Marketing Mix of Subway and 4Ps (Updated 2024)

The Marketing mix of Subway analyses the 4Ps of Subway, including the Product, Price, Place, and Promotions. Subway is a franchise that has fast food restaurants all over the world. This American company serves salads and submarine sandwiches. Doctor’s Associates, Inc. owns this private company and operates it globally. “Making your own sandwich” was what Subway wanted their customers to be empowered for. This required a unique Marketing mix for Subway. Subway has been following the personalization marketing strategy, its quality products, franchisee support, and a loyal customer base. It has resulted in its strong base and also resulted in intense competition from its competitors, like

• McDonald
• KFC
• Burger King

About Subway

• Type: Fast food restaurant
• Industry: Food and beverage
• Founded: 1965
• Founders: Fred DeLuca and Peter Buck
• Headquarters: Milford, Connecticut, USA
• Area served: Worldwide (over 40,000 restaurants in 100 countries)
• Current CEO: John Chidsey
• Number of employees: Over 375,000
• Major products: Submarine sandwiches, salads, and wraps

Subway Product Strategy

The main product on the menu of a Subway restaurant is the submarine sandwich. Besides this, the other restaurant menu includes baked goods like muffins, doughnuts and cookies, salads, and wraps. There are 6-8 different sauces, six bread types, and different vegetarian and non-vegetarian options to make your SUB sandwich.

Subway, known for its customizable sandwiches, offers a diverse range of pork and beef products that cater to various tastes and dietary preferences.

The new Product Mix of Subway in 2023 is as follows (Source).

1. Sandwiches: Customizable Subs: Customers can choose from various breads, fillings, vegetables, cheeses, and sauces to create their subs; Signature Subs: Pre-designed sandwiches like the Meatball Marinara, Tuna, and Turkey Breast, among others; Breakfast Sandwiches: Options include egg and cheese, with a choice of bread and additional toppings.
2. Wraps and Salads: Wraps: Similar to the subs but in a wrap form, offering another portable and customizable option. Salads: Fresh salads that can be customized with various ingredients and dressings, often mirroring the sub-options.
3. Sides and Snacks: Cookies: Various freshly baked cookies, such as chocolate chip, oatmeal raisin, and white chocolate macadamia nut; Chips: A selection of chips and crisps, often catering to local tastes; Soups: Available in select markets, typically including chicken noodles or tomato basil.
4. Drinks: Fountain Drinks: A range of soft drinks typically available in self-serve fountain machines; Bottled Beverages: Options include water, sports drinks, and juices; Coffee and Tea: Hot beverages are available in some locations.
5. Kids’ Meals: Kids’ Pak: Smaller sandwiches with a side and a drink tailored for children.
6. Seasonal and Limited-Time Offers: Special Items: Subway often introduces limited-time offers or seasonal specials, adding variety to the menu and attracting customers.
7. Catering Options: Sandwich Platters and Giant Subs: For group events and meetings; Cookie Platters: An assortment of cookies for catering purposes.
8. Healthy and Dietary Options: Vegetarian and Vegan Options: Subs with plant-based ingredients; Low-Calorie Subs: Sandwiches under a specific calorie count, part of Subway’s healthier range.

Subway’s product mix focuses on customization, allowing its customers worldwide to tailor their meals to their preferences, a key aspect of their brand identity. Additionally, Subway continually adapts its menu to include new flavors, seasonal items, and healthier choices to meet evolving consumer tastes and dietary needs.

Subway Place Strategy

Subway has the distinction of being the fastest franchise in terms of growth worldwide. This restaurant chain has become the largest restaurant operator, nearly 42,673 in number, with franchises in one hundred and eight countries. The international headquarters of the company is located in Milford, USA. Subway’s international operations and distribution strategy are handled through five regional centers.

The office for the European regional franchise is in Amsterdam; the New Zealand and Australian offices are in Brisbane; the offices of the Asian region are situated in Singapore, Lebanon, and Beirut, whereas the Latin American regional office is located in Miami. The company is a 100% franchisee-based organization, with all the restaurants being independently possessed and maintained.

