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This report provides an in-depth analysis of the antacid market, focusing on demographic trends and brand performance. The findings reveal that the category skews towards older adults, particularly established couples aged 35-54, while younger families exhibit lower usage rates. Notably, Alka-Seltzer attracts a diverse demographic, including higher representation among Black and Hispanic consumers, unlike most brands that lean heavily towards affluent white customers. Additionally, the financial performance of national brands versus private labels is examined, highlighting the significance of gross margins and unique SKUs across retailers such as Target and Walmart.
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Semester Category ProjectFall 2013 Antacids Dan Beahm
Figure 1: Category Snapshot • Skews heavily towards older people • Especially towards couples • Established couples 35-54 also indexes high • Young and start-up families have low usage
Figure 2: Category Demographics • Most brands skew heavily white • Alka-Seltzer indexes highest in black and Hispanic • Most brands skew heavily towards wealthy people ($100k+) • Alka-Seltzer indexes heavier towards lower income homes • Significantly older demographics among all brands
Figure 3: Category Role • National Brand antacids pull in a very high sales dollar volume, but lower gross margins • Private labels are higher gross margin percentage, but still high sales dollar volume • This makes them a flagship • Very important item for retailers to leverage
Figure 4: Store Audit Breakdown • SKUs were fairly even throughout different retailers • Target had the most private labels • This lead to the most Unique SKUs • Walmart is at disadvantage for unique SKUs • They also had heavy private label, but because I audited two types of Walmarts, I couldn’t count them as unique (both stores had them)
Private label and Tums battle it out for higher gross Margin percentage • Alka-Seltzer had lowest gross margin • This fits with Alka-Seltzer skewing towards lower income homes • Average Gross Margin %s are very high
Tums appears to dominate the Gross Margin $ game • Rolaids and Private Label are also successful • Alka-Seltzer and Gaviscon produce pretty low Gross Margin $s
The most facings are given to Tums • This fits with Tums having the highest gross margin % • Private label is a close second in facings, with products “imitating” each of these brands