“Rolling Out the Plan”PRESENTING YOUR CASE PROJECT TO YOUR CLASSMATES.

Category Snapshot

TOTAL AUTOMATIC DISHWASHER COMPOUNDS (DETERGENTS) LBS. Total Dollars Behavior Scape Framework

      LifeStyle

BehaviorStageCosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns

Plain Rural Living Total

Start-Up FamiliesHHs with Young Children Only < 6 124 149 145 83 119 124 126

Small Scale FamiliesSmall HHs with Older Children 6+ 108 142 126 39 93 89 103

Younger Bustling FamiliesLarge HHs with Children (6+), HOH <40 105 166 161 95 140 134 136

Older Bustling FamiliesLarge HHs with Children (6+), HOH 40+ 148 183 168 79 131 140 149

Young TransitionalsAny size HHs, No Children, < 35 67 101 96 36 73 73 70

Independent Singles1 person HHs, No Children, 35-64 49 69 61 26 40 34 45

Senior Singles1 person HHs, No Children, 65+ 49 65 55 27 40 42 45

Established Couples2+ person HHs, No Children, 35-54 105 130 132 63 93 100 107

Empty Nest Couples2+ person HHs, No Children, 55-64 107 140 133 57 109 106 116

Senior Couples2+ person HHs, No Children, 65+ 115 143 140 55 105 107 117

Total 93 135 125 53 89 92 100

% Volume Index % Volume Index % Volume Index % Volume Index % Volume Index

55.9% 81 51.6% 75 62.6% 90 65.6% 95 59.5% 86

17.8% 149 5.7% 48 14.5% 121 10.6% 89 19.7% 165

21.1% 170 39.4% 318 14.0% 113 14.4% 116 14.0% 113

1.7% 40 1.5% 34 5.3% 123 7.0% 163 4.6% 108

3.6% 164 1.9% 90 3.6% 166 2.4% 112 2.1% 98

10.5% 133 7.4% 93 3.5% 44 5.1% 64 9.8% 124

20.9% 180 14.4% 124 8.8% 76 4.7% 41 13.2% 114

16.1% 142 22.7% 200 8.4% 74 5.5% 49 13.1% 115

12.5% 118 10.1% 96 12.3% 116 7.9% 75 11.5% 109

12.9% 139 8.5% 92 10.8% 117 5.9% 63 9.6% 104

17.3% 95 18.0% 99 16.0% 88 15.6% 86 17.8% 99

6.6% 56 10.4% 88 13.6% 116 14.9% 127 10.6% 90

2.0% 18 6.5% 57 16.2% 142 20.3% 178 8.7% 77

1.2% 15 2.0% 25 10.4% 129 20.1% 249 5.6% 69

Household Income

Under $10,000

$10,000 - $19,999

$20,000 - $29,999

$30,000 - $39,999

$40,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $149,999

$150,000 or More

Private label

Demographic Variables

Other

Pampa Armour Star Lard Bertocelli olive oil Dynasty 

Race of Head of Household

White

Black

Hispanic

Asian

Demographic Variables   % Total $ Index % Total $ Index % Total $ Index % Total $ IndexRace of Head of Household                 White 52.6% 76 64.6% 93 57.8% 84 64.8% 94 Black 24.7% 207 16.6% 139 19.5% 163 13.0% 109 Hispanic 15.4% 124 13.6% 109 15.7% 127 14.3% 116 Asian 3.1% 73 2.9% 67 4.6% 107 5.4% 126 Other 4.1% 191 2.4% 110 2.3% 107 2.5% 113Number of Persons                 1 Person 20.1% 74 17.7% 65 19.5% 72 18.9% 70 2 Persons 31.6% 97 36.2% 111 33.9% 105 33.9% 104 3 Persons 17.6% 109 17.7% 109 17.3% 107 16.9% 105 4 Persons 13.5% 102 14.4% 109 14.1% 106 15.1% 115 5+ Persons 17.3% 156 14.2% 127 15.2% 137 15.2% 136Household Income                 Under $10,000 11.0% 139 7.7% 97 7.2% 90 7.9% 99 $10,000 - $19,999 14.0% 120 12.6% 109 10.9% 93 10.8% 93 $20,000 - $29,999 14.9% 132 12.2% 108 11.2% 99 10.8% 96 $30,000 - $39,999 12.3% 116 11.8% 112 11.1% 105 11.3% 107 $40,000 - $49,999 10.7% 116 10.1% 109 10.3% 111 10.7% 116 $50,000 - $74,999 16.9% 94 18.1% 100 18.2% 100 17.9% 99 $75,000 - $99,999 8.8% 75 11.2% 96 11.9% 101 11.3% 97 $100,000 - $149,999 6.7% 58 10.4% 91 11.5% 101 12.0% 105 $150,000 or More 4.7% 58 5.9% 73 7.9% 98 7.3% 91

Ajax Dawn Palmolive Private Label

Step Two: Category Role

Share some personal interest in the category, maybe employment was an issue.

