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Subway are a profit seeking company with benevolence? Watch

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    (Original post by penniroyaltea)
    I worked in subway as well when I was 16 and the margins they make on their sandwiches are ridiculous. I honestly don't get how you don't see that this makes good business sense. If it was evey second sandwich that's free then maybe you have a point, but every eighteenth? That's pennies to subway. In addition, people may buy a drink with their eigteenth sub. If they buy a draft coke (which costs subway pennies) then they're making a return on that which immediately covers the meagre production cost of the sandwich anyway. Same with crisps, cookies etc.
    the cost isn't the point. the point is how many extra customers does a reward card actually bring in, people don't shop at places because they get a minuscule reward for every £1 they spend. Likewise loyal customers don't remain loyal because of a free sub once every 18.
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    (Original post by theonefrombrum)
    I understand that a loyalty card would better enable a business to track an individual's buying patterns but I'm struggling to see at this moment how this would greatly benefit them? Prior to the advent of SubCards for example, Subway knew what and what wasnnt being sold but just not by which individuals and so I can't why there's a lot of value in having information on a customer' buying habits. Will Subway market their brand or a particular sub to that Individual person? No. Will they cut the prices of the subs that a person likes, just for that person, so the person may end up making Subway more profit because they buy a lot more of the cheap foods of their choice? No. So tell me genius, where is this value for Subway? Oh and don't be generic, cite actual examples if you don't mind.
    Without being overly lazy, you apparently don't understand business very well and seem to ignore each and every piece of research I could cite, so I'll keep the replies brief.

    In this case, and for this reason, Colloquy Loyalty Innovation in Retail Award 2012 - Subway, for the SubCard. Their explanation why is better than mine.

    We know that loyalty cards have a significant impact in driving custom? Do we? Really? How do 'we' know this? If anything we completely do not know this and the evidence for it is based on what, the continued existence of said schemes? The fact tha people actually use their cards (because why wouldn't you, you're getting something for free in exchange for you doing WHAT UD DO ANYWAY)?
    I assume you have journal site access. Go on a journal site and write 'loyalty card' or 'loyalty scheme' in the business database search. Thousands of peer-reviewed journals, studies, marketing exercises and proofs confirming that loyalty cards are good.

    The branding aspect of your arguement is futile as the companies that actually launch loyalty schemes are pretty much in the conscience of most consumers anyway and a marketing effort to spread the word of a SubCard on 50 billboards will do as much in terms of marketing reach as will spreading the word of a 2 for 1 deal at Subway on 50 billboards. Remember its not little stores that launch these loyalty schemes, its huge ones with profits equal in stature to the brand awareness that they have engendered through many other reasons.
    See above.

    I don't give a damn if some companies spend a lot of time looking into loyalty cards, that fact alone doesn't prove anything. If the whole concept of Loyalty schemes was financially postive for companies utilising it, why haven't many other big companies launched them? Why doesn't McDonalds or KFC have a loyalty scheme? Are they unaware of the very possibility of launching one or is it fair to assume that they've considered them and ostensibly concluded that there was little value in launching such a scheme? Why hasn't the sales growth of any of the companies who have launched loyalty schemes been higher relative to what it was prior to the loyalty scheme, ceteris Parabus?
    Again, the 'loyalty scheme' search should help with your misunderstanding. And if you can find me a time when literally, all other things have been equal apart from a loyalty card, I'd be amazed. An average company probably uses 30-40 variables every day when calculating performance, all other things never remain equal.

    Answer all of these questions, consider what I've said and then come back at me. Also you may want to look at the general consensus to this thread and you may even begin to understand why a public company launching such a scheme might do so. If the overwhelming reaction to the validity of the loyalty schemes is in favour of them, for whatever reason, its not unreasonable to assume that the motives behind launching a loyalty scheme may have a bit more to do with increasing shareholder confidence and the underlying belief in the value of a company. Just something to consider.

