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Subway Final Research Report
Colin Holowach
Matt Wilson
Allyson Whelan
Jessica Donahue
Cassie McHale
Brooke Duddie
December 2, 2015
Dr. Hongmin Ahn
2
Table of Contents
Overview-------------------------------------------------------------------------------3-4
Situation Analysis---------------------------------------------------------------------5-21
Introduction-------------------------------------------------------------------6
Brand History and Evaluation ---------------------------------------------6
Product Evaluation-----------------------------------------------------------7
Consumer Evaluation--------------------------------------------------------9
Competitive Evaluation------------------------------------------------------10
Marketing Environment Evaluation----------------------------------------15
SWOT Analysis---------------------------------------------------------------17
Research Questions-----------------------------------------------------------20
Research1: Qualitative Study- 22 – 28
Overview of Focus Groups----------------------------------------------------23
Focus Group 1-------------------------------------------------------------------23
Focus Group 2-------------------------------------------------------------------26
Research2: Quantitative Study – Survey- 29 – 41
Overview of Survey----------------------------------------------------------30
Objective-----------------------------------------------------------------------30
Survey Data Analysis--------------------------------------------------------32
Conclusion---------------------------------------------------------------------41
Overall Findings and suggestions – 42 – 44
References – 45- 47
Appendics I 48 – 49
Research Plan-----------------------------------------------------------------48
Appendices II 50- 51
Moderators Guide------------------------------------------------------------50
Appendices III – 52 -54
Focus Group Interview Notes----------------------------------------------52
Appendices IV-Survey Questions- 55- 59
3
Overview
4
Overview of the Research
In order to gain a better understanding of the social media and advertising platform of
Subway, Mountaineer Media conducted both quantitative and qualitative research
procedures. Our team also strategically used these research methods to evaluate and
analyze the presence Subway currently has online and the demographic groups our client
is reaching in terms of advertising.
Mountaineer Media first produced a secondary form of research to evaluate brand
awareness which was a situation analysis. After conducting a situation analysis and
analyzation of consumer spending reports, our team came to the conclusion that:
 Through aggressive expansion and the cornering of the “healthier alternative”
label, Subway has created a healthy fast food choice image for itself.
 Subway has had an increase in sales in the past year and a steady increase in profit
overall.
 Subway has created a convenient fast food reputation and is globally recognized
for its efficiency and convenience.
In addition to these findings the strengths, weaknesses, opportunities, and threats of
Subway were reviewed and analyzed. Mountaineer Media concluded from the SWOT
analysis that our client is up against various fast food competitors. Our team has also
concluded that although Subway is lacking with a social media presence and its overall
instore atmosphere, our client is widely recognized as an affordable, convenient, and
healthier fast food choice. Mountaineer Media believes that Subway has the ability to
increase their overall presence online and in store with the right tactics and strategic
implementations.
After analyzing all of the secondary information, our team concluded that there was still
some research to be done on Subway’s social media platform and brand awareness
output. To collect further information, Mountaineer Media conducted a primary research
plan to enhance our understanding of where Subway stood with its online presence. Two
questions our team thought was essential to follow out the research plan were:
 Does Subway’s involvement with the “Partnership for a Healthier America” with
spokesperson Michelle Obama create a healthier image for Subway?
 Would further viral marketing and utilization of Internet based tactics result in an
increase in consumer satisfaction and brand awareness?
In order to further understand Subway’s status on the internet Mountaineer Media
decided to formulate and send out a survey to the public. The survey consisted of 17
relevant questions relating to the relationship between Subway and it’s consumers via
social media. The survey also helped our team analyze the demographics that Subway
was reaching out to online and in particular, on social media. Our team also organized
and conducted two focus groups with five participants each regarding the presence of the
“Partnership for a Healthier America” campaign online. Through these groups, our team
hoped to better understand the impact this campaign has had on the public.
5
Situation Analysis
6
Subway Situation Analysis
Introduction
This is a situation analysis of the successful fast food chain Subway restaurants, a
subordinate of the massive parent organization Doctor’s Associates, Inc. Inside is a
collection of methods and secondary data gathered in order to analyze Subway’s internal
environment and surrounding external market. It includes company history, competitor
evaluations, statistical market data, and an in depth look at relative market trends along
with several other key aspects of Subway and its position in the fast food industry.
Subway Brand History & Evaluation
Subway is an international fast food restaurant with headquarters in the United
States. The CEO of Subway, Fred Deluca, opened his first
sandwich shop (pictured right) with the help of his friend
Peter Buck when they were only 17 years old. Deluca
always had dreams of pursuing a degree in medicine but
never could come up with the funds to pay for an
education. This is where Buck came into play and loaned
Deluca 1,000 to open up a sandwich shop which would in
turn help pay for school. Before getting the name Subway,
their first shop was called “Pete’s Super Submarines.”
Their first location was opened in Bridgeport Connecticut
in August of 1965 and the first time the name Subway
appeared was in 1968. The name “Subway” derived from the
shape of their bread, which looked like a submarine and how
long it was.
Together, the pair set a goal of having at least 32 stores opened within the first 10 years
of business. Realizing this was not realistic for a smaller business, the team took the
plunge and made Subway a franchise and brand in 1974.
By 1978, the franchise opened its 100th restaurant and went international by the
end of 1984. By 1990, Subway reached over 5000 open restaurants and expanded
tremendously in the 2000’s. Today, Subway has more than 37,000 locations worldwide
and in 92 different countries. Since the start of Deluca’s first subway shop in 1965, the
brand has become one of the largest restaurant chains internationally. It is also named the
second largest restaurant operator globally. Along with these achievements, Subway been
awarded numerous titles and is globally recognized for its high customer satisfaction and
high quality fresh food. (Subway-History, 2015)
In essence, Deluca was very smart and strategic for finding an investor and
partnering with family friend Dr. Buck. Having a doctor as a core investor and co founder
of Subway steered the brand into a business savvy direction because since Buck is a
doctor, he in turn advocates and markets for healthy eating choices. Subway, being the
healthy and fresh choice, promoted better marketing sales and having Dr. Buck as a face
Pictured: Subways First Shop
http://www.sureewoong.com/lo
go-design/su, 1965)
Figure 1: Pete’s Subs
7
of the company really gave consumers an incentive to choose a healthy meal. Both
Deluca and Buck essentially promoted healthy eating but having a doctor apart of the
founding of the company set the tone for the type of products Subway was offering and
would in turn get consumers to want to eat clean and “eat fresh.
Product Evaluation
Product: Well into their 50th year of business Subway has found a product that sells and
has become a staple in the fast food industry (Subway, 2015). Their product is a fast,
fresh, and nutritious made-to-order sandwich. They currently offer 16 basic sandwiches
that customers can choose from (Subway, 2015) as illustrated by their menu above.
Subway then gives customers the opportunity to customize their sandwich by giving them
different bread, cheese, vegetable and signature sauce options, (Subway, 2015). With
their variety of sandwiches they also offer a variety of size and combo options. You can
get either a 6-inch or 12-inch sandwich and then for your combo you have the option to
get your sandwich with a drink and a cookie, a bag of chips, apple slices or a yogurt
parfait (Subway, 2015). They also offer Fresh Fit meals for kids that include a side of
apples, milk or water and a gift, (Subway, 2015). They also offer salads, which are just as
customizable as their sandwiches, (Subway, 2015).
Strengths of Product: Subway has constantly created products that abide by market
trends. For example, one of the most recent trends was and still is avocados. Subway
created an avocado spread which they then advertised as a way to customize your
sandwich, (Subway, 2015). Subway also started a breakfast line back in 2010 to keep up
with competitors, (Zimmer, 2010). Their breakfast line features five different sandwiches
that are available all day unlike their competitors who only offer breakfast until 10:30
a.m., (Zimmer, 2010). Another strength that Subway has is that their prices relatively
inexpensive. You can get a 6-inch sandwich, a drink and a bag of chips for only $6,
(Subway, 2015). They also have the infamous $5 foot-long, which is very inexpensive
considering the size of the sandwich, (Subway, 2015).
Another thing that Subway has done is that they have created a quick and efficient
system of making food that people enjoy and keep coming back for. They do this by
putting the customer in control and allowing them to create their own sandwich through a
process that resembles an assembly line. The customer can see all of the options, tell the
employee what kind of sandwich they would like and what they want on it and they then
get to see the employee make it right in front of them. In January of 2014 Subway teamed
up with the Partnership for a Healthier America and first lady Michelle Obama to help
support her Let’s Move! Initiative (The White House, 2014). The first lady’s movement
is all about offering healthier options to children and getting them up and moving to
make sure that they grow up healthy (The White House, 2014). Subway made a pledge
to put only their most nutritious sandwich options on the kids’ menu and to encourage
children to pile on the vegetables (Thompson, 2014). They also agreed to meet the
restrictions set by the federal government which involve including a side of apples and
either nonfat or low-fat milk or water as beverage options (Thompson, 2014).
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Pictured above: First Lady Michelle Obama, center, and local area kids enjoy lunch at a
Subway restaurant on Thursday. (Nick Wass for Subway/AP Images) (Thompson, 2014)
““Ending childhood obesity is a cause that has been near and dear to SUBWAY® since
we introduced the Fresh Fit for Kids Meals in 2007,” said Suzanne Greco, vice
president of R&D and Operations for the SUBWAY® brand,”,(The White House,
2014). With this partnership Subway is also using some of their famous spokesmen to
help promote their products and get children interested. Michael Phelps, Olympic
swimmer and Gold-Medalist, Justin Tuck, defensive end for the Oakland Raiders and
Nastia Liukin, Olympic gymnast and Gold-Medalist, were all there to help The First
Lady announce her partnership with Subway and will be a part of the team for the
duration of the campaign, (Thompson, 2014).
Weaknesses of Product: Subway advertises themselves as a fresher option compared to
other fast food chains and although they may be healthier, fresh isn’t quite the case.
While they offer fresh vegetables their breads and meats contain many processed
ingredients. Their meat is made up of some actual meat and water which is then held
together by things like soy protein concentrate and modified food starch which is then
filled with artificial flavoring to make it taste like whatever kind of meat it’s supposed to
be, (Warner, 2011). Their bread contains a chemical called azodicarbonamide which is
most commonly used as a bleaching chemical in the production of foamed plastics,
(Warner, 2011). This is a big problem for them because they are in direct competition
with the restaurant Chipotle, which prides itself on serving only fresh ingredients to
customers. Chipotle offers the same experience as Subway where customers can create
their own food and watch it being made in front of them; the only difference is the quality
of the ingredients. Customers might start choosing restaurants like Chipotle over Subway
when they realize their food isn’t as “fresh” as they advertise it as. Another weakness is
that many of their sandwiches, while advertised as healthy, are not. They have hidden
ingredients, which make them high in fat and sodium, which trick people into thinking
Figure 2: Michelle Obama
9
that they are eating something healthy. Some sandwiches have upwards of 800 mgs of
sodium which is more than a third of the amount of sodium a person should consume in a
day, (Subway, 2015).
They also give customers many options to make their meals unhealthy by offering chips
and sodas with their meals, which take away from the nutritious value of their
sandwiches. One of the most notable weaknesses Subway has is that they are
independently owned franchises, which means that each franchise does not offer the same
options to customers, (Subway, 2015). You might be able to get a certain type of bread or
cheese at one franchise but not at the one around the corner. With sandwich restaurants,
like any other restaurant, people have their favorites and are not happy when they can’t
get what they want. Under the menu section on their website, in breads and toppings, it
shows that all Subways offer certain basic options but then there are additional options
that are only available at certain locations, (Subway, 2015). If Subway could find a way
to offer all the same options at all locations they could increase their sales.
Conclusion: Subway is a company that is constantly growing but staying true to their
roots. They have a solid product and are considered the healthier alternative to many fast
food chains, but are coming into competition with other restaurants, such as Chipotle that
are offering even healthier and fresher options. After teaming up with Michelle Obama,
Subway showed that they want to make their sandwiches healthier, especially for
children, and they are currently working towards that goal. There are many ways for
Subway to improve their product such as providing real meats instead of processed ones
and focusing on lowering sodium and fat levels in their foods and taking the chemicals
out of their breads would be just the beginning of things they could do. They have shown
that they are willing and able to keep up with the fast food industry, which will allow
them to stay in business for a long time if they start to improve their product and make it
as healthy and fresh as possible.
Consumer Evaluation
Consumer Demographics: Adults between the ages of 18 and 34 (index of 113) are the
most popular group consuming Subway; specifically those between the ages of 18 and 24
(index of 112.) These individuals have a slightly higher likelihood of being male; with
the index for male purchases at 102, and female index at 98. (MRI Reporter, 2014)
MRI Reporter’s Spring 2014 Product: Leisure/Sports Report based on purchases at
Subway in the past 6 months reveals specific demographics. Those who attended college
are most likely to purchase Subway with an index of 110; following close behind are
those who have only graduated high school at an index of 105. Most users of Subway
have a professional occupation, are within the upper-middle to high-class range and the
most common household income is between $75,000 and $149,999. These individuals are
most likely to have a child between the ages of 2 and 5. Racially, those of Asian and
Caucasian ethnicity are most likely to be Subway users, both with an index of 103.
Geographically, these consumers tend to reside in the Midwest of the United States with
an index of 119. (MRI Reporter, 2014)
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Consumer Psychographics: Subway offers healthier, more natural alternatives
compared to other fast food chains in America. This attracts consumers who value their
overall health. According to a Mintel report regarding sandwich shop retailing,
consumers are ordering 10% more healthy items at sandwich, sub, and wrap restaurants
compared to last year. (Mintel, 2010) Often times these individuals are trying to lose
weight, and view eating Subway sandwiches regularly as a method to lose extra pounds.
Subway consumers typically lead an overall active lifestyle, as they are more likely to
participate in outdoor activities and less likely to watch television. (MRI Reporter, 2014)
These individuals tend to lead busy day-to-day lives full of activities. They value the
ability to quickly get a meal that is easy to eat in transit. Within a Mintel Report
regarding sandwich shop retailing there are specific target groups identified among
sandwich consumers. One target group is categorized as “convenience driven” which
consists of 10% of adults who make purchases based on the nearest convenience. These
individuals are more likely to seek out meal deals, and often purchase the product as a
treat.
Freshness and variety are important aspects that are valued by Subway consumers. These
individuals appreciate the made-before-your-eyes freshness of the meals. 15% of adults
are willing to look for a sandwich tailor-made for them. (Mintel, 2010) Due to the
flexibility of the menu, Subway targets consumers who value the ability to customize
their meal. Another target group identified among sandwich consumers are the “variety
seekers.” This category consists of 11% of adults who enjoy trying new flavors and
ingredients. They typically fall into a higher household income category, and are willing
to spend money to receive a quality product. (Mintel, 2010)
Media habits reflect the professional occupations of the consumers engaged. These
individuals most often read magazines such as Bloomberg BusinessWeek, and American
Way. Subway consumers are more likely to be heavy Internet users. The most visited
website is bankrate.com with an index of 143. (MRI Reporter, 2014) Further correlating
with the level of activity in the lives of these individuals is light television use (index of
104). When the individuals do watch television, sports programs are the most likely
watched.
Non-users of Subway: Products include those whose income is less than $20,000. A
non-user’s occupation is likely to be in natural resources, construction, or maintenance.
The least likely to purchase Subway products are those who are 65 years or older. African
Americans are the least likely race to purchase Subway with an index of 87.
Geographically, the least amount of Subway users resides in the West. (MRI Reporter,
2014)
Heavy media use among non-users may correlate with the lack of physical activity in
non-user’s lifestyle. Non-users have a likelihood of heavy television use, with an index of
87. They also are most likely to have the least outdoor activity, with an index of 83. (MRI
Reporter, 2014)
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According to the target group divisions in the Mintel report, 17% of adults who are
targeted by sandwich shops fall into the “bored” category. These shoppers think it is
boring to eat sandwiches regularly, and are less likely to actively seek out meal deals.
The final target group is identified as “unengaged.” This category consists of 48% of
adults who show the least amount of interest in the purchasing of sandwiches. Their
indifference seems to decrease the most regarding practical considerations, such as
convenience.
Conclusion: In general, Subway users place value and importance on their health. They
have concern over the freshness of their meals, and enjoy the product being created in
front of them. These consumers live on-the-go lifestyles, and desire a product that is
convenient and time efficient to purchase. These individuals not only want to purchase
the product with maximum convenience, but also often want to consume the product on
the go. Non-users of Subway products have differing characteristics like lower income,
and a less active lifestyle. These non-users often have attitudes of indifference or
boredom associated with purchasing sandwiches.
Competitive Evaluation
Competitive Evaluation: As a part of the fast food and quick service industry Subway
has many competitors, both indirect and direct. McDonalds and all the companies within
the YUM! Brand along with several others all round out the indirect competitors while
restaurants that utilize the made to order service like Chipotle embody the direct
competitor group. With about 41,500 locations in more than 100 countries they have an
edge due to their range throughout the world and their variety of locations that are not
just freestanding restaurants but in airports, train stations, sporting event venues and
many more places.
In recent years fast food restaurants specializing in sandwiches have increased due to
how in demand they are, this demand most likely came from the millennial generation’s
love of convenience and customization. When Subway first began their “$5 foot long”
promotion the company’s sales were high but recently competition from much smaller
restaurants has began to take away more business than anticipated and the company is in
the process of rebranding themselves. They not only have competition from other
sandwich shops, but other fast food places and other restaurants that specialize in
“creating your own” as well.
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Bar Graph Above: Shows Subways Explosion of sales in 2010 against the
company’s competition. (qsmagazine.com, 2011)
Jimmy Johns: Jimmy John’s and Subway may seem very similar from the outside, they
both have menus consisting of subs, chips and cookies, but when they are examined
closer they each have quite different things to offer. Jimmy John’s slogan, “Freaky Fast
Service,” says it all when it comes to the big difference between Subway and Jimmy
John’s (Jimmy John’s, 2015). Their other slogan is, “Subs So Fast You’ll Freak.” Jimmy
John’s not only delivers but also guarantees fast service. Although Subway may be just
as quick of a dine in option as Jimmy John’s the typical college student or someone
working within the time restraints of a 30 minute lunch break may see Jimmy John’s as a
better option due to their marketing. Subway beats JJ’s when it comes to the variety of
options available. Subway takes the create your own approach and has multiple options
for each topping while JJ’s only has three types of breads to choose from and one type of
cheese. JJ’s also coined the “unwich,” a sandwich without the bread substituted with a
lettuce wrap. Jimmy John’s is currently the number 7 fastest growing chain in the United
States (NRN, 2015). Jimmy John’s is currently beating Subway by 8% based on a survey
of favorite sandwich chains (Statista, 2015).
Chipotle: Chipotle aesthetically has the same layout as Subway and the same concept.
They are both considered to be the healthier choices of the fast food industry and quickly
Figure 3: Subways
Explosion
13
have become top competitors. Chipotle labels themselves as “food with integrity,”
meaning that a substantial amount of their menu items are organic and bought locally
(Chipotle, 2015). This may make Chipotle seem like a healthier choice, this can be
threatening due to the fact that many of Subway’s customer base is health concise.
Chipotle is also a newer company, giving it a more modern feel.
