Canned Corn Spring 2014

1. Canned CornSpring 2014 Our Category: Canned Corn is a staple good in every retail store, targeting the older and larger household families. As every company continues to add value to their products, canned corned producers are no different as they are continuing to add innovative packaging and unique flavors constantly. Our category strives to be diverse, fully stocked, and constantly there for your entire families needs. By: Ethan Toland & John Albertson

2. Product SnapshotCanned Whole Corn

3. Assigning a Role to the Category • We would DEAL in this category! • 25% Gross Margin average across our 10 stores

4. Stores Audited • Fayetteville - # SKUs • Walmart Neighborhood Market on Mission - 27 • Harps on Mission - 14 • Walgreens on Mission – 1 • Marvin's IGA on Lafayette - 8 • Harps on Garland - 13 • Target - 5 • Ozark Natural Foods - 1 • Springdale - # SKUs • Walmart on 71 – 33 • Walgreens on 71 - 1 • Aldi on 71 - 2 • 61 Total SKUs at 10 different stores

5. Stores Audited • The Walmart off of 71b/ College in Springdale had the largest assortment of Canned Corn, carrying 54% of all SKUs found in the area. • The Walmart Neighborhood Market off of Mission and Crossover in Fayetteville had the second largest selection with 44% of all SKUs found in the area. This is due to an overall smaller store. • Walgreens carried only one canned corn product at both their locations • Target carried 2 private label products and 3 Del Monte Products

6. SPSS SPSS

7. Circular Trade Areas- NWA

8. Circular Trade Areas- NWA

9. Category Strategy 1 2 3 • Walmart 71- Springdale • Del Monte • 25% Gross Margin • 47% Shelf Space • Green Giant/ General Mills • 33% Gross Margin • 18.8% Shelf Space • Libby’s / Seneca Foods • 27% Gross Margin • 11.1% Shelf Space • Harps - Garland • Private Label • 21% Gross Margin • 41.6% Shelf Space • Green Giant/ General Mills • 41% Gross Margin • 36.2% Shelf Space • Del Monte • 18% Gross Margin • 22.2% Shelf Space • Marvin's - Lafayette • Private Label • 25% Gross Margin • 59% Shelf Space • Libby’s / Seneca Foods • 19% Gross Margin • 26.9% Shelf Space • Del Monte • 38% Gross Margin • 14.2% Shelf Space

10. Private Label vs. National Brands • Private label has a significant portion of the category across the board • Harps on Garland – 42% Shelf Space devoted to Private Label • Marvin’s on Lafayette- 59% of Shelf Space devoted to Private Label • Private Label Gross Margins • The Harps on Garland % Gross Margin for Private Label was higher than their % Gross Margin on Del Monte Canned Corn • The Marvin’s on Lafayette % Gross Margin for Private Label was higher than their % Gross Margin on Libby’s Canned Corn • Every store we went to had private labels so we consider this a success. We also believe they should • maintain rather than increase or decrease. • Stores are seeing Private Label canned corn as a good way to expand their private label brand • Almost no perceived quality difference between national and private label brands

11. Category Review • Private Label SKUs and shelf space has increased dramatically • Harps on Garland has increased their Private Label Shelf Space % by 17% since 2011 • More Shelf Space does not necessarily mean more SKUs however • More “Value-Added” product were introduced to the market place • Large increase in varying of size of containers, from 8.5 Ounce to 87 Ounce containers • Innovative packaging that creates one serving of Corn compared to multiple servings in your traditional Cans. • Consumers show nearly no Perceived Quality Gap with Private Label Canned Corn • Hard to tell any difference between the premium branded Canned Corn and Private Label Canned Corn

12. Thank you! • Any Questions?