Automatic Dishwasher Detergent Jeffrey Torok Morgan Sinclair

Category Overview The U.S. detergents market, valued at $11 billion in 2007 Increasing competition during the 2000s. Convenience was a major driver of growth Liquid detergents have outpaced powders To meet the needs of various market segments, the industry introduced an increase of brands and varieties.

Audit ManufactuerWalmart EastWalmart MLKWalmart WestIGAHarps GM 59%20% 35%0% Colgate-Palmolive% of Total Facings 13%22%9%19%0% % of Total SKU's 13% 9%18%0% SKU's 35420% GM 47%38%39%42%35% Reckitt Benckiser% of Total Facings 20%25% 19%26% % of Total SKU's 22%28%30%18%29% SKU's GM 19%17%18%0%34% Private Label% of Total Facings 8%13%14%0%11% % of Total SKU's 9%13%11%0%12% SKU's GM 45%63%60%47%48% P&G% of Total Facings 60%40%52%63% % of Total SKU's 57%48%50%63%59% SKU's

Who’s in control? Based on the selections that are offered and the placements of the brands, we believe that the suppliers are in control. Since there is such a low variety and low amount of facings in the private label’s and weak brands, it’s hard to imagine that the retailer has much control As shown in the following slide…

Depth Brand# of SKU% of Category Finish1827% Cascade3654% Palmolive69% Private Label710% Brand# of SKU% of Category Finish1320% Cascade3147% Palmolive46% Private Label1624%

Demographics for Name Brands $70,000-$99,000 household income Female head age Households with 3-4 members Households with kids under 6 Households Affluency-Affluent Mature Family’s living comfortably Race-Caucasian

AUTOMATIC DISHWASHER COMPOUNDS DISTRIBUTION OF PANELDOLLAR VOLUME INDEXN=RAW BUYERS TOTAL HOUSEHOLDS ,893.0 INC - <$20, ,081.0 INC - $20,000-29, ,277.0 INC - $30,000-39, ,227.0 INC - $40,000-49, ,267.0 INC - $50,000-69, ,281.0 INC - $70,000+ NA INC - $70,000-99, ,397.0 INC - $100, ,363.0 SIZE - 1 MEM ,559.0 SIZE - 2 MEM ,682.0 SIZE MEM ,572.0 SIZE - 5+ MEM ,080.0

Dominant Brands Most dominant brands -P&G. Cascade Action Pacs and Powder were the 2 most dominant The SKU that showed up in every store – P&G, the Action Pacs

Market Stocking Rates BrandRate % Colgate-Palmolive67% Reckitt-Benkiser25% Private Label34% P&G22% Colgate-Palmolive had the highest percentage of their products stocked across it’s competitors.

Average Gross Margins WM-EHWM-WWM-MLKIGA Average GM's45%42%45%46%44% All the Gross Margins stayed relatively close to each averaging around 44%. With the highest being a Wal-Mart on MLK and the lowest at Harps.

Private Label Private Label’s do not have a very strong presence in the Non- Food Dishwashing detergent category. All of our store’s carried their own private label and the while the gross margins are high, they are still lower than some of the national brands. We recommend that the stores do raise the prices on some of their private label selections, to increase the overall gross margins. The overall price differential from private label to national brand is substantially lower, the GM is too low.

Private Label MFRBrandVarietyLoads WM- E C- face WM E C $ WM E C$G M WM E C%G MH Fac H-M $ H $GM H GM% WM- W Fac WM- WW $ WM- W $GM Wm- W GM% WM Fac WM- Mlk $ WM $ GM WM GM% Private Lable Great Value Powder Pacs % % Private Lable Great Value Powder Pacs % % Private Lable Great Value Gel- Orange % % Private Lable Great Value Gel Lemon % % % Private Lable Great ValuePowder % % %

Private Label Private label’s should have a decreasing presence in this category. The low GM and the increasing presence of National Brands are starting to have an effect on PL sales. The demographics of our category shows that middle to upper income house holds are the most dominate buyers of our product. Since they have more discretionary income; they do not mind spending extra to get the national brands. BrandGM% National47% Private Label20%

Private Label The GM have stayed relatively the same from previous semesters. The presence of Private Labels have decreased in the overall market for our category.

Recommendations Our recommendation is that Wal-Mart on MLK BLVD should not increase their Private Label SKU for powder. The GM for powder is too low, reaching as low as 7%. They should think about increasing their gel’s, the GM is as high as 40%. But overall they should try and keep out of the way of the national brands. The GM on average are higher than the private Label’s. ManufactureBrandVarietyLoads WM FacWM-Mlk $WM $ GMWM GM% Private LabelGreat ValuePowder Pacs % Private LabelGreat ValuePowder Pacs % Private LabelGreat ValueGel-Orange % Private LabelGreat ValueGel Lemon % Private LabelGreat ValuePowder %