Category Management Oatmeal Ryan Knotts and Reid Knotts

Category Definition Product Snapshot Step 1 Demographics Step 1

Know Your Customers LifeStyle BehaviorStage Cosmopolitan Centers Affluent Suburban Spreads Comfortable Country Struggling Urban Cores Modest Working Towns Plain Rural LivingTotal Start-Up Families HHs with Young Children Only < Small Scale Families Small HHs with Older Children Younger Bustling Families Large HHs with Children (6+), HOH < Older Bustling Families Large HHs with Children (6+), HOH Young Transitionals Any size HHs, No Children, < Independent Singles 1 person HHs, No Children, Senior Singles 1 person HHs, No Children, Established Couples 2+ person HHs, No Children, Empty Nest Couples 2+ person HHs, No Children, Senior Couples 2+ person HHs, No Children, Total

Demographics Demographic Variables % VolumeIndex Race of Head of Household White68.5%99 Black12.0%100 Hispanic12.7%102 Asian4.5%105 Other2.3%108 Number of Persons 1 Person19.6%72 2 Persons34.8%107 3 Persons16.1%100 4 Persons15.0% Persons14.6%131 Household Income Under $10,0006.3%80 $10,000 - $19, %86 $20,000 - $29, %96 $30,000 - $39, %101 $40,000 - $49,9999.8%105 $50,000 - $74, %104 $75,000 - $99, %108 $100,000 - $149, %110 $150,000 or More8.3%103

Quaker Demographics Quaker (Cereal : Hot) 16 oz. Total Consumption BehaviorScape Framework LifeStyle BehaviorStage Cosmopolita n Centers Affluent Suburban Spreads Comfortab le Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < Small Scale Families Small HHs with Older Children Younger Bustling Families Large HHs with Children (6+), HOH < Older Bustling Families Large HHs with Children (6+), HOH Young Transitionals Any size HHs, No Children, < Independent Singles 1 person HHs, No Children, Senior Singles 1 person HHs, No Children, Established Couples 2+ person HHs, No Children, Empty Nest Couples 2+ person HHs, No Children, Senior Couples 2+ person HHs, No Children, Total

Private Label Demographics Private Label (Cereal : Hot) 16 oz. Total Consumption BehaviorScape Framework LifeStyle BehaviorStage Cosmopolit an Centers Affluent Suburban Spreads Comfortab le Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < Small Scale Families Small HHs with Older Children Younger Bustling Families Large HHs with Children (6+), HOH < Older Bustling Families Large HHs with Children (6+), HOH Young Transitionals Any size HHs, No Children, < Independent Singles 1 person HHs, No Children, Senior Singles 1 person HHs, No Children, Established Couples 2+ person HHs, No Children, Empty Nest Couples 2+ person HHs, No Children, Senior Couples 2+ person HHs, No Children, Total

Cream Of Wheat Demographics LifeStyle BehaviorStage Cosmopo litan Centers Affluent Suburban Spreads Comfortab le Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < Small Scale Families Small HHs with Older Children Younger Bustling Families Large HHs with Children (6+), HOH < Older Bustling Families Large HHs with Children (6+), HOH Young Transitionals Any size HHs, No Children, < Independent Singles 1 person HHs, No Children, Senior Singles 1 person HHs, No Children, Established Couples 2+ person HHs, No Children, Empty Nest Couples 2+ person HHs, No Children, Senior Couples 2+ person HHs, No Children, Total

Malt-O-Meal Demographics LifeStyle BehaviorStage Cosmopolitan Centers Affluent Suburban Spreads Comfortable Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < Small Scale Families Small HHs with Older Children Younger Bustling Families Large HHs with Children (6+), HOH < Older Bustling Families Large HHs with Children (6+), HOH Young Transitionals Any size HHs, No Children, < Independent Singles 1 person HHs, No Children, Senior Singles 1 person HHs, No Children, Established Couples 2+ person HHs, No Children, Empty Nest Couples 2+ person HHs, No Children, Senior Couples 2+ person HHs, No Children, Total

