Subway and the "$5 Footlong"

My idea for this article came from Prof. Johnson’s M-Blog.  Here is the link to the article she posted.

            Who hasn’t seen this commercial 100 times?  Who doesn’t think of it when going into Subway to purchase a sandwich?  Perhaps one of the catchiest slogans in the market today, the promotion has caused a instant boom in Subway sandwich sales all across the US.

Started by Miami franchise owner, Stuart Frankel, the Subway “$5 Footlongs” has boosted sales enormously all across the country.  And with new commercials coming out seemingly every other month, it doesn’t seem to be going anywhere.  The idea was really quite genius.  The regular price of a foot-long sandwich at Subway is around $6, give or take depending on the sandwich.  By lowering the price by about a dollar, Subway has not only seemed there product to be more of a deal, but have made the “$5 Footlong” into one of the catchiest slogans in recent memory.  I like how Stu Frankel said that he didn’t want to make it the “$4.99 Footlong” because that just didn’t sound right to him.  By rounding up one cent to $5, he has created a brilliant marketing strategy that has proven to be extremely successful. 

As with everything, however, this success will only last so long before people start to become accustom to the new pricing and forget it’s even a deal.  So to answer your question of “What's next for Subway's market plan?”  I think that they should cut the campaign while they are ahead and then bring it back at another date.  If they wait too long, people will not go anymore as they feel they are getting a raw deal.  But if they act now, when it comes back again the craze will start all over.  If not that, then they must think of some other new marketing strategy as this is destined to get old as with everything else.
          Do you agree that Subway should end the "$5 Footlong" campaign before consumers become too accustom to the deal?  What other ideas might you have?

In Response to Brittany M's Post on 3/25

            I would also agree that right now Gatorade is probably the more popular choice of sports drinks.  I feel that this has to do primarily with the advertising approach they take.  I see commercials for the new Gatorade Prime all the time with star athletes like Kevin Durant promoting the product.  Meanwhile, I rarely ever see Powerade commercials.  In today’s world it truly is all about getting the tiniest advantage over your competitors.  If a young athlete is looking in the cooler at the convenience store and has to choose either Gatorade or Powerade, he will most likely choose Gatorade because of the star athletes who promote it.

            That being said, I personally think Powerade is much better than Gatorade.  You explained how Gatorade has high levels of sodium in their product and I honestly feel that I can taste it.  For me, it’s no longer about the advertisement, but the taste.  Growing up, however, I would always choose the product that I saw advertised and promoted most.  It is no wonder why some many young people choose Gatorade.  

Do the Dew

            We talked in class this past week about Sprite and how they directly targeted the hip-hop scene.  Sprite tried to associate their brand with hip-hop culture in an effort to reach their target market.  This sparked a thought for me about Mountain Dew and how they tried to associate their brand with “extreme” sports, such as skateboarding, snowboarding, skydiving and rock climbing.  This marketing mix helped make the general consumer view the soda as something cool and extreme.  This concentrated targeting strategy has worked well for them as Mountain Dew sales made up 6.7% of the soft drink market and 80% of the citrus soft drink market. (Wikipedia)

            As we all know from the video we watched in class, the teenage and pre-teen market is perhaps the most crucial in terms of many companies’ sales, especially when your product is an extremely sweet, highly-caffeinated soft drink.  And that is exactly who Mountain Dew knew they had to target.  With the rising popularity of the X-Games, extreme sports started to see a huge surge in demand from young teens all across the country.  Mountain Dew saw the market opportunity and jumped on it.  From that point on they became a large sponsor of the X-Games as well as holding their own extreme sports competition called the Dew Tour. Because of this many people now associate Mountain Dew with extreme sports and therefore, many teens associate the soda with being the “cool” choice to drink.  Here is a Mountain Dew commercial from the late 90s that I thought showed a good example of their marketing strategy and the image they wanted to receive.

            Any other thoughts on the targeting strategy of Mountain Dew?  Do you see any opportunities for Mountain Dew to explore other markets using a differentiated targeting strategy?  If so, where else could you see an opportunity in the market for soft drink buyers?  

In Response to Doug's Post on 3/9

On the topic of paid vacation trips as job incentives, I can see both positive and negative aspects of this idea.  As you had said, most people respond more to a cash incentive and a vacation may not be as motivating as you may not want to go where they are sending you.  You had also mentioned a good point that they may even claim the vacation worth more than it really is.  However, I do see positive aspects to this motivation strategy.  For one thing, a paid vacation may seem like a more personal gift rather than just a bonus.  I know for me personally, I think it would be awesome to receive a vacation as it may be something I would not do even if I received cash bonus from an incentive.  And after returning from vacation, I would probably be thankful to the company and have a more positive outlook of the workplace.  This is why I think this may in fact be a good incentive.  Another idea I have heard that I think would be affective would be to use premium sports tickets as incentives. 

