packtype reference guide march, 2011. 2 standard bars$ 895$ 929+ 3.8% king size$ 473$ 545+15.1% cpc$...
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Packtype Reference Guide
March, 2011
2
Standard Bars $ 895 $ 929 + 3.8%
King Size $ 473 $ 545 +15.1%
CPC $ 598 $ 628 + 4.9%
SUBs $ 68 $ 93 +46.3%
8-Packs $ 286 $ 305 + 7.5%
6-Packs $ 198 $ 204 + 2.5%
TH Bars $ 180 $ 168 -6.5%
Big Box $ 84 $ 89 + 4.6%
TOTAL $2782 $2961 +6.4%
Focus Pack Performance Projections
PacktypePacktype 20102010 2011*2011* % Δ% Δ
Focus Packtypes are over 60% of THC volume and projected to grow +6.4% YOY in 2011
* March 2011 consensus estimate
3
Hershey’s is the Instant Consumables market share leader
IC Candy / Market ShareFDMxC 52 Week Ending 2/19/11
Source: Nielsen
IC Candy / $ ChgFDMxC 52 Week Ending 2/19/11
All Other 13.4%
Nestle 9.4%
Mars/Wrigley 37.4%
Hershey 39.8%
Hershey
Dollar Chg
$139.8M
Mars
$118.4M
Nestle
$1.7M
4
Standard Bar/ King Size
Multiple candy purchases in the same trip
– 81% of candy trips are made where both IC and TH candy is purchased
Once a candy buyer decides to make a purchase, 85% will make the purchase and not consider any alternative items such as salty snacks
Brands matter - Reasons for impulse purchases:
– Noticed packaging of favorite brand and immediately developed a craving for it
Source: Nielsen HomeScan Panel 1/09 ; SmartRevenue Aisle study 2007 ; 2008 C-Store Close-up (Meyers Research)
Quick FactsQuick Facts UsageUsage Merch StrategyMerch Strategy
Key InsightsKey Insights
Purchase decision process
– Usage occasion
• Reward
• Comfort
• Escape from boredom
– Choose brand
• From personal menu
• Brand fits need state
• Variety critical
– Pack-type pre-determined
Primary Consumer: 91% of purchases are for themselves
86% of bars purchased are consumed within 30 minutes
When consumers can’t find what they want, 25% will walk away from the purchase
Display in high traffic locations
– 75% of purchase decisions are in-store
– Create displays with Brands consumers are familiar with
5
Hershey’s is the Take Home market share leader
TH Candy / Market ShareFDMx 52 Week Ending 2/19/11
Source: Nielsen
TH Candy / $ ChgFDMx 52 Week Ending 2/19/11
All Other 26.5%
Stover 4.1%
Lindt/Ghir 4.9%
Nestle 6.1%
Private Label 6.2%Mars/Wrigley 21.8%
Hershey 30.4%
Hershey
Dollar Chg
$45.1M
Mars
$33.4M
Private Label
$19.9M
6
Chocolate Packaged Candy
Multiple candy purchases in the same trip
– 70% of large bag consumers bought something else – other CPC, Standard Bars & Snack Size
– 60% of small bag consumers bought something else – other CPC, Standard Bars & 8pks
– 31% of CPC purchasers buy more than one bag per shopping trip across Multiple Sizes
Brands are the key purchase drivers
– 50% of shoppers will not substitute brands when they can’t find their favorite
Source: Lieberman Take Home A&U September 2008 ; Candy Dish Omnibus2008; Nielsen Total US FDMx -52 week ending 4/17/10
Quick FactsQuick Facts UsageUsage
Key InsightsKey Insights
Candy Dish
– 60% of consumers own a candy dish
– Prefer wrapped
– Candy Dish users eat more than non candy dish users
Self Indulgence/Reward
Portion Control
HSY Share: 41.2%%
Sales Gain: +4.0%
Primary Buyer: Female 25-54
Average bag lasts 7 days
Display in high traffic locations
– 72% of brand decisions are in-store
Rotate features between 10-12oz and 17-20oz Bags
Create Candy Dish Displays around core CPC Brands and also Trade Up CPC
Merch StrategyMerch Strategy
7
Hand To Mouth SUBs
HTM is differentiated from Wrapped Candy – Hold in your hand– Small pieces – Portion size control – Focused on “Fun Nibbling”
