--Restaurant Week Ny of Quizno's Sandwich business--
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Quizno's Sandwich business
Quizno's is the second leading sub shop firm today; Subway is the first leading shop. Quizno's does have other competitors such as Blimpie's and Jerry's Subs; however, Subway is Quizno's traditional 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, which is an 800-pound gorilla" (York 2009). Subway began back in the 1960's, agreeing to the Subway legal site page. The site reads that, Subway was started in New York by Fred DeLuca and Dr. Peter Buck; Subway has been in firm for over forty-three years (Subway, 2009).
Size and Trend of Industry
Quizno's Sandwich business
According to the National bistro Association, the quick-service bistro commerce is very profitable; the profit revenues rehearse 47.5% (or 1 billion) of the food dollar. The quick service commerce in the U.S. Receives profits of up to 120 billion. The convenience of quick-service has proven to be a great success for this industry. agreeing to the United States agency of Agriculture, in the middle of 2000 and 2010, the consumption and spending on fast food is expected to growth six percent mainly because of the new-age families that spend more time engaging in activities surface of the home. agreeing to an affiliate of the Dun & Bradstreet Company, Hoover Incorporated, many households favor convenience over cooking, which prompts quick-service restaurants to place their franchises in more unorthodox locations such as inside airports or gas stations. agreeing to Hoover's Inc., fast-food chains in the U.S. Are looking to accommodate the growth in consumer spending by targeting international markets, particularly in China (Advertising Age 2009).
The firm seeks to be the whole one sub shop choice. In its endeavor Quizno's has made great strengthen through its interesting, yet questionable advertising techniques. In Quizno's advertising techniques, they have created ads that are targeted primarily to men and women in the middle of the ages of 18-34 years of age. agreeing to an narrative from the Mcclean Marketing Group titled "Quiznos sponge monkeys revisited - Buzz isn't enough," the restaurants' target audience is 18-34 year olds and its spots are created with this audience in mind. In the past, Quizno's had used a commercial ad, created by the Martin Agency, which used a sponge monkey as the spokes person. When the ad was created, the idea was to originate an eye catching and engaging commercial that would stand out from its competitors. In a Washington Post News Week article, the sponge monkey in the commercial is described as, "A small, furry creature, wearing a bowler hat, levitates as he sings an ode to Quizno's subs" (Stevenson 2005). Other past marketing techniques used by Quizno's included the Quiz Kidz program, "in which a extra menu was developed for the tiny ones and initially launched with a "kids-eat-free" promotion." This firm Network narrative also mentions the purpose of the Quiz Kidz program, which was to attract parents who would, instead of a sub, enjoy a salad or pasta. Overall, the sponge monkey commercial was a success in grabbing the concentration of viewers; however, it had drawn in a vast whole of complaints from customers who felt the commercial was unpleasant and tasteless. On the other hand, the Quiz Kidz agenda was a success due to its family oriented approach. agreeing to this firm Net article, the Quiz Kids agenda increased "evening and weekend business, it nearly tripled sales." These are the major past marketing activities that 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 has also altered its menu to surpass Subway's five dollar foot-long deal. In doing so, Quizno's is currently contribution the four dollar Torpedo sub which claims to be a good tasting sub for a lower price. In the endeavor to promote the lower priced sub, Quizno's has taken the sexually suggestive advent in its current commercial ads. Advertising for the Torpedo sub was created by the advertising agency Nitro. The commercial ad is focused 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, "Put it in me," and "Say it Sexy." This commercial has also drawn up much concentration for Quizno's however it has stirred up many complaints as well. (Ehrke 2009)
In increasing to the engaging commercials and lower priced subs, Quizno's has developed and implemented the "Million Sub Giveaway." In this tactic, Quizno's is contribution free subs to customers who agree to share personal information; mainly their email addresses. agreeing to an "Advertising Age" narrative titled, "Quizno's throws Subway curve with Sexy 4-dollar foot-long," "Quizno's offered a "Million Sub Giveaway," "which is an online endeavor that e-mailed a coupon to the first million customers to give their names and e-mail addresses." These marketing activities are fairly new to the public, and are lasting to be promoted on national and international levels (York 2009 p. 7).
