History & Marketing Strategies of Subway

Company Name – Subway
Founder – Fred Deluca and Peter Buck

By the numbers of location around the world, Subway stands second as the largest restaurant franchise offer fast food. It has made its availability across the world with more than 40, 000 outlets.

It offers delighting submarine sandwiches, salads, wraps and other beverages among 112 nations across the world. Subway is known to be the fastest emerging fast food franchise among its peer. 

How It All Started

Back in 1965, Fred DeLuca started his own fast food restaurant with the collaboration of Peter Buck by the name of “Pete’s Super Submarines” at Connecticut. In the upcoming year they initiated Doctor’s Associates Inc. to manage the overall operations of all the outlets, as it had already expanded by then.

Later in 1968, ‘Pete’s Super Submarine’ was renamed as ‘Subway’. The restaurant started off with Submarine sandwiches stuffed with fresh and crunchy veggies and various non-vegan options such as smoked chicken, BBQ chicken and many more. Later it came up with wraps, donuts, Paninis and so much more.

Today, on a worldwide level, Subway also provides breakfast and other food menus but those are limited to certain outlets. 


Following that Subway expanded its reach to various other countries. In 1978, Subway opened first outlet on the West Coast in California. Then it continued to expand their stores in many more nations in Bahrain, United Kingdom etc.

Then, from 2004 it began to open their outlet in Walmart. Subway has been ranking among the Top 500 franchises in the Entrepreneur magazine. On December 2001, Subway entered the Indian market and by May 2013 it had opened more than 300 outlets across the country. Due to the cultural preferences and regional influences, Subway has modified its menu to fit in the Indian Market. 

Subway’s Marketing Strategy and Interesting Reason behinds it success.   

BCG Matrix strategy

BCG Matrix is tool which is used by almost all the major companies which offer consumer goods. It helps in evaluating the position of the product, brand and overall potential of the company among its peers. The main product offered by Subway which is the submarine sandwich and salads are major player of the BCG matrix. Whereas, non-vegan items and other beverages such donuts, muffins etc have no existence in the BCG Matrix due to high competition among its peers. 

Distribution Strategy 

Subway being mass chain operator in the world has 45000 plus outlets across the globe. All the outlets are operated by the franchise model Dr. Associates which collect 8% of the total revenue earned from each restaurant outlets. 

Promotional Strategy

Subway has used numerous promotional activities in order to promote it products and brand. It has under promotional activities such as Advertisement through Television, Social Media, and Print Media. Apart from that, it has maintained its reputation by involves in Public relation activities and Personal selling. They have created a TV promotional series ‘chuck’ for US customers.  They go with a slogan ‘Eat Fresh’ and makes sure that they prepare the sandwiches in front of the customers to flaunt their quality. They maintain public relation by asking customer’s opinion in every step in the process of making a sandwich.

Brand Equity Strategy

Among the most valuable brand around the world, Subway has made to 87th position. As mentioned in the previous head, with its various promotional activities. It has increased its brand equity to a great extent by increasing the visibility among the minds of it targeted customer.  

Competitive Strategy

The Competitive analysis of Subway is much focused as it mainly highlights on health and healthy products. In spite of selling subs, the company always uses ingredients that are nutritious and does not affect largely on someone who is on a diet. In terms of taste, the company retains its uniqueness. The company demands that the customers can have health-related benefits consuming the food form Subway. The competitive advantage for the company is sustainable thus it can easily thrive in the market. Moreover, brand loyal customers have made the brand a big hit. 

Market Analysis Strategy

Subway stands apart as one of the leading Quick Service Restaurants. In the present era where the industry of food is full of Multi National Companies, Subway leads from its competitors in terms of market analysis. The main reason for this is due to the awareness of the people about the brand that is provides healthy food. Currently, Subway is ahead of the KFC and McDonalds in terms of the market analysis.

Customer Analysis 

A company like Subway is always aware about the customers who are largely health conscious. Today, most of the people prefer filling yet nutritional meals and Subway fits the bill just perfectly. Each customer can make his/her sandwiches as per their preference. From picking up the bread to the filling and the sauces – each and every component of the sandwich is selected by the customer. Technically, it’s the customer who is supervising the entire process and the final sandwich is as per their preference.


Subway Campaigns

In terms of the campaign, Subway has always keen to put the best advertisement that is outstanding in nature. The ‘Make it what you want campaign is one of the main campaign tools of Subway. It can act two ways. On one hand, it calls for the healthy life in today’s lifestyle. 

The second outcome of the campaigning tag is that of customization. A consumer can easily understand by the campaign that he can easily design his own sub. Customization also helps a customer to have a sub according to his budget needs. The Dentsu Aiges network has been taken by the company as a marketing strategy shift lately. Thus, it can be called as a campaign for the company. 



Subway is one of the prominent markets in the world that produces fast food. It has a large profit base because of the outstanding quality materials they provide. The presence of the company outlets are thrived in many parts of the world. Due to its wide range of subs, it is well famous among the customers.

The Loyalty factor is the plus factor in case of the brand. This helps the brand to have a world-wide customer base and running successfully without any hustles. The customers are well attached with the brand because they know that Subway always provides good quality food. It becomes very easy for a customer to visit Subways and have a good, tasty and healthy food right on time.  

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