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Laura Johnson
Amanda Vinson
Sasha Cameron
Eugenia Erazo
Rachael Wilcox
Amy Hoffman
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Table of Contents
Introduction……………………………………………… page 1
Section 1: Situation Analysis……………………… page 1-3
Section 2: Company Analysis……………………… page 3-5
: SWOT………………………………………. page 5-6
Section 3: Competitive Analysis………………….. page 6-8
Section 4: Consumer Analysis……………………… page 8-10
Section 5: Planning and Strategy ………………… page 10-12
: Integration………………………………… page 12-13
Section 6: Creative Message………………………… Video
Section 7: Media Plan………………………………….. page 13
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Jimmy John’s is a slightly new, “fresh” face in the world of subs. The gourmet fresh sandwich
restaurant is rich in ingredients, friendly faces and affordable prices. As an establishing brand in its’
competitive market, Jimmy John’s is attracting the millennial group, because their delivery option sets
them apart from their competition. Although this company is small, it is slowly gaining popularity, as
well as more stores.
SITUATION ANALYSIS
Jimmy John’s is a gourmet sandwich shop that offers customers fresh and fast made sandwiches.
Jimmy John’s founder, Jimmy John Liautaud started this sub shop in 1983. Liautaud opened the first
Jimmy John’s restaurant when he was only 19 years old. The first Jimmy John’s had a kitchen equipped
with far from modern appliances; an antique fridge, rusty stove and an old dishwasher. To create buzz
for his new sandwich shop, Liautaud went to a local college campus with samples of his fresh gourmet
subs. The college students fell in love with the simple sandwiches, making Jimmy John’s an immediate
success.
Is Jimmy John’s a $10 billion industry?
Jimmy John’s focuses on franchising to make profit within the industry. Currently, Jimmy John’s
has franchise units solely in the U.S. The franchiser fee is roughly $35,000 per unit and has a 10-year
renewable contract.
Franchise Units
YEAR
2011
2010
2009
2008
2007
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U.S.
1,202
1,020
871
701
559
CANADIAN
0
0
0
0
0
INTERNATIONAL
0
0
0
0
0
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COMPANY OWNED
26
23
20
20
20
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What are the trends for Jimmy Johns?
Earlier this year, Liautaud was threatening to relocate Jimmy John’s from its home base state of
Illinois. Due to the high increase of corporate and personal taxes, Liautaud wanted to move his company
to Florida. Recently, the tax increase for personal income tax rose from 3 percent to 5 percent, while the
corporate income tax rose from 7.3 percent to 9.5 percent. In the end, the increase of the taxes would
cost Jimmy John’s, and founder Liautaud, a lot of money.
If Jimmy John’s founder is true to his word and moves the headquarters out of Illinois, then
Jimmy John’s will face a massive loss in consumers. Illinois is where Jimmy John’s started and the
founder is risking the loss of its loyal customers of Illinois if he moves his headquarters to Florida.
However, moving to Florida would also gather new customers to the company.
Who are the biggest competitors and what is their market share compared to Jimmy John’s?
Jimmy John’s main competitors in the market are: The Quiznos Master LLC, Doctor’s
Associates Inc. and YUM! Brands Inc. The Quiznos Master LLC owns and operates the famous sub
shop called Quiznos. Quiznos is second behind Subway in the sub sandwich chain and has 5,114 chain
sub style shops. In comparison the Quiznos Master LLC market share would be larger than Jimmy
John’s but smaller than Subway.
YUM! Brands Inc. owns food places like Taco Bell, Pizza Hut, Long John Silvers, A&W and
KFC. Combined, YUM! Brands Inc. has 37,000 food shops in 110 countries. The market share for
YUM! Brands Inc. should be the largest market share out of all of the competitors because it has the
largest number of franchises.
Doctor’s Associates Inc. are the owners of Subway, the number one sub sandwich chain
worldwide. Outselling McDonalds, Subway is now the world’s largest quick service chain restaurant.
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Subway has 35,625 shops in over 98 countries. Subway’s market share would be the second largest out
of these four companies.
Jimmy John's Franchise, LLC only owns Jimmy John’s sub shop. There are approximately 1,000
sub shops in only 39 states in the U.S. and no international franchises. Jimmy John’s market share is
well behind all the other competitors.
COMPANY ANALYSIS
Brief Overview of the client’s history and where it is in the current marketplace.