McDonald’s: According to the data in figure 5 on the next page, McDonald’s is currently
Subway’s number one competitor. Subway reached a milestone in 2014 by surpassing
McDonald’s in number of locations but McDonald’s sales remained higher (Bloomberg,
2014). Due to the fact that calories are now required to be provided next to menu items
Subway has an upper hand because customers are faced with the reality of what they are
eating. Subway has the “$5 Footlong” and meal deals but they can still not compare to
McDonald’s dollar menu. The downside to McDonald’s is the lack of customization
available, unless customers order a la carte they are given a menu with set meals already
decided for them.
YUM! Brands: Currently at number 3 on Subway’s top competitor list is YUM! Brands.
The company houses KFC, Taco Bell and Pizza Hut. All three of the restaurants
combined have over 41,000 locations (Yum, 2015). Yum is a respected brand boasting
many titles such as one of the, “100 Best Corporate Citizens.” While the various
restaurants include chicken, pizza and Mexican-style they appeal to any customers
craving. While Subway does not have as much variety within their menu, they appeal in
other ways. None of the restaurants within Yum have an option to customize the way that
Subway does. They are also not considered healthy options and the names alone will turn
away many customers, unlike Subway due to its healthy reputation.
Figure 4
Pictured Above: brand logos of some of Subway’s competitors.
(http://www.foodpoisonjournal.com/, https://www.findlay.edu/, http://www.baaghi.tv/, http://nrn.com/)
14
Picture above shows the major corporations with their percentage of market shares within
the fast food industry. (abhishekmondalamrp.blogspot.com, 2012)
Competitive Strengths and Weaknesses: Subway has built a strong name. They are
known worldwide and have the largest amount of locations out of their competitors. They
have a solid reputation for being a healthier choice, which keeps health concise customers
around. They are weak when it comes to social media and modernizing. They are losing
customers due to the fact that other healthy options are coming out and making
themselves more present. They have an advantage against restaurants that have set menus
due to the fact that set menus mean less variety; less variety means that customers are less
likely to return because they will want to switch it up. Subway provides a way for a
customer to switch it up at every visit because there are so many options.
Competitive Conclusion: Subway is one of the original restaurants that provide
customers the opportunity to create their own meal. In recent years the millennial
generation have become one of the top consumers of fast food and have become more
demanding with what they want. With the rise of many new restaurants, Subway has been
able to keep up with the competition by providing a simple product that is adaptable in
any environment. It is healthy, trendy and affordable for all price ranges.
Figure 5: Market Shares of the Major players
in the Fast Food Industry
15
Marketing Environment Evaluation
Current Market Trends: According to a 2014 consumer report by Mintel Academic,
three out of four US consumers had visited a sandwich, sub, or wrap shop in the past
month. This trend illustrates three things: the continuing popularity of sandwiches among
current consumers, the market for subs and wraps is in place to see an increase in
popularity, and that the family of sandwiches, subs, and wraps is becoming a trend in
itself among restaurant patrons.
Healthier Eating: An analysis of consumer data also on Mintel in the sandwich, subs,
and wraps market stated that over the past year customer behavior has indicated more
interest in healthier options. This preference edged out focus on price points by eight
percent in a recent consumer survey about what is most important when visiting a
restaurant/sub shop, as indicated by the green bars in figure 6 (Mintel, 2014). Customers
have also responded positively to the sandwich shop vs. fast food chain debate, seventy
four percent of which stating they believe sandwich shops to be healthier alternatives to
their greasy, fatty counterparts (Mintel, 2014). Millennials have had an impact in steering
this trend and have been cited as focusing heavily on health when food shopping. Out of
all surveyed, Seventy-seven percent of older millennials wished companies were more
transparent with the manufacturing of their products and forty seven percent were less
likely to trust large food manufacturers. Younger millennials recorded
Picture above shows Consumers behavior changes at limited service sandwich shops (Mountaineer
Media, 2015)
Figure 6
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similar numbers at seventy and thirty five percent respectively (Mintel, 2015).
This data suggests that consumers are becoming progressively more conscious about their
food consumption and as a result are steering themselves towards more authentic product.
Convenience: Pursuant to the same consumer report and survey detailed above, nine out
of ten consumers stated that when ordering their food at a sandwich, sub, or wrap shop
they ordered it to go (Mintel, 2014). This paints a portrait of a consumer with a final
destination outside of the shop, and one that is looking for an efficient method of buying
food, a quick transaction. Convenience is becoming emphasized more and more by
consumers, and restaurants that utilize the made-to-order method or limited service
approach are poised to exploit this growing need. The limited service industry, according
to Nations Restaurant News, had five of the top 10 fastest-growing restaurant brands in
the Top 100 based on system-wide sales growth (Nations Restaurant News, 2013).
According to the same article limited service restaurants continually outperform full
service dining restaurants on a yearly basis, and dominate the top of list among
restaurants in overall sales. McDonald’s and Subway rank number one and number two
respectively, with other limited service chains like Burger King and Wendy’s rounding
out the rest of the top ten (Nations Restaurant News, 2013). These increases in sales and
growth among the limited service industry indicate a change in consumer behavior.
Customers want a quicker experience and despite the still stagnant popularity in sit-down
dining, there is inevasible expansion and improvement in the limited service and made to
order industry.
17
Economy: In this year alone there was a 2.5% increase in revenue for the sub &
sandwich industry bringing their total revenue to $21.7 billion (IBIS, 2015). Subway
currently has 65.8% of the market share while their competitor Jimmy John’s only has
9.7% (IBIS, 2015). IBISWorld predicts that over the next five years the industry revenue
will grow at a rate 1.9% each year to increase revenue to $23.8 billion by the year 2020.
During this time consumer spending is expected to increase at an average annual rate of
2.7% (IBIS, 2015).The industry’s contribution to GDP is expected to grow 2.0% annually
for the ten years leading up to 2020 (IBIS, 2015). These upward trends imply that the
market environment surrounding Subway will be beneficial to product sales.
Market Insight: The fast food market is always changing; there are increasing demands
for healthier options, the recession and the appearance of fast-casual food. In recent years
the focus on the quality of food served in the fast food industry has grown. Consumers
are now more focused on how healthy a product is for them as opposed to how fast and
cheap they can get it. Fast food restaurants were not as heavily affected by the recession
due to their lower prices but they still endured some setbacks. The fast-food industries
biggest competitors at the moment are fast-casual food establishments such as Panera
Bread and Chipotle. Fast-casual restaurants give customers more options of healthier
food that is still served in a fast paced environment. Fast food chains are combating these
options by expanding their menus and making more items available that they usually
wouldn’t have on their menu.
Conclusion: Through aggressive expansion and the cornering of the “healthier
alternative” label, Subway has staked its claim to a large majority of the sandwich and
limited service food industry. The trends in current consumer behavior indicate interest in
the two biggest aspects of subways recent campaigns: health and convenience. Consumer
spending reports show a steady increase in Subway’s profits and despite the lacking
economic strength of the U.S. and a recent recession, Subway and its sandwich shop
competitors have seen an increase in sales in the past year and will continue to do so as
long their prices stay affordable and they continue with the current trends. Limited
service food chains have dominated the restaurant market and been continuously been a
crowd favorite for consumers.
SWOT Analysis
Strengths
 Inexpensive and affordable across the menu - Price points appeal to a larger
audience than more expensive counterparts.
 Convenient and efficient for all customers - Customers are served efficiently and
without any effort/commitment on their part, emphasizing convenience.
 Largest sandwich chain in the world - Subway is the largest franchise sandwich,
sub, or wraps shop globally and is universally recognized.
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 Nutritious and wholesome – Subway is known to have healthier options, which
taps into a whole new audience of people who typically avoid fast food.
Weaknesses
 Décor is uneventful and mundane – Atmosphere of restaurants is plain and
uninviting; doesn’t appeal aesthetically.
 Sandwiches have been put together poorly - Quality has been cited occasionally
as lackluster and sloppy.
 Almost zero social media presence - Yet to utilize online marketing potential and
virality of the Internet.
Strengths Analysis: Subway is widely recognized as an affordable, convenient, and
healthier alternative to other fast food chains. It has branded itself around the world as
having a healthier menu that is better suited to those not looking to indulge in the more
greasy, fatty options available and has maintained a steady level of convenient efficiency
in customer fulfillment. Subway has exceptionally low prices for their portion sizes,
enticing all types of customers and not just those looking for the healthier options.
Customers are aware of what to expect when entering a Subway, making it a reliable
establishment and a chain that customers know fondly. It is recognized globally and has
become a staple of not only the fast food industry but the sandwich industry as well, an
extremely profitable double threat that reaps dual benefits from two separate markets.
Weaknesses Analysis: Despite their traditional layout of customer-driven, made to order
sandwich production (a technique used by countless other chains like Chipotle, Qdoba,
etc.), Subway’s atmosphere is lacking in receptiveness and does not provide a very
welcoming feel. In addition, customers have complained of lackluster and sloppy quality
of product. The sandwich based restaurant market is extremely competitive, and with
countless other companies like Jimmy Johns, Jersey Mikes, and Firehouse Subs offering
sandwiches of sufficient or superior quality that circle around the same price range,
quality of product must be monitored and improved. The competition is potentially
pulling ahead in another aspect as well, as Subway has yet to legitimately invest in the
marketing capability of the internet, a mistake that will only grow larger and more
threatening. Competing companies like Mcdonald’s for example have harnessed the
massive potential of the Internet, releasing their viral video series a few years back
“Think With Your Mouth” that was a resounding success. In order to better assimilate to
the rapidly changing technological era, remain relevant, and potentially boost sales in a
serious way, Subway must eliminate this technological handicap.
Opportunities
 Emerging markets and expansion- today Subway has expanded to 37,000
locations globally, in 92 different countries, and rapidly growing.
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 Changing Customer habits and new customer groups- Subway diving into 92
different countries means the organization has to accommodate to the different
cultures and their traditional foods while keeping the healthy tag line to the brand.
 Introduction of Sub-Way “drive-thru”- when it was first introduced by companies
like McDonalds who use this as a huge convenience window for their customers,
if Subway can initiate this barrier of opportunity, this can be a huge impact on the
yearly profits.
 Home meal delivery- similar to the “drive-thu” opportunity, these two ideas
complement each other for the convenience of their customers.
 Lets get more green- Introduce better vegetarian products and increasing demand
for healthier foods.
Threats
 Threats from other fast food restaurants- Subway certainly has much competition
in the brand market of “healthy food” with the most recent boom of restaurants
like Chipotle.
 Lawsuits against subway- whether it’s a problem from the FDA about their food,
employees, face of the brand, or false marketing and advertising Subway has to
closely monitor any type of situation.
 Restructuring of marketing strategy/starting ground floor- this could be a problem
after imprinting the brands image into consumers minds for years, then suddenly
changing the brand image because of the previous marketing image failed to
promote the same positive message.
 Ability to do it yourself- Making sandwiches at home are not only effortless and
simple, but also cheaper and less time consuming to get in your car and go
somewhere for a product you can produce yourself.
Opportunities Analysis: Subway is one of the most rapid growing fast food restaurants
not only in the United States, but also the world. Subway has opened 37,000+ stores in 92
different locations globally (Job Monkey, 2015.) The brand focuses on customer
satisfaction, which is why the company spends so much money advertising their brand of
healthy eating. Subway can leverage new market expansion, new customer groups, just
by attacking a new target audience. In our eyes, one of the biggest audiences Subway can
target is Muslims. The problem with this target audience is most Muslims are not
allowed to eat Subway sandwiches because they obey the fasting of the Islamic Law or
“Halal,” which allow active Muslims to eat certain kind of foods at a certain period of the
year, typically pork. By opening Halal Subway style stores in America and worldwide,
Subway sales can skyrocket just by positioning themselves to accommodate the Muslim
population.
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To accommodate the demand of the Muslim population during Halal’s rules, Subway has
answered to remove pork meats from 200 Subway outlets in the United Kingdom with
turkey ham and turkey rashers as a substitute in 185 of those stores. By doing this, this is
an example that just by accommodating to a different culture can help the whole
company generating sales and keep Subways public relations organization happy
(DailyMail, 2014.) Subways brand has jumped into 92 different countries and also
accommodating to the cultures foods and now is tied for second with Starbucks as the
leading in sales for fast food restaurants world wide behind McDonald’s (Forbes, 2014.)
By A restaurant that offers drive-thru access and delivery has proven to attract customers
just because they know it’s easy and convenient to get their food. Subway can open up
jobs within the company just by creating a delivery system, which can create an
opportunity to increase its reach to customers. Also, by creating a drive-thru window for
all subways, the company can initiate an efficient system in order to make some fast
sales.
Threats Analysis: Subway can be threatened by a recession that can reduce the
purchasing and sales of customers. Given the recent economic downturn, sales are
susceptible to decline as with any business. In addition, a company can be hit with a
lawsuit from whether it is their food, or an event that occurs at the store, Subway needs to
have strict policies to prevent this. If one of these events happen to occur, the whole
company will have to restructure their whole marketing strategy from the ground up
which Subway has actually just experienced this past August. Their spokesperson was
involved in an extremely inappropriate scandal and cast an extremely negative light on
Subway and tarnished its reputation (usatoday, 2015.) As a result, they were required to
completely start from scratch and develop a whole new marketing strategy in order to
repair the damage caused. All companies are prone to these kinds of incidents and as a
result, PR policies must be put in place to ensure the least amount of legal/social/financial
blowback (usatoday, 2015.)
The overall social consensus and attitude surrounding the food industry in America is
growing increasingly more health-centric which may seem beneficial to Subway, but can
also be extremely dangerous. Although Subway may be one of the healthiest options
available in the fast food market, the consumer trends indicate that fast food as a whole is
becoming less and less desirable (Bloomsberg, 2014.) This, in effect, means that being
the healthiest fast food option is like being the best worst mistake, and consumers have
grown tired of making these same mistakes. Our culture is turning on obesity and fast
food restaurants because everyone is now realizing how bad it is for you. At home
sandwiches are not only affordable but also more convenient. Consumers can easily
figure out what subways ingredients are, go to the food market and get the ingredients
themselves, and make it themselves (Academic-Mintel, 2014.) Naturally, when humans
create or construct something, we get more satisfaction from it because it’s our own. This
is not only more affordable, but so convenient to not waste gas to drive to the nearest
Subway (Academic-Mintel, 2014.)
Research Questions, Hypotheses, & Rationale
21
RESEARCH QUESTION 1:
Would further viral marketing and utilization of Internet based tactics result in an
increase in consumer satisfaction and brand awareness?
The reach of the Internet extends globally to other cultures around the world, and with an
increasingly younger audience on social media Subway can extend to these two potential
target audiences merely by releasing viral ads through the web and promoting them
through their social media accounts. Recently, the user bases of Facebook and Twitter
have exploded from fifty eight million to one billion and one million to over five hundred
million respectively, This incredible growth signals extreme potential in online
marketing, and with their already staggering twenty one million followers on Facebook
and over two million followers on Twitter, Subway can exploit this massive potential
market that has been previously underutilized by the company.
RESEARCH QUESTION 2:
Would expanding the base menu that every franchise offers would increase sales by
offering more options in deals and foods?
Expanding the menu to an all audiences to access is a big factor for increasing sales
within every Subway nation/worldwide. The way to do this is to accommodate a wider
variety of ingredients Subway offers at only a few different stores. At every Subway
restaurants 37, 000 locations, they offer the base breads of 9-Grain Wheat, 9-Grain
Honey Oat and a few more. But they’re other varieties of breads that are offered only
select locations like Hearty Italian, Jalapeno Cheese, and Parmesan Oregano. Subway
also has a base cheese of American and Monterey Cheddar, but only a select number of
stores offer Fresh Mozzarella, Pepperjack and Swiss. Going into the veggie aspect, only a
couple Subway restaurants have Avocado, sweet peppers, and Guacamole. If Subway can
open up these different ingredients to all stores, the company can boost sales
traumatically (Subway, 2015.)
RESEARCH QUESTION 3:
Does Subway's involvement with the ‘Partnership for a Healthier America’ and
spokesperson Michelle Obama create a healthier image for Subway?
Subway has re-designed their menu options for kids by creating the meals for nutrition
foods and affordable profiles that would allow them to meat nutrition criteria. The
partnership has created a training video for employees to encourage customers to get
apples instead of chips as their sides. Healthier America has created a window into a
healthier lifestyle through their sponsorship with PHA. They used media outlets to
convey the “pile on the veggies” message, including a TV commercial of the Muppets
and several social media platforms. Subway in addition has created a messaging option
on their website to facilitate conversation and the connecting of their customers, which
22
they hope will in turn promote discussions concerning healthier eating and vegetable
consumption. (Annual Progress Report, 2015.)
Research 1: Qualitative Study
Picture Above: Subways certified Facebook
website posts corny jokes to connect with
customers, this was posted on June 17, 2015
Figure 7: Found on
Subways certified Facebook
website from June 17, 2015
23
Focus Group Study
Overview of the Study:
The qualitative research method Mountaineer Media chose was to conduct two focus
groups. Our analysts focused our discussion around our research question, “Does
Subway's involvement with the ‘Partnership for a Healthier America’ with spokesperson
Michelle Obama create a healthier image for Subway?”
Objectives of the Study:
The primary objective of the focus groups was to determine the awareness of the
“Partnership for a Healthier America” campaign and Subway’s association with the
campaign. Our team also wanted to see if there is any correlation between Subway
joining the campaign and if it was encouraging customers to make healthier choices.
Mountaineer Media has the purpose of gauging the level of visibility of advertisements,
and the familiarity with slogans associated with the campaign. The moderators discussed
what the campaign was based on, and how Subway was a part of the partnership’s goals.
Our team discussed what options Subway could utilize to promote itself as a healthier fast
food restaurant.
24
Focus Group 1
Project Details:
- 5 random participants
- Date and Time: Tuesday, November 16, 2015 from 7:30 - 8:30 PM
- Location: West Virginia University, Mountainlair Student Union
Participant Breakdown:
Participant Gender Age
1 Female 21
2 Female 21
3 Female 22
4 Male 21
5 Male 21
Analysis I:
Key Points of Focus Group Discussion
Restaurant Experience
● Two participants reported typically going to Subway once a week
● One participant reported they rarely go to Subway
● All participants varied in menu selection, but chose healthy options (i.e wheat
bread, flatbread, extra veggies, salad)
Subway and the “Partnership of Healthier America”
● Three participants reported they had never heard of Subway and it’s association
with the “Partnership for a Healthier America”
● Two participants said they were unfamiliar with the details of the “Partnership of
America” but had heard of the organization before
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● All participants agreed that Subway’s partnership with PHA was in line with
Subway’s image
● Michelle Obama sparked participants understanding of the partnership and its
goals
● Participants appeared to relate more to the association with the spokesperson as
opposed to the campaign initiatives or slogans
Subway / Image of Health
● All participants considered Subway to be a healthy option
● All participants reported Subway commercials as overall healthy
The moderator began the focus group discussion with introduction question to get the
conversation to begin. Both focus groups began with the moderator asking what
participants selected on the Subway menu - all selections varied greatly. The majority
said they chose wheat bread or flatbread with their sandwich, while two mentioned that
they only ordered salads. Although, this was posed as an icebreaker question this
information is relevant. The majority of participants made healthy choices with their
meals, such as wheat bread and vegetables. This is a possible correlation with the
“Partnership for a Healthier America” that the moderators address later in the discussion.
When asked if participants were aware of “The Partnership for a Healthier America,” two
heard of the name, but were not familiar with the details of the partnership. Those two
participants were only aware of the campaign because they had seen an advertisement for
Subway containing the “Healthier America” logo quickly at the end of the advertisement.