Category Role: Step Two

Category Assessment StoreLocationSKUsUnique SKUs*Audited by Walmart MLKMLK Blvd (6 th )406Reid, Ryan Walmart on CampusGarland30Reid, Ryan Neighborhood MarketWedington355Reid, Ryan WalgreensMLK Blvd (6 th )62Reid, Ryan Harp’sGarland3316Reid, Ryan Harp’sWedington3116Reid, Ryan TargetMall Ave90Reid, Ryan Marvin’s IGACollege229Reid, Ryan Aldi’sMLK Blvd (6 th )22Reid, Ryan Ozarks Natural FoodCollege16 Reid, Ryan Complete Audit 19772

Category Assessment BRAND NAMEBRAND TYPE N WALMART TARGETMLK SC ALDI'S OZARK NATURAL FOODS MARVIN'S IGA LAFAYETTE HARPS ON GARLAND HARPS ON WEDDINGTON WALMART ON CAMPUS WALGREENS ON MLK GREAT VALUEAPPLES AND CINNAMON $ 1.72 GREAT VALUECINNAMON ROLL $ 1.72 $ 3.99 GREAT VALUEFRUIT AND CREAM VARIETY PACK $ 1.72 GREAT VALUE FRUIT AND CREAM VARIETY VALUE PACK $ 2.98 GREAT VALUEMAPLE BROWN SUGAR $ 1.72 $ 2.98 GREAT VALUEMAPLE BROWN SUGAR VALUE PACK $ 2.98 GREAT VALUEMORNING TRIO VARIETY PACK $ 1.72 GREAT VALUEORIGINAL $ 1.72 GREAT VALUEPEACHES AND CREAM $ 1.72 GREAT VALUEQUICK WHEAT CEREAL $ 2.34 GREAT VALUESTRAWBERRIES AND CREAM $ 1.72 GREAT VALUESUGAR FREE APPLE CINNAMON $ 1.62 GREAT VALUESUGAR FREE MAPLE BROWN SUGAR $ 1.62 GREAT VALUEVARIETY PACK $ 1.72 NICEMAPLE BROWN SUGAR $ 2.89 NICEVARIETY PACK $ 2.89 MARKET PANTRYLOW SUGAR $ 1.57 MARKET PANTRYMAPLE BROWN SUGAR $ 1.57 RACHEL RAYAPPLE CRANBERRY $ 2.00 RACHEL RAYMAPPLE DRIZZLE $ 2.00 OAT BRANORIGINAL $ 3.49 QUAKERAPPLES AND CINNAMON $ 2.50 $ 3.99 $ 4.09 $ 1.72 $ 2.89 QUAKERAPPLES AND CRANBERRY $ 2.50 $ 2.98 QUAKERCINNAMON SPICE $ 2.50 $ 3.99 $ 2.98 QUAKERDINOSAUR EGGS $ 2.50 $ 2.54 $ 2.50 QUAKERFLAVOR VARIETY $ 2.50 $ 3.99 $ 4.09 $ 4.49 QUAKERFRUIT AND CREAM $ 2.50 $ 2.54 $ 2.50 $ 3.99 QUAKER FRUIT AND CREAM VARIETY VALUE PACK $ 4.88 $ 1.72 QUAKERHIGH FIBER CINNAMON SWIRL $ 2.50 QUAKERHONEY BUN $ 2.50 QUAKER LOW SUGAR APPLES AND CINNAMON $ 2.50 QUAKERLOW SUGAR MAPLE BROWN SUGAR $ 2.50 $ 3.99 QUAKERLOW SUGAR VARIETY $ 2.50 $ 2.54 $ 2.50 $ 4.09 $ 4.49 QUAKERMAPLE BROWN SUGAR $ 2.50 $ 2.54 $ 2.50 $ 3.99 $ 2.98 $ 1.72 $ 4.49 QUAKERMAPLE BROWN SUGAR VALUE PACK $ 4.88 QUAKERORIGINAL $ 2.50 $ 2.54 $ 2.50 $ 3.99 $ 2.98 QUAKERPEACHES AND CREAM $ 2.98 QUAKERRAISINS AND SPICE $ 2.50 QUAKERRAISINS, SPICE AND WALNUT $ 2.50 $ 2.98 QUAKERSTRAWBERRIES AND CREAM $ 2.50 $ 3.99 $ 2.98 QUAKER WEIGHT CONTROL MAPLE BROWN SUGAR $ 2.50 $ 3.99 $ 2.98 QUAKERWEIGHT CONTROL VARIETY $ 2.50 $ 3.28 BAKERY ON MAINAPPLE PIE $ 5.29 BAKERY ON MAINBLUBERRY SCONE $ 4.19 BAKERY ON MAINCARROT CAKE $ 5.99 BAKERY ON MAINMAPLE MULTI-GRAIN $ 5.19 BAKERY ON MAINSTRAWBERRY SHORTCAKE $ 5.29 ECO-PLANETAPPLES AND CINNAMON $ 4.99 ECO-PLANETINSTANT ORIGINAL $ 4.99

