Introduction
The well-known fast-food restaurant Quiznos is facing a competition problem. The main threat to the company comes from its main competitor, Subway. An effective strategy for Quiznos will be to meet the needs of the target audience, young people aged 18-35, by introducing new products suitable for vegans, vegetarians, or flexitarians. As the health food market grows, Quiznos is addressing the needs of the increasing number of people who are ditching animal products. Increasing Quiznos’ sales can be mainly based on competitive pricing, placement in high-traffic areas, and using influencers and social media to promote their products.
Target Audience
The primary target audience for Quiznos is young people who work or study. This target group seeks to find fast, healthy, and convenient food formats (Allman-Farinelli et al., 2019). Quiznos may increase the number of healthy and vegan alternatives on its menu to appeal to this sector, which isin line with the growth in demand for animal-free products.
Another important initiative is the introduction of gluten-free products to the menu to attract an audience of people with dietary restrictions. The introduction of low-calorie products will also allow Quiznos to expand its target audience. The use of locally sourced ingredients is valuable to a younger audience who appreciates the initiative to support small businesses.
Marketing Strategies
Product
Tailoring a product strategy requires looking at existing offerings on the Quiznos menu. For this analysis, the BCG matrix provided in Appendix 1 is used. This tool allows the business to classify products according to growth and market share criteria (Kotler et al., 2019). The most profitable sections are “cash cows” and “stars” (Kotler et al., 2019).
At the moment, these categories contain the most popular products—sandwiches and drinks (Quiznos, n.d.). The product that brings the least profit is in the “dogs” category. Quiznos needs to take a look at the product in the “question marks” section, which has a small market share but is growing in demand.
Table 1. BCG Matrix
Potentially profitable product categories include green alternatives, locally sourced products, vegan, vegetarian, and flexitarian items, as well as low-calorie and gluten-free products. Quiznos’ best choice for a new line would be to introduce a vegan sandwich based on its most profitable product.
Drinks that are also profitable and need plant-based options to be introduced.
A benefit from unprofitable products could be the introduction of gluten-free cookies. The use of ingredients from local producers will satisfy low-calorie demand. Quiznos may consider collaborating with other companies to expand its product line.
As presented in the figure below, sales of vegan products are projected to show significant growth by 2023, driven by an increase in the number of people choosing plant-based initiatives (Minassian, 2022). The introduction of new green alternatives will meet the needs of the target audience as more young and active people look for healthy fast-food options.
Pricing
To gain a competitive advantage, a company must adapt its strategy to that of its main competitor, Subway. Competitive prices are a factor that attracts new customers (Kotler et al., 2019). Quiznos may also run sales, setting special prices for new products. Researchers highlight the profitability of deliberately lowering the price as a publicity stunt to increase awareness (Lee et al., 2021).
For further customer convenience, Quiznos may partner with external delivery services such as Grubhub or Uber Eats. Connecting to delivery services is a proven way to expand the reach and generate additional revenue (Ghosh, 2020). Competitive prices, sales for new products, and investment in delivery will allow Quiznos to compete effectively with Subway.
Place
Quiznos can use a number of tactics to help reach its target audience. The company can conduct market research to determine the places where the target audience spends most of the time (Hair et al., 2019). It is most likely that the most attractive places for people under 35 are the locations of universities and campuses, shopping malls, and office areas. Quiznos should expand its presence in food courts, locations close to office buildings, and universities to expand its market share.
Promotion
Quiznos must ensure that sufficient advertising is provided for the new product line. To do this, the business can create a thorough marketing plan focused on the needs and preferences of the target customers (Sama, 2019). Advertising distribution sources should include television, printed media, and social media (Sama, 2019). Additionally, the business can work with fitness and health influencers to provide engaging content that promotes new healthy and vegan options.
Ensuring Customer Awareness
For the proposed strategy to be effective, Quiznos needs to ensure that customers are aware of the introduction of a new product line. This can be achieved through consumer surveys in fast-food restaurants, by phone, and by email. When ordering in a restaurant, it is necessary to offer the client to order new menu options. Answering questions about awareness of expanding the line in telephone and email surveys will allow Quiznos to evaluate the effectiveness of the chosen marketing strategy. Information about new initiatives should raise awareness of the benefits of healthy alternatives through banners, booklets, and video messages.
Conclusion
By pricing products at competitive prices with Subway, placing them in locations close to institutions and offices, and using social media to advertise, Quiznos can increase its customer base and sales. To address the growing market for vegan alternatives, Quiznos should introduce a new line of plant-based, gluten-free, and low-calorie products. With the new range, Quiznos will be able to address the needs of a target audience looking for quick and healthy eating options.
Reference List
Allman-Farinelli, M., Rahman, H., Nour, M., Wellard-Cole, L., and Watson, W. L. (2019). ‘The role of supportive food environments to enable healthier choices when eating meals prepared outside the home: Findings from focus groups of 18 to 30-year-olds.’ Nutrients, 11(9), 1-15.
Ghosh, D. (2020). ‘Customer satisfaction towards fast food through online food delivery (OFD) services: An exploratory study’. International Journal of Management (IJM), 11(10), pp. 645-658.
Hair, J. F., Page, M., and Brunsveld, N. (2019). Essentials of business research methods. New York: Routledge.
Quiznos. (n.d.) Menu. Web.
Kotler, P., He, H., Armstrong, G. M., Harris, L. C. (2019). Principles of marketing. New York: Pearson Education Limited.
Lee, M. F., von der Heidt, T., Bradbury, J. F., and Grace, S. (2021). ‘How much more to pay? A study of retail prices of organic versus conventional vegetarian foods in an Australian regional area.’ Journal of Food Distribution Research, 52(3), pp. 46-62. Web.
Minassian, L. (2022). Vegan statistics: Why the global rise in plant-based eating isn’t a fad. Food Revolution Network. Web.
Sama, R. (2019). ‘Impact of media advertisements on consumer behaviour’, Journal of Creative Communications, 14(1), pp.54-68.