The moderator then mentioned Michelle Obama, and explained her position as
spokesperson behind the campaign associated with Subway. This new piece of
information sparked several participants’ familiarity with the partnership. Although, they
did not know the details of the campaign the mention of Michelle Obama caused many to
understand the nature of the campaign. This could indicate that the use of influential
representatives would further propel the campaign’s familiarity to the average consumer.
As the discussion continued the majority of participants said they believed Subway to
become progressively healthier over time. This participants made mention of this without
prior knowledge of when the partnership began. The partnership began when Michelle
Obama announced her involvement in January of 2014, and is purposed to continue
throughout the next three years. This leads our team to believe that the image of Subway
has become increasingly healthier in correlation with “The Partnership for a Healthier
America.”
After analyzing the information gained from Mountaineer Media’s focus groups our team
can conclude that participants were unable to recall specific advertisements associated
with the “Partnership for a Healthier America” initiative. However, Subway’s image as a
healthy fast food chain appeared to become more apparent in recent years. The effects of
the campaign are being felt, but the visibility of the initiative needs to become accessible
26
to consumers through all forms of media. If consumers are able were able to recall
specific advertisements, slogans, and efforts of the partnership the effects would most
likely be felt more strongly leading to a higher campaign success rate.
Focus Group 1 Reflection:
Prior to conducting the focus group discussion Mountaineer Media conducted secondary
research to gain knowledge about our client, Subway in order to develop a marketing
strategy for the restaurant. Throughout the creation of the Situational Analysis our team
was able to create two research questions as the basis of investigating the best marketing
strategy methods for our client. The research question associated with the focus groups
was as follows; Does Subway's involvement with the “Partnership for a Healthier
America” with spokesperson Michelle Obama create a healthier image for Subway? My
team proposed two primary objectives: To evaluate the level of awareness that consumers
have regarding Subway’s link to a “Partnership for a Healthier America.” and to
understand how Subway can further portray the image as a healthy option among its
competition. Our team of analysts then formulated a moderator’s guide with several
questions investigating our objectives to aid in the focus group discussions.
When first arriving at the location of the focus group all participants were greeted as
everyone took a seat at a table with the moderator at the head. Once everyone was settled
I was relieved to have the moderator's guide to help give structure to the conversation. I
began with the introduction explaining the nature of the study without blatantly stating
the research question in order to avoid any priming or bias within the discussion. The
participants were a bit hesitant to speak out initially, but the ice breaker questions were
useful in getting the conversation going. I concluded the icebreaker questions by asking
participants what they typically ordered at Subway. This helped me to naturally progress
into the discussion regarding Subway.
The participants of the focus group initially responded to my questions with short
minimal answers. This was my first time moderating a focus group, and I found it
challenging to encourage the participants to engage in back and forth discussion. This
may have been because I was a bit nervous at first, and was too rigid in the way of asking
questions. I was glad to have the moderator's guide to refer to, but at times I would catch
myself directly reading from it. In the future I would like to avoid this, and focus more on
having a conversational tone with the participants. This could potentially encourage them
to open up more, and begin free flowing conversation more quickly.
About half way through the focus group discussion the participants began to engage more
with me, and one another. I sensed a shift to a more natural state when we began
discussing questions about their personal experiences with Subway. It was apparent that
they were more willing to elaborate on questions they felt they could relate to, such as
“Have you ever experienced a Subway employee encouraging you to “pile on the
veggies?” Compared to questions regarding the “Partnership for a Healthier America” of
which most were unfamiliar with.
In hindsight I would have liked to address the group initially in a more conversational
tone myself to encourage that type of communication. I believe I will be able to achieve
this in the future, as this was my first experience as a moderator. I found that it was easier
27
to get the participants to open up when asking questions that involved personal
experience examples. Beginning with questions that participants understand, and can
relate to would help to get the conversation going more naturally which ultimately
secured more valuable information for the use of study.
Focus Group 2
Project Details:
- 5 random participants
- Date and Time: Tuesday, November 16, 2015 from 8:00 - 9:00 PM
- Location: West Virginia University, Mountainlair Student Union
Participant Breakdown
Participant Gender Age
1 Female 19
2 Female 19
3 Female 19
4 Female 22
5 Female 22
Our team recruited participants via personal connections to those who fell within our
target age range, all participants were students at West Virginia University. We discussed
the given topics in the Mountain lair with participants seated at table with the moderator
at the head. All information was collected and analyzed through group discussion.
Analysis II:
The moderator began the focus group discussion with introductory question to get the
conversation to begin. Both focus groups began with the moderator asking what
participants selected on the Subway menu - all selections varied greatly. The majority
said they chose wheat bread or flatbread with their sandwich, while two mentioned that
they only ordered salads. Although, this was posed as an icebreaker question this
information is relevant. The majority of participants made healthy choices with their
meals, such as wheat bread and vegetables. This is a possible correlation with the
“Partnership for a Healthier America” that the moderators address later in the discussion.
When asked if participants were aware of “The Partnership for a Healthier America,” two
heard of the name, but were not familiar with the details of the partnership. Those two
participants were only aware of the campaign because they had seen an advertisement for
Subway containing the “Healthier America” logo quickly at the end of the advertisement.
The moderator then mentioned Michelle Obama, and explained her position as
spokesperson behind the campaign associated with Subway. This new piece of
28
information sparked several participants’ familiarity with the partnership. Although, they
did not know the details of the campaign the mention of Michelle Obama caused many to
understand the nature of the campaign. This could indicate that the use of influential
representatives would further propel the campaign’s familiarity to the average consumer.
As the discussion continued the majority of participants said they believed Subway to
become progressively healthier over time (this participant made mention of this without
prior knowledge of when the partnership began). The partnership began when Michelle
Obama announced her involvement in January of 2014, and is purposed to continue
throughout the next three years. This leads our team to believe that the image of Subway
has become increasingly healthier in correlation with the “The Partnership for a Healthier
America.”
Focus Group 2 Reflection:
After interviewing the focus group the moderator was left with some things to think about.
The group all agreed that Subway was a healthier alternative to other fast food companies
but they also all agreed that there were things they could do to make themselves healthier.
Only one of the five participants had heard of The Partnership for a Healthier America and
surprisingly it was from a Subway commercial. No one in the focus group heard the slogan
“pile on the veggies” which Subway is currently supposed to be using in conjunction with
the campaign. The group did agree though that Subway being a part of the campaign was
a good idea.
Before the whole group agreed that Subway was a healthy alternative, it was interesting
to hear the responses of the participants except for one. They ordered a sandwich on
wheat bread and the other said that she got a salad. They all also chose lite dressings or
oil and vinegar. When the moderator asked them what Subway could change to become
healthier one of the participants immediately said that they needed to get rid of the
Philadelphia cheesesteak and the meatball sub. She stated that both of those sandwiches
are extremely unhealthy and are not helping their image. Another stated that they should
get rid of their cookies because customers might order a healthy sandwich, such as the
veggie delight, but then get a cookie, which would diminish the healthiness of the
sandwich. The information provided by the participants helped understand what direction
of a image Subway should take.
It was found that only one of the five participants actually heard of The Partnership for a
Healthier America. The one who had seen it said “I was after a Subway commercial they
put it at the bottom of the screen.” She said that even though she had seen it she didn’t
know what it was. When the focus group was explained to the group about The
Partnership for a better America, all of the participants thought it was a good idea for
Subway to join the movement and also Subway should advertise it more. The Focus
group participants suggested Subway having a promotional day where 10% of profits
went to the campaign or asking for donations after someone orders a sandwich. If
Subway does agree to this idea, this would be a good way to give to a great cause.
The moderator asked if they had heard the slogan “pile on the veggies” their faces were all
very blank and confused. The focus group was then explained what the slogan meant,
29
coined by Subway, which they were supposed to use to encourage children and parents to
add more vegetables to their sandwiches. One participant made the point that “it depends
on the person, if the person likes vegetables they’re going to put more on their sandwich,
if they don’t like vegetables they won’t put any on their sandwich.” Others had
recommendations of how to encourage people to eat more vegetables such as putting
window clings on the sneeze guards that say pile on the veggies or offering some sort of
discount or reward for putting four or more vegetables on your sandwich.
Once the focus group was concluded, the moderator analyzed the key points of the
participant’s opinions of Subway, most of the comments were believed people perceived
Subway as a healthy alternative to other fast food. Weak points of Subways campaigning
is this sample of individuals chosen to do the focus group didn’t know about the
partnership, but the participants did recognized Michelle Obama as being a spokesperson
for Subway who was also the main spokes person for the partnership. The participants
offered some great suggestions on how to better Subway campaigns more effective. The
focus group said they would take advantage of a discount if it meant putting a certain
number of vegetables on their sandwich. Mountaineer Media thought this focus group
helped answer our research question and gave us the results that we wanted.
30
Research 2: Quantitative Study- Survey
Overview of the Study:
The quantitative research method our team chose was an 18-question, 24 hour survey
through Qualtrics Survey Software that our analysts tailored and contoured around the
vision of our first research question: “Would further viral marketing and utilization of
internet based tactics result in an increase in consumer satisfaction and brand
awareness?” Through this process, Mountaineer Media hoped to acquire legitimate
quantitative data that would support said question and provide insight into valuable
online advertising potential for Subway.
Objectives of the Study:
As a team, Mountaineer Media wanted to gauge the connection between social media and
the consumer as a whole. In the first half of our analysis, we attempted to form a grasp on
the behavior of our consumers. How often do you eat fast food? Do you use coupons
upon your visit? These types of questions can reveal patterns in our target audience and
31
guide us in an accurate, constructive direction towards understanding their relevant
lifestyle choices. In the second half of our analysis, we aimed to expand on the behavioral
aspect of our target consumers by analyzing how the fast-food promotions they see can
affect their actions. Has an advertisement ever changed your mind about a company? Are
you more inclined to buy a company’s product if advertised on social media? These
questions were formulated to learn social media and online advertising’s effect on the
behaviors and choices of the everyday consumer and, specifically, the fast food
consumer. Our analysts worked to find trends in the data that suggest certain pathways
into the consumers mind and aid us in developing a strategy as to how Subway can utilize
this direct connection in future online marketing.
Project Details:
- Data Collection Method: Survey
- Platform: Qualtrics Survey Software
- Open Date: November 17, 2015
- Close Date: November 18, 2015
- Respondents: 106
Demographic Data:
- Age Range: 18+ (Target audience was 18-34, majority of respondents fell within
18-22)
- Most Common Age Selection of Respondent: 18-22
- Gender of Respondents: Male - 36 Female – 70
All results considered our analysts were able to personify our average respondent as a
Caucasian female aged between 18-22 years old. Our demographic data in its entirety is
illustrated in the following tables, depicting the differing levels of respondents for each
answer in each question.
Ethnicity of Respondents
Figure 8
# Answer Response %
1 Caucasian/White 84 79%
2 Black/African-American 5 5%
3 Hispanic/Latino 10 9%
4 Asian/Pacific Islander 2 2%
5 Other 3 3%
6 Prefernot to answer 2 2%
Total 106 100%
(Most common: Caucasian/White. Least common: Asian/Pacific Islander)
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Age of Respondents
Figure 9
Answer Response %
1 18-22 61 58%
2 23-25 27 25%
3 26 and above 18 17%
Total 106 100%
(Most common age bracket: 18-22. Least common: 26 and above. Target Audience: 18-
34)
Gender of Respondents
Figure 10
# Answer Response %
1 Male 36 34%
2 Female 70 66%
Total 106 100%
(Majority Gender of Respondents: Female)
The target participants consisted of primarily young adults ages 18-22, but our team
endeavored to create a survey that would encompass nearly all ages over 18 years old to
ensure an absence of bias and a more versatile opinion. Our method of choosing a sample
from our given population was through a convenience sample on the West Virginia
University campus and, although this resulted in a stronger showing of younger subjects,
an effort was made to ensure participants further shared the survey to their friends and
family to foster a degree of randomization and include respondents of all relevant age
brackets. Given that Subway’s target audience is composed of adults ages 18-34, our
sample was chosen in an effort to parallel the mindset of this demographic and obtain an
opinion reflective of how they think.
Survey Data Analysis
Within our published survey, Mountaineer Media was able to identify two major aspects
of our data that needed further analyzing: The attitudes, behavior, and opinion (etc.) of
our target consumer, and the effects social media and advertising have on them.
Providing our research question, we delved deeper into these two aspects of our
experiment to better formulate how Subway can employ the potential findings in the
advertising process in order to reach our goal: increased brand awareness and
satisfaction.
33
Within the following sections are several charts that were designed to properly illustrate
the quantitative data amassed through our survey in a way that is conducive to our
reader’s viewing pleasure. Beneath is a legend created to aid in understanding these
charts and potentially answer any questions that may arise.
Chart Legend:
- Categories are color coordinated
- Values on left: # of respondents
- Values on right: % of total respondents
- Titles are paraphrased versions of actual survey questions
Consumer Behavior and Opinion
In this section, our team of analysts aimed to identify, understand, and interpret the
attitudes, habits, and lifestyles of the respondents to our survey. In an attempt to paint a
better picture of the fast-food consumer we asked them a variety of questions regarding
the fast food industry and their choices within said market. By cataloguing this data, our
team formulated a comprehensive understanding of Subway’s target audience and created
a foundation of supplemental consumer data on which a future campaign can be
developed.
34
Figure 11
When asked how often they eat fast food, the majority of consumers at 35% (37
respondents) said they typically eat it once a week. There were 18% (19 respondents)
who said twice a week, 12% (13 respondents) who ate three times a week, 4% (4
respondents) at three times or more, and 31% (33 respondents) who said they do not eat
fast food at all on a weekly basis. Our results were not surprising as there seems to be an
increasingly popular health kick gaining momentum in the U.S., which in turn will lead
to a decrease in fast food consumption. Nonetheless, our team was still able to identify an
overwhelming majority of our audience that still eats fast food at least once a week or
more. Only 31% of respondents said they did not eat fast food at all, leaving a hefty
portion of our sample (69%) as fast-food consumers. This sample, given its similarity in
age range, could be indicative of a stubbornly loyal consumer base for Subway and
provide reassurance that there are in fact customers who may take advantage of online
promotions, if given the opportunity.
33, 31%
37, 35%
19, 18%
13, 12%
4, 4%
How many time a week do you eat fast food?
0
Once a week
Twice a week
Three times a week
More than three times a week
(Above: Breakdown of fast food eating habits among respondents.)
35
Figure 12
Those who do eat fast food, when asked if they use coupons at fast food restaurants, 55%
(58 respondents) said they did in fact take advantage of these promotions while 45% (48
respondents) did not. Although it was not the larger majority our team expected these
results still indicate that consumers, if eating fast food, would most likely take advantage
of online promotions if they presented themselves. This serves as another reason for
Subway to increase its promotional activity and illustrates a glaring need for their
increased presence on not only social media but potentially on food service websites like
Grubhub, Eatstreet, and Orderup where this form of advertising is an everyday custom.
58, 55%
48, 45%
Do you use coupons when buying
fast food?
Yes
No
(Above: division of respondents who use fast food coupons.)
36
The
last question our team chose to focus on in this section was one surrounding the general
social media preference of our survey subjects. Our aim was to simply poll our audience
as to what their favorite social media platform was and from there, use this data as a
launching point towards creating a strategy based off what online channel Subway’s
potential internet marketing could be most successful on. After gathering the responses,
according to figure 13, Facebook seems to be highly favored with 93 respondents and
32% of our total audience. Instagram and Twitter came in second and third, with 26%
and 24% respectively, while the remaining accounted for only a combined 18%. Given
the results, the clear choices for an increased advertising presence would be Facebook,
Twitter, and Instagram in order from most important to least (by a relatively slim
margin). The monthly active users on each of these platforms rank in the hundreds of
millions, and this kind of exposure is a marketing goldmine with the potential to reach an
enormous audience. Subway has already established a large following based off of Jared
Fogle’s weight loss campaign and constant TV advertising, but in order to remain
relevant, shed the negative impact of his brand-destroying scandal, and assimilate to the
rapidly evolving technologic culture they must adopt new marketing policies and form a
structured understanding of the viral direction marketing is heading.
After compiling and analyzing data relevant to our respondents’ fast-food eating habits,
our team shifted focus to the social media aspect of our research to better understand
their browsing activity and the advertisements they see while online. By gathering this
data, our analysts were able to find supplementary information geared towards
developing a strategy and solution to and for our research question, and take the next
93, 32%
72, 24%
78, 26%
7, 2% 38, 13%
8, 3%
Which social media platforms do
you use?
Facebook
Twitter
Instagram
Google Plus
LinkedIn
Other
Figure 13
(Above: differing social media platforms used by respondents. Most popular:
Facebook. Least popular: Google plus.)
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step in identifying the specific needs Subway must address in their digital marketing
department.
Effects of Social Media/Advertising on Consumer Behavior
The supplementary objective our team had in mind when publishing this survey was, after
gaining a full understanding of consumer behavior, to study the effect social media and
advertising has on it. We wanted to further understand how the weight of a company’s
advertising campaign on a consumer’s opinion, and the importance they place on these
advertisements when making their purchase decisions. Mountaineer Media asked a series
of questions in an attempt to gauge how certain advertisements on certain platforms can
affect the consumer, where they see these advertisements, and the capability of these
advertisements to persuade consumer opinion.
Figure 14
(Above: Time spent on social media by survey respondents. Most common answer: 1-2
hours. Least common answer: 0 hours. )
As displayed in figure 14, when asked how often they see general advertisements on
social media, the respondent’s answers were overwhelmingly indicative of frequent
5, 5%
61, 58%
29, 27%
11,
10%
Hours a Day Spent on Social Media
by Consumers
0 Hours
1-2 Hours
3-4 Hours
5 or More Hours
38
exposure. Of the 106 who responded, 40% chose “Quite Often”, 33% (35 people) chose
“Very Often”, and only a paltry 2% (2 people) chose “Never”. This clearly illustrates the
ability of companies to directly reach consumers through social media and, coupled with
the potency of users on each platform, can only serve as a further indicator of marketing
potential. With this in mind, fast-food companies and virtually any branch of business
could utilize this to their advantage as a cost effective method of consumer targeting. In a
society that is becoming increasingly technologically centric, this data also serves as an
illustration of future advertising practices and the possibility to get a foot in the door of a
strategy that will potentially become much more commonplace for many other companies
in the future. Subway, being a company that is infantile in the progress of its social media
accounts and online promotional activity, is poised to directly benefit from this sort of
change and can strike gold in an opportunity to capture a market that can be directly
accessed, even in the privacy of
their own home.
7, 7%
44, 41%
38, 36%
14, 13%
3, 3%
How OftenAre The Ads You See
Online For Fast Food?
Never
Rarely
Sometimes
Quite Often
Very Often
Figure 15
39
A surprising realization our team came to after administering our survey was the
shocking lack of fast-food advertising and/or promotions on the Internet. Not even just on
social media, but on the internet entirely there seems to be an absence of food-related
marketing in proportion to other types. Within the fast-food advertising world, there are
several companies who are actively engaging with consumers through social media and
frequently promoting exclusive deals, promotions, and coupons. Yet despite this
ambition, it seemingly has had no effect on consumers and hasn’t made a strong enough
impression. Our team figured that given the high potency of the online advertising
market, it would be easy for an industry or company to be obscured by several others
who are far more active and place more importance in the online market. That being said,
the competitive nature of the market will only continue to grow as it becomes more
lucrative, and assimilation to changing standards and practices is mandatory if the goal is
maintaining and increasing brand awareness/satisfaction.
