Marketing Analytics Report - Aditya, Justin, Kevin and Shweta
- 1. Marketing Analytics Report MKTG 56367 Marketing Analytics April 13th 2016 Prepared for: Paul Sarkissian & CBOCS Properties Inc. Prepared by: Shweta Bhagat, Justin Dominic, Kevin Jeffrey & Aditya Suryawanshi
- 2. P a g e | 2 Table of Contents Executive Summary ...............................................................................4 Research ......................................................................................................5 Research Methodology........................................................................5 Analysis and Findings ...........................................................................6 Research Objective - Feasibility.....................................................6 Halton Hills (L7G Postal Code) ....................................................6 Niagara (L0S Postal Code)..............................................................7 Windsor (N8X Postal Code)............................................................8 Hypothesis - Feasibility ...................................................................10 Research Objective – Target Market...........................................11 Halton Hills (Toronto Premium Outlets) L7G Postal Code ..................................................................................................................11 Niagara (Outlet Collection) Profile Trade Area ....................12 Hypothesis – Target Market ...........................................................14 Research Objective - Marketing ...................................................15 Hypothesis - Marketing....................................................................15 Secondary Research Objectives ......................................................16 Limitations of the Study.....................................................................18 Human Error ........................................................................................18 Platform Analysis and Diagnosis.................................................18 Conclusions..............................................................................................19 References .................................................................................................20
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- 4. P a g e | 4 Executive Summary The following report examines the viability of a Canadian expansion, more specifically into Ontario, for Cracker Barrel Old Country Store Properties Incorporated. As part of the work, we lay out what we used for research capabilities. This includes Piinpoint and Envision5 in addition to Financial Statements from CBOCS, Ministry of Transportation traffic numbers, Census data from both sides of the border and menus from Cracker Barrel itself along with Red Lobster and Olive Garden. Furthermore a restaurants cover is examined in the third part. This industry term was identified back in the Analytics Design, which determines how many times a restaurant can turn over a table in a shift or day part. When it comes to the menu pricing, current exchange rates between the American and Canadian dollar aren’t considered but have been included at the top of the chart. Based on all of the data that has been compiled through the weeks of research (both primary and secondary) we’ll be able to make a final recommendation going forward as to whether CBOCS Properties Incorporated should or should not go ahead with a cross- border presence. Source: canvas.pantone.com
- 5. P a g e | 5 Research Research Methodology Our team conducted the Analytics Report using Piinpoint and Environics Analytics for our primary sources. When it comes to secondary research we compiled data from a variety of sources, including… - The Ministry of Transportation because we wanted to investigate the kind of traffic our main location is getting along with a few other cities for Cracker Barrel to expand into. - Internal financial numbers of CBOCS; although they’re in American dollars, it’s a good indication as to how the company performs right now and what kind of financial capabilities are needed for this Canadian expansion to work effectively. - There’s also a comparison of three dinner dishes from a trio of restaurants, two of which are in both Canada and the United States. In doing this we’ll provide an idea of what, on average, the menu prices would be for a Canadian Cracker Barrel location. - The three locations of interest (number one being Halton Hills) have corresponding Census data from the Government of Canada to look at the population numbers. There’s also figures from the United States Census Bureau on towns/cities that are close to the Canadian border (Lancaster, New York and Port Huron, Michigan). This will give an idea of where the local population is comparable to the Windsor location being considered. To reestablish our target market, it’s families but more specific the traveling family because they’re more likely to use Cracker Barrel as a stop along their route to wherever they happen to be going. We chose this target market because that’s usually who utilizes the Cracker Barrel brand.
