1. BRYANA STEVENS THOMAS SMITH
Brownie Mix
BRYANA STEVENS
THOMAS SMITH

2. Brownie Category Snapshot
TOTAL BROWNIES (BKG MIX) OZ. Total Consumption BehaviorScape Framework
LifeStyle
Behavior Stage
Cosmopolitan Centers
Affluent Suburban Spreads
Comfortable Country
Struggling Urban Cores
Modest Working Towns
Plain Rural Living
Total
Start-Up Families HHs with Young Children Only < 6 84
104
126
123
107
105
108
Small Scale Families Small HHs with Older Children 6+
122
134
139 74
138
Younger Bustling Families Large HHs with Children (6+), HOH <40 96
131
156 99
116
142
Older Bustling Families Large HHs with Children (6+), HOH 40+
165
200
186
128
179
196
180
Young Transitionals Any size HHs, No Children, < 35 58 70 79 62 89 75 71
Independent Singles 1 person HHs, No Children, 35-64 45 55 59 53 51
Senior Singles 1 person HHs, No Children, 65+ 50 65 36 57
Established Couples 2+ person HHs, No Children, 35-54 72
121
100
101
Empty Nest Couples 2+ person HHs, No Children, 55-64 95
115
120
118
Senior Couples 2+ person HHs, No Children, 65+ 86 83 81
114 77 94
Highest for Older Bustling Families
Lowest for Independent Singles

3. Category Definition
Older bustling families with kids, and HOH is over 40.
Significant across all lifestyle categories with a slightly
lesser presence in Struggling Urban Core

4. Brownie Brands Duncan Hines Betty Crocker Ghirardelli Private Label
Key Consumers:
Families with 4+ members. Very high in 5+
Not significant among any ethnicities
People aged 35-44
Kids aged 6 – 17
Betty Crocker
Key Consumers:
Families with 4+ members. Very high in 5+
Not significant among any ethnicities
People aged 35-44
Kids aged 6 -17
Ghirardelli
Key Consumers:
Families with 4+ members
Dominates High Income ($75,000+)
More popular with Asians
Kids aged <6 – 17
Private Label
Key Consumers:
Families with 4+ members. Very high in 5+
Other Minorities
Income of $20,000 - $50,000
Kids aged 6 – 17

5. Demographic Variables % Volume Index
Duncan Hines
Betty Crocker
Ghirardelli
Private Label
Demographic Variables
% Volume
Index
Race of Head of Household
White
74.9%
109
76.7%
111
72.1%
104
77.4%
112
Black
9.1% 76
6.8% 57
7.9% 66
6.7% 56
Hispanic
10.7% 85
11.5% 91
12.0% 96 72
Asian
3.4% 79
3.3% 77
5.7%
133
4.0% 94
Other
1.9%
1.8% 80
2.4%
106
2.7%
120
Number of Persons
1 Person
15.2%
12.8% 47
14.1% 52
20.5%
2 Persons
31.1%
30.2% 93
33.0%
102
28.2% 87
3 Persons
18.0%
18.2%
113
18.8%
116
15.7% 97
4 Persons
17.3%
131
17.8%
135
138
16.5%
125
5+ Persons
18.4%
165
21.0%
189
16.1%
144
19.1%
171
Household Income
Under $10,000
6.2% 81
5.4% 70
3.9% 51
9.0%
117
$10,000 - $19,999
8.7%
8.3% 75
6.5% 58
11.3%
100
$20,000 - $29,999
10.6%
9.8% 90
6.4%
13.3%
122
$30,000 - $39,999
11.0%
108
10.2%
6.9% 68
11.4%
$40,000 - $49,999
10.4%
7.3%
10.8%
121
$50,000 - $74,999
18.9%
105
17.5% 98
107
$75,000 - $99,999
12.9%
13.5%
114
128
$100,000 - $149,999
13.8%
14.3%
20.4%
9.4%
$150,000 or More
8.6%
16.0%
177
4.9% 54
Age of Head of Household
Age
2.5%
3.8%
4.2% 99
4.4%
103
Age
12.6% 83
14.0%
13.2% 86
Age
21.4%
123
21.6%
124
20.0%
115
16.4%
Age
22.2%
110
23.7%
118
22.4%
21.9%
Age
18.7%
19.8%
19.4%
Age
12.4%
13.6%
Age 75 or More 88
8.0% 74
Age and Presence of Children
Age < 6
7.8% 84
Age
26.0%
140
27.6%
149
25.4%
137
26.7%
Age < 6 &
10.1%
153
174
8.2%
154
No Children
56.6%
53.2%
57.4%
57.0%

6. Category Role
Brownies has a low penetration (37.8 in our region, and 40.5 nationwide)
Brownies are an ‘Under Fire’ category because of its size
(100 M < Brownies < 1 B)
Deal or No Deal
The category offers significant percentage on deal in both our region and nationwide.

