Ice Cream Toppings

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Ice Cream Toppings. Nathan Pugh Kaleah Thomas. Demographic trends have not changed much from 2003 to 2007. Demographics Role Assessment Strategy Recommendations. Nielsen Answers Ad Hoc Demo. Demographic difference by brand. Demographics Role Assessment Strategy Recommendations. - PowerPoint PPT Presentation

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Ice Cream ToppingsNathan PughKaleah Thomas

DemographicsRoleAssessmentStrategyRecommendationsDemographic trends have not changed much from 2003 to 2007HH Demo52 wks ending 12/27/0352 wks endings 12/29/07SIZE - 3-4 MEM126.7126.8SIZE - 5+ MEM205.1188.7AGE FH - UNDER 35138.7140.6AGE FH - 35-44149.0132.5KIDS - ANY < 18160.5154.7KIDS - ANY < 6184.8178.2KIDS - ANY 6-12167.6172.2KIDS - ANY 13-17159.7155.8START UP FAMILIES141.8YOUNGER BUSTLING FAMILIES194.6OLDER BUSTLING FAMILIES161.6EMP - FH EMP. PART TIME142.8126.6ED - FH HIGH SCH GRAD128.3122.7Nielsen Answers Ad Hoc DemoDemographicsRoleAssessmentStrategyRecommendationsDemographic difference by brandHH Demo52 wks endings 12/29/07INC - $20,000-29,999125.8INC - $30,000-39,999133.0CTL BRAND HH Demo52 wks endings 12/29/07INC - $70,000-99,999122.6INC - $100,000+120.0AFFLUENT SUBURBAN SPREADS149.7EMPTY NEST COUPLES120.9ED - FH COLLEGE GRAD149.3HSY LITEHH Demo52 wks endings 12/29/07INC - $50,000-69,999128.5AGE FH - NO FEMALE HEAD134.8COMFORTABLE COUNTRY139.9EMP - NO FEMALE HEAD134.8ED - NO FEMALE HEAD134.8RACE - OTHER RACE137.9SMUCKERSNielsen Answers Ad Hoc DemoDemographicsRoleAssessmentStrategyRecommendationsPrivate Label change in trendsHH Demo52 wks ending 12/27/0352 wks endings 12/29/07ChangeINC - $20,000-29,999105.2125.820.63INC - $50,000-69,99987.3110.823.51SIZE - 5+ MEM242.5207.4-35.07KIDS - ANY 6-12200.2175.7-24.48EMP - FH EMP. PART TIME153.9108.8-45.06ED - FH NOT HIGH SCH GRAD77.9121.343.42RACE - ASIAN52.737.0-15.66RACE - OTHER RACE115.668.7-46.86ETH - HISPANIC102.970.6-32.34JOB - PROF/MANAGERIAL85.870.3-15.47Nielsen Answers Ad Hoc DemoProduct SnapshotNielsen Answers Product Snapshot

DemographicsRoleAssessmentStrategyRecommendationsHershey brand owns 70% of marketNielsen Answers Ad Hoc BaseTotal Chocolate Syrup Market:$181.3 MDemographicsRoleAssessmentStrategyRecommendationsSyrup Toppings penetrate 28% of HHs and HSY Choc Syrup 20% of HHsNielsen Answers Ad Hoc BaseBrandITEM BUYERS (000)ITEM PENETRATIONSYRUP- CHOCOLATE32,654.228.1%CTL BR - SYRUP- CHOCOLATE9,845.08.5%HERSHEY'S - SYRUP- CHOCOLATE21,509.518.5%HERSHEY'S LITE - SYRUP- CHOCOLATE2,025.41.7%NESTLE NESQUIK - SYRUP- CHOCOLATE3,202.62.8%SMUCKER'S SUNDAE SYRUP - SYRUP- CHOCOLATE747.50.6%DemographicsRoleAssessmentStrategyRecommendationsAnalysis shows this is a CASH MANCHINENielsen Answers Ad Hoc Base

SYRUP TOPPINGSAvg Margin per SKU of all retailers:36.2%Total Chocolate Syrup Market:$181.3 MDemographicsRoleAssessmentStrategyRecommendations55 total SKUs found: Syrups, Shells, Specialty55 total SKUs found:-Syrups-Shells-SpecialtyDemographicsRoleAssessmentStrategyRecommendationsHarps Wed. and WM 6th had deepest assortments with 62% of SKUs available

DemographicsRoleAssessmentStrategyRecommendationsSmuckers and Hershey own 74.5% of SKUsBrand# SKUs% of CategoryNestle23.6%Private Label916.4%Smuckers2341.8%The Hershey Company1832.7%Vita Specialty Foods35.5%DemographicsRoleAssessmentStrategyRecommendationsSmuckers has highest per ounce cost but HSY has highest unit cost, PL is cost leaderSupplierAverage Cost Per OunceAverage Unit CostNestle$0.05$1.14Private Label$0.04$0.94Smuckers$0.12$1.40The Hershey Company$0.10$1.60Vita Specialty Foods$0.12$1.61DemographicsRoleAssessmentStrategyRecommendationsHarps and Walgreens have the highest GM%

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

DemographicsRoleAssessmentStrategyRecommendationsFacing proliferation is driven not by GM% but rather velocity

DemographicsRoleAssessmentStrategyRecommendationsFacing proliferation is driven not by GM% but rather velocity

DemographicsRoleAssessmentStrategyRecommendationsSuppliers control this categoryEach 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

DemographicsRoleAssessmentStrategyRecommendationsFocus on category optimizationNo flavor innovation will overcome major category playersRetailers 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 marketSize/Price innovation: introduction of smaller offeringsLower price points instead of lower price/oz. Category locationsWM needs to locate near ice cream

DemographicsRoleAssessmentStrategyRecommendationsWalmart #144 (MLK)

DemographicsRoleAssessmentStrategyRecommendationsWalmart #144 (MLK)

Low Income HHsAge 18 34 HHs1 person HHsRenting HHsStruggling HHsDemographicsRoleAssessmentStrategyRecommendationsWalmart #144 (MLK)