Figure 16
44, 42%
62, 58%
Does Online Marketing Increase
Your Interest in a Product?
Yes
No
(Above: Division of respondents who do or do not become more interested in
a product after an online campaign.)
(Above: Respondents exposure to fast food advertising.)
40
When consumers were asked if online marketing/social media campaigns increased their
likelihood to purchase a product the majority, at 58% (62 respondents), reported that it
did not increase interest in the product while 42% (44 respondents) did report an increase.
It came as a surprise to our team given that the objective of advertising at its core is to
inform and persuade an audience into purchasing a product. And to add further
confusion, these results are applicable not only to fast food advertising but advertising of
all types given that our analysts did not specify what type of advertising within the
question. Although this may be discouraging data for companies to see, in actuality, it
can be identified as a promising opportunity. Our team believes that despite this negative
user response to product interest, consumer opinion is constantly changing and if a
company is able to attract the hearts of customers, maybe their stomachs will follow.
Figure 17
(Above: Respondents who believe/don’t believe online activity increases a company’s
likeability within their target market.)
The majority of consumers, 68% (72 respondents) to be exact, felt that an online
promotional campaign would boost a company’s likability. This data confused our team
significantly given that earlier in the survey, our subjects stated that online campaigns do
not increase the likeability of a company’s product, yet now they state that these
campaigns do in fact increase the likeability of the company. In essence, our target
audience is stating that although it may not make them want to buy the product, if they
like the advertisement, it may make them like the company more. Confusions with our
sample aside, these results are a reminder of the impact of online advertising and how its
role in a consumer’s life can affect their attitude. A company can sway a consumer’s
perception of their organization, and that is a foot in the door in the process of capturing
72, 68%
34, 32%
Does An Increased Online
Presence Increase Company
Likeability?
Yes
No
41
their interest in a product. Although the sample indicated no change in product interest,
the positive effect advertising can have on a company’s likeability shows great promise.
Figure 18
(Above: Respondents who believe/don’t believe online activity helps companies reach
consumers.)
Consumers continued to elaborated on their feelings towards an increased online
presence, stating that not only do these tactics increase a the likeability of the company
but that they were also successful in increasing the company’s reach. 86%, in fact (91
respondents), answered this question positively. We at Mountaineer Media studied this
contradiction found in the past three questions and felt that the reason respondents
previously indicated disinterest in a product may be because consumers have already
chosen their preference based on in-person dining experience, and cannot fully evaluate
the product based off of a promotional campaign. A fast food company can capture the
minds and hearts of an audience with a well crafted and targeted advertising campaign,
but to reconcile skepticism about their product would be difficult given the high
variability of food critique, and seemingly consumers only trust themselves when it
comes to an experience as intimate as restaurant dining. The modern consumer is
complex, smart, opinionated, and makes informed decisions about food preference. That
is why as a team, we aimed to develop a strategy that somehow creates a level of trust
between the consumer and the company about the company’s product, an extremely hard
thing to do only through an advertisement. Our analysts came up with the idea to create
online and/or social media testimonials from legitimate customers in order to bridge this
gap and foster a sense of trust. A series of brief, candid interviews with legitimate real
life Subway customers that are shared on Subway’s social media account and, if
approved by the interviewee, include tags of the people involved. By tagging the
91, 86%
15,
14%
Does an Increased Online
Presence Help Companies Reach
Consumers?
Yes
No
42
customers, the video would then appear on their timelines and the news feeds of their
friends in an effort to increase exposure and facilitate virality. This could, in effect,
persuade the doubtful respondents, further increase consumer satisfaction, and hopefully
spark interest in Subway’s product given this potential newfound trust.
Above: Consumer experience on whether an advertisement has changed their opinion in
the past.)
As a whole, our team agreed this was the single most important question in our survey.
By asking this, our analysts could definitively gauge whether advertising can legitimately
affect consumer opinion, and in effect, if the future online advertising strategies of
Subway could legitimately increase brand awareness and satisfaction. 63% of consumers
(67 respondents) stated that an advertising campaign in the past has in fact changed
his/her opinion about a company, a majority that suitably legitimizes advertisings
impressionability on the public. From the beginning, our team theorized advertising’s
effective scope, and these results again demonstrate the incredible impact advertising can
still have on the public. Given this data, an effort needs to be made by Subway to harness
as this potential as quickly and as effectively as they can. The online market is a prime
setting for a viral advertisement, and the daily inclusion of advertising in consumer’s
lives serves as a reminder of its vast capability.
67, 63%
39, 37%
Has an Advertisement Ever Changed
Your Perceptionof or Made You Like
A Company?
Yes
No
Figure 19
43
Conclusion:
Our team speculated that an increased online presence would in fact maximize consumer
satisfaction and brand awareness, and that the broad scope of the internet signaled
massive potential. Our hope was that within the data we’d find patterns in the behavior
and attitudes of our target audience that would then in turn outline the structure of
potential online advertisements in Subway’s future. After analyzing the results from our
survey, the findings were decisively in favor of our theory. Consumers stated online
advertising increased a company’s likeability and reach, and also revealed that they
remain vulnerable to the effects of advertising. With this data, our team concluded that
further viral marketing and internet based tactics do increase a consumer satisfaction and
brand awareness.
44
Overall Findings and Suggestions
45
Overall Findings and Suggestions:
Over the course of Mountaineer Media’s primary and secondary research the team has
come up with several different conclusions regarding Subway’s current status within the
fast food industry. Through the extensive quantitative and qualitative research team
Mountaineer Media did for the Subway franchise, the team has discovered new findings
for future campaign efforts through survey and focus group studies. By utilizing these
research methods on not only West Virginia University college students but also
members of older age groups, our team was able to analyze the level of efficiency
Subway is currently using in its entirety to promote the company via social media. Within
the research findings, our team was also able to determine the level of brand awareness
Subway is exhibiting on social media and how well the company is marketing its product.
In addition to Subway’s social media output, our team was able to identify a specific
demographic group and the habits of geographical areas where consumers are taking the
most advantage of promotions.
After formulating appropriate survey questions and publishing the survey to the public,
our team was able to analyze responses and get a better understanding of where Subway
stood on the social media platform. After analyzing the findings, Mountaineer Media had
a detailed analysis of each question and was able to determine and summarize how much
not only Subway marketing but online marketing in general is actually reaching
consumers via social media and in specific, the 106 participants. Essentially, our team
concluded that Subway does not have enough social media presence, with only 19 out of
106 participants responding that they have taken advantage of online Subway
promotions. Mountaineer Media also concluded that Subway is not targeting enough
demographics with 84 percent of respondents being Caucasian. The analysis of the online
survey suggested that utilization of social media/online marketing tactics would help a
fast food company like Subway and open the door for new advertising potential. Lastly,
the analysis also suggested that advertising campaigns have changed consumer’s opinions
or made them like a company more after seeing an online advertising campaign.
Mountaineer Media is suggesting that Subway increases their social media presence in
order to enhance brand awareness, provide more advertising outlets, and to reach
demographic groups that are not being exposed to Subway online.
Our team’s second form of research, which was in depth focus groups, gave Mountaineer
Media a more clear understanding of the effects the “Partnership for a Healthier
America” has had on Subway’s consumers. In essence, the majority of participants
weren’t able to recall the partnership. However, the participants who were aware of it did
believe Subway has become healthier since being a part of the campaign. They also
mentioned that they have heard more of Subway ever since Michelle Obama was named
the spokesperson of the campaign. After analyzing the focus group data, our team was
able to determine that the campaign was in fact effective but needs to be more visible to
the public eye and have more of a partnership presence. One tactic our team suggests to
the client would be to implement more advertisements on social media of the campaign
instead of the normal healthy ads. An example of this would be to do away with
Subway’s athletic celebrity ads and incorporate spokesperson of the campaign, Michelle
Obama. Mountaineer Media factored in the results of the focus group and suggests
Subway, as our client, needs to increase the visibility of the campaign for a stronger
46
recall and consumers would in turn firmly remember Subway as the healthiest fast food
chain restaurant.
In essence, Mountaineer Media found strong implication tactics for our client after
implementing the research methods in our situation analysis. After collecting consumer
feed back and insight from the survey, Mountaineer Media is suggesting that Subway
increase their social media presence and that they incorporate stronger advertising
platforms online and on all forms of social media specifically. With an increase from
both of these factors, our team believes Subway could potentially boost brand awareness,
brand likeability, and consumer satisfaction. The analysis of the focus group led
Mountaineer Media to suggest that our client reach out more to consumers about the
“Partnership for a Healthier America” campaign. Although the focus groups participants
were aware of Subway’s healthy reputation, many were unaware of the campaign and its
desired effect. Our team believes incorporating more of the campaign would enhance the
healthy reputation of our client, encourage more consumers to chose a healthy meal, and
most importantly, support Subway’s mission.
47
References
Berfield, S., Patton, L., & Chaussee, J. (2015). JARED ISN’T SUBWAY’S ONLY
PROBLEM. Business Week, (4434), 38-45. (competition with jersey mikes, jimmy
johns, etc.)
Oches, S. (2011, August 1). The 2011 QSR 50. Retrieved October 14, 2015,
from https://www.qsrmagazine.com/reports/2011-qsr-50
Subway. (n.d.). Retrieved October 8, 2015, from
http://www.consumeraffairs.com/food/subway.html
Brooks, R. (2013, June 6). McDonalds Big Mac Campaign Appeals To The Internet
Generation [Video] - PSFK. Retrieved October 8, 2015. (competition in internet
marketing)
Menu - All Sandwiches | Subway.com. (n.d.). Retrieved October 8, 2015. (menu)
Cebrzynski, G. (1998). Subway unwraps new products, steps up healthful campaign.
Nation's Restaurant News, 32(35), 14. (speaking on health)
Subway Restaurants Healthy food for health-related environments. (2013). Caribbean
Business, 41(20), B28-B29. (hospital endorsement)
Monkey, J. (n.d.). Subway Franchise Opportunities. Retrieved October 13, 2015, from
http://www.jobmonkey.com/franchise/subway/
Fajardo, K. (2014, October 1). LSR: Sandwiches, Subs and Wraps Concepts. Retrieved
October 13, 2015, from http://academic.mintel.com/
Whitehouse, K. (2015, August 28). Franchisee: Subway execs knew about Jared Fogle's
interest in children. Retrieved October 14, 2015, from
http://www.usatoday.com/story/money/2015/08/28/subway-executives-knew-jared-fogel-
pedophile-children-former-franchisee/71297640/
Patton, L. (2014, September 14). Fast-Food Chains' Growth in U.S. May Have Peaked.
Retrieved October 14, 2015, from http://www.bloomberg.com/bw/articles/2014-09-
04/fast-food-chains-growth-in-u-dot-s-dot-may-have-peaked
How The Fast Casual Segment Is Gaining Market Share In The Restaurant Industry.
(n.d.). Retrieved October 14, 2015, from
http://www.forbes.com/sites/greatspeculations/2014/06/23/how-the-fast-casual-segment-
is-gaining-market-share-in-the-restaurant-industry/
Poulter, S. (2014, April 30). Subway removes ham and bacon from nearly 200 stores and
offers halal meat only after 'strong demand' from Muslims. Retrieved October 14, 2015,
48
from http://www.dailymail.co.uk/news/article-2616576/Subway-removes-ham-pork-
nearly-200-stores-strong-demand-Muslims-eat-Halal-meat.htmlhttp
Peterson, H. (2015, July 7). FBI raids home of 'Subway diet' spokesman Jared Fogle.
Retrieved October 14, 2015, from http://www.businessinsider.com/fbi-raids-home-of-
subway-diet-spokesman-jared-fogle-2015-7
Sub Sandwiches - Breakfast, Sandwiches, Salads & More | SUBWAY®. (n.d.). Retrieved
October 13, 2015.
Customer preference for multifunction production. (2012, December 12).
Retrieved November 18, 2015,
from http://abhishekmondalamrp.blogspot.com/2012/12/research-project-on-marketing-
mix-of.html
Thompson, K. (2014, January 23). Michelle Obama touts Subway’s kids menu. Retrieved
October 14, 2015, from http://www.washingtonpost.com/blogs/she-the-
people/wp/2014/01/23/michelle-obama-touts-subways-kids-menu/
Warner, M. (2011, April 18). At Subway, Customers Really Aren't Eating as "Fresh" As
They Think. Retrieved October 14, 2015, from http://www.cbsnews.com/news/at-
subway-customers-really-arent-eating-as-fresh-as-they-think/
The White House, Office of the First Lady. (2014) First Lady Michelle Obama
Announces Commitment by Subway Restaurants to Promote Healthier Choices to Kids.
Retrieved from https://www.whitehouse.gov/the-press-office/2014/01/23/first-lady-
michelle-obama-announces-commitment-subway-restaurants-promot
Zimmer, E. (2012, April 12). Subway Joins the Fast-Food Breakfast Sandwich Club.
RetrievedOctober 14, 2015, from http://www.seriouseats.com/2010/04/subway-launches-
new-breakfast-sandwihes-what-are-the-best-fast-food-breakfast-sandwiches.html
JENNINGS, L. (2013). LIMITED SERVICE. Nation's Restaurant News, 47(12), 52-58.
Mckitterick, Will. IBISWorld Industry Report OD5550. Sanwich & Sub Stores in the US.
Retrieved October 13, 2015 from IBISWorld database.
2015 Top 100: Why Jimmy John's is the No. 7 fastest-growing chain. (2105, June 15).
Retrieved October 14, 2015.
Chipotle. (n.d.). Retrieved October 14, 2015.
Favorite sandwich chains of U.S. consumers 2014 | Statistic. (2014, February 1).
Retrieved October 14, 2015.
Hoovers, Doctor's Associates Inc. (2015). Retrieved October 14, 2015.
49
Subway challenging but McD's is still king. (2009, September 23). Retrieved October 14,
2015.
Wong, V. (2014, May 19). With 3,000 More Locations, Subway Widens Its Lead Over
McDonald's. Retrieved October 14, 2015.
Yum! Brands, Famous Recognition Culture. (2015). Retrieved October 14, 2015.
50
Appendices
Appendix I- Refer to Research I & II
Research Plan
Introduction
This is an attempt to formulate a research plan prior to conducting research on the
Subway brand. This plan is to help assist Subway promote their service among a
specified target more efficiently and effectively. The research plan as a whole will
provide and give the brand feedback on future opportunities for success. First and
foremost, our team will address the primary research questions and hypotheses that our
future study will answer and evaluate.
Research Plan
Prior to conducting the research, one main question our team discussed was how
to receive useful feedback regarding campaigning. Specifically, pertaining to Internet
campaigning and the way in which Subway is currently marketed online. The question
we formulated was as follows; would further viral marketing and utilization of Internet
based tactics result in an increase in customer satisfaction? The reach of the Internet
extends globally to other cultures around the world. There is an additional emphasis on
the younger audience on social media. Subway could extend their brand to these two
potential target audiences. By just releasing more viral ads through the web and
promoting them in a more efficient way through only social media accounts will be
effective campaigning. The growth in social media over the last decade signals extreme
campaigning potential and this question should set the tone for what the team’s research
plan will look like to better benefit the brand.
The second question our team formulated while developing an outline pertains to
Subway’s partnership with Healthier America and first lady, Michelle Obama. This
partnership was in effort to support Michelle Obama’s “Let’s Move” Initiative. The
movement is all about offering healthier options to children and providing them with the
education they need to lead a healthy lifestyle. The question my team came up with to
prepare for the study was as follows; Does Subway's involvement with the“Partnership
for a Healthier America” with spokesperson Michelle Obama create a healthier image
for Subway? We want to know what knowledge consumers have of this movement, and
how this correlates to their choices, particularly fruits and vegetables. Answering this
question will provide our team with more insight on how Subway is involved with this
partnership, and how consumer choices are affected by it.
Mountaineer Media will use a quantitative and qualitative form of research to
answer our primary question on campaigning. We will use surveys with 100-150
respondents that can provide feedback about when how often they use social media.
Questions like how often do they see Subway marketing online and if they did would
they purchase more of the brand? We would also use this type of research for our second
51
primary question and ask respondents questions about the food choices they are making
or how health conscious are they when making a meal decision? The second type of
research we will use is a qualitative focus group. In using this form, it will provide room
for more open-ended questions that a survey can’t answer. It will give the team better
insight of the consumer’s preferences and opinions and also leave room for more
discussion. We will formulate a discussion guide prior conducting the focus group and
respondents will be audio taped for further analysis.
In essence, since Subways consumers are adults between the ages of 18 and 34,
college students on campus will be recruited to conduct our studies. To get specific and
accurate answers to our experiments and research questions, we will have more males in
our focus group than females since the individuals consuming Subway have slightly more
likelihood of being male. Along with these demographics, since the adults are more likely
to be between the ages of 18 and 24, we will not be recruiting respondents for the survey
that are graduate students or above that age range. This plan has been implemented to
further benefit our team’s brand and efficiently answer our research questions for future
profits of Subway and understanding of it’s primary consumers.
FOCUS GROUP CONSENT FORMS ON FOLLOWING 10 PAGES,
APPENDICES WILL CONTINUE ON PAGE 50
52
Appendix II- Refer to Research I & II
Focus Group Moderator’s Guide
Introduction:
 NOTE: Participants were selected after saying that they had previous knowledge
of Subway.
 The introduction to the participants includes the reasoning behind the research,
what we’re trying to accomplish, and what our team is trying to find. The
following questions involve a greeting remark, icebreaker questions, introductory
questions, and our teams’ main questions that are about what Mountaineer Media
is trying to accomplish.
Greeting Remarks (2 Minutes):
 The following statement is for the moderator to introduce themselves to the
participants and also give some insight of where he or she is in order to make the
participants comfortable with their moderator.
-Potential Inquiries:
 Hello my name is ___________. Thank you for participating in this focus group
with us.
I’m from ___________, ___ and I’m very exciting to hear some of the insight
you’ve on Subway.
Icebreaking (8 min):
 The following potential inquiries are supposed to fully engage the participants
with an introduction about themselves. These potential inquiries are not only
supposed to make the participants comfortable with their surroundings in the
given location, but most importantly be able to relate to the moderator.
-Potential Inquires:
 Where are you from?
 What’s your major?
 How many years have you been in school?
 What are your plans for Thanksgiving break?
 Tell us a fun fact about yourself!
Introductory Questions (10 minutes):
 The following possible inquiry questions are for the moderator to get an initial
feel about the participant’s awareness about Subway. We first ask lighter
questions about the topic to see what the participant’s first impressions of Subway
are. The moderator also asks questions regarding what the participants usually
gets at Subway and if they think it is a healthy choice. The information provided
in this phase of the focus groups, will help influence the main section questions of
the focus group.
53
-Potential Inquiries:
 Have you heard of Subway?
 When was the last time you visited a Subway location?
 What do you typically order when you go there?
 Would you describe Subway as a healthy alternative to other fast food
restaurants? Why or why not?
 Overall do you feel that Subway portrays themselves as a healthy option?
Main Questions (15 Minutes):
 The following possible inquiry questions get down to the healthy aspects of
Subway. The moderator asks questions regarding the different campaigns Subway
has done to make their product a more healthy choice. If the participant happens
to know about a certain campaign, the moderator will have the choice to go
further in detail with the participants. By doing this, ultimately we will see if the
participants know the purpose of the campaign and if they participated in the
campaign or approached by an employee to make them aware of the new benefits
Subway offers.