- 6. P a g e | 6 Analysis and Findings Research Objective - Feasibility To determine the feasibility of a location in Halton Hills, with plans to perhaps expand to Windsor near the Devonshire Mall as well as adjacent to the Outlet Collection at Niagara. Halton Hills (L7G Postal Code) Census of Canada Data (2011) (Canada, 2011) Age Sex (3) Total – Sex Male Female Overall 44,150 21,760 22,390 0 to 14 years 9,120 4,585 4,540 15 to 24 years 6,020 3,230 2,790 25 to 34 years 4,120 1,960 2,160 35 to 44 years 7,055 3,350 3,705 45 to 54 years 8,120 4,040 4,085 55 to 64 years 4,470 2,265 2,205 65 to 79 years 3,940 1,835 2,105 80 to 99 years 1,300 495 805 100 years and over 5 5 0 Median Age 39.7 39.0 40.3
- 7. P a g e | 7 Ministry of Transportation Traffic Numbers (2010) 401 TRAFALGAR RD IC -MILTON JAMES SNOW PKWY IC Distance - 4.2km Annual Average Daily Traffic - 130,700 (Transportation, 2010) Niagara (L0S Postal Code) Census of Canada Data (2011) Age Sex (3) Total – Sex Male Female Overall 51,670 25,375 26,290 0 to 14 years 7,420 3,765 3,660 15 to 24 years 6,115 3,185 2,935 25 to 34 years 3,885 1,945 1,940 35 to 44 years 5,685 2,755 2,930 45 to 54 years 8,680 4,190 4,490 55 to 64 years 8,800 4,250 4,550 65 to 79 years 8,280 4,095 4,180 80 to 99 years 2,795 1,190 1,610 100 years and over 5 0 5 Median Age 48.3 47.7 48.9 (Canada, 2011)
- 8. P a g e | 8 Ministry of Transportation Traffic Numbers (2010) QEW GLENDALE AVE IC -TO HWY 55 W END GARDEN CITY SKYWAY BRIDGE Distance - 4.3km Annual Average Daily Traffic - 82,500 (Transportation, 2010) Windsor (N8X Postal Code) Census of Canada Data (2011) Age Sex (3) Total – Sex Male Female Overall 15,305 7,415 7,890 0 to 14 years 2,430 1,270 1,160 15 to 24 years 2,110 1,020 1,085 25 to 34 years 2,185 1,035 1,150 35 to 44 years 2,105 1,070 1,040 45 to 54 years 2,430 1,215 1,215 55 to 64 years 1,855 895 960 65 to 79 years 1,510 675 835 80 to 99 years 680 235 440 100 years and over 0 0 0 Median Age 39.7 39.0 40.3 (Canada, 2011)
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- 10. P a g e | 10 United States Census Bureau Data (2010-2014) Williamsville, New York Lancaster, New York Port Huron, Michigan Population estimates, July 1, 2014, (V2014) 5283 10294 29168 Population estimates base, April 1, 2010, (V2014) 5303 10364 30177 Population, percent change - April 1, 2010 (estimates base) to July 1, 2014, (V2014) -0.4 -0.7 -3.3 Population, Census, April 1, 2010 5300 10352 30184 Persons under 5 years, percent, April 1, 2010 4.6 4.7 7.9 Persons under 18 years, percent, April 1, 2010 18.2 20.2 25.6 Persons 65 years and over, percent, April 1, 2010 23.5 16.5 13.1 Female persons, percent, April 1, 2010 56.3 52.2 52.2 (Bureau, 2015) Hypothesis - Feasibility Based on our research, the Cracker Barrel brand could get the traffic necessary of travelers and locals to succeed in Canada. Key Findings - The traffic numbers are strong when looking at the Halton Hills location, which in turn means this franchise could be sustainable. - Both Halton Hills and Niagara have larger population numbers when comparing it to the cities/towns in the United States.
