TEAM BIGGIE FRIES Mike O’Toole Tina Piotrowski Patrick Smith Mitch Heun

QUIZNOS

A fast food submarine sandwich franchise

Headquartered in Denver Located in 22 countries 5,000 locations in the United States Food items include: sandwiches,

soups, and salads

FAST FOOD INDUSTRY

Highly competitive market, especially in the United States

Submarine sandwich competitors for Quiznos include: Subway, Potbellys, Jimmy Johns, Mr. Submarine

More chains are expanding into global markets

PERCEPTUAL MAPPING

Used to determine how Quiznos compares to the other companies in our research

We are determining Quiznos’ position in relation to other companies in the mind of the consumer

Determining Quiznos’ image and reputation

CONJOINT ANALYSIS

Determine the barriers of entry for Quiznos in the fast food market

Calculates Quiznos’ market share Determine which features of Quiznos the

consumers prefer and which they don’t

WHEN CONSIDERING EATING AT A FAST FOOD CHAIN, WHAT RESOURCES DO YOU USE TO RESEARCH DIFFERENT RESTAURANTS?

ARE THERE CERTAIN PEOPLE YOU SEEK ADVICE FROM WHEN DECIDING AT WHICH FAST FOOD CHAIN TO EAT?

FOR WHICH MEALS DO YOU VISIT FAST FOOD RESTAURANTS?

COMMERCIALS OR ADVERTISING CAMPAIGNS FACTOR INTO YOUR DECISION IN CHOOSING A FAST FOOD RESTAURANT?

PROMOTIONS, SUCH AS HAPPY MEALS, FACTOR INTO YOUR DECISION WHEN CHOOSING A FAST FOOD RESTAURANT?

WHAT YEAR ARE YOU AT DEPAUL?

WHAT IS YOUR GENDER

WHAT IS YOUR ETHNICITY?

EMPLOYMENT STATUS?

WHICH MEAL PLAN DO YOU OWN?

HOW MANY FAST-FOOD CHAINS HAVE YOU VISITED IN THE LAST MONTH?

PERCEPTUAL MAP

PERCEPTUAL MAPPING

Used to determine how Quiznos compares to the other companies in our research

We are determining Quiznos’ position in relation to other companies in the mind of the consumer

Determining Quiznos’ image and reputation

SPSS RESULTS Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Loadings

Rotation Sums of Squared Loadings

 

 

Total % of Variance

Cumulative %

Total % of Variance

Cumulative %

Total % of Variance

Cumulative %

1 7.024356623 50.17398 50.17398 7.024357 50.17398 50.17398 6.819121 48.70801 48.70801

2 3.998053201 3.998053 28.55752 78.7315 4.203289 30.02349 78.7315

3 2.405341891 17.18101 95.91251  

4 0.363077975 2.593414 98.50593  

5 0.085482319  

6 0.058887069 0.420622 99.53714  

7 0.042792857 0.305663 99.8428  

8 0.019423903 0.138742 99.98154  

9 0.002584162 0.018458 100  

10 1.86329E-16 1.33E-15 100  

11 8.38909E-17 5.99E-16 100  

12 4.98653E-17 3.56E-16 100  

13 -4.2246E-17 -3E-16 100  

14 -1.7699E-16 -1.3E-15 100  

Extraction Method: Principal Component Analysis.                  

This output should equal over 60%

BRANDS

1. Portillo’s 2. Subway 3. Jimmy John’s 4. McDonald’s 5. Quiznos6. Wendy’s7. Burger King 8. KFC9. Arby’s 10. Popeye’s

PREFERENCE Greasy Food Nutritional Value Menu Variety Convenient Location Unique Quick Service Employee Friendliness Satisfying Food Restaurant Cleanliness Chain Successfulness Good Quality Good Advertising Family Oriented Preference

SubwayBurger King

Name the Axes

NAMING OF THE AXES It’s Everywhere

The most convenient fast food chains The most successful chains

Good, Clean, Fun The most family-friendly restaurants Highest nutritional values

The Last Resort The least-popular chains Usually the greasiest food

It Takes a While Service is not as fast as comparable chains Not as convenient as other chains

