Smuckers Case Study Final (Reduced)

Bob’s Market

Jeremy Vargo || Rachel Gilbert || Michelle Fnu || Brittany Case

Shopper Profiles• Mainstream shoppers

• Older couples, 55+ years old• Retired• High school education or less

• Premium• Affluent older couples, 55+ years old• Household income of $100k +• College education, working full time

• One cup brewer• Affluent older couples, 55+ years old• Household income of $50k+• College educated

• Single Serve• Affluent older couples• Household income of $50k+

Shopper Focus• Which of these segments shop at Bob’s Market and

which segments bring Bob’s Market the most sales/profit?• Premium

• ROM Growth vs. YAG: 5%• One Cup Brewer

• ROM Growth vs. YAG: 186.9%

• Compared to the competition, on which segments should Bob’s Market focus on?• One Cup Brewer coffee

Coffee Assortment• Most potential for purchase inclines is an

assortment of coffee flavors• Bob’s Market does no currently offer a variety

of coffee• Focus in on the wrong segments of coffee

Single Serve Market• Focus is on single serve which is a declining

market• Declined at Bob’s Market by 13%

$ Sales$ Sales %

CHG YRAGO

EU SalesEU Sales % CHG YRAGO

$ SHARE SINGLE SERVE

ABS CHG YRAGO

SINGLE SERVE $2,711,098 (1.3%) 28,429 5.2% 0.0FOLGERS COFFEE SINGLE SERVE$730,011 (1.9%) 5,365 (0.7%) (0.2)MAXWELL HOUSE COFFEE SINGLE SERVE$642,389 1.1% 5,667 11.4% 0.6P RIVATE LABEL COFFEE SINGLE SERVE$341,038 8.7% 4,242 25.8% 1.2NESCAFE TASTERS CHOICE COFFEE SINGLE SERVE$307,977 (1.0%) 1,539 (6.7%) 0.0GENERAL FOODS INTERNATIONAL COFFEE SINGLE SERVE$275,410 (25.5%) 4,567 (20.2%) (3.3)

One Cup Brewer Assortment• One Cup Brewers (K-Cups) growing at a rapid

rate

$ Sales$ Sales % CHG YRAGO


$ SHARE K CUP S ABS

CHG YRAGO

ONE CUP BREWERS $1,946,039 186.9% 9,287 133.2% (241.8)GREEN MOUNTAIN COFFEE SINGSERV K CUP S$711,998 902.1% 2,860 899.3% 8.0NEWMANS OWN COFFEE SINGSERV K CUP S$466,421 488.1% 2,076 475.1% (12.6)TULLYS COFFEE SINGSERV K CUP S$84,203 0.0% 413 0.0% 5.5CARIBOU COFFEE COFFEE SINGSERV K CUP S$110,142 406.9% 530 417.5% (4.6)VAN HOUTTE COFFEE SINGSERV K CUP S$90,710 682.1% 363 655.3% (0.4)

One Cup Brewer Assortment• One Cup Brewers (K-Cups) growing at a rapid

rate• Folger’s currently has two flavors at Bob’s

Market• Folger’s now has 11 flavors of K-Cups• Dunkin Donut’s has 7 flavors of K-Cups

