final presentation
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Final Project. Analysis of Quiznos. Using Perceptual Mapping and Conjoint AnalysisTRANSCRIPT
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.