Clusters

CLUSTERS Burger Bonanza

-Burgers are the main item on the menu-Very convenient, large number of stores

Successful Sandwich -Very successful sandwich chain

Slow Specialty Shops-Takes longer to prepare food-More specialty stores, such as roast beef

Fast and Friendly-Very fast service, pride themselves on friendly customer service

Unique Burger Joint-Unlike other chains, has a wide variety of items on the menu

Order of Preferences

PREFERENCES

1. Portillo’s 2. Subway 3. Jimmy John’s 4. McDonald’s 5. Quiznos6. Wendy’s7. Burger King 8. KFC9. Arby’s 10. Popeye’s

Quiznos

Jimmy Johns

Wendy’s

McDonalds

Popeye’s

Arby’s

Possible Gaps & Spaces

???

???

???

???

??????

Repositioning

Employee friendliness

Good Quality

Restaurant Cleanliness

Satisfying Food

Nutritional Value

Family Oriented

Repositioning

Employee friendliness

Good Quality

Restaurant Cleanliness

Satisfying Food

Nutritional Value

Family Oriented

Repositioning

RECOMMENDATIONS

Quiznos needs to emphasize quicker service in order to compete with other companies such as Jimmy Johns and Portillos

Improving restaurant cleanliness through stricter sanitation guidelines will improve the atmosphere in Quiznos’ restaurants

Stressing friendly customer service will create a more welcoming environment in the restaurants

THECONJOINTANALYSIS

CONJOINT ANALYSISTHE PROBLEM!!

How do I make meal combinations from particular brands more appealing?

How do I make meal combinations from certain brands more enjoyable?

Features and Levels of Fast Food Meals

Price Type Fat Time Package

Meal Service

$3.00 Burger 10 Grams

1 Min Paper Snack Drive Thru

$7.00 Sandwich

20 Grams

2 Mins Carton Lunch Delivery

$9.00 Chicken 30 Grams

3 Mins Plastic Dinner Walk Up

REGRESSION ANALYSIS

 

   

UTILITIES GRAPHREGRESSION ANALYSIS

RESCALE UTILITIESRange: 4.18 – (-.588) = 4.768

Rescaled ValuesInt= 1

Missing

X1 0.24– (-.588) / 4.768 = .17 X6 = 0.22 0- (-.588)/ 4.768= .12

X2 -0.005– (-.588) / 4.768 = .12 X5 = 0.20 X15= .12

X3 -0.53 – (-.588) / 4.768 = 0.01 X1 = 0.17 X16= .12

X4 -0.061 – (-.588) / 4.768 = 0.11

X7 = 0.15 X17= .12

X5 0.41– (-.588) / 4.768 = 0.20 X14 = 0.15 X18= .12

X6 0.50– (-.588) / 4.768 = 0.22 X2 = 0.12 X19= .12

X7 0.138– (-.588) / 4.768=0.15 X10 = 0.12 X20= .12

X8 -0.1 –(-.588) / 4.768=0.10 X4 = 0.11 X21= .12

X9 -0.26 – (-.588) / 4.768 = 0.06 X8 = 0.10

X10 -0.016 – (-.588) / 4.768 = 0.12

X13= 0.10

X11 -0.138 – (-.588) / 4.768 = 0.09

X11= 0.09

X12 -0.588 – (-.588) / 4.768 = 0 X9= 0.06

X13 -0.11– (-.588) / 4.768 = 0.10 X3= 0.01

X14 0.133 – (-.588) / 4.768 = 0.15

X12= 0

OUTPUT 1: BEST AND WORST MEALS

Best Middle Worst

$3.00 $7.00 $9.00

Sandwich Chicken Burger

30 Grams 10 Grams 20 Grams

2 Mins 1 Min 3 Mins

Paper Carton Bag

Dinner Lunch Snack

Delivery Drive Thru Walk Up

Output 2: Calculating Importance

Total Product Utility and RangeBest Product Worst Product Ranges

Price= 0.17 Price= 0.12 0.17-0.12= 0.05

Type=0.12 Type=0.01 0.12-0.01=0.11

Fat=0.22 Fat=0.12 0.22-0.12=0.1

Time=0.12 Time=0.10 0.12-0.10=0.02

Package=0.12 Package=0.06 0.12-0.06=0.06

Meal=0.12 Meal=0 0.12-0=0.12

Service=0.15 Service=0.10 0.15-0.10=0.05

TPU=1.02 TPU= 0.51 Sum of Ranges= 0.51

Output 2: Calculating Importance

Overall Feature Percentages

Meal is the most importance feature that affectsConsumer’s decisions!!

