Tuna BRITTANY SCOTT KATHRYN BAILEY YAMEL ZAVALETA Audit Summary 11 Stores audited Price Cutter Springdale Harps Springdale Harps Garland (Fayetteville) Wal-Mart Joyce (Fayetteville) Wal-Mart Neighborhood Market (Fayetteville) IGA Fayetteville USA Drug College (Fayetteville) Ozark Natural Foods (Fayetteville) Walgreens Township (Fayetteville) Aldi Springdale Family Dollar Springdale • 4 Different Manufacturers • 59 SKUs • 4 Different Private Label Brands Overview The Tuna category had total sales of 1,066,132,000 in 2007 Star-Kist was the leader in sales with 341,371,000 For our Private Label of Tuna, there were total sales of 179,188,000 Almost every store audited carried Private Label except for Walgreen’s and USA Drug The supplier is in control! Tuna SKUs Store SKUs Wal-Mart Neighborhood Mkt Fayetteville 24 IGA Fayetteville 19 Harp’s Springdale 17 Price Cutter 11 Wal-Mart Joyce Fayetteville 10 Walgreen’s College Fayetteville 5 Harp’s Garland 4 Aldi Springdale 3 Family Dollar Springdale 3 USA Drug Fayetteville 2 Tuna Stores to carry all of the brands and Private Label Price Cutter Harps Springdale Wal-Mart Neighborhood Market Fayetteville Wal-Mart Joyce Fayetteville IGA The store that only carried Private Label was Aldi A UNIQUE SKU – Solid Light Extra Olive Oil sold only at WalMart Neighborhood Market Fayetteville Demographics Private Label is high in incomes < $29999 Family Size Highest dollar volume index in family size 5+ members Age Female household ages 45-54 With Kids 13-17 Employment Female head employed part-time Education Female head some education Ethnicity Hispanics Asians had the lowest BUMBLE BEE - SEAFOOD- TUNASHELF STABLE ENDING 12/27/03 ENDING 12/29/07 CHICKEN OF THE STAR KIST - SEAFOOD- TUNASEA - SEAFOOD- SHELF STABLE TUNA- SHELF STABLE ENDING 12/27/03 ENDING 12/27/03 CTL BR - SEAFOOD- TUNASHELF STABLE ENDING 12/29/07 ENDING 12/27/03 ENDING 12/29/07 TOTAL HOUSEHOLDS INC - <$20,000 INC - $20,000-29,999 INC - $30,000-39,999 INC - $40,000-49,999 INC - $50,000-69,999 SIZE - 1 MEM SIZE - 2 MEM SIZE - 3-4 MEM SIZE - 5+ MEM AGE FH - UNDER 35 AGE FH - 35-44 AGE FH - 45-54 AGE FH - 55+ AGE FH - 55-64 AGE FH - 65+ AGE FH - NO FEMALE HEAD 100.0 73.8 77.7 96.4 120.3 102.2 73.9 103.7 109.7 124.9 75.8 102.0 120.6 110.8 116.2 106.5 100.0 68.8 77.9 95.5 89.7 102.4 68.0 108.9 108.0 128.6 74.8 105.7 118.7 114.0 119.9 107.8 100.0 74.3 87.5 87.9 111.5 110.7 71.6 100.5 107.5 146.2 88.5 110.5 120.7 99.5 110.4 90.7 100.0 71.7 90.3 94.0 112.4 113.6 69.6 99.5 117.1 126.7 93.3 114.5 124.6 88.2 99.3 79.3 100.0 73.7 85.9 96.2 99.3 108.9 73.1 101.3 112.0 127.8 102.0 107.8 117.9 95.1 101.8 88.2 100.0 109.1 102.5 98.9 102.1 93.4 75.2 95.9 109.8 144.8 94.6 107.1 109.0 95.1 106.2 86.3 100.0 111.6 108.3 109.3 92.0 104.3 68.4 99.8 