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So What’s C ooking In T he Olive Oil Category?

By Cindy Beam & Michael Young. So What’s C ooking In T he Olive Oil Category?. Introduction. Who is in control – retailer or brand? We say retailer with a few exceptions. Importance of Depth. Depth is very important Audited 15 stores Total 181 SKUs

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So What’s C ooking In T he Olive Oil Category?

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  1. By Cindy Beam & Michael Young So What’s Cooking In The Olive Oil Category?

  2. Introduction • Who is in control – retailer or brand? • We say retailer with a few exceptions

  3. Importance of Depth • Depth is very important • Audited 15 stores • Total 181 SKUs • Depth has increased significantly • Depth seems to be tied more to target market than competing stores

  4. Typical Walmart SKU’s $0.35/ .oz $0.30/ .oz $0.28/ .oz

  5. Typical Fresh Market SKU’s $0.76/ .oz $2.05/ .oz $1.76+/ .oz

  6. Category Role • Flagship Option 2* • Maintain sales/increase profits ACN Olive Oils WSC 07 * Robert Blattberg, PhD. (Consumer-Centric Category Management, pg.88) **Estimate based on the sample stores

  7. Strength of Leading Brand • Bertolli dominates • Multiple SKUs at 10 of our 15 stores • ACN: Bertolli Item $s are 17% of US category • Average Gross Margin about 45%

  8. Market Stocking Rate • Sum of store count / (#SKUs X #stores)

  9. Gross Margin Estimates by Brand 44.25% Gross Margins 55.5%, carried in two stores 36.67% 52.8% GM (93.3% store presence)

  10. Is This Consistent with Your Role for the Category? • Provides value for the customer by meeting their routine, or stock-up, needs. • Various consumer uses • Pricing among competitors. • Promotion Characteristics • Healthier substitute for cooking oils • Space Allocation • Assortment Characteristics

  11. Relationship Between Gross Margins & Depth

  12. Relationship Between Gross Margins & Depth

  13. Relationship Between Gross Margins & Depth

  14. Private Label Opportunities • How strong are private labels? ACN Homescan Product Library

  15. Private Label Opportunities • Stores Carrying P/L’s and their Gross Margins • P/Ls make up over 30% of total dollar share of the US category ($216,278,900)

  16. Olive Oil Gross Margin % Trends

  17. Recommendations on Private Label Use • Increase in-store cross merchandising • Introduce low cost strategies to enhance P/L image • Increase facings of higher GM% P/L products…with limits • Introduction of premium P/L products

  18. QUESTIONS??

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