Notes

Quizno's Sandwich Company
Quizno's is the second leading sub shop company today; Subway may be 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 may be 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, that is an 800-pound gorilla" (York 2009). Subway began back the 1960's, in line with 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

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 meals 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 for this industry. According to the United States 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 spend more 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 place 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 business seeks to be the number one 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 people 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' target audience is 18-34 year olds and its own spots are created with this particular audience in mind. During 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 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 described as, "A small, furry creature, wearing a bowler hat, levitates as he sings an ode to Quizno's subs" (Stevenson 2005). Other past marketing techniques used by Quizno's included the Quiz Kidz program, "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 purpose of the Quiz Kidz program, that was to attract parents who would, 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 used a vast number of complaints from customers who felt the commercial was unpleasant and tasteless. However, the Quiz Kidz program was successful due to its family oriented approach. According to ecommerce Net article, the Quiz Kids program increased "evening and weekend business, it nearly tripled sales." They 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 this, Quizno's is currently offering the four dollar Torpedo sub which claims to be a better tasting sub for less price. In the attempt to promote the low priced sub, Quizno's has taken 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 nonetheless 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 plan, Quizno's is offering free subs to customers who consent to share private 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 initial 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).

In accordance with Advertising Age, in 2008 Quizno's spent $90 million on advertising via the Nitro Group, with the total profit/revenue at around $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, so that you can franchise a Quizno's certain criteria should be met. To buy a Quizno's franchise, you 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 which you can use 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 once. You may have 15 total employees on your payroll if you are using part-time employees to work on different shifts." Also, the number 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 an organization, 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 the current economy everyone is looking 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'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 the choice of group ordering, and the time you desire the order delivered, may also be offered. These benefit Quizno's since they have more franchises offering the delivery service. Also, this helps the company due to effect the economy has had on fuel costs. Rebecca Steinfort, Quizno's senior vice-president of delivery and catering, explains: "We've seen a great response even though we have not been advertising.

The Quizno's four dollar Toasty Torpedo can be cheaper compared to the Subway Five Dollar Footlong. For 4 dollars, customers can purchase 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 as the good deal of the sandwich can encourage customers to include to their meals with the addition of a bag of chips or a soda. Those side items are low 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 although it has a delivery service it is extremely poorly advertised. The only way to discover Quizno's delivery service would be to visit the website; on the site 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. According to 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 instance, 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 an article 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 really is reported in the 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 read more aware that latest commercial advertisement, you will find a huge weakness in this add. The commercial targets 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 created the four dollar Toasty Torpedo.

To market this sandwich, Quizno's has developed a commercial that is called inappropriate, offensive, and tasteless. You will find a talking oven that's having a conversation with a chef. The oven is repeating comments such as "Put it In Me." According to the website onemillionmoms.com, articles 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 due to the potential affect on television viewers. This article quotes one mother as saying, "I discover the homosexual innuendo tasteless, also it only serves to reduce the character of your company. Young children might not start to 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 was really disappointed" (Luda 2009). The Toasty Torpedo is all reported as looking just like 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 proven 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 share 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 had been reported that consumers never received their coupons, others could not print the coupons out, some Quizno's franchises even turned the coupons away (Advertising Age 2p).

One big chance of 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 steadily 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 every one 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 provided by subway, they have also launched a side kick deal. In this, when a consumer buys a five dollar sandwich from subway, they could choose from a range of 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 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 sets of customers to develop a poor attitude towards Quizno's. On other hand its competitor Subway, is rolling out 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 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 crucial for Quizno's to keep 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 is a vast level 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 were consumers in every seat, and there was a line that stretched to the trunk of the restaurant. In Create a Powerful Infographic , 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 individuals were on a lunch break. All the customers purchased a sub that was toasted, and oozing with cheese. However, there was check here who was simply eating a salad, and appeared to be quite pleased. All the consumers had a fountain beverage along with a bag of potato chips. Are you aware that environment in the restaurant, it was somewhat noisy and crowded. In addition, the elements outside was unpleasant because of the 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 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 overall 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 friend who was simply waiting in line for a Quizno's sub. The consumers all agreed to participate in the focus group; they all were delighted to take action. The age range of the focus group was 19 to 45. The focus group members were Caucasian-Americans. The majority of the focus group members were white collar workers who had decided to eat at Quizno's because of their 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 highly relevant to said advertisements, there was a variety of answers.

Within the focus group, the majority of them replied "I just fast forward at night commercials on my TIVO, (An interactive television application), therefore i have never 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 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, as well as 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 from this focus group was the reduced 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 recognize the short comings of the Toasty Torpedo television commercial, along with 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 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 had not been found in this research because there are so many differing opinions when it comes 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 results to one perspective, compared to a focus group. Also, the outcomes from a 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 outcomes 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 target audience that's best for Quizno's to interest is the middle class white collar segment. The middle class is actually the largest class in the United States, according to the Pew Research Center. The center class is largely made up of married individuals with children, college students, and college grads. The Pew Research Center reports that 68 percent of middle class members are homeowners. Additionally it is reported that a large amount of 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 aswell. In this report, most middle income 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 live in urban areas. Based on the Social Analysis and Reference Groups, the middle 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 includes a variety of demographics, geographic, and behavioristic elements; however, the more affluent segments of the center 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 numbers of this demographic living 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. Less than 3 percent of the 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 higher school diploma with some college education, while 16 percent have no high school diploma or degree. Fifty-five percent are working middle to low-income full-time jobs, with personal earnings amounting to 60,000 dollars. A little over half of the individuals in this age group haven't been married, and currently have no children. Based on 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 this particular segment is difficult to advertise to. They don't succumb to the usual advertising methods that have proven to be successful for other age groups (Wolburg, 2001). Those in this age group that are college students are also important due to impact they have available in the market. In numbers they are able to influence others due to how quickly they adopt services, and how quickly they develop brand loyalties that will last long into adulthood (2001).

This target market includes middle class males who are between your ages of 25 and 39. The salaries of this market ranges from 35,000 to 50,000 dollars a year. They are fresh within their careers; mostly in a healthy body and value time as they do money. The majority of the individuals in the forex market area are 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 has also been reported to eat at restaurants that reflect their social status. The Restaurant and Institutions site article reads, "Middle-class individuals are much 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 range of household incomes starting at 35,000 dollars a 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 meals; 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 marketplace appears to value time, work, money, and quick-meals. This group is a great market due to the large amount of members who dine out frequently during the week.

This suggested target market mostly comprises of males that are white collared workers between the ages of 41 and 65; they are mostly married with children and typically live in suburban areas, however work in urban areas. This segmented group is an effective 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 may 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 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, come in executive or administrative positions, earning over 50,000 dollars per year. This is one target market that Quizno's should think about 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 usually in professional or executive positions. The report describes many of these individuals to be married with an average of two children; about 45 percent of the individuals have a ranging salary of 50,000 to 100,000 (Pew Research Center, p.68. 2009). The reason this market may be a great choice is because of the available financial resources that these individuals hold. Another major reason for 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're 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're able 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 in use in the U.S. And 70% of these 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 will be the main focus for the enhanced Quizno's online marketing strategy.

Not merely is advertising necessary for Quizno's, more attractive and tighter advertisements are needed. Subway is Quizno's leading competitor and is having much success. Subway has advertisements that range between 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 vital 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 opportunity to transform its image as 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 will want to choose it over similar products that might 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 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 utilizing the national advertising approach.

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