According to Advertising Age, in 2008 Quizno's spent million on advertising via the Nitro Group, with the total profit/revenue at an estimated .9 billion. In discrepancy Quizno's competitor spent over 300 million dollars on ads (York, 2009 p. 10).
Franchising a Quizno's. agreeing to the Quizno's internet homepage, in order to franchise a Quizno's safe bet criteria must be met. To buy a Quizno's franchise, you need a reputation score and a net worth of 5,000. As a part of your net worth, you need ,000 in liquid assets like cash or stocks which you can use to invest in tour bistro franchise opportunities. Net worth is defined as your total assets; so that's cash, stocks, homes, cars, recreational vehicles, businesses, as so on, less your total debt (Quizno's Homepage 2009).
Referring back to the Quizno's homepage, "You can have in the middle of three and six employees working at one time. You might have 15 total employees on your payroll if you use part-time employees to work on dissimilar shifts." Also, the whole of hours spent depends on the owner's preferences, such as operating the franchise independently, or hiring a boss to oversee the market day-to-day affairs (Quizno's Homepage 2009).
Quizno's has many good qualities as a company, three of its current strengths are the four dollar Toasty Torpedo, the commercials are very memorable, and Quizno's delivers. The Quizno's four dollar Toasty Torpedo is cheaper than the Subway Five Dollar Footlong. In today's cheaper everybody is looking for a cheaper lunch and the Toasty Torpedo is the good buy. The Quizno's commercials over the last few years have been very memorable; they contained a memorable message and recently came out with a commercial that is getting a lot of attention. Other impel 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. Other impel that benefits Quizno's is its delivery service. Currently, participating franchises offer the 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 option of group ordering, and the time you would like the order delivered, are also offered. These advantage Quizno's because they have more franchises that furnish the delivery service. Also, this helps the firm because of the ensue the cheaper 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 before tax (Green Eggs Marketing, 2008, para.1-2). Quizno's benefits because the low price of the sandwich can encourage customers to add on to their meals by adding a bag of chips or a soda. Those side items are low priced, and the total cost of the meal will not exceed (Toasty Torpedo, 2008, para.2).
A weakness that Quizno's has right now is that although it has a delivery service it is very poorly advertised. The only way to examine Quizno's delivery service is to visit the website; on the site there is very tiny facts about the service. Customers should be made aware of the delivery opportunities. Other major weakness that Quizno's has is its prices. agreeing to President of Quizno's Subs Greg Macdonald, "Consumers love the sandwiches but found them too expensive" (Marketing Magazine p.3).
The next weakness that Quizno's holds is their advertising approaches. For instance, previous commercial ads seemed a bit coarse and un-appetizing. One commercial that involved a sponge monkey was raved as disgusting and unnecessary. agreeing to an narrative from the commercial Archives titled, "Quiznos Dusts off Baby Bob," Quizno's commercials have had negative ratings and perceptions, despite the ads' popularity. It is reported in the narrative that, "the ads give the idea that rats are in Quizno's subs," (Adland p 1). Other perception of a Quizno's ads was," Baby Bob just isn't very funny or engaging or anything" (Adland 1). These two commercials involved the shouting sponge monkeys, and the talking baby. As for the most recent commercial advertisement, there is a huge weakness in this add. The commercial focuses on the new four dollar torpedo sub. While the commercial does focus heavily on the sandwich, its sexual suggestions are even heavier. To compete with Subway's five dollar foot long, Quizno's has created the four dollar Toasty Torpedo.
