Quizno’s is the second leading sub-store business today; Subway is the first leading store. Quiznos has other competitors such as Blimpies 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, Chief Marketing Officer for Quiznos, said: “Our main competition is Subway, which is an 800-pound gorilla” (York 2009). Subway began back in the 1960s, according to the official Subway page. The site reads that Subway was started in New York by Fred DeLuca and Dr. Peter Buck; Subway has been in business for over forty-three years (Subway, 2009).
Size and trend for the industry
According to the National Restaurant Association, the fast-service restaurant is very profitable; surplus revenue represents 47.5% (or $ 511 billion) of food dollars. The fast-paced service industry in the U.S.A. receives profits of up to 120 billion. The convenience of fast service has proven to be a significant success for this industry. According to the US Department of Agriculture, consumption and consumption of fast food is expected to increase six percent between 2000 and 2010, mainly due to new age families spending more time on activities outside the home. According to an affiliate of Dun & Bradstreet Company, Hoover Incorporated, many households prefer convenience over cooking, prompting fast-food restaurants to place their franchises in more unorthodox locations such as airports or gas stations. According to Hoover’s Inc. are fast food chains in the U.S. seeks to meet the increase in consumer spending by targeting international markets, especially in China (Advertising Age 2009).
The company is looking to be number one in the store. In its endeavor, Quiznos has made tremendous strides through its interesting, yet questionable, advertising techniques. In Quizno’s advertising techniques, they have created ads that are primarily targeted at men and women aged 18-34. According to an article by Mcclean Marketing Group titled “Quizno’s Mushroom Monkeys Revised – Buzz Is Not Enough”, the restaurants target audience is 18-34 year olds and its spots have been created with this audience in mind. Previously, Quizno’s had used a commercial ad created by Martin Agency that used a mushroom monkey as the spokesman. When the ad was created, the idea was to create eye-catching and interesting advertisements that would stand out from its competitors. An article in the Washington Post News Week describes the mushroom monkey in the ad as, “A small, furry creature, wearing a bowler hat, levitates while singing an ode to Quiznos below” (Stevenson 2005). Other previous marketing techniques used by Quizno’s included the Quiz Kidz program, “where a special menu was developed for the little ones and initially launched with a” kid-eat-free “promotion.” This article in the Business Network also mentions the purpose of the Quiz Kidz program, which was to attract parents who instead of a sub would enjoy a salad or pasta. Overall, the sponge monkey commercial was a success in grabbing viewers ’attention; However, it had drawn a large number of complaints from customers who thought the advertisement was unpleasant and tasteless. On the other hand, the Quiz Kidz program was a success because of its family-oriented approach. According to this Business Net article, the Quiz Kids program increased “evening and weekend business; it nearly tripled sales.” These are the best previous marketing activities presented by Quizno’s. (Edwards 2009 p. 2).
The current marketing activities that Quizno’s currently uses include delivery and catering services; Quiznos has also changed its menu to surpass Subway’s five-dollar foot-long deal. Thus, Quizno’s currently offers the four-dollar Torpedo sub, which claims to be a better taste sub at a lower price. In trying to promote the subprice at lower prices, Quizno’s has taken the sexually suggestive approach in its current commercials. Advertising for the Torpedo sub was created by the advertising agency Nitro. The commercial ad is focused on the Torpedo sub; In the commercial, however, an actor and a voice over are used; the actress and voice over both say sexually suggestive phrases like “Put it in me” and “Say it Sexy.” This commercial has also attracted attention for Quiznos, but it has also attracted many complaints. (Ehrke 2009)
In addition to the breathtaking commercials and lower prices, Quizno’s has developed and implemented the “Million Sub Giveaway.” In this tactic, Quizno’s offers free subscriptions to customers who agree to share personal information; mainly their email addresses. According to an “Advertising Age” article titled “Quizno’s Throwing Subway Curve with Sexy $ 4 Foot Length,” “Quizno’s Offered a Million Sub Giveaway,” which is an online effort that e-mailed a coupon to the first millions of customers to provide their names and email addresses. “These marketing activities are quite new to the public and continue to be promoted at national and international level (York 2009 p. 7).
