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