marketing analytics report - aditya, justin, kevin and shweta

Marketing Analytics ReportMKTG 56367 Marketing Analytics

April 13th 2016

Prepared for: Paul Sarkissian & CBOCS Properties Inc.

Prepared by: Shweta Bhagat, Justin Dominic, Kevin Jeffrey & Aditya

Suryawanshi

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Table of ContentsExecutive Summary.........................................................................3

Research...............................................................................................4

Research Methodology.................................................................4

Analysis and Findings......................................................................5

Research Objective - Feasibility................................................5

Halton Hills (L7G Postal Code)................................................5

Niagara (L0S Postal Code)........................................................6

Windsor (N8X Postal Code)......................................................7

Hypothesis - Feasibility................................................................8

Research Objective – Target Market.......................................9Halton Hills (Toronto Premium Outlets) L7G Postal Code.................................................................................................9

Niagara (Outlet Collection) Profile Trade Area................10

Hypothesis – Target Market......................................................12

Research Objective - Marketing..............................................13

Hypothesis - Marketing...............................................................13

Secondary Research Objectives................................................14

Limitations of the Study................................................................16

Human Error...................................................................................16

Platform Analysis and Diagnosis.............................................16

Conclusions.......................................................................................17

References.........................................................................................18

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Executive SummaryThe 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

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ResearchResearch MethodologyOur 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.

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Analysis and FindingsResearch Objective - FeasibilityTo 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)

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(Canada, 2011)

Ministry of Transportation Traffic Numbers (2010)

401 TRAFALGAR RD IC -MILTON JAMES SNOW PKWY ICDistance - 4.2kmAnnual Average Daily Traffic - 130,700

(Transportation, 2010)

Niagara (L0S Postal Code)Census of Canada Data (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

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Age Sex (3)


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


Median Age 48.3 47.7 48.9

(Canada, 2011)

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Ministry of Transportation Traffic Numbers (2010)

QEW GLENDALE AVE IC -TO HWY 55 W END GARDEN CITY SKYWAY BRIDGE Distance - 4.3kmAnnual Average Daily Traffic - 82,500

(Transportation, 2010)

Windsor (N8X Postal Code)Census of Canada Data (2011)

Age Sex (3)


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


Median Age 39.7 39.0 40.3

(Canada, 2011)

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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 - FeasibilityBased 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.

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- Both Halton Hills and Niagara have larger population numbers when comparing it to

the cities/towns in the United States.

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Research Objective – Target MarketTo evaluate the profile of customers that will utilize a different, more economical food

option.

Halton Hills (Toronto Premium Outlets) L7G Postal CodeCourtesy: Environics Analytics

SG SESI Name Count % Base Count Base %U1 02 Urbane Villagers 11,271 0.88 150,262 1.09U1 08 Boomerang City 11,080 0.87 305,393 2.22S1 06 Kids & Careers 101,521 7.95 631,887 4.59E1 09 Satellite Burbs 49,155 3.85 660,884 4.80S2 16 Pets & PCs 108,313 8.48 571,916 4.15S2 18 Management Material 21,392 1.68 157,702 1.14S3 14 Diversity Heights 68,512 5.37 229,584 1.67S3 15 Heritage Hubs 131,349 10.29 617,381 4.48S3 20 South Asian Achievers 263,231 20.61 417,932 3.03S3 25 South Asian Society 97,033 7.60 193,146 1.40S3 42 Home Sweet Rows 61,480 4.81 250,139 1.82U2 05 Asian Sophisticates 69,584 5.45 358,277 2.60U2 27 Diverse City 34,771 2.72 498,327 3.62U2 28 Metro Multiculturals 19,875 1.56 297,664 2.16U4 31 New World Symphony 56,725 4.44 293,104 2.13U4 43 Newcomers Rising 49,524 3.88 525,323 3.81

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)

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Population 2010 2011 2015 2017 2020 2025 GrowthHousehold 56 56 70 74 78 85 +52.17%

0 Trade Area Halton (Census Division)Ontario CanadaMedian Income $91,253.53 $99,699.14 $74,148.26 $70,544.82

0 Trade Area Halton (Census Division)OntarioAll 41.1 34.26 33.54

Criteria Halton (Census Division)Ontario Canada 0Total Pop. 551,113 13,380,594 33,012,449 0

Criteria Trade Area 5 min Drive 10 min Drive 15 min DriveTotal Pop. 69.76 39,762 308,212 849,064

