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Granola Bars Semester Project 2012

Granola Bars Semester Project 2012. Jordan Brainard & Ashley Jones . Introduction. STORES AUDITED (10) Wal-Mart (MLK & Bentonville) Target (Rogers & Fayetteville) Walgreens (Rogers & Fayetteville) Neighborhood Market (Bentonville & Fayetteville) Harps (Fayetteville)

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Granola Bars Semester Project 2012

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  1. Granola BarsSemester Project 2012 Jordan Brainard & Ashley Jones

  2. Introduction STORES AUDITED (10) • Wal-Mart (MLK & Bentonville) • Target (Rogers & Fayetteville) • Walgreens (Rogers & Fayetteville) • Neighborhood Market (Bentonville & Fayetteville) • Harps (Fayetteville) • ALDI (Fayetteville) WHY WE PICKED THIS CATEGORY: Honestly, because we love them! We were interested in analyzing a category that we often shop for ourselves. WHO IS IN CONTROL? The retailer

  3. Category Depth GENERAL INFORMATION: • SKU’s: 119 • Brands: • 8 National Brands • 6 Private Label Brands WHO HAD THE DEEPEST ASSORTMENT? • Wal-Mart (Bentonville) had the most SKU’s (69) • Wal-Mart and Neighborhood Market had the most Facings • Target had the most Private Labels variety (2) • In person felt they had the most variety

  4. Depth Breakdown

  5. Demographics FAMILIES • Bigger Families – Newly and Maturing • Granola Bars are going to children • Also popular among younger couples INCOME • Middle to Upper income • Live comfortably ETHNICITY • More popular among Caucasians • Asians seem to be more Brand loyal • No substantial private label difference among other brands EDUCATION • Some college and college grad

  6. Demographics

  7. Which Brands Dominate? WHO IS LEADING THE PACK? • Nature Valley • Quaker • Private Label • Has potential to pass other leading brands WHO IS FALLING BEHIND? • Natures Path • Casadian Farm Organic • Generating high gross margins, however only found at Wal-Mart and Neighborhood Market

  8. Share of Display Space

  9. Nature Valley Quaker Private Label

  10. Category Strategy DEALS • No evidence of a “deal” in Audits BRAND PROMOTIONS • Walgreens and Target did have “price cuts” on Nature Valley products

  11. Gross Margins PRIVATE LABELS COMPARABLE? • Used about half the Unit2 costs for our Private Labels • Adjusted Private Labels HIGHEST GROSS MARGINS? • Neighborhood Market • Wal-Mart LOWEST GROSS MARGINS? • ALDI

  12. Gross Margins

  13. Market Scoreboard

  14. Private Label TrendsGranola Audits 2011 • 5 Great Value SKU’s (Wal-Mart) • 10 Milliville SKU’s (ALDI)

  15. Private Label TrendsGranola Audits 2012 PRIVATE LABELS PRESENT? • YES! And they are growing… • Retailers who gave a decent amount of shelf space to Private Labels had substantial Gross Margins. • Wal-Mart “Great Value” is competing with other brands with flavor and packaging. • Target is offering two Private Label brands with a variety of flavors and high quality packaging design. They are charging a premium price for Archer Farms. • Wal-Mart – Great Value (9) • ALDI – Milliville (7) • Walgreens – Nice! (2) • Harps – Best Choice (8) • Target – Archer Farms & Market Pantry (15) • SUMMARY: • 6 Private Label Brands • 41 Private Label SKU’s • Private Labels have increased since last year’s audit

  16. Private Label Trends Granola Audits 2011 Granola Audits 2012

  17. Recommendations Category is becoming more Retailer controlled Private Labels are becoming more significant within category Target and Wal-Mart have the highest gross margins and give more shelf space to their Private Labels Therefore, we would recommend that Harps increase emphasis on Private Labels because they can obviously compete with national brands and generate high gross margins. Harps on Garland Wal-mart on Joyce

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