The idea for Subway’s $5 footlong sandwich was conceived by a Subway restaurant owner over 5 years ago. The sandwich is now a cornerstone of Subway’s marketing campaign. In fact, some people within Subway believe that every time a competitor markets a $5 product, the customer thinks of Subway. As a direct result of offering… Read more »
Posts Categorized: Managerial Accounting
Recessionary Cost-Cutting Revisited
In an effort to keep their heads above water in recessionary times, many companies ignored their traditional strategic plans. They grabbed at any transactions that were above variable costs in efforts to cover fixed costs. Moving away from value-based pricing, they relied on cost-plus pricing. Unfortunately, as this article mentions, cost-cutting can only go so… Read more »
Instant-Coffee Wars
Starbucks has been working on a closely guarded secret for 20 years – Via Ready Brew instant coffee. A month after its launch, Nestle, the maker of Taster’s Choice, has begun an aggressive campaign against the new interloper. This campaign includes free samples of Nescafe’s “sticks,†direct mailings, and Web commercials. QUESTIONS: How should Nestle… Read more »