Bacon

Rachel Mooreland

Bridgette Smith

Anita Walker

Category Snapshot

Source: Spectra BehaviorScape: Total Consumption/Spectra 2014 Feb (Spectra)/Homescan Product Library

TOTAL BACON-REFRIGERATED (PKG MEAT-DELI) OZ. Total Consumption BehaviorScape Framework

LifeStyle

BehaviorStage

88 99 99 82 98 105 96

110 102 112 118 115 105

123 127 119 128 106 126

150 133 145 150 154 159

50 59 61 56 68 63

39 46 54 57 52 65

51 58 61 57 64 66

94 97 118 105 112 127

144

105 113 128 122 125 135

121

147

59

53

61

112 111 138 133 124

110

123

129

10085 99 108 94 98 110Total

Senior Couples2+ person HHs, No Children, 65+

Empty Nest Couples2+ person HHs, No Children, 55-64

Established Couples2+ person HHs, No Children, 35-54

Senior Singles1 person HHs, No Children, 65+

Independent Singles1 person HHs, No Children, 35-64

Young TransitionalsAny size HHs, No Children, < 35

Older Bustling FamiliesLarge HHs with Children (6+), HOH 40+

Younger Bustling FamiliesLarge HHs with Children (6+), HOH <40

Small Scale FamiliesSmall HHs with Older Children 6+

Start-Up FamiliesHHs with Young Children Only < 6

TotalPlain Rural

Living

Modest Working Towns

Struggling Urban Cores

Comfortable Country

Affluent Suburban Spreads

Cosmopolitan Centers

110

Demographics variables % Volume Index % Volume Index % Volume Index % Volume Index % Volume Index

