Barbecue Sauces By Jason Klotz
Overview • Total category sales for Barbecue Sauces in 2007 was • $247,875,900 • 108 total category SKUs • 25.6% item dollars on deal • Private label accounts for 7% of total SKUs • Kraft makes up 27.4% of category sales • Kraft is the only brand in every store • Kraft has a 20% penetration • Retailer is in control of the category
Overview • Main retail competitors – Walmart, Harps and Target • Depth is important in category due to amount of brands • Prevalent national brands • Kraft • Sweet Baby Rays • HV Foods (KC Masterpiece)
Demographics …Household Income • Kraft consistent presence in all income ranges • Specialty barbecue sauces trend in high income households
Demographics …Household Sizes buying barbecue sauces • 1 member households do not buy barbecue sauce • 5+ member households purchase Kraft and KC Masterpiece
Demographics …Ages buying barbecue sauces • Ages 55+ not the target market for barbecue sauce • Single men buy Stubb’s barbecue
Leading Brands • Kraft has the most number of SKUs in all 4 stores • Sweet Baby Rays has the highest gross margins in 3 of the 4 stores.
Leading Brands …National Brands • Kraft is the only brand in all 6 stores • Sweet Baby Rays has the highest stocking rate of all the brands
Category Captain • Kraft is the leading brand in sales $, SKUs, display face and is the category captain. • Sweet Baby Rays and KC Masterpiece continue to grow and take market share from Kraft over last 5 years.
Recommendations • Recommendations to Target • Increase depth if you want to be competitive in the barbecue category • Differentiate yourself with lesser known, high priced brands • Avoid Private Labels