1. Energy Drinks Morgan Plumlee and Elizabeth Monnig

2. Overview Supplier in control ◦Red Bull leading brand ◦Private label not common in most retailers Retailer in control ◦Target has an Archer Farms energy drink ◦Only retailer with a private label

3. Audits FayettevilleSpringdale Walgreens Joyce Kmart Walgreens School Walgreens 6 th Street Rogers Walmart 6 th StreetNeighborhood Market IGATarget Target Harps Garland

4. Depth 70 SKUs found in our audit Walgreens has the most Walmart had fewest

5. Demographics Income ◦Between $30,000-$50,000 Age FH ◦35-44 Household Size ◦3-4 members Education FH ◦Some college

6. Demographics Item Penetration % item $ on deal $ share# of raw buyers Item buyers Item $ Monster 2.910.22.012813416.894,656. 8 Red Bull 2.88.53.71,227.03,236.4170,066.6 Rockstar 1.421.40.65781,597.626,430. 7 Amp 1.814.30.57262,081.620,945. 8

7. Display Space

8. Red Bull ◦Premium Price ◦Not found at every store ◦50% display space at Walmart and 44% display space at Target Monster ◦Majority of display space in most retailers ◦Around 34% ◦Most SKUs found

9. SKUs Every Store ◦Monster ◦Amp ◦Rockstar Market Stocking Rate ◦Red Bull 56.7% ◦Amp 50% ◦Monster 42.8% ◦Rockstar 38%

10. Gross Margins by Supplier

11. Red Bull ◦Lowest gross margins because it is the leading brand Amp ◦Highest gross margins Private Label ◦Target’s private label has 66% gross margins Walmart ◦Lowest gross margins out of all the retailers

12. Gross Margins by Facings

13. Private Labels Energy drinks is not a popular category for Private Labels Target is the only retailer with a Private Label energy drink Gross Margin is around 66%

14. Private Label We do not expect private labels to increase in this category. Target is the only retailer we feel will be successful with a private label because of their previous success with the Archer Farms brand In fall 2008, there were only 47 SKUs and no private label

15. Private Label Walmart ◦Increase emphasis on national brands ◦Do not have very many SKUs available in grocery section ◦Not a leading retailer in this category