111.9 144.3 98.7 110.7 109.8 94.5 96.8 92.2 82.4 79.2 79.5 83.6 81.0 96.0 90.7 KIDS - NONE < 18 KIDS - ANY < 18 KIDS - ANY < 6 KIDS - ANY 6-12 KIDS - ANY 13-17 EMP - FH EMPLOYED EMP - FH EMP. FULL TIME 100.4 99.2 79.7 95.8 114.5 104.9 100.0 100.1 91.7 99.0 113.2 106.2 94.8 110.2 106.0 114.8 117.5 105.8 94.3 111.3 100.4 105.0 128.4 109.4 93.5 112.1 108.6 113.3 121.5 105.1 91.9 115.9 108.5 120.8 128.9 97.6 91.3 116.2 105.6 125.3 128.4 92.6 101.8 107.2 102.0 112.3 105.6 97.5 89.2 112.6 103.4 115.3 102.2 103.8 98.0 101.9 EMP - FH NOT EMPLOYED EMP - NO FEMALE HEAD ED - FH NOT HIGH SCH GRAD 103.0 82.4 103.7 79.2 103.3 79.5 96.1 83.6 104.1 81.0 105.4 96.0 114.4 90.7 90.4 96.9 90.1 91.2 108.7 110.6 121.7 ED - FH HIGH SCH GRAD ED - FH SOME COLLEGE ED - FH COLLEGE GRAD ED - NO FEMALE HEAD RACE - CAUCASIAN RACE - NON-CAUCASIAN RACE - AFRICAN AMER. RACE - ASIAN RACE - OTHER RACE ETH - HISPANIC 98.8 107.5 110.5 82.4 100.5 98.3 89.8 79.0 117.1 107.4 100.5 108.8 79.2 99.0 103.4 101.9 77.3 114.2 100.6 108.2 109.6 79.5 99.7 101.3 79.4 115.6 132.3 100.5 111.7 100.6 83.6 101.7 93.6 84.4 67.9 115.2 107.8 109.7 93.4 81.0 103.3 88.5 81.7 67.6 105.4 99.9 99.7 102.0 96.0 104.5 82.9 73.1 67.4 102.7 111.8 105.1 81.7 90.7 106.3 77.9 70.0 55.1 96.9 130.5 127.8 130.0 120.4 106.0 92.8 100.9 JOB - PROF/MANAGERIAL 112.8 100.6 106.5 110.2 99.9 96.6 87.6 EMP - FH EMP. PART TIME 52 Weeks Ending 12/29/2007 52 WEEKS ENDING 12/29/07 ITEM $ (000) DOLLAR SHARE ITEM BUYERS (000) ITEM PENETRATIO N ITEM $ PER ITEM BUYER ITEM TRIPS PER ITEM BUYER ITEM $ PER ITEM TRIP ITEM UNITS PER % REPEAT BUYERS LOYALTY ITEM TRIP (% 2+ TIME (SHARE OF $ BUYERS) REQ.) SEAFOOD- TUNA- SHELF STABLE 1,066,132.3 100.0 79,354.8 68.4 13.4 4.3 3.2 2.9 74.2 100.0 341,371.8 32.0 43,113.9 37.1 7.9 2.6 3.0 2.6 52.5 49.9 297,511.8 27.9 31,820.8 27.4 9.4 2.5 3.7 2.8 51.6 51.2 212,247.3 19.9 31,690.9 27.3 6.7 2.1 3.2 2.8 45.3 40.1 179,188.5 16.8 25,813.6 22.2 6.9 2.9 2.4 3.2 52.5 45.7 STAR KIST - SEAFOOD- TUNA- SHELF STABLE BUMBLE BEE - SEAFOOD- TUNA- SHELF STABLE CHICKEN OF THE SEA - SEAFOOD- TUNA- SHELF STABLE CTL BR - SEAFOOD- TUNA- SHELF STABLE • Tuna in cans accounts for Core Traffic • Tuna in pouches accounts for Cash Machine Dominate Brand? • • THE MOST DOMINATE BRAND IS STARKIST THE GREATEST SHARE OF DISPLAY IS STARKIST BY FAR • • • StarKist was seen in most stores StarKist also had the most facings & SKU’s BUMBLE BEE WAS IN 9 OF THE STORES • StarKist was seen in less stores than Bumble Bee Share of Store Facings Vs. SKUs N-MFR Private Label % of Total Sum % of Total N Gross Margin N Starkist % of Total Sum % of Total N Gross Margin N Chicken of the % of Total Sea Sum % of Total N Gross Margin N Bumble Bee % of Total Sum % of Total N Gross Margin N Total % of Total Sum % of Total N