Discussion of Findings Generation Y: The Future Only of Cracker Barrel patrons are Millennials. This upcoming generation of young people and young families represent a growing part of the market share. In time, they will be the majority of the companys potential customer base. Cracker Barrel should adjust its marketing strategy to invest in the future. Millennials’ Home Away from Home: Why Not Cracker Barrel The younger crowd gets comfortable at Starbucks or Panera with their laptops and coffee, taking advantage of the free WiFi hotspots and collaborative environments.
They want to multitask. They want to socialize with their friends. They want to study for their exam or read the Wall Street Journal. Right now they can’t do those things over an “honest-to-goodness home-style meal”, so they’re not going to Cracker Barrel. If they are, theyre not lingering. The companys mission is to please people. Imagine if Cracker Barrel expanded its marketing strategy to satisfy young people. Coffee: More Choices Cracker Barrel Premium Blend Coffee is currently the only coffee option on the menu. This may dissuade coffee lovers from frequenting the establishment.
Cracker Barrel could consider contracts with regionally famous coffee roasters. Adding to the choices and quality would tempt younger patrons to try a cup and stay awhile. Cracker Barrel Foundation Scholarship Program: Light Footprint Scholarship Winners: Fifty-five $ 1500 scholarships annually. Student employees want more than just the possibility of winning scholarship money for college. They desire ongoing loyalty and support. Cracker Barrel scholarship winners are grateful for the companys investment. But is the $1 500 cap an unspoken representation of how far Cracker Barrel will go to upport them?
Cracker Barrel can do more. What if student employees were given scholarships of $2000 per year in return for local college enrollment, active service in their schools and communities, solid teamwork and leadership abilities, a good work ethic, and a strong desire to succeed? Loyalty begets loyalty. The Millennials in all 620 Cracker Barrel communities could trust the company to support their dreams. That devotion would elevate Cracker Barrel to hero status in the eyes of the younger crowd, attracting future employees and patrons alike.
Marketing Campaign: A Better Future Cracker Barrel’s advertising focus lies with its current success and doesn’t capture the younger customer demographic. This could negatively affect future profit. If Cracker Barrel expands its overall strategy to welcome Millennials, new advertising campaigns could play a key role in getting that message across. They would beckon the younger crowd to come experience their new “home away from home”. mplementation: Can Do Length: One year. Initial Cost: $1. 6 million. Marketing: $50k. WiFi Install: Scholarships: $1. 5 million.
Annual cost: $1. 55 million. Marketing: $25k. 525k. WiFi: Additional costs will not affect the quarterly dividends of $0. 75 per share or the 19% increase in diluted EPS. These expenses would cause a 10% decrease in Cracker Barrel’s reinvestment strategy in the first year which would rebound the following year according to projected earnings. These estimates represent an affordable strategy for building long term success for Cracker Barrel. nterpretation Cracker Barrel wants a solution that will ensure value is consistently added to its stock over the long term.
There is a big piece missing to that success story. Millennials are a growing part of the market share that the company has not targeted. This younger demographic can be charmed by the Cracker Barrel sensation with several strategic moves. The company could install WiFi in all 620 locations. Young patrons will bring their laptops and friends and do everything one does at Starbucks or Panera with one enticing addition: the Cracker Barrel home-style country meal. Cracker Barrel could also expand its coffee menu.
Contracts with regionally famous coffee roasters would add uality coffee choices to an already tempting communal environment. Patrons of all ages would spend more and stay longer. In addition, the Cracker Barrel Foundation Scholarship Program could be expanded to establish long term relationships with its student employees by guaranteeing annual $2000 scholarships in exchange for meeting program requirements. The company’s image would soar and draw in the younger crowd anxious for an employer invested in their future. All these changes could be announced by a fresh marketing campaign led by two television advertisements.