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Granola Bars Semester Project 2012. Jordan Brainard & Ashley Jones . Introduction. STORES AUDITED (10) Wal-Mart (MLK & Bentonville) Target (Rogers & Fayetteville) Walgreens (Rogers & Fayetteville) Neighborhood Market (Bentonville & Fayetteville) Harps (Fayetteville) - PowerPoint PPT Presentation
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JORDAN BRAINARD & ASHLEY JONES
Granola BarsSemester Project 2012
Introduction
STORES AUDITED (10) Wal-Mart (MLK & Bentonville) Target (Rogers & Fayetteville) Walgreens (Rogers & Fayetteville) Neighborhood Market (Bentonville &
Fayetteville) Harps (Fayetteville) ALDI (Fayetteville)
WHY WE PICKED THIS CATEGORY:Honestly, because we love them! We were interested in analyzing a category that we often shop for ourselves.
WHO IS IN CONTROL?The retailer
Category Depth
GENERAL INFORMATION: SKU’s: 119 Brands:
8 National Brands 6 Private Label Brands
WHO HAD THE DEEPEST ASSORTMENT? Wal-Mart (Bentonville) had the most SKU’s (69) Wal-Mart and Neighborhood Market had the most Facings Target had the most Private Labels variety (2)
In person felt they had the most variety
Depth Breakdown
Wal-Mart
Target
Walgreens
Neighborhood Market
Harps
ALDI
0 1020304050607080
BentonvilleRogersFayetteville
Number of SKU’s
Ret
aile
r
7 SKU’s
26 SKU’s 71
SKU’s62 SKU’s
15 SKU’s
14 SKU’s57 SKU’s62 SKU’s69 SKU’s64 SKU’s
Demographics
FAMILIES Bigger Families – Newly and Maturing Granola Bars are going to children Also popular among younger couples
INCOME Middle to Upper income Live comfortably
ETHNICITY More popular among Caucasians Asians seem to be more Brand loyal No substantial private label difference among other brands
EDUCATION Some college and college grad
Demographics
CTL BR - GRANOLA & YOGURT BARS
NAT VAL CW GR BR - GRANOLA & YOGURT BARS
NAT VAL GR BAR - GRANOLA & YOGURT BARS
QUAKER CHEWY - GRANOLA & YOGURT BARS
QUAKER CHEWY DIPPS - GRANOLA & YOGURT BARS
DOLLAR VOLUME
INDEX
DOLLAR VOLUME
INDEX
DOLLAR VOLUME
INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
TOTAL HOUSEHOLDS 100.0 100.0 100.0 100.0 100.0INC - $20,000-
29,999 81.6 75.7 58.8 73.7 60.5INC - $30,000-
39,999 118.3 87.4 90.2 84.1 116.3INC - $40,000-
49,999 122.8 101.0 110.6 98.9 102.1INC - $50,000-
69,999 119.7 129.5 121.7 134.1 139.3SIZE - 3-4 MEM 145.4 156.5 117.7 144.0 122.7SIZE - 5+ MEM 208.8 124.7 176.7 201.3 208.9
AGE FH - UNDER 35 175.5 187.3 152.5 157.6 150.3
AGE FH - 35-44 177.1 146.2 124.1 161.3 162.4AGE FH - 45-54 84.7 104.9 117.1 113.8 89.4AGE FH - 55+ 48.9 42.0 53.6 49.3 49.4
AGE FH - 55-64 54.5 56.0 67.2 59.3 67.8AGE FH - 65+ 44.4 30.8 42.7 41.4 34.7
CTL BR - GRANOLA & YOGURT BARS
NAT VAL CW GR BR - GRANOLA & YOGURT BARS
NAT VAL GR BAR - GRANOLA & YOGURT BARS
QUAKER CHEWY - GRANOLA & YOGURT BARS
QUAKER CHEWY DIPPS - GRANOLA & YOGURT BARS
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
TOTAL HOUSEHOLDS100.0 100.0 100.0 100.0 100.0
AGE FH - NO FEMALE HEAD 53.5 57.7 79.0 51.4 83.7
KIDS - NONE < 18 58.8 66.7 80.2 66.0 70.4KIDS - ANY < 18 181.3 165.6 139.1 167.0 158.3
KIDS - ANY < 6 190.3 148.0 156.9 159.1 140.1
KIDS - ANY 6-12 197.6 177.4 133.5 175.6 186.0
KIDS - ANY 13-17 188.7 148.5 144.4 178.5 165.3LS - YOUNG SINGLES 120.0 205.6 102.8 70.9 44.7
