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Apple Juice

Apple Juice. Amanda Peters Katy Beasley. Overview. Overall Apple Juice category in 2007 had sales of $616,309,900. Private Label accounted for 39.9% of those total sales. Retailer seem to have strong private label brands that play a significant role in this category. Audited Stores.

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Apple Juice

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  1. Apple Juice Amanda Peters Katy Beasley

  2. Overview • Overall Apple Juice category in 2007 had sales of $616,309,900. • Private Label accounted for 39.9% of those total sales. • Retailer seem to have strong private label brands that play a significant role in this category.

  3. Audited Stores • Wal-Mart- Bentonville • Wal-Mart- Pleasant Grove • Target- Pinnacle Hills • Target- Fayetteville ** Private Label leads

  4. Demographics • Overall the demographics for Apple Juice brands vary. The private label brands are mostly families that have an income between $40,000 and $70,000 with 5+ members in a family, and with kids less than 6 years old. Also, with the age of the female of 44 years old and less • Old Orchard was the main brand that dominated lower income families with 5+ members in the family • Tree Top is the leading brand that dominates the income range of $50,000-$69,999

  5. Category Role • Category sales for Apple Juice in 2007 were over 600 million dollars. • Apple juice continues to maintain margins up to 53%. Private label has the highest estimated gross margin. • As a category Apple Juice is a Cash Machine

  6. Ad Hoc Base

  7. Brand Domination • Great Value, out of all 10 stores that were audited, had the greatest share of display space • Mott’s 1 Gallon 100% Apple Juice appears in 7 out of 10 stores

  8. Share of facings by Manufacturer

  9. Gross Margins • Top 5 gross margins • Wal-Mart- 54% • Nestle- 44% • Mott’s-37% • Tree Top- 28% • Target- 23%

  10. Gross Margins

  11. Private Label • Private label is significant in the Apple Juice category. • Wal-Mart had 30 facings dedicated to Great Value • Private label was seen in every store. • Private label had the leading gross margins. • Retailers are committed to their Private label brands versus National brands. • Private label dollar share percentages have slightly decreased from 2005; however, total dollar sales have increased.

  12. Recommendations • Our recommendations for Target would be to increase their shelf space dedicated to private label if they want to compete with Wal-Mart in this category.

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