- 11. P a g e | 11 Research Objective – Target Market To evaluate the profile of customers that will utilize a different, more economical food option. Halton Hills (Toronto Premium Outlets) L7G Postal Code Courtesy: Environics Analytics When we get a look at the Halton Region (including Milton and Halton Hills) the four snapshots that standout are South Asian Achievers, Heritage Hubs, Pets & PCs as well as Kids & Careers. Our main snapshot, South Asian Achievers, has a household income of $103,620.00 and very much reflects the increasing diversity of our country’s visible minority population. (Environics Analytics, 2015) SG SESI Name Count % Base Count Base % U1 02 Urbane Villagers 11,271 0.88 150,262 1.09 U1 08 Boomerang City 11,080 0.87 305,393 2.22 S1 06 Kids & Careers 101,521 7.95 631,887 4.59 E1 09 Satellite Burbs 49,155 3.85 660,884 4.80 S2 16 Pets & PCs 108,313 8.48 571,916 4.15 S2 18 Management Material 21,392 1.68 157,702 1.14 S3 14 Diversity Heights 68,512 5.37 229,584 1.67 S3 15 Heritage Hubs 131,349 10.29 617,381 4.48 S3 20 South Asian Achievers 263,231 20.61 417,932 3.03 S3 25 South Asian Society 97,033 7.60 193,146 1.40 S3 42 Home Sweet Rows 61,480 4.81 250,139 1.82 U2 05 Asian Sophisticates 69,584 5.45 358,277 2.60 U2 27 Diverse City 34,771 2.72 498,327 3.62 U2 28 Metro Multiculturals 19,875 1.56 297,664 2.16 U4 31 New World Symphony 56,725 4.44 293,104 2.13 U4 43 Newcomers Rising 49,524 3.88 525,323 3.81
- 12. P a g e | 12 Courtesy of Piinpoint.com Above is a breakdown of the immediate area population and the projections of growth for the next nine years. Niagara (Outlet Collection) Profile Trade Area Courtesy: Environics Analytics SG SESI Name Count % Base Count Base % S1 10 Emptying Nests 13,782 4.89 134,104 0.97 E1 09 Satellite Burbs 23,227 8.24 660,884 4.80 E2 24 Fresh Air Families 16,270 5.77 589,999 4.28 S4 26 Second City Retirees 50,424 17.90 509,304 3.70 T1 54 Serenity Springs 12,321 4.37 202,593 1.47 U5 66 Sunset Towers 15,279 5.42 264,088 1.92 U6 63 Lunch at Tim's 51,210 18.17 565,268 4.10 Toronto Premium Outlets Google Maps shot Population 2010 2011 2015 2017 2020 2025 Growth Household 56 56 70 74 78 85 +52.17% 0 Trade Area Halton (Census Division)Ontario Canada Median Income $91,253.53 $99,699.14 $74,148.26 $70,544.82 0 Trade Area Halton (Census Division)Ontario All 41.1 34.26 33.54 Criteria Halton (Census Division)Ontario Canada 0 Total Pop. 551,113 13,380,594 33,012,449 0 Criteria Trade Area 5 min Drive 10 min Drive 15 min Drive Total Pop. 69.76 39,762 308,212 849,064
- 13. P a g e | 13 Menu items & Exchange rates $1 CAD = 77c USD Red Lobster New York, NY & Brampton, ON 4 Course Feast $17.99 $21.99 22% Shrimp Linguine Alfredo Half $13.99 Full $18.49 Half N/A Full $18.49 0% Ultimate Feast $29.99 $31.99 7% Olive Garden Elmhurst, NY & Winnipeg, MB Cheese Ravioli $13.79 $15.99 16% Chicken Alfredo $16.49 $20.49 24% Tuscan Sirloin $20.49 $25.79 26% Cracker Barrel Fishkill, NY & Proposed Ontario Location Daily Dinner Features $9.99 $11.58 16% Country Dinner Plates $7.99 $9.27 16% Grilled Sirloin Steak $11.99 $13.90 16% Half-Pound Bacon Cheeseburger $9.29 10.78 16% Sources: (LLC, Welcome to Our Menu, 2015), (LLC, Welcome to our Menu, 2015), (Inc D. C., Dinner Menu Item List, 2016), (Inc D. C., Dinner Menu Item List, 2016), (Inc., 2016), (Bank of Canada, 2016)
- 14. P a g e | 14 From the chart on the previous page, the average percentage difference between the American and Canadian prices for our sample menu items was 16%. With that basic knowledge we took the American prices for Cracker Barrel menu items and multiplied it by 1.16 to calculate how much the menu items would cost in Canada. Next is Cover, which is industry lingo for customers served, or turning a table over. In 2015 some research indicates that Restaurants that take reservations can “turn” their tables an average of 1.5 to 2 times per night, three if they’re hopping. Meanwhile a place that takes walk-ins only, on a good night, can see as many as four turns. Some restaurateur’s estimate that’s a 20 to 25 percent difference in revenue, for those popular enough to pull it off. (Krashinsky, 2015). Hypothesis – Target Market The Cracker Barrel chain of restaurants attracts countless Canadians in the U-S, therefore it should have the same effect north of the border. Key Findings - If Cracker Barrel can sustain a table turnover of 1.5 to 2 times per night they could see success in the Canadian market. - The suggested food prices would be affordable to a family even on a budget.
