The 4Ps of Marketing Used by Quiznos and Subway - Research Paper Example

The 4P’s of Marketing Used by Quiznos and Subway Abstract The marketing mix or 4 P’s is useful in analyzing the strength and weaknesses of two similar companies. In the case of Subway and Quiznos, the ability of Subway to offer better product, price, place and promotion made the company able to earn substantial amount of annual sales and profit as compared to Quiznos. Introduction Subway and Quiznos are two similar companies that serve submarine sandwich to their target customers. As the pioneer of submarine sandwich in the United States, Subway opened its first store in Bridgeport, Connecticut back in 1965. After establishing a strong brand, the company offered franchising options in 1974 because of the owners’ desire to expand the business. Today, Subway has approximately 36,266 restaurants in 98 countries around the world (Subway, 2012a). Subway is a private company. Although the company does not give access to their current profits and revenues, the estimated annual sales of Subway restaurant was US$5 billion back in 2005 (Finance Investments, 2011). Quiznos was established back in 1978. Since then, the company managed to operate more than 4,000 stores throughout the United States aside from its stores in more than 40 countries and territories around the world (msnbc, 2010). Unlike Subway, Quiznos had to enter into a financial restructuring plan due to its inability to pay its debt (Bloomberg, 2011). As part of analyzing the differences in the marketing strategies used by these two companies, this report will apply the marketing mix or 4 P’s in the case of Quiznos and Subway. Differences in Marketing Mix or 4 P’s in the case of Quiznos and Subway With regards to product, the quality and variety of food varies in the case of Quiznos and Subway. Even though both companies are able to offer good taste of submarine sandwiches and salad, Subway is considered more competitive as compared to Quiznos in terms of its food variety. By allowing the customers to choose the kind of ingredients to be included in their sandwiches, Subway is literally able to offer more variety of food as the company satisfies the specific food preferences of its target customers. With regards to food serving, Quiznos is bigger as compared to Subway. In terms of pricing, the market prices of Subway’s food items are more reasonable as compared to Quiznos. In fact, it has been noted that the food prices of Quiznos is almost a dollar more expensive than Subway’s market prices. Despite the ability of Subway to offer more reasonable prices, the company also provides its valued customers with good ambience, store cleanliness and high quality services in exchange of its food prices. The stores of both companies can be located in commercial areas like malls, offices, convenience stores, school vicinities, airports, truck stops, and military bases among others. This allows its target customers to have the convenience in locating both companies’ store outlets. However, the store designs of Quiznos and Subway are different in so many ways. In most cases, the store designs of Subway stores are more comparable to quasi deli restaurants whereas Quiznos’ store designs are more suitable for casual deli restaurants. This is the main reason why Subway is able to provide better store ambience as compared to Quiznos. When it comes to promotion, both companies maintain their own official website where they can freely advertise their food products, news, promos, and franchising opportunities. Aside from YouTube, both companies are taking advantage of social networking sites like Facebook and Twitter. Unlike Subway, Quiznos is offering eGift cards and Q Club. Quiznos’ eGift cards can be purchased online to surprise a customer’s friend or love ones using their Facebook account (Quiznos, 2012a) wheras joining the Q Club will give each customer the access to discount coupons (Quiznos, 2012b). Although the use of discount coupon could have been a good strategy in persuading some of its customers to return back for more sandwiches, there has been some customer feedback spreading on a blog that the company is no longer accepting internet coupons (Kuczykowski, 2009). Featured on Facebook, Subway is more active in promoting health and sports related events (Calderon, 2011). (See Appendix I – Summary of Marketing Mix on page 4) Conclusion and Recommendation Even though both companies are offering the same food products, the ability of Subway to offer better food, pricing, store ambience, and promotional strategies related to healthy lifestyle campaign made the company more successful as compared to Quiznos. To make Quiznos competitive in the food industry, the company should carefully choose its promotional campaign aside from realigning its food products with its market prices. *** End *** Appendix I – Summary of Marketing Mix Product Price Place Promotion Subway Submarine sandwiches made out of fresh ingredients Food serving is smaller Offers more variety by allowing the customers to choose the kind of ingredients to be included in their sandwiches Salad Reasonable price for its target customers Offers good ambience, cleanliness and service in exchange of upscale pricing Commercial areas like malls, offices, convenience stores, school vicinities, airports, truck stops, and military bases among others Closes down non-profit earning stores Designs of Subway stores are competitive to quasi deli restaurants Official company website Continuous franchising campaigns Social networking sites like Facebook and Twitter Use of health & sports related events or campaign (i.e. fight obesity, etc.) Quiznos Toasted or untoasted Submarine sandwiches Food serving is bigger Salad Less variety on food products Roughly a dollar more expensive than Subway Commercial areas like malls, offices, convenience stores, school vicinities, airports, truck stops, and military bases among others. Designs of Quiznos stores are suitable for casual deli restaurants Official company website Franchising campaigns Social networking sites like Facebook and Twitter Gift Cards Q Club References Bloomberg. (2011, December 23). Retrieved February 20, 2012, from The Quizno's Corporation Reaches Agreement to Restructure Debt and Strengthen Financial Position: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=33545 Calderon, S. (2011, May 30). Inside Facebook. Retrieved February 20, 2012, from Featured Facebook Campaigns: Subway, Samsung Televisions, Stoli Vodka, NBC & Bravo and More: http://www.insidefacebook.com/2011/05/30/featured-facebook-campaigns-subway-samsung-televisions-stoli-vodka-nbc-bravo-and-more/ Finance Investments. (2011, July 22). Retrieved February 20, 2012, from Subway Restaurant Annual Report 2010: Sales, Revenue, Profits and New Products: http://www.financeninvestments.com/annual-report/subway-restaurant-annual-report.html Kuczykowski, T. (2009, May 20). Deal Seeking Mom. Retrieved February 20, 2012, from Quiznos: Join The Q Club For Coupons: http://dealseekingmom.com/quiznos-join-the-q-club-for-coupons/ msnbc. (2010, November 2). Retrieved February 20, 2012, from Quiznos planning to open shops in Kuwait : http://www.msnbc.msn.com/id/39971159/ns/business-consumer_news/t/quiznos-planning-open-shops-kuwait/#.T0Gwu4EmySo Quiznos. (2012a). Retrieved February 20, 2012, from eGift Card: Delivered in minutes: https://quiznos.cashstar.com/gift-card/buy/?ref=quizfb1 Quiznos. (2012b). Retrieved February 20, 2012, from Q Club: http://www.quiznos.com/Qclub.aspx Subway. (2012a). Retrieved February 20, 2012, from The History of Subway: http://www.subway.com/subwayroot/about_us/history.aspx Read More