Size, in U.S. sales:

>$1 billion = high

<$100 million = small

Marsh Supermarket Data on the broader category

Interest in penetration, purchase cycles, deal

ITEM $ (000) DOLLAR SHARE

ITEM BUYERS (000)

ITEM PENETRATION

ITEM $ PER ITEM BUYER

PURCHASE CYCLE (IN

ELAPSED DAYS)

% REPEAT BUYERS (% 2+ TIME BUYERS)

LOYALTY (SHARE OF $ REQ.)

% ITEM $ ON DEAL

% DOLLARS WITH

MANUFACTURER COUPON

SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.174,090.3 100.0 37,100.2 32.0 $4.69 89.5 45.6 100.0 20.7 7.7

WEST SOUTH CENTRAL19,163.0 100.0 4,499.7 34.6 $4.26 90.4 46.1 100.0 16.2 9.0

SHAVE CREAMS - WOMEN'S

TOTAL U.S.84,697.0 100.0 16,981.2 14.6 $4.99 72.9 43.7 100.0 25.5 10.2

WEST SOUTH CENTRAL8,840.7 100.0 2,013.4 15.5 $4.39 76.1 41.4 100.0 18.2 9.3

AVEENO - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.3,627.0 2.1 632.5 0.5 $5.73 90.3 28.5 59.7 8.1 1.9

WEST SOUTH CENTRALNA NA NA NA NA NA NA NA NA NA

BARBASOL - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.20,565.3 11.8 10,280.3 8.9 $2.00 102.3 28.6 57.0 11.7 0.6

WEST SOUTH CENTRAL1,892.3 9.9 1,159.1 8.9 $1.63 100.0 25.1 52.5 3.7 0.2

COLGATE - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.3,751.4 2.2 2,115.5 8.9 $1.77 65.2 10.3 44.4 24.5 0.0

WEST SOUTH CENTRAL432.5 2.3 244.1 1.9 $1.77 67.8 7.3 47.4 22.8 0.0

CTL BR - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.3,750.3 2.2 1,549.4 1.3 $2.42 100.1 13.1 46.4 25.0 0.1

WEST SOUTH CENTRAL466.1 2.4 248.6 1.9 $1.88 92.9 9.6 54.4 8.7 0.0

CTL BR - SHAVE CREAMS - WOMEN'S TOTAL U.S.2,142.8 2.5 695.1 0.6 $3.08 90.0 21.3 44.8 18.3 0.0

WEST SOUTH CENTRALNA NA NA NA NA NA NA NA NA NA

EDGE ACTIVE CARE ADVANCED - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.5,655.1 3.3 1,946.3 1.7 $2.91 89.1 14.4 37.8 33.8 16.3

WEST SOUTH CENTRAL

588.2 3.1 221.8 1.7 $2.65 102.6 18.3 38.3 26.1 17.6

EDGE ADVANCED - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.52,976.2 30.4 11,673.4 10.1 $4.54 97.0 31.7 69.8 24.7 9.6

WEST SOUTH CENTRAL

5,611.4 29.3 1,420.5 10.9 $3.95 100.0 35.7 67.3 18.7 9.1ENVI - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.2,798.0 1.6 1,158.3 1.0 $2.42 81.6 23.7 49.9 1.9 0.0

WEST SOUTH CENTRAL523.9 2.7 223.1 1.7 $2.35 88.7 25.6 51.1 0.6 0.0

GILLETTE FOAMY - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.11,979.0 6.9 4,578.3 3.9 $2.62 106.2 27.7 57.8 13.5 2.2

WEST SOUTH CENTRAL

1,548.7 8.1 609.3 4.7 $2.54 107.8 33.5 60.7 14.5 5.9GILLETTE FUSION HYDRA GEL - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.12,886.2 7.4 2,964.4 2.6 $4.35 95.0 24.7 57.0 35.5 24.9

