Granola Bars Semester Project 2012

Report
Granola Bars
Semester Project 2012
JORDAN BRAINARD & ASHLEY JONES
Introduction
WHY WE PICKED THIS CATEGORY:
Honestly, because we love them! We were interested in analyzing a category that we often shop for
ourselves.
STORES AUDITED (10)






Wal-Mart (MLK & Bentonville)
Target (Rogers & Fayetteville)
Walgreens (Rogers & Fayetteville)
Neighborhood Market (Bentonville &
Fayetteville)
Harps (Fayetteville)
ALDI (Fayetteville)
WHO IS IN CONTROL?
The retailer
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
Depth Breakdown
ALDI
7 SKU’s
Harps
26 SKU’s
Retailer
71 SKU’s
Neighborhood…
62 SKU’s
15 SKU’s
Walgreens
14 SKU’s
57 SKU’s
Target
62 SKU’s
69 SKU’s
Wal-Mart
64 SKU’s
0
50
100
Number of SKU’s
Bentonville
Rogers
Fayetteville
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
Demographics
CTL BR NAT VAL CW
GRANOLA &
GR BR YOGURT BARS GRANOLA &
YOGURT BARS
DOLLAR
DOLLAR
VOLUME
VOLUME
INDEX
INDEX
TOTAL
HOUSEHOLDS
INC - $20,00029,999
INC - $30,00039,999
INC - $40,00049,999
INC - $50,00069,999
SIZE - 3-4 MEM
NAT VAL GR
QUAKER CHEWY QUAKER CHEWY
BAR - GRANOLA &
DIPPS GRANOLA &
YOGURT BARS GRANOLA &
YOGURT BARS
YOGURT BARS
DOLLAR
DOLLAR
DOLLAR
VOLUME
VOLUME INDEX VOLUME INDEX
INDEX
100.0
100.0
100.0
100.0
100.0
81.6
75.7
58.8
73.7
60.5
118.3
87.4
90.2
84.1
116.3
122.8
101.0
110.6
98.9
102.1
119.7
129.5
121.7
134.1
139.3
145.4
156.5
117.7
144.0
122.7
208.8
124.7
176.7
201.3
208.9
175.5
187.3
152.5
157.6
150.3
177.1
146.2
124.1
161.3
162.4
AGE FH - 45-54
84.7
104.9
117.1
113.8
89.4
AGE FH - 55+
48.9
42.0
53.6
49.3
49.4
AGE FH - 55-64
54.5
56.0
67.2
59.3
67.8
AGE FH - 65+
44.4
30.8
42.7
41.4
34.7
SIZE - 5+ MEM
AGE FH UNDER 35
AGE FH - 35-44
CTL BR - GRANOLA NAT VAL CW GR BR - NAT VAL GR BAR & YOGURT BARS
GRANOLA &
GRANOLA &
YOGURT BARS
YOGURT BARS
DOLLAR VOLUME
INDEX
TOTAL HOUSEHOLDS
DOLLAR VOLUME
INDEX
DOLLAR VOLUME
INDEX
QUAKER CHEWY QUAKER CHEWY
GRANOLA & YOGURT DIPPS - GRANOLA &
BARS
YOGURT BARS
DOLLAR VOLUME
INDEX
DOLLAR VOLUME
INDEX
100.0
100.0
100.0
100.0
100.0
AGE FH - NO FEMALE
HEAD
53.5
57.7
79.0
51.4
83.7
KIDS - NONE < 18
58.8
66.7
80.2
66.0
70.4
181.3
165.6
139.1
167.0
158.3
190.3
148.0
156.9
159.1
140.1
197.6
177.4
133.5
175.6
186.0
188.7
148.5
144.4
178.5
165.3
120.0
205.6
102.8
70.9
44.7
119.8
140.2
189.7
147.8
112.8
184.1
156.5
135.0
137.2
76.7
192.4
174.8
131.7
172.2
187.8
152.4
148.0
159.4
170.6
130.9
39.2
54.5
75.8
45.0
88.1
50.7
46.6
60.5
58.3
46.7
33.5
31.8
42.2
29.2
25.0
KIDS - ANY < 18
KIDS - ANY < 6
KIDS - ANY 6-12
KIDS - ANY 13-17
LS - YOUNG SINGLES
LS - CHILDLESS
