The Sub Wars

A few years ago, I was a huge fan of Subway.  One day, as I was searching for one of these outlets to eat lunch in, I stumbled upon Quiznos instead.  At the time, I felt like these two healthy fast-food restaurants were basically identical: probably in the same way the majority of the consumers viewed these competitors.  But for no apparent reason I have always preferred Subway.  According to Ries and Trout, this is because they were number one in my, the consumer’s, mind – “the easiest way of getting into someone’s mind is to be the first”[i].

Since then, Subway has completely blown Quiznos out of the water[ii], as they consistently improve and expand their advertising, giving customer’s the impression they are the only choice for sub sandwiches.  From the very beginning, Subway coined the healthy fast food industry from their slogan “Eat Fresh” (Figure 1) to their weight loss spokes person, Jared Fogle, to their repetitive, memorable advertising.  Even though the product at Quiznos might taste better or be of a better quality, as confirmed in John E. Edwards’s blog, Subway is immeasurably more popular.  All of this proves Ries and Trout correct when they claim that you must be the first to occupy a product category in order to be number one in it.

Figure 1  – http://jadetora.blogspot.ca/2012/01/fast-food-frenzy-7-subway-edition.html

[i] http://www.quickmba.com/marketing/ries-trout/positioning/

[ii] http://www.bloggingstocks.com/2008/05/01/battle-of-the-brands-subway-vs-quiznos/

McDonald’s Challenges Ries and Trout’s Theory

Ries and Trout believe it is impossible to reinvent a brand name.  They claim “it is often easier and cheaper to introduce a new brand rather than change the positioning of an existing brand”[i].  But McDonald’s has managed to prove their “single-position strategy” incorrect.

McDonald’s was known worldwide for their mouth-watering fries and lip-smacking hamburgers (Figure 1).  But in 2004 they were hit with a nuclear bomb: Super Size Me.  McDonald’s took a heavy blow as costumers watched Morgan Spurlock devour three meals a day at their beloved restaurant.  He quickly “gets addicted to Big Macs, becomes depressed and lethargic, suffers a loss of libido and incurs liver damage”[ii].  To counter Ries and Trout, McDonald’s initiated changes – introducing of salads (Figure 2), fruit and yogurt their menu, reducing salt content in their fries, and eliminating the supersize option[iii].  After seeing profits plummet due to the movie’s release, McDonald’s altered their junk food image and turned their reputation around.  McDonald’s now serves 56 million customers daily[iv].

FIGURE 2: McDonald’s Advertisement. Denise Hilton Campbell’s blog. WordPress, 23 June 2011. Web. 21 Sept. 2012. <http://dhcampbell.wordpress.com/>.

FIGURE 1: McDonald’s Advertisement. Life of Lopsided 8. WordPress, 12 July 2009. Web. 21 Sept. 2012. <http://lol8.wordpress.com/2009/07/12/where-got-blow-your-mind-away-2/>.

 

 


[i] “Positioning as Popularized by Al Ries and Jack Trout.” Quick MBA. N.p., 2010. Web. 21 Sept. 2012. <http://www.quickmba.com/marketing/ries-trout/positioning/>.

[ii] “McDonalds Fights Back Against ‘Super Size Me’ .” Movies Online. New Zealand Herald, n.d. Web. 21 Sept. 2012. <http://www.moviesonline.ca/movienews_863.html>.

[iii] “McDonald’s phasing out Supersize fries, drinks .” NBC News. N.p., 3 Mar. 2004. Web. 21 Sept. 2012. <http://www.msnbc.msn.com/id/4433307/ns/business-us_business/t/mcdonalds-phasing-out-supersize-fries-drinks/#.UFvgb6DU6lI>.

[iv] Halprin, Robert. “McDonald’s Shareholders Are Lovin’ It: Nearly 5% Profit Increase.” The Inquisitr. N.p., 20 Apr. 2012. Web. 21 Sept. 2012. <http://www.inquisitr.com/222848/mcdonalds-shareholders-are-lovin-it-nearly-5-profit-increase/>.

Ethical Debate: Environment or Profit?

Over the past decade, environmental concern has skyrocketed.  From “An Inconvenient Truth” to Vancouver’s obsession with recycling, everyone is jumping on the eco-friendly bandwagon.  But to profit-driven companies, environmental concern is an insignificant obstacle, disrupting their business’s success.

An oil pipeline is to be built from Edmonton to Kitimat by Enbridge.  It is no surprise that the potential for major oil spills has the first nations and environmental groups outraged.  In response to the rumour that Enbridge had a record of oil spills on other pipelines, Enbridge declared that they had very few in the past and that this was not a reason to reject their proposal.  After more research, the environmentalists discovered that Enbridge actually had a huge oil spill ona pipeline in Michigan just last year.  Once again they tried to cover their tracks, arguing that this spill was a minor issue and was quickly taken care of, but the truth of the matter was “the pipeline rupture ‘caused the largest inland oil spill in Midwest history’ ” (EPA).

Companies are faced with the ethical decision between protecting our environment and making money everyday.  Consequently, when Enbridge chose their profit above all, they made the immoral choice.

http://www.vancouversun.com/spill+report+demanded/7092400/story.html