Apple Juice Mark Gentry & Louis Vasquez
Category Assessment • We Audited 10 Stores • (3) Wal-Mart • (3) Harp’s • (2) WalGreen’s • (1) Marvin’s • (1) Target • We found a total of 30 sku’s for these stores • Great Value was the leading Brand in Wal-Mart • Nestle Juicy Juice was found in 7 out of 10 store
Overview • The category Apple Juice had total sales of 616,309,900 in 2007. • Private Label Per Store is the leading brand • For the stores we audited we found that the Private Label brands led the way especially for Wal-Mart and Harp’s.
Demographics • According to data for the selling year of 2003 • The leading buyer in Apple Juice plus Private label have the following qualities: • Income $30,000-$70,000 • Kids less than 6 years old • 5+ Family member • Old Orchard led the way for lower income families • Along, with lucky leaf for incomes under $20,000
Display Space • Wal-Mart had the largest display and selection of Apple Juice Available • They used on average 54% of the facing available per store to display their great value product • Harp’s had the next highest percentage at 40% • The smaller stores usually had a about 50/50 ratio of their private label displayed
Private Label • With Wal-Mart leading the way all retail chains large and small have begun to develop a private label • Wal-Mart • Great Value • Target • Market Pantry • Harp’s • AWG/Always Save • Wal-Greens • Wal-Greens
Category Role • Apple Juice maintains margins anywhere from 20% to 50% • According to 2007 data Apple Juice had a penetration percentage of 41% • This break down leads to Apple Juice being a “Cash Machine”
Recommendations • Private label was seen in all the stores we chose to audit • Wal-Mart led the way in this category by far and away. • Their entry into this category has shown great success but has not made other retailers shy away from pursuing their labels as they all have shown success. • Private label in Apple Juice shows proven success and would be a wise choice to enter the market.