YOUNGER COUPLES
LS - NEW FAMILIES
LS - MATURING
FAMILIES
LS - ESTABLISHED
FAMILIES
LS - MIDDLE AGED
SINGLES
LS - EMPTY NESTERS
LS - OLDER SINGLES
CTL BR GRANOLA &
YOGURT BARS
NAT VAL CW GR NAT VAL GR BAR - QUAKER CHEWY QUAKER CHEWY
BR - GRANOLA & GRANOLA &
GRANOLA & YOGURT DIPPS - GRANOLA &
YOGURT BARS
YOGURT BARS
BARS
YOGURT BARS
DOLLAR VOLUME DOLLAR VOLUME DOLLAR VOLUME
INDEX
INDEX
INDEX
TOTAL HOUSEHOLDS
DOLLAR VOLUME
INDEX
DOLLAR VOLUME
INDEX
100.0
100.0
100.0
100.0
100.0
LS - MATR FAM/POOR-GET
BY
160.7
96.1
104.9
117.6
144.9
LS - MATR FAM/LIV COMFAFF
221.4
247.0
156.2
222.3
227.2
LS - EMPTY NEST/POORGET BY
41.6
55.1
37.8
40.1
51.2
LS - EMPTY NEST/LIV
COMF-AFF
54.3
43.2
69.6
65.6
44.8
EMP - FH EMPLOYED
121.0
141.7
118.7
131.8
123.4
96.7
66.1
85.9
83.0
77.0
63.1
64.3
47.5
52.6
51.0
105.5
80.0
79.5
93.0
110.9
ED - FH SOME COLLEGE
111.9
125.9
117.6
119.8
96.0
ED - FH COLLEGE GRAD
128.5
143.1
138.9
140.7
116.7
RACE - CAUCASIAN
107.7
104.9
96.5
107.2
111.9
71.0
81.5
113.3
72.9
54.9
54.2
71.6
72.1
52.2
44.4
42.1
130.6
179.6
100.7
64.5
105.8
84.0
160.7
98.1
68.9
94.4
94.1
164.1
110.3
64.9
EMP - FH NOT EMPLOYED
ED - FH NOT HIGH SCH
GRAD
ED - FH HIGH SCH GRAD
RACE - NON-CAUCASIAN
RACE - AFRICAN AMER.
RACE - ASIAN
RACE - OTHER RACE
ETH - HISPANIC
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
Share of Display Space
Manufacturer
Kellogs
% of Total
Sum
% of Total N
N
Nature Valley % of Total
Sum
% of Total N
N
Private Label % of Total
Sum
% of Total N
N
Quaker
% of Total
Sum
% of Total N
N
Total
% of Total
Sum
% of Total N
N
Share of Display Space, Granola Bars
Neighborhood
Market BVILLE
Wal-Mart MLK
Target FAY
Walgreens FAY
Face
Face
Face
HARPS Face
Face
1.00%
3.08%
3.39%
0.00%
0.00%
1.43%
1
32.00%
3.17%
2
33.85%
3.33%
2
26.27%
0.00%
0
48.00%
0.00%
0
64.29%
31.43%
22
23.00%
31.75%
20
11.54%
26.67%
16
23.73%
48.00%
12
64.29%
9
14.29%
22.86%
16
23.00%
11.11%
7
32.31%
23.33%
14
25.42%
0.00%
0
52.00%
14.29%
2
21.43%
21.43%
15
100.00%
22.22%
14
100.00%
25.00%
15
100.00%
52.00%
13
100.00%
21.43%
3
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
70
63
60
25
14
0.00%
Nature Valley
Quaker
Private Label
Category Strategy
DEALS

No evidence of a “deal” in Audits
BRAND PROMOTIONS

Walgreens and Target did have “price cuts” on Nature Valley products
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
Gross Margins
Estimated Gross Margins, Granola Bars
Manufacturer
Kellogs
Mean
N
Nature Valley Mean
N
Private Label Mean
N
Quaker
Mean
N
Total
Mean
N
Neighborhood
Market BVILLE
Wal-Mart
Target FAY
GM%
MLK GM%
GM%
49.54%
43.92%
