BACON

Blake Gunderson

Nic Liu

Austin Starrett

Overview

Supplier is in control Strong brands

Oscar Mayer, Hormel, Wright Brand

Based on commodity Price is directly based of off the price of

livestock

Core Traffic Low is gross margin and high in sales

Findings

Past Semesters We see the category increasing in the

number of SKU’s

StoreTotal # of SKUs

# of Unique SKUs

Walmart 6th Street 56 4Walmart Mall 53 2Walmart NM 36 0Harps Wedington 30 3Harps Fiesta Square 29 6Ozark Foods 6 6

Demographics

Popular with income of $30,000 and up -$70,000-$100,000 highest

Multi Member households Popular in…

Households with female heads Maturing and established families with

children

Category Role

Sales volume- $2 billion Household penetration- 71.5%

Brands

Oscar Mayer is the dominating brand Greatest display space

No brand is found at every store Specialty stores

Aldi, Ozark Natural, etc. BUT brands like Oscar Mayer and Hormel

were found at all major retailers

Category Strategy

Very low item on deal percentage Due to being a commodity based item

Some brands were promoted more due to additional locations -Wright Brand, Great Value

Estimates

Oscar Mayer- 32.8% GM Hormel- 33.8% GM Wright Brand- 29.67% GM

Gross Margin category- 20-35%

Manufacturer SelectiveWMSC 6th

FacingsWMSC Mall

FacingsWMNM Facings

HarpsF Facings

Harps (Fiesta Square) Facings Ozark Facings

Farmland % of Total Sum

4.55% 3.03% 5.77% 23.33% 30.00% 

% of Total N 3.57% 3.77% 5.56% 23.33% 24.14%  

N 2 2 2 7 7  Great Value % of Total

Sum10.61% 15.15% 15.38%

     

% of Total N 10.71% 13.21% 13.89%      

N 6 7 5      Hormel % of Total

Sum16.67% 22.73% 19.23% 10.00% 10.00%

 

% of Total N 17.86% 18.87% 19.44% 10.00% 10.34%  

N 10 10 7 3 3  John Morrell % of Total

Sum6.06% 4.55% 7.69%

     

% of Total N 5.36% 5.66% 8.33%      

N 3 3 3      Oscar Mayer % of Total

Sum25.76% 27.27% 30.77% 13.33% 10.00%

 

% of Total N 23.21% 28.30% 27.78% 13.33% 10.34%  

N 13 15 10 4 3  Wright Brand % of Total

Sum7.58% 7.58% 5.77% 13.33% 5.00%

 

% of Total N 8.93% 5.66% 8.33% 13.33% 3.45%  

N 5 3 3 4 1  Others % of Total

Sum28.79% 19.70% 15.38% 40.00% 45.00% 100.00%

% of Total N 30.36% 24.53% 16.67% 40.00% 51.72% 100.00%

N 17 13 6 12 15 6Total % of Total

Sum100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

% of Total N 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

N 56 53 36 30 29 6

Share of Facings

Share of GM Estimates

Share of Gross Margin Estimates

Manufacturer Selective

WMSC MallGm

WMSC 6th GM

WMNM GM

HarpsGM

Harps (Fiesta Square)

GM Ozark GMFarmland % of Total

Sum2.35% 1.68% 3.40% 10.46% 10.49%

 

N 2 2 2 7 7  

Great Value

% of Total Sum

9.69% 8.01% 8.43%     

N 7 6 5      

Hormel % of Total Sum

16.58% 15.07% 16.87% 5.80% 6.15% 

N 10 10 7 3 3  

John Morrell

% of Total Sum

5.19% 4.72% 7.53%     

N 3 3 3      

Oscar Mayer

% of Total Sum

27.62% 21.07% 25.73% 13.79% 8.57% 

N 15 13 10 4 3  

Others % of Total Sum

28.95% 35.78% 24.10% 43.96% 61.40% 100.00%

N 13 17 6 12 15 6

Wright Brand

% of Total Sum

9.62% 13.67% 13.93% 26.00% 13.38% 

N 3 5 3 4 1  

Total % of Total Sum

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

N 53 56 36 30 29 6

Private Labels

Great Value Bacon Not very competitive in pricing

Wal-Mart carried Great Value Gross Margin is 20.96% Only one store has Private Label

Wal-Mart is committed Not smaller grocery stores

Private Label

Private Label is based on the retailer Has high volume sales Demographics are the same as national

brands

Private Label- Recommendations Recommendation for Wal-Mart

Keep Great Value Bacon High sales Comparable margins

Bacon brings smiles to everyone’s*

faces!

*Except for vegetarians, vegans, and those of the Islamic or Jewish faith.

Thank you!

Any questions?