7. ITEM TRIPS PER ITEM BUYER ITEM $ PER ITEM TRIP
DOLLAR SHARE
ITEM BUYERS (000)
ITEM PENETRATION
ITEM $ PER ITEM BUYER
ITEM TRIPS PER ITEM BUYER
ITEM $ PER ITEM TRIP
ITEM UNITS PER ITEM TRIP
PURCHASE CYCLE (IN ELAPSED DAYS)
% REPEAT BUYERS (% 2+ TIME BUYERS)
LOYALTY (SHARE OF $ REQ.)
% ITEM $ ON DEAL
% DOLLARS WITH MANUFACTURER COUPON
MIXES - BROWNIES
TOTAL U.S.
286,872.7
100.0
46,982.8
40.5
6.1
2.4
2.5
1.6
65.8
56.0
33.5
8.1
WEST SOUTH CENTRAL
28,235.9
4,912.8
37.8
5.8
1.5
65.7
55.4
24.5
9.1
BETTY CROCKER - MIXES - BROWNIES
113,496.6
39.6
24,858.7
21.4
4.6
1.7
2.7
75.0
36.7
60.7
6.7
11,923.2
42.2
2,631.3
20.3
4.5
2.6
71.7
36.8
62.7
27.6
7.6
BETTY CROCKER WARM DELIGHTS - MIXES - BROWNIES
19,121.8
5,278.7
3.6
65.3
25.2
50.2
37.4
19.8
2,441.4
8.7
674.5
5.2
1.4
63.3
22.9
51.7
26.4
16.7
CTL BR - MIXES - BROWNIES
15,627.2
5.5
5,733.3
4.9
31.8
39.5
14.2
0.0
1,416.3
5.0
596.3
70.0
28.4
34.2
8.4
DUNCAN HINES - MIXES - BROWNIES
59,179.4
20.6
17,534.6
15.1
3.4
2.2
81.3
31.6
45.8
39.3
11.5
6,534.7
23.1
2,096.8
16.1
3.1
2.0
78.9
32.2
47.6
27.7
13.5
GHIRARDELLI - MIXES - BROWNIES
29,832.0
10.4
6,275.6
5.4
4.8
3.5
77.4
22.5
51.5
2,538.2
9.0
467.6
1.3
69.7
23.0
56.7
6.8
3.7
NO PUDGE! - MIXES - BROWNIES
6,119.2
2.1
651.5
0.6
9.4
1.9
47.1
29.5
72.1
8.0
0.2 NA
PILLSBURY - MIXES - BROWNIES
1,691.0
779.4
0.7
1.1
1.2
54.9
7.3
24.9
30.0
6.5
PILLSBURY BROWNIE CLASSICS - MIXES - BROWNIES
22,200.9
7.7
8,254.2
7.1
74.5
24.0
33.6
48.0
10.7
1,689.9
6.0
630.5
1.8
60.6
27.5
31.2
31.0
11.2
PILLSBURY FUDGE SUPREME - MIXES - BROWNIES
9,584.2
3.3
3,378.7
2.9
2.8
78.8
13.9
33.2
38.8
430.7
192.1
57.2
8.9
42.1
14.4

8. Brownies Under Fire
We are ‘Under Fire’ because our gross margin is 17.48%
We have less than $1 billion in revenue
We have more than $100 million in revenue

9. Store Demographics 4-6 foot area for facings.
Located near the middle of the aisle, at eye level and below.
We also saw some holiday decorations and specials on the end-of-aisle displays to attract customers to buy and to enter the aisle.
Private label was not significant (only 1 SKU in Walmart, and 2 in Harps)

10. Understanding Our Demographics
We feel that the retailers we audited are missing out on sales by not carrying more private label items.
There is a huge lack in products bought by mid to low income single person households, college students and young professionals, who have a tendency to buy private label, so we would want to market to them.

