Quiznos Sandwich Company

Quizno's is the second leading sub shop company today; Subway may be the first leading shop. Quizno's does have other competitors such as for example Blimpie's and Jerry's Subs; however, Subway is Quizno's primary competitor. The Subway website reads, "Subway is the world's largest submarine sandwich chain with more than 30,000 restaurants in 87 countries." (Subway History 2009). Rebecca Steinfort, the Chief Marketing Officer for Quizno's said, "Our main competition is Subway, that is an 800-pound gorilla" (York 2009). Subway began back the 1960's, based on the Subway official site page. The website reads that, Subway was started in New York by Fred DeLuca and Dr. Peter Buck; Subway has been around business for over forty-three years (Subway, 2009).

Size and Trend of Industry

According to the National Restaurant Association, the quick-service restaurant industry is very profitable; the profit revenues represent 47.5% (or $511 billion) of the meals dollar. The quick service industry in the U.S. receives profits of up to 120 billion. The capability of quick-service has shown to be a substantial success for this industry. According to the United States Department of Agriculture, between 2000 and 2010, the consumption and shelling out for fast food is expected to increase six percent mainly because of the new-age families that save money time participating in activities outside of the home. According to a joint venture partner of the Dun & Bradstreet Company, Hoover Incorporated, many households favor convenience over cooking, which prompts quick-service restaurants to put their franchises in more unorthodox locations such as inside airports or gas stations. According to Hoover's Inc., fast-food chains in the U.S. want to accommodate the increase in consumer spending by targeting international markets, particularly in China (Advertising Age 2009).

The business seeks to function as number one sub shop choice. In its attempt Quizno's has made tremendous progress through its interesting, yet questionable advertising techniques. In Quizno's advertising techniques, they have created ads which are targeted primarily to males and females between your ages of 18-34 years. According to an article from the Mcclean Marketing Group titled "Quiznos sponge monkeys revisited - Buzz isn't enough," the restaurants' market is 18-34 year olds and its spots are created with this audience in mind. Previously, Quizno's had used a commercial ad, developed by the Martin Agency, that used a sponge monkey as the spokes person. When the ad was created, the idea was to create an eye catching and interesting commercial that would stand out from its competitors. In a Washington Post News Week article, the sponge monkey in the industry is referred to as, "A little, furry creature, wearing a bowler hat, levitates as he sings an ode to Quizno's subs" (Stevenson 2005). Other past marketing techniques utilized by Quizno's included the Quiz Kidz program, "when a special menu was developed for the tiny ones and initially launched with a "kids-eat-free" promotion." ECOMMERCE Network article also mentions the purpose of the Quiz Kidz program, that was to attract parents who, rather than a sub, enjoy a salad or pasta. Overall, the sponge monkey commercial was successful in grabbing the attention of viewers; however, it had drawn in a vast amount of complaints from customers who felt the commercial was unpleasant and tasteless. On the other hand, the Quiz Kidz program was successful due to its family oriented approach. In accordance with this Business Net article, the Quiz Kids program increased "evening and weekend business, it nearly tripled sales." They are the major past marketing activities which have been presented by Quizno's. (Edwards 2009 p. 2).

The current marketing activities that Quizno's is currently using include delivery and catering services; Quizno's in addition has altered its menu to surpass Subway's five dollar foot-long deal. In doing this, Quizno's happens to be offering the four dollar Torpedo sub which claims to be always a better tasting sub for less price. In the attempt to promote the lower priced sub, Quizno's has taken the sexually suggestive approach in its current commercial ads. Advertising for the Torpedo sub was created by the advertising agency Nitro. The commercial ad is targeted on the Torpedo sub; however, in the commercial an actor and a voice over is used; the actor and the voice over both say sexually suggestive phrases such as for example, "Put it in me," and "Say it Sexy." This commercial has also used much attention for Quizno's however it has stirred up many complaints aswell. (Ehrke 2009)

In addition to the captivating commercials and lower priced subs, Quizno's is rolling out and implemented the "Million Sub Giveaway." In this plan, Quizno's is offering free subs to customers who consent to share personal information; mainly their email addresses. In accordance with an "Advertising Age" article titled, "Quizno's throws Subway curve with Sexy 4-dollar foot-long," "Quizno's offered a "Million Sub Giveaway," "which is an online effort that e-mailed a coupon to the initial million customers to provide their names and e-mail addresses." These marketing activities are fairly new to the public, and so are continuing to be promoted on national and international levels (York 2009 p. 7).