According to the Advertising Age, in 2008, Quizno spent $ 90 million on advertising through the Nitro Group, with total profits / revenue of an estimated $ 1.9 billion. In contrast, Quizno’s competitor spent over $ 300 million on ads (York, 2009 p. 10).
Franchising at Quizno’s. According to the Quiznos internet site, certain Qu Critos criteria must be met to franchise a Quiznos. To purchase a Quiznos franchise, you must have a credit rating and a net worth of $ 125,000. As part of your net worth, you need $ 70,000 in liquid assets such as cash or shares that you can use to invest in touring restaurant franchises. Net worth is defined as your total assets; so it is cash, stocks, homes, cars, leisure vehicles, businesses, etc. minus your total debt (Quizno’s website 2009).
Citing Quizno’s website, “You can have between three and six employees working at one time. You may have 15 total employees on your payroll if you use part-time employees to work on different shifts.” The number of hours spent also depends on the owner’s preferences, such as running the franchise independently or hiring a manager to oversee the stores daily affairs (Quizno’s website 2009).
Quiznos has many good qualities as a business, three of its current strengths are the $ 4 Toasty Torpedo, the commercials are very memorable and Quiznos delivers. Quiznos toasty four-dollar torpedo is cheaper than Subway Five Dollar Footlong. In today’s economy, everyone is looking for a cheaper lunch, and Toasty Torpedo is the better buy. Quiznos advertising over the last few years has been very memorable; they contained a memorable message and recently came out with an advertisement that is getting a lot of attention. Another strength of Quiznos is its delivery service, Subway and other fast food restaurants have not yet started delivering, so Quiznos pioneering fast food delivery. Another strength that benefits Quiznos is its delivery service. Currently, participating franchises offer the services during typical lunch hours. Unlike Subway, Quizno’s personal and accommodating orders deliver to customers, with a base fee and delivery fee. Choosing the option for group travel and the time you want the order delivered are also offered. These benefit from Quizno’s because they have multiple franchises that provide the delivery service. This also helps the company because of the impact the economy has had on fuel prices. Rebecca Steinfort, Quizno’s senior vice president for delivery and catering, explains: “We have seen a great response, even though we have not advertised.
Quiznos Toasty Torpedo with four dollars is also cheaper than Subway Five Dollar Footlong. For $ 4, customers can buy a tasty torpedo sandwich before tax. In comparison, Subway’s $ 5 foot length costs $ 5 before taxes (Green Eggs Marketing, 2008, sections 1-2). Quizno’s benefits because the low price of sandwiches can encourage customers to add their meals by adding a bag of chips or a soda. These sites are at low prices and the total cost of the meal will not exceed $ 6 (Toasty Torpedo, 2008, Section 2).
One weakness that Quiznos has right now is that although it has a delivery service, it is very poorly advertised. The only way to discover Quizno’s delivery service is to visit the site; the site has very little information about the service. Customers need to be made aware of the delivery options. Another major weakness that Quizno has is its prices. According to President of Quiznos Subs Greg Macdonald, “Consumers love the sandwiches but found them too expensive” (Marketing Magazine p.3).
The next weakness Quiznos has is their advertising. For example, past commercial ads seemed a bit tasteless and unpleasant. An advertising film involving a mushroom monkey was fabled as disgusting and unnecessary. According to an article by Commercial Archives entitled “Quiznos Dusts off Baby Bob”, Quiznos advertisements have had negative ratings and perceptions despite the popularity of the ads. The article reports that “the ads give the idea that rats are in Quizno’s suburbs,” (Adland p. 1). Another view of a Quiznos ads was, “Baby Bob just isn’t very funny or interesting or anything” (Adland 1). These two commercials involved the yelling mushroom monkeys and the talking baby. As for the latest commercial advertising, there is a huge weakness in this add-on. The ad focuses on the new four-dollar torpedo sub. While the commercials focus heavily on sandwiches, its sexual suggestions are even heavier. To compete with Subway’s five dollars foot long, Quizno’s has created Toasty Torpedo with four dollars.
