Abstract

The ‘Brand Endorsement Crisis at Subway’ case is about the crisis Subway faced after the arrest of its key spokesman Jared Fogle (Fogle). The case details the rise of Fogle as brand ambassador of Subway and his role in the gradual growth of the organization. Subway responded to the crisis caused by Fogle’s arrest by disassociating itself from Fogle. It strove to manage the crisis even though the company did not have a crisis management plan. The case discusses the risks associated with a long-term brand endorser and puts forth various opinions of branding experts and public relations experts. It concludes by taking a look at Subway’s decision to hire a management consulting firm to restructure its business and reduce its dependence on brand endorsers and to focus more on the brand itself.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the concept of crisis management, the importance of having a crisis management plan, and the steps to be taken for managing a crisis.
• Understand the importance of public relations for an organization during a crisis.
• Understand the perils of overdependence on a brand endorser.

Keywords

Subway; Jared Fogle; Brand Endorsement; Public Relations; Celebrity Endorsement; Public Relations; Crisis Management; Crisis Communication Plan; Brand Management;