How Retailers Promote Pet Food _ Pet Care.pdf

Document Sample
How Retailers Promote Pet Food _ Pet Care.pdf Powered By Docstoc
					How Retailers Promote
 the Candy Category




                        1
 Top Promoted Food Categories
                        Share of 2010 Retailer Food Ads
                            Across Retail Channels
          Frozen Prepared Food                                                 4.11%
                               Beef                                         3.62%
         Carbonated Soft Drinks                                     2.49%
                               Wine                              2.24%
                            Cheese                            1.96%
                               Pork                          1.84%
Candy (Excl Gum/Mints/Holiday)                             1.67%
                  Frozen Seafood                           1.66%
                           Chicken                         1.65%
                               Beer                       1.64%

 Source: ECRM, Share of U.S. Food Ads (Brands Counts) for Calendar 2010                2
Most leading retailers ran more
ad blocks in 2010 than in 2009
Increased 2010 Ad Blocks Vs. 2009
• Kroger
• Safeway                              Decreased 2010 Ad Blocks
• Albertson’s (Supervalu)              • A&P
• Loblaw’s (Canada)                    • Wegman’s
• Publix                               • Meijer
• Stop & Shop                          • Kmart
• Food Lion                            • Sears
• H.E.B.                               • Shopko

• Walgreen Company
• CVS
                          Shouldn’t we expect fewer print
• Rite Aid                ads as digital media grows?
•   Walmart-US
•   Target Stores     Source: ECRM-MarketGate Ad Comparisons, Calendar 2010   3
    Top Retailers Promoting Candy
                                   Candy Ad Blocks Per Year
Shoppers Drug Mart (Canada)                                                 490
                           CVS                                        356
                        Rite Aid                                    322
                Giant Landover                                274
                   Stop & Shop                                272
                     Walgreens                                268
              Zellers (Canada)                          213     Drug chains
                    Jewel-Osco                         201      dominate candy
                  King Soopers                       180        promotions.
                    City Market                      179

Source: ECRM MarketGate, 52-Week Ad Blocks Ending 2/19/2011                       4
    Retailers Promoting Private
    Label Candy
                                  Ads Including                    PL Share
       Retailer                    Private Label                   of Candy
       Shoppers Drug Mart (Canada)            242                     14.5%
       CVS                                     96                      6.4%
       Walgreen Company                        57                      4.4%
       Superfresh                              53                     14.0%
                     The top U.S. drug chains
       A&P           support branded candy     51                     13.5%
       Pathmark      much more than private    43                     14.5%
       Waldbaums     label.                    42                     12.2%
       Tops Markets                            39                      9.7%
       Rite Aid                                36                      1.8%
       Giant Eagle                             35                     13.8%

Source: ECRM MarketGate, 52-Weeks Ending 2/19/2011, Brand Counts              5
Private Label Candy as a
Destination
While many store brands compete on price, premium candies
like Frango and Choxie drive traffic as exclusive brands.




                                    The Test of
                             Premium Private Label:
                               Is it “GIFTABLE”?            6
Why promote a non-competitive price?
                      About 70% of single candy
                      bar ads are priced at 2/$1.
                      Front and back page ads
                      need to show the best
                      deals to drive traffic.
                                    CVS Back Page Ad
                                            2/20/2011




Kmart Back Page Ad
2/20/2011



                                                        7
 Top Promoted Candy-Makers
                                 Share of Candy Ad Blocks
Hershey Foods Corporation                                                           29.5%
       Mars Chocolate North…                              16.3%
                  Nestle S.A.                   9.8%
        Wrigley Jr Company*                    8.7%
     Russell Stover Candies             4.7%           Hershey, Nestle, and
  Cadbury Adams USA LLC
                                                       Mars (with Wrigley)
                                       3.9%
                                                       represent nearly 2/3
 Private Brand Manufacturer           3.5%
                                                       of all retail candy ads.
   Farley's & Sathers Candy…         2.7%              *Wrigley is owned by Mars.

