Subway and the "$5-footlong" Beast

“$5 foot long”- that jingle of the Subway advertisement seems to have pursued me on nearly any of the rare occasions I switch on the TV. Was it a just coincidence and a great way of targeting; or was the media planning intentionally that bold to ensure highest frequency and reach? Surprisingly, my friends also knew the spot and could hum the melody easily. This makes me wonder: Is a big campaign around a simple sales promotion the new way of recession advertising? And is such exposure and ability to be recounted really favorable for a (short-term) sales promotion? I believe no.

First of all, with that jingle still ringing in their ears for a long time, consumers might become accustomed to the new prices, and expectations might shift- this is dangerous as the promotion is only for a limited time and because the $5 deal not even exist in all Subway franchises. Disappointment seems predetermined. Just as with any kind of sales promotion, a 5$ foot long is motivating and exciting the first time, and perhaps the second time. But eventually customers come to expect it, so companies must cut prices further to create excitement and drive sales.



The second danger is that it the campaign has nothing to do with promoting the Points-of-Difference of the brand and is destined to prompt a competitive reaction. In weakness there is strength for the competitor. One does not have to be a clairvoyant to predict that in no time somebody would come along and destroy the bold campaign, simply by negating the promoted advantage. And surprise, surprise: Quizno as well as Sheetz's now offer the $4 footlong.

And third, as with any kind of this sales promotion, the brand may weaken because brand-building programs were cut. That will force the Subway manager to implement more short-term programs, continuing the vicious cycle and sending the brand into a dangerous downward spiral. But even in these times, Subway marketing must balance building short-term numbers with building a long-term brand.
Subway could clearly profit from maintaining consistency in its messages in order to break the clutter with its “eat fresh” message. As market leader, it still has the pioneering advantage, and rather than engaging in price shouting matches, message consistency and a promotion of the sandwich category could be more beneficial.

The toughest sub competitor Domino which has waged war against subway itself (“Domino beats Subway 2:1 in national taste tests”) could even serve as an additional frame of reference : After the recent food scandal, the freshness value has once again become a serious matter of public concern. If Subway should have followed the No.1 branding rule to keep consistency. Even when times are difficult, it could now allocate the millions wasted on the $5 foot long campaign to really build on its selling proposition in a meaningful manner. It could further offer consumers a more abstract, emotional benefit related to how good and healthy the consumers will feel as a result of eating subway subs. “Eat fresh” is also linked to the fact that subway regulars have traditionally ordered their sandwiches in highly personalized ways. (“one 6 inch, sesame roll turkey sandwich, with extra olives and just a little honey mustard on top”). A trip to Subway can promise self-expression and self-indulgence in an otherwise unfulfilling recession day. Both are examples of how to embellish the brand positioning to changes in the time.

This laddering up from a tangible feature to a functional benefit to an emotional consumer benefit could provide a means of powerfully sustaining Subway’s position. If these points of differences were sustained and consistently highlighted in communication, the brand equity could rise to an extent where customers would not choose to go to Subway only because a footlong sandwich costs $5 instead of $6 for a limited period of time- loyal consumers would even be blind to it. In contrast, Subway needs to stay (at least slightly) higher priced than its competitors to highlight the perceived quality value. With the bold 5$-footlong campaign, Subway has weakened itself. And because it is less protected by a set of powerful, unique perceptions that define it, the brand made itself more vulnerable to direct attacks in the long run.

Francesco Wesel
Integrated Marketing Communication
www.francescowesel.com

Dos Equis- In Focus there is Strength

The Dos Equis campaign is a perfect example of how targeting on the basis of behavioral and psychographical factors can connect much more efficiently with consumers than the conventional demographic segmentation strategies. The Dos Equis benefits clearly infer the user type of the beer- male, occasional beer drinkers of any age who desire excitement and adventure. The beer category is heavily advertised and there is an army of different brands seeking their piece of the pie. However, surprisingly, the segment of occasional users has never been targeted explicitly by any of the numerous brands out there. It is a segment that does not care or cannot differentiate between rational beer attributes (half the carbs, coldest, less filling etc), but rather wants to make a statement about their persona when drinking. The ad is a great example of how brands can connect emotionally by focusing on consumers’ aspirations. In all advertising, the judgments of consumers are rather outcomes of inferential than literal processing- an approach that Zaltman clearly outlines as advantageous in his renown book “how customers think”. Consequently, the link to excitement, socializing and adventure are a clear reflection of the Dos Equis consumer’s desired self- the things that they aspires to in life. Just as older people often aspire to be younger, and younger people want to be older, many people in our work-oriented culture have subliminal aspirations of a life such as the “most interesting man in the world”. In above-the-line-communication, only the brands that manage to connect emotionally with consumers have a chance to break through the clutter and make an impact. And what about the exclamation at the end to “stay thirsty my friends”? The ad indeed made me thirsty for a Dos Equis- or was it the desire to go on an adventurous journey? Well done, Dos Equis!

Francesco Wesel
Integrated Marketing Communication
www.francescowesel.com