Category Management Food Storage

By:

Taylor Armour, Paul Perez,

Julia Massey, Nathan Bean

Food Storage

• Category Definition

• Category Role

• Consumer Decision Tree

• Highlights

• Category Sales Results

• Category Shopper Trends

Contents

• Container/Tupperware

• Food Storage Bags

• Saran wrap

• Foil

Food Storage Category Definition

Food Storage Category Role: Occasional

• Food Storage is an OCCASIONAL purchase

• Food Storage is something that people purchase when they need it

• Food Storage has an impact when its on sale

• Food Storage can impact buyers to buy other items that are in the aisle

Food StoragePurchase Decision Making

Type (Container, Bag, Foil, Wrap)

Size

Price

Brand

• 72.4% of household buyers purchase Food Storage from Meijer

• On average, $3.55 is spent on Food Storage per shopping trip ($13.68 a year)

• 41.2% of Food Storage purchases involved a consumer perceived deal

Highlights for Food Storage

Share of Wallet for Food Storage by Channel

59.5%

15.5%9.7%

7.4%4.4%

0%

20%

40%

60%

The Grocery channel had the most food storages purchases, and gained a .70 increase over the past year

Source: Homescan Roadmaps Shopping Behavior. Report 15- Where are my shoppers dollars within the

competitive set? 12/20/14

Change in Share of Wallet for Food Storage by Channel

Grocery

Supercenters

Warehouse Clubs

Dollar Stores

Mass Merchants

.7

.9

1.5

-.2

-.7

Source: Homescan Roadmaps Report 1: What are the current outlet shares and trends- 8/04/12

Warehouse Clubs gained 1.5 shares over the past year

Share of Wallet for Food Storage by Retailer

45%

23.6%

6.3% 5.2% 3.8% 3.4% 3.1% 1.1%

Source: Homescan Roadmaps Shopping Behavior. Report 15- Where are my shoppers dollars going within

the competitive set? 12/20/14

Change in Share of Wallet for Food Storageby Retailer

Meijer

Walmart

Sam’s

Spartan

Family Fare

Dollar Tree

Dollar General

1.6

.9

1.6

-.5

-.8

.2

.2

Sam’s, Meijer, and Wal-Mart all gained market share over last year

Source: Homescan Roadmaps Report 1: What are the current outlet shares and trends- 8/04/2012

Buyer Conversion for Food Storage by Channel

84%

40.2% 35.2%

18.5% 18.5%

The Grocery Channel converts 84% of their customers

Source: Homescan Roadmaps Shopper Loyalty & Conversion. Report 3- Where are the product

opportunities among my shoppers? 12/20/14

Buyer Conversion for Food Storage by Retailer

74.3%

39.5%34.2%

32.5%

21.8%

Source: Homescan Roadmaps Shopper Loyalty & Conversion. Report 3- Where are the product

opportunities among my shoppers? 12/20/14

Annual Shopping Trips for Food Storageby Channel

4.4

3

2.5

1.7

1.6

Shopping trips for supercenters have increased the most

Shopping trips for Mass Merchants decreased the most

Source: Homescan Roadmaps Shopping Behavior. Report 5- Are Shopping Trips up or down across

outlets? 12/20/14

Annual Shopping Trips for Food Storage by Retailer

4.1

3 2.9

2

1.5

Source: Homescan Roadmaps Shopping Behavior. Report 5- Are Shopping Trips up or down across

outlets? 12/20/14

Annual Dollars Spent per Buyer in the Food Storage Category by Channel

$23.13

$15.29

$13.42

$7.47

$6.07

Warehouse Clubs Gained +$3.97 over the last year

Source: Homescan Roadmaps. Report 4- Is Shopper Spending up or down across outlets? 12/20/14

Annual Dollars Spent per Buyer in the Food Storage Category by Retailer

$21.55

$13.90 $13.62

$12.25 $12.18

$5.61$4.36

Meijer’s annual dollars spent is down -$0.19

Wal-Mart increased +$5.56

Source: Homescan Roadmaps. Report 4- Is Shopper Spending up or down across outlets? 12/20/14

