Subway: Problems with Place, Product, and Price
(8 pages of text)
Case (Pub Mat)
Subway had been a dominant player in the submarine sandwich category since its inception in 1965. By 2011, the company had surpassed McDonald’s as the world’s largest restaurant chain. However, the emergence of strong competition and a number of issues—mostly related to its products, place, and price—had caused the company to struggle since 2014. The company’s franchise system was poorly designed and operated, product quality had slipped, the company had not kept up with industry and dietary trends, and the arrest of the company’s key spokesperson had a negative effect on the company’s profits. Revenues declined from 2014 to 2019, and 2,376 stores were closed between 2016 and 2018. Subway needed to turn itself around. How could Subway’s chief executive officer resolve the company’s product-, place-, and price-related issues to help reverse its fortunes?
This case is suitable for undergraduate- and graduate-level courses on the fundamentals of marketing. After working through the case and assignment questions, students will be able to
- examine the problems of a company facing declining revenues and increased competition;
- understand the impact that a company’s product has on its success;
- analyze the dangers of focusing on quantity over quality;
- assess the importance of a company’s distribution system; and
- explain how price perceptions can impact a business.
Accommodation & Food Services
United States, Large, 2020
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