Notes

Quizno's Sandwich Company
Quizno's may be the second leading sub shop company today; Subway is the first leading shop. Quizno's has other competitors such as for example 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). Rebecca Steinfort, the principle Marketing Officer for Quizno's said, "Our main competition is Subway, that is an 800-pound gorilla" (York 2009). Subway began back in the 1960's, according to the Subway official site page. The website 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

Based on 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 capability of quick-service has proven 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 due to the fact of the new-age families that save money time participating in activities outside 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. want to accommodate the increase 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 men and women 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. During the past, Quizno's had used a commercial ad, developed by the Martin Agency, that 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 would stick out from its competitors. In a Washington Post News Week article, the sponge monkey in the commercial is described 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, "in which a special menu was developed 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, enjoy a salad or pasta. Overall, the sponge monkey commercial was a success in grabbing the attention of viewers; however, it had drawn in 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. In accordance with 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 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 in addition has 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 a lesser 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 focused 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 in addition has 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 is rolling out and implemented the "Million Sub Giveaway." In this tactic, Quizno's offers free subs to customers who consent to share personal 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," "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 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 full 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. Based on 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 need a credit score 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 again to the Quizno's homepage, "You could have between three and six employees working at once. You may have 15 total employees on your own payroll if you are using part-time employees to work on different shifts." Also, the number 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 looking 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 arrived 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 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 the time you desire the order delivered, are also offered. These benefit Quizno's since they have more franchises that provide the delivery service. Also, this can help the company due to 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 purchase a toasty torpedo sandwich before tax. In comparison, Subway's five dollar footlong costs $5 before tax (Green Eggs Marketing, 2008, para.1-2). Quizno's benefits because the good deal of the sandwich can encourage customers to add to their meals with the addition of 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 at this time is that although it has a delivery service it is very poorly advertised. The only method to discover Quizno's delivery service would be to visit the website; on the website there is hardly any information about the service. Customers ought to 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 very costly" (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. In accordance with articles 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 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. Are you aware that latest commercial advertisement, there exists 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 compete with Subway's five dollar foot long, Quizno's has generated the four dollar Toasty Torpedo.

To market 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 for example "Put it In Me." In check here with the website onemillionmoms.com, articles titled, "Quizno's is a lot more than 'Toasty'; they're in HOT WATER," reports various mothers who 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, also it only serves to reduce the character of one's company. Young children may 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 compared to the one shown on television. It is said that the sandwich does 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 has 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 trade for coupons at Quizno's restaurants. Although giveaway was successful at collecting consumer data, it had a few 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 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 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 each 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. In addition to the sandwich deals provided 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 a range 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. Although it is really 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 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 eye 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 keep 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 would come 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 have been seated were all eating in groups. Almost all of the consumers were dressed in collared shirts and neatly pressed dress pants. It appeared that everyone was on a lunch break. Each of the customers purchased a sub that was toasted, and oozing with cheese. However, there is one female customer who was eating a salad, and appeared to be quite pleased. All of 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 elements outside was unpleasant due to rainfall. However, this did not stop the consumers from ordering a Quizno's meal. Each consumer patiently waited for his or her 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 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 through the entire 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 general a long time was 25-45.
Although observation method was used, the primary research method was the focus group. The focus group consisted of 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 waiting in line for a Quizno's sub. The consumers all decided 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. A lot of the focus group members were white collar workers who had decided to eat at Quizno's for his or her lunch breaks. The other 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 relevant to said advertisements, there is a number of answers.

Within the focus group, the majority of them replied "I simply fast forward past the commercials on my TIVO, (An interactive television application), so I haven't 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 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 question was directed to each member and each member gave the same response. From this focus group, the underlying 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 about 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 utilizing the focus group was to gain in-depth and private information from actual Quizno's costumers. Another reason for using this approach was to gain actual responses to identify the short comings of the Toasty Torpedo television commercial, along with other advertising approaches. This process was also effective because 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 will be given truthfully and openly.

A personal interview had not been found in this research because there are 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 results 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 Marketing campaign, primarily by providing 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 gain more customers, while regaining lost customers through enhanced advertising strategies.

The primary target audience that's best for Quizno's to interest is the middle income white collar segment. The middle class is actually the largest class in the usa, in line with the Pew Research Center. The middle class is largely made up of married people 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 class member eat out many times a week; this audience is describe as healthy individuals as well. Moreover, the middle class is described on a geographic level as well. In this report, most middle income individuals have a home in suburban and rural areas. Approximately 54 percent of middle income members reside 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 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 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 selection of demographics, geographic, and behavioristic elements; however, the more affluent segments of the center class are crucial to locating the perfect marketplace for Quizno's.

The 18-24 year-olds represent 26.1 million of the United States population, with the best numbers of this demographic surviving in the Northeast. Whites still have the highest population of citizens at 62 percent. Hispanics are second at 16 percent, Blacks are third at 13 percent, and Asians are last at 5 percent. Significantly less than 3 percent of this age group lives at home with 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 are working middle to low-income full-time jobs, with personal earnings amounting to 60,000 dollars. Just a little over 1 / 2 of the individuals in this generation haven't been married, and now have no children. In line with 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 market 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 college students are also important due to impact they have on the market. In numbers they are able to influence others because of how quickly they adopt services, and how quickly they develop brand loyalties which will last long into adulthood (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 within their careers; mostly in a healthy body 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. This article reads, "Middle-class individuals are most likely to say that casual-dining restaurants are their primary dining-out choices." This market in addition has been reported to eat 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." This article says that these middle income individuals have a range 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 a lot of individuals in this middle income 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 these consumers purchase lunch on weekdays, the members of the demographic also feel time-pressed" (Hume, Restaurants and Institutions, 2008 p5). This target market seems to value time, work, money, and quick-meals. This group is a wonderful market because of the large amount of members who dine out frequently through the week.

This suggested target market mostly comprises of males who are white collared workers between the ages of 41 and 65; they're mostly married with children and typically reside in suburban areas, however work in urban areas. Additional hints is an excellent target market because of its growing numbers in corporate work fields. Therefore, because the quantity of white collar workers has increased, so have the amounts of lunch breaks that can 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 was reported a 19 percent increase in white collar workers that are between your 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 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, 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 these individuals have a ranging salary of 50,000 to 100,000 (Pew Research Center, p.68. 2009). The reason this market might be a great choice is as a result of available financial resources these individuals hold. Another major reason for this target market choice is because of 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, a lot of the older members had never even seen a Quizno's commercial; yet, they are familiar with the restaurant however, not its specials. The target 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 amount of commercial viewership. Therefore, it's important to heavily target the forex market in a new and innovative manner. To support this is Stephen Baker, from Business Week, who reports, "Approximately 6.5 million TiVo-like devices are currently used in the U.S. And 70% of these are routinely useful 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 online marketing strategy.

Not merely is advertising essential 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. On the other hand, Quizno's may be the second leading sub dealer; therefore, it's important for Quizno's to keep up with Subway on a constant basis. It is crucial for Quizno's to focus on its consumers through a mix 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 an article from the Microsoft Corporation titled "Advertising," image advertising gives a product a personality that is unique, appealing, and appropriate in order that the consumer would want to choose it over similar products that may match the same need" (Microsoft 2009 p. 9). National Advertising is completely necessary for Quizno's to continue 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 nation about Quizno's its image, and its products on a continuous basis. The purpose for this continued national advertising approach would be 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 using the national advertising approach.

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