Date post: | 24-Dec-2015 |
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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
Stores audited # SKU's # Unique SKUs
Walmart - MLK 76 4
Walmart - Mall 72 0
Harps - Rogers 53 24
Target - Rogers 12 1
Sams Club - Rogers 5 5
Walgreens - Rogers 1 0
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
FAMOUS DAVE'S - BARBECUE SAUCES
KC MASTERPIECE - BARBECUE SAUCES
KRAFT - BARBECUE SAUCES
STUBB'S - BARBECUE SAUCES
SWEET BABY RAY'S - BARBECUE SAUCES
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
INC - <$20,000 33.9 60.6 100.7 41.4 46.6INC - $20,000-
29,99935.7 71.0 96.5 27.7 70.6
INC - $30,000-39,999
57.8 109.7 117.4 69.5 80.1
INC - $40,000-49,999
141.4 95.6 106.0 85.3 99.2
INC - $50,000-69,999
135.9 120.3 107.5 95.4 120.0
INC - $70,000-99,999
157.8 118.3 102.2 183.0 146.8
INC - $100,000+ 128.3 119.4 79.4 163.9 124.8
• Kraft consistent presence in all income ranges• Specialty barbecue sauces trend in high income households
…Household Income
Demographics
• 1 member households do not buy barbecue sauce• 5+ member households purchase Kraft and KC Masterpiece
FAMOUS DAVE'S - BARBECUE SAUCES
KC MASTERPIECE - BARBECUE SAUCES
KRAFT - BARBECUE SAUCES
STUBB'S - BARBECUE SAUCES
SWEET BABY RAY'S - BARBECUE SAUCES
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
SIZE - 1 MEM47.3 41.9 43.0 82.1 37.4
SIZE - 2 MEM102.4 92.1 79.0 97.5 104.6
SIZE - 3-4 MEM145.9 129.9 136.8 113.2 127.9
SIZE - 5+ MEM90.4 181.0 198.7 113.7 160.0
…Household Sizes buying barbecue sauces
Demographics
• Ages 55+ not the target market for barbecue sauce• Single men buy Stubb’s barbecue
…Ages buying barbecue sauces FAMOUS DAVE'S -
BARBECUE SAUCES
KC MASTERPIECE - BARBECUE SAUCES
KRAFT - BARBECUE SAUCES
STUBB'S - BARBECUE SAUCES
SWEET BABY RAY'S - BARBECUE SAUCES
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
AGE FH - UNDER 35
104.0 123.6 123.0 107.4 114.6
AGE FH - 35-44134.0 136.5 137.0 128.8 153.5
AGE FH - 45-54139.1 120.4 122.2 93.4 130.1
AGE FH - 55+49.5 69.8 80.3 60.7 74.5
AGE FH - 55-6466.9 86.7 99.1 81.9 93.6
AGE FH - 65+31.6 52.5 61.1 39.1 55.0
AGE FH - NO FEMALE HEAD
101.7 72.6 56.0 133.0 50.7
Manufacturer MLK Walmart
Mall Walmart
Harps Rogers
Target Rogers
Kraft % of Total Facings 25% 31% 30% 37%% of Gross Margin 10% 11% 19% 18%N 19 15 12 4
Sweet Baby Rays Inc. % of Total Facings 17% 17% 10% 37%% of Gross Margin 13% 17% 4% 51%N 11 9 5 5
HV Foods % of Total Facings 13% 14% 16% 19%% of Gross Margin 12% 17% 11% 22%N 12 9 9 2
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.
Brand # of retailers stocking stocking rate
Kraft 6 33.3%
Sweet Baby Rays 4 41.6%
KC Masterpiece 5 31.5%
Leading Brands
• Kraft is the only brand in all 6 stores
• Sweet Baby Rays has the highest stocking rate of all the brands
…National 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