Notes

Quizno's Sandwich Company
Quizno's is the second leading sub shop company 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 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 principle 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, 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 in 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 food 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 because of this industry. According to the USA 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 place 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. are looking to accommodate the increase in consumer spending by targeting international markets, particularly in China (Advertising Age 2009).

Presenting Business Plans seeks to be the number 1 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 will have created ads which are targeted primarily to women and men between your ages of 18-34 years of age. According to articles 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, that used a sponge monkey as the spokes person. When the ad was created, the theory was to create an eye catching and interesting commercial that would stick 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 utilized by Quizno's included the Quiz Kidz program, "in which a special menu originated for the little ones and initially launched with a "kids-eat-free" promotion." ECOMMERCE Network article also mentions the purpose of the Quiz Kidz program, which was to attract parents who, rather than a sub, enjoy a salad or pasta. Overall, the sponge monkey commercial was a success in grabbing the eye of viewers; however, it had drawn in a vast number of complaints from customers who felt the commercial was unpleasant and tasteless. On the other hand, the Quiz Kidz program was successful because of its family oriented approach. In accordance with ecommerce Net article, the Quiz Kids program 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 happens to be 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 is currently offering the four dollar Torpedo sub which claims to be a better tasting sub for a lower price. In the attempt to promote the lower priced sub, Quizno's has had 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 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 in addition has drawn up much attention for Quizno's however it has stirred up many complaints as well. (Ehrke 2009)

As well as the captivating commercials and more affordable subs, Quizno's is rolling out and implemented the "Million Sub Giveaway." In this tactic, Quizno's offers free subs to customers who agree to share personal information; mainly their email addresses. According to an "Advertising Age" article titled, "Quizno's throws Subway curve with Sexy 4-dollar foot-long," "Quizno's offered a "Million Sub Giveaway," "that is an online effort that e-mailed a coupon to the first million customers to provide their names and e-mail addresses." These marketing activities are fairly not used to the public, and so are continuing to be promoted on national and international levels (York 2009 p. 7).

In accordance with Advertising Age, in 2008 Quizno's spent $90 million on advertising via the Nitro Group, with the full 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, as a way to franchise a Quizno's certain criteria should be met. To get a Quizno's franchise, you will need a credit score and a net worth of $125,000. As part of your net worth, you will need $70,000 in liquid assets like cash or stocks used to invest in tour restaurant franchise opportunities. Net worth means 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 to the Quizno's homepage, "You might 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." Also, the amount of hours spent depends on 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 are 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 searching for a cheaper lunch and the Toasty Torpedo is the better buy. The Quizno's commercials during the last few years have already been very memorable; they contained a memorable message and recently came out with a commercial that is getting a large amount of attention. Another strength of Quizno's is its delivery service, Subway along with other fast food restaurants haven't yet begun delivering, so Quizno's is pioneering the junk food delivery. Another strength 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 choice of group ordering, and enough time you would like the order delivered, may also be offered. These benefit Quizno's since they have more franchises that provide the delivery service. Also, this helps the company due to the effect the economy has already established on fuel costs. Rebecca Steinfort, Quizno's senior vice-president of delivery and catering, explains: "We've seen an excellent response even though we have not been advertising.

The Quizno's four dollar Toasty Torpedo can be cheaper than the Subway Five Dollar Footlong. For 4 dollars, customers can buy a toasty torpedo sandwich before tax. Compared, 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 inexpensive, and the total cost of the meal won't exceed $6 (Toasty Torpedo, 2008, para.2).

A weakness that Quizno's has right now is that though it has a delivery service it is extremely poorly advertised. The only method to discover Quizno's delivery service would be to visit the website; on the website there is very little information regarding the service. Customers ought to be made aware of 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 very costly" (Marketing Magazine p.3).

