Notes

Quizno's Sandwich Company
Quizno's may be the second leading sub shop company today; Subway may be the first leading shop. Quizno's has 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 an increase of than 30,000 restaurants in 87 countries." (Subway History 2009). get more info , the principle Marketing Officer for Quizno's said, "Our main competition is Subway, which is an 800-pound gorilla" (York 2009). Subway began back the 1960's, according to the Subway official site page. The website reads that, Subway was started in NY by Fred DeLuca and Dr. Peter Buck; Subway has been in business for over forty-three years (Subway, 2009).
Size and Trend of Industry

In line with 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 as high as 120 billion. The convenience of quick-service has proven to be a substantial success because of this industry. Based on 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 the home. According to an affiliate 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. In accordance with 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 company seeks to function as 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 have created ads that are targeted primarily to individuals between the ages of 18-34 years of age. 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 own spots are created with this audience in mind. Before, Quizno's had used a commercial ad, created by the Martin Agency, that used a sponge monkey because the spokes person. When the ad was created, the idea was to create a watch catching and interesting commercial that could stick 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 used by Quizno's included the Quiz Kidz program, "when a special menu was developed for the little ones and initially launched with a "kids-eat-free" promotion." ECOMMERCE Network article also mentions the objective of the Quiz Kidz program, which was to attract parents who would, instead of a sub, like a salad or pasta. Overall, the sponge monkey commercial was a success in grabbing the eye of viewers; however, it had used a vast amount of complaints from customers who felt the commercial was unpleasant and tasteless. However, the Quiz Kidz program was successful 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 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 has also altered its menu to surpass Subway's five dollar foot-long deal. In doing so, Quizno's is currently offering the four dollar Torpedo sub which claims to be always a better tasting sub for less price. In the attempt to promote the low 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 targeted on the Torpedo sub; however, in the industry an actor and a voice over can be 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 drawn up much attention for Quizno's however it has stirred up many complaints aswell. (Ehrke 2009)

As well as the captivating commercials and lower priced subs, Quizno's has developed and implemented the "Million Sub Giveaway." In this plan, Quizno's is offering free subs to customers who agree to share private 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 first million customers to provide their names and e-mail addresses." These marketing activities are fairly new to the public, and 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 an estimated $1.9 billion. In contrast Quizno's competitor spent over 300 million dollars on ads (York, 2009 p. 10).

Franchising a Quizno's. According to the Quizno's internet homepage, to be able to franchise a Quizno's certain criteria must be met. To buy a Quizno's franchise, you will need a credit history 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 purchase tour restaurant 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 again to the Quizno's homepage, "You can have between three and six employees working at one time. You might have 15 total employees on your own 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 for example 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 have become memorable, and Quizno's delivers. The Quizno's four dollar Toasty Torpedo is cheaper than the Subway Five Dollar Footlong. In the current economy everyone is searching for a cheaper lunch and the Toasty Torpedo may be the better 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. Another strength of Quizno's is its delivery service, Subway along with 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 enough time you desire the order delivered, are also offered. These benefit Quizno's because they have more franchises that provide the delivery service. Also, this can help the company because of 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've 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. 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 add to their meals by adding a bag of chips or perhaps 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 though it includes a delivery service it is very poorly advertised. The only way to find Quizno's delivery service is to visit the website; on the website there is very little information regarding the service. Customers should be made alert to the delivery opportunities. Another major weakness that Quizno's has is its prices. In accordance with 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 bit 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 is reported in this article that, "the ads supply the idea that rats are in Quizno's subs," (Adland p 1). Another perception of a Quizno's ads was," Baby Bob seriously 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, there is 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 created the four dollar Toasty Torpedo.

To promote 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 for example "Put it In Me." According to 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 contrary to the new commercial advertising approach because of its potential affect on television viewers. This article quotes one mother as saying, "I find the homosexual innuendo tasteless, and it only serves to lessen the character of one's company. Young children might not start to 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 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 like a completely different sandwich when compared to one shown on television. It is said that the sandwich will not even look near 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 includes a malfunctioning issue with the Million Sub Giveaway special. In this, consumers received the opportunity to talk about their names and email addresses in exchange 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 far away 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; in contrast, Quizno's only offers its four dollar sub deal on select subs, which are the Toasty Torpedo subs. As well as 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 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 market 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 sets of customers to develop a poor attitude towards Quizno's. On other hand its competitor Subway, has developed multiple commercial ads which 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 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 also it tells consumers something concerning the company you need them to learn." (Review Atlas p, 20). The threats that Subway presents to Quizno's are immense 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 amount of information. And a focus group, the observation method was used to substantiate the findings that would result from the focus group. On a Wednesday, at approximately 12:40pm, The Quizno's restaurant was packed with costumers. There have been consumers in every seat, and there was a line that stretched to the trunk of the restaurant. In this observation, the consumers who have been seated were all eating in groups. The majority of the consumers were dressed in collared shirts and neatly pressed dress pants. It appeared that everyone was on a lunch time break. All of the customers purchased a sub that has been toasted, and oozing with cheese. However, there is one female customer who was simply eating a salad, and were quite pleased. All the consumers had a fountain beverage plus a bag of potato chips. Are you aware that environment in the restaurant, it had been somewhat noisy and crowded. In addition, the weather outside was unpleasant due to rainfall. However, this didn't stop the consumers from ordering a Quizno's meal. Each consumer patiently waited for their meals, however, they didn't appear pleased with the service. It seemed as though the workers were moving too slow, in line with the consumer's facial expressions. Also through the observation, the demographics of the consumers were obvious, including, gender, race, and age. Through the lunch hour, there have been more men than woman throughout the entire restaurant, and it was documented that approximately 95 percent of the consumers were Caucasian. Another 5 percent were of other races that ranged from African American, Asian, and Hispanic. The general a long time was 25-45.
Though the 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 pal who was simply waiting in line for a Quizno's sub. The consumers all decided to participate in the focus group; each of them 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 his or her 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 designed 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 various answers.