To promote this sandwich, Quizno's has developed a commercial that has been called inappropriate, offensive, and tasteless. There is a talking oven that is having a conversation with a chef. The oven is repeating comments such as "Put it In Me." agreeing to the website onemillionmoms.com, an narrative titled, "Quizno's is more than 'Toasty'; they are in Hot Water," reports various mothers who are against the new commercial advertising advent because of its potential sway on television viewers. The narrative quotes one mother as saying, "I find the homosexual innuendo tasteless, and it only serves to lessen the character of your company. Young children may not see the implication, but teens and adults unquestionably do"
As for the actual Toasty Torpedo sandwich, the sandwich has been reported as gross, disappointing, and even bland. agreeing to an narrative titled, "Quiznos' Torpedo vs. Subway's 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 unquestionably disappointed" (Luda 2009). The Toasty Torpedo is all reported as looking like a completely dissimilar sandwich compared to the one shown on television. It is said that the sandwich does not even look close to what has been shown in the Toasty Torpedo commercial (Orange County News Source p 3). Quizno's has been reported as having Other weakness, Quizno's has a malfunctioning issue with the Million Sub Giveaway special. In this, consumers were given the chance to share their names and email addresses in exchange for coupons at Quizno's restaurants. Though the giveaway was flourishing at collecting consumer data, it had a few malfunctions. In the giveaway it was 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 for Quizno's is to undertake international expansion. Quizno's currently has over 500 restaurants in over 21 countries. If Quizno's opened more restaurants in other countries the firm could continue to strengthen 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 opt subs, which are the Toasty Torpedo subs. In increasing to the sandwich deals provided by subway, they have also launched a side kick deal. In this, when a consumer buys a five dollar sandwich from subway, they are able to pick from a range of side orders for only a dollar. The side orders include cookies; apples, and a 20 ounce beverage.
Another big threat to Quizno's right now is the commercials that they are running to promote the Toasty Torpedo. Although it is a memorable commercial, it may cause some problems. The Toasty Torpedo commercial uses many sexual innuendos and potential homosexual suggestions which could potentially cause dissimilar groups of customers to create a negative attitude towards Quizno's. On other hand its competitor Subway, has developed many commercial ads that have a catchy jingle that promotes its five dollar foot long subs. This jingle has been reported to be a huge success and has captured the concentration of millions.
According to an narrative from the enumerate Atlas titled, "Get Tuned up for the Return of Advertising Jingles," "Subway's "Five Dollar Foot-Long" commercial contains three key ingredients of a flourishing jingle. It's catchy, it's brief and it tells consumers something about the firm you want them to know." (Review Atlas p, 20). The threats that Subway presents to Quizno's are massive and appear to be unbeatable. Therefore, it is necessary for Quizno's to continue to compete in the race as a leading sandwich provider
Using primarily a focus group to gain an in-depth look at Quizno's, there was a vast whole of information. In increasing to a focus group, the observation method was used to substantiate the findings that would come from the focus group. On a Wednesday, at almost 12:40pm, The Quizno's bistro was packed with costumers. There were consumers in every seat, and there was a line that stretched to the back of the restaurant. In this observation, the consumers who were seated were all eating in groups. Most of the consumers were dressed in collared shirts and neatly pressed dress pants. It appeared that everybody was 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 along with a bag of potato chips. As for the environment in the restaurant, it was somewhat noisy and crowded. In addition, the weather surface was unpleasant because of the rainfall. However, this did not stop the consumers from ordering a Quizno's meal. Each consumer patiently waited for their meals, however, they did not appear pleased with the service. It seemed as if the workers were engaging too slow, agreeing to the consumer's facial expressions. Also during the observation, the demographics of the consumers were obvious, including, gender, race, and age. during the lunch hour, there were more men than woman throughout the entire restaurant, and it was documented that almost 95 percent of the consumers were Caucasian. The other 5 percent were of other races that ranged from African American, Asian, and Hispanic. The normal age range was 25-45.
Though the observation method was used, the traditional study method was the focus group. The focus group consisted of eight individuals; 5 of them were unquestionably eating and enjoying a Quizno's meal, and 2 two were in the bistro with a friend who was waiting in line for a Quizno's sub. The consumers all agreed 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. The majority 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, together with demographics, favorite Quizno's commercials, favorite Quizno's items, and least favorites items. The questions were designed to understand the basal feelings that consumers had towards the suggestive messages displayed in Quizno's advertisements. However, in regards to request questions relevant to said advertisements, there was a range of answers.
