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This report examines the granola market trends from Fall 2010, focusing on key demographics and brand performance. It highlights the growth of smaller households, with independent singles and couples driving demand. The leading brands, Cascadian and Sunbelt, offer competitive pricing, while Archer Farms stands out as a notable private label. The report discusses average sales figures, gross margins, and market penetration, emphasizing the opportunities for private labels amidst rising consumer demand, particularly among younger demographics.
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GRANOLAFall 2010 Steven Lung
Demographics • Smaller households with a size of one or two members and no kids. • Independent singles and established couples receive the largest share - targeted to younger adults • The two strongest brands (Cascadian and Sunbelt) have an average price of 15 cents/once, while the third strongest brand has a range of 29 to 52 cents/once • Private Label Strategy, does provide flexibility for lower income families to receive a better quality product • Archer Farms is the only private label
Marsh - “Cereal/other breakfast foods”, • Average weekly sales of $9,635.90 • 17.72% of gross margin • Granola category has a lesser amount of sales and penetration. • Average 2.18% item penetration, • Higher gross margins per item sold and lower penetration of the category
Audits *Not found at any competing retailer No prior Audits
-Quaker presents an impressive 4.5 stocking rate due to its unique SKU • Cascadian and Sunbelt as the strongest brands • Highest Stocking Rate • Store Availability • Gross Margins • 68 SKUS
Gross Margin estimates do not show consistency across retailers • Ozark Natural Foods different target market that is able to price their items at a higher price alongside their exclusive brands • Cascadian Farm a high margin item($3.01) ; furthermore, • Walmart’s lower prices create a gross margin ($0.71) differentiation with stores such as Target ($0.53). • Bob’s Red Mill is one of the weakest brands in the market
Target’s Archer Farms is the only private label in the audit • Premium quality target • Price highly competitive with both Sunbelt and Cascadian Farm • Packaging, position • Gross margin makes • Hard to beat competitor. • Unique variety of SKU with its competitive price among both young and older demographics.
Private labels seem to have a good opportunity to enter this market. The high prices and increasing demand on younger demographics appear to be attractive for private label.