Jimmy John's Franchise, LLC (Jimmy John's) is responsible for operating a chain of restaurants
in over 1,000 locations across 39 states in the US. The restaurants are mostly found in the Midwestern
states of the US, Florida included. The chain's menu features submarine-style sandwiches made with a
variety of fresh toppings and names such as Big John, J.J. and the Gargantuan. Jimmy John's also serves
club style sandwiches made with your choice of whole wheat or French bread. The company mostly
targets college markets that offer a take-away option, delivery service, limited seating venues and
catering services. Jimmy John's is headquartered in Champaign, IL.
What is Jimmy John’s brand identity and perception?
In recent years, Jimmy John’s has adopted the terms “fresh and gourmet” and “that’s why mine
tastes better.” These two slogans explain Jimmy John’s advertising technique to a tee.
Jimmy John’s wants to be known for having only the freshest meats and vegetables on their subs, unlike
its competitors. According to Jimmy John’s, their competitors may perceive their food as “fresh and
gourmet,” but in fact they are using packaged, pre-sliced vegetables sprayed with chemicals in addition
to “filler” in their meats. With Jimmy John’s, however, vegetables are brought straight from the fields
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into the restaurants. There they are washed, sliced and served right to the customer. The same goes for
the meat: straight from the farm to the slicer, to the freshly baked bread awaiting hungry customers.
Customer service is valued very highly at all Jimmy John’s franchises. Employees always greet the
customers with a smile. Overall, Jimmy Johns wants to give a sense of a healthy, affordable meal in a
comfortable setting.
Do they have equity in their current brand?
Currently Jimmy John’s does have brand equity. People know their product and what it stands
for. Customers chose Jimmy John’s for their always-fresh meat and vegetables; friendly faces, and quick
and accurate service. They are definitely better known in the eastern states; therefore more people are
willing to continue eating in these establishments.
Is its financial health good? (revenues, profits etc.)
Jimmy John’s has been doing well financially; in 2007 its because it is JJ’s sales so I think its
possessive.) annual sales amounted to $1,134,667 in the self-owned stores (not franchises, company
opened). Currently, 95% of Jimmy John’s restaurants are franchised owned, and it’s always looking for
more franchisees to fuel its growth
[Franchise Disclosure Documents] Public Record
1. The actual average gross sales for all restaurants in the U.S. that were open for operation during the
entire fiscal year 2010 (December 30, 2009 to December 28, 2010), including both franchised and
affiliate-owned locations:
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$752,988
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2. The total number of Jimmy John’s restaurants included in this average: 954.
3. The number of franchised Jimmy John’s restaurants that were open for operation during the entire
fiscal year 2010 whose actual gross sales exceeded the average:
379 (41%).
4. The number of affiliate-owned Jimmy John’s restaurants that were open for operation during the
entire fiscal year 2010 whose actual gross sales exceeded the average: 21 (100%).
5. The 21 affiliate-owned Jimmy John’s restaurants are located primarily on college campuses.
S.W.O.T Analysis of Jimmy John’s
Strengths:
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Only sandwich company to offer a delivery option (quick and easy)
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Only healthy, organic meats and vegetables used in production (support local farms and produce
markets)
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Reasonably priced considering the quality of the products used
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Customers can order online, read about the company and enter for prizes through the website
(entertains and educates the consumer)
Weaknesses: (also, do these all need periods at the end of them or no?)
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Expensive (organic meats and vegetables cost more) as well as delivery charges
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Competition such as Subway (by far Jimmy John’s biggest competition), Quiznos, Firehouse
Subs, Blimpie, Panera and local delis have cheaper options, and celebrity endorsements. They
are also more well known.
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Jimmy John’s is not an international brand and may not reach potential target audiences (Subway
is international)
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Opportunities:
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Enter the healthy market (diet options)
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Expand the market to a more diverse group (college campuses)
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Use being the pioneer of “sandwich delivery” to your advantage
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Strengthen the relationship with current campus franchises enabling promotions for college
student consumers.
Threats:
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The competition in the restaurant business is stiff, and with an abundance of options available
consumers are always looking for something to eat
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Other competitors such as the emerging market of “fresh fast food” (Moe’s Southwest Grill, Pita
Pit, etc.)
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The economy could continue to depreciate, resulting in economic hardships, for both the
company and its consumers
COMPETITIVE REVIEW
Key Competitors:
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Subway
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Quiznos
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Blimpie
Subway:
• Founded in 1965
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Generate Revenue through 35,625 franchised stores throughout 98 countries.
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Total Investment: 84.8K to 258.8K
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Target audience: Adults between 16 and 39.
Mission statement: “To provide the tools and knowledge to allow entrepreneurs to compete successfully
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in the Quick Service Restaurant industry worldwide, by consistently offering value to consumers
through providing great tasting food that is good for them and made the way they want it.”