Within the focus group, the majority of them replied "I just fast forward past the commercials on my Tivo, (An interactive television application), so I have never even seen a Quizno's commercial." Others expressed which commercials stood out to them 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 to be honest," to "the commercials made me hungry for subway." One focus group member even replied, "Quizno's is the McDonald's of subs, it's sickening, they both are horrible!" Each interrogate was directed to each member and each member gave an equal response. From this focus group, the basal feelings, opinions, and emotions about Quizno's were discovered, as well as their feelings about Subway. Consumers expressed personal preferences in regards to Quizno's commercial advertising, and provided suggestions on how to heighten it. The extreme findings from this focus group was the low effectiveness of Quizno's advertising approaches; primarily its television commercials.
The conjecture for using the focus group was to gain in-depth and personal facts from actual Quizno's costumers. Other conjecture for using this advent was to gain actual responses to identify the short comings of the Toasty Torpedo television commercial, and other advertising approaches. This advent was also sufficient because it allowed personal interactions with costumers; the focus group also allowed consumers to feel comfortable and willing to open up. A examine was not used in the study because it would not exhibit the careful feelings that consumers had toward Quizno's. In a focus group, a firsthand response would be given truthfully and openly.
A personal interview was not used in this study because there are so many differing opinions in regards to Quizno's and its commercial ads. A focus group would display the varying opinions on a more information and emotional level. Ultimately, the interview would limit the results to one perspective, compared to a focus group. Also, the results from a personal interview would be biased and lack a multi-dimensional response. The focus group has unquestionably affected the Marketing campaign, primarily by providing understanding of why Quizno's past commercials were ineffective. The results from the focus group will demonstrate the exact elements that can support in the endeavor to gain more customers, while regaining lost customers through enhanced advertising strategies.
The traditional target audience that is best for Quizno's to motion to is the middle class white collar segment. The middle class is in fact the largest class in the United States, agreeing to the Pew study Center. The middle class is largely comprised of married individuals with children, college students, and college grads. The Pew study center reports that 68 percent of middle class members are homeowners. It is also reported that a large whole of middle class member eat out some times a week; this audience is enumerate as healthy individuals as well. Moreover, the middle class is described on a geographic level as well. In this report, most middle class individuals reside in suburban and rural areas. almost 54 percent of middle class members reside in suburban areas, compared to the 40 percent that live in urban areas. agreeing to the group determination and Reference Groups, the middle class tends to value education, news, homeownership, and stability (Social determination p. 13). agreeing to Dr. L Robert Khols, the director of International Programs at San Francisco State University, the middle class American also values equality, wealth, newness, innovations, success, and time. (Kohls, p.3-10). The middle class target audience has a range of demographics, geographic, and behavioristic elements; however, the more affluent segments of the middle class are crucial to looking the exquisite target store for Quizno's.
The 18-24 year-olds rehearse 26.1 million of the United States population, with the highest numbers of this demographic living in the Northeast. Whites still have the highest citizen 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 whether in school full time or not in school at all. In the U.S. 62 percent of this citizen have a high school diploma with some college education, while 16 percent have no high school diploma or degree. Fifty-five percent are working middle to low-income full-time jobs, with personal wage amounting to 60,000 dollars. A tiny over half of the individuals in this age group have never been married, and currently have no children. agreeing 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). It is because of these conjecture that this single segment is difficult to advertise to. They do not succumb to the usual advertising methods that have proven to be flourishing for other age groups (Wolburg, 2001). Those in this age group that are college students are also leading because of the impact they have in the market. In numbers they can sway others because of how speedily they adopt new products, and how speedily they create brand loyalties that will last long into adulthood (2001).
