item $ item buyers item penetration % repeat buyers % item on deal gin 369,201.64,040.45.987.326.7...
TRANSCRIPT
L
Gin—Spring 2012Daniel Frazier Maddie Griffith
Category Definition
Total category sales: $369,201,600
2007 sales: $138,739,800
Average % item on deal: 18.2%
Not highly penetrated
Supplier has control of category
No private label available
Strong national brands
Many small “unique” suppliers
Ad Hoc Base
Item $ Item Buyers
Item Penetrati
on
% Repeat Buyers
% Item on Deal
Gin369,201
.6 4,040.4 5.9 87.3 26.7
Beefeater 53,985.3 354.6 .3 36.5 15.5
Bombay 11,944.1 144.4 .1 34.9 31
Bombay Sapphire 39,146.7 490.1 .4 25.6 27.5
Seagram’s 45,116.9 761.5 .7 44.7 66.3
Tanqueray 52,829.1 763.5 .7 35 59.1
Audit ResultsStore Total SKUs Unique SKUs
Crossover Liquor 62 6
The Spirit Shop 43 6
Weddington Liquor 42 -
Friendly’s Liquor 34 1
Dickson St. Liquor 32 -
The Stellar Cellar(Memphis, TN)
33 4
Cork & Bottle(Little Rock, AR)
29 1
The Little Brown Jug(Pine Bluff, AR)
18 -
Total Number of SKUs in Audit: 100
Demographics Income above $70,000
2-member households
No female head
Empty nesters
Senior citizens
Demographics Income above $100,000
2-member households
No female head
Affluent suburban spread
Established couples
Professional and managerial employees
Demographics Income above $70,000
2-member households
No female head
Affluent suburban spreads
Senior couples
Established couples
Professional and managerial employees
Demographics Income below $50,000
Struggling urban cores
Childless younger families
Empty nest couples
African American (non-Caucasian)
Female & non-female head households
Not employed
Manufacturer Dickson St.
Cork & Bottle
Crossover
Weddington
Stellar Cellar
GMSKUsFacing
38.71%4
12.5%
27.94%5
16.1%
24.41%7
15.3%
17.82%8
19.0%
18.14%4
12.5%
GMSKUsFacing
19.90%3
9.4%
14.88%3
12.9%
18.98%5
8.3%
19.65%3
7.1%
17.7%3
9.4%
GMSKUsFacing
39.56%6
18.8%
40.44%4
12.9%
31.45%5
11.1%
42.43%4
9.5%
26.86%4
12.5%
GMSKUsFacing
33.53%4
12.5%
37.36%3
6.5%
35.97%6
8.3%
25.90%3
7.1%
32.74%3
9.4%
Category Scorecard
Gross Margin Evaluation
Bombay Sapphire has highest gross margins overall 200 mL: 57% 750 mL: 45% 1 L: 45%
Tanqueray has interesting gross margins 200 mL: 54% 375 mL: 47%
Gross Margin Evaluation
750 mL sizes had consistently higher gross margins Spruce Road Spirits: 62% Tanqueray #10: 58% Hendricks: 56% Corsair: 50%
Category is Cash Machine: High gross margins Medium sales volume
Competing Brands & Private
Labels Very strong national brands with loyal
customers in segmented markets 5 biggest brands account for 60% of gin
sales
No private label products in this region
Supplier has control over retailer; no outlet for leveraging this control
Suggestions for Retailer
High gross margins
Increased category sales
Stock fewer SKUs Reduced depth ≠ increased sales, but is an
opportunity for higher gross margins Leading brands are close substitutes
MAINTAIN!