According to Advertising Age, in 2008 Quizno's spent $90 million on advertising via the Nitro Group, with the total profit/revenue at around $1.9 billion. In contrast Quizno's competitor spent over 300 million dollars on ads (York, 2009 p. 10).

Franchising a Quizno's. Based on the Quizno's internet homepage, so that you can franchise a Quizno's certain criteria must be met. To buy a Quizno's franchise, you need a credit history and a net worth of $125,000. As part of your net worth, you need $70,000 in liquid assets like cash or stocks used to invest in tour restaurant franchise opportunities. Net worth is defined as your total assets; so that's cash, stocks, homes, cars, recreational vehicles, businesses, as etc, less your total debt (Quizno's Homepage 2009).

Referring back again to the Quizno's homepage, "You might have between three and six employees working at one time. You might have 15 total employees on your payroll if you are using part-time employees to work on different shifts." Also, the amount of hours spent depends upon the owner's preferences, such as operating the franchise independently, or hiring a manager to oversee the stores day-to-day affairs (Quizno's Homepage 2009).

Quizno's has many good qualities as a company, three of its current strengths will be the four dollar Toasty Torpedo, the commercials are very memorable, and Quizno's delivers. The Quizno's four dollar Toasty Torpedo is cheaper compared to the Subway Five Dollar Footlong. In today's economy everyone is looking for a cheaper lunch and the Toasty Torpedo may be the better buy. The Quizno's commercials during the last few years have already been very memorable; they contained a memorable message and recently arrived with a commercial that's getting a large amount of attention. Presenting Business Plans of Quizno's is its delivery service, Subway and other fast food restaurants have not yet begun delivering, so Quizno's is pioneering the fast food delivery. Another strength that benefits Quizno's is its delivery service. Currently, participating franchises provide services during typical lunch hours. Unlike Subway, Quizno's delivers personal and catered orders to customers, with a base fee and delivery charge. Choosing the choice of group ordering, and the time you desire the order delivered, are also offered. These benefit Quizno's because they have more franchises offering the delivery service. Also, this helps the company as a result of effect the economy has had on fuel prices. Rebecca Steinfort, Quizno's senior vice-president of delivery and catering, explains: "We've seen a great response even though we have not been advertising.

The Quizno's four dollar Toasty Torpedo is also cheaper than the Subway Five Dollar Footlong. For 4 dollars, customers can buy a toasty torpedo sandwich before tax. In comparison, Subway's five dollar footlong costs $5 before tax (Green Eggs Marketing, 2008, para.1-2). Quizno's benefits because the low price of the sandwich can encourage customers to include to their meals by adding a bag of chips or a soda. Those side items are reasonably priced, and the full total cost of the meal will not exceed $6 (Toasty Torpedo, 2008, para.2).

A weakness that Quizno's has at this time is that although it has a delivery service it is very poorly advertised. The only method to find Quizno's delivery service would be to visit the website; on the website there is hardly any information about the service. Customers ought to be made alert to the delivery opportunities. Another major weakness that Quizno's has is its prices. According to President of Quizno's Subs Greg Macdonald, "Consumers love the sandwiches but found them too expensive" (Marketing Magazine p.3).

Another weakness that Quizno's holds is their advertising approaches. For example, previous commercial ads seemed a little tasteless and un-appetizing. One commercial that involved a sponge monkey was raved as disgusting and unnecessary. According to articles from the Commercial Archives titled, "Quiznos Dusts off Baby Bob," Quizno's commercials have had negative ratings and perceptions, regardless of the ads' popularity. It really is reported in this article that, "the ads give the idea that rats are in Quizno's subs," (Adland p 1). Another perception of a Quizno's ads was," Baby Bob just isn't very funny or interesting or anything" (Adland 1). Both of these commercials involved the shouting sponge monkeys, and the talking baby. As for the latest commercial advertisement, you will find a huge weakness in this add. The commercial focuses on the brand new four dollar torpedo sub. As the commercial does focus heavily on the sandwich, its sexual suggestions are even heavier. To contend with Subway's five dollar foot long, Quizno's has generated the four dollar Toasty Torpedo.