Dollars Spent Per Trip for Food Storageby Channel

$14.12

$4.51 $4.44 $3.49

$2.40

Over the last year, Warehouse Clubs have seen a +$2.00 increase

Source: Homescan Roadmaps. Report 6- Is spending per trip up or down across outlets? 12/20/14

Dollars Spent Per Trip for Food Storage by Retailer

$3.41$4.54

$4.15

$13.91

$2.85

Source: Homescan Roadmaps. Report 6- Is spending per trip up or down across outlets? 12/20/14

Food Storage

Segment Overview

Segment Contribution to Food Storage

Brand Segments Contribution to Category Sales

35%

40%

15%

10%

100%

Containers

Food Storage Bags

Foils

Plastic Wraps

Total

Source: Nielsen Answers Dashboard Category Performance- 52 W/e 9-17-13

Food Storage Segment Performance Most Recent 52 Weeks

DOLLAR SALES VS YAG Foils

Food Storage Bags Containers Wraps

Meijer 21% 20% 7.20% 10.4%

-0.5 -0.4 +0.6 -0.9

RM 22.6% 20.4% 5.3% 9.9%

+0.1 +0.1 -0.5 +0.2

Source: Nielsen Answers Dashboard Category Performance- 52 w/e 9-17-14

Food Storage Brand Overview

Brands Contribution to Sales

Brands % of Dollar Sales

All Other

1.4%

47.4%

23.0%

14.3%

8.7%

5.2%

Fair Share Index & OpportunityBy Food Storage Segment

Total Food

Storage

Aluminum

Foil

Storage

Bags

Snack Bags Freezer Bags Food Wraps Containers

Market

Share

44.6% 42.4% 44.1% 49.3% 40.0% 45.9% 55.7%

Fair Share

Index 115.6

95.1 98.8 110.5 89.7 103.0 125.0

Opportunity

Dollars

$1,333,737 -$104,426 -$23,008 $181,697 -$217,396 $29,601 $148,578

Store Brands Contribution to Sales inFood Storage Category

Source: Nielsen Answers Solutions Roadmaps: Assortment Position Remaining Market Report 4- 52 w/e 3-

15-15

Store Brand Contribution for Food Storage

Store Brand Contribution

Point Change vs YAG

Store Brand Contribution

Point Change vs YAG

Food Storage Category Sales

51.4% 8.0% 7.8% -0.1%

Grocery Category Sales

20.6% 4.0% 0.0% -0.8%

Total Store Sales

20.5% -1.7% 17.3% 1.4%

Source: Nielsen Answers Solutions Roadmaps: Store Brands- Across Products- Report 2- 52 w/e 9-17-13

Brands in Decline forFood Storage Category

Dollar Sales vs. YAG Glad Press 'n Seal Glad Cling Wrap Reynolds

Meijer -9.1% -22.9% -19.1%

RM 27.1% -11.6% -2%

Unit Sales vs. YAG

Meijer -9.2% -22.9% -16.8%

RM 11.7% -13.5% -0.80%

Source: Nielsen Answers Solutions Roadmaps: Category Performance- Volume & Share- Report 1 & 2- 52

w/e 9-17-13

Brand Gainers forFood Storage Category

Dollar Sales vs. YAG Ziploc Reynolds Hefty Saran

Meijer 30.7% 58.6% 29.2% 6.4%

RM -6.7% -7.1% -9.1% 0%

Unit Sales vs. YAG

Meijer 31.8% 108.6% 23% 6.4%

RM -10.5% -7.10% -0.80% 4%


w/e 9-17-13

Meijer’s Market Share By Food Storage Brand

Dollar Salesvs. YAG Meijer Brand

Glad Press N Seal

Glad Cling Wrap Reynolds

Meijer -14.50% -9.10% -22.90% -19.10%

RM 1% 27.10% -11.60% -2.60%

Market Share by Brand 42.80% 38.10% 28.10% 20.20%

-4.1%-2.8%-8.2%-4.1%


Meijer’s Market Share By Food Storage Brand

Dollar Salesvs. YAG Ziploc Reynolds Hefty SaranMeijer 30.7% 58.6% 29.2% 6.4%RM -6.7% -7.1% -9.1% 0%

Market Share by Brand 39.8% 49.3% 44.5% 52.9%

7.7% 13% 8.4% 1.5%


w/e 9-17-13

➢Drop in prices at least once a month for retailer, while remaining market remains constant

➢Meijer held a +44.4% share of dollars and +49.5% share of units in the market. Overall price gap between retailer and RM was (-$0.57)

➢ 6 items suggested for price increase

➢No items recommended for price decrease

Food Storage Pricing Highlights

Average Everyday Shelf Prices on Food Storage

Drop in prices at least once a month for Retailer while RM remained constant.

