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Energy Drinks 2014

Energy Drinks 2014. Jener Smith Adam Calabrese. Overview. Category Demographics Stores We Audited Depth of Category Success of Strong Brands Private Label Category Strategy. Category Snapshot. Red Bull. Monster. Rockstar. Stores We Audited. Fayetteville Wal-Mart MLK

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Energy Drinks 2014

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  1. Energy Drinks 2014 Jener Smith Adam Calabrese

  2. Overview • Category Demographics • Stores We Audited • Depth of Category • Success of Strong Brands • Private Label • Category Strategy

  3. Category Snapshot

  4. Red Bull Monster Rockstar

  5. Stores We Audited Fayetteville • Wal-Mart MLK • Wal-Mart Joyce • Neighborhood Wal-Mart Wedington • Wal-Mart on Campus • Harp’s Garland • Harp’s Wedington • E-Z Mart MLK • Kum and Go College Ave. • Murphy USA Wedington • Sam’s Club Garland

  6. Depth of Each Store

  7. Depth of Category • Monster and Red Bull account for the majority of facings/shelf space • Red Bull had 85 SKUs • Monster had 103 SKUs • Rockstar successful in Wal-Mart on Campus

  8. Success of Strong Brands • Gross margin percentages are very high for Red Bull and Monster • Stores like Walmart on Campus and convenience stores should carry more Rockstar because depth of single can products yields high gross margins

  9. Red Bull and Monster • According to Ad Hoc Base 2007 data, Red Bull had sales of $170,066,000 in U.S. and Monster had sales of $94,656,000 in U.S. • Item penetration for Red Bull was 2.9 and Monster was 2.8 • Repeat buyers was slightly higher for Monster than Red Bull • Gross Margins were high for both (an average of 35%-40% in all stores)

  10. Cash Machine/Flagship

  11. Private Label

  12. Private Labels Discovered • Yike’s: E-Z Mart • Nuclear: Kum and Go • Quick Strike: Murphy USA Kum and Go private label “Nuclear” had gross margins of 8%, while E-Z Mart’s “Yike’s” yielded 4% gross margins.

  13. Private Label Performs Poorly • WHY? • Because you can taste the difference! • Gross margins for E-Z Mart private label “Yike’s” performs poorly and should be viewed as a waste of shelf space • Private Label is commonly found at convenience stores where category is over-saturated

  14. Solutions for Convenience Store • Example? • Wal-Mart on Campus! • This location took advantage of its ability to stock many single can SKUs by stocking a large variety of Rockstar and Monster as well as high depth in Red Bull single cans.

  15. Category Strategy • Know your target market: Wal-Mart MLK takes advantage of college market and carries large number of SKUs • Wal-Mart on campus stocks Rockstar • Private Labels should always be re-evaluated • Grocery stores should take advantage of packages and convenience stores should focus on variety of strong brands

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