1 / 13

Gin—Spring 2012 Daniel Frazier Maddie Griffith

L. Gin—Spring 2012 Daniel Frazier Maddie Griffith . Category Definition. Total category sales: $369,201,600 2007 sales: $138,739,800 Average % item on deal: 18.2% Not highly penetrated Supplier has control of category No private label available Strong national brands

nieve
Download Presentation

Gin—Spring 2012 Daniel Frazier Maddie Griffith

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. L Gin—Spring 2012 Daniel Frazier Maddie Griffith

  2. Category Definition • Total category sales: $369,201,600 • 2007 sales: $138,739,800 • Average % item on deal: 18.2% • Not highly penetrated • Supplier has control of category • No private label available • Strong national brands • Many small “unique” suppliers

  3. Ad Hoc Base

  4. Audit Results Total Number of SKUs in Audit: 100

  5. Demographics • Income above $70,000 • 2-member households • No female head • Empty nesters • Senior citizens

  6. Demographics • Income above $100,000 • 2-member households • No female head • Affluent suburban spread • Established couples • Professional and managerial employees

  7. Demographics • Income above $70,000 • 2-member households • No female head • Affluent suburban spreads • Senior couples • Established couples • Professional and managerial employees

  8. Demographics • Income below $50,000 • Struggling urban cores • Childless younger families • Empty nest couples • African American (non-Caucasian) • Female & non-female head households • Not employed

  9. Category Scorecard

  10. Gross Margin Evaluation • Bombay Sapphire has highest gross margins overall • 200 mL: 57% • 750 mL: 45% • 1 L: 45% • Tanqueray has interesting gross margins • 200 mL: 54% • 375 mL: 47%

  11. Gross Margin Evaluation • 750 mL sizes had consistently higher gross margins • Spruce Road Spirits: 62% • Tanqueray #10: 58% • Hendricks: 56% • Corsair: 50% • Category is Cash Machine: • High gross margins • Medium sales volume

  12. Competing Brands & Private Labels • Very strong national brands with loyal customers in segmented markets • 5 biggest brands account for 60% of gin sales • No private label products in this region • Supplier has control over retailer; no outlet for leveraging this control

  13. Suggestions for Retailer MAINTAIN! • High gross margins • Increased category sales • Stock fewer SKUs • Reduced depth ≠ increased sales, but is an opportunity for higher gross margins • Leading brands are close substitutes

More Related