bags of tea audit project
DESCRIPTION
Bags of Tea Audit Project. Rebecca Elliott Spring 2010. Supplier is in control of the tea market Strong Brands, Low Private Label. Leading Brand Demographics. Lipton Income: $20,000-$99,999 (pretty even) Household Members: +5 members Age: 35-65+ (pretty even) Race: Caucasian. - PowerPoint PPT PresentationTRANSCRIPT
Bags of TeaAudit Project
Rebecca ElliottSpring 2010
Supplier is in control of the tea market
Strong Brands, Low Private Label
Leading Brand Demographics
Lipton
Income: $20,000-$99,999 (pretty even)
Household Members: +5 members
Age: 35-65+ (pretty even)
Race: Caucasian
Private Label Demographics
Private Labels
Income: less $20,000-$49,999 (highest in $20,000)
Household Members: 3-4, +5 (pretty even)
Age: 45-54 (highest)
Race: Caucasian
Importance of Depth
SKUs: 101
WalMart- Joyce: 59
Target: 38
Harps- Weddington: 35
Walgreens- 6th: 6
Walgreens- School: 7
Importance of Depth
Does store depth seem to follow a store location’s trade area demographics?
No, Walgreens tend to be more expensive in price compared to Walmart, and they have at least twice as many SKUs.
WMSCJ-GM
WMSCJ-F MEAN N
1 0.35 15
2 0.231 27
3 0.378 3
4 0.35 6
5 0.311 2
6 0.308 4
8 0.364 2
TOTAL 0.294 59
TRGT-GM
TRGT-F MEAN N
1 0.255 33
2 0.421 5
TOTAL 0.277 38
WLGR6-GM
WLGR6-F MEAN N
1 0.473 4
2 0.413 2
TOTAL 0.453 6
Importance of Depth
Appropriate Role: Maintain/Grow
Sales Volume: $628,502,000
Household Penetration: 46.2
% Item Sold on Deal: 21.2%
Strength of Leading/Competing Brands
Dominate Brand: Litpon
Share of Facings by Manufacturer
WalMart: 55.9%
Target: 41.9%
Harps: 42.5%
Walgreens-6th: 50.0%
Walgreens-School: 50.0%
Strength of Leading/Competing BrandsFacings
N Percent N Percent N Percent
WMSCJ-FMANUFACTURE
S59 58.4% 42 41.6% 101 100%
TRGT-FMANUFACTURE
S38 37.6% 63 62.3% 101 100%
HRPSW-FMANUFACTURE
S35 34.7% 66 65.3% 101 100%
WLGR6-FMANUFACTURE
S6 5.9% 95 94.1% 101 100%
WLGRS-FMANUFACTURE
S7 6.9% 94 93.1% 101 100%
MANUFACTURES
WMSCJ-F TRGT-F HRPSW-F WLGR6-F WLGRS-F
AWG BRANDS% OF TOTAL
N14.9%
% TOTAL SUM 11.4%
CAIN’S INC.% OF TOTAL
N7.2%
% TOTAL SUM 3.4%
CELESTIAL% OF TOTAL
N6.6% 18.6% 4.6%
% TOTAL SUM 8.5% 21.1% 5.7%
GOOD EARTH% OF TOTAL
N2.3%
% TOTAL SUM 5.7%
LEYENDAS% OF TOTAL
N0.7%
% TOTAL SUM 1.7%
NATIONAL CUP% OF TOTAL
N2.6%
% TOTAL SUM 1.7%
R.C. BIGELOW% OF TOTAL
N7.2% 11.6% 5.7% 50% 50%
% TOTAL SUM 10.2% 13.2% 11.4% 50% 57.1%
REILY FOOD CO% OF TOTAL
N5.9% 11.6% 17.2%
% TOTAL SUM 6.8% 7.9% 11.4%
SALADA% OF TOTAL
N2.3%
% TOTAL SUM 5.7%
TARGET% OF TOTAL
N4.7%
% TOTAL SUM 5.3%
TAZO INC% OF TOTAL
N2.0% 11.6%
% TOTAL SUM 3.4% 10.5%
TETLEY COMP% OF TOTAL
N4.6%
% TOTAL SUM 2.9%
STASH TEA% OF TOTAL
N3.4%
% TOTAL SUM 8.6%
TWININGS% OF TOTAL
N2.3%
% TOTAL SUM 5.7%
UNILEVER% OF TOTAL
N55.9% 41.9% 42.5% 50% 50%
% TOTAL SUM 57.6% 42.1% 31.4% 50% 42.9%
WALMART% OF TOTAL
N11.8%
% TOTAL SUM 6.8%
TOTAL% OF TOTAL
N100% 100% 100% 100% 100%
% TOTAL SUM 100% 100% 100% 100% 100%
Bags of Tea Facings
Strength of Leading/Competing Brands
Gross Margins consistent with your “role” for the category?