To promote this sandwich, Quizno’s has developed an advertisement that has been called inappropriate, offensive and tasteless. There is a talking oven that holds a conversation with a chef. The oven repeats comments like “Put it In Me.” According to the site onemillionmoms.com, an article titled, “Quiznos Are More Than ‘Toasty’; They’re in HOT WATER,” reports various mothers who are opposed to the new commercial advertising approach because of its potential influence on television viewers. The article quotes a mother as saying, “I find the gay innuendo tasteless, and it only serves to diminish the nature of your business. Young children may 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 an article titled “Quiznos’ $ 4 Torpedo vs. Subway’s $ 5 feet long” from “Orange County News Source”, consumers have said “I couldn’t believe how the mixed sandwiches tasted and how dry the bread was. I was really disappointed “(Luda 2009). Toasty Torpedo is all reported to look like a completely different sandwich compared to the one shown on television. It is said that sandwiches do not even look closely to what is shown in the Toasty Torpedo commercial (Orange County News Source, p. 3) Quiznos has been reported to have another weakness, Quiznos has a malfunctioning problem with the Million Sub Giveaway special, allowing consumers to share their names and email addresses in exchange for coupons on Quiznos Restaurants Although successful in collecting consumer data, it had a few flaws, and the giveaway reported that consumers never received their coupons, others were unable to print coupons, some Quiznos franchises even turned away coupons (Advertising Age 2p).
A great opportunity for Quiznos is to carry out international expansion. Quizno’s currently has over 500 restaurants in over 21 countries. If Quizno’s opened more restaurants in other countries, the company could continue to expand more and reach a larger group of customers.
Currently, Quizno’s biggest threat is Subway. Subway has launched the five dollar business on its own sandwich; In contrast, Quizno’s only offers its four-dollar sub-deal on select subs, which are Toasty Torpedo subs. In addition to the sandwich deals provided by the subway, they have also launched a side kick deal. In this case, when a consumer buys a five-dollar sandwich from the subway, they can choose from different side orders for just one dollar. Page orders include cookies; apples and a 20-ounce drink.
Another big threat to Quiznos right now is the commercials they run to promote Toasty Torpedo. Although it is a memorable commercial, it can cause some problems. The Toasty Torpedo commercial uses many sexual innuendos and potential gay suggestions that could potentially cause various customer groups to develop a negative attitude toward Quiznos. On the other hand its competitor Subway, you have developed several commercial ads that have a catchy jingle advertising its five dollar foot long subs. It is reported that this jingle is a huge success and has captured millions of attention.
According to an article from Review Atlas titled “Get Ready for Return of Advertising Jingles,” Subway’s “Five Dollar Foot-long” Advertising Contains Three Key Ingredients in a Successful Jingle – It’s Striking, Short and Tells Consumers About It company you want them to know. ”(Review Atlas p, 20). The threats that Subway presents to Quiznos are immense and seem insurmountable. Therefore, it is important for Quiznos to continue to compete in the race as a leading sandwich supplier
Using primarily a focus group to get an in-depth look at Quiznos, there was a huge amount of information. In addition to a focus group, the observation method was used to substantiate the findings that would come from the focus group. On a Wednesday, about 1 p.m. At 12:40, Quizno’s restaurant was packed with customers. There were consumers in each seat, and there was a line that extended behind the restaurant. In this observation, the sitting consumers ate in groups. Most of the consumers were dressed in collar shirts and nicely pressed dress pants. It seemed like everyone was in for a lunch break. All the customers bought a bottom that was toasted and oozed with cheese. However, there was one female customer who ate a salad and seemed quite pleased. All consumers had a fountain drink along with a bag of potato chips. As for the environment of the restaurant, it was somewhat noisy and crowded. In addition, the weather outside was unpleasant due to the rainfall. However, this did not prevent consumers from ordering a Quizno meal. Each consumer waited patiently for their meals, but they did not seem satisfied with the service. It seemed as if workers were moving too slowly according to the consumer’s facial expression. Also during the observation, consumer demographics were obvious, including gender, race and age. At lunchtime, there were more men than women throughout the restaurant, and it was documented that about 95 percent of consumers were Caucasian. The other 5 percent were from other races, ranging from African American, Asian and Hispanic. The general age range was 25-45.