LS - CHILDLESS YOUNGER COUPLES 119.8 140.2 189.7 147.8 112.8
LS - NEW FAMILIES 184.1 156.5 135.0 137.2 76.7
LS - MATURING FAMILIES 192.4 174.8 131.7 172.2 187.8
LS - ESTABLISHED FAMILIES 152.4 148.0 159.4 170.6 130.9
LS - MIDDLE AGED SINGLES 39.2 54.5 75.8 45.0 88.1
LS - EMPTY NESTERS 50.7 46.6 60.5 58.3 46.7
LS - OLDER SINGLES33.5 31.8 42.2 29.2 25.0
CTL BR - GRANOLA & YOGURT BARS
NAT VAL CW GR BR - GRANOLA & YOGURT BARS
NAT VAL GR BAR - GRANOLA & YOGURT BARS
QUAKER CHEWY - GRANOLA & YOGURT BARS
QUAKER CHEWY DIPPS - GRANOLA & YOGURT BARS
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
TOTAL HOUSEHOLDS 100.0 100.0 100.0 100.0 100.0LS - MATR FAM/POOR-GET
BY 160.7 96.1 104.9 117.6 144.9
LS - MATR FAM/LIV COMF-AFF 221.4 247.0 156.2 222.3 227.2
LS - EMPTY NEST/POOR-GET BY 41.6 55.1 37.8 40.1 51.2
LS - EMPTY NEST/LIV COMF-AFF 54.3 43.2 69.6 65.6 44.8
EMP - FH EMPLOYED 121.0 141.7 118.7 131.8 123.4EMP - FH NOT EMPLOYED 96.7 66.1 85.9 83.0 77.0
ED - FH NOT HIGH SCH GRAD 63.1 64.3 47.5 52.6 51.0
ED - FH HIGH SCH GRAD 105.5 80.0 79.5 93.0 110.9ED - FH SOME COLLEGE 111.9 125.9 117.6 119.8 96.0ED - FH COLLEGE GRAD 128.5 143.1 138.9 140.7 116.7
RACE - CAUCASIAN 107.7 104.9 96.5 107.2 111.9RACE - NON-CAUCASIAN 71.0 81.5 113.3 72.9 54.9RACE - AFRICAN AMER. 54.2 71.6 72.1 52.2 44.4
RACE - ASIAN 42.1 130.6 179.6 100.7 64.5RACE - OTHER RACE 105.8 84.0 160.7 98.1 68.9
ETH - HISPANIC 94.4 94.1 164.1 110.3 64.9
Which Brands Dominate?
WHO IS LEADING THE PACK? Nature Valley Quaker Private Label
Has potential to pass other leading brands
WHO IS FALLING BEHIND? Natures Path Casadian Farm Organic
Generating high gross margins, however only found at Wal-Mart and Neighborhood Market
Share of Display Space
Share of Display Space, Granola Bars
Manufacturer
Neighborhood Market BVILLE
FaceWal-Mart MLK
FaceTarget FAY
Face HARPS FaceWalgreens FAY
FaceKellogs % of Total
Sum1.00% 3.08% 3.39% 0.00% 0.00%
% of Total N 1.43% 3.17% 3.33% 0.00% 0.00%N 1 2 2 0 0
Nature Valley % of Total Sum
32.00% 33.85% 26.27% 48.00% 64.29%
% of Total N 31.43% 31.75% 26.67% 48.00% 64.29%N 22 20 16 12 9
Private Label % of Total Sum
23.00% 11.54% 23.73% 0.00% 14.29%
% of Total N 22.86% 11.11% 23.33% 0.00% 14.29%N 16 7 14 0 2
Quaker % of Total Sum
23.00% 32.31% 25.42% 52.00% 21.43%
% of Total N 21.43% 22.22% 25.00% 52.00% 21.43%N 15 14 15 13 3
Total % of Total Sum
100.00% 100.00% 100.00% 100.00% 100.00%
% of Total N 100.00% 100.00% 100.00% 100.00% 100.00%N 70 63 60 25 14
Nature Valley Quaker Private Label
Category Strategy
DEALS No evidence of a “deal” in Audits
BRAND PROMOTIONS Walgreens and Target did have “price cuts” on Nature Valley products
Gross Margins
PRIVATE LABELS COMPARABLE? Used about half the Unit2 costs for our Private Labels Adjusted Private Labels
HIGHEST GROSS MARGINS? Neighborhood Market Wal-Mart
LOWEST GROSS MARGINS? ALDI
Gross Margins
Estimated Gross Margins, Granola Bars
Manufacturer
Neighborhood Market BVILLE GM
%Wal-Mart
MLK GM%Target FAY
GM%HARPS GM
%Walgreens FAY
GM%Kellogs Mean 49.54% 43.92% 67.25% 0.00% 0.00%
N 1 2 2 0 0Nature Valley Mean 26.62% 27.50% 31.01% 36.77% 51.19%
N 22 20 16 12 9
Private Label Mean 52.81% 56.30% 35.17% 0.00% 46.82%
N 16 7 14 0 2
Quaker Mean 26.35% 26.39% 20.36% 44.96% 56.63%
N 15 12 15 13 3
Total Mean 34.31% 32.95% 32.01% 41.03% 51.74%