11. Walmart Pleasant Grove #5260
Circular Trade Areas: Northwest Arkansas
Walmart MLK #144
Walmart Pleasant Grove #5260
Walmart Joyce #359
Walmart NBHD Mission #2745
Harps College #355
Demography
2 mile Ring
% HHs
HHs Index
Race of Head of Household
White
80.4%
117
74.8%
108
85.6%
124
90.4%
131
81.9%
119
Black
6.6% 55
2.6% 22
5.6% 47
3.4% 29
6.5% 54
Hispanic
4.9% 39
18.5%
148
3.6%
2.1% 17
4.1% 33
Asian
4.6%
2.5% 58
1.9% 45
1.6% 38 97
Other
3.5%
156 73
3.3%
145
2.4%
105
150
Number of Persons
1 Person
47.7%
176
23.7% 87
43.1%
159
32.5%
120
44.2%
163
2 Persons
33.2%
103
28.3%
32.2%
100
35.7%
110
31.8% 98
3 Persons
10.4% 64
15.6% 96
13.7% 84
15.9%
13.2% 81
4 Persons
5.9%
16.7%
127
7.2%
11.0% 83
7.1%
5+ Persons
2.8% 25
15.7%
141
3.7% 34
5.0%
3.8%
Household Income
Under $10,000
26.4%
345 21
12.4%
162
8.2%
107
16.8%
220
$10,000 - $19,999
24.7%
221
9.3%
11.7%
104
16.1%
144
$20,000 - $29,999
12.2%
112
7.6% 69
13.3%
123
11.9%
14.1%
129
$30,000 - $39,999
10.3%
102
6.2% 61
18.9%
186
12.9%
15.5%
153
$40,000 - $49,999
8.0% 89
11.4% 72
6.1% 68
6.0% 67
$50,000 - $74,999
9.0% 50
22.2%
13.8% 77
9.9%
$75,000 - $99,999
3.2% 27 60
10.6%
6.3% 53
$100,000 - $149,999
4.2%
14.6%
8.7% 70
128
8.4%
$150,000 or More
14.7%
164
7.0% 78
13.0%

12. Walmart Pleasant Grove #5260
Circular Trade Areas: Northwest Arkansas
Walmart MLK #144
Walmart Pleasant Grove #5260
Walmart Joyce #359
Walmart NBHD Mission #2745
Harps College #355
Demography
2 mile Ring
% HHs
HHs Index
Age of Head of Household
Age
25.4%
604
5.1%
122
10.8%
258
7.2%
171
16.4%
389
Age
29.2%
193
109
23.1%
153
19.8%
131
26.5%
175
Age
14.4% 83
21.1%
16.5% 95
16.9% 97
16.1% 92
Age
10.7% 53
22.0%
110
13.9% 69
17.2% 86
12.7% 63
Age
10.9% 56
14.2% 73
18.8% 66
Age
5.4% 41
9.7% 74
8.3%
11.8% 90
7.3% 55
Age 75 or More
3.9% 37
9.4% 88
13.1%
8.2% 77 78
Age and Presence of Children
Age < 6
3.8% 52
9.3%
126
112
4.1%
6.2% 84
Age
8.4% 45
16.2% 87
12.3%
18.7%
101
13.5%
Age < 6 &
2.9% 44
12.0%
183 60
4.2% 64
3.0% 46
No Children
84.9%
62.5% 93
75.5%
73.0%
108
77.3%
114
Housing Tenure
Own
19.5% 30
60.5%
38.6% 59
60.9% 94
34.3%
Rent
80.5%
230
39.5%
113
61.4%
39.1%
65.7%
188
Education of Head of Household
Not a High School Graduate
8.6%
124
5.9%
5.6% 43
High School Graduate
16.6% 65
25.0% 98
23.0%
12.6% 49
18.6%
Some College
38.5%
134
26.8%
25.6% 89
34.7%
121
College Graduate
20.4%
107
20.7%
24.9%
30.6%
161
22.7%
119
Post College Degree
15.9%
116
117
19.4%
141
27.3%
198
18.5%

13. Category Assessment Price Gap:
Private label products were around 60% of the price of manufacturer brands.
From store to store, all the brands had relatively the same cost to stay competitive.
Perceived Quality:
All products were perceived the same across brands regardless of price.
Private label was missing out on not carrying speciality flavor/varieties like manufacturer brands.
Ex: Supreme, Caramel, Triple Fudge, With Nuts, etc.