There are two price spikes in the month of December

Avg Price RetailerAvg Price RM

Source: Nielsen Answers Solutions Roadmap: Pricing Trend Report.Latest 52 w/e 3-28-2015

Top 8 Items Category Sales Rank

Meijer Remaining Market Price Difference

Meijer Brand 1 $2.12 $2.47 $-0.35

Ziploc 2 $3.14 $4.81 $-1.67

Reynolds Wrap 3 $4.15 $4.44 $-0.29

Hefty 4 $2.77 $2.73 $0.04

Glad Press N Seal 5 $2.78 $3.93 $-1.15

Reynolds 6 $2.03 $2.78 $-0.75

Glad Cling Wrap 7 $2.17 $2.74 $-0.56

Saran 8 $2.38 $2.59 $-0.21

Price Differences on Top 8 Food Storage Products

Source: Nielsen Answers Solutions Roadmaps: Pricing Tactics Report 1- 52 w/e 3-28-15

Average Retail Price Gaps on Food Storage

Meijer held a +44.4% share of dollars and +49.5% share of units in the market.Overall price gap between retailer and RM was (-$0.57)

Source: Nielsen Answers Solutions Roadmaps: Pricing Trends Report 4 - 52 w/e 3-28-15

Price Comparisons on Top 10 Items in Importance

Top 10Category Sales

Rank Meijer Wal-Mart Target

Store Brand Foil 12in. 75sq. ft. 1 $2.68 $2.78 $2.78

Reynolds Wrp 12 in. 200 sq. ft. 2 $7.03 $6.97 $8.99

Reynolds Wrp. 75 sq. ft. 3 $3.30 $3.48 $3.69

Store Brand DBLZip Bag 100 ct. 4 $2.19 $2.78 $2.99

Store Brand Foil 200 sql ftl 5 $6.53 $6.48 $6.29

Store Brand Parch. Paper 1 ct. 6 $2.79 $2.69 $2.67

Store Brand DBLZip. Bag 50 ct. 7 $3.89 $4.46 $4.09

Ziploc Bag 38 ct. 8 $4.48 $4.46 $3.99

Glad PressnSeal 70 sq. ft. 9 $2.78 $3.96 $3.49

Store Brand Foil 50 sq. ft. 10 $2.65

Source: Nielsen Answers Solutions Roadmaps: Assortment Position Report 1 - 52 w/e 3-28-15

Price and Market Share Position of Top 200 Items

Market Surplus vs. Category 14 43 2

Market Share Gap vs. Category 7 6 ---

Source: Nielsen Answers Solutions roadmaps: Pricing Tactics- Report 1 -- 4w/e 3-15-15

Share Gap To Category

Avg. Non Promo Price Difference

Reynolds Box oven cooking bag slow cooker liner 4 ct.

11.5 -13.2%

Ziploc easy open sandwich bag 40 count

25.4 -5.4%

Ziploc box 24 count 16.5 -12.9%

Ziploc box 19 count 7.9 -13.0%

Ziploc easy open tab 1 pint box freezer bag 24 count

11.1 -7.3%

Reynolds wrap foil pan liner 1 count

27.4 -21.7%

Candidates for Price Increases

Source: Nielsen Answers Solutions Roadmap: Pricing Tactis Report 2 - 52 w/e 3-28-15