WEST SOUTH CENTRAL

1,548.1 8.1 337.8 2.6 $4.58 106.9 32.0 63.2 32.6 30.4GILLETTE SATIN CARE - SHAVE CREAMS - WOMEN'S

TOTAL U.S.17,893.1 21.1 5,374.2 4.6 $3.33 71.0 30.4 56.0 31.6 16.8

WEST SOUTH CENTRAL2,218.4 25.1 639.9 4.9 $3.47 70.7 32.3 63.3 23.4 12.3

GILLETTE SERIES - SHAVE CREAM - OTHER THAN WOMEN'S

TOTAL U.S.19,929.2 11.5 6,254.1 5.4 $3.19 89.1 24.5 49.9 24.5 11.6

WEST SOUTH CENTRAL

2,233.5 11.7 771.4 5.9 $2.90 88.9 23.8 49.3 23.0 16.7PURE SILK - SHAVE CREAMS - WOMEN'S

TOTAL U.S.5,871.7 6.9 3,073.4 2.7 $1.91 91.7 18.7 45.2 9.0 1.8

WEST SOUTH CENTRAL741.8 8.4 347.3 2.7 $2.14 79.3 18.7 53.0 3.8 1.0

SKINTIMATE - SHAVE CREAMS - WOMEN'S

TOTAL U.S.56,583.8 66.8 11,428.8 9.8 $4.95 80.0 36.8 82.7 26.3 9.8

WEST SOUTH CENTRAL5,599.1 63.3 1,365.0 10.5 $4.10 80.1 33.9 82.2 18.7 9.6

Assigning a Role to the Category

Why Gin?(Spring 2008)

Gin accounted for 4.4% of the market share in the liquor industry in 2007.

That’s $138,739,800!

The suppliers are more in control in the liquor industry because of the increasing demand for it. As long as there’s excess demand, suppliers will continue to make more and more product.

No private brands

Not your typical category. Lots of small manufacturers.

Courtney

Retailers Audited Store # SKU % of Cat

WM6 60 38.22%

WMJ 82 52.23%

IGA 50 31.85%

SAMS 2 1.27%

TARGET 2 1.27%

ALDI 5 3.18%

WG 5 3.18%

Harps W 45 28.66%

Harps G 68 43.31%

NHM (S) 84 53.50%

NHM (F) 43 27.39%

Springdale NHM had the most assortment with 53.50% of all the SKU’s found!!

Many times the PL is placed directly next to the “Grade A” brand to encourage consumers to purchase based on price

Stores Audited

Fayetteville

Aldi’s-1 Deal’s Dollar Store-2 Dollar General-1 Harp’s-39 (deepest)

Ozark Natural Foods-9

Sam’s-1 Target-6 Wal-Mart 6th Street-

21

St. LouisSchnuck’s-32Target-8

Rogers Wal-Mart-25

Bentonville Wal-Mart Neighborhood

Market-20Van Buren

CV’s IGA-27 Price Cutter-27 Walgreen’s-1

Changes in Category

Have any new suppliers or brands appeared since a recent audit was conducted (semester of last audit)?

What has happened to prices and a prior group’s gross margin estimates?

Changes in share of display, at specific stores? Changes were minor or major? Category predictions, its role for the retailer, needs, etc.

The Suppliers

Introduction to suppliers and their brands

What did you describe as a dominant brand—why? SKUs? Number of stores stocking the brand? Stocking rate?

Were there some surprising losers? Any major firms with little shelf space, a single facings, strange or low margins.

SKU’s

94 SKU’s discovered in audit

Supplier w/the most SKU’s of the identical product/formulation

- Ocean Spray had 34 SKU’s

- Private Label had 37 SKU’s

This leaves 23 SKU’s for the other five brands found Adjacencies next to Cranberry Juices: Other Juices i.e.

Grape Juice, V-8 Juices, etc. Location: in the middle of the aisle

LISTING OF FIRMS

DOMINANT BRANDS

Pinnacle Foods (Duncan Hines)

Lindt & Sprungli (Ghirardelli)

General Mills (Betty Crocker & Pillsbury)

Aldi’s

Ozark Natural Foods

Harps

STRUGGLING BRANDS

Gluten-free pantry

All of the OzarkNF brands

Martha White

Bakers Corner

Nature’s Path

Dr. Oetker

No Pudge

Arrowhead Mills

Bob’s Red Mill

Cherry Brook Kitchen

Namaste Foods

Market Pantry

Best Choice

Always Save

Stores Audited

Total number of stores audited by group

Listing of stores

Trade area demographics for specific stores

Anticipated depth for the stores of interest to group members

Store without any evidence at category management—no relationship between demographics and category depth