Premium Coffee• Premium Coffee grew by over 5% in retailer but Bob’s

Market and Account B• Growing market in ROM• Greater assortment will drive sales

Outlet Vol Share of Category

Point CHG YRAGO


Point CHG YRAGO


Point CHG YRAGO


Point CHG YRAGO


Point CHG YRAGO


Point CHG YRAGO

100.0 0.0 8.0 (0.5) 38.7 1.2 11.0 (0.9) 10.8 0.3 20.2 0.3

EU Sales

EU Sales % CHG

YRAGO EU Sales

EU Sales % CHG

YRAGO EU Sales

EU Sales % CHG

YRAGO EU Sales

EU Sales % CHG

YRAGO EU Sales

EU Sales % CHG

YRAGO EU Sales

EU Sales % CHG

YRAGO

CATEGORY - COFFEE 4,644,068 0.5 369,531 (5.8) 1,798,022 3.6 509,082 (7.3) 501,567 3.4 938,293 1.8

PREMIUM 1,301,021 5.0 107,276 0.8 302,028 6.3 135,252 (1.1) 277,298 7.9 376,551 7.3MAINSTREAM 3,005,871 (1.8) 233,826 (9.7) 1,358,120 3.1 329,692 (10.7) 190,638 (3.6) 503,856 (3.1)SINGLE SERVE 307,406 (0.2) 28,248 4.5 129,957 (0.2) 40,993 (0.8) 27,096 1.7 47,784 1.5ONE CUP BREWERS 29,770 125.5 181 0.0 7,917 119.8 3,145 104.2 6,535 83.4 10,103 199.0

EU SharePoint CHG

YRAGO EU SharePoint CHG





YRAGO

PREMIUM 28.0 1.2 29.0 1.9 16.8 0.4 26.6 1.6 55.3 2.3 40.1 2.0MAINSTREAM 64.7 (1.5) 63.3 (2.7) 75.5 (0.4) 64.8 (2.5) 38.0 (2.8) 53.7 (2.7)SINGLE SERVE 6.6 (0.0) 7.6 0.8 7.2 (0.3) 8.1 0.5 5.4 (0.1) 5.1 (0.0)ONE CUP BREWERS 0.6 0.4 0.0 0.0 0.4 0.2 0.6 0.3 1.3 0.6 1.1 0.7

SEGMENTS

Account C Account D

SEGMENTS

Total Market Bob's Markets Account A Account BPremium Grocery RetailersValue Grocery Retailers

Premium Coffee Assortment• Dunkin Donuts premium grew 24.9%

$ Sales$ Sales %

CHG YRAGO


$ SHARE P REMIUM ABS CHG YRAGO

P REMIUM $6,584,025 4.0% 107,276 0.8% 0.0EIGHT O CLOCK COFFEE P REMIUM$1,423,393 5.2% 23,667 (2.4%) 0.2NEW ENGLAND COFFEE P REMIUM$1,343,469 16.5% 27,823 17.7% 2.2P RIVATE LABEL COFFEE P REMIUM$1,303,994 (3.9%) 28,924 (1.9%) (1.6)DUNKIN DONUTS J MS COFFEE P REMIUM$1,077,328 24.9% 11,693 22.6% 2.7STARBUCKS COFFEE P REMIUM$893,478 8.9% 8,763 18.2% 0.6

Premium Coffee Assortment• Starbucks and Dunkin’ Donuts have the highest

composite ranking of brands across all three store profiles

• By placing more premium Dunkin’ Donuts coffee in store it will help grow Dunkin Donuts to the #1 spot

Brand Total Premium Mainstream ValueSTARBUCKS 1 1 1 1DUNKIN' DONUTS 2 2 2 2PRIVATE LABEL 3 4 3 48 O'CLOCK* 4 3 4 5MILLSTONE 5 5 5 3SEATTLES BEST 6 6 6 6PEET'S 7 7 8 8FOLGERS 8 8 7 7CHRISTOPHER BEAN 9 9 9 9TULLYS 10 10CARIBOU 11 10 11

Current PricingBob's Account A Account B Account C Account D

InstantFolgers $6.35 $5.88 $5.69 $6.78 $6.29Maxwell House $6.58 $6.55 $6.14 $6.63 $6.46Taster's Choice $8.78 $8.27 $9.90 $9.54 $9.94Nescafe $6.95 $6.66 $6.78 $6.92 $6.29

Brick BagFolgers 11.3oz Brick Bag $3.93 $4.41 $3.85 $3.77 $4.28Maxwell House 11oz Brick Bag $3.94 $4.08 $3.90 $3.30 $3.93PL 11oz Brick Bag $2.93 $3.24 $2.75 $3.10 $3.22

Mainstream Small CanFolgers 11.3oz $4.31 $4.31 $4.10 $4.48 $4.64Maxwell House 11.5oz $4.52 $4.27 $4.11 $3.78 $4.40PL 11oz Can $0.00 $3.15 $3.58 $3.13 $4.07

