021). Competitive advantages and values created and attained out of well-crafted customer value propositions. Studies in Business and Economics, 16(2), 53–73.
Huguelet, G. (2021). What do the influencers think?: An analysis of brand-influencer relationships from health and fitness influencers’ perspective.
Kaneko, C. (2022). An Overview of the Franchise Advertising Rules and New Forms of Advertisements. Franchise Law Journal, 42(2), 153–171.
Keller, K.L. and Brexendorf, T.O. (2019). Strategic brand management process. Handbuch Markenführung, pp.155-175.
Kim, E., Tang, L.R. and Bosselman, R. (2018). We are measuring customer perceptions of restaurant innovativeness: Developing and validating a scale. International Journal of Hospitality Management, 74, pp.85-98.
Rani, J. (2023). Exploring McDonald’s Adaptation to Changing Consumer Preferences and Trends.
Restaurants, S. (2023) Subway® Achieves 10 Consecutive Quarters of Positive Sales. [online] www.prnewswire.com. Available at: https://www.prnewswire.com/news-releases/subway-achieves-10-consecutive-quarters-of-positive-sales-301884498.html (Accessed: January 19, 2024).
Sami, M. and Sara, K. (2023). Auditory Identity: The Role of Soundscape Branding in Public Transport. International Journal of Advanced Natural Sciences and Engineering Researches (IJANSER), 7(11), pp.168-179.
Spooner, A.L. (2018). Service branding: Driving customer engagement and growth through brand image?
Subway. (2018) History. SUBWAY. https://www.subway.com/en-us/aboutus/history (Accessed: January 19, 2024).
Subwaylive. (2023) Subway’s Brand Reinvention: How It Stayed Relevant in an Ever-Changing Industry. Medium. https://medium.com/@j.eksommi.kl.e3.4/subways-brand-reinvention-how-it-stayed-relevant-in-an-ever-changing-industry-3a08895ae09 (Accessed: January 19 2024).
TBH, T. (2023). Marketing Strategies, Marketing Mix, And STP Of Subway. The Brand Hopper.https://thebrandhopper.com/2023/07/06/marketing-strategies-marketing-mix-and-stp-of-subway/ (Accessed: January 19, 2024).
Varghese, S. and Agrawal, M. (2021) Impact of social media on Consumer Buying Behavior. Saudi Journal of Business and Management Studies, 6(3), pp.51-55.