ARTIFICIAL SWEETENERSMarketing 4443, Caitlin Murad

Slide A A.C. Nielsen Product Snapshot

TOTAL SUGAR SUBSTITUTES (SUGAR, SWEETENERS) CT. Total Dollars BehaviorScape Framework

      LifeStyle

BehaviorStage Cosmopolitan Centers

Affluent Suburban Spreads

Comfortable Country

Struggling Urban Cores

Modest Working Towns Plain Rural Living Total

Start-Up FamiliesHHs with Young Children Only < 6 68 66 91 55 63 70 69

Small Scale FamiliesSmall HHs with Older Children 6+ 79 83 115 66 91 90 89

Younger Bustling FamiliesLarge HHs with Children (6+), HOH <40 46 116 66 50 60 77 71

Older Bustling FamiliesLarge HHs with Children (6+), HOH 40+ 95 122 95 86 91 113 103

Young TransitionalsAny size HHs, No Children, < 35 73 65 60 33 86 64 64

Independent Singles1 person HHs, No Children, 35-64 69 69 70 83 87 88 79

Senior Singles1 person HHs, No Children, 65+ 82 69 85 75 89 90 83

Established Couples2+ person HHs, No Children, 35-54 116 123 131 109 110 114 118

Empty Nest Couples2+ person HHs, No Children, 55-64 136 132 134 168 141 151 142

Senior Couples2+ person HHs, No Children, 65+ 148 137 158 160 149 156 151

Total 93 104 108 83 99 107 100

Source: Spectra BehaviorScape: Total Dollars/Spectra 2013 Nov (Spectra)/Homescan Product Library              

Slide B Demographics of the Brands

  Equal Splenda SweetNLow Private LabelDemographic Variables % Total $ Index % Total $ Index % Total $ Index % Total $ Index

Race of Head of Household                

White 60.8% 88 68.5% 99 79.0% 114 78.4% 113

Black 17.8% 148 12.7% 106 7.2% 60 9.0% 75

Hispanic 17.1% 138 14.7% 119 10.3% 84 9.5% 77

Asian 1.9% 43 2.0% 46 1.6% 37 1.1% 26

Other 2.5% 115 2.2% 100 1.9% 87 1.9% 87

Household Income                

Under $10,000 5.3% 67 6.0% 76 8.6% 108 9.6% 121

$10,000 - $19,999 12.0% 103 9.7% 84 13.0% 112 14.2% 122

$20,000 - $29,999 9.4% 83 9.8% 86 13.0% 114 13.1% 116

$30,000 - $39,999 11.7% 111 10.5% 100 10.8% 103 10.5% 99

$40,000 - $49,999 7.5% 81 9.5% 102 10.6% 114 10.0% 108

$50,000 - $74,999 17.7% 98 17.9% 99 17.9% 99 16.8% 93

$75,000 - $99,999 11.6% 99 12.8% 109 11.5% 98 10.6% 90

$100,000 - $149,999 16.3% 143 15.3% 134 9.1% 80 8.9% 78

$150,000 or More 8.5% 105 8.5% 106 5.7% 70 6.4% 79

Slide C Assigning a Role to the Category

Slide D Category Assessment: Store Audited

Store Location SKUs Unique SKUs*

Supercenter MLK Blvd (6th) 72 25

Walgreens Township 12 9

Harp’s Wedington 51 33

Target Fayetteville 10 8

ALDI MLK Blvd (6th) 9 4

Complete Audit 154 79

Slide E Category Scorecard: SPSS Share of Display

ManufacturerWMTMLK

FacingWGTWN Facing

HARP Facing

TARGET Facing

ALDI Facing

Cumberland Packaging Corp.

% of Total Sum 4.2% 8.3% 15.7% 10.0%  N 2 1 5 1  

McNeil Nutritionals

% of Total Sum 45.8% 33.3% 27.5% 20.0%  N 9 2 8 2  

Parve % of Total Sum 8.3% 16.7% 19.6% 40.0%  N 3 2 7 3  

Private Label % of Total Sum 9.7%   13.7%   100.0%N 3   5   4

Total % of Total Sum 100.0% 100.0% 100.0% 100.0% 100.0%N 25 9 33 8 4

In Store Example: Harps Share of Display

Slide F Category Scorecard: SPSS % Gross Margin Dollars

ManufacturerWMT-GM$

WGTWN-GM$

HARP-GM$

TARGET-GM$ ALDI-GM$

Cargill, Inc. % of Total Sum 14.3% 10.7% 28.6% 6.8%  Mean 1.6 0.2 0.6 0.4  N 4 2 2 3  

Cumberland Packaging Corp.

