This report is based on the work previously done through a group work as a formative assignment. As a team we focused on the brands Tesco and Subway to find their problems and challenges, define their competitors and target audience and find specific solutions for each brand to overcome these challenges and help their brands to better their images. We each researched our assigned parts. I researched and came up with the suggestions for the rebranding of the brands.
The suggestions for Subway included revamping the restaurants, creating a logo which in the mean time the brand already did, emphasising and communicating the fast food chains strengths tot he customer better and redoing their website to create a coherent brand appearance. For the supermarket brand Tesco the rebranding suggestions included redesigning their stores to create a more modern and up to date look to attract a whole other target market and also creating a new logo as the current on does not stand for a good brand image anymore and it is important that the customers see the change happening by noticing the new logo.
Another suggestion for Tesco was emphasising their different in house brands more which are mostly higher
quality products to move away from their low price and quality image and through attract a different kind of target audience who would normally not go to Tesco. For this report I chose Subway as the brand of my focus. The reason why I chose Subway is because even though it has several challenges and problems the brand has a lot of strengths and potential on which they can build to improve their brand.
Table of Contents
1. REFLECTION ON THE FORMATIVE ASSIGNMENT
2. REPORT
2.1 EXECUTIVE SUMMARY
2.2 INTRODUCTION OF SUBWAY
2.3 THE PROBLEMS AND CHALLENGES OF SUBWAY
2.4 MARKET ANALYSIS
2.4.1 CURRENT MARKET TRENDS
2.4.2 COMPETITOR ANALYSIS
2.4.3 SUBWAY’S CURRENT AND POTENTIAL TARGET AUDIENCE
2.5 THE SOLUTION – HOW TO MAKE SUBWAY BETTER
2.5.1 SUBWAY’S OPPORTUNITIES AND STRENGTHS
2.5.2 THE RATIONAL
2.5.3 THE RECOMMENDATIONS
2.5.4 THE CONSULTANCY
3. PLAN
3.1 THE BRIEF
3.2 CAMPAIGN TIMING
3.3 CAMPAIGN COST
3.4 CONCEPT BOARD
Objectives & Core Themes
This report aims to analyze the current brand positioning of Subway, identify the critical challenges affecting its performance, and propose a strategic rebranding plan to restore its market status. The primary research question centers on how Subway can effectively leverage its existing strengths and core identity to regain a reputation for quality and health in a highly competitive, technology-driven fast food market.
- Analysis of market trends, including the impact of technology and consumer health consciousness.
- Evaluation of direct competitors like Chipotle and Taco Bell to assess market positioning.
- Strategic application of Simon Sinek’s "The Golden Circle" theory to refine the brand's business model.
- Development of a comprehensive rebranding campaign, including budget, timelines, and agency selection criteria.
Excerpt from the Book
2.3 THE PROBLEMS AND CHALLENGES OF SUBWAY
Subway was once the second biggest fast food contributor in the US after McDonald’s, but since 2016 they are not anymore. Subway’s business and revenue is continually declining. According to a franchise disclosure documentcited by Bloomberg, the sandwich brand's revenue decreased 4.3% to $1.11 billion in 2015, following a 2.6% drop in 2014.
One of the reasons for this decrease might be Subway’s loss of their main and most lucrative spokesman, Jared Fogle. Fogle first became known because he lost 200 pounds of weight just by eating the chain’s food but in 2014 the spokesman was convicted for having sex with minors and distributing child pornography.
These struggles have now affected chain’s unit-count growth. In 2014, Subway had 27,103 locations. In 2016, it declined to 26,744 locations. Subway also was always big on discounts. Subway’s strong discount policy made it look like a low-quality, unhealthy sandwich distributor in the market. (Maze, 2016)
Summary of Chapters
1. REFLECTION ON THE FORMATIVE ASSIGNMENT: Details the preliminary research conducted during a group project focused on evaluating the brand identity and potential rebranding strategies for Subway and Tesco.
2. REPORT: Provides a comprehensive situational analysis of Subway, examining the brand's decline, market trends, competitor benchmarking, and opportunities for structural improvement.
3. PLAN: Outlines a structured two-year rebranding execution strategy, including financial planning, agency selection, and a roadmap for implementing new brand attributes.
Keywords
Subway, Brand Rebranding, Fast Food Industry, Market Analysis, Competitor Benchmarking, The Golden Circle, Simon Sinek, Consumer Health Trends, Brand Identity, Marketing Strategy, Restaurant Design, Franchise Management, Brand Ambassador, Operational Challenges, Strategic Planning.
Frequently Asked Questions
What is the fundamental focus of this report?
This report serves as a diagnostic and strategic assessment of the Subway sandwich chain, specifically targeting its recent financial decline and brand image issues.
What are the core thematic areas discussed?
The report explores market competition, the evolution of consumer health perceptions, brand storytelling through "The Golden Circle," and practical implementation strategies for a large-scale rebranding.
What is the primary objective of this study?
The goal is to formulate a viable rebranding plan that addresses Subway’s loss of market share by modernizing its restaurant experience and realigning its brand messaging with its historical health-conscious roots.
Which scientific or management theories are applied?
The report utilizes "The Golden Circle" theory by Simon Sinek to analyze Subway's business model (What, How, Why) and differentiate it from its current competitors.
What does the main body of the work encompass?
The main body includes a thorough market analysis, an investigation into the causes of the brand’s decline, a competitor comparison with chains like Chipotle, and a proposed rebranding roadmap.
Which keywords best characterize this work?
The key themes include brand rebranding, strategic marketing, competitive positioning, and consumer health trends in the global fast-food sector.
How does the report justify the proposed redesign of the restaurants?
The report argues that the current atmosphere is outdated and often perceived as unsanitary, necessitating a modern, inviting interior design to change consumer perception and increase customer retention.
Why was the agency "Mystery" selected over "Ignite Hospitality"?
Mystery was chosen due to its extensive experience in working with large-scale lifestyle and restaurant brands, as well as its proven ability to combine digital strategy with physical design.
How does the author propose to move past the Jared Fogle scandal?
The recommendation includes hiring a new, positive brand ambassador and refocusing marketing efforts on the quality and health benefits of the food to help consumers associate the brand with a fresh identity.
What is the projected financial framework for the rebranding?
The proposed budget for the two-year plan is $5,000,000, covering agency costs, restaurant redesigns, staff bonuses, marketing communications, and the introduction of a new menu.
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- Alexandra S. Wiessner (Autor), 2017, A Rebranding Concept for the Brand Subway, Múnich, GRIN Verlag, https://www.grin.com/document/430903