To open an outlet for Subway, a person must pay a franchise fee that enables him to use the brand name to build the outlet. Subway has been opening subway stores and some restaurants in non-traditional places, and this unusual activity has proved to be a winner. The subway outlets are generally opened in premium areas where people are more calorie-conscious.

Here’s the place strategy of Subway.

1. Strategic Location Selection: Subway typically situates its outlets in high-traffic areas like shopping malls, busy streets, universities, and airports, ensuring maximum visibility and accessibility to a diverse range of customers.
2. Global Franchise Network: With a solid global presence, Subway operates through a franchise model, allowing for rapid expansion and localized management, adapting its services to cater to regional tastes and preferences.
3. Convenience and Accessibility: Many Subway restaurants offer additional convenience features such as drive-thru services, delivery options, and online ordering, catering to the growing demand for quick and easy meal solutions.
4. Localized Adaptation: Subway adapts its physical presence to suit local market conditions, with variations in store design, size, and layout, ranging from standalone restaurants to smaller kiosks in shared spaces.
5. Partnerships and Co-Location: Subway often collaborates with other businesses (like gas stations, convenience stores, and department stores) for co-location, leveraging shared customer bases and reducing overhead costs.

Subway Pricing Strategy

Subway is premium priced because it has a higher price when you compare it with KFC and Mcdonald’s. How does the high-priced food and low-calorie content of Subway sandwiches make them deserving of their price? Subway has always maintained better quality food products and kept their prices higher to match the product quality. Of course, the quantity of a sub sandwich is significant, too, so in general, it is at par with other competitors.

Subway’s pricing strategy is a sophisticated blend of competitive positioning, customer value, and market segmentation, enabling it to maintain its status as a leading fast-food sandwich chain. Here’s an expert breakdown of advertising strategy:

1. Competitive Value Pricing: Subway strategically prices its products to offer better value than its competitors. Subway is a superior choice in the fast-food industry by providing quality, healthy ingredients, and affordability.
2. Psychological Pricing: The brand frequently employs psychological pricing tactics, such as pricing sandwiches just below whole numbers (e.g., $4.99 instead of $5.00), to create a perception of more excellent value and affordability.
3. Product Line Pricing: Subway’s menu is structured to encourage customers to spend more. Basic sandwiches are affordable, but premium ingredients and add-ons have higher prices. This strategy caters to a wide range of customers, from those seeking a budget meal to those willing to pay more for premium options.
4. Promotional and Discount Pricing: Regular promotions, like the “$5 Footlong” deal or meal combos, attract price-sensitive customers. These promotions are designed to increase foot traffic and upselling opportunities.
5. Dynamic and Localized Pricing: Prices at Subway can vary by location to account for local economic factors, rent, and demographics. This flexibility ensures market relevance and maximizes profitability across diverse regions.
6. Loyalty Program Incentives: Subway uses its loyalty program to offer personalized deals and discounts. This drives repeat business and gather valuable customer data for targeted marketing and pricing adjustments.

Subway’s pricing strategy is a careful balance of offering value to the customer while maintaining profitability. It’s a dynamic approach to a global menu that adapts to market trends, competition, and consumer preferences, ensuring Subway’s enduring appeal in the fast-food market.

Subway Promotion Strategy

Subway uses numerous strategies in its promotional activities. Their slogan, “Eat Fresh,” emphasizes the fact that its items are all freshly baked and made from fresh ingredients. In 2007, a commercial in the US featured “Peter Griffin,” the cartoon character promoting the “Feast Sandwich” on the Subway menu. In another promotional move, the company has also used “instant win,” which is a type of game.

Subway also ran a product campaign in the series Chuck shown on TV. In an unprecedented promotional digital marketing move, the company offered a submarine sandwich that was one foot in length for five dollars. This promotional activity took place in 2008 and was introduced for a limited time. Subway has also collaborated with health organizations and sports personalities to spread awareness about its brand and products.

Their charitable and non-profit work has also proved to be a huge promotional boost for the organization. Regarding media vehicles, the company regularly uses ATL promotions in the form of television and print advertisements. It uses BTL activities like price discounts and other marketing strategies to attract customers.

Some Recent Video ads and Print ads for Subway are:

Liked this post? Check out the complete series on Marketing Mix