- 15. P a g e | 15 Research Objective - Marketing To determine the right method to market this American chain of country stores to Canadians. - In the United States, Cracker Barrel has utilized many ways of marketing, including billboard advertising for highway drivers. They’ve even switched advertising agencies in the last five years (Lombaerde, 2011). We want to see what would be the best Integrated Marketing Communication would be to get people in the restaurant. Hypothesis - Marketing The same image of the Old Country Store and home cooked meals will appeal to travelers and locals to try something different. Key Findings - The above chart shows some examples of an Integrated Marketing Communication strategy that Cracker Barrel could undertake. This would include an integration of billboards. Outlet Details Television - Four television advertisements during supper hour newscast and primetime programming Radio - Four 30 second ads during all dayparts (morning, midday, drive and evenings) Newspaper Online Toronto Sun, Toronto Star Ambient Advertising Bus Shelter & Billboard Ads Social Media Advertising - Ongoing Brand Awareness
- 16. P a g e | 16 Secondary Research Objectives Financial Reporting 2015 CBOCS Properties Inc. (PG 6) A Cracker Barrel location in Ontario would need to sustain a net income of between 5 and 6 per cent in addition to 69-thousand dollars in average restaurant sales per week.
- 17. P a g e | 17 Financial Reporting CBOCS Properties Inc. PG 10
- 18. P a g e | 18 Limitations of the Study Human Error The Ministry of Transportation numbers obtained for the Windsor locale weren’t supportive for that second location. The population figures also would not sustain the traffic needed to make this venture work. A lot of the data, including traffic numbers, were difficult to find for our team. We also had a hard time finding specific data for table covers. The reason for this could be a competitive advantage for one restaurant over another. Platform Analysis and Diagnosis There’s a significant lack of current data for Canadian Census as well the United States Census Bureau. The Canadian numbers only go back to 2011 and the United States figures are from 2014. In addition to the Ministry of Transportation stats are from 2010, so it’s difficult to show currently what kind of vehicle traffic the Cracker Barrel locations would get. When it comes to Piinpoint and the Environics Analytics software, both programs give you reports on your chosen area based on households, populations, area of interest and other restaurants to fully understand what’s there. It often times covers up where Statistics Canada can’t help you in terms of data for who lives in the area, what’s the average annual income. The projections of future growth was another advantage to using these programs. In terms of limitations I’d like it to include the capability to generate reports on other countries. Especially for this venture, if there was a way to do the work on specific locations or zip codes in the United States that would give us better analytics. We also found that the software, while useful, needs to be more user-friendly.
- 19. P a g e | 19 Conclusions Based on the research we’ve obtained, limitations and error aside, it can be concluded that an expansion into Ontario would be successful for Cracker Barrel Old Country Store. This company has the financial capabilities to undertake this venture, which would include launching a Canadian arm of the corporation. The Cracker Barrel location in Ontario would need to sustain a net income of between 5 and 6 per cent in addition to 69-thousand dollars in average restaurant sales per week (Page 15) (Inc C. P., 2015). If we look at the weekly sales figure in Canadian dollars, taking onto account the average menu item price differential between American and Canadian locations for other restaurant chains, it would be 80-thousand dollars. (Reference: Menu items & exchange rates chart Page 11). Our main location of Halton Hills has the traffic data, population and a promising outlook on future growth that makes the expansion