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Apple Juice. Nate Wolfe | Bo Renner. Category Snapshot. Category Role. Theory: Families, and in particular, u pper-middle class, with children tend to be the most consistent consumers of apple juice. National Sales: $562 million – middle range. Category Role. Why Apple Juice?.
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Apple Juice Nate Wolfe | Bo Renner
Category Role • Theory: Families, and in particular, upper-middle class, with children tend to be the most consistent consumers of apple juice. • National Sales: $562 million – middle range
Why Apple Juice? • High number of different product offerings at multiple different locations. • High competition among private label brands against traditional, well-established brands. • Influx of various types of different juices to compete against the industry all together. E.g. Strawberry-Pineapple Juice, Kiwi-Melon Juice, etc.
Stores Audited • Walmart – MLK • Walmart – Mall • Walmart Neighborhood – Weddington • Harps – College • Marvins • Walgreens – W. MLK • Walgreens – Township • Walgreens – College • Flash Mart – MLK • Kum & Go - MLK
Retailers Audited • Walmart on College had the largest assortment with 33% of SKUs available. • Locations most popular among families carried the largest selection.
The Suppliers • Coca Cola – Minute Maid • Mott’s • Nestle – Juicy Juice • Musselman’s • Walmart – Great Value • Old Orchard Brands
The Suppliers • Old Orchard – most dominant with six SKU’s at five different stores. • Juicy Juice & Pepsi’s Oceanspray– very limited selection and higher price.
Determining Gross Margins • Minute Maid, on average, has the highest cost among major manufacturers, with $.10/ounce. • Always Save, on average, had the lowest cost with $.015/ounce. • The estimated private label cost per ounce is approximately $.02/ounce. • There were slight adjustments made on differentiating between the major manufacturer and private label price per unit.
Private Label Share “Good losers? Snacks and confectionary Cosmetics Baby food Alcoholic beverages “Success!” Paper, plastic, and wipes Refrigerated food Frozen food Shelf stable juices Low<30% Price gap with manufacturer brands “Bad stuff” – why? Home care Nonalcoholic beverages Personal care Bad winners? – no one but ourselves to blame. Pet food Healthcare Diapers and feminine hygiene High>30% Low <12% Private label share High > 12%