1 / 18

Tuna, Is it Chicken or Fish?

Tuna, Is it Chicken or Fish?. Adam Hoffman Justin Hamby Isaac Lane. Did You H ear A bout t he E vil T una?. In the tuna category, all evidence indicates that Starkist is in complete control of the category. They dominate: Shelf space (>50% in most stores) Revenue(>50%)

arnon
Télécharger la présentation

Tuna, Is it Chicken or Fish?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Tuna, Is it Chicken or Fish? • Adam Hoffman • Justin Hamby • Isaac Lane

  2. Did You Hear About the Evil Tuna? • In the tuna category, all evidence indicates that Starkist is in complete control of the category. • They dominate: • Shelf space (>50% in most stores) • Revenue(>50%) • Stocking rate(>34%) A: Rumor has it he was rotten to the albacore.

  3. Category Audit Depth

  4. Facings by GM

  5. Know Your Role, Tuna • Tuna in cans • Core Traffic • Tuna in pouches • Cash Machine

  6. It’s Who We Are • Income • Different brands target different incomes • Family Size • High in families of 2+, but especially 5+ • Children’s Age • Highest when children between 13-17 are present

  7. Domination You Say? • Tuna is a $100,000,000 category (as of 2007) • Starkist is dominant • $50,000,000 • Private Label is second highest • $20,000,000 • All other brands make up the remaining 28% of the category sales. • Ex: Chicken of the Sea, Bumble Bee, etc.

  8. Location, Location, Location • Starkist has the only SKU’s in double digit stores • 11 Stores carry Light Tuna in Water • 10 Stores carry Light Tuna in Oil • Stocking rates • Starkist= 35% • Bumble Bee= 29.4% • Chicken of the Sea= 24.7% • Private Label= 15%

  9. Average GM vs. SKU’s

  10. Brand Score Card

  11. Anything you can do, I can do better Average Gross Margin Comparisons • Chicken of the Sea • 42.97% • Starkist • 36.99% • Bumble Bee • 33.62% • Private Label • 30.1%

  12. Private Label • Private label tuna accounts for 20% of the categories revenue. • That is second only to Starkist’s revenues. • All major retailers have some form of private label tuna fish. • Harp’s: 37.6% • Walmart: 31.29% • Target: 24.3% • Aldi: 10.6%

  13. Private Label cont. • Private Label will have an increasing effect on the category due to their relatively low prices but competitive gross margins. • Smaller households have increased their purchase of private label, while larger households have decreased their purchases electing to go with name brand tuna.

  14. Private Label Strategy (Wal-Mart) • Wal-Mart stocks 4 SKU’s of private label, 1 of which has 17 facings. We recommend that they introduce a higher quality/price private label. • Premium Lite? (Sam’s Choice Tuna?) • We also recommend that they increase the number of SKU’s they offer in their current private label.

  15. Private Label Strategy (Target) • More broad focus of private label. More SKU’s and spacing distributed to Private Label. More committed to Private Label. • Only stocks Starkist, Bumble Bee, and Private Label • High dependence on Starkist (75% total GM) • Would more involvement in an additional brand affect total GM? Would this affect Private Label?

  16. Private Label Strategy (Harps) • Small Spacing and SKU depth for Private Label. (4 SKU’s with 5 spacing's) • Higher GM on Private Label, but fewer SKUs. • Addition of higher quality Private Label?

  17. Private Label Recommendations • Overall recommendation for retailers to invest more in private label pouches. • Why? Higher Margins and (hopefully) increase buying power. • Reduce dependence on Starkist. • Focus on higher quality Premium lite type products to entice switching and to reduce brand loyalty.

More Related