-Potential Inquiries:
 Have you heard of the campaign The Partnership for a Healthier America? (If not
give some background)
 After hearing about this do you think this is something that Subway would be a
part of? Why or why not?
 Subway currently joined this program along with Michelle Obama, have you seen
any advertisements about it? If so what were they?
 Subway is currently trying to encourage customers to “pile on the veggies.” Have
you seen any advertisements encouraging you to do so?
 Have you ever experienced a Subway employee encouraging you to “pile on the
veggies?”
 In the future, what would you like to see from Subway now that they have joined
The Partnership for a Healthier America?
Conclusion:
 After the Focus group is finished, the moderator should later go over the primary
and secondary data research and be able to identify and develop an idea of how
Subway can make their products better. The moderator should have collected
enough qualitative data to enhance and satisfy their current target audiences
needs. These questions that were asked by the moderator should help Subway
overall, target a weak part of their companies campaign to boost up awareness of
Subways products where customers lack perception. Moderators should also be
able to identify a few important details about customers’ opinions on market
trends, and buying habits that could be the reason for an ever so changing market.
Mountaineer Media Final Paper
Mountaineer Media Final Paper
Mountaineer Media Final Paper
Mountaineer Media Final Paper
Mountaineer Media Final Paper
Mountaineer Media Final Paper
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Mountaineer Media Final Paper

  • 1. Subway Final Research Report Colin Holowach Matt Wilson Allyson Whelan Jessica Donahue Cassie McHale Brooke Duddie December 2, 2015 Dr. Hongmin Ahn
  • 2. 2 Table of Contents Overview-------------------------------------------------------------------------------3-4 Situation Analysis---------------------------------------------------------------------5-21 Introduction-------------------------------------------------------------------6 Brand History and Evaluation ---------------------------------------------6 Product Evaluation-----------------------------------------------------------7 Consumer Evaluation--------------------------------------------------------9 Competitive Evaluation------------------------------------------------------10 Marketing Environment Evaluation----------------------------------------15 SWOT Analysis---------------------------------------------------------------17 Research Questions-----------------------------------------------------------20 Research1: Qualitative Study- 22 – 28 Overview of Focus Groups----------------------------------------------------23 Focus Group 1-------------------------------------------------------------------23 Focus Group 2-------------------------------------------------------------------26 Research2: Quantitative Study – Survey- 29 – 41 Overview of Survey----------------------------------------------------------30 Objective-----------------------------------------------------------------------30 Survey Data Analysis--------------------------------------------------------32 Conclusion---------------------------------------------------------------------41 Overall Findings and suggestions – 42 – 44 References – 45- 47 Appendics I 48 – 49 Research Plan-----------------------------------------------------------------48 Appendices II 50- 51 Moderators Guide------------------------------------------------------------50 Appendices III – 52 -54 Focus Group Interview Notes----------------------------------------------52 Appendices IV-Survey Questions- 55- 59
  • 4. 4 Overview of the Research In order to gain a better understanding of the social media and advertising platform of Subway, Mountaineer Media conducted both quantitative and qualitative research procedures. Our team also strategically used these research methods to evaluate and analyze the presence Subway currently has online and the demographic groups our client is reaching in terms of advertising. Mountaineer Media first produced a secondary form of research to evaluate brand awareness which was a situation analysis. After conducting a situation analysis and analyzation of consumer spending reports, our team came to the conclusion that:  Through aggressive expansion and the cornering of the “healthier alternative” label, Subway has created a healthy fast food choice image for itself.  Subway has had an increase in sales in the past year and a steady increase in profit overall.  Subway has created a convenient fast food reputation and is globally recognized for its efficiency and convenience. In addition to these findings the strengths, weaknesses, opportunities, and threats of Subway were reviewed and analyzed. Mountaineer Media concluded from the SWOT analysis that our client is up against various fast food competitors. Our team has also concluded that although Subway is lacking with a social media presence and its overall instore atmosphere, our client is widely recognized as an affordable, convenient, and healthier fast food choice. Mountaineer Media believes that Subway has the ability to increase their overall presence online and in store with the right tactics and strategic implementations. After analyzing all of the secondary information, our team concluded that there was still some research to be done on Subway’s social media platform and brand awareness output. To collect further information, Mountaineer Media conducted a primary research plan to enhance our understanding of where Subway stood with its online presence. Two questions our team thought was essential to follow out the research plan were:  Does Subway’s involvement with the “Partnership for a Healthier America” with spokesperson Michelle Obama create a healthier image for Subway?  Would further viral marketing and utilization of Internet based tactics result in an increase in consumer satisfaction and brand awareness? In order to further understand Subway’s status on the internet Mountaineer Media decided to formulate and send out a survey to the public. The survey consisted of 17 relevant questions relating to the relationship between Subway and it’s consumers via social media. The survey also helped our team analyze the demographics that Subway was reaching out to online and in particular, on social media. Our team also organized and conducted two focus groups with five participants each regarding the presence of the “Partnership for a Healthier America” campaign online. Through these groups, our team hoped to better understand the impact this campaign has had on the public.
  • 6. 6 Subway Situation Analysis Introduction This is a situation analysis of the successful fast food chain Subway restaurants, a subordinate of the massive parent organization Doctor’s Associates, Inc. Inside is a collection of methods and secondary data gathered in order to analyze Subway’s internal environment and surrounding external market. It includes company history, competitor evaluations, statistical market data, and an in depth look at relative market trends along with several other key aspects of Subway and its position in the fast food industry. Subway Brand History & Evaluation Subway is an international fast food restaurant with headquarters in the United States. The CEO of Subway, Fred Deluca, opened his first sandwich shop (pictured right) with the help of his friend Peter Buck when they were only 17 years old. Deluca always had dreams of pursuing a degree in medicine but never could come up with the funds to pay for an education. This is where Buck came into play and loaned Deluca 1,000 to open up a sandwich shop which would in turn help pay for school. Before getting the name Subway, their first shop was called “Pete’s Super Submarines.” Their first location was opened in Bridgeport Connecticut in August of 1965 and the first time the name Subway appeared was in 1968. The name “Subway” derived from the shape of their bread, which looked like a submarine and how long it was. Together, the pair set a goal of having at least 32 stores opened within the first 10 years of business. Realizing this was not realistic for a smaller business, the team took the plunge and made Subway a franchise and brand in 1974. By 1978, the franchise opened its 100th restaurant and went international by the end of 1984. By 1990, Subway reached over 5000 open restaurants and expanded tremendously in the 2000’s. Today, Subway has more than 37,000 locations worldwide and in 92 different countries. Since the start of Deluca’s first subway shop in 1965, the brand has become one of the largest restaurant chains internationally. It is also named the second largest restaurant operator globally. Along with these achievements, Subway been awarded numerous titles and is globally recognized for its high customer satisfaction and high quality fresh food. (Subway-History, 2015) In essence, Deluca was very smart and strategic for finding an investor and partnering with family friend Dr. Buck. Having a doctor as a core investor and co founder of Subway steered the brand into a business savvy direction because since Buck is a doctor, he in turn advocates and markets for healthy eating choices. Subway, being the healthy and fresh choice, promoted better marketing sales and having Dr. Buck as a face Pictured: Subways First Shop http://www.sureewoong.com/lo go-design/su, 1965) Figure 1: Pete’s Subs
  • 7. 7 of the company really gave consumers an incentive to choose a healthy meal. Both Deluca and Buck essentially promoted healthy eating but having a doctor apart of the founding of the company set the tone for the type of products Subway was offering and would in turn get consumers to want to eat clean and “eat fresh. Product Evaluation Product: Well into their 50th year of business Subway has found a product that sells and has become a staple in the fast food industry (Subway, 2015). Their product is a fast, fresh, and nutritious made-to-order sandwich. They currently offer 16 basic sandwiches that customers can choose from (Subway, 2015) as illustrated by their menu above. Subway then gives customers the opportunity to customize their sandwich by giving them different bread, cheese, vegetable and signature sauce options, (Subway, 2015). With their variety of sandwiches they also offer a variety of size and combo options. You can get either a 6-inch or 12-inch sandwich and then for your combo you have the option to get your sandwich with a drink and a cookie, a bag of chips, apple slices or a yogurt parfait (Subway, 2015). They also offer Fresh Fit meals for kids that include a side of apples, milk or water and a gift, (Subway, 2015). They also offer salads, which are just as customizable as their sandwiches, (Subway, 2015). Strengths of Product: Subway has constantly created products that abide by market trends. For example, one of the most recent trends was and still is avocados. Subway created an avocado spread which they then advertised as a way to customize your sandwich, (Subway, 2015). Subway also started a breakfast line back in 2010 to keep up with competitors, (Zimmer, 2010). Their breakfast line features five different sandwiches that are available all day unlike their competitors who only offer breakfast until 10:30 a.m., (Zimmer, 2010). Another strength that Subway has is that their prices relatively inexpensive. You can get a 6-inch sandwich, a drink and a bag of chips for only $6, (Subway, 2015). They also have the infamous $5 foot-long, which is very inexpensive considering the size of the sandwich, (Subway, 2015). Another thing that Subway has done is that they have created a quick and efficient system of making food that people enjoy and keep coming back for. They do this by putting the customer in control and allowing them to create their own sandwich through a process that resembles an assembly line. The customer can see all of the options, tell the employee what kind of sandwich they would like and what they want on it and they then get to see the employee make it right in front of them. In January of 2014 Subway teamed up with the Partnership for a Healthier America and first lady Michelle Obama to help support her Let’s Move! Initiative (The White House, 2014). The first lady’s movement is all about offering healthier options to children and getting them up and moving to make sure that they grow up healthy (The White House, 2014). Subway made a pledge to put only their most nutritious sandwich options on the kids’ menu and to encourage children to pile on the vegetables (Thompson, 2014). They also agreed to meet the restrictions set by the federal government which involve including a side of apples and either nonfat or low-fat milk or water as beverage options (Thompson, 2014).
  • 8. 8 Pictured above: First Lady Michelle Obama, center, and local area kids enjoy lunch at a Subway restaurant on Thursday. (Nick Wass for Subway/AP Images) (Thompson, 2014) ““Ending childhood obesity is a cause that has been near and dear to SUBWAY® since we introduced the Fresh Fit for Kids Meals in 2007,” said Suzanne Greco, vice president of R&D and Operations for the SUBWAY® brand,”,(The White House, 2014). With this partnership Subway is also using some of their famous spokesmen to help promote their products and get children interested. Michael Phelps, Olympic swimmer and Gold-Medalist, Justin Tuck, defensive end for the Oakland Raiders and Nastia Liukin, Olympic gymnast and Gold-Medalist, were all there to help The First Lady announce her partnership with Subway and will be a part of the team for the duration of the campaign, (Thompson, 2014). Weaknesses of Product: Subway advertises themselves as a fresher option compared to other fast food chains and although they may be healthier, fresh isn’t quite the case. While they offer fresh vegetables their breads and meats contain many processed ingredients. Their meat is made up of some actual meat and water which is then held together by things like soy protein concentrate and modified food starch which is then filled with artificial flavoring to make it taste like whatever kind of meat it’s supposed to be, (Warner, 2011). Their bread contains a chemical called azodicarbonamide which is most commonly used as a bleaching chemical in the production of foamed plastics, (Warner, 2011). This is a big problem for them because they are in direct competition with the restaurant Chipotle, which prides itself on serving only fresh ingredients to customers. Chipotle offers the same experience as Subway where customers can create their own food and watch it being made in front of them; the only difference is the quality of the ingredients. Customers might start choosing restaurants like Chipotle over Subway when they realize their food isn’t as “fresh” as they advertise it as. Another weakness is that many of their sandwiches, while advertised as healthy, are not. They have hidden ingredients, which make them high in fat and sodium, which trick people into thinking Figure 2: Michelle Obama
  • 9. 9 that they are eating something healthy. Some sandwiches have upwards of 800 mgs of sodium which is more than a third of the amount of sodium a person should consume in a day, (Subway, 2015). They also give customers many options to make their meals unhealthy by offering chips and sodas with their meals, which take away from the nutritious value of their sandwiches. One of the most notable weaknesses Subway has is that they are independently owned franchises, which means that each franchise does not offer the same options to customers, (Subway, 2015). You might be able to get a certain type of bread or cheese at one franchise but not at the one around the corner. With sandwich restaurants, like any other restaurant, people have their favorites and are not happy when they can’t get what they want. Under the menu section on their website, in breads and toppings, it shows that all Subways offer certain basic options but then there are additional options that are only available at certain locations, (Subway, 2015). If Subway could find a way to offer all the same options at all locations they could increase their sales. Conclusion: Subway is a company that is constantly growing but staying true to their roots. They have a solid product and are considered the healthier alternative to many fast food chains, but are coming into competition with other restaurants, such as Chipotle that are offering even healthier and fresher options. After teaming up with Michelle Obama, Subway showed that they want to make their sandwiches healthier, especially for children, and they are currently working towards that goal. There are many ways for Subway to improve their product such as providing real meats instead of processed ones and focusing on lowering sodium and fat levels in their foods and taking the chemicals out of their breads would be just the beginning of things they could do. They have shown that they are willing and able to keep up with the fast food industry, which will allow them to stay in business for a long time if they start to improve their product and make it as healthy and fresh as possible. Consumer Evaluation Consumer Demographics: Adults between the ages of 18 and 34 (index of 113) are the most popular group consuming Subway; specifically those between the ages of 18 and 24 (index of 112.) These individuals have a slightly higher likelihood of being male; with the index for male purchases at 102, and female index at 98. (MRI Reporter, 2014) MRI Reporter’s Spring 2014 Product: Leisure/Sports Report based on purchases at Subway in the past 6 months reveals specific demographics. Those who attended college are most likely to purchase Subway with an index of 110; following close behind are those who have only graduated high school at an index of 105. Most users of Subway have a professional occupation, are within the upper-middle to high-class range and the most common household income is between $75,000 and $149,999. These individuals are most likely to have a child between the ages of 2 and 5. Racially, those of Asian and Caucasian ethnicity are most likely to be Subway users, both with an index of 103. Geographically, these consumers tend to reside in the Midwest of the United States with an index of 119. (MRI Reporter, 2014)
  • 10. 10 Consumer Psychographics: Subway offers healthier, more natural alternatives compared to other fast food chains in America. This attracts consumers who value their overall health. According to a Mintel report regarding sandwich shop retailing, consumers are ordering 10% more healthy items at sandwich, sub, and wrap restaurants compared to last year. (Mintel, 2010) Often times these individuals are trying to lose weight, and view eating Subway sandwiches regularly as a method to lose extra pounds. Subway consumers typically lead an overall active lifestyle, as they are more likely to participate in outdoor activities and less likely to watch television. (MRI Reporter, 2014) These individuals tend to lead busy day-to-day lives full of activities. They value the ability to quickly get a meal that is easy to eat in transit. Within a Mintel Report regarding sandwich shop retailing there are specific target groups identified among sandwich consumers. One target group is categorized as “convenience driven” which consists of 10% of adults who make purchases based on the nearest convenience. These individuals are more likely to seek out meal deals, and often purchase the product as a treat. Freshness and variety are important aspects that are valued by Subway consumers. These individuals appreciate the made-before-your-eyes freshness of the meals. 15% of adults are willing to look for a sandwich tailor-made for them. (Mintel, 2010) Due to the flexibility of the menu, Subway targets consumers who value the ability to customize their meal. Another target group identified among sandwich consumers are the “variety seekers.” This category consists of 11% of adults who enjoy trying new flavors and ingredients. They typically fall into a higher household income category, and are willing to spend money to receive a quality product. (Mintel, 2010) Media habits reflect the professional occupations of the consumers engaged. These individuals most often read magazines such as Bloomberg BusinessWeek, and American Way. Subway consumers are more likely to be heavy Internet users. The most visited website is bankrate.com with an index of 143. (MRI Reporter, 2014) Further correlating with the level of activity in the lives of these individuals is light television use (index of 104). When the individuals do watch television, sports programs are the most likely watched. Non-users of Subway: Products include those whose income is less than $20,000. A non-user’s occupation is likely to be in natural resources, construction, or maintenance. The least likely to purchase Subway products are those who are 65 years or older. African Americans are the least likely race to purchase Subway with an index of 87. Geographically, the least amount of Subway users resides in the West. (MRI Reporter, 2014) Heavy media use among non-users may correlate with the lack of physical activity in non-user’s lifestyle. Non-users have a likelihood of heavy television use, with an index of 87. They also are most likely to have the least outdoor activity, with an index of 83. (MRI Reporter, 2014)
  • 11. 11 According to the target group divisions in the Mintel report, 17% of adults who are targeted by sandwich shops fall into the “bored” category. These shoppers think it is boring to eat sandwiches regularly, and are less likely to actively seek out meal deals. The final target group is identified as “unengaged.” This category consists of 48% of adults who show the least amount of interest in the purchasing of sandwiches. Their indifference seems to decrease the most regarding practical considerations, such as convenience. Conclusion: In general, Subway users place value and importance on their health. They have concern over the freshness of their meals, and enjoy the product being created in front of them. These consumers live on-the-go lifestyles, and desire a product that is convenient and time efficient to purchase. These individuals not only want to purchase the product with maximum convenience, but also often want to consume the product on the go. Non-users of Subway products have differing characteristics like lower income, and a less active lifestyle. These non-users often have attitudes of indifference or boredom associated with purchasing sandwiches. Competitive Evaluation Competitive Evaluation: As a part of the fast food and quick service industry Subway has many competitors, both indirect and direct. McDonalds and all the companies within the YUM! Brand along with several others all round out the indirect competitors while restaurants that utilize the made to order service like Chipotle embody the direct competitor group. With about 41,500 locations in more than 100 countries they have an edge due to their range throughout the world and their variety of locations that are not just freestanding restaurants but in airports, train stations, sporting event venues and many more places. In recent years fast food restaurants specializing in sandwiches have increased due to how in demand they are, this demand most likely came from the millennial generation’s love of convenience and customization. When Subway first began their “$5 foot long” promotion the company’s sales were high but recently competition from much smaller restaurants has began to take away more business than anticipated and the company is in the process of rebranding themselves. They not only have competition from other sandwich shops, but other fast food places and other restaurants that specialize in “creating your own” as well.