Quick FactsQuick Facts UsageUsage
Key InsightsKey Insights
At Home and On the Go Snacking
Core consumer is adult 18-54 yrs looking for iconic brands in a snackable form
HTM products fulfill the following functional needs:
– Bite-sized– Fun and convenient to eat– Easy to share– Resealable package
Hand-to-Mouth (HTM) represents over 16% of total chocolate sales
The H2M segment grew $19.5M or 9.5% vs. PY
PIECES drove 67% of H2M segment growth
Capitalize on growing H2M segment by placing Mods and Shippers in high traffic locations
Source: Lieberman Take Home A&U September 2008 ; Candy Dish Omnibus2008 FDMx IRI ending 4/19/09
Merch StrategyMerch Strategy
8
Trade Up CPC
HERSHEY’S BLISS Trial and Repeat continues to outperform new product norms
– Brand Awareness is 70% for Targeted users and is growing
Multiple candy purchases in the same trip
– Consumers purchase Trade Up CPC and other candy items in the same trip
Brands are the key purchase drivers
– 50% of shoppers will not substitute brands when they can’t find their favorite
Source: Lieberman Take Home A&U September 2008 ; Candy Dish Omnibus2008 FDMx IRI ending 4/19/09
Quick FactsQuick Facts UsageUsage
Key InsightsKey Insights
Small Personal Reward
Candy Dish
– 60% of consumers own a candy dish
– Prefer wrapped
– Candy Dish users eat more than non candy dish users
Sharing
Portion Control
Trade-Up Everyday CPC is a $230M category
– Bliss represents a 12.1% share of TU CPC
Trade-Up brands account for 18% of Packaged Candy
Primary Buyer: Female 25-49
Trade Up Packaged candy grew at double digit rates
Average bag lasts 8 days
Display in high traffic locations
– 72% of brand decisions are in-store
Create Candy Dish Displays around core CPC Brands to include Trade Up CPC
Merch StrategyMerch Strategy
9
8-Packs
Variety and value are the primary drivers motivating 8-Pack purchasers to buy multiple brands during their shopping trip
Value
– 92% of consumers consider 8-Packs a good/very good value.
Source: Lieberman Take Home A&U September 2008 ; Spectra Behavior Scope 2007; Nielsen Total US FDMx -52 week ending 4/17/10
Quick FactsQuick Facts UsageUsage
Key InsightsKey Insights
On the Go Activities
Family Snacking and lunch treats
Portion Control
– Ability to provide variety and brand favorites for everyone
HSY Share: 49.5%
Share Gain: 0.1%
Primary Buyer: Moms & heads of households with kids
Consumers purchase multiple 8-Pack brands during their shopping trip
Hershey’s 8-Pack brands command a 50% share of all 8-Pack in-store merchandising
Display 8-Packs in multiple, high-traffic locations
Merch StrategyMerch Strategy
10
6-Packs
Multiple candy purchases in the same trip
– 68% of consumers who purchased a 6-Pack, purchase another packtype during the same shopping trip
Value
– 89% of consumers consider 6-Packs a good/very good value based on a per bar comparison to Standard Bars (everyday and promoted prices)
Source: Lieberman Take Home A&U September 2008 ; Spectra Behavior Scope 2007; Nielsen Total US FDMx -52 week ending 4/17/10
Quick FactsQuick Facts UsageUsage
Key InsightsKey Insights
S’MORES and Family Activities
Family Snacking and lunch treats
Portion Control
– Ability to share with family members and friends
– Individually wrapped servings
HSY Share: 82.5%
Share Gain: +3.1%
Sales Gain: +5.9%
Primary Buyer: Head of Household with older kids
Consumers keep on average two 6-Packs in household inventory
Grocery & Mass account for 82% of 6-Pack retail volume
49% of 6-Pack volume is sold with quality merchandising support
Display Hershey’s 6-Packs May – Sept to support S’MORES Season and family activities