      Tootsie Roll Industries        2.7%
         Ferrero U.S.A., Inc.        2.3%
Source: ECRM MarketGate, Share of Weighted Ad Blocks, 52-Week Ending 2/19/2011
                                                                                            8
Seasonal Candy
  Promotions



                 9
Weekly Food Promotions
                                                                             Pre-
Weekly Number of U.S. Print                                               Christmas
                                                                                    2011
Circular Ads for Food Brands                                           Pre-
                                                                                    Super
                                                                   Thanksgiving
                                      Pre-                                          Bowl
 2010           Pre-                             Pre-Labor
                         Pre-         4th of
 Super         Easter                               Day
                        Mothers       July
 Bowl
                         Day




                                     Food ads drop for the week of
                                     Thanksgiving/Black Friday as
                                     Mass and Drug channels
                                     promote non-food categories.



Source: ECRM, Weekly Food Ads (Brands Counts) for U.S. Retailers                        10
Candy Ad Support By Week
 Weekly Ad Blocks in
 Retail Print Circulars                                                               Valentine’s
                                                                                         Day
                      The number of weekly               Halloween
                      candy ads vary greatly
   Easter                                                               Christmas
                      throughout the year.
            Mothers
             Day
                             4th of
                             July




                                                                       2010             2011



Source: ECRM, Weekly Ad Blocks Weighted by Retailer Size, 52 Weeks Ending 2/19/2011            11
  Valentine’s Season Retail Ad Support

                            Share of Promotions                          Rank
Candy Maker                 Valentine's 52-Wks                  Valentine's   52-Wks
Hershey Foods                 25.9%         29.5%                  #1         #1
Mars Chocolate                19.9%         16.3%                  #2         #2
Russell Stover                15.2%          4.7%                  #3         #5
Nestle                         9.4%          9.8%                  #4         #3
Wrigley (Mars)                 3.5%          8.7%                  #5         #4
Ferrero U.S.A.                 3.2%          2.3%                  #6         #10
Farley's & Sathers             3.2%          2.7%                  #7         #8
Cadbury Adams USA              3.0%          3.9%                  #8         #6
Private Label                  2.7%          3.5%                  #9         #7
Ghirardelli Chocolate          2.1%          1.7%                 #10         #12
        Source: ECRM MarketGate, Share of Weighted Ad Blocks
        52 Week Ending 2/19/2011 vs. 4 Weeks Ending 2/19/2011                       12
Last Minute Valentine’s Ads
Running February 13, 2011




                              13
    Valentine’s Day Outside the U.S.
                    Netto, UK                Loblaws, Canada,           Zellers, Canada




Comercial Mexicana (Mexico)     Intermarche (France)   Tesco (Poland)
                                                                                          14
  Very Little FSI Support for
  Valentine’s Day Candy

                                   2/6/2011
                       1/31/2011




The one true FSI for
Valentine’s candy
ran early: 1/23/2011
                                              15
  Christmas Season Retail Ad Support

                            Share of Promotions                          Rank
Candy Maker                 Christmas 52-Wks                     Christmas    52-Wks
Hershey Foods                 31.7%          29.5%                  #1        #1
Mars Chocolate                10.3%          16.3%                  #2        #2
Russell Stover                 8.3%           4.7%                  #3        #5
Nestle                         6.2%           9.8%                  #4        #3
Ferrero U.S.A.                 5.6%           2.3%                  #5        #10
Wrigley (Mars)                 4.9%           8.7%                  #6        #4
Private Label                  4.0%           3.5%                  #7        #7
Ghirardelli Chocolate          3.9%           1.7%                  #8        #12
Farley's & Sathers             3.7%           2.7%                  #9        #8
Tootsie Roll Industries        3.1%           2.7%                 #10        #9
        Source: ECRM MarketGate, Share of Weighted Ad Blocks
        52 Week Ending 2/19/2011 vs. 4 Weeks Ending 12/25/2010                      16
Advent Promotions?


