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Energy Drinks

Energy Drinks. Morgan Plumlee and Elizabeth Monnig. Supplier in control Red Bull leading brand Private label not common in most retailers Retailer in control Target has an Archer Farms energy drink Only retailer with a private label. Overview. Fayetteville Springdale

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Energy Drinks

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  1. Energy Drinks Morgan Plumlee and Elizabeth Monnig

  2. Supplier in control • Red Bull leading brand • Private label not common in most retailers • Retailer in control • Target has an Archer Farms energy drink • Only retailer with a private label Overview

  3. Fayetteville Springdale Walgreens Joyce Kmart Walgreens School Walgreens 6th Street Rogers Walmart 6th Street Neighborhood Market IGA Target Target Harps Garland Audits

  4. 70 SKUs found in our audit • Walgreens has the most • Walmart had fewest Depth

  5. Income • Between $30,000-$50,000 • Age FH • 35-44 • Household Size • 3-4 members • Education FH • Some college Demographics

  6. Demographics

  7. Display Space

  8. Red Bull • Premium Price • Not found at every store • 50% display space at Walmart and 44% display space at Target • Monster • Majority of display space in most retailers • Around 34% • Most SKUs found Display Space

  9. Every Store • Monster • Amp • Rockstar • Market Stocking Rate • Red Bull 56.7% • Amp 50% • Monster 42.8% • Rockstar 38% SKUs

  10. Gross Margins by Supplier

  11. Red Bull • Lowest gross margins because it is the leading brand • Amp • Highest gross margins • Private Label • Target’s private label has 66% gross margins • Walmart • Lowest gross margins out of all the retailers Gross Margins by Supplier

  12. Gross Margins by Facings

  13. Energy drinks is not a popular category for Private Labels • Target is the only retailer with a Private Label energy drink • Gross Margin is around 66% Private Labels

  14. We do not expect private labels to increase in this category. • Target is the only retailer we feel will be successful with a private label because of their previous success with the Archer Farms brand • In fall 2008, there were only 47 SKUs and no private label Private Label

  15. Walmart • Increase emphasis on national brands • Do not have very many SKUs available in grocery section • Not a leading retailer in this category Private Label

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