1. BACON Blake Gunderson Nic Liu Austin Starrett

2. 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

3. 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

4. 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

5. Category Role  Sales volume- $2 billion  Household penetration- 71.5%

6. 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

7. 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

8. Estimates  Oscar Mayer- 32.8% GM  Hormel- 33.8% GM  Wright Brand- 29.67% GM  Gross Margin category- 20-35%

9. 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% N10 733 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% N13151043 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% N1713612156 Total% of Total Sum100.00% % of Total N100.00% N56533630296 Share of Facings

10. 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% N10 733 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% N15131043 Others% of Total Sum 28.95%35.78%24.10%43.96%61.40%100.00% N1317612156 Wright Brand % of Total Sum 9.62%13.67%13.93%26.00%13.38% N35341 Total% of Total Sum 100.00% N53563630296

11. 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

12. Private Label  Private Label is based on the retailer  Has high volume sales  Demographics are the same as national brands

13. Private Label- Recommendations  Recommendation for Wal-Mart  Keep Great Value Bacon  High sales  Comparable margins

15. Thank you! Any questions?