Category Management Project · 2020-07-01 · 4.5% Brand 9 4.1% Brand 10 3.3% TY vs LY $ SHARE NUTRITIONS/LIQUIDS/POWDER Subcategory Share Changes Brand X has a 4.5 share at Wakefern

1

Category Management Project

2

KPI Scorecard and Goals

• Impact Group focus accounts are Kroger, Albertsons, and the “All Other” accounts for

growing TDPs

Product 1 Product 2 Product 3 Product 4

Set

Goals

and

Track

Set

Goals

and

Track

Set

Goals

and

Track

Set

Goals

and

Track

3Source: Mintel SNACK, NUTRITION AND PERFORMANCE BARS US, FEBRUARY 2019

Mintel Insights

▪ Sugar amount and price are increasing in attribute importance with consumers while protein amount

importance has declined slightly.

4

▪ Bars across segments are

judged as being “too high in

sugar” as compared to some

competitive categories

▪ Manufacturers are reducing

the grams of sugar across all

bar types

▪ Half of bar eaters want bars

with less than 9g sugar

Source: Mintel SNACK, NUTRITION AND PERFORMANCE BARS US, FEBRUARY 2019

Sugar Impacts Bar Choice

▪ 41% of bar eaters say sugar impacts their bar choice and manufacturers have taken notice by lowering

average sugar for all bar types.

5

▪ 74% of consumers surveyed

agree that a healthy diet

should be low in sugar

▪ More than half of consumers

are concerned about future

health issues

▪ Concerns about the effects of

blood sugar on mood and

cravings is becoming more

prominent with 38% noting this

as a reason for limiting sugar

Consumers are Limiting Sugar Intake

Source: Mintel SUGAR AND ALTERNATIVE SWEETENERS US, DECEMBER 2018

▪ Nearly nine in 10 consumers (87%) are limiting their sugar intake, listing disease prevention and weight

management as the key reasons behind their efforts to reduce consumption.

6

Buyer Survey Matrix to Inform Strategy By Account

Source: Impact Group Client Managers Dec 2019

• Gathered data from buyers at various retailers to understand barriers to closing gaps on

fair share of space, overall category concerns, and other relevant information our client

manages needed before finalizing selling presentation.

• Output was a matrix to understand the landscape of buyer focus areas and concerns

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

7

Space to Sales Automated Scorecard for Client Managers

▪Scorecard has all

Impact Group

managed accounts

▪Updated Monthly and

posted to sharepoint

▪Shows competition to

easily find brands that

should have less space

▪Added $/MM ACV

PER ITEM to highlight

productivity by item

▪Rolled out to client

managers to easily

identify brands to

recommend taking

space from• Total Points Cumulative Weeks – Total Points of Distribution by week, added up to a 52-week total. Illustrates number

of UPCs and weeks of distribution for a brand across the total time period.

• $ per $MM per item – Reports each item’s sales per million dollars of ACV. This measure helps normalize sales rates of

brands with varying levels of distribution and number of distributed SKUs.

