energy drinks morgan plumlee and elizabeth monnig
TRANSCRIPT
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Energy DrinksMorgan Plumlee and Elizabeth Monnig
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Overview
Supplier in control ◦Red Bull leading brand◦Private label not common in most retailers
Retailer in control◦Target has an Archer Farms energy drink◦Only retailer with a private label
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Audits
Fayetteville SpringdaleWalgreens Joyce KmartWalgreens School
Walgreens 6th Street RogersWalmart 6th Street Neighborhood MarketIGA TargetTargetHarps Garland
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Depth
70 SKUs found in our auditWalgreens has the mostWalmart had fewest
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Demographics
Income◦Between $30,000-$50,000
Age FH◦35-44
Household Size◦3-4 members
Education FH◦Some college
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Demographics
Item Penetration
% item $ on deal
$ share # of raw buyers
Item buyers
Item $
Monster 2.9 10.2 2.0 1281 3416.8 94,656.8
Red Bull 2.8 8.5 3.7 1,227.0 3,236.4 170,066.6
Rockstar 1.4 21.4 0.6 578 1,597.6 26,430.7
Amp 1.8 14.3 0.5 726 2,081.6 20,945.8
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Display Space
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Display Space
Red Bull◦Premium Price◦Not found at every store◦50% display space at Walmart and 44% display
space at TargetMonster
◦Majority of display space in most retailers◦Around 34%◦Most SKUs found
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SKUs
Every Store◦Monster◦Amp◦Rockstar
Market Stocking Rate◦Red Bull 56.7%◦Amp 50%◦Monster 42.8%◦Rockstar 38%
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Gross Margins by Supplier
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Gross Margins by Supplier
Red Bull◦Lowest gross margins because it is the leading
brandAmp
◦Highest gross marginsPrivate Label
◦Target’s private label has 66% gross marginsWalmart
◦Lowest gross margins out of all the retailers
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Gross Margins by Facings
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Private Labels
Energy drinks is not a popular category for Private Labels
Target is the only retailer with a Private Label energy drink
Gross Margin is around 66%
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Private Label
We do not expect private labels to increase in this category.
Target is the only retailer we feel will be successful with a private label because of their previous success with the Archer Farms brand
In fall 2008, there were only 47 SKUs and no private label
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Private Label
Walmart◦Increase emphasis on national brands◦Do not have very many SKUs available in
grocery section◦Not a leading retailer in this category