Category Scorecard Display Space Brand Name Facings for N Walmart Facings for MLK Walmart Facings for Target Facings for Aldi's Facings for Ozark Natural Foods Facings for Marvins Facings for Harps on Garland Facings for Harps on Wedington Facings for Walmart on Campus Facings for Walgreen's MLK Always Save % of Total Sum 4.7%4.4% % of Total N 3.1%2.8% Bakery on Main % of Total Sum 33.3% % of Total N 31.3% Best Choice % of Total Sum 33.3%19.8%18.9% % of Total N 28.6%21.9%19.4% Better Oats % of Total Sum 2.3%2.2% % of Total N 3.1%2.8% Co-Co Wheats % of Total Sum 3.3% % of Total N 4.8% Cream of Wheat % of Total Sum4.0% 7.1% 10.0%11.6%8.9% % of Total N5.7% 11.1% 9.5%9.4%8.3% Eco-Planet % of Total Sum 16.7% % of Total N 18.8% Great Value % of Total Sum41.0%47.3% % of Total N31.4%38.9% Hodgson Mill % of Total Sum 3.3% 8.9% % of Total N 4.8% 11.1% Kretschmer % of Total Sum2.0% 3.5%3.3% % of Total N2.9% 3.1%2.8% Malt-O-Meal % of Total Sum2.0% 8.1%7.8% % of Total N2.9% 9.4%8.3% Market Pantry % of Total Sum 32.1% % of Total N 22.2% McCann's % of Total Sum 4.8%3.3% % of Total N 6.3%4.8% Millville % of Total Sum 100.0% % of Total N 100.0% Natures Path % of Total Sum 40.5% % of Total N 37.5% Nice % of Total Sum 30.0% % of Total N 33.3% Oat Bran % of Total Sum 5.0%4.7%3.3% % of Total N 4.8%3.1%2.8% Oat Fit % of Total Sum 10.7% % of Total N 11.1% Oat Rev % of Total Sum2.0% 7.0%6.7% % of Total N2.9% 9.4%8.3% Quaker % of Total Sum49.0%48.4%50.0% 41.7%38.4%35.6%100.0%70.0% % of Total N54.3%55.6% 42.9%37.5%33.3%100.0%66.7% Quinoa Flakes % of Total Sum 4.8% % of Total N 6.3% Rachel Ray % of Total Sum 4.4% % of Total N 5.6% Total % of Total Sum100.0% % of Total N100.0%