Recommended Food Storage Items for Price Increase

Reynolds wrap 12 inch

alum foil 200 square

foot

$9.79 $8.99

Reynolds wrap 12 inch

alum foil 35 square foot

$3.89 $3.99 $3.48

Ziploc box food storage

bags 75 ct

$7.59 $7.49

Hefty string seal 25

count

$3.49

Hefty box 35 count $3.49

Hefty box 25 count $3.49

Products Meijer Target Wal-Mart Hardings

$9.79 $8.99 _________ $10.69

$3.89 $3.99 $3.48 $4.49

$7.59 $7.49 __________ _________

$3.49 ________ ____________ $4.69

$3.49 _________ $3.42 _________

$3.49 _________ $3.42 __________

Source: Nielsen Answers Solutions Roadmaps: Pricing Tactics Report 2 - 52 w/e 3-28-15

Recommended Items for Price Decrease

No Items to recommend for Price Decrease

Source: Nielsen Answers Solutions Roadmaps: Pricing Tactics - Report 3 -- 52 w/e 3-15-15

Items with Price Parity and Share Gaps

Source: Nielsen Answers Solutions Roadmaps: Pricing Tactics Report 2 - 52 w/e 3-28-15

Meijer Food Storage Promoted vs. Non-Promoted Sales

Dollars percent promoted was up +1.6% vs. YAG, while it decreased (-0.3) in RM.

Sales percentage promoted for Retailer was 44.3% compared to 14.9% RM

(talk about overall sales whether they are up or down compared to previous year)****

42.0%

58.0%

Sales % PromotedSales % Non-Promoted

Source: Nielsen Answers Solutions Roadmaps: Promotion Position-Report 1 - 52 w/e 3-28-15

Average Promoted Prices on Top Food Storage Brands

Food Storage Top Brands

Meijer Remaining Market Avg. Promo Price Gap

Store BR $1.72 $2.04 -$0.32

Ziploc $2.78 $3.30 -$0.52

Reynolds Wrap $3.85 $3.38 $0.47

Hefty $2.10 $2.43 -$0.33

Glad Press N Seal $2.56 $3.24 -$0.69

Reynolds $1.93 $2.48 -$0.56

Glad Cling Wrap $2.04 $2.66 -$0.63

Saran $2.19 $2.11 $0.08

Ziploc Twist N Loc $2.20 $2.59 -$0.39

Source: Nielsen Answers Solutions Roadmaps: Price Position Report 1 - 52 w/e 3-28-15

Promotion Lift at Meijer Compared to the Remaining Market for Food Storage

Retailer RM

130

101

Source: Nielsen Answers Solutions Roadmaps: Promotion Position Report 5 - 52 w/e 3-28-15

Promotional Levels and Market ShareHigh Promotion, Low Share

103 81

4 5

Promoted less heavily than Remaining Market

Promoted more heavily than Remaining Market

Market Share Surplus vs. category

Market ShareGap vs. category

Non-promotional related opportunities may exist related to these items

Source: Nielsen Answers Solutions Roadmaps: Promotion Tactics Report 1-- 52 w/e 3-28-15

Promotional Levels and Market ShareHigh Promotion, Low Share

Key Brands Share Gap (to category)

% Sold on Promotion Promotion Gap to RM

RYNLD WRAP 12 INCH HVY DUTY ALUM FOIL 50 SQUARE FOOT

-2.8 38.4% 4.4%

REYNOLDS OVEN CKNG BAG 2 COUNT

-1.2 83.7% 24.2%

ZIPLOC BOX 19 COUNT -4.4 70.1% 45.4%

ZPLC ZIP TOP RCLSB BOX FOOD STRG SNDWC BAG 100 COUNT

-14.7 45.7% 29.8%

ZIPLOC FOOD STORAGE BAG 1 QUART FOOD S EASY Z 20 Ct

-20.9 71.8% 12.5%

5 Products in this Quadrant


Promotional Levels and Market ShareHigh Promotion, High Share

103 81

4 5





Opportunities may exist to cautiously improve profit margins with some of these items

Source: Nielsen Answers Solutions Roadmaps: Promotion Tactics Report 1--52 w/e 3-28-15

Promotional Levels and Market ShareHigh Promotion, High Share

Key Brands Share Surplus (to category)


