3.0 Marketing Communications
Marketing Communications in terms of retailing is a specific subset of the Marketing Mix “Promotion” and would take the specific form as it is defined by the American Association of Advertising Agencies (2007) as “the activity, set of institutions and processes for creating communication, delivering and exchanging offerings that have value to customers, clients partners and society at large”. Marketing communications is the “collective term for all the communication functions used in marketing a product” such as advertising, sales promotion etc. (Duncan, 2002, p.15). In terms of the subject company “Subway” this form of communication takes two specific forms: Local marketing communication
Global marketing communication
3.1 The effects of Global Advertising
Subway Trinidad and Tobago has benefited enormously from the overall global campaigns that have been executed by the Subway franchise (US). These have allowed subway easier access and entry into the market, provided a platform for immediate brand recognition and awareness at launch within the local economy and several other benefits including, differentiation, positive brand image etc.
However it should be noted that in some cases this may have had negative drawbacks, for instance US prices for Subway products are usually lower than their Trinidad counterparts, US Subway franchises usually offer different products and variations on standards creating false expectations for local customers and unfair comparisons between the country franchises. Finally the mostly US based advertisements are geared towards different markets and would be sending mixed signals, incorrect signals and other inconsistencies to the local Trinidad and Tobago consumer
3.2 Local Advertising the Focus of this Study
Local Advertising methods, mechanisms, focus and messages is therefore the focus of this assignment and while the effects of Global Advertising are discussed and acknowledged above they are have not been followed or included below in great detail.
3.2.1 The Subway Marketing Model
Subway as mentioned previously has developed and is enforcing and engaging in the use of several Key Critical Success Factors previously mentioned to ensure Market Competitiveness, profitability and local economic sustainability these are: Cost Leadership - The Subway Business Model is focused on driving costs down through efficient supply chain cost management, rigid procedures in terms of following recipes and reducing price increase by managing wastage and other loss potential factors through policy and strong Human Resource
Cost Focus - The ability to produce at low cost is passed on by allowing the company to sell and adopt low pricing strategies Differentiation - The Subway product is unique amongst fast food companies as they are healthy never fried, made your way and freshly baked. Place - Subway due to their flexibility in setup and operations are operated out of many non-traditional locations within Trinidad.
Each of these are highlighted and marketed aggressively, the company has adopted a low cost strategy at the moment with more passive campaigns to highlight it’s differentiation and convenience. The Company’s Marketing approach is integrated in the sense that all Marketing Mechanisms
The Boom-de-yada Campaign was focused heavily on building Subway’s brand awareness and highlight different differentiation aspects. The theme was “My Subway” and builds on the company’s ability to produce a product customized to you and the company’s presence throughout the country “My Subway branch”. The message was visual as well as audio based with a theme song “Boom-de-yada”.
The Ad was mostly negatively recieved by the general public at the time of execution, and was found to be quickly a near duplicate of a Discovery Channel Ad (which carried and executed the same strategy).
Even with the negative response, the company...
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