Download - Ice Cream Toppings

Ice Cream ToppingsNathan Pugh

Kaleah Thomas

DemographicsRoleAssessmentStrategyRecommendations

Demographic trends have not changed much from 2003 to 2007

HH Demo 52 wks ending 12/27/03

52 wks endings 12/29/07

SIZE - 3-4 MEM 126.7 126.8

SIZE - 5+ MEM 205.1 188.7

AGE FH - UNDER 35 138.7 140.6

AGE FH - 35-44 149.0 132.5

KIDS - ANY < 18 160.5 154.7

KIDS - ANY < 6 184.8 178.2

KIDS - ANY 6-12 167.6 172.2

KIDS - ANY 13-17 159.7 155.8

START UP FAMILIES 141.8

YOUNGER BUSTLING FAMILIES 194.6

OLDER BUSTLING FAMILIES 161.6

EMP - FH EMP. PART TIME 142.8 126.6

ED - FH HIGH SCH GRAD 128.3 122.7

Nielsen Answers Ad Hoc Demo


Demographic difference by brand

HH Demo 52 wks endings 12/29/07

INC - $20,000-29,999 125.8

INC - $30,000-39,999 133.0

CTL BRAND


INC - $70,000-99,999122.6

INC - $100,000+120.0

AFFLUENT SUBURBAN SPREADS 149.7

EMPTY NEST COUPLES 120.9

ED - FH COLLEGE GRAD 149.3

HSY LITE


INC - $50,000-69,999128.5

AGE FH - NO FEMALE HEAD 134.8

COMFORTABLE COUNTRY 139.9

EMP - NO FEMALE HEAD 134.8

ED - NO FEMALE HEAD 134.8

RACE - OTHER RACE137.9

SMUCKERS



Private Label change in trendsHH Demo

52 wks ending

12/27/03

52 wks endings 12/29/07

Change

INC - $20,000-29,999 105.2 125.8 20.63

INC - $50,000-69,999 87.3 110.8 23.51

SIZE - 5+ MEM 242.5 207.4 -35.07

KIDS - ANY 6-12 200.2 175.7 -24.48

EMP - FH EMP. PART TIME 153.9 108.8 -45.06

ED - FH NOT HIGH SCH GRAD 77.9 121.3 43.42

RACE - ASIAN 52.7 37.0 -15.66

RACE - OTHER RACE 115.6 68.7 -46.86

ETH - HISPANIC 102.9 70.6 -32.34

JOB - PROF/MANAGERIA

L85.8 70.3 -15.47


Product Snapshot

Nielsen Answers Product Snapshot


Hershey brand owns 70% of market

Nielsen Answers Ad Hoc Base

ITEM $ (000)0%

10%20%30%40%50%60%70%80%90%

100%

$119,632

$28,459

$13,622$7,658$2,369

SMUCKER'S SUNDAE SYRUP - SYRUP- CHOCOLATE

HERSHEY'S LITE - SYRUP- CHOCOLATE

NESTLE NESQUIK - SYRUP- CHOCOLATE

CTL BR - SYRUP- CHOCOLATE

HERSHEY'S - SYRUP- CHOCOLATETotal Chocolate Syrup

Market:$181.3 M


Syrup Toppings penetrate 28% of HHs and HSY Choc Syrup 20% of HHs


Brand ITEM BUYERS (000) ITEM PENETRATION

SYRUP- CHOCOLATE 32,654.2 28.1%

CTL BR - SYRUP- CHOCOLATE 9,845.0 8.5%

HERSHEY'S - SYRUP- CHOCOLATE 21,509.5 18.5%

HERSHEY'S LITE - SYRUP- CHOCOLATE 2,025.4 1.7%

NESTLE NESQUIK - SYRUP- CHOCOLATE 3,202.6 2.8%

SMUCKER'S SUNDAE SYRUP - SYRUP-

CHOCOLATE747.5 0.6%


Analysis shows this is a “CASH MANCHINE”


SYRUP TOPPINGS

Avg Margin per SKU of all retailers:

36.2%

Total Chocolate Syrup Market:

$181.3 M


55 total SKUs found: Syrups, Shells, Specialty

Nine Stores Audited in Fayetteville:

• Harps on Wedington - 34

• Harps on Garland - 28• Walgreens on Mission - 2• Walgreens on 6th - 2• Walgreens on Joyce - 2• Walmart on 6th - 34• Walmart on Joyce - 31• Walmart Neighborhood