  • 12. 12 Bar Graph Above: Shows Subways Explosion of sales in 2010 against the company’s competition. (qsmagazine.com, 2011) Jimmy Johns: Jimmy John’s and Subway may seem very similar from the outside, they both have menus consisting of subs, chips and cookies, but when they are examined closer they each have quite different things to offer. Jimmy John’s slogan, “Freaky Fast Service,” says it all when it comes to the big difference between Subway and Jimmy John’s (Jimmy John’s, 2015). Their other slogan is, “Subs So Fast You’ll Freak.” Jimmy John’s not only delivers but also guarantees fast service. Although Subway may be just as quick of a dine in option as Jimmy John’s the typical college student or someone working within the time restraints of a 30 minute lunch break may see Jimmy John’s as a better option due to their marketing. Subway beats JJ’s when it comes to the variety of options available. Subway takes the create your own approach and has multiple options for each topping while JJ’s only has three types of breads to choose from and one type of cheese. JJ’s also coined the “unwich,” a sandwich without the bread substituted with a lettuce wrap. Jimmy John’s is currently the number 7 fastest growing chain in the United States (NRN, 2015). Jimmy John’s is currently beating Subway by 8% based on a survey of favorite sandwich chains (Statista, 2015). Chipotle: Chipotle aesthetically has the same layout as Subway and the same concept. They are both considered to be the healthier choices of the fast food industry and quickly Figure 3: Subways Explosion
  • 13. 13 have become top competitors. Chipotle labels themselves as “food with integrity,” meaning that a substantial amount of their menu items are organic and bought locally (Chipotle, 2015). This may make Chipotle seem like a healthier choice, this can be threatening due to the fact that many of Subway’s customer base is health concise. Chipotle is also a newer company, giving it a more modern feel. McDonald’s: According to the data in figure 5 on the next page, McDonald’s is currently Subway’s number one competitor. Subway reached a milestone in 2014 by surpassing McDonald’s in number of locations but McDonald’s sales remained higher (Bloomberg, 2014). Due to the fact that calories are now required to be provided next to menu items Subway has an upper hand because customers are faced with the reality of what they are eating. Subway has the “$5 Footlong” and meal deals but they can still not compare to McDonald’s dollar menu. The downside to McDonald’s is the lack of customization available, unless customers order a la carte they are given a menu with set meals already decided for them. YUM! Brands: Currently at number 3 on Subway’s top competitor list is YUM! Brands. The company houses KFC, Taco Bell and Pizza Hut. All three of the restaurants combined have over 41,000 locations (Yum, 2015). Yum is a respected brand boasting many titles such as one of the, “100 Best Corporate Citizens.” While the various restaurants include chicken, pizza and Mexican-style they appeal to any customers craving. While Subway does not have as much variety within their menu, they appeal in other ways. None of the restaurants within Yum have an option to customize the way that Subway does. They are also not considered healthy options and the names alone will turn away many customers, unlike Subway due to its healthy reputation. Figure 4 Pictured Above: brand logos of some of Subway’s competitors. (http://www.foodpoisonjournal.com/, https://www.findlay.edu/, http://www.baaghi.tv/, http://nrn.com/)
  • 14. 14 Picture above shows the major corporations with their percentage of market shares within the fast food industry. (abhishekmondalamrp.blogspot.com, 2012) Competitive Strengths and Weaknesses: Subway has built a strong name. They are known worldwide and have the largest amount of locations out of their competitors. They have a solid reputation for being a healthier choice, which keeps health concise customers around. They are weak when it comes to social media and modernizing. They are losing customers due to the fact that other healthy options are coming out and making themselves more present. They have an advantage against restaurants that have set menus due to the fact that set menus mean less variety; less variety means that customers are less likely to return because they will want to switch it up. Subway provides a way for a customer to switch it up at every visit because there are so many options. Competitive Conclusion: Subway is one of the original restaurants that provide customers the opportunity to create their own meal. In recent years the millennial generation have become one of the top consumers of fast food and have become more demanding with what they want. With the rise of many new restaurants, Subway has been able to keep up with the competition by providing a simple product that is adaptable in any environment. It is healthy, trendy and affordable for all price ranges. Figure 5: Market Shares of the Major players in the Fast Food Industry
  • 15. 15 Marketing Environment Evaluation Current Market Trends: According to a 2014 consumer report by Mintel Academic, three out of four US consumers had visited a sandwich, sub, or wrap shop in the past month. This trend illustrates three things: the continuing popularity of sandwiches among current consumers, the market for subs and wraps is in place to see an increase in popularity, and that the family of sandwiches, subs, and wraps is becoming a trend in itself among restaurant patrons. Healthier Eating: An analysis of consumer data also on Mintel in the sandwich, subs, and wraps market stated that over the past year customer behavior has indicated more interest in healthier options. This preference edged out focus on price points by eight percent in a recent consumer survey about what is most important when visiting a restaurant/sub shop, as indicated by the green bars in figure 6 (Mintel, 2014). Customers have also responded positively to the sandwich shop vs. fast food chain debate, seventy four percent of which stating they believe sandwich shops to be healthier alternatives to their greasy, fatty counterparts (Mintel, 2014). Millennials have had an impact in steering this trend and have been cited as focusing heavily on health when food shopping. Out of all surveyed, Seventy-seven percent of older millennials wished companies were more transparent with the manufacturing of their products and forty seven percent were less likely to trust large food manufacturers. Younger millennials recorded Picture above shows Consumers behavior changes at limited service sandwich shops (Mountaineer Media, 2015) Figure 6
  • 16. 16 similar numbers at seventy and thirty five percent respectively (Mintel, 2015). This data suggests that consumers are becoming progressively more conscious about their food consumption and as a result are steering themselves towards more authentic product. Convenience: Pursuant to the same consumer report and survey detailed above, nine out of ten consumers stated that when ordering their food at a sandwich, sub, or wrap shop they ordered it to go (Mintel, 2014). This paints a portrait of a consumer with a final destination outside of the shop, and one that is looking for an efficient method of buying food, a quick transaction. Convenience is becoming emphasized more and more by consumers, and restaurants that utilize the made-to-order method or limited service approach are poised to exploit this growing need. The limited service industry, according to Nations Restaurant News, had five of the top 10 fastest-growing restaurant brands in the Top 100 based on system-wide sales growth (Nations Restaurant News, 2013). According to the same article limited service restaurants continually outperform full service dining restaurants on a yearly basis, and dominate the top of list among restaurants in overall sales. McDonald’s and Subway rank number one and number two respectively, with other limited service chains like Burger King and Wendy’s rounding out the rest of the top ten (Nations Restaurant News, 2013). These increases in sales and growth among the limited service industry indicate a change in consumer behavior. Customers want a quicker experience and despite the still stagnant popularity in sit-down dining, there is inevasible expansion and improvement in the limited service and made to order industry.
  • 17. 17 Economy: In this year alone there was a 2.5% increase in revenue for the sub & sandwich industry bringing their total revenue to $21.7 billion (IBIS, 2015). Subway currently has 65.8% of the market share while their competitor Jimmy John’s only has 9.7% (IBIS, 2015). IBISWorld predicts that over the next five years the industry revenue will grow at a rate 1.9% each year to increase revenue to $23.8 billion by the year 2020. During this time consumer spending is expected to increase at an average annual rate of 2.7% (IBIS, 2015).The industry’s contribution to GDP is expected to grow 2.0% annually for the ten years leading up to 2020 (IBIS, 2015). These upward trends imply that the market environment surrounding Subway will be beneficial to product sales. Market Insight: The fast food market is always changing; there are increasing demands for healthier options, the recession and the appearance of fast-casual food. In recent years the focus on the quality of food served in the fast food industry has grown. Consumers are now more focused on how healthy a product is for them as opposed to how fast and cheap they can get it. Fast food restaurants were not as heavily affected by the recession due to their lower prices but they still endured some setbacks. The fast-food industries biggest competitors at the moment are fast-casual food establishments such as Panera Bread and Chipotle. Fast-casual restaurants give customers more options of healthier food that is still served in a fast paced environment. Fast food chains are combating these options by expanding their menus and making more items available that they usually wouldn’t have on their menu. Conclusion: Through aggressive expansion and the cornering of the “healthier alternative” label, Subway has staked its claim to a large majority of the sandwich and limited service food industry. The trends in current consumer behavior indicate interest in the two biggest aspects of subways recent campaigns: health and convenience. Consumer spending reports show a steady increase in Subway’s profits and despite the lacking economic strength of the U.S. and a recent recession, Subway and its sandwich shop competitors have seen an increase in sales in the past year and will continue to do so as long their prices stay affordable and they continue with the current trends. Limited service food chains have dominated the restaurant market and been continuously been a crowd favorite for consumers. SWOT Analysis Strengths  Inexpensive and affordable across the menu - Price points appeal to a larger audience than more expensive counterparts.  Convenient and efficient for all customers - Customers are served efficiently and without any effort/commitment on their part, emphasizing convenience.  Largest sandwich chain in the world - Subway is the largest franchise sandwich, sub, or wraps shop globally and is universally recognized.
  • 18. 18  Nutritious and wholesome – Subway is known to have healthier options, which taps into a whole new audience of people who typically avoid fast food. Weaknesses  Décor is uneventful and mundane – Atmosphere of restaurants is plain and uninviting; doesn’t appeal aesthetically.  Sandwiches have been put together poorly - Quality has been cited occasionally as lackluster and sloppy.  Almost zero social media presence - Yet to utilize online marketing potential and virality of the Internet. Strengths Analysis: Subway is widely recognized as an affordable, convenient, and healthier alternative to other fast food chains. It has branded itself around the world as having a healthier menu that is better suited to those not looking to indulge in the more greasy, fatty options available and has maintained a steady level of convenient efficiency in customer fulfillment. Subway has exceptionally low prices for their portion sizes, enticing all types of customers and not just those looking for the healthier options. Customers are aware of what to expect when entering a Subway, making it a reliable establishment and a chain that customers know fondly. It is recognized globally and has become a staple of not only the fast food industry but the sandwich industry as well, an extremely profitable double threat that reaps dual benefits from two separate markets. Weaknesses Analysis: Despite their traditional layout of customer-driven, made to order sandwich production (a technique used by countless other chains like Chipotle, Qdoba, etc.), Subway’s atmosphere is lacking in receptiveness and does not provide a very welcoming feel. In addition, customers have complained of lackluster and sloppy quality of product. The sandwich based restaurant market is extremely competitive, and with countless other companies like Jimmy Johns, Jersey Mikes, and Firehouse Subs offering sandwiches of sufficient or superior quality that circle around the same price range, quality of product must be monitored and improved. The competition is potentially pulling ahead in another aspect as well, as Subway has yet to legitimately invest in the marketing capability of the internet, a mistake that will only grow larger and more threatening. Competing companies like Mcdonald’s for example have harnessed the massive potential of the Internet, releasing their viral video series a few years back “Think With Your Mouth” that was a resounding success. In order to better assimilate to the rapidly changing technological era, remain relevant, and potentially boost sales in a serious way, Subway must eliminate this technological handicap. Opportunities  Emerging markets and expansion- today Subway has expanded to 37,000 locations globally, in 92 different countries, and rapidly growing.
  • 19. 19  Changing Customer habits and new customer groups- Subway diving into 92 different countries means the organization has to accommodate to the different cultures and their traditional foods while keeping the healthy tag line to the brand.  Introduction of Sub-Way “drive-thru”- when it was first introduced by companies like McDonalds who use this as a huge convenience window for their customers, if Subway can initiate this barrier of opportunity, this can be a huge impact on the yearly profits.  Home meal delivery- similar to the “drive-thu” opportunity, these two ideas complement each other for the convenience of their customers.  Lets get more green- Introduce better vegetarian products and increasing demand for healthier foods. Threats  Threats from other fast food restaurants- Subway certainly has much competition in the brand market of “healthy food” with the most recent boom of restaurants like Chipotle.  Lawsuits against subway- whether it’s a problem from the FDA about their food, employees, face of the brand, or false marketing and advertising Subway has to closely monitor any type of situation.  Restructuring of marketing strategy/starting ground floor- this could be a problem after imprinting the brands image into consumers minds for years, then suddenly changing the brand image because of the previous marketing image failed to promote the same positive message.  Ability to do it yourself- Making sandwiches at home are not only effortless and simple, but also cheaper and less time consuming to get in your car and go somewhere for a product you can produce yourself. Opportunities Analysis: Subway is one of the most rapid growing fast food restaurants not only in the United States, but also the world. Subway has opened 37,000+ stores in 92 different locations globally (Job Monkey, 2015.) The brand focuses on customer satisfaction, which is why the company spends so much money advertising their brand of healthy eating. Subway can leverage new market expansion, new customer groups, just by attacking a new target audience. In our eyes, one of the biggest audiences Subway can target is Muslims. The problem with this target audience is most Muslims are not allowed to eat Subway sandwiches because they obey the fasting of the Islamic Law or “Halal,” which allow active Muslims to eat certain kind of foods at a certain period of the year, typically pork. By opening Halal Subway style stores in America and worldwide, Subway sales can skyrocket just by positioning themselves to accommodate the Muslim population.
  • 20. 20 To accommodate the demand of the Muslim population during Halal’s rules, Subway has answered to remove pork meats from 200 Subway outlets in the United Kingdom with turkey ham and turkey rashers as a substitute in 185 of those stores. By doing this, this is an example that just by accommodating to a different culture can help the whole company generating sales and keep Subways public relations organization happy (DailyMail, 2014.) Subways brand has jumped into 92 different countries and also accommodating to the cultures foods and now is tied for second with Starbucks as the leading in sales for fast food restaurants world wide behind McDonald’s (Forbes, 2014.) By A restaurant that offers drive-thru access and delivery has proven to attract customers just because they know it’s easy and convenient to get their food. Subway can open up jobs within the company just by creating a delivery system, which can create an opportunity to increase its reach to customers. Also, by creating a drive-thru window for all subways, the company can initiate an efficient system in order to make some fast sales. Threats Analysis: Subway can be threatened by a recession that can reduce the purchasing and sales of customers. Given the recent economic downturn, sales are susceptible to decline as with any business. In addition, a company can be hit with a lawsuit from whether it is their food, or an event that occurs at the store, Subway needs to have strict policies to prevent this. If one of these events happen to occur, the whole company will have to restructure their whole marketing strategy from the ground up which Subway has actually just experienced this past August. Their spokesperson was involved in an extremely inappropriate scandal and cast an extremely negative light on Subway and tarnished its reputation (usatoday, 2015.) As a result, they were required to completely start from scratch and develop a whole new marketing strategy in order to repair the damage caused. All companies are prone to these kinds of incidents and as a result, PR policies must be put in place to ensure the least amount of legal/social/financial blowback (usatoday, 2015.) The overall social consensus and attitude surrounding the food industry in America is growing increasingly more health-centric which may seem beneficial to Subway, but can also be extremely dangerous. Although Subway may be one of the healthiest options available in the fast food market, the consumer trends indicate that fast food as a whole is becoming less and less desirable (Bloomsberg, 2014.) This, in effect, means that being the healthiest fast food option is like being the best worst mistake, and consumers have grown tired of making these same mistakes. Our culture is turning on obesity and fast food restaurants because everyone is now realizing how bad it is for you. At home sandwiches are not only affordable but also more convenient. Consumers can easily figure out what subways ingredients are, go to the food market and get the ingredients themselves, and make it themselves (Academic-Mintel, 2014.) Naturally, when humans create or construct something, we get more satisfaction from it because it’s our own. This is not only more affordable, but so convenient to not waste gas to drive to the nearest Subway (Academic-Mintel, 2014.) Research Questions, Hypotheses, & Rationale
  • 21. 21 RESEARCH QUESTION 1: Would further viral marketing and utilization of Internet based tactics result in an increase in consumer satisfaction and brand awareness? The reach of the Internet extends globally to other cultures around the world, and with an increasingly younger audience on social media Subway can extend to these two potential target audiences merely by releasing viral ads through the web and promoting them through their social media accounts. Recently, the user bases of Facebook and Twitter have exploded from fifty eight million to one billion and one million to over five hundred million respectively, This incredible growth signals extreme potential in online marketing, and with their already staggering twenty one million followers on Facebook and over two million followers on Twitter, Subway can exploit this massive potential market that has been previously underutilized by the company. RESEARCH QUESTION 2: Would expanding the base menu that every franchise offers would increase sales by offering more options in deals and foods? Expanding the menu to an all audiences to access is a big factor for increasing sales within every Subway nation/worldwide. The way to do this is to accommodate a wider variety of ingredients Subway offers at only a few different stores. At every Subway restaurants 37, 000 locations, they offer the base breads of 9-Grain Wheat, 9-Grain Honey Oat and a few more. But they’re other varieties of breads that are offered only select locations like Hearty Italian, Jalapeno Cheese, and Parmesan Oregano. Subway also has a base cheese of American and Monterey Cheddar, but only a select number of stores offer Fresh Mozzarella, Pepperjack and Swiss. Going into the veggie aspect, only a couple Subway restaurants have Avocado, sweet peppers, and Guacamole. If Subway can open up these different ingredients to all stores, the company can boost sales traumatically (Subway, 2015.) RESEARCH QUESTION 3: Does Subway's involvement with the ‘Partnership for a Healthier America’ and spokesperson Michelle Obama create a healthier image for Subway? Subway has re-designed their menu options for kids by creating the meals for nutrition foods and affordable profiles that would allow them to meat nutrition criteria. The partnership has created a training video for employees to encourage customers to get apples instead of chips as their sides. Healthier America has created a window into a healthier lifestyle through their sponsorship with PHA. They used media outlets to convey the “pile on the veggies” message, including a TV commercial of the Muppets and several social media platforms. Subway in addition has created a messaging option on their website to facilitate conversation and the connecting of their customers, which
  • 22. 22 they hope will in turn promote discussions concerning healthier eating and vegetable consumption. (Annual Progress Report, 2015.) Research 1: Qualitative Study Picture Above: Subways certified Facebook website posts corny jokes to connect with customers, this was posted on June 17, 2015 Figure 7: Found on Subways certified Facebook website from June 17, 2015
  • 23. 23 Focus Group Study Overview of the Study: The qualitative research method Mountaineer Media chose was to conduct two focus groups. Our analysts focused our discussion around our research question, “Does Subway's involvement with the ‘Partnership for a Healthier America’ with spokesperson Michelle Obama create a healthier image for Subway?” Objectives of the Study: The primary objective of the focus groups was to determine the awareness of the “Partnership for a Healthier America” campaign and Subway’s association with the campaign. Our team also wanted to see if there is any correlation between Subway joining the campaign and if it was encouraging customers to make healthier choices. Mountaineer Media has the purpose of gauging the level of visibility of advertisements, and the familiarity with slogans associated with the campaign. The moderators discussed what the campaign was based on, and how Subway was a part of the partnership’s goals. Our team discussed what options Subway could utilize to promote itself as a healthier fast food restaurant.
