CHEESE SNACK CRACKERSCategory Audit

By: Brayden Wood

Introduction 6 total stores audited: Wal-Mart, Target,

Sam’s, Walgreens, Dollar General and Harps

Supplier retains most of control:- 2 leading brands (Sunshine and

Pepperidge Farms.)- Strong brand loyalty/repurchase of

brands

Maintain Product/ Profit Contribution

Major Players

Brand # of SKU’s

# Unique SKU’s

Sunshine 47 32

Pepperidge Farm

31 18

Private Label 7 7

Austin 8 5

93 62

1.) Sunshine

2.) Pepperidge Farms

3.) Private label

4.) Austin

- Gives indication that this category is top heavy in brands (Sunshine and Pepperidge Farms)

- Sunshine leads market with 47 different SKU’s and 32 unique SKU’s

- Indication of power for suppliers of Sunshine and Pepperidge Farm against retailers.

Summary of stores

- Wal-Mart provides the most depth (47 SKU’s at 41.9%)- Wal-Mart also leads category in Unique SKU’s (20)

- Trend: Large retailers held most unique SKU’s. One dominant retailer in Wal-Mart (Target consumer matches demographic with low prices)

Store Location SKU's Unique SKU's% of CategoryAudited byWal-Mart MLK (6th) 47 20 41.90% Brayden WoodTarget Fayetteville 16 9 14.90% Brayden WoodHarps Garland 18 6 16.10% Brayden WoodWalgreen's Joyce 14 3 12.50% Brayden Wood

Dollar GeneralGarland 10 0 8.90% Brayden WoodSam's Fayetteville 7 7 6.25% Brayden Wood

Demographic Breakdown Lower income

Families- Control Brands and Stauffers.

Upper income – Main brand items! Pepperidge Farm and Sunshine

Pepperidge Farm has highest total $ volume within income bracket (148.6)

Stronger brands are purchased by higher income families.

CTL BR - CRACKERS - CHEESE

PEPPERIDGE FARM GOLDFISH - CRACKERS -

STAUFFER'S - CRACKERS - CHEESE

SUNSHINE CHEEZ- IT - CRACKERS - CHEESE

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME INDEX

TOTAL HOUSEHOLDS 100.0 100.0 100.0 100.0

INC - <$20,000 131.1 46.6 88.8 62.1INC - $20,000-29,999 129.7 48.5 115.1 83.9

INC - $30,000-39,999 109.5 89.5 115.4 99.2

INC - $40,000-49,999 95.3 76.8 94.8 96.1

INC - $50,000-69,999 110.2 123.9 124.3 110.3INC - $70,000-99,999 75.7 140.2 96.7 118.8

INC - $100,000+ 59.6 148.6 74.9 123.5

Demographics Cont.CTL BR - CRACKERS - CHEESE

PEPPERIDGE FARM GOLDFISH - CRACKERS - CHEESE

STAUFFER'S - CRACKERS - CHEESE

SUNSHINE CHEEZ- IT - CRACKERS - CHEESE

DOLLAR VOLUME

INDEX

DOLLAR VOLUME INDEX

DOLLAR VOLUME

INDEX

DOLLAR VOLUME

INDEX

TOTAL HOUSEHOLD

S

100.0 100.0 100.0 100.0

SIZE - 3-4 MEM

110.8 163.6 132.9 131.6

SIZE - 5+ MEM152.7 210.4 259.5 168.7

AGE FH - UNDER 35

123.4 175.0 188.0 116.3

KIDS - ANY < 18

132.2 193.7 194.6 149.0

KIDS - ANY < 6

125.3 258.4 246.4 140.8

KIDS - ANY 6-12

144.9 202.0 256.2 164.7

KIDS - ANY 13-17 137.5 161.4 148.3 157.0

Key Indicator: DVI > 120

Key demographics:1.) Size family 5+

2.) Kids any < 18- Primarily ages 6-12

years

3.) Age FH head under 35

Summary: - Large families!!! With

children under 18.- Younger families with

Female Head tend to purchase more

The Cheese Cracker Consumer

“Maintaining” the Category

 

ITEM $ (000) DOLLAR SHARE

ITEM BUYERS (000)

ITEM PENETRATION

% REPEAT BUYERS (% 2+ TIME BUYERS)

N=RAW BUYERS

  TOTAL U.S. 150,066,179.2

36.5 116,061.4 100.0 100.0 63,337.0

CTL BR - CRACKERS - CHEESE

TOTAL U.S.

