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Category Audit StoreLocationSKUs Unique SKUs Wal-MartMLK Blvd (6 th )52 42 WalgreensSchool9 1 Harp’sFiesta Square6 0 AldiCollege10 Marvin’s IGALafayette8 1 Complete Audit69 54 Only 7 Brands/Manufactures found plus 2 private label. 5 stores were audited
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Granola Bars
Fall, 2011Aaron Buffington
Overview Suppliers are in control Nature Valley and Quaker
dominate Few private label Evidence of Supplier Category
Management Facing don’t go down with lower
margins Brands are kept together
Category Audit
Store Location SKUs Unique SKUs
Wal-Mart MLK Blvd (6th) 52 42
Walgreens School 9 1
Harp’s Fiesta Square 6 0
Aldi College 10 10
Marvin’s IGA Lafayette 8 1
Complete Audit 69 54
• Only 7 Brands/Manufactures found plus 2 private label.
• 5 stores were audited
Category Demographics Large household High income Young members and kids Early stages of the family life cycle
Category DemographicsAnnual Income
CASCADIAN FARM - GRANOLA & YOGURT BARS
KASHI - GRANOLA & YOGURT BARS
NAT VAL - GRANOLA & YOGURT BARS
QUAKER - GRANOLA & YOGURT BARS
QUAKER CHEWY - GRANOLA & YOGURT BARS
QUAKER CHEWY DIPPS - GRANOLA & YOGURT BARS
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
INC - <$20,00063.6 32.1 36.8 42.3 44.0 78.0
INC - $20,000-29,99928.9 42.2 67.1 62.0 62.6 75.7
INC - $30,000-39,99970.4 59.8 79.6 73.2 85.2 106.2
INC - $40,000-49,99973.1 92.9 92.8 93.4 103.5 118.1
INC - $50,000-69,999179.3 85.5 117.8 113.1 107.9 112.9
INC - $70,000-99,999105.6 182.2 123.1 137.0 140.0 136.9
INC - $100,000+141.6 173.4 161.9 156.3 143.5 80.9
Category DemographicsAge and Member Size
SIZE - 1 MEM 58.3 60.7 50.9 37.9 42.3 52.8
SIZE - 2 MEM 88.8 136.0 122.8 70.8 68.4 66.5
SIZE - 3-4 MEM 149.3 103.5 118.0 152.0 147.4 152.5
SIZE - 5+ MEM 95.1 77.0 99.8 192.6 202.4 167.4
AGE FH - UNDER 35 222.7 103.6 74.4 167.5 164.8 178.4AGE FH -
35-44 118.2 117.5 121.1 173.5 164.5 155.3AGE FH -
45-54 107.3 132.0 121.1 114.4 106.9 86.4AGE FH -
55+ 35.6 72.2 94.1 58.9 54.2 83.8AGE FH -
55-64 43.9 102.0 109.4 72.1 63.4 82.1AGE FH -
65+ 27.2 41.7 78.5 45.4 44.9 85.5
CASCADIAN FARM - GRANOLA & YOGURT BARS
KASHI - GRANOLA & YOGURT BARS
NAT VAL - GRANOLA & YOGURT BARS
QUAKER - GRANOLA & YOGURT BARS
QUAKER CHEWY - GRANOLA & YOGURT BARS
QUAKER CHEWY DIPPS - GRANOLA & YOGURT BARS
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
Category DemographicsKids and Life Stage
CASCADIAN FARM - GRANOLA & YOGURT BARS
KASHI - GRANOLA & YOGURT BARS
NAT VAL - GRANOLA & YOGURT BARS
QUAKER - GRANOLA & YOGURT BARS
QUAKER CHEWY - GRANOLA & YOGURT BARS
QUAKER CHEWY DIPPS - GRANOLA & YOGURT BARS
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEX
DOLLAR VOLUME INDEXKIDS - NONE
< 18 79.0 102.2 98.3 60.3 60.0 60.5
KIDS - ANY < 18 139.1 96.0 103.1 173.8 174.3 173.5
KIDS - ANY < 6 150.4 101.5 74.3 185.8 179.6 182.8
KIDS - ANY 6-12 131.2 92.6 93.8 191.0 192.8 180.4
KIDS - ANY 13-17 118.7 89.5 122.0 164.7 181.4 159.6
Category Role Based off of an (item $) of
$1,586,118,100 and relatively high gross margins, the category fits the role of a flagship.
Category Role Category has a penetration of 60%
both nationally and in the West South Central region.
ITEM $ (000) DOLLAR SHARE
ITEM BUYERS (000)
ITEM PENETRATION
DEPT- DRY GROCERY TOTAL U.S. 150,066,179.2 36.5 116,061.4 100.0
WEST SOUTH CENTRAL 15,430,104.8 35.3 12,982.6 99.9
GRANOLA & YOGURT BARS TOTAL U.S. 1,586,118.1 100.0 70,534.5 60.8
WEST SOUTH CENTRAL
160,744.8 100.0 7,814.5 60.1
Dominating Brands Nature Valley and Quaker are
brand leaders Typically have the highest Facings
% and Gross Margin % Even when they have lower GM%,
there is a higher number of facings.
Evidence of supplier control
Dominating Brands Highest stocking rates:
Nature Valley= 28/(16x5) = 35% Quaker = 25/(17x5) = 29% Cliff = 3/(93x5) = 20% Millville (PL) = 10/(10x5) = 20%
No brand was found at every store. Nature Valley and Quaker found at
4 out of 5 stores
Dominating BrandsGross Margins, SKUs, and Facings
Manufacturer Wal-Mart Aldi Walgreens Marvin’s Harps
Nature Valley GM % 37.70% 0.00% 63.20% 68.30% 58.10%
SKUs 12 0 5 8 3
Facing% 23.10% 0.00% 55.60% 57.10% 50.00%
Quaker GM % 11.20% 0.00% 36.80% 22.50% 41.90%
SKUs 14 0 4 4 3
Facing % 26.90% 0.00% 44.40% 28.60% 50.00%
Keebler GM % 2.90% 0.00% 0.00% 9.20% 0.00%
SKUs 2 0 0 2 0
Facing % 3.80% 0.00% 0.00% 14.30% 0.00%
Private Label GM % 7.90% 100.00% 0.00% 0.00% 0.00%
SKUs 5 10 0 0 0
Facing% 9.60% 100.00% 0.00% 0.00% 0.00%
Estimated Gross Margins Gross margins are consistent with
the category’s role Private Label’s absence is
noticeable There is evidence of supplier
control with dominating brands.
Private Label Private label is weak in this
category Wal-Mart and Aldi are the only two
stores carrying PL Aldi is committed to PL with
average to lower then average GM%
Recommendations PL will increase in this category
only if retailer can gain more control
If Retailers remain heavy on national brands, they need to increase assortment.
Walgreens specifically needs to increase merchandising- not enough shelf space for increase in assortment
