cheese crackers spring 2013
DESCRIPTION
Cheese Crackers Spring 2013. Kristen Hopkins. Introduction. 5 stores audited in Fayetteville, AR 100 total SKUs Overall, retailer is not in control Category mostly controlled by Sunshine & Pepperidge Farm Target is the exception and is in control due to Market Pantry & Archer Farms brands. - PowerPoint PPT PresentationTRANSCRIPT
Kristen Hopkins
Introduction5 stores audited in Fayetteville, AR100 total SKUsOverall, retailer is not in control Category mostly controlled by Sunshine &
Pepperidge FarmTarget is the exception and is in control due
to Market Pantry & Archer Farms brands
Importance of Depth
Store Location SKUs Unique SKUs* Audited by
Walmart Supercenter MLK Blvd 66 13 Kristen
Harp’s Garland 53 6 Kristen
Target Shiloh 44 13 Kristen
Dollar General Garland 9 5 Kristen
Walgreens MLK Blvd 6 2 Kristen
Complete Audit 178 39
Cheese Cracker Depth, Spring 2013, Fayetteville, Arkansas
Importance of Depth
Source: Spectra BehaviorScape: Total Dollars/Spectra 2013 Mar (Spectra)/Homescan Product Library
TOTAL CHEESE (CRACKERS) OZ. Total Dollars BehaviorScape Framework
LifeStyle
BehaviorStage
186 184 183 114 154 172 166
125 158 144 93 121 127
202 216 241 99 188 182
195 276 220 118 186 164
83 75 84 64 68 50
32 51 53 42 50 44
38 43 38 34 40 33
88 102 93 81 80 73
63
83 85 86 69 77 71
187
204
70
45
37
79 66 68 53 60
86
79
65
10099 130 114 74 92 88Total
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
131
Importance of DepthGoldfish Cheez-Its Cheese Nips Private Label% Total $ Index % Volume Index % Volume Index % Volume Index
15.4% 124 11.8% 103 12.6% 102 9.1% 73
5.8% 134 3.4% 90 3.4% 78 3.4% 80
1.6% 73 2.1% 90 3.4% 157 2.6% 120
21.1% 131 20.1% 120 17.0% 105 16.8% 104
28.8% 218 21.6% 156 21.6% 164 18.4% 139
24.5% 220 20.3% 189 23.0% 207 20.6% 185
8.6% 92 10.0% 99 11.7% 127 9.9% 107
14.3% 122 14.1% 118 13.5% 115 10.8% 92
18.2% 160 15.5% 136 9.1% 80 8.3% 73
14.1% 175 8.1% 117 6.2% 77 5.1% 63
2.7% 62 4.3% 95 2.5% 57 6.7% 154
23.1% 154 16.4% 104 15.4% 102 14.6% 97
27.7% 157 25.0% 134 24.5% 139 21.1% 120
25.0% 122 24.9% 118 25.7% 126 20.8% 102
17.0% 227 10.1% 117 9.8% 131 9.1% 122
34.9% 187 31.9% 159 30.8% 165 26.8% 144
16.8% 255 13.7% 182 13.1% 198 11.9% 180
70.0% 108 71.0% 107 63.4% 98 62.3% 96
Asian
Other
Number of Persons
3 Persons
Demographic Variables
Race of Head of Household
Hispanic
$40,000 - $49,999
$75,000 - $99,999
$100,000 - $149,999
$150,000 or More
4 Persons
5+ Persons
Household Income
Age and Presence of Children
Age < 6
Age 6 - 17
Age < 6 & 6 - 17
Age of Head of Household
Age 18 - 24
Age 25 - 34
Age 35 - 44
Age 45 - 54
Housing Tenure
Own
Importance of DepthAppropriate role for the category: FLAGSHIP
Strength of Competing BrandsStores audited, depth, unique SKUs
Store Location SKUs Unique SKUs* Audited by
Walmart MLK Blvd 66 13 Kristen
Harp’s Garland 53 6 Kristen
Target Shiloh 44 13 Kristen
Dollar General Garland 9 5 Kristen
Walgreens MLK Blvd 6 2 Kristen
Complete Audit 178 39
Strength of Competing Brands
Pepperidge Farm and Sunshine dominate!
Supplier Share of Display Space by Retailer
Strength of Competing BrandsSunshine Cheez-Its are at every storesPepperidge Farm Goldfish are at four of five
storesSunshine and Pepperidge Farm are
somewhat controlling the category
1
stores
2
stores
3
stores
4
stores
5
stores SKUs
Stocking
Rates
Annie’s 0 2 0 0 13 6 0.500
Lance 8 6 1 0 0 8 0.375
Nabisco 11 10 4 0 0 18 0.278
Pepperidge Farm 24 32 0 3 39 51 0.384
Private Label 4 4 3 2 22 17 0.412
Sunshine 35 43 6 1 23 68 0.318
82 97 14 6 97 168
Strength of Competing BrandsAverage gross margin estimates:
Sunshine: 20-40%Pepperidge Farm: 27-62%Nabisco: 7-60%Stauffers: 38%Special K: 73%Archer Farms: 86%, Market Pantry: 57% (Target)Great Value: 52-74% (Walmart)Always Save: 60% (Harp’s)Nice!: 78% (Walgreens)
Is this consistent with role? YES!
Private Label OpportunitiesPrivate
label is not that strong in the category
Target is more committed to PL than others
Harps Facings
Walmart Facings
Dollar General Facings
Walgreens Facings
Target Facings
% of Total Sum
4.9% 3.7% 15.8% 33.3% 22.4%
% of Total N
5.7% 3.0% 11.1% 33.3% 20.5%
N 3 2 1 2 9
Share of Display Space - Cheese Crackers
MFR
Private Label
Harps Facings
Walmart Facings
Dollar General Facings
Walgreens Facings
Target Facings
% of Total 60.0% 52.0% 52.0% 77.5% 57.0%
71.0% 74.0% 86.0%
Private Label
Gross Margin - Cheese Crackers
MFR
Private Label OpportunitiesPrivate label will have slightly increasing
presenceNational brands (Sunshine & Pepperidge Farm)
will still play a big role as there is always a demand, but due to demographics (young, price sensitive) private label will become a bigger player in Fayetteville, AR
Same retailer in prior semester audits, private label has increased by one or two SKUs
Target is the one retailer that had a dramatic increase in PL items tripling from 3 to 9
Private Label Opportunities
Private Label RecommendationsWalmart: increase use of private label
Has the largest amount of space given to the category, they can afford to dedicate more space to items that have 52% and 74% margin
Harp’s: increase use of PLSecond largest amount of space given to category,
decreased PL facings since last audit when all other retailers increased, it would be in their best interest to keep up with competition
Target: continue their PL strategy Increase use as necessary because it is working well
Dollar General: continue their PL strategySuch a small assortment and their proportion of PL to
national brands is accurate, if given more space for the category they can consider adding more PL items
Walgreens: continue their PL strategySuch a small assortment and their proportion of PL to
national brands is accurate, if given more space for the category they can consider adding more PL items
Major Changes by StoresIncrease from 69 to 100 total SKUsWalmart: went from 18 to 66 SKUs and
increased Cheez-Its display spaceHarp’s: went from 7 to 52 SKUs, also increased
Cheez-Its assortmentTarget: went from 8 to 44 SKUs, increased
private labelDollar General: went from 2 to 9 SKUs, wider
assortment of national brandsWalgreens: stayed at 6 SKUs with one private
label, national brands dominating with 80% space