To market this sandwich, Quizno's has developed a commercial that is called inappropriate, offensive, and tasteless. You will find a talking oven that is having a conversation with a chef. The oven is repeating comments such as "Put it In Me." Based on the website onemillionmoms.com, an article titled, "Quizno's is a lot more than 'Toasty'; they're in HOT WATER," reports various mothers that are against the new commercial advertising approach because of its potential affect on television viewers. The article quotes one mother as saying, "I find the homosexual innuendo tasteless, and it only serves to lessen the character of your company. Young children might not see the implication, but teens and adults certainly do"

As for the actual Toasty Torpedo sandwich, the sandwich has been reported as gross, disappointing, and even bland. According to articles titled, "Quiznos' $4 Torpedo vs. Subway's $5 foot long," from the "Orange County News Source," consumers have said "I couldn't believe how bland the sandwich tasted, and how dry the bread was. I was really disappointed" (Luda 2009). The Toasty Torpedo is all reported as looking just like a completely different sandwich when compared to one shown on television. It is said that the sandwich will not even look close to what has been proven in the Toasty Torpedo commercial (Orange County News Source p 3). Quizno's has been reported as having another weakness, Quizno's includes a malfunctioning issue with the Million Sub Giveaway special. In this, consumers were given the opportunity to talk about their names and email addresses in trade for coupons at Quizno's restaurants. Though the giveaway was successful at collecting consumer data, it had a few malfunctions. In the giveaway it had been reported that consumers never received their coupons, others could not print the coupons out, some Quizno's franchises even turned the coupons away (Advertising Age 2p).

One big chance of Quizno's would be to undertake international expansion. Quizno's currently has over 500 restaurants in over 21 countries. If Quizno's opened more restaurants far away the company could continue steadily to expand more and reach a larger group of customers.

Currently, Quizno's largest threat is Subway. Subway has launched the five dollar foot long deal on every one of its sandwiches; in contrast, Quizno's only offers its four dollar sub deal on select subs, which will be the Toasty Torpedo subs. In addition to the sandwich deals supplied by subway, they have also launched a side kick deal. In this, whenever a consumer buys a five dollar sandwich from subway, they are able to choose from a range of side orders for only a dollar. The medial side orders include cookies; apples, and a 20 ounce beverage.

Another big threat to Quizno's at this time is the commercials that they are running to promote the Toasty Torpedo. Though it is a memorable commercial, it could cause some problems. The Toasty Torpedo commercial uses many sexual innuendos and potential homosexual suggestions that could potentially cause different sets of customers to develop a poor attitude towards Quizno's. On other hand its competitor Subway, is rolling out multiple commercial ads that have a catchy jingle that promotes its five dollar foot long subs. This jingle has been reported to become a huge success and contains captured the attention of millions.

According to an article from the Review Atlas titled, "Get Tuned up for the Return of Advertising Jingles," "Subway's "Five Dollar Foot-Long" commercial contains three key ingredients of an effective jingle. It's catchy, it's concise and it tells consumers something about the company you need them to know." (Review Atlas p, 20). The threats that Subway presents to Quizno's are immense and appearance to be unbeatable. Therefore, it is important for Quizno's to continue to compete in the race as a respected sandwich provider

Using primarily a focus group to gain an in-depth look at Quizno's, there is a vast amount of information. And a focus group, the observation method was used to substantiate the findings that could result from the focus group. On a Wednesday, at approximately 12:40pm, The Quizno's restaurant was filled with costumers. There have been consumers in every seat, and there is a line that stretched to the trunk of the restaurant. In this observation, the consumers who have been seated were all eating in groups. A lot of the consumers were dressed up in collared shirts and neatly pressed dress pants. It appeared that individuals were on a lunch break. All of the customers purchased a sub that was toasted, and oozing with cheese. However, there was one female customer who was eating a salad, and appeared to be quite pleased. All of the consumers had a fountain beverage plus a bag of poker chips. As for the environment in the restaurant, it was somewhat noisy and crowded. Furthermore, the weather outside was unpleasant as a result of rainfall. However, this did not stop the consumers from ordering a Quizno's meal. Each consumer patiently waited for their meals, however, they didn't appear happy with the service. It seemed as if the workers were moving too slow, in line with the consumer's facial expressions. Also during the observation, the demographics of the consumers were obvious, including, gender, race, and age. Through the lunch hour, there were more men than woman throughout the entire restaurant, also it was documented that approximately 95 percent of the consumers were Caucasian. The other 5 percent were of other races that ranged from African American, Asian, and Hispanic. The overall a long time was 25-45.

Although observation method was used, the primary research method was the focus group. The focus group consisted of eight individuals; 5 of them were actually eating and enjoying a Quizno's meal, and 2 two were in the restaurant with a friend who was waiting in line for a Quizno's sub. The consumers all decided to participate in the focus group; they all were delighted to do so. The age range of the focus group was 19 to 45. The focus group members were Caucasian-Americans. A lot of the focus group members were white collar workers who had decided to eat at Quizno's for their lunch breaks. The other half was Towson University students. The members were asked over 30 questions, including demographics, favorite Quizno's commercials, favorite Quizno's items, and least favorites items. The questions were designed to understand the underlying feelings that consumers had towards the suggestive messages displayed in Quizno's advertisements. However, when it comes to asking questions highly relevant to said advertisements, there was a variety of answers.

