How Subway Built A $4B Brand, Five Bucks At A Time

Brandweek Magazine:

Since joining Subway as CMO of its Franchisee Advertising Fund Trust in 2006, Tony Pace has been quick to make change, boosting advertising from 52 weeks a year from 33 weeks at the chain that is now America’s second largest, after McDonald’s. He’s created a new digital marketing team and developed branded entertainment opportunities on shows like The Biggest Loser and Chuck. It’s Pace’s first job as a marketer, but the agency veteran is no novice to the QSR business, with experience at McCann on accounts like Burger King, Outback Steakhouse and regional Popeye’s business, and at Young & Rubicam, KFC. Next week (Oct. 4), Subway kicks off a new promotion featuring front man Jared’s training for the ING New York City Marathon. Pace recently talked with Brandweek about Jared, other Subway “famous fans” and the phenomenal success of the chain’s $5 Footlong. Below are some excerpts.

Brandweek: Tell us about the success of $5 Footlong subs.
Tony Pace: On an annualized sales basis, the $5 Footlong is over a $4 billion brand for us. It was started by a franchisee at a Florida restaurant, and as it got broader appeal, we tested it. We thought it was powerful, but with marketing behind it, it was unbelievable. It has had more than 90 percent awareness with people aged 12 to 64 since about three months into the program. It emphasizes great value on our menu, and that’s something we always needed to address. Right now we’re 130 weeks into the $5 Footlong, which was originally planned as a four-week promotion.

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