N 70 61 60 25 14
Market ScoreboardMarket Score Board, Granola Bars
ManufacturesNeighborhood Market BVILLE
Wal-Mart MLK Target FAY HARPS
Walgreens FAY
Kellogs GM% 49.54% 43.92% 67.25% 0.00% 0.00% % of Total
Sum1.00% 3.08% 3.39% 0.00% 0.00%
% of Total N 1.43% 3.17% 3.33% 0.00% 0.00%N 1 2 2 0 0
Nature Valley GM% 26.62% 27.50% 31.01% 36.77% 51.19% % of Total
Sum32.00% 33.85% 26.27% 48.00% 64.29%
% of Total N 31.43% 31.75% 26.67% 48.00% 64.29%N 22 20 16 12 9
Private Label GM% 52.81% 56.30% 35.17% 0.00% 46.82% % of Total
Sum23.00% 11.54% 23.73% 0.00% 14.29%
% of Total N 22.86% 11.11% 23.33% 0.00% 14.29%N 16 7 14 0 2
Quaker GM% 26.35% 26.39% 20.36% 44.96% 56.63% % of Total
Sum23.00% 32.31% 25.42% 52.00% 21.43%
% of Total N 21.43% 22.22% 25.00% 52.00% 21.43%N 15 14 15 13 3
Total GM% 34.31% 32.95% 32.01% 41.03% 51.74% % of Total
Sum100.00% 100.00% 100.00% 100.00% 100.00%
% of Total N 100.00% 100.00% 100.00% 100.00% 100.00%N 70 63 60 25 14
MFR Brand Brand Variety0Private Label Walmart Great Value Sweet & Salty Almond0Private Label Walmart Great Value Sweet & Salty Peanut
0Private Label Walmart Great Value90 Calorie Chocolate Chunk
0Private Label Walmart Great Value Crunch Oats & Honey0Private Label Walmart Great Value Granola Bar Variety Pack
4Private Label Milliville Chewy Dipped Chocolate Chip4Private Label Milliville Chewy Dipped Peanut Butter
4Private Label MillivilleChewy Granola Bars Chocolate Chip
4Private Label MillivilleChewy Granola Bars
Peanut Butter and Chocolate Chip
4Private Label MillivilleChewy Granola Bars Variety Pack
4Private Label MillivilleFiber Now Granola Bars Oats And Chocolate
4Private Label MillivilleFiber Now Granola Bars Oats and Peanut Butter
4Private Label MillivilleSweet & Salty Nut Granola Bar Almonds
4Private Label MillivilleSweet & Salty Nut Granola Bar Peanuts
4Private Label Milliville Trail Mix Chewy Fruit & Nut Bars
•5 Great Value SKU’s (Wal-Mart) •10 Milliville SKU’s (ALDI)
Private Label TrendsGranola Audits 2011
Private Label TrendsGranola Audits 2012
YES! And they are growing…
•Retailers who gave a decent amount of shelf space to Private Labels had substantial Gross Margins.•Wal-Mart “Great Value” is competing with other brands with flavor and packaging.•Target is offering two Private Label brands with a variety of flavors and high quality packaging design. They are charging a premium price for Archer Farms.
• Wal-Mart – Great Value (9)• ALDI – Milliville (7)• Walgreens – Nice! (2)• Harps – Best Choice (8)•Target – Archer Farms & Market Pantry (15)
SUMMARY:•6 Private Label Brands•41 Private Label SKU’s•Private Labels have increased since last year’s audit
PRIVATE LABELS PRESENT?
Granola Audits 2011 Granola Audits 2012
Sales
Private Label National Brands
Sales
Private LabelNational Brands
Private Label Trends
Recommendations
Category is becoming more Retailer controlled Private Labels are becoming more significant within category Target and Wal-Mart have the highest gross margins and give more shelf space to their Private
LabelsTherefore, we would recommend that Harps increase emphasis on Private Labels because they
can obviously compete with national brands and generate high gross margins.
Harps on Garland Wal-mart on Joyce
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