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I have long thought Subway made a MONSTER mistake in their "$5 footlong" campaign, that showed the whole country that they could sell footlong subs for just $5.
I think this decreased the value of their brand, and made their sandwiches more of a commodity, than a premium product. Take a look at Kevin's analysis.
Next, considering and applying what we have learned this week - imagine you are a consultant brought in by the Subway company's executive leadership to give them advice about their pricing nationwide. What do you tell them? What are they doing wrong, or right?
What risks are they running? Write up about a page about your advice, why you give it, and how that is grounded in the demand estimation that we learned about this week
Attachment:- Assignment.rar
Verified Expert
Subway franchisees will no longer be required to sell the $5 footlong after a franchisee revolt broke out earlier in the year. When the sandwich chain announced in December that it would be bringing back a new take on the deal, charging $4.99 rather than $5 for a footlong sandwich, it was met with mixed reactions. At the time, 400 angry franchisees signed a petition in protest, saying that the company's strategy for discounting was eating into already-slim profit margins. This paper discusses about the pricing issue of products of Subway and provides recommendations. This paper is written in Microsoft Word Document File.
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