Yes
Importance of DepthGross Margins
N Percent N Percent N Percent
WMSCJ-GMMANUFACTURES 59 58% 42 41.6% 101 100%
TRGT-GMMANUFACTURE
S38 37.6% 63 62.4% 101 100%
HRPSW-GMMANUFACTURE
S35 34.7% 66 65.3% 101 100%
WLGR6-GMMANUFACTURE
S6 5.9% 95 94.1% 101 100%
WLGRS-GMMANUFACTURE
S7 6.9% 94 93.1% 101 100%
MANUFACTURES
WMSCJ-GM TRGT-GM HRPSW-GM WLGR6- GM WLGRS-GM
AWG BRANDS MEAN 0.550
N 4
CAIN’S INC. MEAN 0.419
N 2
CELESTIAL INC. MEAN 0.197 0.273 0.390
N 5 8 2
GOOD EARTH COMP.
MEAN 0.490
N 2
LEYENDAS INC. MEAN 0.329
N 1
NATIONAL CUP MEAN 0.275
N 1
R.C. BIGELOW, INC.
MEAN 0.159 0.139 0.264 0.398 0.398
N 6 5 4 3 4
REILY FOOD COMP.
MEAN 0.417 0.341 0.462
N 4 3 4
SALADA MEAN 0.338
N 2
TARGET MEAN 0.447
N 2
TAZO INC. MEAN 0.648 0.445
N 2 4
TETLEY COMPANY
MEAN 0.298
N 1
THE STASH TEA COMP.
MEAN 0.095
N 3
TWININGS & COMP
MEAN 0.446
N 2
UNILEVER MEAN 0.276 0.248 0.381 0.508 0.508
N 34 16 11 3 3
WALMART MEAN 0.397
N 4
TOTAL MEAN 0.294 0.277 0.377 0.453 0.445
N 59 38 35 6 7
Bags of Tea GM
Strength of Leading/Competing Brands
SKU found in every store: Lipton Hot or Cold 48 pacK
Private Label Opportunities
Private labels are not very strong in this category.
Stores that carry private labels:
Harps (Best Choice): margins around 60%
Walmart (Great Value): around 45%
Target (Market Pantry): around 40%
Private Label
Private Label SKUs: 10
Total SKUs: 101
Private labels make up less than 1% of the total SKUs
Private Label Opportunities
Walmart, Target and Harps carry private label brands, but I would not say they are really committed to them. While Walgreens, doesn’t carry any private labels at all.
Private Label Opportunities
Private Labels are going to have a decreasing presence in this category
Although margins are good, Brand Names have to much power in the category. Lipton takes up half of shelve space.
Tea is an inexpensive product, which means having a private label, known for their low prices, would have little effect on the customers decision. Might as well by a well known tea like Lipton.
Private Label Opportunities
Recommendation for: Walmart
I would recommend that Walmart increase their emphasis on national brands. Although, private label have decent margins, the national brands, especially Lipton, dominate this category.
Because it is such an inexpensive item, buying private labels will not save the customer. Might as well get the well-known brand.