bacon
DESCRIPTION
Bacon. Blake Gunderson Nic Liu Austin Starrett. Overview. Supplier is in control Strong brands Oscar Mayer, Hormel, Wright Brand Based on commodity Price is directly based of off the price of livestock Core Traffic Low is gross margin and high in sales . Findings. Past Semesters - PowerPoint PPT PresentationTRANSCRIPT
BACON
Blake GundersonNic Liu
Austin Starrett
Overview Supplier is in control
Strong brands Oscar Mayer, Hormel, Wright Brand
Based on commodity Price is directly based of off the price of
livestock
Core Traffic Low is gross margin and high in sales
Findings
Past Semesters We see the category increasing in the
number of SKU’s
StoreTotal # of SKUs
# of Unique SKUs
Walmart 6th Street 56 4Walmart Mall 53 2Walmart NM 36 0Harps Wedington 30 3Harps Fiesta Square 29 6Ozark Foods 6 6
Demographics Popular with income of $30,000 and up
-$70,000-$100,000 highest Multi Member households Popular in…
Households with female heads Maturing and established families with
children
Category Role Sales volume- $2 billion Household penetration- 71.5%
Brands Oscar Mayer is the dominating brand
Greatest display space No brand is found at every store
Specialty stores Aldi, Ozark Natural, etc.
BUT brands like Oscar Mayer and Hormel were found at all major retailers
Category Strategy Very low item on deal percentage
Due to being a commodity based item Some brands were promoted more due
to additional locations -Wright Brand, Great Value
Estimates Oscar Mayer- 32.8% GM Hormel- 33.8% GM Wright Brand- 29.67% GM
Gross Margin category- 20-35%
Manufacturer SelectiveWMSC 6th
FacingsWMSC Mall
FacingsWMNM Facings
HarpsF Facings
Harps (Fiesta Square) Facings Ozark Facings
Farmland % of Total Sum
4.55% 3.03% 5.77% 23.33% 30.00% % of Total N 3.57% 3.77% 5.56% 23.33% 24.14% N 2 2 2 7 7
Great Value % of Total Sum
10.61% 15.15% 15.38% % of Total N 10.71% 13.21% 13.89% N 6 7 5
Hormel % of Total Sum
16.67% 22.73% 19.23% 10.00% 10.00% % of Total N 17.86% 18.87% 19.44% 10.00% 10.34% N 10 10 7 3 3
John Morrell % of Total Sum
6.06% 4.55% 7.69% % of Total N 5.36% 5.66% 8.33% N 3 3 3
Oscar Mayer % of Total Sum
25.76% 27.27% 30.77% 13.33% 10.00% % of Total N 23.21% 28.30% 27.78% 13.33% 10.34% N 13 15 10 4 3
Wright Brand % of Total Sum
7.58% 7.58% 5.77% 13.33% 5.00% % of Total N 8.93% 5.66% 8.33% 13.33% 3.45% N 5 3 3 4 1
Others % of Total Sum
28.79% 19.70% 15.38% 40.00% 45.00% 100.00%
% of Total N 30.36% 24.53% 16.67% 40.00% 51.72% 100.00%N 17 13 6 12 15 6
Total % of Total Sum
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
% of Total N 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%N 56 53 36 30 29 6
Share of Facings
Share of GM EstimatesShare of Gross Margin Estimates
Manufacturer Selective
WMSC MallGm
WMSC 6th GM
WMNM GM
HarpsGM
Harps (Fiesta Square)
GM Ozark GMFarmland % of Total
Sum2.35% 1.68% 3.40% 10.46% 10.49%
N 2 2 2 7 7 Great Value
% of Total Sum
9.69% 8.01% 8.43% N 7 6 5
Hormel % of Total Sum
16.58% 15.07% 16.87% 5.80% 6.15% N 10 10 7 3 3
John Morrell
% of Total Sum
5.19% 4.72% 7.53% N 3 3 3
Oscar Mayer
% of Total Sum
27.62% 21.07% 25.73% 13.79% 8.57% N 15 13 10 4 3
Others % of Total Sum
28.95% 35.78% 24.10% 43.96% 61.40% 100.00%
N 13 17 6 12 15 6Wright Brand
% of Total Sum
9.62% 13.67% 13.93% 26.00% 13.38% N 3 5 3 4 1
Total % of Total Sum
100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
N 53 56 36 30 29 6
Private Labels Great Value Bacon
Not very competitive in pricing Wal-Mart carried Great Value Gross Margin is 20.96% Only one store has Private Label
Wal-Mart is committed Not smaller grocery stores
Private Label Private Label is based on the retailer Has high volume sales Demographics are the same as national
brands
Private Label- Recommendations Recommendation for Wal-Mart
Keep Great Value Bacon High sales Comparable margins
Bacon brings smiles to everyone’s*
faces!
*Except for vegetarians, vegans, and those of the Islamic or Jewish faith.
Thank you!
Any questions?