BACON

Blake GundersonNic 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 We see the category increasing in the

number of SKU’s

StoreTotal # of SKUs

# of Unique SKUs

Walmart 6th Street 56 4Walmart Mall 53 2Walmart NM 36 0Harps Wedington 30 3Harps Fiesta Square 29 6Ozark Foods 6 6

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

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

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

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

Estimates Oscar Mayer- 32.8% GM Hormel- 33.8% GM Wright Brand- 29.67% GM

Gross Margin category- 20-35%

Manufacturer SelectiveWMSC 6th

FacingsWMSC Mall

FacingsWMNM Facings

HarpsF Facings

Harps (Fiesta Square) Facings Ozark Facings

Farmland % of Total Sum

4.55% 3.03% 5.77% 23.33% 30.00%  % of Total N 3.57% 3.77% 5.56% 23.33% 24.14%  N 2 2 2 7 7  

Great Value % of Total Sum

10.61% 15.15% 15.38%      % of Total N 10.71% 13.21% 13.89%      N 6 7 5      

Hormel % of Total Sum

16.67% 22.73% 19.23% 10.00% 10.00%  % of Total N 17.86% 18.87% 19.44% 10.00% 10.34%  N 10 10 7 3 3  

John Morrell % of Total Sum

6.06% 4.55% 7.69%      % of Total N 5.36% 5.66% 8.33%      N 3 3 3      

Oscar Mayer % of Total Sum

25.76% 27.27% 30.77% 13.33% 10.00%  % of Total N 23.21% 28.30% 27.78% 13.33% 10.34%  N 13 15 10 4 3  

Wright Brand % of Total Sum

7.58% 7.58% 5.77% 13.33% 5.00%  % of Total N 8.93% 5.66% 8.33% 13.33% 3.45%  N 5 3 3 4 1  

Others % of Total Sum

28.79% 19.70% 15.38% 40.00% 45.00% 100.00%

% of Total N 30.36% 24.53% 16.67% 40.00% 51.72% 100.00%N 17 13 6 12 15 6

Total % of Total Sum

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

% of Total N 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%N 56 53 36 30 29 6

Share of Facings

Share of GM EstimatesShare of Gross Margin Estimates

Manufacturer Selective

WMSC MallGm

WMSC 6th GM

WMNM GM

HarpsGM

Harps (Fiesta Square)

GM Ozark GMFarmland % of Total

Sum2.35% 1.68% 3.40% 10.46% 10.49%  

N 2 2 2 7 7  Great Value

% of Total Sum

9.69% 8.01% 8.43%      N 7 6 5      

Hormel % of Total Sum

16.58% 15.07% 16.87% 5.80% 6.15%  N 10 10 7 3 3  

John Morrell

% of Total Sum

5.19% 4.72% 7.53%      N 3 3 3      

Oscar Mayer

% of Total Sum

27.62% 21.07% 25.73% 13.79% 8.57%  N 15 13 10 4 3  

Others % of Total Sum

28.95% 35.78% 24.10% 43.96% 61.40% 100.00%

N 13 17 6 12 15 6Wright Brand

% of Total Sum

9.62% 13.67% 13.93% 26.00% 13.38%  N 3 5 3 4 1  

Total % of Total Sum

100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

N 53 56 36 30 29 6

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

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

brands

Private Label- Recommendations Recommendation for Wal-Mart

Keep Great Value Bacon High sales Comparable margins

Bacon brings smiles to everyone’s*

faces!

*Except for vegetarians, vegans, and those of the Islamic or Jewish faith.

Thank you!

Any questions?