Promotion Sales Essay

19329 Words Nov 7th, 2014 78 Pages
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CHAPTER

Advertising, Publicity, and Sales Promotion

In the summer of 1965, 17-year-old Fred DeLuca was trying to figure out how to pay for college. A family friend suggested that Fred open a sandwich shop—and then the friend invested $1,000 to help get it started. Within a month, they opened their first sandwich shop. From that humble start grew the Subway franchise chain with more than 33,000 outlets in 91 countries. Targeted advertising, timely publicity, and sales promotion have been important to Subway’s growth. For more than 10 years, memorable Subway ads featured Jared Fogle, a college student who was overweight but lost 245 pounds by only eating Subway’s low-fat sandwiches like the “Veggie Delite.” Jared says it was a
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Franchisees can develop their own promotions, too. A south Florida franchisee wanted to boost weekend sales at his two stores, so he offered footlong subs for $5 on Saturdays and Sundays. Business boomed—there were lines out the door. The down economy had made customers particularly price sensitive, so the bargain had wide appeal. And the promotion was profitable because the increased volume of sandwiches made up for the lower margin on each footlong. Word got out and soon other franchisees were selling $5 footlongs. Then the franchisees advertising group voted to take it nationwide for four weeks, later extending it indefinitely. Soon it was hard to find someone that didn’t recognize the five finger signs and catchy (and annoying) jingle from the campaign developed by MMB ad agency. It even got mentions on “The Tonight Show.” Subway tries to balance its menu and promotion to appeal to three segments: customers interested in low fat, those most

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concerned about taste, as well as those seeking a good value. The “Eat fresh” theme and copy thrust of some of Subway’s ads appeal to the first two target markets, while in-store signage promotes its “value meals” and $5 footlongs. Subway reinforces its healthy positioning with health-conscious spokespeople. For example, on Twitter @SubwayFreshBuzz customers can find Olympic swimmer Michael Phelps, Olympic gymnast Nastia Liukin, and others promoting Subway’s fresh, healthy fare

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