Market - 21• Target on Joyce - 29

55 total SKUs found:-Syrups-Shells

-Specialty


Harps Wed. and WM 6th had deepest assortments with 62% of SKUs available

Store # SKUs % of CategoryHarps Wedington 34 61.82%

Walgreens Joyce 2 3.64%

Walgreens 6th 2 3.64%

Walgreens Mission 2 3.64%

Walmart Joyce 31 56.36%

Walmart NHM 21 38.18%

Target Joyce 29 52.73%

Walmart 6th Street 34 61.82%

Harps Garland 28 50.91%


Smuckers and Hershey own 74.5% of SKUs

Brand # SKUs % of CategoryNestle 2 3.6%Private Label 9 16.4%Smuckers 23 41.8%The Hershey Company

18 32.7%

Vita Specialty Foods

3 5.5%


Smuckers has highest per ounce cost but HSY has highest unit cost, PL is cost leader

SupplierAverage Cost Per Ounce

Average Unit Cost

Nestle $0.05 $1.14Private Label $0.04 $0.94Smuckers $0.12 $1.40The Hershey Company

$0.10 $1.60

Vita Specialty Foods $0.12 $1.61


Harps and Walgreens have the highest GM%


Retailers dedicate majority of space to Smuckers and Hershey despite lower margins


Facing proliferation is driven not by GM% but rather velocity

Harps Wedington GM%Harps Wedington (Facings) Mean N1 41.63% 6

2 41.65% 18

3 39.96% 7

4 45.81% 1

5 33.09% 2

Total 40.92% 34

Walmart NHM Margin %Walmart NHM (Facings) Mean N1 35.92% 2

2 42.61% 4

3 31.31% 4

4 32.64% 6

5 31.01% 4

8 17.58% 1

Total 33.57% 21

Target Joyce Margin %Target Joyce (Facings) Mean N

1 32.60% 14

2 31.99% 14

3 8.54% 1

Total 31.48% 29


Facing proliferation is driven not by GM% but rather velocity

1 2 3

32.6 31.99

8.54GM%

# of Facings

1 2 3 4 5 8

35.9242.61

31.31 32.64 31.01

17.58GM%

# of Facings 1 2 3 4 5

41.63 41.65 39.9645.81

33.09

GM%

# of Facings


Suppliers control this category Each retailer approaches category

differently

Reoccurring theme: Small Private Label presence

Walgreens does not compete heavily in this category (2 SKUs)◦ Average margins high at 42.5%

Other Retailers use category as “Cash Machine” with moderate to heavy depth and generous margins


Focus on category optimization No flavor innovation will overcome

major category players Retailers need to focus on depth

optimization. ◦ Secondary players in category can

increase GM% Walgreens has opportunity to expand

depth and be more competitive in the market

Size/Price innovation: introduction of smaller offerings◦ Lower price points instead of lower

price/oz. Category locations

◦ WM needs to locate near ice cream


Walmart #144 (MLK)

Grocery Stores High Comp Mkt High Both High

LifeStyle

BehaviorStage

3.0% 3.6% 11.0% 17.5%Younger FamiliesHHs with Children, HOH <40

3.9% 17.4%

2.4% 2.0% 10.6%

3.8% 12.9% 11.0%

14.7%

25.2%

100.0%15.4% 26.1% 58.5%

2.4% 3.7% 8.6%

3.9%

94

95

108

99

100

53 96 134

14.9%

27.7%

Index

Total

Mature Couples2+ Person HHs, No Children, 45+

Mature Singles1 Person HHs, No Children, 45+

Evolving AdultsAny Size HHs, No Children, <45

Older FamiliesHHs with Children, HOH 40+

TotalTown and Rural

Mid-Downscale

City and

Mid-Upscale City and

Surrounds

WAL MART SUPERCENTER 144 Grocery Stores & Competitive Market - Top 50% HHs BehaviorScape Framework

Index

Dollars at Risk in % of Competitor's ACV

51.2%43.7%55.0%13.3%88.9%92.5%94.5%79.2%87.5%69.8%17.9%93.8%32.1%77.4%44.6%61.6%

% Dollars at Risk to Competitor

51.8%29.9%12.7%11.5%

7.5%6.8%6.0%5.8%5.5%4.4%4.1%3.6%3.4%3.3%2.3%2.1%

Retail Channel Classification

Mass MerchandiserMass Merchandiser

ClubMass MerchandiserMass MerchandiserMass Merchandiser

GroceryGroceryGroceryGroceryGroceryGroceryGroceryGroceryGrocery

Chain DrugChain Drug

Total Store ACV

$123,500,000$124,800,000

$84,500,000$28,600,000

$106,600,000$10,400,000

$9,100,000$7,800,000$9,100,000$7,800,000$7,800,000

$28,600,000$4,680,000

$13,000,000$5,200,000$6,500,000$4,160,000

Distance (Miles)