Within the focus group, most of them replied "I simply fast forward past the commercials on my TIVO, (An interactive television application), therefore i haven't even seen a Quizno's commercial." Others expressed which commercials stood out in their mind probably the most, and which commercials were ineffective and offensive. The replies ranged from "the commercials were funny;" to "the Quizno's commercials are gross;" to "I've never seen any of their commercials in all honesty," to "the commercials made me hungry for subway." One focus group member even replied, "Quizno's may be the McDonald's of subs, it's sickening, they both are horrible!" Each question was directed to each member and each member gave an equal response. From this focus group, the underlying feelings, opinions, and emotions about Quizno's were discovered, and their feelings about Subway. Consumers expressed personal preferences when it comes to Quizno's commercial advertising, and provided suggestions on how to improve it. The ultimate findings from this focus group was the reduced effectiveness of Quizno's advertising approaches; primarily its television commercials.

The reason for utilizing the focus group was to gain in-depth and private information from actual Quizno's costumers. Another reason for by using this approach was to gain actual responses to recognize the short comings of the Toasty Torpedo television commercial, and other advertising approaches. This process was also effective because it allowed personal interactions with costumers; the focus group also allowed consumers to feel safe and willing to start. A survey was not used in the research because it wouldn't normally exhibit the truthful feelings that consumers had toward Quizno's. In a focus group, a firsthand response will be given truthfully and openly.

A personal interview had not been found in this research because there are so many differing opinions when it comes to Quizno's and its commercial ads. A focus group would display the varying opinions on a far more detail and emotional level. Ultimately, the interview would limit the results to one perspective, in comparison to a focus group. Also, the outcomes from the personal interview would be biased and lack a multi-dimensional response. The focus group has positively affected the Advertising campaign, primarily by providing insight of why Quizno's past commercials were ineffective. The outcomes from the focus group will demonstrate the precise elements that can help in the effort to get more customers, while regaining lost customers through enhanced advertising strategies.

The primary target audience that is best for Quizno's to appeal to is the middle class white collar segment. The middle class is in fact the largest class in the United States, in line with the Pew Research Center. The middle class is largely comprised of married people with children, university students, and college grads. The Pew Research Center reports that 68 percent of middle class members are homeowners. Additionally it is reported that a large amount of middle class member eat out many times a week; this audience is describe as healthy individuals as well. Moreover, the center class is described on a geographic level aswell. In this report, most middle class individuals have a home in suburban and rural areas. Approximately 54 percent of middle income members have a home in suburban areas, compared to the 40 percent that reside in urban areas. In line with the Social Analysis and Reference Groups, the middle class will value education, news, homeownership, and stability (Social Analysis p. 13). According to Dr. L Robert Khols, the director of International Programs at SAN FRANCISCO BAY AREA State University, the middle class American also values equality, wealth, newness, innovations, success, and time. (Kohls, p.3-10). The center class target audience includes a selection of demographics, geographic, and behavioristic elements; however, the more affluent segments of the center class are crucial to finding the perfect marketplace for Quizno's.

get more info -24 year-olds represent 26.1 million of america population, with the best amounts of this demographic surviving in the Northeast. Whites still have the highest population of citizens at 62 percent. Hispanics are second at 16 percent, Blacks are third at 13 percent, and Asians are last at 5 percent. Less than 3 percent of this age group lives at home with their parents either in school regular or not in school at all. In the U.S. 62 percent of this population have a higher school diploma with some college education, while 16 percent haven't any high school degree. Fifty-five percent are working middle to low-income full-time jobs, with personal earnings amounting to 60,000 dollars. A little over 1 / 2 of the individuals in this age group haven't been married, and currently have no children. According to the Journal of Advertising Research, "this generation of citizens are idealistic, socially conscious, individualistic, anti-corporate, speak their minds and dress as they please." (Kapner, 1997). For the reason that of these reason that this particular segment is difficult to advertise to. They don't succumb to the usual advertising methods which have proven to be successful for other age groups (Wolburg, 2001). Those in this generation that are university students are also important due to the impact they have on the market. In numbers they can influence others due to how quickly they adopt new products, and how quickly they develop brand loyalties which will last long up (2001).

