By: Kara LaFrancis
-Bustling families/start-up families member household -Children ages Female head under 35 to 44 years old
-Income not as large of a factor as expected -Main determinate is size of household, having highest dollar volume index in households with 5 or more members -Largest dollar volume index for PL in reference to education are those families with a female head that is a college graduate
-48% Penetration -Sales as of 12/29/07 were $714,103,900 with 33,893,000 raw buyers! -Private Label brands accounts for $80,641,900 - Lots of Private Labels mixed in with dominant brands such as Cascade, Finish, and Palmolive - Categorized as a “Maintain” product
5 Stores Audited Total of 66 SKUs Most SKUs found at Target (total of 28)
Total of 10 Competing Brands (6 being Private Label Brands) Leading brand in all stores was Proctor & Gamble’s Cascade, having more than double the facings of all other brands
WalMart- 26 SKUs Harps- 26 SKUs WalGreens- 5 SKUs IGA- 23 SKUs Target- 28 SKUs (deepest)
Reckitt Benckisner Procter & Gamble CP Sun Station Private Label (Best Choice, Always Save, Seventh Generation, Up & Up, Great Value, Method)
Looking at Facings vs. GM, it is clear that in most cases the more facings there are the higher the GM% is.
GM determined by # of loads All liquids are assumed to be 50 grams/load Powder was determined to have a slightly higher cost than Gel, but not as high as the “powerball” formulation detergents Private label costs were determined to be roughly ½ of the leading brands
WalGreens would be wise to deepen their category selection by at least a few SKUs, 5 is very small All stores should look at trying to lessen their dependence on Proctor & Gamble, as they account for roughly 50% of SKUs in each store
Retailer commitment to private label or leveraging tactic? IGA & Target with 5 and 6 SKUs, not clear about the gross margins Classic example where it is difficult to compare P/L to national brands.