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Bacon. Blake Gunderson Nic Liu Austin Starrett. Overview. Supplier is in control Strong brands Oscar Mayer, Hormel, Wright Brand Based on commodity Price is directly based of off the price of livestock Core Traffic Low is gross margin and high in sales . Findings. Past Semesters
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Bacon Blake Gunderson Nic Liu Austin Starrett
Overview • Supplier is in control • Strong brands • Oscar Mayer, Hormel, Wright Brand • Based on commodity • Price is directly based of off the price of livestock • Core Traffic • Low is gross margin and high in sales
Findings • Past Semesters • We see the category increasing in the number of SKU’s
Demographics • Popular with income of $30,000 and up • -$70,000-$100,000 highest • Multi Member households • Popular in… • Households with female heads • Maturing and established families with children
Category Role • Sales volume- $2 billion • Household penetration- 71.5%
Brands • Oscar Mayer is the dominating brand • Greatest display space • No brand is found at every store • Specialty stores • Aldi, Ozark Natural, etc. • BUT brands like Oscar Mayer and Hormel were found at all major retailers
Category Strategy • Very low item on deal percentage • Due to being a commodity based item • Some brands were promoted more due to additional locations • -Wright Brand, Great Value
Estimates • Oscar Mayer- 32.8% GM • Hormel- 33.8% GM • Wright Brand- 29.67% GM • Gross Margin category- 20-35%
Private Labels • Great Value Bacon • Not very competitive in pricing • Wal-Mart carried Great Value • Gross Margin is 20.96% • Only one store has Private Label • Wal-Mart is committed • Not smaller grocery stores
Private Label • Private Label is based on the retailer • Has high volume sales • Demographics are the same as national brands
Private Label- Recommendations • Recommendation for Wal-Mart • Keep Great Value Bacon • High sales • Comparable margins
Bacon brings smiles to everyone’s* faces! *Except for vegetarians, vegans, and those of the Islamic or Jewish faith.
Thank you! Any questions?