% of Total Sum 4.6% 3.5% 3.0% 12.4%  Mean 2.12 0.12 0.12 0.43  N 1 1 1 5  

McNeil Nutritionals

% of Total Sum 52.7% 40.1% 3.8% 25.9%  Mean 2.67 0.70 0.08 0.56  N 9 2 2 8  

Parve % of Total Sum 8.5% 13.0% 64.7% 25.9%  Mean 1.30 0.23 0.86 0.64  N 3 2 3 7  

Private Label % of Total Sum 3.9%     16.2% 100.0%Mean .59     .56 .88N 3     5 4

Total % of Total Sum 100.0% 100.0% 100.0% 100.0% 100.0%Mean 1.82 0.39 0.50 0.52 0.88N 25 9 8 33 4

Slide G Category Scorecard: Mean % Gross Margins

Manufacturer WMT-GM%WGTWN- GM

% HARP- GM%TARGET-

GM% ALDI-GM%Cargill, Inc. N 4 2 2 3  

Mean 53.20% 18.50% 31.40% 21.90%  % of Total Sum 17.00% 16.00% 22.20% 6.70%  

Cumberland packaging corp.

N 2     5  Mean 11%    24.10%  % of Total Sum 1.80%     12.20%  

Cumberland Packaging Corp.

N 1 1 1    Mean 70.67% 12.00% 12.00%    % of Total Sum 5.70% 5.20% 4.20%    

McNeil Nutritionals N 9 2 2 8  Mean 57.10% 35.10% 7.40% 31.40%  % of Total Sum 41.10% 30.40% 5.20% 25.50%  

Parve N 3 2 3 7  Mean 57.20% 22.50% 64.30% 32.20%  % of Total Sum 13.70% 19.50% 68.30% 22.90%  

Private label N 2        Mean 76.64%        % of Total Sum 12.30%        

Total N 25 9 8 33 4Mean 50.00% 25.60% 35.30% 29.90% 38.50%% of Total Sum 100.00% 100.00% 100.00% 100.00% 100.00%

Slide H Roll out the Plan: Recommendations

DemographyReference 2 mile Ring 3 mile Ring

% HHs HHs Index % HHs HHs Index % HHs HHs Index

Race            

White (Non-Hispanic) 71.3% 100 74.4% 104 73.4% 103

Black (Non-Hispanic) 11.4% 100 7.3% 64 10.0% 87

Hispanic 11.2% 100 6.2% 55 7.0% 62

Other (Non-Hispanic) 6.0% 100 12.2% 202 9.7% 161

Householder Income            

Under $10,000 7.6% 100 21.5% 283 21.1% 277

$10,000 - $19,999 9.6% 100 19.6% 205 20.6% 215

$20,000 - $29,999 10.4% 100 16.0% 154 17.0% 164

$30,000 - $39,999 10.4% 100 9.9% 94 11.7% 112

$40,000 - $49,999 9.8% 100 9.0% 91 9.0% 92

$50,000 - $74,999 19.5% 100 13.2% 67 11.1% 57

$75,000 - $99,999 12.5% 100 5.3% 42 4.3% 35

$100,000 or More 20.1% 100 5.6% 28 5.0% 25

Slide I Category Review: Changes in Category, Prior Audits

Fall 2013 Spring 2013

ManufacturerWMTMLK Facing

WGTWN Facing

HARP Facing

TARGET Facing

ALDI Facing

Harps Facings

WGT Coll Facing

WG Sch Facing

WMLK facings

Tgt Facings

Cumberland Packaging Corp.

% of Total Sum

4.20% 8.30% 15.70% 10.00%   12.3% 10.0% 11.1% 6.2% 16.7%

N 2 1 5 1   6 1 1 3 1McNeil Nutritionals

% of Total Sum

45.80% 33.30% 27.50% 20.00%   24.6% 40.0% 33.3% 40.7% 16.7%

N 9 2 8 2   11 4 3 12 1Parve % of

Total Sum

8.30% 16.70% 19.60% 40.00%   22.8% 20.0% 22.2% 13.3% 33.3%

N 3 2 7 3   10 2 2 8 1Private Label

% of Total Sum

9.70%   13.70%   100.00% 15.8% 10.0% 11.1% 18.6%  

N 3   5   4 5 1 1 5  Total % of

Total Sum

100.00% 100.00% 100.00% 100.00% 100.00% 100.0% 100.0% 100.0% 100.0% 100.0%

N 25 9 33 8 4 41 10 9 37 5