Brownies Fall 2011
Category Overview • Size of the Category: $286,872,700 in sales, 47 million buyers, 40.5% penetration. • The Supplier is in control of this category because there is a strong national brand presence. • Strong brands: Betty Crocker, Duncan Hines, Pillsbury. Brands Manufacturer # SKUs Pillsbury J.M. Smucker 15 BettCrocker General Mills 15 Duncan Hines Pinnacle Foods 13 GhiradheliContintentalMills 4 Hospitality Gilster/Mary Lee 1 No PudgeReily Foods 5 Simply Organic Frontier Natural 1 Dr. Oekter Dr. Oetker 1 Baker's Corner Private Label 1 Market Pantry Private Label 2 Kroger Private Label 3 Best Choice Private Label 7
Importance of Depth • SKUs by Store
Importance of Depth: Role • Role: Maintain • Sales Dollars: $287million • Household Penetration: 40.5% • Gross Margins: 17.5%
Strength of Brands: Stocking Rate Data • Market Stocking Rate
Private Label: Strength • Weak Private Label • Stores carrying PL: Aldi, Harps, Kroger,Target • PL GM ≤ Retailer’s Avg. Category GM • PL used to initiate competition between suppliers
Private Label: Presence • Strongest PL commitment at Harps with Best Choice Brand having 7 SKUs • PL presence is decreasing because it only represents 5.4% of item dollars in the category compared to 6.9% last year. • Only premium PL is Archer Farms at Target • PL Demographics: Same as national brands, except more prevalent in lower income brackets. Fall 2010
Private Label: Recommendations • Target should consider decreasing their private labels because their GM aren’t higher than the national brands.