Impact of Coupon Distribution on Subway’s Brand Perception
Subway is a fast food restaurant franchise serving varying food choices, from salads and drinks to submarine sandwiches. The franchise also offers products based on the locality of their local and international stores to avoid cultural infringement. Since its establishment, the company has sponsored several sports events due to the high revenue it attained from its sales.
The brand’s success lies in the marketing strategy the franchise has adopted for many years. Subway uses the four Ps strategy, thus focusing on four key elements: product, price, place, and promotion. Subway coupon distribution has significantly impacted its sales by enticing its clients, thus promoting profitability and attaining customer loyalty in the long term.
Customers are the most critical stakeholders in any service industry. All companies aim to draw up strategies to help satisfy their clients. Subway is not left behind as it seeks to achieve its primary goal, which is to be ranked the best quick-service restaurant in America and around the globe (Li et al., 2022). Subway coupons were explicitly introduced to entice new clients and promote customer retention. The MyWay Rewards account is within the application, where exclusive promo codes are sent and can be used by clients in restaurants or for future restaurants (Li et al., 2022).
Subway’s perception of many customers is positive since the quality of service provided is not impacted by the discounts. The business’s promotional strategies, such as advertising and coupon codes, are essential to its success (Li et al., 2022). High competition in the fast food restaurant industry has forced companies to formulate unique offers to attain customer loyalty and allure new clients, thus resulting in increased sales.
Effect of Coupon Distribution on Franchise Profitability
Promotion is an integral part of Subway’s brand sustainability and public awareness. Coupon distribution further helps retain past and current customers, thus ensuring the business makes more sales (Li et al., 2022). Despite boosting Subway franchise sales and profits, discounts can also impede profitability.
Subway fast-food restaurant franchises have attained benefits and losses due to coupon distribution. When prices are decreased, the franchisors get more clients, increasing the overall traffic in the app and individual stores, thus increasing the sales value. The marketing strategy has been effective for Subway and has worked perfectly. Some franchisees have been affected, leading to the closure of several stores in the last ten years (Li et al., 2022).
The new pricing approach is deemed suitable since retaining the previous structure with no coupon distribution will result in lower sales. Having high competition in the market from other brands, such as Burger King and McDonald’s, promotes the need to have bonuses. Discounting has a long-term effect on any business, such as customer retention and attracting new clients.
Long-Term Implications of Couponing and Discounting for Subway
Discounting is an easy way to promote the sales of a business, as customers are tempted to get similar services or products at a lower price. Existing clients’ engagement is boosted, and new customers are driven to the business. The significant long-term effect of this introduction is enticing clients to revisit the store or try new products for the first time, thus increasing profitability (Li et al., 2022). Both digital and physical discounts can be introduced in online and physical stores through media promotions and marketing messages on company websites.
Subway is an example of a fast food franchise that uses coupons, and the results have been majorly positive as its revenue has grown. New clients, especially millennials, will likely purchase from a new brand if it offers a discount. Coupon codes are, therefore, considered an effective marketing strategy for brands wanting more sales. Subway benefits much from this approach as it faces stiff competition from other providers, hence the need to devise unique strategies to retain and attract new customers.
Subway’s fast food franchise restaurant is one of the most recognized businesses in the fast food industry in the United States and worldwide. The brand offers various meals, with the main one being the submarine sandwich. Subway considers its clients critical stakeholders, so it introduces coupon codes to increase sales by offering discounts on some products. The coupon distribution has positively impacted the business by increasing sales, thus guaranteeing profitability.
Millennial clients often prefer service providers that give discounts and are the company’s target market. The long-term effect experienced as a result of offering discounts is the retention of former clients and the attraction of new ones. Customers are the critical factor in the success of any firm; hence, there is a need to have them satisfied.
Reference
Li, C., Lu, P., & Xu, L. (2022). Analysis and suggestions on the market and business strategy of Subway. BCP Business & Management, 31(2), 459–464. Web.