Although the observational method was used, the primary research method was the focus group. The focus group consisted of eight individuals; 5 of them actually ate and enjoyed a Quiznos meal, and 2 two were in the restaurant with a friend waiting in line for a Quiznos sub. Consumers all agreed to join the focus group; they were all happy to do so. The age range of the focus group was 19 to 45. Focus group members were Caucasian-Americans. The majority of focus group members were white collar workers who had decided to eat at Quizno during their lunch breaks. The other half were students at Towson University. Members were asked over 30 questions including demographics, favorite Quiznos advertisements, favorite Quiznos merchandise and least favorite items. The questions were designed to understand the underlying feelings consumers have towards the suggestive messages displayed in Quizno’s ads. However, with regard to asking questions relevant to those advertisements, there were a number of different answers.
Within the focus group, most of them responded “I just drive past the commercials on my TIVO, (an interactive TV application), so I’ve never even seen a Quiznos commercial.” Others expressed which advertisements stood out most to them and which advertisements were ineffective and offensive. The responses ranged from “the commercials were funny;” to “Quizno’s commercials are gross;” to “I’ve never seen any of their commercials to be honest,” to “The commercials made me hungry for the subway.” A focus group member even replied, “Quiznos are McDonald’s of subs, it’s sick, they’re both terrible!” Each question was addressed to each member and each member answered equally. From this focus group, the underlying feelings, opinions and feelings about Quiznos were discovered, as well as their feelings about Subway. Consumers expressed personal preferences regarding Quizno’s commercial advertising and suggested ways to improve it. The ultimate findings of this focus group were the low efficiency of Quiznos advertising methods; primarily its TV commercials.
The reason for using the focus group was to get in-depth and personal information from actual Quiznos customers. Another reason to use this approach was to get actual responses to recognize the short comings of Toasty Torpedo TV commercials and other advertising approaches. This approach was also effective because it enabled personal interactions with customers; the focus group also gave consumers the opportunity to feel comfortable and willing to open up. A study was not used in the research because it would not exhibit the truthful feelings consumers have towards Quiznos. In a focus group, a firsthand response will be given true and open.
A personal conversation was not used in this research because there are so many different opinions regarding Quiznos and its commercial ads. A focus group would show the different opinions on a more detailed and emotional level. Ultimately, the interview will limit the results to a perspective compared to a focus group. The results of a personal conversation would also be biased and lack a multidimensional response. The focus group has made a positive impact on the Marketing campaign, primarily by providing insight into why Quizno’s past advertising was ineffective. The results of the focus group will demonstrate the specific elements that can help in the effort to gain more customers, while recovering lost customers through improved advertising strategies.
The primary target group that is best for Quiznos to appeal to is the middle-class white collar segment. The middle class is actually the largest class in the United States, according to the Pew Research Center. The middle class is largely made up of married individuals with children, college students and college degrees. The Pew Research Center reports that 68 percent of middle-class members are homeowners. It is also reported that a large amount of middle-class members eat out several times a week; this audience is also described as healthy individuals. Furthermore, the middle class is also described at a geographical level. In this report, most middle-class individuals live in suburban and rural areas. About 54 percent of the middle class resides in suburbs, compared to the 40 percent who live in urban areas. According to the social analyzes and reference groups, the middle class tends to value education, news, home ownership and stability (Social analysis p. 13). According to Dr. L Robert Khols, the director of international programs at San Francisco State University, values middle-class Americans equality, prosperity, novelty, innovations, success and time. (Kohl’s, pp. 3-10). The middle class of the target group has a number of demographic, geographical and behavioral elements; However, the more affluent middle-class segments are crucial to finding the perfect target market for Quiznos.
18-24 year-olds represent 26.1 million of the U.S. population, with the highest number of this demographic living 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 with their parents either at school full time or not at school at all. In the United States, 62 percent of this population has a higher education with some college education, while 16 percent have no higher education or degree. Five fifty percent work full-time for low-income full-time jobs with a personal income of $ 60,000. Just over half of the individuals in this age group have never been married and currently have no children. According to the Journal of Advertising Research, “this generation of citizens is idealistic, socially conscious, individualistic, anti-corporate, speaking their minds and dressing as they please.” (Kapner, 1997). It is for these reasons that this particular segment is difficult to advertise. They do not succumb to the usual methods of advertising that have proven successful for other age groups (Wolburg, 2001). Those in this age group who are college students are also important because of the influence they have on the market. In number, they can affect others because of how quickly they adopt new products and how quickly they develop brand loyalties that will last long into adulthood (2001).
