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Cheese Crackers Spring 2013. Kristen Hopkins. Introduction. 5 stores audited in Fayetteville, AR 100 total SKUs Overall, retailer is not in control Category mostly controlled by Sunshine & Pepperidge Farm Target is the exception and is in control due to Market Pantry & Archer Farms brands.
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Cheese CrackersSpring 2013 Kristen Hopkins
Introduction • 5 stores audited in Fayetteville, AR • 100 total SKUs • Overall, retailer is not in control • Category mostly controlled by Sunshine & Pepperidge Farm • Target is the exception and is in control due to Market Pantry & Archer Farms brands
Importance of Depth Cheese Cracker Depth, Spring 2013, Fayetteville, Arkansas
Importance of Depth • Appropriate role for the category: FLAGSHIP
Strength of Competing Brands • Stores audited, depth, unique SKUs
Strength of Competing Brands • Pepperidge Farm and Sunshine dominate! • Supplier Share of Display Space by Retailer
Strength of Competing Brands • Sunshine Cheez-Its are at every stores • Pepperidge Farm Goldfish are at four of five stores • Sunshine and Pepperidge Farm are somewhat controlling the category
Strength of Competing Brands • Average gross margin estimates: • Sunshine: 20-40% • Pepperidge Farm: 27-62% • Nabisco: 7-60% • Stauffers: 38% • Special K: 73% • Archer Farms: 86%, Market Pantry: 57% (Target) • Great Value: 52-74% (Walmart) • Always Save: 60% (Harp’s) • Nice!: 78% (Walgreens) • Is this consistent with role? YES!
Private Label Opportunities • Private label is not that strong in the category • Target is more committed to PL than others
Private Label Opportunities • Private label will have slightly increasing presence • National brands (Sunshine & Pepperidge Farm) will still play a big role as there is always a demand, but due to demographics (young, price sensitive) private label will become a bigger player in Fayetteville, AR • Same retailer in prior semester audits, private label has increased by one or two SKUs • Target is the one retailer that had a dramatic increase in PL items tripling from 3 to 9
Private Label Recommendations • Walmart: increase use of private label • Has the largest amount of space given to the category, they can afford to dedicate more space to items that have 52% and 74% margin • Harp’s: increase use of PL • Second largest amount of space given to category, decreased PL facings since last audit when all other retailers increased, it would be in their best interest to keep up with competition • Target: continue their PL strategy • Increase use as necessary because it is working well • Dollar General: continue their PL strategy • Such a small assortment and their proportion of PL to national brands is accurate, if given more space for the category they can consider adding more PL items • Walgreens: continue their PL strategy • Such a small assortment and their proportion of PL to national brands is accurate, if given more space for the category they can consider adding more PL items
Major Changes by Stores • Increase from 69 to 100 total SKUs • Walmart: went from 18 to 66 SKUs and increased Cheez-Its display space • Harp’s: went from 7 to 52 SKUs, also increased Cheez-Its assortment • Target: went from 8 to 44 SKUs,increased private label • Dollar General: went from 2 to 9 SKUs, wider assortment of national brands • Walgreens: stayed at 6 SKUs with one private label, national brands dominating with 80% space