Another weakness that Quizno's holds is their advertising approaches. For instance, previous commercial ads seemed a bit tasteless and un-appetizing. One commercial that involved a sponge monkey was raved as disgusting and unnecessary. In accordance with an article from the Commercial Archives titled, "Quiznos Dusts off Baby Bob," Quizno's commercials experienced negative ratings and perceptions, despite the ads' popularity. It really is reported in the article that, "the ads supply the idea that rats come 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. Are you aware that latest commercial advertisement, there is a huge weakness in this add. The commercial targets the brand 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's having a conversation with a chef. The oven is repeating comments such as for example "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 due to the potential affect on television viewers. This article quotes one mother as saying, "I discover the homosexual innuendo tasteless, and it only serves to reduce the character of one's company. Young children may not see the implication, but teens and adults certainly do"

Are you aware that 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 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 really was disappointed" (Luda 2009). The Toasty Torpedo is all reported as looking such as a completely different sandwich compared to the one shown on television. It is said that the sandwich will 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 another weakness, Quizno's has a malfunctioning issue with the Million Sub Giveaway special. In this, consumers received the opportunity to share their names and email addresses in trade for coupons at Quizno's restaurants. Although giveaway was successful at collecting consumer data, it had several malfunctions. In the giveaway it was reported that consumers never received their coupons, others cannot print the coupons out, some Quizno's franchises even turned the coupons away (Advertising Age 2p).

One big opportunity 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 company could continue 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 all of its sandwiches; on the other hand, Quizno's only offers its four dollar sub deal on select subs, which are the Toasty Torpedo subs. In addition to the sandwich deals provided by subway, they will have also launched a side kick deal. In this, when a consumer buys a five dollar sandwich from subway, they could choose from various 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 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 that could potentially cause different groups of customers to develop a negative attitude towards Quizno's. On other hand its competitor Subway, is rolling out multiple commercial ads which 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 articles 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 also it tells consumers something concerning 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 essential for Quizno's to continue to compete in the race as a respected sandwich provider

Using primarily a focus group to get an in-depth look at Quizno's, there was a vast level 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 packed with costumers. There were consumers in every seat, and there is 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 individuals were on a lunch break. All the customers purchased a sub that has been toasted, and oozing with cheese. However, there was one female customer who was simply eating a salad, and appeared to be quite pleased. All 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. In addition, the elements 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 because of their meals, however, they didn't appear happy with the service. It seemed as though the workers were moving too slow, based on 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.
Though the observation method was used, the principal research method was the focus group. The focus group contains eight individuals; 5 of these were actually eating and enjoying a Quizno's meal, and 2 two were in the restaurant with a pal who was simply waiting in line for a Quizno's sub. The consumers all agreed to take part in the focus group; they all were delighted to take action. The age selection 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. Another 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 made to understand the underlying feelings that consumers had towards the suggestive messages displayed in Quizno's advertisements. However, in regards to asking questions highly relevant to said advertisements, there was a number 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 to be honest," 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. Out of this focus group, the underlying feelings, opinions, and emotions about Quizno's were discovered, and their feelings about Subway. Consumers expressed personal preferences in regards to Quizno's commercial advertising, and provided suggestions about how to improve it. The ultimate findings out of this focus group was the low effectiveness of Quizno's advertising approaches; primarily its television commercials.

The reason for using the focus group was to gain in-depth and personal information from actual Quizno's costumers. Another reason for using this approach was to get actual responses to recognize the short comings of the Toasty Torpedo television commercial, and other advertising approaches. This process was also effective since it allowed personal interactions with costumers; the focus group also allowed consumers to feel comfortable and willing to open up. A survey was not used in the study 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 was not found in this research because you can find so many differing opinions in regards to Quizno's and its own commercial ads. A focus group would display the varying opinions on a far more detail and emotional level. Ultimately, the interview would limit the outcomes to one perspective, in comparison to a focus group. Also, the results from the personal interview will be biased and lack a multi-dimensional response. The focus group has positively affected the Marketing campaign, primarily by providing insight of why Quizno's past commercials were ineffective. The results from the focus group will demonstrate the specific elements that can help in the effort to get more customers, while regaining lost customers through enhanced advertising strategies.