Quiznos:
• Founded in 1981
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Generate Revenue through 5,114 franchised stores
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Total investment: 24.1K to 341.8K
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Target audience: middle class, white collar, ages 18 to 65
Mission statement: “To be the leader in quick service restaurants by serving the best sandwiches and
‘products in and around sandwiches’ in the marketplace. One successful restaurant and one ‘wowed’
customer at a time.”
Blimpie (Kahala)
• Founded in 1964
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Generate Revenue through 848 stores in the United States
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Total investment: 142.9K to 401.3K
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Target audience ages 25 to 44.
Mission statement: “to provide a remarkable customer experience – delivering great taste and quality
with every bite.”
Subway’s SWOT Analysis
Strengths: Subway has great brand recognition throughout the globe. Their menu reflects their
mission to always have fresh ingredients. Subway has a low franchise start up. Subway has a
customizable menu offering to customers. Subway management has strong strategic thinking in concern
to restaurant openings. Their “five dollar foot long” deal was a strong point among their target audience.
Subway has a great marketing team and has very strong promotion for their “five dollar foot long.”
Weaknesses: They have a limited vegetarian option in the United States. They are said to have
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an outdated look. Due to the complaints, Subway has weaknesses in not only internal relations within
the company, but also a lack of corporate professionalism.
Opportunities: Subway can change their outdated look to have a more modern feel. They can
improve their customer service and internal relations. Corporate Subway can get more involved with the
franchises.
Threats: The threats Subway faces are from competitors in the same market and those that are
targeting the same audience as them. The economy is also another threat to Subway’s growth.
CONSUMER ANALYSIS
Our target customers include those from age 18 to 26 looking for a fast, healthy alternative to
fast food. They are likely in school or just out graduated from school, so incomes will come from a part
time job or a beginner’s salary. They will also have enough of a disposable income to be able to eat out
for lunch or dinner. They are Millennials who are single or recently married. Target segment is health
conscious and recognizes quality ingredients versus cheaper ingredients. They likely go to the gym often
and are educated regarding healthy eating habits. The target segment is likely very busy and sometimes
doesn’t have time to make a homemade meal. They are both male and female of non-specific race who
live near a college campus, most likely in an urban or suburban area.
The target segment is interested in living a healthy lifestyle amidst their busy schedule and
tighter budget. They are active, young and are (or want to be) fit. They may be interested in sports, body
building, working out or running. They are prone to instant gratification and will eat out more than any
other demographic segment. They value an accessible, affordable meal that fits their current lifestyle.
Target segment is brand-conscious. They would rather spend their money on something familiar
like Apple products and certain “branded” clothing lines. They are willing to experiment with food and
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are likely to become regulars if pleased with food and service.
Target segment is most likely a Striver, and is perhaps an experiencer. They are likely somewhat
budget conscious and like to find bargains, while also enjoying shopping occasionally. They may be
impulsive shoppers from time to time.
A day in the life of the consumer consists of either school or work, followed by hobbies,
organizations, or activities of their choice. Target market is very social and likes to be around other
young people daily. Nightly activities can include homework, going out, or socializing with friends.
Meals are added in when convenient, and often are social outings when not rushed.
These young adults are technologically savvy and follow technology trends. They may have
iPhones and numerous applications to go along with it. If they have a question, need to check their
Facebook or are bored, they will use their smart phones. They commonly use social media sites like
Facebook, Twitter, Tumblr and WordPress. They like to constantly be “in touch” with the world. Target
market watches shows either on television or on their computers. They are familiar with any videos gone
viral, and have a relatively wide knowledge of most technologies.
Customer base is growing. Our goal is to gain brand loyalty and stronger sales among the 18- 26 year
old demographic.
The plan is to do this through targeting customer needs. Target segment is looking for fast,
affordable, healthy meals that can be easily obtained through either a speedy stop by the site, or through
delivery. Customers need quick, on-the-go meals. They are busy with school, work and numerous
activities that they take on, and need fast service. They are also health conscious and therefore want a
quick but healthy alternative to fast food. They want fresh ingredients in their food made in a timely
manner. Delivery should be an option so as to fit into their daily lives. They need for the product to be a
good price. They are not necessarily looking for cheap, but they do want comparable pricing to other
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competition out in the market.
Alternately, they may want a social experience and need accommodations that offer that.
PLANNING AND STRATEGY
Objectives of the advertising:
-To increase awareness among the target.
-To expand category by attracting non-customers.
-To retain current customers.
-To increase frequency of use.
-To increase trial.
-To attract users of competitive brands.
What is the idea we want to communicate to get our desired results?
This target audience should consider Jimmy John’s because of high taste quality and freshness of
ingredients. Also want to provide a delivery service, new easy way to receive the food.
