Quiznos gets sandwiched … in a price war

Excerpted from Marketing Daily, “Quiznos Launches Lower-Priced Menu,” By Karlene Lukovitz, Jan 14, 2009

* * * * *

First there were the burger wars. Now, we have the sub wars. Quiznos has unveiled a new, lower-priced menu, including 20 subs priced under $5, backed by a national TV ad campaign.

Subway’s popular $5, foot-long subs turned up the heat on the pricing front. Just last week, Togo’s launched a limited-run promotion featuring one 6-inch sub selection per day at a special $1.99 price.

The new Quiznos menu includes price reductions spanning more than 37 of the chain’s most popular sandwiches and other items.

The campaign, which will air nationally for several weeks, drives home the point that the same quality sandwiches for which the chain is known can now be purchased at lower prices … Quiznos is also introducing new menu boards designed to highlight the “improved price/quality value equation.”

“The redesigned menu and lower prices … allow us to compete on our terms–meaning quality–while still offering a price benefit to consumers seeking a premium product” …

Edit by SAC

* * * * *

Our Take: Quiznos price cuts are in direct response to its competitors’ actions.  Rather than choosing to introduce new lower cost menu items, offering additional bundled price options(combo/value meals) or choosing a nonprice response such as competing on quality Quiznos is reacting to its competitors by taking a simple price action emphasizing the value equation – same product, lower price, more value.  As the price war continues the real winner is the consumer. 

* * * * *

Want more from the Homa Files?
Click link =>
The Homa Files Blog

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s