    I've used this site for a few years now and largely its been a great thing. It's good to engage in positive debate and my neg rep count is largely thanks to threads like this, where insight and considered judgement are left at the door and traits that students shouldn't exemplify like unchallenging beliefs and an unwillingness to accept any arguments that challenge the status quo of something. Sad thing really.
    It's not so much the fact that your argument is challenging, just that it's wrong and sounds like someone who just learned about strategies for the first time and is repeating a hypothesis postulated casually by someone who probably knows better (my old economics lecturer used to do this in the interest of stimulating debate). You do this without actually bothering to learn about the market you're discussing, whilst ignoring all existing literature. There's plenty of it out there but time and motivation prevents me from popping citations at the end of every line.
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    Interesting thread.

    I work directly with those that run the Subcard scheme and I franchise my own Subway stores. As a direct result of Subcard, I make more money - I have the statistics on my screen right now to prove this. Unfortunately I can't discuss stats or data here, so you only have my word to go on. The OP isn't obliged to believe me, and I doubt he will, but while his arguments are interesting, they are way off the mark.

    Will Subway market their brand or a particular sub to that Individual person? No. Will they cut the prices of the subs that a person likes, just for that person, so the person may end up making Subway more profit because they buy a lot more of the cheap foods of their choice? No.
    We do exactly this.
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    Interesting article from the US pointing out that Subway's claims about 'freshness' of their products are not true.
    http://www.cbsnews.com/8301-505123_1...as-they-think/

    This paragraph is particularly disturbing.

    Let's start with the bread, which is baked in the stores, emitting a distinct and lingering odor even outside. The 9-grain wheat, white and sourdough varieties are made with goodies like sodium stearoyl lactylate and ammonium sulfate, which are used as a dough conditioners, and azodicarbonamide, a bleaching chemical most commonly employed in the production of foamed plastics. In the UK, azodicarbonamide has been classified as a substance that can cause asthma when used in an industrial setting. Yummy.
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    (Original post by russellsteapot)
    Without being overly lazy, you apparently don't understand business very well and seem to ignore each and every piece of research I could cite, so I'll keep the replies brief.

    In this case, and for this reason, Colloquy Loyalty Innovation in Retail Award 2012 - Subway, for the SubCard. Their explanation why is better than mine.



    I assume you have journal site access. Go on a journal site and write 'loyalty card' or 'loyalty scheme' in the business database search. Thousands of peer-reviewed journals, studies, marketing exercises and proofs confirming that loyalty cards are good.



    See above.



    Again, the 'loyalty scheme' search should help with your misunderstanding. And if you can find me a time when literally, all other things have been equal apart from a loyalty card, I'd be amazed. An average company probably uses 30-40 variables every day when calculating performance, all other things never remain equal.



    It's not so much the fact that your argument is challenging, just that it's wrong and sounds like someone who just learned about strategies for the first time and is repeating a hypothesis postulated casually by someone who probably knows better (my old economics lecturer used to do this in the interest of stimulating debate). You do this without actually bothering to learn about the market you're discussing, whilst ignoring all existing literature. There's plenty of it out there but time and motivation prevents me from popping citations at the end of every line.
    It's actually for the app, not the concept behind and the business utility of SubCard. Quick tip, if you're going to make a compelling case, better look through what you recommend as reading material to see whether it bolsters or does nothing for your arguement.

    I've honestly found nothing on any journal sites. Don't give me a ny **** about 'I have no motivation' to link it, you just wrote an essay so clearly its not for lack of time or motivation. If anything from simply typing in 'do loyalty schemes work?' I've come across more papers which state that the answer leans more towards no than yes.....

    My argument isn't wrong, I know that my argument isn't wrong and in the case of Subway, I know that the SubCard's so called power to incentivise the decision of someone isn't strong enough to sway a decision that's already been made not to get a Subway and if somehow has decided to get one, its for the other reasons. You think that you're intelligent and that my opposition to the status quo of thinking is Indicative of ignorance on my behalf but the great irony here is that its you who comes across as the stupid one by not making any good points in favour of a. SubCard nd instead pointing me to irrelevant articles and the general direction of journal sites.