Race of Head of Household

White 64.0% 92 68.2% 99 62.8% 91 63.7% 92 67.0% 97

Black 17.3% 145 16.4% 137 16.3% 136 21.7% 181 15.5% 129

Hispanic 12.5% 101 9.9% 80 15.1% 122 9.8% 79 12.6% 102

Asian 2.9% 68 2.8% 65 3.7% 85 2.4% 56 2.9% 68

Other 3.3% 150 2.7% 123 2.1% 97 2.4% 112 2.1% 95

Number of Persons

1 Person 14.2% 53 13.8% 51 14.3% 53 14.1% 52 14.9% 55

2 Persons 36.3% 112 34.5% 106 34.8% 107 37.9% 117 35.1% 108

3 Persons 19.8% 123 17.9% 110 18.1% 112 19.1% 118 17.8% 110

4 Persons 15.4% 116 15.1% 114 17.0% 128 15.5% 117 16.0% 121

5+ Persons 14.3% 129 18.8% 169 15.9% 143 13.5% 121 16.2% 145

Household Income

Under $10,000 5.6% 70 7.6% 96 4.7% 59 5.3% 66 6.2% 79

$10,000 - $19,999 10.7% 92 10.7% 92 8.7% 75 9.4% 81 9.7% 83

$20,000 - $29,999 10.7% 94 12.8% 113 8.2% 73 10.4% 92 11.1% 98

$30,000 - $39,999 12.3% 116 12.7% 121 9.4% 90 11.2% 106 10.5% 99

$40,000 - $49,999 9.9% 106 13.1% 141 8.3% 90 9.6% 104 10.1% 109

$50,000 - $74,999 19.3% 107 22.0% 121 19.4% 107 19.4% 107 19.5% 107

$75,000 - $99,999 12.7% 108 10.4% 88 14.9% 127 14.8% 126 12.8% 109

$100,000 - $149,999 12.1% 106 7.5% 66 15.4% 135 13.4% 117 12.7% 111

$150,000 or More 6.7% 84 3.2% 40 11.1% 138 6.6% 82 7.4% 92

Census Division

East North Central 15.4% 101 27.8% 182 16.8% 110 12.5% 82 15.3% 100

East South Central 1.3% 22 10.1% 164 6.1% 99 14.1% 229 6.5% 105

Middle Atlantic 3.9% 30 0.9% 7 17.0% 129 1.9% 15 11.3% 86

Mountain 10.8% 151 6.3% 88 5.9% 82 7.5% 105 7.8% 109

New England 1.0% 21 1.5% 31 5.7% 118 1.2% 26 5.0% 104

Pacific 19.5% 130 15.5% 104 11.9% 79 4.8% 32 18.1% 121

South Atlantic 0.8% 4 5.8% 29 23.4% 117 11.4% 57 18.6% 93

West North Central 34.1% 492 3.2% 46 5.4% 78 8.0% 115 5.8% 84

West South Central 13.2% 114 29.0% 251 8.0% 69 38.6% 334 11.6% 100

Bacon Product Snapshot Farmland John Morrell Oscar Mayer Wright Private Label

Homescan

Retailers Audited

Stores # Sku

% of Category

Dollar General #3972 1 0.90%

Walgreens #05475 3 2.80%

Sam’s #8209 5 4.60%

Wal-Mart #144 (S) 60 55.60%

Harps #176 27 25.00%

Target #1470 3 2.80%

Harps #124 41 38.00%

ALDI 6th St. 5 4.60%

Wal-Mart #54 (S) 61 56.50%

Wal-Mart #5737 50 46.30%

• Walmart store 144 and store 54 in Springdale had the most assortment with over 50% of all the SKU’s found.

Assigning Role to Category

Circular Trade Areas: Fayetteville Area Supercenters

Demographics variables % HHs HHs Index % HHs HHs Index % HHs HHs Index

Race of Head of Household White 80.4% 117 85.6% 124 57.0% 83 Black 6.6% 55 5.6% 47 3.1% 26 Hispanic 4.9% 39 3.6% 29 32.7% 261

Asian 4.6% 108 1.9% 45 4.8% 113 Other 3.5% 156 3.3% 145 2.4% 106Number of Persons 1 Person 47.7% 176 43.1% 159 23.0% 85 2 Persons 33.2% 103 32.2% 100 26.2% 81 3 Persons 10.4% 64 13.7% 84 15.8% 97 4 Persons 5.9% 45 7.2% 55 14.5% 110 5+ Persons 2.8% 25 3.7% 34 20.6% 185

Household Income Under $10,000 26.4% 345 12.4% 162 8.9% 116 $10,000 - $19,999 24.7% 221 12.4% 110 12.5% 112 $20,000 - $29,999 12.2% 112 13.3% 123 14.7% 135

$30,000 - $39,999 10.3% 102 18.9% 186 17.5% 173

$40,000 - $49,999 8.0% 89 6.5% 72 11.5% 128

$50,000 - $74,999 9.0% 50 13.8% 77 15.5% 86 $75,000 - $99,999 3.2% 27 7.2% 60 8.0% 67 $100,000 - $149,999 4.2% 34 8.7% 70 7.8% 63 $150,000 or More 1.9% 21 7.0% 78 3.5% 39

Walmart #144 Walmart #359 Walmart # 54Circular Trade Area

The Suppliers Bacon’s Top Suppliers:

Kraft- #1 – 15 SKUs

Hormel – 15 SKUs

Farmland – 14 SKUs

Stocked in all 6 of our stores

Surprising Losers:

JC Potter – 2 SKUs, very little shelf space

Tyson Branded Bacon – less facings and distribution that expected for such a large supplier; focuses more on Private Label Bacon

Bacon Category BrandsDominant Brands

– Oscar Mayer – 15 SKUs

– Hormel – 15 SKUs

– Farmland – 14 SKUs

– Wright Brand – 10 SKUs

Struggling Brands

– JC Potter

– Cedar Falls

– Rose

– Sugardale

– Tyson

– Williams

• 107 SKUS found in the audit

Private Label Private Label is the most integrated into the bacon category in

Wal-Mart Stores.

Top Private Label Brand – Great Value (9 SKUs)

Total Private Label SKUs- 16 (out of a total 107 SKUs)

ALDI is the second store with 5 private label SKUs

Location: Integrated in entire aisle – mixed in w/branded bacon products

Category Tactics

• Perceived Quality – the degree of perceived performance excellence of the product.

• According to table 6-1 in Private Label Strategy, 9% of consumers believe that there is a quality equivalent between manufacturer and store brands for bacon.

• Brand imagery is important in the bacon category. This is a personalized social/emotional bond the consumer has with a brand.

– Ex. Wright Brand Bacon - #1 stack pack

Category Review

In comparison to last year’s audit (Fall 2013)…

Number of SKUs increased from 96 to 107 SKUs

Private label decreased from 22 to 16

(AWG SKUs used)

Overall, gross margins for branded bacon products decreased by around 10%; Private label decreased about 9%.

Fall 2013 Minimum Price Range – $1.99 - $25.59

Spring 2014 Minimum Price Range - $1.85- $17.98

Facings

Gross Margin $ By Store & Manufacturer

Gross Margin % By Store & Manufacturer

Bacon in Wal-Mart

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