This target market consists of middle-class males who are between 25 and 39 years old. The wages in this market range from $ 35,000 to $ 50,000 per year. They are fresh in their careers; most know good health and value time when they make money. Most of the people in this market area are in a managerial position (Lexis-Nexis, Valios). To further support this is an article from Restaurants and Institutions. The article reads, “Middle-class consumers probably say that casual dining is their primary dining option.” It is also reported that this market eats at restaurants that reflect their social status. The article on restaurant and institutions read, “Middle-class consumers 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 these middle-class individuals have a range of household incomes, starting at $ 35,000 a year. To also illustrate the value of this target market in time is the article Restaurant and Institutions, which reads that most individuals in this middle class market are more than likely not to wait more than thirty minutes for a meal; nor will they wait the amount of time spent sitting in a restaurant; “almost a third of these consumers buy lunch on weekdays, the members of this demographic also feel time constrained” (Hume, Restaurants and Institutions, 2008 p5). This target market seems to value time, work, money and quick meals. This group is a large market because of the large number of members who often eat out during the week.
This proposed target market consists mostly of men who are white collars aged 41 to 65; they are mostly married to children and typically live in suburbs, but work in urban areas. This segmented group is a good target market due to the growing number of business work areas. As the number of white collar workers has increased, so has the amount of lunch breaks that Quiznos can accommodate. According to a report by the United States General Accounting Office, the workforce is increasing with older workers. In this, a 19 percent increase in white collar workers aged 55 to 77 was reported. These figures were calculated for the year 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 states that a large number of white collar workers, between the ages of 55 and 64, are in executive or administrative positions and earn over $ 50,000 per year. year. This is a target market that Quiznos should consider because of its growing size. Another report from the Pew Research Center illustrates in a number of charts that the percentage of men who are between 40 and 60 years of age tends to be in professional or executive positions. The report describes most of these individuals as being married to an average of two children; ca. Forty-five percent of these individuals have a variable salary of 50,000 to 100,000 (Pew Research Center, p. 68, 2009). The reason this market may be a good choice is due to the available financial resources that these individuals possess. Another major reason for this target market choice is due to TIVO. From the results of the focus group conducted, the older members of the group admitted fast forwarding through advertisements. With the TIVO feature, commercial sites are missed and heard by middle-aged workers. In the focus group, most of the older members had never even seen a Quiznos advertisement; yet, they are familiar with the restaurant but not its offerings. The goal is to reach out to the more affluent male workers because they can afford commercially filtered television; This reduces the amount of commercial viewership. Therefore, it is necessary to strongly target this market in a new and innovative way. In support of this is Business Baker’s Stephen Baker, who reports, “About 6.5 million TiVo-like devices are currently in use in the United States, and 70% of them are routinely used for commercial avoidance; $ 60 billion a year TV advertising on the knees ”(Business Week, p. 1), which is why the older market segment will be the main focus of the improved Quiznos marketing strategy.
Not only is it necessary to advertise Quiznos, more attractive and tighter advertisements are needed. Subway is Quizno’s leading competitor and has great success. Subway has ads ranging from jingles, fun sketches to special meals. In contrast, Quizno’s is the second leading sub-dealer; therefore it is necessary for Quiznos to keep up with Subway constantly. It is important for Quizno to target consumers through a combination of advertising forms. These forms include image advertising and national advertising. With image advertising, Quiznos will have the opportunity to transform its image as the second leading sub-provider. According to an article from Microsoft Corporation entitled “Advertising”, image advertising provides a product for a personality that is unique, appealing and appropriate, so that the consumer wants to choose it over similar products that may meet the same need “(Microsoft 2009 p. 9) .National Advertising is imperative for Quizno to continue to keep consumers constantly reminded of Quizno’s so that they compete deeply with Subways advertising methods. The importance of this national advertising method involves informing the nation of Quizno’s image The purpose of this continuing national advertising approach is to develop loyal consumers, thus making them choose Quiznos over their competitors. According to the Microsoft Corporation article, “national advertising seeks to create consumer loyalty to a product or service . “(Microsoft 2009 p. 2). Getting loyal customers is the goal of using the national advertising method.