Kristen Hopkins

Introduction 5 stores audited in Fayetteville, AR 100 total SKUs Overall, retailer is not in control Category mostly controlled by Sunshine & Pepperidge Farm Target is the exception and is in control due to Market Pantry & Archer Farms brands

Importance of Depth StoreLocationSKUsUnique SKUs*Audited by Walmart SupercenterMLK Blvd6613Kristen Harp’sGarland536Kristen TargetShiloh4413Kristen Dollar GeneralGarland95Kristen WalgreensMLK Blvd62Kristen Complete Audit17839 Cheese Cracker Depth, Spring 2013, Fayetteville, Arkansas

Importance of Depth

Appropriate role for the category: FLAGSHIP

Strength of Competing Brands Stores audited, depth, unique SKUs StoreLocationSKUsUnique SKUs*Audited by WalmartMLK Blvd6613Kristen Harp’sGarland536Kristen TargetShiloh4413Kristen Dollar GeneralGarland95Kristen WalgreensMLK Blvd62Kristen Complete Audit17839

Strength of Competing Brands Pepperidge Farm and Sunshine dominate! Supplier Share of Display Space by Retailer

Strength of Competing Brands Sunshine Cheez-Its are at every stores Pepperidge Farm Goldfish are at four of five stores Sunshine and Pepperidge Farm are somewhat controlling the category 1 stores 2 stores 3 stores 4 stores 5 stores SKUs Stocking Rates Annie’s Lance Nabisco Pepperidge Farm Private Label Sunshine

Strength of Competing Brands Average gross margin estimates: Sunshine: 20-40% Pepperidge Farm: 27-62% Nabisco: 7-60% Stauffers: 38% Special K: 73% Archer Farms: 86%, Market Pantry: 57% (Target) Great Value: 52-74% (Walmart) Always Save: 60% (Harp’s) Nice!: 78% (Walgreens) Is this consistent with role? YES!

Private Label Opportunities Private label is not that strong in the category Target is more committed to PL than others

Private Label Opportunities Private label will have slightly increasing presence National brands (Sunshine & Pepperidge Farm) will still play a big role as there is always a demand, but due to demographics (young, price sensitive) private label will become a bigger player in Fayetteville, AR Same retailer in prior semester audits, private label has increased by one or two SKUs Target is the one retailer that had a dramatic increase in PL items tripling from 3 to 9

Private Label Opportunities

Private Label Recommendations Walmart: increase use of private label Has the largest amount of space given to the category, they can afford to dedicate more space to items that have 52% and 74% margin Harp’s: increase use of PL Second largest amount of space given to category, decreased PL facings since last audit when all other retailers increased, it would be in their best interest to keep up with competition Target: continue their PL strategy Increase use as necessary because it is working well Dollar General: continue their PL strategy Such a small assortment and their proportion of PL to national brands is accurate, if given more space for the category they can consider adding more PL items Walgreens: continue their PL strategy Such a small assortment and their proportion of PL to national brands is accurate, if given more space for the category they can consider adding more PL items

Major Changes by Stores Increase from 69 to 100 total SKUs Walmart: went from 18 to 66 SKUs and increased Cheez- Its display space Harp’s: went from 7 to 52 SKUs, also increased Cheez-Its assortment Target: went from 8 to 44 SKUs, increased private label Dollar General: went from 2 to 9 SKUs, wider assortment of national brands Walgreens: stayed at 6 SKUs with one private label, national brands dominating with 80% space