Category Management Gross Margin$ and % Brand NameGm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM% % of Total N 3.1% Always Save % of Total N 1.0% 3.0%1.0%2.7%1.0% % of Total Sum 4.6% 3.9% Bakery on Main % of Total N 5.2% 31.3%5.2% % of Total Sum 31.3% Best Choice % of Total N 9.3% 27.3%9.3%21.2%9.3%18.9%9.3% % of Total Sum 35.6% 32.0% 27.1% Better Oats % of Total N 1.0% 3.0%1.0%2.7%1.0% % of Total Sum 4.6% 3.9% Co-Co Wheats % of Total N 1.0% 2.5%1.0% 4.5%1.0% % of Total Sum 6.0% 5.9% Cream of Wheat % of Total N 8.2%5.7%8.2%5.0%8.2%11.1%8.2% 9.1%8.2%9.1%8.2%8.1%8.2% % of Total Sum 9.1% 11.9% 6.4% 11.9% 6.8% 5.8% Eco- Planet % of Total N 3.1% 18.8%3.1% % of Total Sum 18.8% Great Value % of Total N 14.4%31.4%14.4%35.0%14.4% 4.5%14.4%3.0%14.4%2.7%14.4% % of Total Sum 40.9% 36.8% 3.7% 2.3% 1.9% Hodgson Mill % of Total N 5.2% 4.5%5.2% 10.8%5.2% % of Total Sum 5.9% 15.5% Kretschm er % of Total N 1.0%2.9%1.0% 3.0%1.0%2.7%1.0% % of Total Sum 7.2% 2.9% 2.4% Malt-O- Meal % of Total N 3.1%2.9%3.1% 9.1%3.1%8.1%3.1% % of Total Sum -5.1% 7.7% 6.5% Market Pantry % of Total N 2.1% 22.2%2.1% % of Total Sum 45.3% McCann' s % of Total N 1.0% 6.3%1.0%4.5%1.0% % of Total Sum 6.3% 5.9% Millville% of Total N 2.1% 100.0%2.1% % of Total Sum 100.0% Natures Path % of Total N 6.2% 37.5%6.2% % of Total Sum 37.5% Nice% of Total N 2.1% 33.3% % of Total Sum 53.3% Oat Bran% of Total N 1.0% 4.5%1.0%3.0%1.0%2.7%1.0% % of Total Sum 5.9% 4.6% 3.9% Oat Fit% of Total N 1.0% 11.1%1.0% % of Total Sum 22.6% Oat Rev% of Total N 4.1%2.9%4.1%2.5%4.1% 9.1%4.1%8.1%4.1% % of Total Sum 1.5% 6.0% 11.8% 10.0% Quaker% of Total N 21.6%54.3%21.6%50.0%21.6%55.6%21.6% 40.9%21.6%36.4%21.6%32.4%21.6%100.0%21.6%66.7% % of Total Sum 46.5% 27.4% 25.6% 25.1% 22.7% 19.2% 46.7% Quinoa Flakes % of Total N 1.0% 6.3%1.0% % of Total Sum 6.3% Rachel Ray % of Total N 2.1% 5.0%2.1% % of Total Sum 11.9% Total% of Total N 100.0% % of Total Sum 100.0%

Category Strategy

Display Space Quaker- Large display space/ Large amount of SKU’s. Also found in almost all stores Great Value- Higher Gross Margins. High display space along with high number of SKUs. Market Pantry- Sold exclusively at Target. Malt-O-Meal- terrible display space and limited SKU’s Ozark, Aldis, Marvins- Very limited Assortments, small shelf space

Stocking Rate Quaker= 44%Malt-O-Meal=83%

Tactics Walmart-decrease assortment among brands that don’t sell as much Target- needs to increase their assortment to offer different flavors and increase demand among current customers Harps- increase in private label SKU’s among this category

Circular Trade Area Harps Ages most popular in 1 mile ring White and other most purchasers as well as household under $25,000 2 Mile ring is the exact same Walmart Ages Black, Asian, Other major purchasers along with households of less than $25,000. Also highest with one person household with some college degree. Highest being females ages Males Struggling Urban cores. Highest with no children Target Households 4 and 5 $40,000-$75,000 Multiple kids

Private Label Extremely successful in category High margins and low prices Lost costs Increase SKU’s of private label

Category Review Prices have increased Unit Costs increased Gross margin, gross margin percentage have decreased among Quaker at Walmart Profit contribution is more prevalent among Walmart Stores with increased SKU’s and display space for private label