Importance of Price 0.05/0.51 9.80%

Importance of Type 0.11/0.51 21.56%

Importance of Fat 0.1/0.51 19.60%

Importance of Time 0.02/0.51 3.92%

Importance of Package 0.06/0.51 11.76%

Importance of Meal 0.12/0.51 23.52%

Importance of Service 0.05/0.51 9.80%

Output 2: Calculating Importance

Overall Feature Graph

Price 9.80%

Type 21.56%

Fat 19.60%

Time 3.92%Package 11.76%

Meal 23.52%

Service 9.80%

RELATING TO PERCEPTUAL MAPPING

Both the Conjoint Analysis and Perceptual Mapping can tell what is preferred in consumer’s mind.

When calculating the importance CA and PM can figure out which brands and features positively and negatively affect consumer decisions.

When looking at the most preferred brand on the perceptual map, the importance of features and attributes on the Conjoint Analysis will help determine which meal combination is the most important in that particular restaurant.

Output 3: Market ShareMcD BK Sub Arby Quiz Pop KFC Port Wen Jim

$3.00 $7.00 $9.00 $7.00 $9.00 $7.00 $9.00 $7.00 $3.00 $3.00

Burger Burger Sandwich

Sandwich

Sandwich

Chicken Chicken Chicken Burger Sandwich

30 Grams

30 Grams

10 Grams

20 Grams

20 Grams

30 Grams

30 Grams

20 Grams

10 Grams

20 Grams

1 Min 1 Min 2 Mins 2 Mins 3 Mins 2 Mins 2 Mins 3 Mins 1 Min 1 Min

Carton Paper Paper Bag Paper Carton Carton Bag Paper Paper

Lunch Lunch Dinner Dinner Snack Lunch Dinner Dinner Snack Snack

Drive thru

Drive thru

Walk up Walkup Drive thru

Delivery Walk up Walk up Drive thru

Drive thru

Output 3: Market Share

TPU

McD’s

BK Sub Arby Quiz Pop KFC Port Wen TB

0.17 0.12 0.12 0.12 0.12 0.12 0.12 0.12 0.17 0.17

0.01 0.01 0.12 0.12 0.12 0.11 0.11 0.11 0.01 0.12

0.22 0.22 0.20 0.12 0.12 0.22 0.22 0.12 0.20 0.12

0.15 0.15 0.12 0.12 0.10 0.12 0.12 0.10 0.15 0.15

0.12 0.12 0.12 0.06 0.12 0.12 0.12 0.06 0.12 0.12

0.09 0.09 0.12 0.12 0 0.09 0.12 0.12 0 0

0.12 0.12 0.10 0.10 0.12 0.15 0.12 0.12 0.12 0.12

0.88 0.83 0.90 0.76 0.70 0.93 0.93 0.75 0.77 0.80

OUTPUT 3: MARKET SHARE

11%

11%

9.39%

McDonalds steals the Market Share because of menu and grams of fat variety!!

