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

Heinekens new commercial- so funny, but effective?

The recent Heineken commercial was a big success in terms of reach and frequency. Originally created by their Dutch advertising agency for the domestic market, the spot soon became a viral hit in the web and is now also aired internationally in mainstream TV (at least in the US). It has been lauded mostly because of its originality and creative wit. However, the fundament of successful advertising is its strategy. Creativity usually only assumes the role of magnifying the brand’s point of difference. Probably because the spot was initially destined only for the Dutch market, it fails to accurately fit into the international beer landscape.

In contrast to the US or most Western Europe, Holland is a much more horizontal culture, where individualistic proliferating is not regarded positively. Sayings such as “the nail that sticks out gets hammered down” or “if you put your head above the water, it gets chopped off” may well describe the archetypical Dutch culture. In the Netherlands, Heineken is not the leader, primarily because it is perceived as a global powerhouse. I studied there for three years and my feeling is that people prefer beers like Grolsh, because they are more modest and down-to-earth. Consequently, hoping to not lose track, at least in recent years, Heineken seems to have built upon the social value and friendship-forming ability of beer as its USP- a positioning that also becomes obvious in the recent “walk the fridge” commercial.

However, the beer’s major markets are abroad, and therefore also the communication strategy needs to be adapted more to the local audiences. Think global, act local. Heineken cannot take their ethnocentric approach and extend its domestic brand equity smoothly over the borders of its small country.

Interestingly- probably as a result of the failure of communication to steer the brand into the desired direction- in the international arena, Heineken seems to have drifted into the exact opposite position, as in its domestic market: The beer seems to possess a rather upscale image, and people don’t buy a Heineken for its great taste or because of its association with friendship, but rather to make a statement. Heinken stands for wealth, prestige and (arguably) style. Heineken should elaborate on what is already in the mind of the consumer, in order to make a difference, and clearly target a specific market segment.

Does this mean that Heineken should exclude all the average beer drinkers as a target? No, the target is not always the market. Just as much as Marlboro cigarettes are not only smoked by rugged, male cowboys, Heineken does not have to be consumed exclusively by upper class, social braggarts. Consumers assume different roles in their lives, and also the ones who just wish to be perceived as the latter would be potential consumers. One of my favourite branding quotes by the author Wiliam Feather - (also indicated on the right) illustrates this notion: "The philosophy behind much advertising is based on the old observation that every man is really two men -- the man he is and the man he wants to be."

Just as many other marketers, Heineken seems to view consumers’ minds as blank pages on which they can write anything they want- if only they can find a clever enough way to do so. But people don’t passively absorb these messages, but rather create their own meaning by mixing the brands messages with their own memories. And the Heineken ads might subconsciously confuse the perception they have build up in their own minds.

And the claim “serving the planet” seems to be misplaced as well- basically another meaningless slogan in a sea of meaningless slogans. What consumer benefit does it offer? Upon the question why does one choose Heineken, no consumer would respond “because it serves the planet”- the reason-why is missing. Even though the slogan fails to elaborate on people’s perception, the message of “the leading global beer” might be more appropriate, as people often equate “leading” with “superior”.

It seems a big waste of marketing dollars to try to jump on the positioning bandwagon of 90% of global beers with its focus on friendship and social ties. In its communication messages, Heineken fails to differentiate itself from the rest of the beer brands out there and therefore stays far behind the potential.

Francesco Wesel MA
Integrated Marketing Communication
www.francescowesel.com
www.brandnewtimes.blogspot.com

Record low in voter turnout for EU elections- what Bruxelle can learn from Marketers

During the first election in 1979, 63% of the people still voted in the EU parliamentary elections; last week we have reached a record low turnout of only 43% - a clear sign of a weakening trust in the institutional government. What are the reasons? Already years ago – before the eastern enlargement to add 10 Eastern European countries to the EU core of 15- the debates circled around whether the EU will be able to sustain all the growth initiatives at once. “Integration vs Enlargement” were the key words in the argument. In many ways- I wondered- the political move resembles the characteristics of a typical brand extension. And while a brand manager would have argued that the EU and its prospective new members are not ready for an extension, politicians in Bruxelle chose the opposite. Let’s enlarge first, and then take care of making the system work, especially bringing the EU closer to the people.

When looking at certain brand categories such as vodka with Absolute (Sweden), Finlandia (Finland) or Smirnoff (Russia), it becomes obvious that not only for an international organization -like the EU brand- countries can be powerful symbols of brand association. Take a careful look at a Louis Vuitton watch, and you’ll note that it is ‘Swiss Made’. Switzerland’s legendary watch- and clock-making history seems fundamental for Louis Vuitton to keep its perceived quality during the transfer phase, just as Louis Vuitton’s migration into the shoe business was associated with the claim ‘Made in Italy’, because it is the well-known origin of elegant shoes. Louis Vuitton higlighted its decade-old strategy of using country-of-origin as part of its a branding strategy. The key for the succes of these extensions seems to have been that the consumer was able to believe that the core values surrounding the mother brand sit comfortably with the newly introduced product. This match between the original EU values and its new member states has not been very prevalent until today- as it became obvious in the preface to the Iraq war, for instance. There are few brand links beyond the EU logo.

In the marketing world, some corporate names (such as Kraft, GE or Ford) are on so many products that they lack strong specific associations. Their value then is primarily to provide feelings of recognition and perceived quality. However, the EU brand also did not seem to be well established at the time in the mind of its people at this stage. Only if the original EU 15 brand associations were very strong, transfer of negative associations (of the new members) to original brand (the EU core) would be less likely.

Because this was not the case, the extension not only dramatically watered down the key asset and brand name of the EU in its original setting, but also in the new context- the voter turnout was the lowest in Eastern Europe, with some countries only reaching around 20%.

To return to the initial question: From a brand manager’ point of view, was it wrong to enlarge the EU rather than integrating its core first? Probably yes. While the political implications are complex, a brand manager would have criticized the EU for another strong reason: the extension has not been supported by communication to transport the EU core values to the new members and enhance the brand image altogether. Mental associations that are shared, are strong, shared by many and affect consumer behavior should have been promoted strongly. Only that way, the enthusiasm and trust in the institutions can be substantially leveraged, in order to ensure a solid operational basis to the EU functioning through the mandate of the people in the long run. Branding and politics do not exclude each other. The Obama election campaign can serve as a great example for this endeavor. Change - and Positioning - You Can Believe in.

Francesco Wesel MA
Integrated Marketing Communication
www.francescowesel.com
www.brandnewtimes.blogspot.com