Catsup

Bobby Thompson

Sara Rogers

Why Catsup?

• Relatively small category

• Sales in US– $488,292

• Suppliers in control• Heinz- $281,805 = 57.7%

Suppliers• H.J. Heinz - Heinz• Conagra – Hunts• Del Monte Fd - Del Monte • Birds Eye Foods - Brooks• International Classic Foods - Kitchen Combos • Private Label

– Great Value– Best Choice– Always Save– Market Pantry– Clover Valley– Stokely’s– Albertsons

• Dominant brand– Heinz 57.7%

• Struggling suppliers– Brooks 0.2%– International Classic Foods ?%

SKUs

• 51 SKUs

• Heinz 32oz EZ Squeeze was found all stores except Dollar General in Elkins.

Retailers Audited13 retailers

• Wal-Mart– 6th Street, mall, Neighborhood Market on Crossover

• Harps – Elkins and Wedington

• Food Pyramid in Tulsa• Walgreens Joyce• Target by the mall• Kmart in Springdale• Price Cutter in Springdale• IGA

– School and College• IGA on College had the deepest assortment of SKUs at 26

• Dollar General in Elkins

Battle For ShelfspaceReport

4.2% 6.5% 3.5%

4.5% 8.7% 3.8%

1 2 1

20.8% 27.4% 50.0% 22.8% 26.1% 19.5%

22.7% 26.1% 50.0% 23.1% 28.6% 31.8%

5 6 1 6 6 7

2.1% 4.8% 5.3% 8.7% 5.7%

4.5% 4.3% 3.8% 9.5% 9.1%

1 1 1 2 2

39.6% 30.6% 50.0% 38.6% 41.3% 25.2%

31.8% 30.4% 50.0% 34.6% 42.9% 40.9%

7 7 1 9 9 9

5.3%

11.5%

3

33.3% 30.6% 24.6% 23.9% 49.6%

36.4% 30.4% 23.1% 19.0% 18.2%

8 7 6 4 4

100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

22 23 2 26 21 22

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

N

MFRBirds Eye Foods

ConAgra

Del Monte Fd

H. J. Heinz

Internat ionalClassic Foods Inc.

Private Label

Total

FPT-F HPW-F KMART-F IGAC-F WMNM-F WM6-F

Battle for Shelfspace

• Winner – Heinz

• Surprising loser– Del Monte

Unique display at IGA on School

Gross Margin

Report

.589 .527 .531

1 2 1

.406 .406 .517 .408 .319 .273

5 6 1 6 6 7

.628 .655 .520 .509 .509

1 1 1 2 2

.373 .440 .427 .467 .357 .314

7 7 1 9 9 9

.635

3

.572 .578 .570 .436 .436

8 7 6 4 4

.474 .490 .472 .501 .376 .341

22 23 2 26 21 22

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

MFRBirds Eye Foods

ConAgra

Del Monte Fd

H. J. Heinz

Internat ionalClassic Foods Inc .

Private Label

Total

FPT-GM HPW-GM KMART-GM IGAC-GM WMNM-GM WM6-GM

GM by # StoresReport

.657 .520 .635 .199

2 1 3 2

.351 .315

1 1

.644 .579 .615 .430 .393

2 3 2 6 7

.649 .505 .492

1 1 1

.358 .412 .412

1 1 1

.513 .547 .526 .398 .385

5 6 6 1 1

.495 .522 .522 .470 .456

2 2 2 1 1

.350 .452 .442 .334 .285

4 4 5 5 4

.446 .459 .425 .370 .376

3 3 3 3 2

.407 .444 .465 .308 .308

1 1 1 1 1

.433 .265 .517 .273 .265 .265

1 1 1 1 1 1

.342 .382 .427 .405 .231 .231

1 1 1 1 1 1

.474 .490 .472 .501 .376 .341

22 23 2 26 21 22

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Mean

N

Store1

2

3

4

5

6

7

8

9

10

11

12

Total

FPT-GM HPW-GM KMART-GM IGAC-GM WMNM-GM WM6-GM

Gross Margin

• Food Pyramid's Albertsons has the highest GM. High price on a private label.

• GM by Retailer– Wal-Mart has lower GM due to lower price on leading brands.– IGA on College highest due to International Classic Foods.

• Estimate that private label cost bout $.02 per ounce. Yielded 50-60% gross margin.

• Leading brand’s cost per ounce was adjusted (higher-small size, specialty ; lower-large size) to get GM around 30-40%.

• Other national brand’s cost per ounce was set at $.03, and adjusted if needed to yield higher GM than leading national brands.