Have you ever been sitting at work and your stomach starts making noises and all of a sudden you get a notification from a food application on your food. With Subway whole new menu coming out last year has given me a chance to change those food noises to a full belly. Something I always wondered was the process of Subway selecting new sandwiches and the new-product strategy development of those new sandwiches.
New-product strategy development is the stage of the new-product development process that defines the role for a new product in terms of the firm’s overall objectives. During this process you are assessing not only your business but your strengths and weaknesses as a whole to identify threats or opportunities. New products strategy is connected with the business model. This leads into the idea generation where you are building in from new-product strategy results.
Idea generation is the second stage of the new-product development process which involves developing many options for new products. Subway during this time would be developing new sandwiches for new products. Subway as a whole is using the “what if” question. For example, “what if we put pepper jack cheese on an Italian sandwich?” The “what if” questions help with suggestions from employees and friends to help with the idea generation stage. Not only suggestions from employees and friends beneficial but customers and suppliers can help. Crowdsourcing is beneficial considering it involves generating insights leading to actions based on ideas from a massive amount of people. Competitive products like different sandwiches from other stores can help Subway come out with new ideas that can compete with its competitors.
Screening and evaluation is the stage of the new-product development process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort. I do not believe Subway does a internal approach due to all the ingredients are available at any Subway. External approach is when these new products are being tested. Customers are trying out the new sandwiches, Subway is trying to come out with.
Business analysis specifies the features of the product and the marketing strategy needed to bring it to market and make financial projects. The company is assessing whether the product can be economically produced to the marketing strategy needed to have it succeed in the marketplace. This process includes a detailed sales and profit financial projections and marketing and products synergies related to the company’s existing operations.
Development is the stage of the new-product development process that turns the idea on paper into a prototype. The prototypes are going to tested by the consumers and see if the product meets the standard. Market testing involves exposing actual products to prospective consumers under realistic purchase conditions to see if they will buy. Subway utilizes standard test marketing by developing a product and then attempts to sell it through normal distribution channels in a number of test-market cities.
As seen below, Subway came out with this commercial last year to show their new menu. Commercialization is the stage of the new-product development process that positions and launches a new product in full-scale production and sales. Many famous celebrities were added to this commercial to bring light to the new menu Subway brought out in 2022.