Mainstream Large CanFolgers Large Can $9.08 $9.76 $8.19 $9.11 $10.34Maxwell House Large Can $9.84 $9.40 $7.66 $9.54 $10.09PL Large Can $7.88 $7.17 $6.80 $7.99 $10.64

PremiumEight O Clock 12oz $5.69 $5.99 $5.69 $5.99 $6.25Dunkin Donuts 12oz $7.99 $8.49 $7.99 $8.49 $7.71Starbucks 12oz $8.99 $8.99 $8.99 $8.99 $8.89

Value Retailers Premium Retailers

Pricing Recommendations• Bob’s Market should be more competitive on certain prices

when given competitive pressure• Bob’s Market should keep offering average prices• Bob’s Market should work hard on differentiating products

from competitors by providing products that are unique• Focus on sales of premium coffee and one cup brewer• Price itself is not the main problem

• Data indicates that each time there is a promotion, there is a buyer

• Increase shopper value of shopping at Bob’s Market!

Planogram and Location• Data suggests the shelf should be categorized by major segments• Within these segments, organize by brand and vertically by size• Include coffee filters and additives to leverage impulse purchases

• Majority of K-Cup shoppers cross-purchase with premium and mainstream• Shelving premium and one cup brewer adjacent to mainstream increases trade

up opportunity

• Optimal shelf placement within segment: at/right below eye level

Creamy

Singles

Regional Brands

Whole Bean Ground

Creamers, Filters,

Sweeteners, Flavorings, Gen MerchInstant

Bra

nded

Cof

fee

Priv

ate

Labe

l

Bra

nded

Cof

fee

Bulk Pre-Pack

One Cup Brewer Coffee

3 lb

1 lb

Premium Mainstream

Bulk & GrinderMajor National Brands

Decaf & Half Caff

Location in Store• Bob’s Market is losing trips

in total coffee, driven by declines in premium and single serve

• Position coffee section in grocery part of the store

• Shelve bulk at the back of the store near meat• Capture concept of fresh and

premium along with sensory and aroma

Co-Promotions• Data indicates creamer is the top item often found in the basket with

coffee


coffee• Data indicates co-promoting a premium coffee product with a

mainstream coffee product drives incremental sales for both product groups




• Dual promotions appeal to both core and occasional shoppers at the same rate





• Data indicates coffee sweetener ranks the highest in one cup brewer baskets• Create a co-promotion with coffee sweetener and K-Cups





• Data indicates coffee sweetener ranks the highest in one cup brewer baskets• Create a co-promotion with coffee sweetener and K-Cups

• Data indicates that other products have successfully been co-promoted using the Fuel Advantage Campaign• Implement coffee with this fuel perks program

In-Store Promotion: Non-Price• In-store sampling

• One cup brewer coffee and sweetener• Premium Dunkin’ Donuts coffee and Dunkin’ Donuts creamer• Include bakery treats



• Product Displays• Mainstream and Premium



• Product Displays• Mainstream and Premium• Premium, one cup brewer, Dunkin’

Donuts creamer




Donuts creamer• Promotion on K-Cups shoppers

owning a My K-Cup filter




Donuts creamer• Promotion on K-Cups shoppers

owning a My K-Cup filter• K-Cups and premium during holiday

season

In-Store Promotions: Price• Create a promotion with premium coffee and Dunkin’ Donuts creamer• Create a promotion with one cup brewer coffee and coffee sweetener

In-Store Promotions: Price• Create a promotion with premium coffee and Dunkin’ Donuts creamer• Create a promotion with one cup brewer coffee and coffee sweetener• Target direct mailers with coupons• In-store coupon available at sampling booth• BOGO’s• “Product of the Month” feature – different types of coffee

In-Store Promotions: Price• Create a promotion with premium coffee and Dunkin’ Donuts creamer• Create a promotion with one cup brewer coffee and coffee sweetener• Target direct mailers with coupons• In-store coupon available at sampling booth• BOGO’s• “Product of the Month” feature – different types of coffee

• K-Cups growing in popularity• Flavor of the month• Result in mainstream and premium buyers increase

size of cart• Result in increase of trade-ups

Smuckers Case Study Final (Reduced)

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