Did you know Subway was started by a 17-year-old? Fred DeLuca borrowed just $1,000 to open his first shop in Bridgeport, Connecticut.
Fast forward to today and there are 44,000 Subway stores in 110 countries. It’s even listed as the 87th most valuable brand in the world by Forbes.
The man just wanted to pay for college. Now, I’m not sure if he wanted to pay for tuition or buy the whole college.
He found a creative way to stand out and offer his fast food in a way that no one else did. This can show you that you don’t have to be a scientist and create a revolutionary product to be successful.
You just have to find a way to make your product appealing in a slightly different way than anyone else.
How Subway is Different from Other Brands: Product Positioning and Customization
When you think of fast food, you think unhealthy. Fred DeLuca, and later his customers, thought healthy.
Think of Subway’s “Eat Fresh. Feel Good” slogan. They focus on fresh, low-fat menu items that appeal to people who care about eating healthy. Watching your sandwich being made right in front of you also adds a magical sense of “freshness”. This works great because people love options (And feeling in control. Even if it’s just over lettuce and tomatoes.)
Genius, right?
They positioned themselves as the “healthy” alternative in the land of greasy burgers and salty fries Subway.
Positioning means occupying a unique position in your customers’ minds. Subway does it really well by occupying the position of “healthy fast food”. How are you going to do it for your business? You can find out here.
And, good news for picky eaters and people with allergies: You won’t make the whole kitchen hate you anymore! You can build your sandwich just the way you like it! Subway sells you an experience by letting you watch the sandwich being made with the ingredients you choose.
Source: https://newsroom.subway.com/The-Eat-Fresh-Refresh
What people like to eat obviously changes from culture to culture – In Japan, you might find teriyaki chicken and shrimp avocado sandwiches on the menu. Here are the things you should keep in mind when selling to a different culture
Who Does Subway Target With its Sandwiches?
No, Subway does not attack anyone with their sandwiches. Targeting means choosing a type of customer to sell your products to.
Subway is smart about where it sets up shop. They target premium locations with health-conscious crowds willing to pay a bit more.
Their main audience? People aged 18-39 who care about balanced eating (or just want to feel less guilty about eating fast food). You’ll find Subways in busy business districts, malls, and airports – anywhere where there are a lot of people with more money.
Subway carefully chose who they wanted to sell to and then made a product around that. In your business, did you choose the best possible audience to sell to?
Healthy Fast Food: A Real Thing or Misleading Marketing?
We know that Subway’s whole business model is about being a healthier fast food alternative – But we also know that health doesn’t just mean low calories and low fat.
Here’s the thing: while Subway might be a *slightly* healthier option than a triple-bacon cheeseburger, let’s not kid ourselves. Processed bread, sugary sauces, and questionable sodium levels don’t exactly scream “health food.” Did you think a footlong meatball sub with extra cheese was a salad?
We’re not here to discuss what health is and isn’t, but this can teach us a lot about misleading marketing. If you want your business to function well in the long run, you need to be transparent and always tell the truth about your product. While Subway probably is a healthier alternative to fast food, whether it’s actually healthy for you is debatable.
Also, there was an ongoing lawsuit claiming that Subway’s tuna isn’t 100% tuna. However, Subway won in court and defended its image.
Since 90% of businesses experience some form of litigation, you might also have to defend your brand from evil spirits some day. Read here to learn how to maintain the integrity of your brand and manage crises for your own business by using a good PR strategy.
Popular Marketing Campaigns
Yes, the product is really smart, but Subway has rolled out some great campaigns over the years. Notice how they all try to make the customer feel something, instead of focusing on logic:
- Eat Fresh. Feel Good: The message they were conveying was “feel good while eating and feel good by fueling your body with high-quality food”.
- Eat Fresh Refresh: Complete change of menu: more freshness and more high-quality meat. Refreshing the menu means new things to try and more quality. They also brought back many of the original sandwiches, which made everyone nostalgic. Notice the emotions?
- Five Dollar Footlong: This was an amazing deal and it was introduced in the recession. Revenue from $5 footlongs alone topped $3.8B. Sadly, the campaign went very wrong because they did not stop it in time. With deals and promos, you need to be very careful.
- Make it What You Want: New ingredients that allow you to customize your sandwiches even more. Again, customization is a big part of the whole Subway genius.
- Chuck and Community: Yep, a TV series! It got everyone talking about Subway for a while. Our modern small-business version of this would be being backed by an influencer.
Subway’s Digital Marketing: Use The Strengths of Each Platform
Subway tripled their digital sales since 2019, reaching $1.3 billion dollars. Their secret? Constant innovation for their audience.