• Insert Informational Nugget 1

• Insert Informational Nugget 2

ABSCO Corp-RMA - Food

Rank Brand

Brand

% of

Total $

Sales

Brand %

of TDP

Cume

Weeks

Abs % of

Shelf Space

Gap v. Sales

for Cume

Wks

% of

Under/

Over

Spaced

$ Sales

$ Sales %

Change

vs YA

Unit Sales

Unit

Sales %

Change

vs YA

Brand

Share of

Total

Unit

Sales

Total

Points

Cumulative

Weeks

Total

Points

Cumulative

Weeks %

Change vs

YA

$ per

$MM

per Item

$ per

$MM

per Item

%Change

vs YA

NUTRITIONAL/INTRINSIC HEALTH VALUE BARS $ 86,879,374 4.2% 40,234,783 -2.4% 351,596 0.2% $ 6.35 4.7%

1 CLIF 30.0% 30.2% 0.2% 0.6% $ 26,063,430 1.4% 13,348,935 -9.6% 33.2% 106,163 0.6% $ 6.81 2.8%

2 KIND 14.3% 11.8% -2.5% -21.5% $ 12,437,178 2.1% 7,920,023 0.5% 19.7% 41,428 -0.6% $ 7.15 -5.4%

3 GENERAL MILLS 10.1% 10.3% 0.2% 1.8% $ 8,775,306 0.7% 2,419,987 1.5% 6.0% 36,158 -7.7% $ 8.02 19.2%

4 ATKINS 7.5% 5.6% -1.8% -32.6% $ 6,504,382 33.2% 817,582 34.9% 2.0% 19,857 27.4% $ 8.38 15.7%

5 POWER CRUNCH 6.0% 5.1% -0.9% -17.0% $ 5,177,874 11.1% 3,057,856 11.1% 7.6% 17,904 13.5% $ 9.57 -3.5%

6 QUEST 5.4% 4.8% -0.6% -12.6% $ 4,663,017 17.2% 2,194,295 30.3% 5.5% 16,752 10.5% $ 9.01 13.3%

7 RX BAR 4.5% 4.7% 0.2% 4.5% $ 3,893,866 2.6% 1,791,232 3.2% 4.5% 16,500 16.5% $ 6.24 -20.5%

8 THINK THIN 3.7% 4.3% 0.6% 14.8% $ 3,171,536 -7.2% 1,583,565 -9.1% 3.9% 15,071 -4.3% $ 4.80 -11.0%

9 GATORADE 1.8% 2.0% 0.2% 10.0% $ 1,533,680 -10.0% 693,466 -23.1% 1.7% 6,899 -13.4% $ 5.39 1.2%

10 KELLOGG 1.3% 1.4% 0.1% 6.3% $ 1,100,585 -14.0% 220,528 -19.9% 0.5% 4,752 -29.7% $ 5.29 35.4%

ALL OTHER BARS 15.6% 19.9% 4.3% 21.7% $ 13,558,521 -11.2% 6,187,312 -16.6% 15.4% 70,110 -11.8% $ 3.98 -3.6%

IRI / Unify Data, 26 Weeks Ending 12/29/19Account 1

Top 10 Bar

brands plus All

other

WE IMPACT

YOUR BRAND

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Brand A Sales and TDP Trends by Impact Group Account

▪ Largest sales growth is at Smiths, QFC, Roundy’s, ABSCO Southwest, ABSCO IM, ABSCO Portland, ABSCO Seattle, and

Meijer who all showed > 40% growth versus last year

▪ Total Albertsons Corporate and Kroger Corporate dollar sales are growing faster than US Food

▪ TDPs are growing across for all retailers except for Save Mart

▪ Specific account wins will be shared later in the presentation

Source: IRI Latest 52 weeks ending ?/??/??

Masked

sales

dollars

9

Brand X Deep Dive

10

Brand X Space to Sales for Top Retailers

▪ Sub Brand 1 is under spaced in bars across almost every retailer. Sub Brand B is close to fair share for category--risk of losing space during reviews.


Masked

sales

dollars

Masked

sales

dollars

Sub brand 1 Sub brand 2

11

Brand X Overview by Retailer

Source: IRI Latest 52 weeks through ?/??/??

▪ Brand X’s largest Food retailers are Kroger, Publix, Ahold, Albertsons and Wakefern

▪ Growth rates are 10-14% at these retailers except Wakefern which is only growing at 3.7%

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Wakefern Deep Dive

▪ Brand X at Wakefern is underperforming vs ROM MULO

• Subcat 2 is posting largest gap. Brand is declining -3.1% while rest of market is +4.8%. Opportunity exists to reverse these trends.

3.7%11.0%

-3.1%

26.6% 29.6%

3.9%

-8.3%

11.0%17.9%

4.8%

21.0%

32.4%

4.7%

-30.5%-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

Brands 1 and 2Wakefern Wakefern ROM MULO

Total

Brand X

Brand X subcat1 Brand X

subcat2

Brand X subcat 3 Brand X

subcat 4

Brand X

subcat 5

Brand X

subcat 6


13

11.4%

9.0%

9.3%

7.2%

6.6%

3.8%

4.8%

5.0%

4.2%3.3%

Brand 112.9%

Brand 211.3%

Brand 37.7%Brand 4

7.0%

Brand 55.7%

Brand 64.8%

Brand 74.7%

Brand X4.5%

Brand 94.1%

Brand 103.3%

TY vs LY $ SHARENUTRITIONS/LIQUIDS/POWDER

Subcategory Share Changes

▪ Brand X has a 4.5 share at Wakefern

but is -0.5 points versus last year • Decline driven by 4ct (-11.8%), while 8ct is

growing(+21.4%)

▪ Brand1&2 total brand has grown

dollar share by +3.6pts• Growth driven by 6ct

▪ Brand 6 has also grown share by 1.0

pt• Growth driven by 4ct

▪ Most other brands are losing share

*Outside ring = TY / Inside ring = LY


14

Shopper Overlap

▪ Shopper behavior shows that Brand X is most likely not losing consumers to Brand 1 and 2 due to the low

overlap. It is much more likely that Brand X consumers interact more with Brand 6 or Brand 10.