This target store consists of middle class males who are in the middle of the ages of 25 and 39. The salaries of this store ranges from 35,000 to 50,000 dollars a year. They are fresh in their careers; mostly in good condition and value time as they do money. Most of the individuals in this store area are in a managerial position (Lexis-Nexis, Valios). To additional sustain this is an narrative from Restaurants and Institutions. The narrative reads, "Middle-class consumers are most likely to say that casual-dining restaurants are their traditional dining-out choices." This store has also been reported to eat at restaurants that reflect their group status. The bistro and Institutions site narrative reads, "Middle-class consumers are more likely than lower-middle-class or upper-middle-class consumers to say that their bistro choices reflect their group status." The narrative says that these middle class individuals have a range of household incomes beginning at 35,000 dollars a year. To also by comparison this target markets value of time is the bistro and Institutions article, which reads that most individuals in this middle class store will more than likely not wait more than thirty minutes for a meal; nor will they wait that whole of time to be seated at any restaurant; "nearly one-third of these consumers purchase lunch on weekdays, the members of this demographic also feel time-pressed" (Hume, Restaurants and Institutions, 2008 p5). This target store appears to value time, work, money, and quick-meals. This group is a great store because of the large whole of members who dine out frequently during the week.
This recommend target store mostly comprises of males who are white collared workers in the middle of 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 good target store due to its growing numbers in corporate work fields. Therefore, since the whole of white collar workers has increased, so have the amounts of lunch breaks that can be catered to by Quizno's. agreeing to a narrative from the United States normal Accounting Office, the workforce is increasing with elderly workers. In this was reported a 19 percent growth in white collar workers who are in the middle of the ages of 55 and 77. These numbers were calculated for the year of 2008 (Gao projections 2008). The narrative also illustrates the midpoint salaries of white collar workers who are in the middle of 55 and 74. More specifically, the narrative says that a large whole of white collar workers, in the middle of 55 and 64, are in executive or executive positions, earning over 50,000 dollars a year. This is one target store that Quizno's should think due to its growing size. Other narrative from the Pew study center illustrates, in a series of charts that the ration of males, who are in the middle of the ages of 40 and 60, tend to be in pro or executive positions. The narrative describes most of these individuals as being married with an midpoint of two children; about 45 percent of these individuals have a fluctuating wages of 50,000 to 100,000 (Pew study Center, p.68. 2009). The conjecture this store may be a great option is due to the ready financial resources that these individuals hold. Other major conjecture for this target store option 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 being missed and un-heard by older middle class workers. In the focus group, most of the older members had never even seen a Quizno's commercial; yet, they are familiar with the bistro but not its specials. The goal is to reach out to the more affluent middle class male workers because they are able to afford commercial filtered television; thus, decreasing the whole of commercial viewership. Therefore, it is necessary to heavily target this store in a new and innovative manner. To sustain this is Stephen Baker, from firm Week, who reports, "Approximately 6.5 million TiVo-like devices are currently in use in the U.S. And 70% of them are routinely used for commercial avoidance; the devices are threatening to bring the -billion-a-year Tv advertising firm to its knees" (Business Week, p 1). Therefore, the Elder store segment will be the main focus for the enhanced Quizno's marketing strategy.
Not only is advertising necessary for Quizno's, more engaging and tighter advertisements are needed. Subway is Quizno's leading competitor and is having much success. Subway has advertisements that range from jingles, to funny skits, to extra meal deals. In contrast, Quizno's is the second leading sub dealer; therefore, it is necessary for Quizno's to keep up with Subway on a constant basis. It is leading for Quizno's to target its consumers through a combination of advertising forms. These forms include image advertising, and national advertising,. With image advertising, Quizno's will have the chance to transform its image as the second leading sub provider. agreeing to an narrative from the Microsoft Corporation titled "Advertising," image advertising gives a product a personality that is unique, appealing, and suitable so that the consumer will want to pick it over similar products that might fulfill the same need" (Microsoft 2009 p. 9). National Advertising is unquestionably necessary for Quizno's to continue with so that consumers are continuously reminded of Quizno's; thus, fervently competitive with Subways advertising approaches. The significance of this national advertising advent involves informing the nation about Quizno's its image, and its products on a continuous basis. The purpose for this continued national advertising advent is to developing loyal consumers; thus, having them pick Quizno's over its competitors. agreeing to 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 using the national advertising approach.
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Quizno's Sandwich business.
