category audit by: brayden wood. 6 total stores audited: wal-mart, target, sam’s, walgreens,...
TRANSCRIPT
Introduction 6 total stores audited: Wal-Mart, Target,
Sam’s, Walgreens, Dollar General and Harps
Supplier retains most of control:- 2 leading brands (Sunshine and
Pepperidge Farms.)- Strong brand loyalty/repurchase of
brands
Maintain Product/ Profit Contribution
Major Players
Brand # of SKU’s
# Unique SKU’s
Sunshine 47 32
Pepperidge Farm
31 18
Private Label 7 7
Austin 8 5
93 62
1.) Sunshine
2.) Pepperidge Farms
3.) Private label
4.) Austin
- Gives indication that this category is top heavy in brands (Sunshine and Pepperidge Farms)
- Sunshine leads market with 47 different SKU’s and 32 unique SKU’s
- Indication of power for suppliers of Sunshine and Pepperidge Farm against retailers.
Summary of stores
- Wal-Mart provides the most depth (47 SKU’s at 41.9%)- Wal-Mart also leads category in Unique SKU’s (20)
- Trend: Large retailers held most unique SKU’s. One dominant retailer in Wal-Mart (Target consumer matches demographic with low prices)
Store Location SKU's Unique SKU's% of CategoryAudited byWal-Mart MLK (6th) 47 20 41.90% Brayden WoodTarget Fayetteville 16 9 14.90% Brayden WoodHarps Garland 18 6 16.10% Brayden WoodWalgreen's Joyce 14 3 12.50% Brayden Wood
Dollar GeneralGarland 10 0 8.90% Brayden WoodSam's Fayetteville 7 7 6.25% Brayden Wood
Demographic Breakdown Lower income
Families- Control Brands and Stauffers.
Upper income – Main brand items! Pepperidge Farm and Sunshine
Pepperidge Farm has highest total $ volume within income bracket (148.6)
Stronger brands are purchased by higher income families.
CTL BR - CRACKERS - CHEESE
PEPPERIDGE FARM GOLDFISH - CRACKERS -
STAUFFER'S - CRACKERS - CHEESE
SUNSHINE CHEEZ- IT - CRACKERS - CHEESE
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
TOTAL HOUSEHOLDS 100.0 100.0 100.0 100.0
INC - <$20,000 131.1 46.6 88.8 62.1INC - $20,000-29,999 129.7 48.5 115.1 83.9
INC - $30,000-39,999 109.5 89.5 115.4 99.2
INC - $40,000-49,999 95.3 76.8 94.8 96.1
INC - $50,000-69,999 110.2 123.9 124.3 110.3INC - $70,000-99,999 75.7 140.2 96.7 118.8
INC - $100,000+ 59.6 148.6 74.9 123.5
Demographics Cont.CTL BR - CRACKERS - CHEESE
PEPPERIDGE FARM GOLDFISH - CRACKERS - CHEESE
STAUFFER'S - CRACKERS - CHEESE
SUNSHINE CHEEZ- IT - CRACKERS - CHEESE
DOLLAR VOLUME
INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME
INDEX
DOLLAR VOLUME
INDEX
TOTAL HOUSEHOLD
S
100.0 100.0 100.0 100.0
SIZE - 3-4 MEM
110.8 163.6 132.9 131.6
SIZE - 5+ MEM152.7 210.4 259.5 168.7
AGE FH - UNDER 35
123.4 175.0 188.0 116.3
KIDS - ANY < 18
132.2 193.7 194.6 149.0
KIDS - ANY < 6
125.3 258.4 246.4 140.8
KIDS - ANY 6-12
144.9 202.0 256.2 164.7
KIDS - ANY 13-17 137.5 161.4 148.3 157.0
Key Indicator: DVI > 120
Key demographics:1.) Size family 5+
2.) Kids any < 18- Primarily ages 6-12
years
3.) Age FH head under 35
Summary: - Large families!!! With
children under 18.- Younger families with
Female Head tend to purchase more
The Cheese Cracker Consumer
“Maintaining” the Category
ITEM $ (000) DOLLAR SHARE
ITEM BUYERS (000)
ITEM PENETRATION
% REPEAT BUYERS (% 2+ TIME BUYERS)
N=RAW BUYERS
TOTAL U.S. 150,066,179.2
36.5 116,061.4 100.0 100.0 63,337.0
CTL BR - CRACKERS - CHEESE
TOTAL U.S.