▪ It is much more likely that Wakefern’s merch support of Brands 1&2 is the main driver for growth and the

decline of other brands.

5.5% 11.3%

Source: ABSCO Shopper 360 CMR CHHP 52 W/E 2020.XX

14.1%

* one-time buyers excluded; subcat2 only. Using ABSCO shopper dynamics to infer consumer behavior at Wakefern

Brand 10Brand XBrand 6Brand XBrands 1&2Brand X

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Brand 6 lost Merch Support at Wakefern leading to slower growth than other retailers

▪Wakefern has increased merch support on Brands 1 to 5 while Brand 8’s

support has decreased significantly.

$2,473,249

$600,187

$397,280

$376,166

$286,068

-$12,883

-$86,227

-$159,995

-$218,873

-$381,235

-$1,000,000 -$500,000 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000

Ensure

Pediasure

Premier Protein

Muscle Milk

Core Power

Pure Protein

Slim Fast

Boost

Atkins

Glucerna

Dollar Sales Any Merch Change vs YA

Source: IRI Latest 52 weeks ending X/XX/XX

• Merch sales at Wakefern are -39% vs year ago

• Any Merch ACV from 65% to 34%

• Avg weighted weeks of support from 34 to 18

Brand X

Brand 7

Brand 6

Brand 5

Brand 4

Brand 3

Brand 2

Brand 1

Brand 9

16

Promo Sales by Brand

▪Brand X has the lowest

percent sold on merch of any of the top 10 brands

▪Decrease in merch support

has affected Brand X’s sales

trends at Wakefern (-3.7% vs

ya while ROM +4.8%)

▪Recommend Wakefern to invest more merch support in

Brand X to reverse share

declines and slower growth

rates than other retailers


Brand 9

Brand 8

Brand 7

Brand 6

Brand X

Brand 4

Brand 3

Brand 2

Brand 1

17

Kroger Growth Rates by Banner- Brand X

▪ Kroger is the largest Food retailer for Brand X and most banners are growing >10% vs year ago.

▪ Ralphs is the largest banner that has less than 10% growth rate. Sales are growing 5.6% vs year ago but there is an opportunity for faster growth.

Division by Dollar Sales

Division by Growth Rate


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Brand X’s Growth Trends are Slowing at Ralphs

5.6%

10.7%

-26.5%

-1.4%

1.6%

-24.6%

TTL $ % Chg Base $ % Chg Incremental $ % Chg

Brand X Ralphs $ % Chg

52 Wks 26 Wks

▪The majority of Brand X’s sales at Ralphs are base sales, but the steep declines in

incremental sales are offsetting base sales growth rates in the past year

▪Growth rates in the latest 26 weeks are slowing when compared to 52-week trends and

are being driven by declines in TDPs from the latest reset

90%

10%

Brand X Dollar Sales

by Type at Ralphs

Source: IRI Latest 26 and 52 weeks ending X/XX/XX

Incremental $

Base $

19

Brand X Decomp Tree for Ralphs- Latest 52 weeks

▪In the past year Brand X has -22% in incremental dollars versus prior year. This is dragging down the gains that

have been made in base sales. Brand X is getting approximately the same amount of merch support, but the

activity has switched from Display to Feature Only.

▪TDPs (-0.8%) are just starting to show declines in # of items selling.


20

Brand X Decomp Tree for Ralphs- Latest 26 weeks

▪In the latest 26 weeks the Brand X’s TDP declines accelerate and are -6.5%.

▪In the Diet Category P9 review, Brand X gained 2 items, but lost 9 items which is affecting base sales trends.

▪Shorter term merch activity (26wks) is showing growth versus year ago.


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Ralphs Opportunities

▪There is an opportunity to optimize assortment.

• Ralphs is missing 3 of the top 20 items in MULO and Ralphs ROM (large packs)

▪Address the losses during the last review.

• TDP’s are down at Ralphs.

• Brand X lost a net 7 items at Ralphs in the last review.

▪Recommend to analyze where these dollars and households went by utilizing Stratum.

▪Ralphs has switched display support for feature only support which is driving lower incremental sales than prior year.

▪Merch support weeks are flat, but tactic has shifted from display to feature.


22

Albertsons Growth Rates by Division- Brand X

▪All of Albertsons Divisions are

growing except for Acme and

United.

▪Albertsons is +8.5% vs year

ago.