The primary market that is best for Quizno's to interest is the middle income white collar segment. The center class is in fact the largest class in the United States, in line with the Pew Research Center. The center class is largely made up of married individuals with children, university students, and college grads. The Pew Research Center reports that 68 percent of middle income members are homeowners. It is also reported that a large amount of middle income member eat out many times weekly; 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 reside in suburban and rural areas. Approximately 54 percent of middle class 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 center class tends to value education, news, homeownership, and stability (Social Analysis p. 13). In accordance with 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 center class target audience has a variety of demographics, geographic, and behavioristic elements; however, the more affluent segments of the center class are crucial to locating the perfect target market for Quizno's.

The 18-24 year-olds represent 26.1 million of the United States population, with the highest numbers of this demographic surviving in the Northeast. Whites still have the best 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 the age group lives aware of 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 have no high school diploma or degree. Fifty-five percent will work middle to low-income full-time jobs, with personal earnings amounting to 60,000 dollars. Just a little 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 are idealistic, socially conscious, individualistic, anti-corporate, speak their minds and dress because they please." (Kapner, 1997). For the reason that of these reason that this particular segment is difficult to market to. They do not succumb to the most common advertising methods that have proven to be successful for other age ranges (Wolburg, 2001). Those in this generation that are university students are also important due to the impact they have available in the market. In numbers they can influence others because of how quickly they adopt services, and how quickly they develop brand loyalties that may last long up (2001).

This target market includes middle class males that are between your ages of 25 and 39. The salaries of this market ranges from 35,000 to 50,000 dollars per year. They are fresh in their careers; mostly in good health and value time as they do money. Most of the individuals in the forex market area come in a managerial position (Lexis-Nexis, Valios). To further support this is an article from Restaurants and Institutions. This article reads, "Middle-class consumers are most likely to state that casual-dining restaurants are their primary dining-out choices." The forex market in addition has been reported to consume at restaurants that reflect their social status. The Restaurant and Institutions site article reads, "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 that these middle class individuals have a variety 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 class market will probably not wait more than thirty minutes for a meal; 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 target market appears to value time, work, money, and quick-meals. This group is a wonderful market due to massive amount members who dine out frequently through the week.

This suggested target market mostly includes males that are white collared workers between the ages of 41 and 65; they're mostly married with children and typically live in suburban areas, however work in cities. This segmented group is an effective target market because of its growing numbers in corporate work fields. Therefore, since the level of white collar workers has increased, so have the levels of lunch breaks which might 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 who 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 that are between 55 and 74. More specifically, the report says a massive amount white collar workers, between 55 and 64, are in executive or administrative positions, earning over 50,000 dollars a year. This is one target market that Quizno's should think about because of 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, tend to be in professional or executive positions. The report describes most of these individuals to be married having an average of two children; about 45 percent of these people have a ranging salary of 50,000 to 100,000 (Pew Research Center, p.68. 2009). The reason this market can be a great choice is as a result of available financial resources that these individuals hold. Another major reason behind this marketplace choice is because of 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 class 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 target is to get in touch with the more affluent middle income male workers because they're able to afford commercial filtered television; thus, decreasing the quantity of commercial viewership. Therefore, it is necessary to heavily target this market in a fresh and innovative manner. To aid that is Stephen Baker, from Business Week, who reports, "Approximately 6.5 million TiVo-like devices are in use in the U.S. And 70% of them 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 online marketing strategy.

Not merely is advertising necessary for Quizno's, more appealing and tighter advertisements are essential. Subway is Quizno's leading competitor and is having much success. Subway has advertisements that range from 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 crucial for Quizno's to target its consumers through a mix 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. In accordance with articles from the Microsoft Corporation titled "Advertising," image advertising provides product a personality that's unique, appealing, and appropriate so the consumer will want to choose it over similar products that may match the same need" (Microsoft 2009 p. 9). National Advertising is absolutely necessary for Quizno's to keep with so that individuals are continuously reminded of Quizno's; thus, fervently competing with Subways advertising approaches. The importance of this national advertising approach involves informing the country about Quizno's its image, and its products on a continuing basis. The purpose for this continued national advertising approach is to developing loyal consumers; thus, having them choose Quizno's over its competitors. According to the Microsoft Corporation article, "national advertising tries to create consumer loyalty to something or service." (Microsoft 2009 p. 2). Gaining loyal customers may be the objective in using the national advertising approach.

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