Merch StrategyMerch Strategy
11
XL/Giant Bars
Multiple candy purchases in the same trip
– 63% of consumers who purchased an XL bar, purchase another packtype during the same shopping trip
– Standard Bar, Snack Size, and Peg Bag were the most commonly purchased packtypes
Value
– 91% of consumers consider XL Bars a good/very good value
Source: Lieberman Take Home A&U September 2008 ; Spectra Behavior Scope 2007; Nielsen Total US FDMx -52 week ending 4/17/10
Quick FactsQuick Facts UsageUsage
Key InsightsKey Insights
Movies and Snacking
Personal Snacking
Portion Control
– Ability to share with family members
– Resealable package
HSY Share: 87.5%
Consumers age 45 & older account for 69% of XL volume
Consumers keep on average two XL bars in household inventory
Display in high traffic locations
– 72% of brand decisions are in-store
Display in secondary locations to increase consumer awareness and create impulse purchases
Merch StrategyMerch Strategy
12
Big Box
93% of consumers who purchased a Big Box, purchase another packtype during the same shopping trip - Standard Bar, 8-Pack and Peg are the most commonly purchased packtypes
Product uniqueness and variety are primary drivers motivating Big Box purchases
Value
– 88% of consumers consider Big Boxes a good/very good value
Source: Lieberman Take Home A&U September 2008 ; IRI FDMx 52 wk ending 4/19/09
Quick FactsQuick Facts UsageUsage
Key InsightsKey Insights
Movies and Snacking
Watching movies/going out to movies
Portable and pourable on-the-go snacking
Portion Control
Top 4 selling Big Box brands:– Good & Plenty– Milk Duds– Whoppers– Reese’s Pieces
36% of consumers purchase Big Boxes when not on sale
– Variety– Unique candy type
Cross-Merchandise in secondary locations:
– Movie rentals– Pharmacy
Display in high traffic locations
– 75% of purchase decisions are in-store
Merch StrategyMerch Strategy
13
% Vol Inc. by Merchandising Condition
FDMx - 52 Wk ending 2/19/11
Source: Nielsen
Merchandising generates significant lift for both IC and TH packtypes
King Size
%LiftF&D% Lift
AnyDisplay
235.0%
163.8%
Standard Loose
250.1%
170.6%
CPC
273.7%
141.8%
6 packs
406.2%
235.4%
8 packs
246.7%
142.3%
TH Bars
333.3%353.9%
14
Hershey
Dol -Any Disp
$84.7M
Mars/Wrigley
$65.2M
Nestle
$15.3M
Pearson
$2.4M
Tootsie Roll
$2.0M
Topps
$1.5M
Perfetti
$0.6M
Ferrero
$0.6M
Hershey’s drives more Instant Consumable display sales than competition
IC / Dollar Sales, Any Disp. FDMx - 52 Wk ending 2/19/11
Source: Nielsen
15
HERSHEY’S IC mods trigger impulse purchase and are easy to shop and refill
2-sided unit provides improved product presentation
Shoppable from all layers
High impact brand graphics
4-sided, shoppable merch unit
High impact brand graphics
Easy to shop and refill birdfeeder trays
16
Hershey
Dol -AnyDisp
$284.3M
Mars/Wrigley
$161.8M
Nestle
$52.7M
PrivateLabel
$47.1M
TootsieRoll
$37.8M
Stover
$29.9M
Lindt/Ghir
$24.7M
Ferrero
$17.3M
Brachs
$12.6M
Just Born
$11.5M
Hershey’s drives more Take Home display sales than competition
TH / Dollar Sales, Any Disp. FDMx - 52 Wk ending 2/19/11
Source: Nielsen
17
HERSHEY’S TH mods trigger impulse purchase and are easy to shop
2-sided unit provides improved product presentation
Shoppable from all layers
2-sided, shoppable, stackable DRC’s
New high impact side panel graphics
Easy to refill and maintain using new stackable DRC’s
18
HERSHEY’S new Std Bar/CPC mods blend the top selling packtypes in IC and TH
2-sided, shoppable, stackable DRC’s and birdfeeder trays
High impact, branded side panel graphics
Easy to shop and refill both sides
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