worthwhile. The only other viable location for a Cracker Barrel would be the Outlet Collection at Niagara; Windsor, based on the data we collected, would not be able to support a location. All that being stated it would be suggested that 2015 or 2016 Census data be obtained just to get an updated look on population figures and traffic numbers for both here in Canada and the United States. There would also need to be further investigation of an IMC just because our team looked at data to see if this would work; an advertising firm could better utilize a plan to push the Cracker Barrel brand through a crowded, competitive field of full and fast food service restaurants. Current Cracker Barrel location and original Cracker Barrel store 1969 Lebanon, TN (Source: Cracker Barrel)
- 20. P a g e | 20 References Advertising ratesand dataformedia planning.(2016). Obtenidode CARDOnline: http://cardonline.ca.library.sheridanc.on.ca/public/home.jsf Alvarez,A.(Februaryde 2016). Industry Report72211CA Full Service Restaurantsin Canada. Obtenidode IBISWorld:http://clients1.ibisworld.com.library.sheridanc.on.ca/reports/ca/industry/default.aspx?entid= 1677 Bank of Canada. (8 de April de 2016). Daily Currency Converter.Obtenidode Bankof Canada: http://www.bankofcanada.ca/rates/exchange/daily-converter/ Basu,C. (s.f.). Howto CalculateTable TurnoverRate fora Startup Restaurant.Obtenidode Chron: http://smallbusiness.chron.com/calculate-table-turnover-rate-startup-restaurant-25184.html Bureau,U. S. (Julyde 2015). QuickFactsTable.Obtenidode UnitedStatesCensusBureau: http://www.census.gov/quickfacts/table/PST045215/3682084,3641135,2665820 Canada,G. o.(2011). 2011 Censusof Canada:Topic-basedtabulations.Obtenidode StatisticsCanada: http://www12.statcan.gc.ca/census-recensement/2011/dp-pd/tbt-tt/Rp- eng.cfm?LANG=E&APATH=3&DETAIL=0&DIM=0&FL=A&FREE=0&GC=0&GID=0&GK=0&GRP=1&P ID=102009&PRID=0&PTYPE=101955&S=0&SHOWALL=0&SUB=0&Temporal=2011&THEME=88& VID=0&VNAMEE=&VNAMEF= EnvironicsAnalytics.(2015). Prizm5Snapshots2015. Obtenidode EnvironicsAnalytics: https://en.environicsanalytics.ca/Envision/Content/Support/Reference%20Documents/PRIZM5/ PRIZM5%20Snapshots%202015.pdf Inc, C.P. (2015). CrackerBarrel 2015 AnnualReport.Obtenidode CrackerBarrel: http://files.shareholder.com/downloads/CBRL/1691502095x0x853196/609FCEED-FC18-4EB5- A810-DFEE440189B2/B546HY0_CB_2015_HR.PDF Inc, D. C.(8 de March de 2016). Dinner Menu Item List. Obtenidode Olive GardenItalianKitchen: http://www.olivegarden.ca/menu-listing/dinner Inc, D. C.(8 de March de 2016). Dinner Menu Item List. Obtenidode Olive GardenItalianRestaurant: http://www.olivegarden.com/menu-listing/dinner Inc.,C. P. (2016). Cracker Barrel Fishkill Location.Obtenidode CrackerBarrel: http://www.crackerbarrel.com/menupdfs/STORE_350_LD_MENU_EN.pdf Incorporated,C.P.(2015). Obtenidode crackerbarrel.com: http://files.shareholder.com/downloads/CBRL/1691502095x0x853196/609FCEED-FC18-4EB5- A810-DFEE440189B2/B546HY0_CB_2015_HR.PDF Krashinsky,S.(12 de March de 2015). Turning tables:How technology is shaking up restaurant reservations,and profits.Obtenidode Globe andMail:
- 21. P a g e | 21 http://www.theglobeandmail.com/report-on-business/industry-news/marketing/restaurateurs- turn-tables-with-apps-to-tackle-revenue-sapping-no-shows/article23398249/ LLC, R. L. (2015). Welcome to ourMenu.Obtenidode RedLobster: https://redlobster.ca/menus/dinner/lobster.asp LLC, R. L. (2015). Welcome to OurMenu.Obtenidode RedLobster:https://redlobster.com/menus/ Lombaerde,G.D. (28 de Julyde 2011). Cracker Barrel switchesad agency. Obtenidode Nashville Post: http://www.nashvillepost.com/business/area-stocks/article/20459609/cracker-barrel-switches- ad-agency PattisonOutdoor.(2013). 2013 RateCard. Obtenidode PattisonOutdoor:pattisonoutdoor.com Transportation,M. o.(31 de Decemberde 2010). Ontario ProvincialHighwaysTrafficVolumes On Demand.Obtenidode Ministryof Transportation: http://www.raqsb.mto.gov.on.ca/techpubs/TrafficVolumes.nsf/fa027808647879788525708a00 4b5df8/f51986ea499a13b08525745f006dd30b/$FILE/Provincial%20Highways%20Traffic%20Vol umes%202010%20AADT%20Only.pdf