The Rise and Fall of Subway

History of Subway
• Started in 1965, Subway is the fastest growing food chain in the
world.
• This sandwich chain has more than 40000 locations as compared
to 35000 locations of McDonald’s.
• It was also named the No. 1 franchise opportunity in 2010
 Here are a few reasons why Subway has become
ubiquitous:

• Healthy perception:
The “Eat Fresh” tagline was introduced along with
the logo enabled Subway to establish a strong brand
image. It could now be marketed to potential
franchisees.
• Customer engagement:
Subway was one of the early adopters of the
restaurant layout where one could watch his food
made right in front of him. This allowed for endless
customization and reassurance.
• Creative locations:
Thanks to its healthy food positioning, Subway
gained entry into locations where fried-food biggies
could not get into, such as hospitals.

• Unified standard:
Every Subway restaurant around the world has a
unified design, unified menu and the same taste &
style of pure SUBWAY food.
 Fall of Subway
• Subway is facing declining sales and hundreds of store closures.
• It has fallen behind on food industry trends and this could
possibly be killing the chain.
• From being the restaurant chain killing its rivals to one facing its
own deterioration, numerous factors have contributed to its
present situation.
Here’s why Subway is facing a crisis:
• Arrest of Subway spokesperson:
Jared Fogle, the person responsible for giving
Subway the perception that it was healthy, was
arrested in 2015 on account of child pornography
charges. He attributed Subway for his significant
weight loss through participation in several ad
campaign from 2000-2015 until Subway finally
decided to cut ties.
• Loss of value perception:
Subway kept the $5 footlong menu for too long and
thereby shifting away from it became a major
problem. It struggled to overcome the loss of its
value perception after the offer ended.
• Contradiction with its tagline:
The chain which has long promoted an “Eat Fresh”
philosophy has failed to keep up with its standard.
According to US sources, most outlets receive one
or two shipments a week, Moreover, the use of
mushy and rotten vegetables is another major
problem.
• Changing trends:
The changing trends have turned Subway’s
advantages into a problem. Today, people are even
more educated on nutrition, food sourcing and
ethical business models. To create loyalty and sales,
it is not enough to label something as ‘natural’ and
make it affordable.
 CASE STUDY
The Failure of Marketing Strategy of
Subway in Vietnam
• Currently, Vietnam is an extremely lucrative
market for foreign brands because of foreign
consumers. Moreover, fast food is relatively new
in Vietnam due to its form and taste.

• With a new market like Vietnam, Subway did not

anticipate that products from foreign countries
have extremely different spices and eating habits.
Vietnam is a pure Asian country whereas Subway
comes from the American culture.
THANK YOU