“Rolling Out the Plan”

1. “Rolling Out the Plan” Presenting your case project to your classmates.

2. Category Snapshot

4. Ajax Dawn Palmolive Private Label

5. Share some personal interest in the category, maybe employment was an issue. • Size, in U.S. sales: >$1 billion = high <$100 million = small • Marsh Supermarket Data on the broader category • Interest in penetration, purchase cycles, deal Step Two: Category Role

7. Assigning a Role to the Category

8. Gin accounted for 4.4% of the market share in the liquor industry in 2007. That’s $138,739,800! The suppliers are more in control in the liquor industry because of the increasing demand for it. As long as there’s excess demand, suppliers will continue to make more and more product. No private brands Not your typical category. Lots of small manufacturers. Why Gin?(Spring 2008) Courtney

9. Retailers Audited • Springdale NHM had the most assortment with 53.50% of all the SKU’s found!! • Many times the PL is placed directly next to the “Grade A” brand to encourage consumers to purchase based on price

10. Fayetteville • Aldi’s-1 • Deal’s Dollar Store-2 • Dollar General-1 • Harp’s-39 (deepest) • Ozark Natural Foods-9 • Sam’s-1 • Target-6 • Wal-Mart 6th Street-21 Stores Audited • St. Louis • Schnuck’s-32 • Target-8 • Rogers • Wal-Mart-25 • Bentonville • Wal-Mart Neighborhood Market-20 • Van Buren • CV’s IGA-27 • Price Cutter-27 • Walgreen’s-1

11. Have any new suppliers or brands appeared since a recent audit was conducted (semester of last audit)? What has happened to prices and a prior group’s gross margin estimates? Changes in share of display, at specific stores? Changes were minor or major? Category predictions, its role for the retailer, needs, etc. Changes in Category

12. Introduction to suppliers and their brands What did you describe as a dominant brand—why? SKUs? Number of stores stocking the brand? Stocking rate? Were there some surprising losers? Any major firms with little shelf space, a single facings, strange or low margins. The Suppliers

13. 94 SKU’s discovered in audit Supplier w/the most SKU’s of the identical product/formulation - Ocean Spray had 34 SKU’s - Private Label had 37 SKU’s This leaves 23 SKU’s for the other five brands found Adjacencies next to Cranberry Juices: Other Juices i.e. Grape Juice, V-8 Juices, etc. Location: in the middle of the aisle SKU’s

14. LISTING OF FIRMS DOMINANT BRANDS • Pinnacle Foods (Duncan Hines) • Lindt & Sprungli (Ghirardelli) • General Mills (Betty Crocker & Pillsbury) Aldi’s Ozark Natural Foods Harps STRUGGLING BRANDS • Gluten-free pantry • All of the OzarkNF brands • Martha White • Bakers Corner • Nature’s Path • Dr. Oetker • No Pudge • Arrowhead Mills • Bob’s Red Mill • Cherry Brook Kitchen • Namaste Foods • Market Pantry • Best Choice • Always Save

15. Total number of stores audited by group Listing of stores Trade area demographics for specific stores Anticipated depth for the stores of interest to group members Store without any evidence at category management—no relationship between demographics and category depth Stores Audited

16. Jams and Jellies

17. What brands had the highest costs, what was it costs per ounce? What were the estimates for private label, costs per ounce? What adjustments for sizes, deals, negative gross margins did you have to make? SPSS, 5-6 stores—of interest, showing average gross margin by brand, % of Total, mean % How did your group determine gross margin?

18. Circular Trade Areas: Phoenix Area Supercenters

20. Required component, some evidence in your PowerPoint file. Does it explain differences in depth? Does it explain different in shares of gross margin? Does it explain difference in average gross margins? A.C. Nielsen Circular Trade Areas

21. FACINGS • Most PL gained best part in share of facings and share of SKUs in small stores (niche market such as DG, IGA) • But strong national brands such as Windex and Clorox try to fight back and also has strong influence in big stores (Wal-Mart, Harps).

22. N-Mfr WM6-GM HP-GM WNM-GM PC-GM IGFAY-GM Pvt Lbl N 5 15 5 11 14 Mean .352 .522 .360 .532 .521 J.Smucker N 9 10 5 9 10 Mean .249 .349 .235 .318 .429 ConAgra N 6 9 2 6 8 Mean .236 .272 .198 .335 .454 VenturaFoods N 11 1 1 1 Mean .289 .536 .459 .536 ACHFoods N 3 1 2 1 5 Mean .221 .306 .085 .306 .473 Total N 34 36 15 27 38 Mean .272 .406 .267 .408 .477 Gross Margin by Store and Manufacturer

25. Ability to evaluate quality differences Category & retailer profitability Economic factors Brand identity, internal & external Private label “success” Share of a categoryAcceptance by households Consumer “happiness” Retailer format success Retail concentration & differentiation Structure of supply

26. Low<30% Global private label share and price gap “Good losers? Snacks and confectionary Cosmetics Baby food Alcoholic beverages “Success!” Paper, plastic, and wipes Refrigerated food Frozen food Shelf stable juices 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%

27. Spring 2014

28. Fall 2012

29. Fall 2010

30. Follow guidelines for double-spaced number of pages (26 lines, 3-4 paragraphs per page). If you’re assigned to write a section—be sure all group members re-read it. Include Heading for each of the eight sections and page breaks to separate sections/steps Use subheadings within section if discussion in section is more than one page. Writing