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 AreaCourtesy: Environics Analytics

SG SESI Name Count % Base Count Base %S1 10 Emptying Nests 13,782 4.89 134,104 0.97E1 09 Satellite Burbs 23,227 8.24 660,884 4.80E2 24 Fresh Air Families 16,270 5.77 589,999 4.28S4 26 Second City Retirees 50,424 17.90 509,304 3.70T1 54 Serenity Springs 12,321 4.37 202,593 1.47U5 66 Sunset Towers 15,279 5.42 264,088 1.92U6 63 Lunch at Tim's 51,210 18.17 565,268 4.10

Toronto Premium Outlets Google Maps shot

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Menu items & Exchange rates

$1 CAD = 77c USD

Red LobsterNew 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 GardenElmhurst, 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 BarrelFishkill, 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)

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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 MarketThe 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.

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Research Objective - MarketingTo 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 - MarketingThe 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

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Secondary Research ObjectivesFinancial 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.

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Financial Reporting CBOCS Properties Inc. PG 10

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Limitations of the StudyHuman ErrorThe 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 DiagnosisThere’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.

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ConclusionsBased 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.

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Current Cracker Barrel location and original Cracker Barrel store 1969 Lebanon, TN (Source: Cracker Barrel)

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ReferencesAdvertising rates and data for media planning. (2016). Obtenido de CARDOnline:

http://cardonline.ca.library.sheridanc.on.ca/public/home.jsf

Alvarez, A. (February de 2016). Industry Report 72211CA Full Service Restaurants in Canada. Obtenido de

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. Obtenido de Bank of Canada: http://www.bankofcanada.ca/rates/exchange/daily-converter/

Basu, C. (s.f.). How to Calculate Table Turnover Rate for a Startup Restaurant. Obtenido de Chron: http://smallbusiness.chron.com/calculate-table-turnover-rate-startup-restaurant-25184.html

Bureau, U. S. (July de 2015). QuickFacts Table. Obtenido de United States Census Bureau: http://www.census.gov/quickfacts/table/PST045215/3682084,3641135,2665820

Canada, G. o. (2011). 2011 Census of Canada: Topic-based tabulations. Obtenido de Statistics Canada: 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&PID=102009&PRID=0&PTYPE=101955&S=0&SHOWALL=0&SUB=0&Temporal=2011&THEME=88&VID=0&VNAMEE=&VNAMEF=

Environics Analytics. (2015). Prizm5 Snapshots 2015. Obtenido de Environics Analytics: https://en.environicsanalytics.ca/Envision/Content/Support/Reference%20Documents/PRIZM5/PRIZM5%20Snapshots%202015.pdf

Inc, C. P. (2015). Cracker Barrel 2015 Annual Report. Obtenido de Cracker Barrel: 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. Obtenido de Olive Garden Italian Kitchen: http://www.olivegarden.ca/menu-listing/dinner

Inc, D. C. (8 de March de 2016). Dinner Menu Item List. Obtenido de Olive Garden Italian Restaurant: http://www.olivegarden.com/menu-listing/dinner

Inc., C. P. (2016). Cracker Barrel Fishkill Location. Obtenido de Cracker Barrel: http://www.crackerbarrel.com/menupdfs/STORE_350_LD_MENU_EN.pdf

Incorporated, C. P. (2015). Obtenido de 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. Obtenido de Globe and Mail:

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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 our Menu. Obtenido de Red Lobster: https://redlobster.ca/menus/dinner/lobster.asp

LLC, R. L. (2015). Welcome to Our Menu. Obtenido de Red Lobster: https://redlobster.com/menus/

Lombaerde, G. D. (28 de July de 2011). Cracker Barrel switches ad agency. Obtenido de Nashville Post: http://www.nashvillepost.com/business/area-stocks/article/20459609/cracker-barrel-switches-ad-agency

Pattison Outdoor. (2013). 2013 Rate Card. Obtenido de Pattison Outdoor: pattisonoutdoor.com

Transportation, M. o. (31 de December de 2010). Ontario Provincial Highways Traffic Volumes On Demand. Obtenido de Ministry of Transportation: http://www.raqsb.mto.gov.on.ca/techpubs/TrafficVolumes.nsf/fa027808647879788525708a004b5df8/f51986ea499a13b08525745f006dd30b/$FILE/Provincial%20Highways%20Traffic%20Volumes%202010%20AADT%20Only.pdf