Download - DelMonte Pet Treats Category Review
Roundy’s and Del-MonteRoundy’s and Del-MonteBusiness OpportunitiesBusiness Opportunities
Mark Jutton
Kristin Harris
Jennifer Hayward
Ryan Lontka
Cecilia Mayora
Bart Grochowski
Kamila Mikula
Presentation AgendaPresentation Agenda
Industry OverviewMacro Trends and Vocabulary Category Definition and Role Category Assessment Category Scorecard Category Strategy In-Store Approach Recommendation and Summary
Industry at a GlanceIndustry at a Glance
• 71.4 million Households have pets• 5.2 million more by 2015• 80% will come from empty-nesters• Recession Proof
• “Better for you” products are attractive to health conscious buyers
• $ Sales grew 61% vs. total dog treats• However, only 25% of dog treat shoppers buy health treats
Almost half of all dog
homes have small dogs
Almost half of all dog
homes have small dogs
Industry VocabularyIndustry Vocabulary
Dog treat category is emotional•consumer different than the shopper
Shopper - makes purchase
Consumer - dog and cat
QuickTime™ and a decompressor
are needed to see this picture.
Macro TrendsMacro Trends
5.4%
13.0%
5.0%
3.2% 6.5% 2.1%
2007 2008 2009
Pet FoodDry Grocery
• Feeding pets is non-discretionary for pet parents
• People willing to give up own food and medicine for pets
Category RoleCategory Role
• Convenient for shoppers at grocery
• Too many products for shopper concentration
• Treats have opportunity to drive pet category
• Opportunity to sell treats and food together
• Heavy buyers purchase $110 vs others’ $12
• Heavy buyers = only 20% of shoppers
• 70% total dollar sales
Pet Treat SalesPet Treat Sales
• To win in dog, must win in treats
• Profitability of treats carries over into dog category
• Lose in dog treats = low category growth
Consumer Decision TreeConsumer Decision Tree
Biscuits Soft & Chewy
Dog Snacks
Long Lasting
Form Size
Package Size
Brand
Form Size
Package Size
Brand
Package Size
Form(Sticks,Strips, A/O)
Brand
Roundy’s Current Decision Tree
Recommended Decision Tree
Who are your Customers?Who are your Customers?
Roundy’s Market ShareRoundy’s Market Share
•Roundy’s •Pet Dog Market Share (52 weeks): 38.9%•Growth in share of 1.3 share points•Share point value: $465,005
Roundy’s SalesRoundy’s Sales
•Roundy’s •Pet Dog total dollar sales volume was down 1.9%
•Loss of $343,865•ROM also experienced decrease of 7% in sales volume.
•Loss of $2,141,041
Pet Treats ACV & % of SalesPet Treats ACV & % of Sales ACV
Volume
% of ACV
% of
Volume
13
Week52
Week13
Week52
Week
13 Week
52 Week
13 Week 52 Week
Del Monte$349,855
$1,194,461
111,237
396,602
Del Monte
30.20%
27.23% 32.30% 30.02%
Roundy's$35,43
1$111,26
315,73
845,297 Roundy's 3.06% 2.54% 4.57% 3.48%
P&G $4,438 $71,272 1,602 24,155 P&G 0.38% 1.62% 0.47% 1.83%
Nestle$355,942
$1,389,100
108,258
435,348
Nestle29.00
%31.67% 31.44% 32.95%
Mars$141,8
57$463,10
440,14
8133,26
9Mars
12.25%
10.56% 11.66% 10.09%
VMG$82,73
0$293,93
021,77
672,654 VMI 7.14% 6.70% 6.32% 5.50%
SUMITOMO
$58,145
$239,704
14,648
62,122SUMITO
MO5.02% 5.46% 4.25% 4.70%
Other$22,63
7$93,416 2,260 29,407 Other 1.95% 2.13% 0.66% 2.23%Del-Monte
the
13 Week Winner!
Strong Brand Growth
13 Week Trends13 Week Trends
Sales% Chg vs. YAG
Market Share
Pt Chg vs. YAG
Opportunity /
SurplusSales
% Chg vs. YAG
DEL MONTE FOODS 349,851 -15.6% 53.8% -4.2 -16,538 300,743 0.2%
NESTLE HOLDINGS INC
335,931 -11.5% 57.4% -1.2 6,207 249,556 -7.0%
MARS INCORPORATED
156,751 19.3% 67.0% 0.3 25,050 77,109 17.8%
CTL BR 44,969 494.5% 45.2% 36.1 -11,062 54,525 -28.0%
VMG PARTNERS 22,217 337.8% 77.7% 14.1 6,118 6,370 119.8%
PROCTER GAMBLE 19,168 -15.3% 65.8% 1.2 2,756 9,974 -19.6%
SUMITOMO 15,334 14.3% 78.8% -3.3 4,371 4,133 41.1%
Big Improvement in Private Label &
Waggin Train showing tremendous growth
52 Week Trends52 Week Trends
Sales% Chg vs. YAG
Market Share
Pt Chg vs. YAG
Opportunity /
SurplusSales
% Chg vs. YAG
DEL MONTE FOODS 1,421,574
-6.8% 54.9% -0.1 -29,3691,167,30
7-6.3%
NESTLE HOLDINGS INC
1,345,194
-5.0% 56.8% -1.0 16,8971,024,85
3-1.1%
MARS INCORPORATED
528,582 -16.7% 67.3% 4.6 88,654 256,371 -32.0%
CTL BR 175,835 -20.0% 43.3% -1.9 -51,801 230,330 -13.5%
PROCTER GAMBLE 72,066 -26.8% 62.1% -1.6 7,049 43,942 -21.4%
VMG PARTNERS 67,789 480.0% 82.7% 17.7 21,841 14,194 125.5%
SUMITOMO 56,723 211.4% 78.5% 1.8 16,245 15,500 180.3%
HUGE Growth for Waggin Train and
Hartz
RecommendationsRecommendations
Section 1
Hard Treats
Brand
Size
Section 2
Chewy Treats
Brand
Size
Section 3
Health Treats
Brand
Size
•Delete unproductive items and focus on category drivers
• Arrange products in Sections by:
FORM
BRAND SIZE
Current PlanogramCurrent Planogram
Proposed PlanogramProposed Planogram
Blade RecommendationBlade Recommendation
BISCUITS
SOFT
&
CHEWY
HEALTH
&
NUTRI
ENTS