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 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 site reads that, Subway was were only available in New York by Fred DeLuca and Dr. Peter Buck; Subway has been around business for over forty-three years (Subway, 2009).
Size and Trend of Industry

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

The company 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 individuals between your ages of 18-34 years. According to articles from the Mcclean Marketing Group titled "Quiznos sponge monkeys revisited - Buzz isn't enough," the restaurants' market is 18-34 year olds and its spots are created with this particular audience in mind. Before, Quizno's had used a commercial ad, created by the Martin Agency, which used a sponge monkey because the spokes person. Once the ad was created, the theory was to create a watch catching and interesting commercial that could stand out from its competitors. In a Washington Post News Week article, the sponge monkey in the commercial is referred to as, "A little, furry creature, wearing a bowler hat, levitates as he sings an ode to Quizno's subs" (Stevenson 2005). Other past marketing techniques utilized by Quizno's included the Quiz Kidz program, "when a special menu originated for the little ones and initially launched with a "kids-eat-free" promotion." This Business Network article also mentions the purpose of the Quiz Kidz program, that 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. On the other hand, the Quiz Kidz program was a success due to 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 which were 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 has also altered its menu to surpass Subway's five dollar foot-long deal. In doing so, Quizno's happens to be offering the four dollar Torpedo sub which claims to be always a better tasting sub for less price. In the try 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 made by the advertising agency Nitro. The commercial ad is focused on the Torpedo sub; however, in the commercial an actor and a voice over can be 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)

In addition to the captivating commercials and lower priced subs, Quizno's is rolling out and implemented the "Million Sub Giveaway." In this plan, Quizno's offers free subs to customers who consent 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 so are continuing to be promoted on national and international levels (York 2009 p. 7).

According to Advertising Age, in 2008 Quizno's spent $90 million on advertising via the Nitro Group, with the full total profit/revenue at an estimated $1.9 billion. On the other hand 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 a 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 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 between three and six employees working at once. You might have 15 total employees on your payroll if you use part-time employees to focus on different shifts." Also, the quantity of hours spent depends upon the owner's preferences, such as operating the franchise independently, or hiring a manager to oversee the stores day-to-day affairs (Quizno's Homepage 2009).

Quizno's has many good qualities as a company, three of its current strengths will be the four dollar Toasty Torpedo, the commercials are very memorable, and Quizno's delivers. The Quizno's four dollar Toasty Torpedo is cheaper compared to the Subway Five Dollar Footlong. In today's economy everyone is searching for a cheaper lunch and the Toasty Torpedo is 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's getting a large amount of attention. Another strength of Quizno's is its delivery service, Subway and other fast food restaurants have not yet begun delivering, so Quizno's is pioneering the fast food delivery. Another strength that benefits Quizno's is its delivery service. Currently, participating franchises provide services during typical lunch hours. Unlike Subway, Quizno's delivers personal and catered orders to customers, with a base fee and delivery charge. Choosing Create a Powerful Infographic of group ordering, and the time you would like the order delivered, are also offered. These benefit Quizno's because they have more franchises offering the delivery service. Also, this helps 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 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. 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 with the addition of a bag of chips or perhaps a soda. Those side items are reasonably priced, and the full total cost of the meal won't 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 would be to visit the website; on the site there is hardly any information regarding the service. Customers should be made alert to the delivery opportunities. Another major weakness that Quizno's has is its prices. According to President of Quizno's Subs Greg Macdonald, "Consumers love the sandwiches but found them very costly" (Marketing Magazine p.3).

The next weakness that Quizno's holds is their advertising approaches. For instance, previous commercial ads seemed a little 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 have had negative ratings and perceptions, despite the ads' popularity. It really is reported in this article that, "the ads give the idea that rats come 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. Are you aware that latest commercial advertisement, there is a huge weakness in this add. The commercial targets the new four dollar torpedo sub. As 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 market this sandwich, Quizno's has developed a commercial that is 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." In line with the website onemillionmoms.com, articles titled, "Quizno's is more than 'Toasty'; they are in WARM WATER," reports various mothers who are contrary to the new commercial advertising approach due to its potential affect on television viewers. The article quotes one mother as saying, "I find the homosexual innuendo tasteless, and it only serves to lessen the character of your company. Young children 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 also 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 when compared to one shown on television. It is stated 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 were given 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 a few malfunctions. In the giveaway it had been 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 chance for Quizno's would be to undertake international expansion. Quizno's currently has over 500 restaurants in over 21 countries. If Quizno's opened more restaurants far away the company could continue to expand more and reach a more substantial group of customers.

Currently, Quizno's largest threat is Subway. Subway has launched the five dollar foot long deal on every one of its sandwiches; in contrast, Quizno's only offers its four dollar sub deal on select subs, which will be the Toasty Torpedo subs. As well as the sandwich deals supplied 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 a number of side orders for just a dollar. The medial side orders include cookies; apples, and a 20 ounce beverage.