14. Brownie Mix, Share of Display Space, Fall 2014
Manufacturer
Walmart MLK Facings
Walmart Pleasant Grove Facings
HARPCollege Facings
WalmartJoyce Facings
NeighWM Mission Facings
Continental Mills
% of Total Sum
10.5%
11.5%
5.1%
11.8%
18.2%
% of Total N
12.9%
13.2%
8.7%
12.1%
19.0% N 4 5 2
General Mills
42.1%
42.3%
25.6%
35.3%
31.8%
38.7%
34.2%
26.1%
36.4%
33.3% 12 13 6 7
Nestle
2.6%
3.8%
3.2%
4.3% 1
Pinnacle Foods Group
31.6%
30.8%
43.6%
32.3%
39.1%
28.6% 10 9 11
Private Label
1.9%
10.3%
2.9%
3.0%
The J.M. Smucker Company
9.6%
12.8%
14.7%
9.7%
13.0%
15.2% 3
Total
100.0% 31 38 23 33 21
Brownie Mix, Share of Display Space, Fall 2014
Continental Mills
Ghirardelli
General Mills
Betty Crocker
Nestle
Toll House
Pinnacle Foods
Duncan Hines
J.M. Smucker
Pillsbury

15. Brownie Mix, Share of Gross Margin $s, Fall 2014
Manufacturer
Walmart MLK GM$
Walmart P. G. GM$
Harps College GM$
Walmart Joyce GM$
NBHD Walmart GM$
Continental Mills
% of Total Sum
-0.1%
3.4%
8.8%
2.9%
4.3%
Mean
-.0033
.0700
1.2000
.0675 N 3 5 2 4
General Mills
51.3%
42.9%
11.6%
47.8%
26.2%
.3095
.3420
.5283
.3685
.2344 12 13 6 7
Nestle
7.1%
4.9%
2.3%
.5130
.6148 1
Pinnacle Foods Group
38.7%
38.4%
44.0%
36.9%
25.8%
.2796
.3063
1.3338
.3412
.2693 10 9
Private Label
4.6%
3.2%
13.1%
3.6%
.3350
1.7912
The J.M. Smucker Company
-1.6%
7.2%
20.2%
8.7%
43.6%
-.0380
.1486
1.8350
.1612
.6819
Total
100.0%
.2411
.2729
1.1859
.2889
.2978 30 38 23 32 21
Brownie Mix, Share of Gross Margin $s, Fall 2014
Continental Mills
Ghirardelli
General Mills
Betty Crocker
Nestle
Toll House
Pinnacle Foods
Duncan Hines
J.M. Smucker
Pillsbury

16. Brownie Mix, Share of Gross Margin %, Fall 2014
Manufacturer
Walmart MLK GM%
Walmart P. G. GM%
Harps College GM%
Walmart Joyce GM%
NBHD WalmartGM%
Continental Mills
Mean
-0.18%
3.54%
38.10%
3.41%
Std. Deviation
5.536%
4.517%
2.245%
5.206% N 3 5 2 4
General Mills
12.15%
13.69%
24.68%
15.02%
8.17%
21.835%
21.580%
8.545%
20.931%
21.585% 12 13 6 7
Nestle
16.13%
18.73% . 1
Pinnacle Foods Group
15.60%
14.62%
47.97%
19.31%
12.93%
20.662%
22.396%
7.093%
17.963%
20.229% 10 9
Private Label
26.80%
67.21%
20.120%
The J.M. Smucker Company
-3.04%
6.61%
61.37%
7.24%
24.44%
0.000%
21.574%
5.973%
22.997%
40.157%
Total
11.17%
43.19%
14.06%
11.72%
19.134%
19.739%
16.930%
18.884%
23.217% 30 38 23 32 21
Brownie Mix, Share of Gross Margin %, Fall 2014
Continental Mills
Ghirardelli
General Mills
Betty Crocker
Nestle
Toll House
Pinnacle Foods
Duncan Hines
J.M. Smucker
Pillsbury

17. Audit SKU Summary Store Location SKU'S Unique SKU'S Audited By:
Walmart
Martin Luther King 38 5
Bryana S
Pleasant Grove 52 9
Thomas S
Walgreens 1
Garland Street
Harps
College 39 7
Joyce Blvd 34 6
NeighWM
Mission and Crossover 22 8 24
Target
Shiloh Dr. 17 2 13 4

18. Category Strategy
In the stores we audited, the retailers were more favorable to Duncan Hines and Betty Crocker.
Almost nothing in Private Label (1 SKU)
Needed more shelf space for products (change from a 4 foot area to 8 foot)
Lots of deals on products

19. Category Tactics
Private label is essentially a non-factor with only 1-2 SKUs per store. We believe retailer have a big opportunity to grow that area starting with specialty flavors.
This category is being carried by Duncan Hines (Pinnacle Foods) and Betty Crocker (General Mills).

20. Category Review Category is shrinking, especially in private label.
(Last year they found 14 SKUs in Walmart, Walgreens, and
Harps, and now we only have 3.
We believe poor sales performance is driven by growing health concerns. (There are now gluten-free mixes)