Division by Dollar Sales

Division by Growth Rate


23

Albertsons Shopper Insights Drivers- Brand X

Brand X growth is driven by an

11.7% increase in Baskets

Household Penetration is up

7.6% to 1.2% HH pen

Total Category HH pen is 16%

Baskets/Household are up 4%-

more shoppers are buying

Brand X more often

Source: ABSCO Shopper 360 RSC All HHs 52 W/E 2020.XX

Brand X

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Albertsons Shopper Insights Drivers- Brand X Subcat 1

Brand X Subcat 1 are the only

segment that is down. Subcat 1

are 25% of total Brand X sales

The decline is caused by a 7.1%

decrease in household

penetration

HH Penetration is down for all

shopper segments: E/B -5.1%,

Good, -7.5%, Occasional, -6.9%


HH Penetration is down in

all but 3 divisions – Jewel,

Shaw’s and Portland

Brand X Subcat 1

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Albertsons Shopper Insights Drivers- Brand X Subcat 1

It’s important to focus on

regaining the Elite & Best

Households lost because they are

Brand X’s biggest shopper base

with 41% share

They make up 54% of sales and

they spend 43% more per

Household than Good Shoppers

and over double what

Occasional Shoppers spend per

year on Brand X

If Brand X changed the 5%

decline in E/B HH Pen to a 5%

increase, nearly $130,000 would

be gained


Brand X Subcat 1 Brand X Subcat 1

Brand X Subcat 1

26

▪ The loss of households is weighted

towards Shoppers who left both the

brand and the Category – a net loss of -

8.5%

▪ Brand X also lost shoppers who stopped

buying Brand X Subcat 1 but continue to

buy in the category – a net lost of -5.6%.

These shoppers will be easier to regain

▪ The opportunity lies with cross-promoting

Brand X Subcat 1 with other Brand X

Subcats

▪ All other segments have double-digit

gains in New Households

▪ There’s less than 6% overlap in

households purchasing any of the

segments, so there’s opportunity to get

Brand X Subcat 1 to buy other segments

too

Source: ABSCO Shopper 360 CPR & CMR 10% Sample All HHs 52 W/E 2020.03

38.6% New to Brand X

Subcat 1 s & new to

Category


Subcat 1, not new to

Category


Subcat 1& new to

Category & ABSCO

Albertsons Shopper Insights Drivers

41.7% Lapsed from Brand

X Subcat 1 & Subcat 1

48.3% Lapsed from Brand

X subcat 1 but stayed in

Category

10% Lapsed from Brand

X Subcat 1, Subcat 1

and ABSCO

Household Overlap – Excluding 1 Time Buyers

Brand XSubcat 1

Brand XSubcat 2

Brand XSubcat 3

Brand XSubcat 4

Subcat 1 Subcat 2 Subcat 3 Subcat 4

27

Deep Dive Recos for Brand X

▪Leverage shopper insights to develop retailer strategy. Households and baskets per household are growing at ABSCO with Brand X.

▪Promote Brand X across multiple segments to encourage multi-segment baskets. Brand X subcats 1 and 2 are the highest HH pen and fastest growing so these can be leveraged to turn around business with co-promotion.

▪Review Stratum data to make a case for increased distribution on key Brand X items to reverse trends from P9 reset.

▪Evaluate larger pack assortment items for distribution at Ralphs based on success in ROM.

▪Leverage bump chart to show lift and incremental sales for display activity versus feature.

▪Recommend to Wakefern to ensure promotional strategy covers the various consumer groups. Currently Wakefern is over supporting Brand 1 at the expense of low carb/low sugar brands such as Brands X and Y.

▪Wakefern is losing to ROM for all Brand X segments, but especially subcat 1.

Evaluate price points, promo activity, and counts versus ROM.


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Syndicated Data Solutions

▪ Total Store for Edibles and Non-Edibles▪ All releasable retailers/Channels

except Walmart and Sam’s Club

▪ Whole Foods and Smart & Final data

▪ TDLinx to drive retail

▪ Natural Enhanced and Conventional

Channel Trends▪ Spins defined attributes/hierarchy

▪ Numerator Promotions Intelligence

▪ Category/Consumer Trends

Note: Impact Group complies with all data sharing policies and restrictions. Our data is not a

replacement for your own data contract. We leverage data to uncover insights to drive growth.

Documents

Category Management Project · 2020-07-01 · 4.5% Brand 9 4.1% Brand 10 3.3% TY vs LY $ SHARE NUTRITIONS/LIQUIDS/POWDER Subcategory Share Changes Brand X has a 4.5 share at Wakefern