  • 24. 24 Focus Group 1 Project Details: - 5 random participants - Date and Time: Tuesday, November 16, 2015 from 7:30 - 8:30 PM - Location: West Virginia University, Mountainlair Student Union Participant Breakdown: Participant Gender Age 1 Female 21 2 Female 21 3 Female 22 4 Male 21 5 Male 21 Analysis I: Key Points of Focus Group Discussion Restaurant Experience ● Two participants reported typically going to Subway once a week ● One participant reported they rarely go to Subway ● All participants varied in menu selection, but chose healthy options (i.e wheat bread, flatbread, extra veggies, salad) Subway and the “Partnership of Healthier America” ● Three participants reported they had never heard of Subway and it’s association with the “Partnership for a Healthier America” ● Two participants said they were unfamiliar with the details of the “Partnership of America” but had heard of the organization before
  • 25. 25 ● All participants agreed that Subway’s partnership with PHA was in line with Subway’s image ● Michelle Obama sparked participants understanding of the partnership and its goals ● Participants appeared to relate more to the association with the spokesperson as opposed to the campaign initiatives or slogans Subway / Image of Health ● All participants considered Subway to be a healthy option ● All participants reported Subway commercials as overall healthy The moderator began the focus group discussion with introduction question to get the conversation to begin. Both focus groups began with the moderator asking what participants selected on the Subway menu - all selections varied greatly. The majority said they chose wheat bread or flatbread with their sandwich, while two mentioned that they only ordered salads. Although, this was posed as an icebreaker question this information is relevant. The majority of participants made healthy choices with their meals, such as wheat bread and vegetables. This is a possible correlation with the “Partnership for a Healthier America” that the moderators address later in the discussion. When asked if participants were aware of “The Partnership for a Healthier America,” two heard of the name, but were not familiar with the details of the partnership. Those two participants were only aware of the campaign because they had seen an advertisement for Subway containing the “Healthier America” logo quickly at the end of the advertisement. The moderator then mentioned Michelle Obama, and explained her position as spokesperson behind the campaign associated with Subway. This new piece of information sparked several participants’ familiarity with the partnership. Although, they did not know the details of the campaign the mention of Michelle Obama caused many to understand the nature of the campaign. This could indicate that the use of influential representatives would further propel the campaign’s familiarity to the average consumer. As the discussion continued the majority of participants said they believed Subway to become progressively healthier over time. This participants made mention of this without prior knowledge of when the partnership began. The partnership began when Michelle Obama announced her involvement in January of 2014, and is purposed to continue throughout the next three years. This leads our team to believe that the image of Subway has become increasingly healthier in correlation with “The Partnership for a Healthier America.” After analyzing the information gained from Mountaineer Media’s focus groups our team can conclude that participants were unable to recall specific advertisements associated with the “Partnership for a Healthier America” initiative. However, Subway’s image as a healthy fast food chain appeared to become more apparent in recent years. The effects of the campaign are being felt, but the visibility of the initiative needs to become accessible
  • 26. 26 to consumers through all forms of media. If consumers are able were able to recall specific advertisements, slogans, and efforts of the partnership the effects would most likely be felt more strongly leading to a higher campaign success rate. Focus Group 1 Reflection: Prior to conducting the focus group discussion Mountaineer Media conducted secondary research to gain knowledge about our client, Subway in order to develop a marketing strategy for the restaurant. Throughout the creation of the Situational Analysis our team was able to create two research questions as the basis of investigating the best marketing strategy methods for our client. The research question associated with the focus groups was as follows; Does Subway's involvement with the “Partnership for a Healthier America” with spokesperson Michelle Obama create a healthier image for Subway? My team proposed two primary objectives: To evaluate the level of awareness that consumers have regarding Subway’s link to a “Partnership for a Healthier America.” and to understand how Subway can further portray the image as a healthy option among its competition. Our team of analysts then formulated a moderator’s guide with several questions investigating our objectives to aid in the focus group discussions. When first arriving at the location of the focus group all participants were greeted as everyone took a seat at a table with the moderator at the head. Once everyone was settled I was relieved to have the moderator's guide to help give structure to the conversation. I began with the introduction explaining the nature of the study without blatantly stating the research question in order to avoid any priming or bias within the discussion. The participants were a bit hesitant to speak out initially, but the ice breaker questions were useful in getting the conversation going. I concluded the icebreaker questions by asking participants what they typically ordered at Subway. This helped me to naturally progress into the discussion regarding Subway. The participants of the focus group initially responded to my questions with short minimal answers. This was my first time moderating a focus group, and I found it challenging to encourage the participants to engage in back and forth discussion. This may have been because I was a bit nervous at first, and was too rigid in the way of asking questions. I was glad to have the moderator's guide to refer to, but at times I would catch myself directly reading from it. In the future I would like to avoid this, and focus more on having a conversational tone with the participants. This could potentially encourage them to open up more, and begin free flowing conversation more quickly. About half way through the focus group discussion the participants began to engage more with me, and one another. I sensed a shift to a more natural state when we began discussing questions about their personal experiences with Subway. It was apparent that they were more willing to elaborate on questions they felt they could relate to, such as “Have you ever experienced a Subway employee encouraging you to “pile on the veggies?” Compared to questions regarding the “Partnership for a Healthier America” of which most were unfamiliar with. In hindsight I would have liked to address the group initially in a more conversational tone myself to encourage that type of communication. I believe I will be able to achieve this in the future, as this was my first experience as a moderator. I found that it was easier
  • 27. 27 to get the participants to open up when asking questions that involved personal experience examples. Beginning with questions that participants understand, and can relate to would help to get the conversation going more naturally which ultimately secured more valuable information for the use of study. Focus Group 2 Project Details: - 5 random participants - Date and Time: Tuesday, November 16, 2015 from 8:00 - 9:00 PM - Location: West Virginia University, Mountainlair Student Union Participant Breakdown Participant Gender Age 1 Female 19 2 Female 19 3 Female 19 4 Female 22 5 Female 22 Our team recruited participants via personal connections to those who fell within our target age range, all participants were students at West Virginia University. We discussed the given topics in the Mountain lair with participants seated at table with the moderator at the head. All information was collected and analyzed through group discussion. Analysis II: The moderator began the focus group discussion with introductory question to get the conversation to begin. Both focus groups began with the moderator asking what participants selected on the Subway menu - all selections varied greatly. The majority said they chose wheat bread or flatbread with their sandwich, while two mentioned that they only ordered salads. Although, this was posed as an icebreaker question this information is relevant. The majority of participants made healthy choices with their meals, such as wheat bread and vegetables. This is a possible correlation with the “Partnership for a Healthier America” that the moderators address later in the discussion. When asked if participants were aware of “The Partnership for a Healthier America,” two heard of the name, but were not familiar with the details of the partnership. Those two participants were only aware of the campaign because they had seen an advertisement for Subway containing the “Healthier America” logo quickly at the end of the advertisement. The moderator then mentioned Michelle Obama, and explained her position as spokesperson behind the campaign associated with Subway. This new piece of
  • 28. 28 information sparked several participants’ familiarity with the partnership. Although, they did not know the details of the campaign the mention of Michelle Obama caused many to understand the nature of the campaign. This could indicate that the use of influential representatives would further propel the campaign’s familiarity to the average consumer. As the discussion continued the majority of participants said they believed Subway to become progressively healthier over time (this participant made mention of this without prior knowledge of when the partnership began). The partnership began when Michelle Obama announced her involvement in January of 2014, and is purposed to continue throughout the next three years. This leads our team to believe that the image of Subway has become increasingly healthier in correlation with the “The Partnership for a Healthier America.” Focus Group 2 Reflection: After interviewing the focus group the moderator was left with some things to think about. The group all agreed that Subway was a healthier alternative to other fast food companies but they also all agreed that there were things they could do to make themselves healthier. Only one of the five participants had heard of The Partnership for a Healthier America and surprisingly it was from a Subway commercial. No one in the focus group heard the slogan “pile on the veggies” which Subway is currently supposed to be using in conjunction with the campaign. The group did agree though that Subway being a part of the campaign was a good idea. Before the whole group agreed that Subway was a healthy alternative, it was interesting to hear the responses of the participants except for one. They ordered a sandwich on wheat bread and the other said that she got a salad. They all also chose lite dressings or oil and vinegar. When the moderator asked them what Subway could change to become healthier one of the participants immediately said that they needed to get rid of the Philadelphia cheesesteak and the meatball sub. She stated that both of those sandwiches are extremely unhealthy and are not helping their image. Another stated that they should get rid of their cookies because customers might order a healthy sandwich, such as the veggie delight, but then get a cookie, which would diminish the healthiness of the sandwich. The information provided by the participants helped understand what direction of a image Subway should take. It was found that only one of the five participants actually heard of The Partnership for a Healthier America. The one who had seen it said “I was after a Subway commercial they put it at the bottom of the screen.” She said that even though she had seen it she didn’t know what it was. When the focus group was explained to the group about The Partnership for a better America, all of the participants thought it was a good idea for Subway to join the movement and also Subway should advertise it more. The Focus group participants suggested Subway having a promotional day where 10% of profits went to the campaign or asking for donations after someone orders a sandwich. If Subway does agree to this idea, this would be a good way to give to a great cause. The moderator asked if they had heard the slogan “pile on the veggies” their faces were all very blank and confused. The focus group was then explained what the slogan meant,
  • 29. 29 coined by Subway, which they were supposed to use to encourage children and parents to add more vegetables to their sandwiches. One participant made the point that “it depends on the person, if the person likes vegetables they’re going to put more on their sandwich, if they don’t like vegetables they won’t put any on their sandwich.” Others had recommendations of how to encourage people to eat more vegetables such as putting window clings on the sneeze guards that say pile on the veggies or offering some sort of discount or reward for putting four or more vegetables on your sandwich. Once the focus group was concluded, the moderator analyzed the key points of the participant’s opinions of Subway, most of the comments were believed people perceived Subway as a healthy alternative to other fast food. Weak points of Subways campaigning is this sample of individuals chosen to do the focus group didn’t know about the partnership, but the participants did recognized Michelle Obama as being a spokesperson for Subway who was also the main spokes person for the partnership. The participants offered some great suggestions on how to better Subway campaigns more effective. The focus group said they would take advantage of a discount if it meant putting a certain number of vegetables on their sandwich. Mountaineer Media thought this focus group helped answer our research question and gave us the results that we wanted.
  • 30. 30 Research 2: Quantitative Study- Survey Overview of the Study: The quantitative research method our team chose was an 18-question, 24 hour survey through Qualtrics Survey Software that our analysts tailored and contoured around the vision of our first research question: “Would further viral marketing and utilization of internet based tactics result in an increase in consumer satisfaction and brand awareness?” Through this process, Mountaineer Media hoped to acquire legitimate quantitative data that would support said question and provide insight into valuable online advertising potential for Subway. Objectives of the Study: As a team, Mountaineer Media wanted to gauge the connection between social media and the consumer as a whole. In the first half of our analysis, we attempted to form a grasp on the behavior of our consumers. How often do you eat fast food? Do you use coupons upon your visit? These types of questions can reveal patterns in our target audience and
  • 31. 31 guide us in an accurate, constructive direction towards understanding their relevant lifestyle choices. In the second half of our analysis, we aimed to expand on the behavioral aspect of our target consumers by analyzing how the fast-food promotions they see can affect their actions. Has an advertisement ever changed your mind about a company? Are you more inclined to buy a company’s product if advertised on social media? These questions were formulated to learn social media and online advertising’s effect on the behaviors and choices of the everyday consumer and, specifically, the fast food consumer. Our analysts worked to find trends in the data that suggest certain pathways into the consumers mind and aid us in developing a strategy as to how Subway can utilize this direct connection in future online marketing. Project Details: - Data Collection Method: Survey - Platform: Qualtrics Survey Software - Open Date: November 17, 2015 - Close Date: November 18, 2015 - Respondents: 106 Demographic Data: - Age Range: 18+ (Target audience was 18-34, majority of respondents fell within 18-22) - Most Common Age Selection of Respondent: 18-22 - Gender of Respondents: Male - 36 Female – 70 All results considered our analysts were able to personify our average respondent as a Caucasian female aged between 18-22 years old. Our demographic data in its entirety is illustrated in the following tables, depicting the differing levels of respondents for each answer in each question. Ethnicity of Respondents Figure 8 # Answer Response % 1 Caucasian/White 84 79% 2 Black/African-American 5 5% 3 Hispanic/Latino 10 9% 4 Asian/Pacific Islander 2 2% 5 Other 3 3% 6 Prefernot to answer 2 2% Total 106 100% (Most common: Caucasian/White. Least common: Asian/Pacific Islander)
  • 32. 32 Age of Respondents Figure 9 Answer Response % 1 18-22 61 58% 2 23-25 27 25% 3 26 and above 18 17% Total 106 100% (Most common age bracket: 18-22. Least common: 26 and above. Target Audience: 18- 34) Gender of Respondents Figure 10 # Answer Response % 1 Male 36 34% 2 Female 70 66% Total 106 100% (Majority Gender of Respondents: Female) The target participants consisted of primarily young adults ages 18-22, but our team endeavored to create a survey that would encompass nearly all ages over 18 years old to ensure an absence of bias and a more versatile opinion. Our method of choosing a sample from our given population was through a convenience sample on the West Virginia University campus and, although this resulted in a stronger showing of younger subjects, an effort was made to ensure participants further shared the survey to their friends and family to foster a degree of randomization and include respondents of all relevant age brackets. Given that Subway’s target audience is composed of adults ages 18-34, our sample was chosen in an effort to parallel the mindset of this demographic and obtain an opinion reflective of how they think. Survey Data Analysis Within our published survey, Mountaineer Media was able to identify two major aspects of our data that needed further analyzing: The attitudes, behavior, and opinion (etc.) of our target consumer, and the effects social media and advertising have on them. Providing our research question, we delved deeper into these two aspects of our experiment to better formulate how Subway can employ the potential findings in the advertising process in order to reach our goal: increased brand awareness and satisfaction.
  • 33. 33 Within the following sections are several charts that were designed to properly illustrate the quantitative data amassed through our survey in a way that is conducive to our reader’s viewing pleasure. Beneath is a legend created to aid in understanding these charts and potentially answer any questions that may arise. Chart Legend: - Categories are color coordinated - Values on left: # of respondents - Values on right: % of total respondents - Titles are paraphrased versions of actual survey questions Consumer Behavior and Opinion In this section, our team of analysts aimed to identify, understand, and interpret the attitudes, habits, and lifestyles of the respondents to our survey. In an attempt to paint a better picture of the fast-food consumer we asked them a variety of questions regarding the fast food industry and their choices within said market. By cataloguing this data, our team formulated a comprehensive understanding of Subway’s target audience and created a foundation of supplemental consumer data on which a future campaign can be developed.
  • 34. 34 Figure 11 When asked how often they eat fast food, the majority of consumers at 35% (37 respondents) said they typically eat it once a week. There were 18% (19 respondents) who said twice a week, 12% (13 respondents) who ate three times a week, 4% (4 respondents) at three times or more, and 31% (33 respondents) who said they do not eat fast food at all on a weekly basis. Our results were not surprising as there seems to be an increasingly popular health kick gaining momentum in the U.S., which in turn will lead to a decrease in fast food consumption. Nonetheless, our team was still able to identify an overwhelming majority of our audience that still eats fast food at least once a week or more. Only 31% of respondents said they did not eat fast food at all, leaving a hefty portion of our sample (69%) as fast-food consumers. This sample, given its similarity in age range, could be indicative of a stubbornly loyal consumer base for Subway and provide reassurance that there are in fact customers who may take advantage of online promotions, if given the opportunity. 33, 31% 37, 35% 19, 18% 13, 12% 4, 4% How many time a week do you eat fast food? 0 Once a week Twice a week Three times a week More than three times a week (Above: Breakdown of fast food eating habits among respondents.)
  • 35. 35 Figure 12 Those who do eat fast food, when asked if they use coupons at fast food restaurants, 55% (58 respondents) said they did in fact take advantage of these promotions while 45% (48 respondents) did not. Although it was not the larger majority our team expected these results still indicate that consumers, if eating fast food, would most likely take advantage of online promotions if they presented themselves. This serves as another reason for Subway to increase its promotional activity and illustrates a glaring need for their increased presence on not only social media but potentially on food service websites like Grubhub, Eatstreet, and Orderup where this form of advertising is an everyday custom. 58, 55% 48, 45% Do you use coupons when buying fast food? Yes No (Above: division of respondents who use fast food coupons.)
  • 36. 36 The last question our team chose to focus on in this section was one surrounding the general social media preference of our survey subjects. Our aim was to simply poll our audience as to what their favorite social media platform was and from there, use this data as a launching point towards creating a strategy based off what online channel Subway’s potential internet marketing could be most successful on. After gathering the responses, according to figure 13, Facebook seems to be highly favored with 93 respondents and 32% of our total audience. Instagram and Twitter came in second and third, with 26% and 24% respectively, while the remaining accounted for only a combined 18%. Given the results, the clear choices for an increased advertising presence would be Facebook, Twitter, and Instagram in order from most important to least (by a relatively slim margin). The monthly active users on each of these platforms rank in the hundreds of millions, and this kind of exposure is a marketing goldmine with the potential to reach an enormous audience. Subway has already established a large following based off of Jared Fogle’s weight loss campaign and constant TV advertising, but in order to remain relevant, shed the negative impact of his brand-destroying scandal, and assimilate to the rapidly evolving technologic culture they must adopt new marketing policies and form a structured understanding of the viral direction marketing is heading. After compiling and analyzing data relevant to our respondents’ fast-food eating habits, our team shifted focus to the social media aspect of our research to better understand their browsing activity and the advertisements they see while online. By gathering this data, our analysts were able to find supplementary information geared towards developing a strategy and solution to and for our research question, and take the next 93, 32% 72, 24% 78, 26% 7, 2% 38, 13% 8, 3% Which social media platforms do you use? Facebook Twitter Instagram Google Plus LinkedIn Other Figure 13 (Above: differing social media platforms used by respondents. Most popular: Facebook. Least popular: Google plus.)
  • 37. 37 step in identifying the specific needs Subway must address in their digital marketing department. Effects of Social Media/Advertising on Consumer Behavior The supplementary objective our team had in mind when publishing this survey was, after gaining a full understanding of consumer behavior, to study the effect social media and advertising has on it. We wanted to further understand how the weight of a company’s advertising campaign on a consumer’s opinion, and the importance they place on these advertisements when making their purchase decisions. Mountaineer Media asked a series of questions in an attempt to gauge how certain advertisements on certain platforms can affect the consumer, where they see these advertisements, and the capability of these advertisements to persuade consumer opinion. Figure 14 (Above: Time spent on social media by survey respondents. Most common answer: 1-2 hours. Least common answer: 0 hours. ) As displayed in figure 14, when asked how often they see general advertisements on social media, the respondent’s answers were overwhelmingly indicative of frequent 5, 5% 61, 58% 29, 27% 11, 10% Hours a Day Spent on Social Media by Consumers 0 Hours 1-2 Hours 3-4 Hours 5 or More Hours
  • 38. 38 exposure. Of the 106 who responded, 40% chose “Quite Often”, 33% (35 people) chose “Very Often”, and only a paltry 2% (2 people) chose “Never”. This clearly illustrates the ability of companies to directly reach consumers through social media and, coupled with the potency of users on each platform, can only serve as a further indicator of marketing potential. With this in mind, fast-food companies and virtually any branch of business could utilize this to their advantage as a cost effective method of consumer targeting. In a society that is becoming increasingly technologically centric, this data also serves as an illustration of future advertising practices and the possibility to get a foot in the door of a strategy that will potentially become much more commonplace for many other companies in the future. Subway, being a company that is infantile in the progress of its social media accounts and online promotional activity, is poised to directly benefit from this sort of change and can strike gold in an opportunity to capture a market that can be directly accessed, even in the privacy of their own home. 7, 7% 44, 41% 38, 36% 14, 13% 3, 3% How OftenAre The Ads You See Online For Fast Food? Never Rarely Sometimes Quite Often Very Often Figure 15
  • 39. 39 A surprising realization our team came to after administering our survey was the shocking lack of fast-food advertising and/or promotions on the Internet. Not even just on social media, but on the internet entirely there seems to be an absence of food-related marketing in proportion to other types. Within the fast-food advertising world, there are several companies who are actively engaging with consumers through social media and frequently promoting exclusive deals, promotions, and coupons. Yet despite this ambition, it seemingly has had no effect on consumers and hasn’t made a strong enough impression. Our team figured that given the high potency of the online advertising market, it would be easy for an industry or company to be obscured by several others who are far more active and place more importance in the online market. That being said, the competitive nature of the market will only continue to grow as it becomes more lucrative, and assimilation to changing standards and practices is mandatory if the goal is maintaining and increasing brand awareness/satisfaction. Figure 16 44, 42% 62, 58% Does Online Marketing Increase Your Interest in a Product? Yes No (Above: Division of respondents who do or do not become more interested in a product after an online campaign.) (Above: Respondents exposure to fast food advertising.)
