Celebrity Brand Endorsement Crisis at Subway
| Case Code: MKTG439
Case Length: 13 Pages
Pub Date: 2022
Teaching Note: Available
| Price: Rs.300
Organization : Subway IP Inc.
Industry : Food & Beverage
Countries : United States
Themes: Advertising & Promotion, Brand Strategy, Public Relations & Media, Ethics in Marketing
Abstract Case Intro 1 Case Intro 2 Excerpts
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.
The case is structured to achieve the following teaching 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.
Selecting the Endorsee
Endorsement Benefits both Subway and Fogle
Responding and Managing Crisis Communication
Public Relations Experts’ Opinions
The Way Forward
Telecom industry;COVID-19 lockdown; Broadband service; Broadband network capacity; Business Continuity Planning; Data tariffs; ARPU; Pricing strategy; Rock bottom pricing; Premium tariff; Tariff war; Tariff discipline; Strategic acquisition
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