17,565.7 2.3 6,442.3 5.6 30.8 3,662.0
PEPPERIDGE FARM GOLDFISH - CRACKERS - CHEESE
TOTAL U.S.
177,357.2 23.3 23,276.3 20.1 47.4 12,373.0
STAUFFER'S - CRACKERS - CHEESE
TOTAL U.S.
12,996.3 1.7 3,342.9 2.9 34.9 1,814.0
SUNSHINE CHEEZ- IT - CRACKERS - CHEESE
TOTAL U.S.
334,906.0 44.0 35,168.6 30.3 55.1 18,932.0
Total Households
- Cheese Snack cracker - “maintain “category.
- HIGH GROSS MARGINS + low sales volume= Maintain Category
- Sales volume of category= .3% of entire Dry Grocery Industry (Reasoning for low sales volume)
- High % of repeat buyers indicates loyalty to brands
Brand DominationTop 3 brands (SKU’s)1.) Sunshine
2.) Pepperidge Farm
3.) Stauffers
• Wal-Mart on 6th Street leads retailers with number of total SKU’s with 42.• Sunshine led brands in number of SKU’s with 51 total SKU’s• Sunshine and Pepperidge farm’s gross margins- VERY SIMILAR and
SURPRISING!!! Sunshine= 50.65% average gm% V.S Pepperidge farm= 44.75% average gm%
Category ScorecardMFR Harps Wal-Mart Target Walgreens Sam's Dollar GeneralPepperidge farm N 5 13 8 4 1 5
% of gm 49.44% 35.96% 54.55% 55.37% 27.41% 45.80%% of Total N 23.80% 27.70% 50.10% 28.60% 14.30% 55.60%% of Total Sum 23.40% 28.70% 50.00% 34.60% 12.00% 55.60%
Stauffers N 5% of gm 27.55%% of Total N 23.80%% of Total Sum 21.30%
Sunshine N 7 29 3 5 2 5% of gm 23.01% 64.04% 45.45% 44.63% 72.59% 54.20%% of Total N 33.30% 61.70% 18.80% 35.70% 28.60% 44.40%% of Total Sum 34.00% 56.50% 19.00% 26.90% 24.00% 44.40%
Total N 17 42 11 9 3 10% of gm 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%% of Total N 80.90% 89.40% 68.90% 64.30% 42.90% 100.00%% of Total Sum 78.70% 85.20% 69.00% 61.50% 36.00% 100.00%
Stocking Rate/ Dominating Brand(s)
Stocking Rate # of retailers Stocking percentPepperidge Farm 6 28.70%
Sunshine 6 23.90%Stauffers 1 16.60%
• The leading two brands in the category Pepperidge Farm and Sunshine had the leading stock percent for the category.• Brand Stock rate is not as high due to number of stores and number of different SKU’s found in each location.
• Stauffers was found in only one location (Harp’s), giving it its very low stock rate. There is room for retailers to add depth in this area due to Stauffer’s adding influence in the lower income markets.
• Pepperidge Farm had higher Stocking rate, though Sunshine has more SKU’s and variety on shelf.
storesSkus
depths
)(
Private Label? Private label only contained those from Target and Wal-Mart. (7 total SKU’s) out
of 105.
Demographics reveal that those earning 30,000 or less to purchase control brand items.
I believe that since Sunshine and Pepperidge Farm control the higher end consumers ($60,000+), there is room and potential for private label to influence lower markets.
It will not be the name of the Private Label to sell the product, simply the price, so selling that “low price point” I believe will allow a control brand to grow and flourish in targeting lower income consumers.
CTL BR - CRACKERS - CHEESE
DOLLAR VOLUME INDEX
TOTAL HOUSEHOLDS 100.0INC - <$20,000 131.1
INC - $20,000-29,999 129.7
Private Label Cont. Added benefit for retailers in having private brand implemented in store:
1.) It allows there to be a product that’s low in cost, considering it’s your manufacturers creating the product for you.
2.) It will provide a product that will provide more gross margins (usually) within your store due to low costs.
3.) Appeals to a lower income demographic that may not have been reached before.
4.) It will provide the retailer more power over suppliers when they have their own line taking space on the shelves, potentially decreasing the SKU amount of other brands within their store.
Final Recommendations
- Adding more presence of private label could reach out to more lower income demographic, provide more power to retailer, and add a product that has higher gross margins within store.
- For Wal-Mart and Target who have private label brands already, increase your assortment to where you have a wider variety for the consumer.
- In the long run, eliminate smaller impact brands like Austin and Lance and replace them with private label brands. Show them the power of your retailer!