67.25%
HARPS
GM%
Walgreens FAY
GM%
0.00%
0.00%
1
2
2
0
0
26.62%
27.50%
31.01%
36.77%
51.19%
22
20
16
12
9
52.81%
56.30%
35.17%
0.00%
46.82%
16
7
14
0
2
26.35%
26.39%
20.36%
44.96%
56.63%
15
12
15
13
3
34.31%
32.95%
32.01%
41.03%
51.74%
70
61
60
25
14
Market Scoreboard
Manufactures
Kellogs
GM%
% of Total
Sum
% of Total N
N
Nature Valley GM%
% of Total
Sum
% of Total N
N
Private Label GM%
% of Total
Sum
% of Total N
N
GM%
Quaker
% of Total
Sum
% of Total N
N
GM%
Total
% of Total
Sum
% of Total N
N
Market Score Board, Granola Bars
Neighborhood
Wal-Mart
Market BVILLE
MLK
Target FAY
49.54%
43.92%
67.25%
1.00%
3.08%
3.39%
Walgreens
HARPS
FAY
0.00%
0.00%
0.00%
0.00%
1.43%
1
26.62%
32.00%
3.17%
2
27.50%
33.85%
3.33%
2
31.01%
26.27%
0.00%
0
36.77%
48.00%
0.00%
0
51.19%
64.29%
31.43%
22
52.81%
23.00%
31.75%
20
56.30%
11.54%
26.67%
16
35.17%
23.73%
48.00%
12
0.00%
64.29%
9
46.82%
14.29%
22.86%
16
26.35%
23.00%
11.11%
7
26.39%
32.31%
23.33%
14
20.36%
25.42%
0.00%
0
44.96%
52.00%
14.29%
2
56.63%
21.43%
21.43%
15
34.31%
100.00%
22.22%
14
32.95%
100.00%
25.00%
15
32.01%
100.00%
52.00%
13
41.03%
100.00%
21.43%
3
51.74%
100.00%
100.00%
70
100.00%
63
100.00%
60
100.00%
25
100.00%
14
0.00%
Private Label Trends
Granola Audits 2011
MFR
Brand
Brand
Variety
0 Private Label
0 Private Label
0 Private Label
0 Private Label
Walmart
Walmart
Walmart
Walmart
Great Value
Great Value
Great Value
Great Value
Sweet & Salty Almond
Sweet & Salty Peanut
90 Calorie Chocolate Chunk
Crunch Oats & Honey
0 Private Label
Walmart
Great Value
Granola Bar Variety Pack
•5 Great Value SKU’s (Wal-Mart)
•10 Milliville SKU’s (ALDI)
4 Private Label
4 Private Label
Milliville
Milliville
Chewy Dipped
Chewy Dipped
4 Private Label
Milliville
4 Private Label
Milliville
Chewy Granola Bars Chocolate Chip
Peanut Butter and Chocolate
Chewy Granola Bars Chip
4 Private Label
Milliville
4 Private Label
Milliville
4 Private Label
Milliville
4 Private Label
Milliville
4 Private Label
4 Private Label
Milliville
Milliville
Chewy Granola Bars
Fiber Now Granola
Bars
Fiber Now Granola
Bars
Sweet & Salty Nut
Granola Bar
Sweet & Salty Nut
Granola Bar
Trail Mix
Chocolate Chip
Peanut Butter
Variety Pack
Oats And Chocolate
Oats and Peanut Butter
Almonds
Peanuts
Chewy Fruit & Nut Bars
Private Label Trends
Granola 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
Private Label Trends
Granola Audits 2012
Granola Audits 2011
Sales
Sales
Private
Label
National
Brands
Private
Label
National
Brands
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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