Within the focus group, most of them replied "I just fast forward past the commercials on my TIVO, (An interactive television application), therefore i have never even seen a Quizno's commercial." Others expressed which commercials stood out to them 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 some 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, along with their feelings about Subway. Consumers expressed personal preferences in regards to Quizno's commercial advertising, and provided suggestions about how exactly 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 utilizing the focus group was to get in-depth and private information from actual Quizno's costumers. Another reason behind by 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 start. A survey was not used in the study because it would not exhibit the truthful 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 found in this research because you can find so many differing opinions when it comes to Quizno's and its own commercial ads. A focus group would display the varying opinions on a more detail and emotional level. Ultimately, the interview would limit the outcomes to one perspective, compared to a focus group. Also, the results from the personal interview would be biased and lack a multi-dimensional response. The focus group has positively affected the Advertising campaign, primarily by giving insight of why Quizno's past commercials were ineffective. The results from the focus group will demonstrate the specific elements that can assist in the effort to get more customers, while regaining lost customers through enhanced advertising strategies.

The primary target audience that's best for Quizno's to appeal to is the middle income white collar segment. The center class is actually the largest class in america, according to the Pew Research Center. The middle class is largely made up of married people with children, college students, and college grads. The Pew Research Center reports that 68 percent of middle class members are homeowners. It is also reported that a massive amount middle income 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 as well. 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 tends to 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 center class American also values equality, wealth, newness, innovations, success, and time. (Kohls, p.3-10). The middle class target audience has a selection of demographics, geographic, and behavioristic elements; however, the more affluent segments of the middle class are crucial to finding the perfect marketplace for Quizno's.

The 18-24 year-olds represent 26.1 million of the United States population, with the highest amounts of this demographic living 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 this age group lives aware of their parents either in school full time or not in school at all. In the U.S. 62 percent of the population have a high school diploma with some college education, while 16 percent haven't any 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. A little over 1 / 2 of the individuals in this age group have never been married, and now 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 advertise to. They don't succumb to the usual advertising methods that have shown to be successful for other age ranges (Wolburg, 2001). Those in this generation that are college students are also important because of the impact they have available in the market. In numbers they are able to influence others due to how quickly they adopt new products, and how quickly they develop brand loyalties that may last long up (2001).

This target market includes middle class males who are between the ages of 25 and 39. The salaries of the market ranges from 35,000 to 50,000 dollars a year. They are fresh in their careers; mostly in good health and value time because they do money. A lot of the individuals in this market area come in a managerial position (Lexis-Nexis, Valios). To further support this is an article from Restaurants and Institutions. The article reads, "Middle-class individuals are most likely to state that casual-dining restaurants are their primary dining-out choices." The forex market has also been reported to consume 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 state that their restaurant choices reflect their social status." This article says that these middle income individuals have a variety of household incomes starting at 35,000 dollars a year. To also illustrate this target markets value of time is the Restaurant and Institutions article, which reads that most individuals in this middle class market will more than likely not wait more than thirty minutes for meals; nor will they wait that timeframe 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 market appears to value time, work, money, and quick-meals. This group is an excellent market due to the large amount of members who dine out frequently through the week.

This suggested target market mostly includes males that are white collared workers between your ages of 41 and 65; they are mostly married with children and typically reside in suburban areas, however work in urban areas. This segmented group is a superb target market due to its growing numbers in corporate work fields. Therefore, since the level of white collar workers has increased, so have the levels of lunch breaks that may be catered to by Quizno's. According to a report from america General Accounting Office, the workforce is increasing with elderly workers. In this was reported a 19 percent increase in white collar workers who are between the ages of 55 and 77. These numbers were calculated for the 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 massive amount white collar workers, between 55 and 64, come in executive or administrative positions, earning over 50,000 dollars a year. This is one marketplace that Quizno's should consider due to its growing size. Another report from the Pew Research Center illustrates, in some charts that the percentage of males, that are between the ages of 40 and 60, are generally in professional or executive positions. The report describes many of these individuals to be married having an average of two children; about 45 percent of the 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 because of the available financial resources that these individuals hold. Another major reason behind this marketplace choice is due to TIVO. From the results of the focus group that has been 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 income workers. In the focus group, a lot of the older members had never even seen a Quizno's commercial; yet, they are acquainted with the restaurant however, not its specials. The goal is to get in touch with 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 is necessary to heavily target the forex market in a fresh and innovative manner. To support that is Stephen Baker, from Business 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 $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 merely is advertising essential 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 from jingles, to funny skits, to special meal deals. In contrast, Quizno's may be the second leading sub dealer; therefore, it's important for Quizno's to keep up with Subway on a continuing basis. It is crucial for Quizno's to target its consumers by way of a combination of advertising forms. These forms include image advertising, and national advertising,. With image advertising, Quizno's will 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 provides product a personality that is unique, appealing, and appropriate in order that 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 consumers are continuously reminded of Quizno's; thus, fervently competing with Subways advertising approaches. The importance of this 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 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 is the objective in using the national advertising approach.

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