'Super' Toothpaste?

My inspiration for this blog came from a post on the M-Blog.  There is a link to the actual article here.

            With a product like toothpaste, is there really any need to have as much variety of specialized products as there are in the current market?  Personally, I think not.  Yes, many people do have specific preferences of their toothpaste, however, there are ways to satisfy each consumers need in the market without producing such a vast amount of variety.  For example, why are there so many types of protection offered by toothpaste?  Don’t we all want the best overall protection possible?  Why do some toothpastes claim to protect cavities, some claim to whiten teeth, some fight gingivitis, and some help with bad breath?  Personally, I want my toothpaste do all of those things!  Which leads me to wonder if this is all part of a marketing scheme.  Maybe if a company marketed their toothpastes as a one for all protection then perhaps consumers with white teeth, but bad breath, would choose the another brand that says “Fights Bad Breath” on it.

            But while this differentiation may help sales, I have to think that this form of marketing must be expensive to the company.  Having to advertise all different types of the toothpaste has to add up.  A suggestion I would make would be to cancel all forms of toothpaste in production, create one ‘super’ toothpaste and market it extensively.  If the general consumer knows that this toothpaste is supreme to all others and satisfies all of the consumer needs, whether it be white teeth, cavities, bad breath, etc., then they will most likely choose that product over the rest.  Once this is done the only variation that would need to be offered would be the flavor.  Offering this ‘super’ toothpaste in mint, cinnamon, fruity and all other preferred flavors would fill in the rest of the consumer needs.  This would mean this singular product, offered in all flavors, would only need one advertising plan to show its protective qualities.  Then once consumers see it in the store, they will not have to turn away because they dislike the flavor as all needs will be satisfied. 

            What do you think of this idea of a ‘super’ toothpaste offered in all flavors?  Do you see any flaws in this marketing idea? If so, what are some other suggestions you may have?

In Response to Jordan's Post on 2/27

        If McDonald’s continues to grow more and more popular over in Japan, I absolutely see a rise in their national obesity rate in the near future.  This is not a complex math equation, but a simple matter of applying the facts.  The cycle will be representative of how obesity rates climbed in the US.  As more Japanese start to consume these 550 calorie “American” burgers, the more likely they are to become hooked on them.  And with the low cost and delicious taste of these burgers, it will become even more challenging to pass them up.  The more people realize they can buy a few burgers for the same price as rice and vegetables, they will most likely choose the burgers.  As we all know from our own diet, when you start to substitute healthier meals in turn for McDonald’s burgers, you begin to see an increase in your body weight.  Unfortunately for Japan, they seem to be headed down this path.  This is very sad to me because, as you mentioned, the Japanese culture has always represented a healthy lifestyle.  Hopefully, the Japanese will take a lesson from the US and stop this trend before it starts.

LiveDownloads: A "Win-Win" Stituation

            As a devote fan of the “jam-band” scene, live music is my favorite form of music.  However, it is not every day you get to go to a concert.  So how can you temporarily satisfy this need for live music without going to a show?  The answer is quite simple, record the live music. 

            The trend first began in the late 90s when Phish started releasing a series of live shows as albums that were sold in stores.  The success of these albums caused the band to start recording and releasing the soundboards of each show, available for download on the internet.  Now basically every band on the scene takes part in the new trend.  Bands like Phish, String Cheese Incident, Furthur, Umphrey’s McGee, moe., STS9, Yonder Mountain String Band, and Lotus have made this a staple as part of their act.  In going to their shows, you not only get to enjoy it while you are there, but you know that when you get home the next day you will be able to relive it for only a $10 purchase.

            Not only is this a great way to market the band’s music, but it also brings in extra revenue for an extremely minimal expense.  The band is going to put on the show anyway and the proper recording equipment would only be a one-time investment.  It truly is a win-win situation for the band and the fan.  As a fan, I buy almost every recording of shows I have seen as it is fun for me to relive the night.  Also, I feel this keeps me continually wanting to go to the next show.

            I personally think this idea of recording and releasing live shows is something that all bands should follow.  Music goers love to relive their concert experience and this is the best possible way to do so.  It is a very inexpensive way to produce extra revenue for the band, as well as keep the consumer happy.

            What are your thoughts on this idea?  Even if you aren’t a fan of this style of music, wouldn’t you like to have a copy of your favorite band live in concert that you attended?  In case you are interested, here is a link to the LiveDownloads website.