17,565.7 2.3 6,442.3 5.6 30.8 3,662.0

PEPPERIDGE FARM GOLDFISH - CRACKERS - CHEESE

TOTAL U.S.

177,357.2 23.3 23,276.3 20.1 47.4 12,373.0

STAUFFER'S - CRACKERS - CHEESE

TOTAL U.S.

12,996.3 1.7 3,342.9 2.9 34.9 1,814.0

SUNSHINE CHEEZ- IT - CRACKERS - CHEESE

TOTAL U.S.

334,906.0 44.0 35,168.6 30.3 55.1 18,932.0

Total Households

- Cheese Snack cracker - “maintain “category.

- HIGH GROSS MARGINS + low sales volume= Maintain Category

- Sales volume of category= .3% of entire Dry Grocery Industry (Reasoning for low sales volume)

- High % of repeat buyers indicates loyalty to brands

Brand DominationTop 3 brands (SKU’s)1.) Sunshine

2.) Pepperidge Farm

3.) Stauffers

• Wal-Mart on 6th Street leads retailers with number of total SKU’s with 42.• Sunshine led brands in number of SKU’s with 51 total SKU’s• Sunshine and Pepperidge farm’s gross margins- VERY SIMILAR and

SURPRISING!!! Sunshine= 50.65% average gm% V.S Pepperidge farm= 44.75% average gm%

Category ScorecardMFR Harps Wal-Mart Target Walgreens Sam's Dollar GeneralPepperidge farm N 5 13 8 4 1 5

% of gm 49.44% 35.96% 54.55% 55.37% 27.41% 45.80%% of Total N 23.80% 27.70% 50.10% 28.60% 14.30% 55.60%% of Total Sum 23.40% 28.70% 50.00% 34.60% 12.00% 55.60%

Stauffers N 5% of gm 27.55%% of Total N 23.80%% of Total Sum 21.30%

Sunshine N 7 29 3 5 2 5% of gm 23.01% 64.04% 45.45% 44.63% 72.59% 54.20%% of Total N 33.30% 61.70% 18.80% 35.70% 28.60% 44.40%% of Total Sum 34.00% 56.50% 19.00% 26.90% 24.00% 44.40%

Total N 17 42 11 9 3 10% of gm 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%% of Total N 80.90% 89.40% 68.90% 64.30% 42.90% 100.00%% of Total Sum 78.70% 85.20% 69.00% 61.50% 36.00% 100.00%

Stocking Rate/ Dominating Brand(s)

Stocking Rate # of retailers Stocking percentPepperidge Farm 6 28.70%

Sunshine 6 23.90%Stauffers 1 16.60%

• The leading two brands in the category Pepperidge Farm and Sunshine had the leading stock percent for the category.• Brand Stock rate is not as high due to number of stores and number of different SKU’s found in each location.

• Stauffers was found in only one location (Harp’s), giving it its very low stock rate. There is room for retailers to add depth in this area due to Stauffer’s adding influence in the lower income markets.

• Pepperidge Farm had higher Stocking rate, though Sunshine has more SKU’s and variety on shelf.

storesSkus

depths

)(

Private Label? Private label only contained those from Target and Wal-Mart. (7 total SKU’s) out

of 105.

Demographics reveal that those earning 30,000 or less to purchase control brand items.

I believe that since Sunshine and Pepperidge Farm control the higher end consumers ($60,000+), there is room and potential for private label to influence lower markets.

It will not be the name of the Private Label to sell the product, simply the price, so selling that “low price point” I believe will allow a control brand to grow and flourish in targeting lower income consumers.

CTL BR - CRACKERS - CHEESE

DOLLAR VOLUME INDEX

TOTAL HOUSEHOLDS 100.0INC - <$20,000 131.1

INC - $20,000-29,999 129.7

Private Label Cont. Added benefit for retailers in having private brand implemented in store:

1.) It allows there to be a product that’s low in cost, considering it’s your manufacturers creating the product for you.

2.) It will provide a product that will provide more gross margins (usually) within your store due to low costs.

3.) Appeals to a lower income demographic that may not have been reached before.

4.) It will provide the retailer more power over suppliers when they have their own line taking space on the shelves, potentially decreasing the SKU amount of other brands within their store.

Final Recommendations

- Adding more presence of private label could reach out to more lower income demographic, provide more power to retailer, and add a product that has higher gross margins within store.

- For Wal-Mart and Target who have private label brands already, increase your assortment to where you have a wider variety for the consumer.

- In the long run, eliminate smaller impact brands like Austin and Lance and replace them with private label brands. Show them the power of your retailer!

Thank you for listening!

“Have a cheesy day!!!!”