Another big threat to Quizno's right now is the commercials they are running to promote the Toasty Torpedo. Though it is really a memorable commercial, it could cause some problems. The Toasty Torpedo commercial uses many sexual innuendos and potential homosexual suggestions which could potentially cause different groups of customers to develop a poor attitude towards Quizno's. On other hand its competitor Subway, has developed multiple commercial ads that have a catchy jingle that promotes its five dollar foot long subs. This jingle has been reported to become a huge success and contains captured the attention of millions.
According to 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 and it tells consumers something concerning the company you want them to learn." (Review Atlas p, 20). The threats that Subway presents to Quizno's are immense and appearance to be unbeatable. Therefore, it is necessary for Quizno's to keep to compete in the race as a leading sandwich provider

Using primarily a focus group to get an in-depth look at Quizno's, there was a vast amount of information. In addition to 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 filled with costumers. There have been consumers atlanta divorce attorneys 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. Almost all of the consumers were dressed up in collared shirts and neatly pressed dress pants. It appeared that everyone was on a lunch time break. Each 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 were quite pleased. All the consumers had a fountain beverage plus a bag of potato chips. As for the environment in the restaurant, it had been somewhat noisy and crowded. In addition, the weather outside was unpleasant due to 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 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. During 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. Another 5 percent were of other races that ranged from African American, Asian, and Hispanic. The overall age range was 25-45.
Although observation method was used, the principal research method was the focus group. The focus group contains eight individuals; 5 of them were actually eating and enjoying a Quizno's meal, and 2 two were in the restaurant with a friend who was 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 do so. 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 made a decision to eat at Quizno's because of 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 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 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 question was directed to each member and each member gave the same response. Out of this focus group, the underlying feelings, opinions, and emotions about Quizno's were discovered, and also their feelings about Subway. Consumers expressed personal preferences in regards to Quizno's commercial advertising, and provided suggestions on how to improve it. The ultimate findings from 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 private information from actual Quizno's costumers. Another reason behind by using this approach was to gain actual responses to recognize the short comings of the Toasty Torpedo television commercial, and other advertising approaches. This approach was also effective because it allowed personal interactions with costumers; the focus group also allowed consumers to feel comfortable and willing to open up. A survey had not been used in the research because it wouldn't normally exhibit the truthful feelings that consumers had toward Quizno's. In a focus group, a firsthand response will be given truthfully and openly.

A personal interview had not been found in this research because you can find so many differing opinions in regards to Quizno's and its commercial ads. A focus group would display the varying opinions on a far more detail and emotional level. Ultimately, the interview would limit the outcomes to one perspective, in comparison 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 Marketing campaign, primarily by giving insight of why Quizno's past commercials were ineffective. The results from the focus group will demonstrate the precise 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 the usa, in line with the Pew Research Center. The middle class is largely comprised 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 class member eat out several times a week; this audience is describe as healthy individuals aswell. 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. Approximately 54 percent of middle class members have a home in suburban areas, when compared to 40 percent that live in urban areas. Based on the Social Analysis and Reference Groups, the center class will 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 BAY AREA State University, the middle class American also values equality, wealth, newness, innovations, success, and time. (Kohls, p.3-10). The center class target audience 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 best 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. Significantly less than 3 percent of this age group lives at home with their parents either in school regular or not in school at all. In the U.S. 62 percent of this population have a higher school diploma with some college education, while 16 percent haven't any high school diploma or degree. Fifty-five percent are working middle to low-income full-time jobs, with personal earnings amounting to 60,000 dollars. A little over 1 / 2 of the individuals in this age group 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 as they please." (Kapner, 1997). For the reason that of these reason that particular segment is difficult to advertise to. They don't succumb to the most common advertising methods that have proven to be successful for other age groups (Wolburg, 2001). Those in this generation that are university students are also important because of the impact they have on the market. In numbers they can influence others due to how quickly they adopt services, and how quickly they develop brand loyalties that will last long up (2001).

This target market consists of middle class males who are between your ages of 25 and 39. The salaries of the 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 help expand support this is an article from Restaurants and Institutions. This article reads, "Middle-class individuals are most likely to say 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 state 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 a lot of individuals in this middle class market will more than likely not wait more than thirty minutes for a meal; nor will they wait that amount of time 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 fantastic 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're mostly married with children and typically reside in suburban areas, however work in cities. This segmented group is a wonderful target market because of its growing numbers in corporate work fields. Therefore, because 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 that are between the ages of 55 and 77. These numbers were calculated for the entire year of 2008 (GAO projections 2008). The report also illustrates the median salaries of white collar workers who are between 55 and 74. More specifically, the report says that a large amount of white collar workers, between 55 and 64, are in executive or administrative positions, earning over 50,000 dollars per year. This is one target market that Quizno's should consider 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 your ages of 40 and 60, tend to be in professional or executive positions. The report describes most of these individuals as being married with an average of two children; about 45 percent of these individuals have a ranging salary of 50,000 to 100,000 (Pew Research Center, p.68. 2009). The reason why this market might be a great choice is as a result of available financial resources that these individuals hold. Another major reason for this target market choice is due to TIVO. From the outcomes 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 increasingly being missed and un-heard by older middle income workers. In the focus group, most of the older members had never even seen a Quizno's commercial; yet, they're familiar with the restaurant however, not its specials. The goal is to reach out to the more affluent middle income male workers because they're in a position to afford commercial filtered television; thus, decreasing the volume of commercial viewership. Therefore, it's important to heavily target the forex market in a new and innovative manner. To aid this 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 could be 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 is necessary for Quizno's to maintain with Subway on a constant basis. It is necessary for Quizno's to target its consumers by way of a mix of advertising forms. These forms include image advertising, and national advertising,. With image advertising, Quizno's could have the chance to transform its image because the second leading sub provider. According to articles from the Microsoft Corporation titled "Advertising," image advertising provides product a personality that is unique, appealing, and appropriate in order that the consumer would want to choose it over similar products that may fulfill the same need" (Microsoft 2009 p. 9). National Advertising is absolutely necessary for Quizno's to continue with so that individuals are continuously reminded of Quizno's; thus, fervently competing with Subways advertising approaches. The significance of the national advertising approach involves informing the country 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. Based on the Microsoft Corporation article, "national advertising tries to build consumer loyalty to something or service." (Microsoft 2009 p. 2). Gaining loyal customers is the objective in utilizing the national advertising approach.

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