Apple Juice

1. Apple Juice Ashliegh Dumont & Alex Coreas

2. Total category Demographics • Struggling Urban Cores • Start-Up Families • Large households with Children 6+, Head of household under 40

3. Demographics • Higher index of Black & Hispanic races • Head of household ages 25-44

4. Demographics • Large families with children • $100,000-$149,999 income

5. Category Assessment • 8 stores audited • Wal-Mart Supercenter 6th Street • Wal-Mart on Campus Garland • Wal-Mart Neighborhood Market Crossover • Marvins IGA Lafayette • Walgreens Township • Dollar General College Ave. • Harps Garland • Ozark Natural Foods

6. Assessment results • Wal-Mart Supercenter • Juicy Juice brand domination but Great Value shelf space domination • Great Values 96 Oz 100% Apple had 45 facings • Nestles Juicy Juice was found in 6 out of 8 stores • Ozark Natural Foods & Dollar General did not stock it • Juicy Juice & Wal-marts Relationship • Gross margins are significantly lower on 64 Oz jug of 100% Juice • Building supplier relationship = okay to have these low margins

7. Shelf space

8. Assessment results • Martinellis • Wal-Marts pricing & gross margins are significantly lower • Harps is charging almost $3.00 more than Wal-Mart • Example of strong supplier relationship for Wal-Mart • Always Save brand is priced as the lowest out of any brands • Harps and Marvin’s IGA carry these • Catering to a certain demographic • Apple juice is found at every grocery retailer

9. Gross Margins

10. Gross Margin vs. Size Takeaway • The smaller ounces (12 to 64 Oz) tend to do much better than larger counterparts • Smaller ounces capture most of the gross margins • This was the case for the Retailer’s brand and Manufacturer’s brand • This can be attributed to the Spectra demographic statistics • Most Apple Juice is bought by households of 3-5 or more and mostly bigger families • Prices were relatively constant among Private Label and manufacturer’s apple juices in relation to the ounces all across the board • Did show slight increase when the container changed • Example-Apple Juice jars and Jugs cost more than frozen can and boxes even if overall ounces equaled their counterpart • Example-Great Values frozen can produces 80% Gross Margins

11. Ad Hoc Base

12. Private Label Potential& Opportunities • Wal-Mart had greater presence of Private Label • Great Value had 64 facings compared to 30 in 2010 • Wal-Mart created an impact in Private Label • Takes most of their facings • Presents the best Gross Margins • 57% @ Wal-Mart MLK for Apple Juice in Jugs • Walgreens’s PL brand “Nice!” presents a 70% Gross Margin presence amongst the manufacturer brands • Harps’ brand “Always Save” and “AWG” present exceptional Gross Margin returns in this category • Private label overall had the leading Gross Margins • Every retailer carried some form of Private Label Apple Juice essentially committing them to their own form of private label product

13. Trending & Highest ranked items • Catering to families / focusing on toddlers • Up and Coming trend of attractive toddler packaging • Wal-Mart is the only retailer evaluated taking advantage of these trends by carrying all 4 highly ranked items • Shows why Wal-Mart has majority Juicy Juice SKUs compared to previous years when Great Value had the most SKUs • Juicy Juice – Index of 163 • Tummy Tickler- Index of 173 • Tummy Tickler Tots- Index of 179 • Motts for Tots – Index of 183

14. Recommendations • Wal-Mart on Garland has very few SKUs (4 facings in Great Value, 2 in Ocean Spray • Seems to be a coherent strategy congruent to store size and age. • Mostly dependent on Private Label at this point • Would recommend that they diversify to differentiate their selection. Opportunity based on location and size.