RYNLD WRAP 66.67 YARD 12 INCH ALUM FOIL 200 SQ FT

35.0 55.1% 44.8%

RYNLD WRAP 25 YARD 12 INCH ALUM FOIL 75 SQUARE FOOT

15.1 44.9% 15.2%

ZIPLOC BOX 38 COUNT 9.4 33.1% 17.0%

GLAD PRSN SEAL 23 YARD 11 INCH PLSTC WRAP 70 SQ FT

14.6 54.7% 43.5%

ZIPLOC BOX 28 COUNT 3.6 33.3% 17.8%

ZIPLOC BOX 48 COUNT 18.8 36.6% 12.3%

Top 6 Products in this Quadrant


Promotional Levels and Market ShareLow Promotion, Low Share

103 81

4 5





Promotional opportunities may exist to assist in gaining share with some of these items


Promotional Levels and Market ShareLow Promotion, Low Share

Key Brands Share Gap (to category)


ZIPLOC FOOD STORAGE BAG 1 GALLON FOOD S EASY Z 15 COUNT

-15.8 61.2% -2.7%

GLAD WARE 64 OUNCE FRZR FOOD STRG CONTR SET 6 COUNT

-44.6 0.0% -40.6

ZPLC FRZR B VCM BA RMVS A 1 QUAR FOOD S HSHLD WHT 1 COUNT

-44.5 0.0% -11.2

ZPLC ZIP TOP BOX FOOD STRG & LUNCH BAG SNCK BAG 50 CT

-44.6 0.0% -0.3

4 Products in this Quadrant


Promotional Levels and Market ShareLow Promotion, High Share

103 81

4 5





High Share Levels on these items may be hard to sustain over the long haul without some form of promotional activity on these items


Promotional Levels and Market ShareLow Promotion, High Share

Key Brands Share Gap(to category)


ZPLC DBL ZPPR 1 GAL BOX FRZR BAG 60 CT 38.9 36.1% -2.3

ZPLC EASY OPEN TABS BOX SNDWC BAG 280 CT 29.4 35.2% -9.3

ZPLC DBL ZPPR EASY OPEN TABS BAG 75 CT 31.4 31.7% -4.0

ZPLC DBL ZPPR EASY OPEN 1 QT BAG 80 CT 33.1 33.2% -0.1

HEFTY STRNG SEAL THAN ZPLC BAG 80 CT 47.9 15.0% -38.6

ZPLC ZIP TOP BOX FOOD STRG LUNCH BAG 100 CT

19.2 34.2% -1.7

Top 6 Products in Quadrant


Meijer West Main Ad Hardings Ad. Originally $2.99

Promotional Ads

Wal-Mart Ads Online

Meijer Food Storage

Assortment

Overview

Meijer * Target * Wal-Mart * Harding’s

• Meijer has deeper assortment in Food Storage – achieves 90% of total

product dollar volume with 80.0 items while RM requires 56.5 items to

achieve 90% volume

• Contribution volume for New Item Share was greater than RM – 21.5% vs.

8.9%

• Meijer store brand is ranked more than any other product

Assortment Highlights

Meijer Food Storage Assortment Depth Compared to RM

Meijer achieves 80% of total Dollar volume with 49.3 items while RM requires 44.6 to achieve 80% volume.Meijer achieves 20% of Total Dollar volume with 51.7 items while RM requires 25.4 to achieve 20% volume.

Meijer49.3 Items

Remaining Market44.6 Items

Source: Nielsen Answers Solutions Roadmaps: Assortment Position Remaining Market Report 1- 52 W/E 3-28-15

Top 10 Items in Importance

Key Brands Rank% of Category

SalesCum. Sales to

Category

Meijer Brand Foil 12in. 75sq. ft. 1 3.50% 3.50%

Reynolds Wrp 12 in. 200 sq. ft. 2 3.40% 6.90%

Reynolds Wrp. 75 sq. ft. 3 3.10% 10.00%

Meijer Brand DBLZip Bag 100 ct. 4 2.90% 12.90%

Meijer Brand Foil 200 sql ftl 5 2.70% 15.60%

Mejer Brand Parch. Paper 1 ct. 6 2.50% 18.10%

Meijer Brand DBLZip. Bag 50 ct. 7 2.40% 20.50%

Ziploc Bag 38 ct. 8 2.10% 24.90%

Glad PressnSeal 70 sq. ft. 9 1.80% 26.70%

Meijer Brand Foil 50 sq. ft. 10 1.70% 28.40%

Source: Nielsen Answers Solutions Roadmaps: Assortment Position Report 1 - 52 w/e 3-28-15

