Quiznos Subs Marketing Plan Term Paper
- Length: 10 pages
- Subject: Agriculture
- Type: Term Paper
- Paper: #76053833
Excerpt from Term Paper :
Quiznos Subs Marketing Plan
Quiznos is a fast food restaurants specializing in sandwiches. Quiznos operates in a highly competitive market and needs to market effectively to increase sales and market share. The following analysis will describe a marketing strategy for Quiznos. This will begin by looking at the current situation and trends. This will be followed by looking at the key issues for Quiznos, including strengths, weaknesses, threats, and opportunities. Based on this analysis, a marketing strategy with the objective of increasing the dinner market is recommended. The final sections will describe how this will be achieved by describing the marketing strategy, actions to be taken, and control.
Current Situation and Trends
The U.S. fast food market is around $150 billion annually (Euromonitor, 2005).
The U.S. fast food market is expected to increase by about 1.7% from 2004 to 2008, to reach $153 billion in 2008 (Euromonitor, 2005).
This slight increase in the market shows that the fast food market is mature, with little opportunity for overall growth.
Burger operations account for around half of all sales in the fast food market.
Burger sales have started to decline.
The fast food market is fragmented, with the top five companies making up around a third of the market.
The top five companies in the market are Wendy's, McDonalds, Yum! Brands (owners of KFC, Pizza Hut, and Taco Bell), Burger King, and Doctor's Associates Inc. (owners of Subway).
There is a rise in the popularity of healthy fast food alternatives.
The consumer interest in healthy fast food options has caused all of the major fast food organizations to introduce healthy menu items.
The major fast food organizations have also launched marketing campaigns to promote their healthy menu items
Research suggests that the growth in the fast food market will be in the fast-casual area. This refers to consumers who want "fresh food served quickly in a distinctive, casual environment" (McPherson, Mitchell, and Mitten 2003). This market is predicted to be worth $35 billion annually by 2010 (McPherson, Mitchell, and Mitten 2003).
Research suggests that there is a gap in the market, with many of the major fast food organizations unable to provide or be perceived as providing fresh food. The organizations that are perceived as providing fresh food are the non-fast food restaurants, with these restaurants not being able to provide quick service. This leaves a gap in the market for a fast food outlet that combines the benefits of fresh food with the benefits of quick service.
Research suggests that the dinner market is the most promising, with this the most popular meal and the one that consumers are willing to pay the most for (McPherson, Mitchell, and Mitten 2003).
B. Competitive Situation
Competition will continue to be strong in the fast food market because of the number of organizations operating in the market.
The major organizations will also continue to market and advertise heavily, as is characteristic of the industry.
The fast food organizations will become more direct competitors of Quiznos because of the healthy menu items introduced and because of the marketing of fast food as healthy.
Previously, Subway was the major direct competitor for Quiznos because they sell a similar product that offers the same consumer benefits. This has changes with McDonalds now also offering freshly made sandwiches as standard menu items.
C. Macroenvironment Situation
Changes in regards to health and dieting have already impacted the market, with a new demand for healthier menu options. This trend will continue as consumers continue to demand healthier fast food items.
In regards to health and dieting, there is a current focus on low G.I. foods and the health benefits of these items. It is expected that this interest will continue.
In regards to health and dieting, there has been a consumer shift in recent years with consumers becoming more concerned with preservatives and additives, and with consumers preferring organic fruit and vegetables. It is expected that this trend will continue with consumers becoming more educated about health, nutrition, and food. It is expected that this will result in consumers who demand more from fast food outlets.
There is a growing concern about obesity in children. This could lead to parents choosing a healthier fast food outlet, instead of McDonalds or Burger King. There is potential for Quiznos to take advantage of this possible trend.
There has been a social trend in recent decades with more women entering the workforce and more families with both parents working. This trend has created a greater demand for fast food since parents do not have as much time to prepare food. Along with the increasing demand for healthier food options, this creates an opportunity for Quiznos to take advantage of the increasing market.
There has been a social trend with people having children later in life. This creates an expanded market of people in their 20's and 30's who are single and without children. This market of individuals cooks less and so have a greater demand for fast food and restaurant meals. There is an opportunity for Quiznos to take advantage of this market.
III. Key Issues
There is a lack of growth in the fast food market. This means that Quiznos will need to gain a greater market share rather than increase the overall market.
The lack of growth means that any action Quiznos takes to increase its market share will occur at the expense of its competitors. This makes it likely that competitors will react in response to Quiznos's marketing campaigns. For example, if Quiznos introduces a new product, a competitor may introduce a similar one to counter it.
There is intense competition between organizations in the market, with this creating potential problems if the actions of competitors erode Quiznos's market.
Competitors in the fast food market are always adapting and altering their products and advertising campaigns to gain market share. The constant changes makes it difficult for Quiznos to plan ahead and market effectively, since it cannot be known what the other companies will be offering at any given time.
Competitors in the fast food market are focusing more on healthy options, which reduces Quiznos's competitive advantage and makes its product less unique. This could have a significant impact on the sales of Quiznos.
Quiznos's position as a fresh sandwich maker makes it well placed to take advantage of the new interest in healthy products.
If Quiznos promotes its products as being healthy, the claim will be more believable than for McDonalds, Burger King, Taco Bell, Pizza Hut, or KFC. The claim will be believable because it matches well with Quiznos' image and its product type.
There is an increasing demand for low G.I. fast food items. Quiznos freshly made products can be easily adapted to make them low G.I. without this needing any major operational changes.
Quiznos is well-placed to offer organic salads and products with no preservatives and no additives. With an increased consumer interest in these issues, Quiznos has the opportunity to take advantage of this by focusing on this aspect of the products.
Quiznos products can be easily adapted to appeal more to children or to families, with this action taking advantage of parents and families seeking healthier options.
Quiznos can take advantage of the growing market of working parents who are busy and looking for a healthy option for dinner.
Quiznos can take advantage of the growing market of single people in their 20s and 30s who are looking for an easy, but healthy dinner item.
Quiznos can take advantage of the growing fast-casual food market. This refers to consumers who want "fresh food served quickly in a distinctive, casual environment" (McPherson, Mitchell, and Mitten 2003). It has been noted that there is a gap in the fast-casual market with few fast food organization meeting the needs of these consumers. Quiznos can meet these needs well because they provide both a fresh product and a quick product. Quiznos has also focused on promoting itself as a slightly upmarket brand, which would meet the consumer's need for an eating environments that is slightly above the level of the fast food restaurant.
Quiznos can take advantage of the dinner market. This is the most promising, the most popular, and the meal that provides the greatest income opportunity. Quiznos and similar sandwich products have typically been associated with lunch, rather than with dinner. If this perception can be changed, Quiznos can greatly increase its sales.
Quiznos's products have the adaptability to be easily changed to suit different markets and different times without significant costs. For example, products could be introduced to suit children and families or to suit the dinner market. This involves changing what is on each sandwich, but does not mean making any significant changes to the actual restaurants or the food delivery processes. This makes it easy for Quiznos to adapt to consumer needs.
Quiznos's freshly made sandwiches can be easily altered to suit the customer's specific…