by: kara lafrancis. -bustling families/start-up families -3-5+ member household -children ages 1-12...
DESCRIPTION
-Income not as large of a factor as expected -Main determinate is size of household, having highest dollar volume index in households with 5 or more members -Largest dollar volume index for PL in reference to education are those families with a female head that is a college graduateTRANSCRIPT
Automatic Dish Detergent
NWABy: Kara LaFrancis
Category Demographics
-Bustling families/start-up families
-3-5+ member household
-Children ages 1-12
-Female head under 35 to 44 years old
Category Demographics for Private Label
-Income not as large of a factor as expected
-Main determinate is size of household, having highest dollar volume index in households with 5 or more members
-Largest dollar volume index for PL in reference to education are those families
with a female head that is a college graduate
Category Role
-48% Penetration
-Sales as of 12/29/07 were $714,103,900 with 33,893,000 raw buyers!
-Private Label brands accounts for $80,641,900
- Lots of Private Labels mixed in with dominant brands such as Cascade, Finish, and Palmolive
- Categorized as a “Maintain” product
5 Stores Audited
Total of 66 SKUs
Most SKUs found at Target (total of 28)
Category Assessment
Total of 10 Competing Brands (6 being Private Label Brands)
Leading brand in all stores was Proctor & Gamble’s Cascade, having more than double the facings of all other brands
Assessment continued…
WalMart- 26 SKUs
Harps- 26 SKUs
WalGreens- 5 SKUs
IGA- 23 SKUs
Target- 28 SKUs (deepest)
Stores Audited (Fayetteville)
Mean Gross Margin Percents
Changes In Category
Target’s Selection
Harp’s Selection
WalMart’s Selection
WalGreen’s Selection
IGA’s Selection
Reckitt Benckisner
Procter & Gamble
CP
Sun Station
Private Label (Best Choice, Always Save, Seventh Generation, Up & Up, Great Value, Method)
Firms
Looking at Facings vs. GM, it is clear that in most cases the more facings there are the higher the GM% is.
Share of Facings
GM determined by # of loads All liquids are assumed to be 50 grams/load Powder was determined to have a slightly
higher cost than Gel, but not as high as the “powerball” formulation detergents
Private label costs were determined to be roughly ½ of the leading brands
Determining GM
Share of GM Dollars
WalGreens would be wise to deepen their category selection by at least a few SKUs, 5 is very small
All stores should look at trying to lessen their dependence on Proctor & Gamble, as they account for roughly 50% of SKUs in each store
Plan Implementaion
Retailer commitment to private label or leveraging tactic?
IGA & Target with 5 and 6 SKUs, not clear about the gross margins
Classic example where it is difficult to compare P/L to national brands.
Private Label Opportunities