1. Jennie-O Rope Dinner Sausages Market Summary
November 2011

2. Findings
Total Rope Dinner Sausages
Total Rope Dinner Sausages category has experienced volume gain versus year ago.
- Category volume is up +2.9%. Jennie-O is currently down -12% vs. YA
- Increased households, especially in the South, are the main drivers of Rope Dinner Sausage growth .
Volume gains are driven by Eckrich, Louis Rich and Butterball Rope Dinner Sausages.
Eckrich and Louis Rich experienced the highest increase in pounds and % change vs YA .
Eckrich sources 59% of its total volume from deals. Volume from deal declined for all the brands except Louis Rich. .
Total Rope Dinner Sausages is more dependent on Grocery and Supers for volume.

3. Findings (Cont.) Jennie-O Rope Dinner Sausages
Jennie-O Rope Dinner Sausages volume declined -12% vs. YA.
Jennie-O Rope Dinner Sausage volume declines stem from fewer households in the Central region and decreased purchase frequency in the West.
Decline in buy rate and purchase frequency drove Jennie-O volume losses in the West.
The Central region declined by greatest pounds and by greatest %.
Nearly 28% of Jennie-O’s volume is driven by deal, down 11.9% from year ago.

4. Panel Data Decision Tree: What is driving volume?
Step 1: How did sales change? Did they increase? Decrease?
Step 2: Was it driven by change in # of Households or amount purchased by HH?
Step 3: If change in amount purchased – was it due to
number of trips or amount
Step 4: What other
factors influenced
sales?
Total
Volume
Penetration
Buying Rate
Purchase
Size
Purchase
Frequency
Outlet
Importance
Loyalty
% Repeat
% Dealing
Purchase Cycle

5. Market Summary Measures: Total Rope Dinner Sausages by Region

6. Increased households were the main growth driver for the Rope Dinner Sausage category. - Western and Eastern regions are buying less often and in lesser quantities.
EAST
CENTRAL
SOUTH
WEST

7. The Central and Southern regions increased Rope Dinner Sausage volume vs. YA.
Chg vs. YA
Actual
903
(641)
726
1,357
(539) %
+2.9%
-15.3%
+10.3%
+8.9%
-9.6%

8. The Rope Dinner Sausage category increased buying households, particularly in the South. -Buy rate was flat except for a decline in the East.
%HHP
9.3
7.1
9.0
11.5
7.7

9. Purchase frequency and size remained flat for the Rope Sausage category.

10. Market Summary Measures: Jennie-O Total Rope Dinner Sausages

11. Jennie-O Rope Dinner Sausage sells the most volume in the Western region.

12. Rope Dinner Sausage category volume is up 2. 9%
Rope Dinner Sausage category volume is up 2.9%. Volume gains are driven by Eckrich, Louis Rich and Butterball.

13. Eckrich and Louis Rich experienced the highest increase in pounds and % change for Rope Dinner Sausages. - Jennie-O is losing volume versus year ago (-12%).
Chg vs. YA
Actual
903
(327)
695
1,703
(1,860)
834
(144) %
+2.9%
-12.0%
+9.5%
+56.6%
-15.5%
+14.0%
-38.4%

14. Butterball and Eckrich drove Rope Dinner Sausage buying household increases. - Jennie-O Rope Sausage buy rate decline 0.3pts versus year ago.
% HHP
9.3
1.1
2.8
1.7
3.9
1.9
0.1

15. All Rope Dinner Sausage brands saw flat change for purchase frequency and purchase size.

16. Hillshire Rope Dinner Sausage buyers remain the most loyal.

17. Hillshire Farm and Butterball Rope Dinner Sausages are contributing the most to category volume.
Loyalty
100 64 69 58

18. Rope Dinner Sausage buyers purchase more Louis Rich than any other brand in category.
Loyalty
100 64 69 58

19. Eckrich Rope Dinner Sausage buyers purchase 59% of their volume on deal. Volume done on deal declined for all brands except Louis Rich.

20. Only Butterball increased the number of repeat buyers
Only Butterball increased the number of repeat buyers. - Private Label decreased the number of days between purchase by 61 days to become the shortest purchase cycle.

21. Grocery is the main channel for Rope Dinner Sausage sales.

22. Market Summary Measures: Jennie-O Rope Dinner Sausages by Region

23. Jennie-O Rope Dinner Sausage volume declines stem from fewer households in the Central region and decreased purchase frequency in the West.
EAST
CENTRAL
SOUTH
WEST

24. Volume losses in the Central and Western regions drove Jennie-O Rope Dinner Sausages’ decline in volume. - Jennie-O is growing in the Eastern and Southern regions.
Chg vs. YA
Act
(327) 95
(222) 80
(279) %
-12.0%
+114.7%
-40.4%
+19.4%
-16.5%

25. Decline in buy rate resulted in Jennie-O Rope Dinner Sausages losing volume, led by the Western region.
%HHP
1.1
0.6
0.7
2.9
Chg
0.0
0.2
(0.4)

26. Jennie-O Rope Dinner Sausage buyers are purchasing less often in the Western region. The other regions experienced a flat change versus year ago.

27. Jennie-O Rope Dinner Sausage buyers’ loyalty increased, driven by increases in the South and West.27

28. Jennie-O Rope Dinner Sausage buyers are purchasing less on deal and coupon versus year ago.

29. Jennie-O witnessed declines in repeat purchases, especially in the Southern and Western regions.

30. Jennie-O Rope Dinner Sausage repeat buyers make up 26% of buying households and buy 62% of Jennie-O’s volume (down 24%).
Repeat %
28.7
26.5
Repeat %
28.7
26.5

31. Jennie-O repeat buyers buy rate is greater primarily due to greater purchase frequency.

32. Jennie-O Rope Dinner Sausage lost volume from Grocery and Supers.

33. The Grocery channel in the Western region provides the most volume for Jennie-O Rope Dinner Sausage.

34. Appendix

35. Panel Facts:
Penetration: The percent of households that purchased the item at least once during the time period among all households in that area. Also referred to as “% Households Buying”.
Buying Rate: The average volume purchased by buying households during the time period. This can be expressed in Dollars, Units, or EQ. It is equal to Purchase Frequency x Purchase Size. Also referred to as “Volume per Buyer”.
Purchase Frequency: The average number of times each household purchases the item. Also referred to as “Occasions per Buyer” or “Item trips per Item Buyer”.
Purchase Size: The average volume purchased each time the item is bought. This can be expressed in Dollars, Units, or EQ. Also referred to as “Volume per Occasion” or “Item Dollars/Units/EQ per Item Trip”.
Loyalty: Percent of Households needs met with a specific product. Includes one time buyers. Also referred to as “Share of Requirements”. See example below.
% Repeat: Percent of Buyers that repeated on a specific product. Also referred to as “%2+ Time Buyers”.
Purchase Cycle: “How long” it typically takes repeat purchasers to come back and make another purchase. Expressed in # of days between purchases. Therefore only those who are Repeat Buyers can have a Purchase Cycle.

36. Jennie-O Rope Dinner Sausages by Region