Gross Margin N Tuna Spring 2011 PCSPDF HSPF 39.3% 22.6% 33.3% 20.8% 4 28.6% 22.2% 15.6% 4 35.8% 33.3% 61.2% 4 17.9% ALDFF 100.0% 100.0% 100.0% 3 IGAFF WMJBLVDFF 7.1% 7.1% 10.0% 18.8% 2 60.7% 20.0% 5.6% 2 66.1% 35.2% 44.4% 61.9% 8 30.2% 60.0% 36.9% 12 25.0% 40.0% 63.1% 4 19.6% 47.8% 16.7% 14.9% 2 14.3% 22.2% 19.8% 4 11.3% 25.0% 14.6% 5 7.1% 10.0% 30.2% 1 7.1% 21.0% 16.7% 3.1% 2 100.0% 11.1% 2.7% 2 100.0% 30.0% 1.1% 3 100.0% 10.0% 100.0% 5.0% 29.8% 1 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 12 18 3 20 10 StarKist national brand showed to have the most shelf space Stocking Rates Bumble Bee = 21% StarKist = 17% Great Value = 15% Chicken of the Sea = 9.4% We found that Bumble Bee had the highest stocking rate than its competitors and was found at every store audited! Who’s in Control? StarKist showed to be most in control - it showed to have the highest amount of display space - it showed to have the highest variations of tuna Bumble Bee is in 9 of the 11 stores audited which demonstrated the highest competition for StarKist. Gross Margin Report N-MFR PC$GM WMJBLVDF$G ALDFGM$ M 100% 19% Private Label % of Total Sum 21% HSPGM$ 16% IGAF$GM Starkist % of Total Sum 61% 62% 37% 63% Chicken of the % of Total Sum Sea 15% 20% 15% 30% 30% 1% 6% Bumble Bee % of Total Sum 3% 3% Total % of Total Sum 100% 100% 100% 100% 100% % of Total N 100% 100% 100% 100% 100% Price Cutters PC$GM PCSPDF 1 Mean 1.2000 2 Harp's HSPGM$ HSPF N 1 1 Mean 0.5800 0.7567 6 2 0.5367 3 3 0.4200 5 3 0.4000 7 Total 0.6533 12 4 0.6633 6 Total 0.5276 17 Aldi ALDFGM$ ALDFF 1 Total N 1 Wal Mart-Joyce Blvd. Mean 0.0367 0.0367 N 3 3 WMJBLVDF$GM WMJBLVDFF 1 2 3 4 10 11 22 Total Mean 0.9200 0.3000 0.1800 0.6600 0.2800 0.9000 0.1800 0.6180 N 4 1 1 1 1 1 1 10 Private Label • A few of our stores audited carried Private Label tuna product especially Aldi which only carried Private Label products Aldi -Northern Catch Wal-Mart - Great Value Harps - Always Save Family Dollar - Van Camps Private Label Aldi led the way for Private Label being at 100% of Private Label products. With their presence in the market, they hold great success over other retailers who trail quite a bit behind Aldi’s 100% gross margin category. AD HOC Private Label increased according to Ad Hoc from 2003-2007 in all income levels except 40k-49999 Family size of 1 member bought less of Private Label Tuna Ages 55-64 bought less Caucasian and Hispanics were the only groups that bought more Recommendations Private Label shows a stable presence in the category although gross margin are weaker than those of national brands. Private Label has a presence in all stores and continues to sell for this core traffic category. It would be wise for Private Label category to continue to maintain its occurrence.