Jams and JelliesReport

13 16 16 5

22.5% 47.6% 36.8% 100.0%

22.0% 42.1% 33.3% 100.0%

31 17 20 1

51.9% 40.8% 41.2% 50.0%

52.5% 44.7% 41.7% 50.0%

11 5 12 1 1

18.1% 11.7% 21.9% 50.0% 100.0%

18.6% 13.2% 25.0% 50.0% 100.0%

4

7.5%

6.8%

59 38 48 2 1 5

100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

N

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

N

% of Total Sum

% of Total N

MFR #PL

JM Smuckers

Welch

Blackburns

Total

WM6_F IGA_F HG_F Target_F SAM_F ALDI_F

How did your group determine gross margin?

What brands had the highest costs, what was it costs per ounce?

What were the estimates for private label, costs per ounce?

What adjustments for sizes, deals, negative gross margins did you have to make?

SPSS, 5-6 stores—of interest, showing average gross margin by brand, % of Total, mean %

% HHsHHs Index

% HHsHHs Index

% HHsHHs Index

% HHsHHs Index

Race of Head of Household White 87.9% 127 71.0% 103 51.2% 74 66.3% 96 Black 1.5% 13 5.1% 43 7.3% 61 5.8% 48 Hispanic 4.7% 38 11.9% 97 35.4% 286 16.5% 134 Asian 4.4% 103 9.8% 228 3.1% 73 6.7% 155 Other 1.5% 68 2.1% 97 2.9% 135 4.7% 219

Under $10,000 6.1% 76 3.0% 38 11.9% 150 14.6% 184 $10,000 - $19,999 6.0% 52 3.2% 28 17.0% 147 14.7% 127 $20,000 - $29,999 8.9% 79 7.0% 62 16.4% 145 13.3% 117 $30,000 - $39,999 8.6% 82 9.3% 88 13.2% 125 13.2% 125 $40,000 - $49,999 8.9% 96 8.0% 87 9.3% 101 9.1% 98 $50,000 - $74,999 18.1% 100 22.4% 124 16.9% 94 15.4% 85 $75,000 - $99,999 13.6% 116 16.8% 143 8.8% 75 9.2% 78 $100,000 - $149,999 14.6% 128 19.8% 173 4.9% 43 6.9% 61 $150,000 or More 15.1% 187 10.4% 129 1.5% 18 3.5% 44

Demography#3360 #5124 #5768#2766

Circular Trade Areas: Phoenix Area Supercenters

% HHsHHs Index

% HHsHHs Index

% HHsHHs Index

% HHsHHs Index

Age of Head of Household Age 18 - 24 2.8% 65 2.2% 50 6.1% 141 19.8% 455 Age 25 - 34 14.3% 95 15.7% 104 17.2% 115 23.8% 158 Age 35 - 44 18.6% 105 29.3% 166 19.4% 110 15.8% 90 Age 45 - 54 21.5% 105 23.8% 117 20.4% 100 14.2% 69 Age 55 - 64 19.1% 100 15.7% 83 16.8% 88 12.5% 66 Age 65 - 74 12.3% 96 9.3% 72 10.8% 84 7.7% 60 Age 75 or More 11.3% 106 4.0% 37 9.2% 87 6.2% 59Age and Presence of Children Age < 6 5.1% 68 14.0% 187 6.6% 89 7.0% 93 Age 6 - 17 15.9% 85 22.1% 118 17.4% 93 11.7% 63 Age < 6 & 6 - 17 2.9% 45 10.7% 163 9.1% 137 3.6% 54 No Children 76.1% 113 53.2% 79 67.0% 100 77.8% 116Housing Tenure Own 62.2% 96 80.4% 124 54.1% 83 39.7% 61 Rent 37.8% 108 19.6% 56 45.9% 131 60.3% 172Education of Head of Household Not a High School Graduate 2.1% 16 5.5% 42 22.1% 166 9.0% 68 High School Graduate 12.8% 50 16.5% 65 27.2% 107 13.4% 53 Some College 27.3% 95 34.0% 118 32.6% 114 38.3% 133 College Graduate 34.2% 181 27.8% 147 12.4% 65 20.5% 108 Post College Degree 23.5% 173 16.2% 119 5.7% 42 18.8% 138

Demography#3360 #5124 #5768#2766

A.C. Nielsen Circular Trade Areas

Required component, some evidence in your PowerPoint file.