OUTPUT 4: SIMULATING THE MARKET

Wendys

$7.00

Chicken

10 Grams

1 Min

Paper

Snack

Drive Thru

We raise the price from $3.00 to $7.00

Has a wide variety of choices on menu, we change from Burger to Chicken

Subway

$9.00

Sandwich

20 Grams

2 Mins

Paper

Lunch

Walk up

Subway has numerous items on the menu that are off different calories

Also a great lunch choice

OUTPUT 4: SIMULATING THE MARKET

McD BK Sub Arby Quiz Pop KFC Port Wen Jim

$3.00 $7.00 $9.00 $7.00 $9.00 $7.00 $9.00 $7.00 $7.00 $3.00

Burger Burger Sandwich

Sandwich

Sandwich

Chicken Chicken Chicken Chicken

Sandwich

30 Grams

30 Grams

20 Grams

20 Grams

20 Grams

30 Grams

30 Grams

20 Grams

10 Grams

20 Grams

1 Min 1 Min 2 Mins 2 Mins 3 Mins 2 Mins 2 Mins 3 Mins 1 Min 1 Min

Carton Paper Paper Bag Paper Carton Carton Bag Paper Paper

Lunch Lunch Lunch Dinner Snack Lunch Dinner Dinner Snack Snack

Drive thru

Drive thru

Walk up Walkup Drive thru

Delivery Walk up Walk up Drive thru

Drive thru

OUTPUT 4: SIMULATING THE MARKET

10%

9.40%

9%11%

11%

9.30%

9.49%

10%

OUTPUT 4: SIMULATING THE MARKET

McDonalds

7.00

Burger

10 Grams

1 Min

Carton

Lunch

Walk Up

Quiznos

$9.00

Chicken

20 Grams

2 Mins

Paper

Lunch

Drive Thru

Jimmy Johns

7.00

Sandwich

30 Grams

1 Min

Paper

Dinner

Drive Thru

Pricechange from$3.00 to $7.00

Offers healthy foods at lowercalories

Also serves as an eat in restaurant

Known for theirtasty chicken

Offers food thatcan be prepared quicker

Popularfood choice

More expensivechoices

Highercalorie foods

Food choices can satisfydinner

OUTPUT 4: SIMULATING THE MARKET

McD BK Sub Arby Quiz Pop KFC Port Wen Jim

$7.00 $7.00 $9.00 $7.00 $9.00 $7.00 $9.00 $7.00 $7.00 $7.00

Burger Burger Sandwich

Sandwich

Chicken Chicken Chicken Chicken Chicken Sandwich

10 Grams

30 Grams

20 Grams

20 Grams

20 Grams

30 Grams

30 Grams

20 Grams

10 Grams

30 Grams

1 Min 1 Min 2 Mins 2 Mins 2 Mins 2 Mins 2 Mins 3 Mins 1 Min 1 Min

Carton Paper Paper Bag Paper Carton Carton Bag Paper Paper

Lunch Lunch Lunch Dinner Lunch Lunch Dinner Dinner Snack Dinner

Walk Up

Drive thru

Walk up Walkup Drive thru

Delivery Walk up Walk up Drive thru

Drive thru

OUTPUT 4: SIMULATING THE MARKET

10.7%

10.8%12.3%

13.3%

10.6%

10.5%

12.2%

KFC stole the market share after simulation because of features and levels that have high rescale values.

OUTPUT 5: INTERPRET THE INTERCEPT

The re-scaled intercept suggests a market entry barrier as perceived by the target market.

Our Intercept is very large therefore it would be harder to enter the market

Any product’s TPU must be greater than the intercept

Poor survey results caused the intercept to be very high which had a significant effect on rescaling.

Therefore, none of the TPU’s were higher than the intercept.

RECOMMENDATIONS Because of poor results in the market share

and simulation, it would be in the best interests of Quiznos to create innovation to increase their brand awareness.

While competing with similar restaurants such as Subway, Quiznos can offer features and levels that will introduce differentiation.

In today’s economy, Quiznos can also start offering less expensive meals to compete with other restaurants.

(Subway’s “5 dollar foot long sandwiches”)

RECOMMENDATIONS Introduce delivery services like other

competitors (i.e. Jimmy Johns).

Administer surveys accurately to eliminate any intercept or rescaling issues.

Expansion of meal variety since burgers

aren’t included.

FINAL CONCLUSIONS AND RECOMMENDATIONS

Quiznos should continue to introduce menu differentiation to increase market awareness

Measure sales, cost, and margin performance to maintain future plans and increase preference

Customer service needs to be of central importance as improvements in customer service will positively impact the environment in the store and strengthen customer-employee relationships

Consistent implementation of health-conscience foods to appeal to a larger audience

LEARNING MEMO

When doing the surveys, we should of told people to take these surveys seriously.

Having more detailed questions, to insure more precise results.

Having a wider target market that was not limited to DePaul students.

Doing more surveys then 30 so we have a wider range and more viable data to use.