    Oh, and still you haven't told me why many big companies, especially in industries such as Subway's, don't engage in loyalty schemes?
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    (Original post by Subman)
    Interesting thread.

    I work directly with those that run the Subcard scheme and I franchise my own Subway stores. As a direct result of Subcard, I make more money - I have the statistics on my screen right now to prove this. Unfortunately I can't discuss stats or data here, so you only have my word to go on. The OP isn't obliged to believe me, and I doubt he will, but while his arguments are interesting, they are way off the mark.



    We do exactly this.
    How do you know that you make more money as a 'direct result of SubCard'? What statistics do you have?

    You do that do you? You analyse the data given off by your customers using their SubCards and somehow directly market to them? How exactly do you go about doing this?

    Pretty simple questions and just for deciding to contribute to this thread, what i expect is easy to understand answers and you actually replying to me.
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    (Original post by theonefrombrum)
    It's actually for the app, not the concept behind and the business utility of SubCard. Quick tip, if you're going to make a compelling case, better look through what you recommend as reading material to see whether it bolsters or does nothing for your arguement.
    The app being part of the loyalty scheme. As mentioned, I was a bit pushed for time.

    The Subcard (as a full scheme this time, if this happifies you) won the loyalty category at the Marketing Week Engage Awards 2012 and the Best Loyalty Programme at the 2012 Loyalty Awards. Probably better awards than the one I found earlier on.

    I've honestly found nothing on any journal sites. Don't give me a ny **** about 'I have no motivation' to link it, you just wrote an essay so clearly its not for lack of time or motivation.
    If only all my essays had to be less than 250 words long

    If anything from simply typing in 'do loyalty schemes work?' I've come across more papers which state that the answer leans more towards no than yes.....
    Link?

    My argument isn't wrong, I know that my argument isn't wrong and in the case of Subway, I know that the SubCard's so called power to incentivise the decision of someone isn't strong enough to sway a decision that's already been made not to get a Subway and if somehow has decided to get one, its for the other reasons. You think that you're intelligent and that my opposition to the status quo of thinking is Indicative of ignorance on my behalf but the great irony here is that its you who comes across as the stupid one by not making any good points in favour of a. SubCard nd instead pointing me to irrelevant articles and the general direction of journal sites.
    I'm impressed that you know this. With your insight into the mind of every consumer in the land, I'm surprised Tesco haven't snapped you up to run their retail division.

    I have the necessary experience and knowledge of operations to think that my points in favour were sufficient.

    If you raise a belief, you should have more to back it up than the belief that you understand the mind of the consumer.

    Oh, and still you haven't told me why many big companies, especially in industries such as Subway's, don't engage in loyalty schemes?
    Nor would it be necessary to do so in order to successfully argue in favour of the Subcard.
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    (Original post by GPODT)
    Its annoying how Americans only have to pat $5 for a footlong whereas we have to pay £5.
    Same with pizza and almost everything lool!

    britain is so expensive!
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    (Original post by scrotgrot)
    Here in France it's 7 subs! And they still have sweetcorn
    I never knew you were French!
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    Does anyone really actively choose to go to Subway just because of the card though? As in that's what tips the balance - had it not been for the buy-17-get-one-free offer, you would have gone somewhere else? It might just be me, but I usually choose the place I go to lunch on the basis of what I feel like eating that day. If I liked Subway so much that I was willing to go through 17 Subs in order to get that free one, then by the time I'm due for my free Sub, I would have probably gone to Subway for the 18th time anyway.

    If it was some other kind of offer that you could realise more immediately (e.g. coupon for buy one get one free), then I suppose it might make me go to Subway when I otherwise wouldn't have.
 
 
 
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