Most of their marketing game is tailored to a younger audience now. They use memes and funny posts to stand out from the crowd. If that makes you confused, trust me, I know how you feel. It’s not always easy to adapt.
They also made it easier for people to buy their products with self-serving kiosks, a useful mobile app, and getting on platforms like UberEats.
Every social media platform has its strengths and weaknesses. In your marketing, use different social media platforms in different ways (unless you want to post 3-hour-long videos on TikTok, but trust me it won’t work). This is how Subway puts social media to work:
- Instagram: Mostly visual – Showcasing fresh, succulent sandwiches. Today, Instagram uses memes and Gen Z language, since a large part of Instagram users are from that generation. Do you still believe you need to sell with logic?
Source: https://www.instagram.com/subway/?hl=en
- Facebook: Giving updates about the menu and promotions. Notice the difference between Instagram and Facebook (younger vs older audience)
Source: https://www.facebook.com/subway/
- Twitter: Talking to consumers directly and handling complaints.
- Mobile App: Discounts, rewards, and personal recommendations for loyal customers. In the pandemic, they added features like “Order Ahead” to improve the experience even more.
- NFL Partnership: In 2022, Subways renewed its partnership with the National Football League, which was a great hit and it reached a lot of people. You might not be able to work with the NFL or sport stars like Steph Curry yet, but there are many smaller influencers out there who will happily promote your product. Just make sure you like them and their influence.
- Subway NFTs: Some years ago, Non-Fungible Tokens (NFTs) were all the hype in the world of investing, especially amongst younger people. Subway saw that and hopped on the trend. I’m not telling you to blindly follow any and every trend, but definitely keep your eye on them, they might make you money.
Innovation and Menu Expansion
- Subway Fresh Forward: Modernizing the menu by adding new veggies, steaks, bolder flavors, and a focus on customization. They also modernized the experience by using self-serving kiosks and updating the vibe of the store.
- Beyond Meatball Marinara Sub: As the need for plant-based options grew, they introduced plant-based meatballs. It’s designed to appeal to vegetarians and vegans.
- Subway Series Launch: Some people love customizing their sandwiches, while some people don’t want to put a lot of thought into it. So, Subway added 12 new signature sandwiches to make everything simpler.
- Footlong Sidekicks: In January 2024, Subway started selling foot-long cookies, churros, and pretzels. Sounds pretty bizarre, right? It was actually a massive success, with over 3.5 million sold in the first two weeks. The reason this was such a success is simple – some people were simply looking for a snack, not a whole meal. Sometimes you just have to identify what your customers want and give it to them.
Is anyone else’s mouth watering or is it just me?
Over the years, Subway didn’t just expand their menu into infinity. In 2022, they reduced the menu by one-fifth to make it easier for the customer to decide what they want. If your customers get overwhelmed when they see your offers, I have bad news for you.
Always research the wants and needs of your customers and update your product. Here you can learn how to create an irresistible product.
Subway Cares
Subway’s not just about the food – they give back too. You should give back to the community just for the sake of helping. The added PR is just a bonus. (PR, What? Here’s how you can use Public Relations as a form of marketing).
This is how Subway gives back:
- Nutritious Meals in Crises: Providing meals to people in war zones.
- Scholarships and Mentorships for Sandwich Artists: This one is pretty self-explanatory. Starbucks is also a very famous example of treating their employees right.
- Donations to nonprofits: In March 2024, the Subway Cares Foundation donated a total of $300,000 to six nonprofits focused on youth development. No matter how big or small your donation is, you’re always making a difference.
Takeaways
The 17-year-old Fred DeLuca built a successful sandwich brand by selling to health-conscious people with more money. Next time you bite into a Subway sandwich, remember how healthy you felt.
Think about these questions to make your product irresistible, just like Subway did:
- Are there customer needs in your market that aren’t being met? (Subway tapped into the demand for healthier fast food)
- How can you make your product or service an experience rather than just a purchase? (Seeing the sandwich artist make the sandwich in front of you)
- Who is your ideal customer and how can you please them? (Subway targets health-conscious individuals aged 18-39 who have more money)
- Are you fully transparent about the good and the bad of your product? (Is Subway healthy or just healthier?)
- Do you have a way to fight for your brand image in case someone tries to attack it? (Using PR)
- Can you tailor your product for different cultures? (Teriyaki chicken and shrimp avocado sandwiches in Japan)
- How can you keep your employees motivated and committed? (Scholarships and mentorship for sandwich artists)
- How can you continuously adapt your product or service? (New veggies, proteins, plant-based options for vegans and vegetarians)
