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Automatic Dishwasher Detergent

Automatic Dishwasher Detergent. Jeffrey Torok Morgan Sinclair. Category Overview. The U.S. detergents market, valued at $11 billion in 2007 Increasing competition during the 2000s. Convenience was a major driver of growth Liquid detergents have outpaced powders

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Automatic Dishwasher Detergent

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  1. Automatic Dishwasher Detergent Jeffrey Torok Morgan Sinclair

  2. Category Overview • The U.S. detergents market, valued at $11 billion in 2007 • Increasing competition during the 2000s. • Convenience was a major driver of growth • Liquid detergents have outpaced powders • To meet the needs of various market segments, the industry introduced an increase of brands and varieties.

  3. Audit

  4. Who’s in control? • Based on the selections that are offered and the placements of the brands, we believe that the suppliers are in control. • Since there is such a low variety and low amount of facings in the private label’s and weak brands, it’s hard to imagine that the retailer has much control • As shown in the following slide…

  5. Depth 2011 2010

  6. Demographics for Name Brands •$70,000-$99,000 household income •Female head age 35-44 •Households with 3-4members •Households with kids under 6 •Households Affluency-Affluent •Mature Family’s living comfortably •Race-Caucasian

  7. Dominant Brands • Most dominant brands -P&G. • Cascade Action Pacs and Powder were the 2 most dominant • The SKU that showed up in every store – P&G, the Action Pacs

  8. Market Stocking Rates Colgate-Palmolive had the highest percentage of their products stocked across it’s competitors.

  9. Average Gross Margins All the Gross Margins stayed relatively close to each averaging around 44%. With the highest being a Wal-Mart on MLK and the lowest at Harps.

  10. Private Label • Private Label’s do not have a very strong presence in the Non-Food Dishwashing detergent category. • All of our store’s carried their own private label and the while the gross margins are high, they are still lower than some of the national brands. • We recommend that the stores do raise the prices on some of their private label selections, to increase the overall gross margins. • The overall price differential from private label to national brand is substantially lower, the GM is too low.

  11. Private Label

  12. Private Label • Private label’s should have a decreasing presence in this category. • The low GM and the increasing presence of National Brands are starting to have an effect on PL sales. • The demographics of our category shows that middle to upper income house holds are the most dominate buyers of our product. Since they have more discretionary income; they do not mind spending extra to get the national brands.

  13. Private Label • The GM have stayed relatively the same from previous semesters. • The presence of Private Labels have decreased in the overall market for our category.

  14. Recommendations • Our recommendation is that Wal-Mart on MLK BLVD should not increase their Private Label SKU for powder. The GM for powder is too low, reaching as low as 7%. They should think about increasing their gel’s, the GM is as high as 40%. • But overall they should try and keep out of the way of the national brands. The GM on average are higher than the private Label’s.

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