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  We see the category increasing in the number of SKU’s StoreTotal # of SKUs# of Unique SKUs Walmart 6th Street564 Walmart Mall532 Walmart NM360 Harps Wedington303 Harps Fiesta Square296 Ozark Foods66

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 % GM  Gross Margin category %

Manufacturer Selective WMSC 6th Facings WMSC Mall FacingsWMNM Facings HarpsF Facings Harps (Fiesta Square) FacingsOzark Facings Farmland% of Total Sum4.55%3.03%5.77%23.33%30.00% % of Total N3.57%3.77%5.56%23.33%24.14% N22277 Great Value% of Total Sum10.61%15.15%15.38% % of Total N10.71%13.21%13.89% N675 Hormel% of Total Sum16.67%22.73%19.23%10.00% % of Total N17.86%18.87%19.44%10.00%10.34% N John Morrell% of Total Sum6.06%4.55%7.69% % of Total N5.36%5.66%8.33% N333 Oscar Mayer% of Total Sum25.76%27.27%30.77%13.33%10.00% % of Total N23.21%28.30%27.78%13.33%10.34% N Wright Brand% of Total Sum7.58% 5.77%13.33%5.00% % of Total N8.93%5.66%8.33%13.33%3.45% N53341 Others% of Total Sum28.79%19.70%15.38%40.00%45.00%100.00% % of Total N30.36%24.53%16.67%40.00%51.72%100.00% N Total% of Total Sum100.00% % of Total N100.00% N Share of Facings

Share of GM Estimates Share of Gross Margin Estimates Manufacturer Selective WMSC Mall Gm WMSC 6th GM WMNM GM Harps GM Harps (Fiesta Square) GMOzark GM Farmland% of Total Sum 2.35%1.68%3.40%10.46%10.49% N22277 Great Value % of Total Sum 9.69%8.01%8.43% N765 Hormel% of Total Sum 16.58%15.07%16.87%5.80%6.15% N John Morrell% of Total Sum 5.19%4.72%7.53% N333 Oscar Mayer % of Total Sum 27.62%21.07%25.73%13.79%8.57% N Others% of Total Sum 28.95%35.78%24.10%43.96%61.40%100.00% N Wright Brand % of Total Sum 9.62%13.67%13.93%26.00%13.38% N35341 Total% of Total Sum % N

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

Thank you! Any questions?