5.74.95.88.63.62.02.12.72.33.35.13.05.08.32.10.1

Total Dollars at Risk to

$63,922,508$36,919,376$15,724,592$14,163,032

$9,247,732$8,414,848$7,368,504$7,202,988$6,827,808$5,444,660$5,120,284$4,391,920$4,178,148$4,022,668$2,897,960$2,563,236

Top Competitors

WAL MART SUPERCENTER 144WAL MART SUPERCENTER 359SAMS CLUB 8209TARGET STORE 1470WAL MART SUPERCENTER 54WAL MART STORE 2997HARPS FOOD STORE 124MARVINS GROCERS 220MARVINS GROCERS 221HARPS FOOD STORE 176OZARK NATURAL FOODSWAL MART NEIGHBORHOOD MKT 2745MARVINS GROCERS 219HARPS MARKETPLACE 177HARPS FOOD STORE 125WALGREENS 7847WALGREENS 11781


Walmart #144 (MLK)

% HHs HHs Index % HHs HHs Index % HHs HHs IndexRace White (Non-Hispanic) 71.3% 100 74.5% 104 82.3% 115 Black (Non-Hispanic) 11.4% 100 7.7% 68 6.1% 54 Hispanic 11.2% 100 7.8% 70 4.8% 42 Other (Non-Hispanic) 6.0% 100 9.9% 164 6.8% 113Householder Income Under $10,000 7.6% 100 19.7% 259 12.9% 169 $10,000 - $19,999 9.6% 100 18.6% 195 13.7% 143 $20,000 - $29,999 10.4% 100 17.0% 164 14.0% 134 $30,000 - $39,999 10.4% 100 11.6% 111 11.7% 112 $40,000 - $49,999 9.8% 100 9.3% 95 10.0% 103 $50,000 - $74,999 19.5% 100 12.6% 65 18.2% 93 $75,000 - $99,999 12.5% 100 5.3% 42 8.7% 69 $100,000 or More 20.1% 100 5.8% 29 10.8% 54Householder Age Age 18 - 24 4.4% 100 15.1% 346 13.6% 313 Age 25 - 34 15.8% 100 24.0% 152 23.3% 148 Age 35 - 44 19.2% 100 20.5% 107 20.4% 106 Age 45 - 54 21.4% 100 15.4% 72 16.7% 78 Age 55 - 64 17.7% 100 12.4% 70 13.3% 75 Age 65 or More 21.7% 100 12.6% 58 12.7% 59Age and Presence of Children Children < 6 8.6% 100 8.2% 96 8.5% 99 Children 6 - 17 20.2% 100 10.8% 53 13.9% 69 Children < 6 & 6 - 17 7.4% 100 5.6% 75 5.8% 78 No Children 63.8% 100 75.4% 118 71.8% 113Number of Persons 1 Person 26.0% 100 38.8% 149 32.5% 125 2 Persons 32.4% 100 33.3% 103 34.9% 108 3 Persons 16.8% 100 13.8% 82 16.3% 97 4 Persons 13.9% 100 8.7% 63 10.5% 75 5+ Persons 10.8% 100 5.5% 51 5.8% 54Householder Education Grade School 6.0% 100 5.4% 91 4.3% 72 Some High School 8.3% 100 9.5% 115 7.7% 93 High School Graduate 27.3% 100 20.8% 76 21.4% 79 Some College 28.3% 100 26.6% 94 27.4% 97 College Graduate 30.2% 100 37.7% 125 39.2% 130Housing Tenure Own 66.8% 100 28.8% 43 44.1% 66 Rent 33.2% 100 71.2% 215 55.9% 169Spectra LifeStyle Cosmopolitan Suburbs 5.3% 100 6.8% 128 15.1% 287 Midscale Suburban Mix 3.8% 100 0.0% 0 1.3% 35 Midscale Minipolitan 3.3% 100 0.0% 0 3.6% 110 Midscale Fringe Towns 4.2% 100 0.0% 0 2.1% 51 Midscale Working Towns 6.1% 100 0.0% 0 18.3% 300 Striving Urban Melting Pot 5.5% 100 0.0% 0 0.0% 0 Striving Suburban Mix 3.6% 100 38.9% 1089 11.0% 307 Striving Small City Living 3.2% 100 0.0% 0 7.8% 243 Struggling Small City Mix 3.1% 100 18.2% 597 22.6% 741 Struggling Minipolitan 4.6% 100 28.9% 624 7.1% 153 Struggling Country Living 4.0% 100 7.2% 177 8.3% 205 Struggling Rural Mix 2.9% 100 0.0% 0 0.0% 0 Struggling Backroad Living 4.1% 100 0.0% 0 0.0% 0

Reference 3 mile Ring 5 mile RingDemography

Low Income HHsAge 18 – 34 HHs

1 person HHsRenting HHs“Struggling

HHs”


Walmart #144 (MLK)

Download - Ice Cream Toppings

Top Related