This target market consists of middle class males that are between the ages of 25 and 39. The salaries of the market ranges from 35,000 to 50,000 dollars per year. They are fresh within their careers; mostly in good health and value time because they do money. The majority of the individuals in the forex market area come in a managerial position (Lexis-Nexis, Valios). To help expand support this is articles from Restaurants and Institutions. The article reads, "Middle-class consumers are most likely to say that casual-dining restaurants are their primary dining-out choices." The forex market in addition has been reported to eat at restaurants that reflect their social status. The Restaurant and Institutions site article reads, "Middle-class individuals are more likely than lower-middle-class or upper-middle-class consumers to say that their restaurant choices reflect their social status." The article says that these middle income individuals have a range of household incomes starting at 35,000 dollars per year. To also illustrate this target markets value of time may be the Restaurant and Institutions article, which reads that most individuals in this middle income market will probably not wait more than thirty minutes for meals; nor will they wait that timeframe to be seated at any restaurant; "nearly one-third of the consumers purchase lunch on weekdays, the members of this demographic also feel time-pressed" (Hume, Restaurants and Institutions, 2008 p5). This marketplace seems to value time, work, money, and quick-meals. This group is a good market due to large amount of members who dine out frequently through the week.

This suggested target market mostly includes males who are white collared workers between the ages of 41 and 65; they are mostly married with children and typically live in suburban areas, however work in urban areas. This segmented group is a great target market due to its growing numbers in corporate work fields. Therefore, since the quantity of white collar workers has increased, so have the amounts of lunch breaks that can be catered to by Quizno's. In accordance with a report from america General Accounting Office, the workforce is increasing with elderly workers. In this is reported a 19 percent increase in white collar workers that are between the ages of 55 and 77. These numbers were calculated for the entire year of 2008 (GAO projections 2008). The report also illustrates the median salaries of white collar workers who are between 55 and 74. More specifically, the report says that a large amount of white collar workers, between 55 and 64, are in executive or administrative positions, earning over 50,000 dollars per year. This is one target market that Quizno's should think about due to its growing size. Another report from the Pew Research Center illustrates, in a series of charts that the percentage of males, who are between the ages of 40 and 60, are generally in professional or executive positions. The report describes many of these individuals as being married having an average of two children; about 45 percent of the individuals have a ranging salary of 50,000 to 100,000 (Pew Research Center, p.68. 2009). The reason this market might be a great choice is because of the available financial resources these individuals hold. Another major reason for this target market choice is due to TIVO. From the results of the focus group that was conducted, the older members of the group admitted to fast forwarding through commercials. With the TIVO feature, commercial spots are increasingly being missed and un-heard by older middle income workers. In the focus group, most of the older members had never even seen a Quizno's commercial; yet, they're familiar with the restaurant however, not its specials. The goal is to reach out to the more affluent middle income male workers because they are in a position to afford commercial filtered television; thus, decreasing the number of commercial viewership. Therefore, it's important to heavily target the forex market in a fresh and innovative manner. To aid this is Stephen Baker, from Business Week, who reports, "Approximately 6.5 million TiVo-like devices are currently used in the U.S. And 70% of these are routinely used for commercial avoidance; the devices are threatening to create the $60-billion-a-year TV advertising business to its knees" (Business Week, p 1). Therefore, the Elder market segment is definitely the main focus for the enhanced Quizno's marketing strategy.

Not only is advertising necessary for Quizno's, more attractive and tighter advertisements are essential. Subway is Quizno's leading competitor and is having much success. Subway has advertisements that range between jingles, to funny skits, to special meal deals. In contrast, Quizno's may be the second leading sub dealer; therefore, it is necessary for Quizno's to maintain with Subway on a continuing basis. It is vital for Quizno's to focus on its consumers by way of a mix of advertising forms. These forms include image advertising, and national advertising,. With image advertising, Quizno's could have the opportunity to transform its image because the second leading sub provider. In accordance with articles from the Microsoft Corporation titled "Advertising," image advertising gives a product a personality that's unique, appealing, and appropriate so that the consumer would want to choose it over similar products that may match the same need" (Microsoft 2009 p. 9). National Advertising is completely necessary for Quizno's to continue with so that consumers are continuously reminded of Quizno's; thus, fervently competing with Subways advertising approaches. The importance of the national advertising approach involves informing the nation about Quizno's its image, and its products on a continuing basis. The purpose because of this continued national advertising approach would be to developing loyal consumers; thus, having them choose Quizno's over its competitors. In line with the Microsoft Corporation article, "national advertising tries to build consumer loyalty to a product or service." (Microsoft 2009 p. 2). Gaining loyal customers is the objective in utilizing the national advertising approach.

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