Subway Sandwiches Sales Promotion and PR Strategy

Introduction and Existing Sales Promotions

In the past, Subway Sandwiches has released a series of sales promotions targeting both new audiences and current customers. For instance, the restaurant instituted punch cards that allowed the user a free sub after a certain number of subs were purchased. The company also tried a variety of pricing promotions, such as a list of six-inch sandwiches available for $2.49. Currently, the restaurant promotes its footlong sandwiches with several sandwiches available for five dollars; this was preceded by an older "Two for Tuesdays" campaign that allowed customers to purchase two sandwiches for one price (Advertising and Promotion, 2005). Although Subway's sales promotions have earned reasonably successful results, a set of innovative proposals follows.

Proposed Sales Promotions

The Subway Value Menu

Unlike Wendy's, McDonald's, Burger King, and even KFC, Subway has no dollar or value menu. In fact, as far as fast food goes, the food sold at the restaurant is fairly expensive. Although Subway can charge higher prices than its counterparts because its sandwiches use fresh ingredients and greater amounts of ingredients than the average hamburger or chicken sandwich, an excellent promotion for the restaurant would be to create a snack-size sandwich that could be sold for around one dollar. The restaurant could then expand the promotion by creating a snack-size meal that includes the sandwich, a cookie, and a drink for a lower price than the full-size meals.

Menu Additions

Through advertising and product selection, Subway has tried to distance itself from fast food competitors for quite some time. Although McDonald's, Burger King, and even Arby's have tried to launch submarine sandwiches, Subway's unique products have allowed the restaurant to become the leader in sub-sandwich sales. Regardless, other fast food restaurants like McDonald's, Wendy's, and even Taco Bell offer a wide variety of menu options, ranging from smoothies and sandwiches to salads and sweets. Subway offers only drinks, chips, cookies, and sandwiches — which can also be ordered as salads. In order to promote their food more broadly, Subway should launch a variety of new menu items such as upscale coffee drinks, smoothies, and unique hot foods like potpies or stir-fry bowls. This way, Subway will attract not only current customers but also new customers and groups of people who can all be satisfied dining together.

Time Guarantee

Customers want fast food to be just that — fast. Potential Subway customers may choose McDonald's, Burger King, or Wendy's because those restaurants are known for delivering orders quickly. Some customers may be deterred from choosing Subway because they expect a longer wait time for a custom sandwich. Because customers must instruct workers how to make their sandwiches almost from scratch, they may also worry that employees will make errors when constructing their orders. A way to counter this perception is a sales promotion that offers free sandwiches to customers who wait longer than a specified time or who receive incorrect orders. With this guarantee, customers will be more likely to visit the restaurant — potentially hoping to receive free food — and will likely be pleasantly surprised by how quickly and accurately their orders are assembled.

On the Go Menu

Subway is not known for being one of the faster-paced fast food restaurants. Many potential customers do not visit the establishment because some locations lack drive-throughs, and even those with drive-throughs may deter customers who do not want to place a custom order on the spot. To address this problem, Subway should introduce a set of "on the go" sandwiches. In addition to the time guarantee described above, these pre-made options will allow customers to receive their orders as quickly as possible. Customers would have the option of ordering "on the go" sandwiches at the cashier's station. These sandwiches would be freshly made each hour and placed in a cooler with condiments on the side. To keep costs down, Subway should limit "on the go" offerings to basic varieties such as turkey, roast beef, or Italian BMT. In addition to this, the restaurant should implement a system that allows customers to place orders by phone, internet, or text message, and then pick up those orders immediately upon entering the store or going through the drive-through.

Public Relations and Publicity Background

In the past, Subway has participated in a variety of public relations and publicity campaigns that earned the company national media attention. Probably the best example is Subway spokesman Jared and his Subway diet. In 2004, Jared, a 26-year-old, claimed to have lost 245 pounds by walking to Subway restaurants and eating Subway sandwiches (the Subway Diet, 2004). Since its creation, Subway's PR and publicity campaigns have primarily targeted audiences seeking healthy and fresh foods. The Subway Diet is the most effective of these publicity campaigns. Although Jared actually did lose weight through the Subway diet without initial solicitation from the restaurant, his success allowed the sandwich shop to run a publicity campaign that further distanced it from other fast food chains. Jared helped Subway differentiate itself by claiming that his struggle with weight resulted partly from his consumption of other fast foods (the Subway Diet, 2004).

Jared remains a symbol for Subway, and the restaurant's PR and publicity plan continues to target audiences who want healthier, fresher foods. However, Subway cannot rely on Jared indefinitely. Although the spokesman still appears on the company's website (Subway, n.d.) and should remain there, Subway now needs to launch a campaign targeted toward audiences who do not choose fast food restaurants based on healthy or fresh ingredients, but rather those who choose fast food for its price and convenience. Like the sales promotions proposed above, the following PR and publicity campaign targets these consumers.