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Bacon

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

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Presentation Transcript

  1. Bacon Blake Gunderson Nic Liu Austin Starrett

  2. 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

  3. Findings • Past Semesters • We see the category increasing in the number of SKU’s

  4. 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

  5. Category Role • Sales volume- $2 billion • Household penetration- 71.5%

  6. 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

  7. 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

  8. Estimates • Oscar Mayer- 32.8% GM • Hormel- 33.8% GM • Wright Brand- 29.67% GM • Gross Margin category- 20-35%

  9. Share of Facings

  10. Share of GM Estimates

  11. 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

  12. Private Label • Private Label is based on the retailer • Has high volume sales • Demographics are the same as national brands

  13. Private Label- Recommendations • Recommendation for Wal-Mart • Keep Great Value Bacon • High sales • Comparable margins

  14. Bacon brings smiles to everyone’s* faces! *Except for vegetarians, vegans, and those of the Islamic or Jewish faith.

  15. Thank you! Any questions?

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