What is the single most important take-away of the message?
The single most important take-away of the message should be “freshness.” We want this
audience to be familiarized with the Jimmy John’s menu and trust in every menu item’s freshness. Our
new customers will begin to learn what Jimmy John’s has to offer in terms of guaranteed, high quality
and fresh products. Former customers are reassured that the product they have been loyal to for years is
certainly worth their money. Social media wise, Jimmy John’s will allow its website users to create their
“favorite Jimmy John’s” and therefore establish a direct connection with the brand.
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Do these consumers have a reason to believe us? What are the reasons to believe?
We can prove it because we have/offer transparency in regards to the origins of our ingredients
and caloric factors of the menu. The restaurant has been in business since 1983 establishing credibility
with the quality of its products. Jimmy John’s has loyal consumers- our mission is to increase that
number by sharing the “factors” that make Jimmy Johns their favorite.
What positioning message will you use? Do you need to re-position your brand to speak directly to
this audience? How can you tailor a message about your product that speaks specifically to this
target?
The positioning message will be “freshness.” We are positioning our message to existing and
new audiences. We will tailor online videos and messages as we develop a two-way communication
with our loyal customers through social media sites. Also, continuing to make the website and other
media interactive, brings customers in, whether new or existing.
Where should the message be?
As established in the media plan, Jimmy John’s will use an interactive website that will allow
customers to craft their own sub online and order online for delivery or pick-up. The website will feature
the “create your own sub” application and customers will custom order their “favorite” subs with special
variations from the traditional menu. This will give the target a “fun” way to create their sub while
reaching them on their preferred platform.
Promotional codes will be distributed through Facebook, Foursquare badges and check-in
promotions, Groupon and Twitter, as our target audience is very involved with these social media sites.
Coupon books will be distributed at a collegiate level and all advertising for special promotions will be
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distributed through online resources.
What is the tonality of the message?
The tonality of the message should be confidence. We want to show we have no doubt about the
quality of our food. We would also like to incorporate humorous statements to make the brand
appealing as a “fun brand.”
INTEGRATION
In order to execute a fool- proof creative message, Jimmy John’s needs to take a few main points
into consideration. Who is Jimmy John’s trying to reach? What are they trying to say? How are they
going to convey this message to the targeted audience?
Taking a look at the MarCom matrix tools, Jimmy John’s should work on the following:
In the world of Public Relations, it would be beneficial to Jimmy John’s if they got the word out
in popular forms of advertising. Radio slots, one-minute video commercials, or short webisodes on sites
such as YouTube, would allow Jimmy John’s to reach their targeted audience most efficiently.
They should go to different events such as college campuses, fairgrounds or various events
around towns to promote what’s “new” at Jimmy John’s. At these events, they can give out sample
platters to students, allowing them to try what Jimmy John’s is featuring on their menu. Jimmy John’s
should work on featuring a “sub of the month,” in which customers can get a discounted price for trying
a new creation each month of the year.
Jimmy John’s targeted audience ranges from ages 18- 26 also known as the “New Millennium”
era or millenials. This age group is interested in new items and having the ability to customize any
product to their liking. Jimmy John’s will now allow customization featuring on their website, a whole
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new way to order from Jimmy John’s.
Other companies that deliver allow customers the ability to customize their own orders. From the
bottom to the top, consumers are able to create a unique, one of a kind creation to enjoy. Jimmy John’s
will allow consumers that same amount of freedom. Customers will now be able to create their own
sandwiches online. Jimmy John’s customizes your order starting from choice of bread, to various meats
and cheeses all the way to their choice of chips to give the order that finished touch.
No other sandwich company allows the freedom of creating a unique sandwich with every order
and then having it delivered to your home within a matter of minutes. Jimmy John’s will be the first.
MEDIA STRATEGY
Our target segment is technologically savvy and is a heavy user of the Internet for entertainment.
For this reason, communication via Internet will be imperative. Jimmy John’s will use an interactive
website that allows customers to craft their own sub online and order online for delivery or pick-up. This
will give the target a “fun” way to create their sub whilst reaching them on their preferred platform.
The implementation of bi-weekly coupon codes to be sent out via Twitter and Facebook will be a
prime strategy in reaching our target segment. We will also include coupons in coupon books sent out on
campus for students to make Jimmy John’s as accessible as possible. The aspect of delivery will be
played up in the deals offered.
All promotions will be advertised through our website, Facebook page, fan page and Twitter
account. Online videos about us and our subs, as well as pieces on the more popular promotions and
events will be incorporated into the media plan.
Communication times will be based primarily around target segments mealtimes. We will strive
to reach target segment through as many touch points as possible.
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