  • 40. 40 When consumers were asked if online marketing/social media campaigns increased their likelihood to purchase a product the majority, at 58% (62 respondents), reported that it did not increase interest in the product while 42% (44 respondents) did report an increase. It came as a surprise to our team given that the objective of advertising at its core is to inform and persuade an audience into purchasing a product. And to add further confusion, these results are applicable not only to fast food advertising but advertising of all types given that our analysts did not specify what type of advertising within the question. Although this may be discouraging data for companies to see, in actuality, it can be identified as a promising opportunity. Our team believes that despite this negative user response to product interest, consumer opinion is constantly changing and if a company is able to attract the hearts of customers, maybe their stomachs will follow. Figure 17 (Above: Respondents who believe/don’t believe online activity increases a company’s likeability within their target market.) The majority of consumers, 68% (72 respondents) to be exact, felt that an online promotional campaign would boost a company’s likability. This data confused our team significantly given that earlier in the survey, our subjects stated that online campaigns do not increase the likeability of a company’s product, yet now they state that these campaigns do in fact increase the likeability of the company. In essence, our target audience is stating that although it may not make them want to buy the product, if they like the advertisement, it may make them like the company more. Confusions with our sample aside, these results are a reminder of the impact of online advertising and how its role in a consumer’s life can affect their attitude. A company can sway a consumer’s perception of their organization, and that is a foot in the door in the process of capturing 72, 68% 34, 32% Does An Increased Online Presence Increase Company Likeability? Yes No
  • 41. 41 their interest in a product. Although the sample indicated no change in product interest, the positive effect advertising can have on a company’s likeability shows great promise. Figure 18 (Above: Respondents who believe/don’t believe online activity helps companies reach consumers.) Consumers continued to elaborated on their feelings towards an increased online presence, stating that not only do these tactics increase a the likeability of the company but that they were also successful in increasing the company’s reach. 86%, in fact (91 respondents), answered this question positively. We at Mountaineer Media studied this contradiction found in the past three questions and felt that the reason respondents previously indicated disinterest in a product may be because consumers have already chosen their preference based on in-person dining experience, and cannot fully evaluate the product based off of a promotional campaign. A fast food company can capture the minds and hearts of an audience with a well crafted and targeted advertising campaign, but to reconcile skepticism about their product would be difficult given the high variability of food critique, and seemingly consumers only trust themselves when it comes to an experience as intimate as restaurant dining. The modern consumer is complex, smart, opinionated, and makes informed decisions about food preference. That is why as a team, we aimed to develop a strategy that somehow creates a level of trust between the consumer and the company about the company’s product, an extremely hard thing to do only through an advertisement. Our analysts came up with the idea to create online and/or social media testimonials from legitimate customers in order to bridge this gap and foster a sense of trust. A series of brief, candid interviews with legitimate real life Subway customers that are shared on Subway’s social media account and, if approved by the interviewee, include tags of the people involved. By tagging the 91, 86% 15, 14% Does an Increased Online Presence Help Companies Reach Consumers? Yes No
  • 42. 42 customers, the video would then appear on their timelines and the news feeds of their friends in an effort to increase exposure and facilitate virality. This could, in effect, persuade the doubtful respondents, further increase consumer satisfaction, and hopefully spark interest in Subway’s product given this potential newfound trust. Above: Consumer experience on whether an advertisement has changed their opinion in the past.) As a whole, our team agreed this was the single most important question in our survey. By asking this, our analysts could definitively gauge whether advertising can legitimately affect consumer opinion, and in effect, if the future online advertising strategies of Subway could legitimately increase brand awareness and satisfaction. 63% of consumers (67 respondents) stated that an advertising campaign in the past has in fact changed his/her opinion about a company, a majority that suitably legitimizes advertisings impressionability on the public. From the beginning, our team theorized advertising’s effective scope, and these results again demonstrate the incredible impact advertising can still have on the public. Given this data, an effort needs to be made by Subway to harness as this potential as quickly and as effectively as they can. The online market is a prime setting for a viral advertisement, and the daily inclusion of advertising in consumer’s lives serves as a reminder of its vast capability. 67, 63% 39, 37% Has an Advertisement Ever Changed Your Perceptionof or Made You Like A Company? Yes No Figure 19
  • 43. 43 Conclusion: Our team speculated that an increased online presence would in fact maximize consumer satisfaction and brand awareness, and that the broad scope of the internet signaled massive potential. Our hope was that within the data we’d find patterns in the behavior and attitudes of our target audience that would then in turn outline the structure of potential online advertisements in Subway’s future. After analyzing the results from our survey, the findings were decisively in favor of our theory. Consumers stated online advertising increased a company’s likeability and reach, and also revealed that they remain vulnerable to the effects of advertising. With this data, our team concluded that further viral marketing and internet based tactics do increase a consumer satisfaction and brand awareness.
  • 44. 44 Overall Findings and Suggestions
  • 45. 45 Overall Findings and Suggestions: Over the course of Mountaineer Media’s primary and secondary research the team has come up with several different conclusions regarding Subway’s current status within the fast food industry. Through the extensive quantitative and qualitative research team Mountaineer Media did for the Subway franchise, the team has discovered new findings for future campaign efforts through survey and focus group studies. By utilizing these research methods on not only West Virginia University college students but also members of older age groups, our team was able to analyze the level of efficiency Subway is currently using in its entirety to promote the company via social media. Within the research findings, our team was also able to determine the level of brand awareness Subway is exhibiting on social media and how well the company is marketing its product. In addition to Subway’s social media output, our team was able to identify a specific demographic group and the habits of geographical areas where consumers are taking the most advantage of promotions. After formulating appropriate survey questions and publishing the survey to the public, our team was able to analyze responses and get a better understanding of where Subway stood on the social media platform. After analyzing the findings, Mountaineer Media had a detailed analysis of each question and was able to determine and summarize how much not only Subway marketing but online marketing in general is actually reaching consumers via social media and in specific, the 106 participants. Essentially, our team concluded that Subway does not have enough social media presence, with only 19 out of 106 participants responding that they have taken advantage of online Subway promotions. Mountaineer Media also concluded that Subway is not targeting enough demographics with 84 percent of respondents being Caucasian. The analysis of the online survey suggested that utilization of social media/online marketing tactics would help a fast food company like Subway and open the door for new advertising potential. Lastly, the analysis also suggested that advertising campaigns have changed consumer’s opinions or made them like a company more after seeing an online advertising campaign. Mountaineer Media is suggesting that Subway increases their social media presence in order to enhance brand awareness, provide more advertising outlets, and to reach demographic groups that are not being exposed to Subway online. Our team’s second form of research, which was in depth focus groups, gave Mountaineer Media a more clear understanding of the effects the “Partnership for a Healthier America” has had on Subway’s consumers. In essence, the majority of participants weren’t able to recall the partnership. However, the participants who were aware of it did believe Subway has become healthier since being a part of the campaign. They also mentioned that they have heard more of Subway ever since Michelle Obama was named the spokesperson of the campaign. After analyzing the focus group data, our team was able to determine that the campaign was in fact effective but needs to be more visible to the public eye and have more of a partnership presence. One tactic our team suggests to the client would be to implement more advertisements on social media of the campaign instead of the normal healthy ads. An example of this would be to do away with Subway’s athletic celebrity ads and incorporate spokesperson of the campaign, Michelle Obama. Mountaineer Media factored in the results of the focus group and suggests Subway, as our client, needs to increase the visibility of the campaign for a stronger
  • 46. 46 recall and consumers would in turn firmly remember Subway as the healthiest fast food chain restaurant. In essence, Mountaineer Media found strong implication tactics for our client after implementing the research methods in our situation analysis. After collecting consumer feed back and insight from the survey, Mountaineer Media is suggesting that Subway increase their social media presence and that they incorporate stronger advertising platforms online and on all forms of social media specifically. With an increase from both of these factors, our team believes Subway could potentially boost brand awareness, brand likeability, and consumer satisfaction. The analysis of the focus group led Mountaineer Media to suggest that our client reach out more to consumers about the “Partnership for a Healthier America” campaign. Although the focus groups participants were aware of Subway’s healthy reputation, many were unaware of the campaign and its desired effect. Our team believes incorporating more of the campaign would enhance the healthy reputation of our client, encourage more consumers to chose a healthy meal, and most importantly, support Subway’s mission.
  • 47. 47 References Berfield, S., Patton, L., & Chaussee, J. (2015). JARED ISN’T SUBWAY’S ONLY PROBLEM. Business Week, (4434), 38-45. (competition with jersey mikes, jimmy johns, etc.) Oches, S. (2011, August 1). The 2011 QSR 50. Retrieved October 14, 2015, from https://www.qsrmagazine.com/reports/2011-qsr-50 Subway. (n.d.). Retrieved October 8, 2015, from http://www.consumeraffairs.com/food/subway.html Brooks, R. (2013, June 6). McDonalds Big Mac Campaign Appeals To The Internet Generation [Video] - PSFK. Retrieved October 8, 2015. (competition in internet marketing) Menu - All Sandwiches | Subway.com. (n.d.). Retrieved October 8, 2015. (menu) Cebrzynski, G. (1998). Subway unwraps new products, steps up healthful campaign. Nation's Restaurant News, 32(35), 14. (speaking on health) Subway Restaurants Healthy food for health-related environments. (2013). Caribbean Business, 41(20), B28-B29. (hospital endorsement) Monkey, J. (n.d.). Subway Franchise Opportunities. Retrieved October 13, 2015, from http://www.jobmonkey.com/franchise/subway/ Fajardo, K. (2014, October 1). LSR: Sandwiches, Subs and Wraps Concepts. Retrieved October 13, 2015, from http://academic.mintel.com/ Whitehouse, K. (2015, August 28). Franchisee: Subway execs knew about Jared Fogle's interest in children. Retrieved October 14, 2015, from http://www.usatoday.com/story/money/2015/08/28/subway-executives-knew-jared-fogel- pedophile-children-former-franchisee/71297640/ Patton, L. (2014, September 14). Fast-Food Chains' Growth in U.S. May Have Peaked. Retrieved October 14, 2015, from http://www.bloomberg.com/bw/articles/2014-09- 04/fast-food-chains-growth-in-u-dot-s-dot-may-have-peaked How The Fast Casual Segment Is Gaining Market Share In The Restaurant Industry. (n.d.). Retrieved October 14, 2015, from http://www.forbes.com/sites/greatspeculations/2014/06/23/how-the-fast-casual-segment- is-gaining-market-share-in-the-restaurant-industry/ Poulter, S. (2014, April 30). Subway removes ham and bacon from nearly 200 stores and offers halal meat only after 'strong demand' from Muslims. Retrieved October 14, 2015,
  • 48. 48 from http://www.dailymail.co.uk/news/article-2616576/Subway-removes-ham-pork- nearly-200-stores-strong-demand-Muslims-eat-Halal-meat.htmlhttp Peterson, H. (2015, July 7). FBI raids home of 'Subway diet' spokesman Jared Fogle. Retrieved October 14, 2015, from http://www.businessinsider.com/fbi-raids-home-of- subway-diet-spokesman-jared-fogle-2015-7 Sub Sandwiches - Breakfast, Sandwiches, Salads & More | SUBWAY®. (n.d.). Retrieved October 13, 2015. Customer preference for multifunction production. (2012, December 12). Retrieved November 18, 2015, from http://abhishekmondalamrp.blogspot.com/2012/12/research-project-on-marketing- mix-of.html Thompson, K. (2014, January 23). Michelle Obama touts Subway’s kids menu. Retrieved October 14, 2015, from http://www.washingtonpost.com/blogs/she-the- people/wp/2014/01/23/michelle-obama-touts-subways-kids-menu/ Warner, M. (2011, April 18). At Subway, Customers Really Aren't Eating as "Fresh" As They Think. Retrieved October 14, 2015, from http://www.cbsnews.com/news/at- subway-customers-really-arent-eating-as-fresh-as-they-think/ The White House, Office of the First Lady. (2014) First Lady Michelle Obama Announces Commitment by Subway Restaurants to Promote Healthier Choices to Kids. Retrieved from https://www.whitehouse.gov/the-press-office/2014/01/23/first-lady- michelle-obama-announces-commitment-subway-restaurants-promot Zimmer, E. (2012, April 12). Subway Joins the Fast-Food Breakfast Sandwich Club. RetrievedOctober 14, 2015, from http://www.seriouseats.com/2010/04/subway-launches- new-breakfast-sandwihes-what-are-the-best-fast-food-breakfast-sandwiches.html JENNINGS, L. (2013). LIMITED SERVICE. Nation's Restaurant News, 47(12), 52-58. Mckitterick, Will. IBISWorld Industry Report OD5550. Sanwich & Sub Stores in the US. Retrieved October 13, 2015 from IBISWorld database. 2015 Top 100: Why Jimmy John's is the No. 7 fastest-growing chain. (2105, June 15). Retrieved October 14, 2015. Chipotle. (n.d.). Retrieved October 14, 2015. Favorite sandwich chains of U.S. consumers 2014 | Statistic. (2014, February 1). Retrieved October 14, 2015. Hoovers, Doctor's Associates Inc. (2015). Retrieved October 14, 2015.
  • 49. 49 Subway challenging but McD's is still king. (2009, September 23). Retrieved October 14, 2015. Wong, V. (2014, May 19). With 3,000 More Locations, Subway Widens Its Lead Over McDonald's. Retrieved October 14, 2015. Yum! Brands, Famous Recognition Culture. (2015). Retrieved October 14, 2015.
  • 50. 50 Appendices Appendix I- Refer to Research I & II Research Plan Introduction This is an attempt to formulate a research plan prior to conducting research on the Subway brand. This plan is to help assist Subway promote their service among a specified target more efficiently and effectively. The research plan as a whole will provide and give the brand feedback on future opportunities for success. First and foremost, our team will address the primary research questions and hypotheses that our future study will answer and evaluate. Research Plan Prior to conducting the research, one main question our team discussed was how to receive useful feedback regarding campaigning. Specifically, pertaining to Internet campaigning and the way in which Subway is currently marketed online. The question we formulated was as follows; would further viral marketing and utilization of Internet based tactics result in an increase in customer satisfaction? The reach of the Internet extends globally to other cultures around the world. There is an additional emphasis on the younger audience on social media. Subway could extend their brand to these two potential target audiences. By just releasing more viral ads through the web and promoting them in a more efficient way through only social media accounts will be effective campaigning. The growth in social media over the last decade signals extreme campaigning potential and this question should set the tone for what the team’s research plan will look like to better benefit the brand. The second question our team formulated while developing an outline pertains to Subway’s partnership with Healthier America and first lady, Michelle Obama. This partnership was in effort to support Michelle Obama’s “Let’s Move” Initiative. The movement is all about offering healthier options to children and providing them with the education they need to lead a healthy lifestyle. The question my team came up with to prepare for the study was as follows; Does Subway's involvement with the“Partnership for a Healthier America” with spokesperson Michelle Obama create a healthier image for Subway? We want to know what knowledge consumers have of this movement, and how this correlates to their choices, particularly fruits and vegetables. Answering this question will provide our team with more insight on how Subway is involved with this partnership, and how consumer choices are affected by it. Mountaineer Media will use a quantitative and qualitative form of research to answer our primary question on campaigning. We will use surveys with 100-150 respondents that can provide feedback about when how often they use social media. Questions like how often do they see Subway marketing online and if they did would they purchase more of the brand? We would also use this type of research for our second
  • 51. 51 primary question and ask respondents questions about the food choices they are making or how health conscious are they when making a meal decision? The second type of research we will use is a qualitative focus group. In using this form, it will provide room for more open-ended questions that a survey can’t answer. It will give the team better insight of the consumer’s preferences and opinions and also leave room for more discussion. We will formulate a discussion guide prior conducting the focus group and respondents will be audio taped for further analysis. In essence, since Subways consumers are adults between the ages of 18 and 34, college students on campus will be recruited to conduct our studies. To get specific and accurate answers to our experiments and research questions, we will have more males in our focus group than females since the individuals consuming Subway have slightly more likelihood of being male. Along with these demographics, since the adults are more likely to be between the ages of 18 and 24, we will not be recruiting respondents for the survey that are graduate students or above that age range. This plan has been implemented to further benefit our team’s brand and efficiently answer our research questions for future profits of Subway and understanding of it’s primary consumers. FOCUS GROUP CONSENT FORMS ON FOLLOWING 10 PAGES, APPENDICES WILL CONTINUE ON PAGE 50
  • 52. 52 Appendix II- Refer to Research I & II Focus Group Moderator’s Guide Introduction:  NOTE: Participants were selected after saying that they had previous knowledge of Subway.  The introduction to the participants includes the reasoning behind the research, what we’re trying to accomplish, and what our team is trying to find. The following questions involve a greeting remark, icebreaker questions, introductory questions, and our teams’ main questions that are about what Mountaineer Media is trying to accomplish. Greeting Remarks (2 Minutes):  The following statement is for the moderator to introduce themselves to the participants and also give some insight of where he or she is in order to make the participants comfortable with their moderator. -Potential Inquiries:  Hello my name is ___________. Thank you for participating in this focus group with us. I’m from ___________, ___ and I’m very exciting to hear some of the insight you’ve on Subway. Icebreaking (8 min):  The following potential inquiries are supposed to fully engage the participants with an introduction about themselves. These potential inquiries are not only supposed to make the participants comfortable with their surroundings in the given location, but most importantly be able to relate to the moderator. -Potential Inquires:  Where are you from?  What’s your major?  How many years have you been in school?  What are your plans for Thanksgiving break?  Tell us a fun fact about yourself! Introductory Questions (10 minutes):  The following possible inquiry questions are for the moderator to get an initial feel about the participant’s awareness about Subway. We first ask lighter questions about the topic to see what the participant’s first impressions of Subway are. The moderator also asks questions regarding what the participants usually gets at Subway and if they think it is a healthy choice. The information provided in this phase of the focus groups, will help influence the main section questions of the focus group.
  • 53. 53 -Potential Inquiries:  Have you heard of Subway?  When was the last time you visited a Subway location?  What do you typically order when you go there?  Would you describe Subway as a healthy alternative to other fast food restaurants? Why or why not?  Overall do you feel that Subway portrays themselves as a healthy option? Main Questions (15 Minutes):  The following possible inquiry questions get down to the healthy aspects of Subway. The moderator asks questions regarding the different campaigns Subway has done to make their product a more healthy choice. If the participant happens to know about a certain campaign, the moderator will have the choice to go further in detail with the participants. By doing this, ultimately we will see if the participants know the purpose of the campaign and if they participated in the campaign or approached by an employee to make them aware of the new benefits Subway offers. -Potential Inquiries:  Have you heard of the campaign The Partnership for a Healthier America? (If not give some background)  After hearing about this do you think this is something that Subway would be a part of? Why or why not?  Subway currently joined this program along with Michelle Obama, have you seen any advertisements about it? If so what were they?  Subway is currently trying to encourage customers to “pile on the veggies.” Have you seen any advertisements encouraging you to do so?  Have you ever experienced a Subway employee encouraging you to “pile on the veggies?”  In the future, what would you like to see from Subway now that they have joined The Partnership for a Healthier America? Conclusion:  After the Focus group is finished, the moderator should later go over the primary and secondary data research and be able to identify and develop an idea of how Subway can make their products better. The moderator should have collected enough qualitative data to enhance and satisfy their current target audiences needs. These questions that were asked by the moderator should help Subway overall, target a weak part of their companies campaign to boost up awareness of Subways products where customers lack perception. Moderators should also be able to identify a few important details about customers’ opinions on market trends, and buying habits that could be the reason for an ever so changing market.