Does it explain differences in depth?

Does it explain different in shares of gross margin?

Does it explain difference in average gross margins?

FACINGS

WalGreen-School St. -Facings

WalGreen-6th St. - Facings

Walmart-Mall Ave. -

Facings

WalMart-6thST-Facings

Target-Shiloh- Facings

Harps-Crossover-

Facings

Harps-Garland-Facings

IGA-College-Facings

Dollar General- Garland- Facings

Dollar General- SchoolSt-Facings

% of Total Sum 20.0% 20.6% 14.1% 16.0% 29.6% 32.6% 18.0% 25.5% 17.9% 7.1%

% of Total N 20.6% 21.9% 16.7% 20.0% 35.7% 32.6% 21.8% 25.6% 20.0% 12.2%

N 7 7 6 8 10 15 12 10 11 5

% of Total Sum 2.9% 8.1% 5.0% 2.8% 6.7% 6.6% 9.1% 10.3% 3.6%

% of Total N 3.1% 11.1% 7.5% 3.6% 6.5% 5.5% 10.3% 10.9% 4.9%

N 1 4 3 1 3 3 4 6 2

% of Total Sum 14.3% 14.7% 16.2% 12.0% 18.3% 6.7% 3.3% 4.5% 9.0% 8.6%

% of Total N 14.7% 15.6% 16.7% 12.5% 14.3% 6.5% 3.6% 5.1% 10.9% 12.2%

N 5 5 6 5 4 3 2 2 6 5

% of Total Sum 28.6% 14.7% 22.2% 35.0% 29.6% 19.1% 26.2% 30.9% 6.2% 24.3%

% of Total N 26.5% 15.6% 25.0% 27.5% 25.0% 17.4% 20.0% 28.2% 7.3% 14.6%

N 9 5 9 11 7 8 11 11 4 6

% of Total Sum 22.9% 29.4% 16.2% 9.0% 9.9% 14.6% 9.0% 16.4% 23.4% 23.6%

% of Total N 23.5% 25.0% 8.3% 7.5% 10.7% 15.2% 9.1% 15.4% 21.8% 24.4%

N 8 8 3 3 3 7 5 6 12 10

% of Total Sum 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total N 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

N 34 32 36 40 28 46 55 39 55 41

SC Johnson

Private Label

Total

P&G

Reckitt Benckiser

Report

Manufacturer

Clorox

• Most PL gained best part in share of facings and share of SKUs in small stores (niche market such as DG, IGA)

• But strong national brands such as Windex and Clorox try to fight back and also has strong influence in big stores (Wal-Mart, Harps).

Gross Margin by Store and Manufacturer

5 15 5 11 14.352 .522 .360 .532 .521

9 10 5 9 10.249 .349 .235 .318 .429

6 9 2 6 8.236 .272 .198 .335 .45411 1 1 1

.289 .536 .459 .5363 1 2 1 5

.221 .306 .085 .306 .47334 36 15 27 38

.272 .406 .267 .408 .477

NMeanNMeanNMeanNMeanNMeanNMean

N-MfrPvt Lbl

J.Smucker

ConAgra

VenturaFoods

ACHFoods

Total

WM6-GM HP-GM WNM-GM PC-GM IGFAY-GM

Private label “success”Share of a categoryAcceptance by householdsConsumer “happiness”

Ability to evaluate quality

differences

Brand identity, internal & external

Retail concentration & differentiation

Category & retailer

profitability

Economic factors

Structure of supply

Retailer format success

“Good losers?Snacks and confectionaryCosmeticsBaby foodAlcoholic beverages

“Success!”Paper, plastic, and wipesRefrigerated foodFrozen foodShelf stable juices

Bad winners? – no one but ourselves to blame.Pet foodHealthcareDiapers and feminine hygiene

Pri

ce g

ap

wit

h m

an

ufa

ctu

rer

bra

nd

sH

igh

>3

0%

Low

<3

0%

Private label shareLow <12% High > 12%

“Bad stuff” – why?Home careNonalcoholic beveragesPersonal care

Global private label share and price gap

Spring 2014

Fall 2012

Fall 2010

Writing

Follow guidelines for double-spaced number of pages (26 lines, 3-4 paragraphs per page).

If you’re assigned to write a section—be sure all group members re-read it.

Include Heading for each of the eight sections and page breaks to separate sections/steps

Use subheadings within section if discussion in section is more than one page.