Meijer’s Food Storage Assortment Efficiency

Sales in Dollars Increased +9.9%

Sales in Units Increased +4.4%

Number of Items Carried Increased by 8 SKU’s, +8.2%

Number of Items Carried Increased by 8 SKU’s, +8.2%

Assortment Efficiency in Dollars Increased +2.2%

Assortment Efficiency has Decreased (-2.9%)

New Item’s Contribution to Food Storage Category (Dollars)

81.2%

18.8%

Recommended Items to Add

Reynolds Box Baking Paper 1 count

ZPLC DBL ZPPR 1 GALLON BOX FRZR BAG 50 Count

ZPLC SMART ZIP SEAL BOX SNDWC BAG 270 Count

HEFTY BAGS FOOD STRGBAG 22 Count

HEFTY BAGS FOOD STRGBAG 217Count

Chg in Sales in Market 24.0% 117.4% 131.7% 6.2%% 1.7%

ACV % in Market 54.00% 31.00% 25.00% 20.00% 20.00%

Rank in Market 13 60 85 105 115

SPPD in Market 2,500 1,552 1,465 1,639 1,540

Recommended Items for Deletion

No Items to Consider Deleting

Latest 52 weeks

Sales Chg at Meijer 419.7% 425.3% 441.9%

Sales Chg in RM 30.5% 162.6% 132.9%

ACV% at Meijer 57.0% 59.0% 63.0%

SPPD at Meijer 1,678 1,536 1,140

SPPD in RM 882 1,127 1,320

Ziploc 1 Gallon Freezer Bag 15 ct

Ziploc 1 Gallon Food Storage Bag 20 ct

Ziploc 1 Quart Food Storage Bag

High Performing Items Needing Increased Distribution

52 weeksZiploc 1 Gallon Freezer 38 Count

Reynolds Poultry Oven Bag 2 Count

Sales Chg at Meijer -11.30% -26.3%

Sales Chg in RM 7.1% 3.9%

ACV% at Meijer 99.0% 95.0%

SPPD at Meijer 1,269 786

SPPD in RM 1,974 1,949

High Performing Items in MarketplaceNot Performing Well at Meijer

Competitor SKU/Shelf Space ComparisonW

est

M

ain

Source: Field Study Observations, January-April, 2015

We

stM

ain

170 SKU’s 120 Linear Feet



We

st

Mai

n


West Main, Kalamazoo, MI

Wraps Food Storage BagsAisle Flow

20 ft. long, 5-7 shelves, 108 linear ft.

Foil

Aisle Flow

3 ft. 2 Shelves, 6 Linear ft.

Drake Rd, Kalamazoo, MI

14 SKU’s of foils / wraps

37 SKU’s of bags

Aisle Flow 15 feet x 6 shelves = 90 linear feet

Ad Flyer

Originally priced at $2.99

Westnedge, Kalamazoo, MI

Food storage location/ shelf display

Shelf Display

West Main, Kalamazoo, MI

Containers86 SKU’s

Foils/Wraps22 SKU’s

Baggies60 SKU’s

Meijer Food Storage Key-Takeaways

● Northern Meijer Food Storage average prices have increased +$0.13 from a YAG

● Northern Meijer Food Storage Assortment Efficiency has increased by +2.2%from a YAG

● Northern Meijer Store Brands make up 51.5% of total sales for Food Storage

● Northern Meijer sells 42.0% of Food Storage products on Promotion, which has increased +1.6% from a YAG

Meijer Food Storage Recommendations

● There are no items in Northern Meijer Food storage that we recommend for price decreases

● There are no items in assortment for Northern Meijer Food Storage that we recommend deleting

● We are recommending three Reynolds items be added. They are only carried in 55%, 35% and 32% of Meijer stores, ranking 5, 50 and 61, respectively. They also have high a high SPPD in the market

Category Management Food Storage

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