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GRANOLA Fall 2010

GRANOLA Fall 2010. Steven Lung. Demographics. Smaller households with a size of one or two members and no kids. Independent singles and established couples receive the largest share - targeted to younger adults

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GRANOLA Fall 2010

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  1. GRANOLAFall 2010 Steven Lung

  2. Demographics • Smaller households with a size of one or two members and no kids. • Independent singles and established couples receive the largest share - targeted to younger adults • The two strongest brands (Cascadian and Sunbelt) have an average price of 15 cents/once, while the third strongest brand has a range of 29 to 52 cents/once • Private Label Strategy, does provide flexibility for lower income families to receive a better quality product • Archer Farms is the only private label

  3. Demographics

  4. Marsh - “Cereal/other breakfast foods”, • Average weekly sales of $9,635.90 • 17.72% of gross margin • Granola category has a lesser amount of sales and penetration. • Average 2.18% item penetration, • Higher gross margins per item sold and lower penetration of the category

  5. Audits *Not found at any competing retailer No prior Audits

  6. Archer Farm’s is the only private label

  7. -Quaker presents an impressive 4.5 stocking rate due to its unique SKU • Cascadian and Sunbelt as the strongest brands • Highest Stocking Rate • Store Availability • Gross Margins • 68 SKUS

  8. Gross Margin estimates do not show consistency across retailers • Ozark Natural Foods different target market that is able to price their items at a higher price alongside their exclusive brands • Cascadian Farm a high margin item($3.01) ; furthermore, • Walmart’s lower prices create a gross margin ($0.71) differentiation with stores such as Target ($0.53). • Bob’s Red Mill is one of the weakest brands in the market

  9. Target’s Archer Farms is the only private label in the audit • Premium quality target • Price highly competitive with both Sunbelt and Cascadian Farm • Packaging, position • Gross margin makes • Hard to beat competitor. • Unique variety of SKU with its competitive price among both young and older demographics.

  10. Private labels seem to have a good opportunity to enter this market. The high prices and increasing demand on younger demographics appear to be attractive for private label.

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