                     Metro, Austria
                     11/11/2010
                     2 full pages for Advent




                                          17
  Halloween Season Retail Ad Support

                            Share of Promotions                         Rank
Candy Maker                 Halloween 52-Wks                     Halloween 52-Wks
Hershey Foods                 29.5%          29.5%                  #1      #1
Mars Chocolate                17.6%          16.3%                  #2      #2
Nestle                        14.4%           9.8%                  #3      #3
Wrigley (Mars)                 7.0%           8.7%                  #4      #4
Farley's & Sathers             6.8%           2.7%                  #5      #8
Tootsie Roll Industries        5.8%           2.7%                  #6      #9
Private Label                  4.4%           3.5%                  #7      #7
Cadbury Adams USA              2.3%           3.9%                  #8      #6
Kraft Foods                    2.2%           0.7%                  #9      #16
Wilton Industries              1.8%           0.2%                 #10      #32
        Source: ECRM MarketGate, Share of Weighted Ad Blocks
        52 Week Ending 2/19/2011 vs. 4 Weeks Ending 10/30/2010                    18
Share of Ad Space Makes a
Difference




           •Both ads ran October 24, 2010.
                                             19
  Promotional Reflections

• Look for ECRM’s
  Executive Review of
  North American
  Halloween Season
  Ad Circulars
www.PromotionalReflections.com




                                 20
 Mother’s Day Season Retail Ad Support

                            Share of Promotions                      Rank
Candy Maker                Mother’s Day 52-Wks              Mother’s Day 52-Wks
Hershey Foods                 23.8%         29.5%                #1      #1
Mars Chocolate                14.0%         16.3%                #2      #2
Nestle                        12.6%          9.8%                #3      #3
Wrigley (Mars)                 6.9%          8.7%                #4      #4
Russell Stover                 6.5%          4.7%                #5      #5
Ghirardelli Chocolate          5.3%          1.7%                #6      #12
Private Label                  5.1%          3.5%                #7      #7
Cadbury Adams USA              4.8%          3.9%                #8      #6
Lindt & Sprungli               3.4%          1.9%                #9      #11
Godiva Chocolatier             3.0%          0.4%               #10      #23
        Source: ECRM MarketGate, Share of Weighted Ad Blocks
        52 Week Ending 2/19/2011 vs. 4 Weeks Ending 5/15/2010                  21
Several categories compete for
front page Mother’s Day ads




               May, 2010

                                 22
 Easter Season Retail Ad Support

                            Share of Promotions                      Rank
Candy Maker                  Easter     52-Wks                 Easter     52-Wks
Hershey Foods                28.2%          29.5%               #1        #1
Mars Chocolate               13.5%          16.3%               #2        #2
Wrigley (Mars)                9.2%           8.7%               #3        #4
Just Born                     5.7%           1.0%               #4        #14
Russell Stover                4.8%           4.7%               #5        #5
Nestle                        4.2%           9.8%               #6        #3
Private Label                 4.0%           3.5%               #7        #7
Lindt & Sprungli              3.8%           1.9%               #8        #11
R.M. Palmer                   3.4%           0.8%               #9        #15
Cadbury Adams USA             3.0%           3.9%              #10        #6
        Source: ECRM MarketGate, Share of Weighted Ad Blocks
        52 Week Ending 2/19/2011 vs. 4 Weeks Ending 4/3/2010                    23
Mass merchandisers show strong
ads support for Easter.




March 28, 2010
                                 24
Easter Candy Ads in January
                       Giant Landover    (Kroger Banners)
  Shoppers Drug Mart   and Stop & Shop   Baker’s/Dillons/Gerbes




                                                January, 2011


              These ads ran over three
              months before Easter.
                                                                  25
One Week After Valentine’s Day:
Front Page Ads for More Candy!!!
2/20/2011 ads from Top Drug Chains: Walgreens, CVS, and Rite Aid




                              Reminder: Easter is on
                              April 24th this year – nine
                              weeks away, and three
                              weeks later than in 2010.


                                                                   26
Candy POS Sales




                  27
  Top 10 U.S. Candy Items – Unit Sales

Unit                                                52-Week Avg Unit
Rank    Produce Description                       UNIT Sales   Price                 UPC Code
#1    Snickers Bar, 2.07 oz.             112.2 MM   $0.66 40000 00102
#2    Reeses Peanut Butter Cup, 1.5 oz.    81.9 MM  $0.66 34000 00440
#3    Hershey's Milk Chocolate, 1.55 oz.   66.2 MM  $0.67 34000 00240
#4    M&M Peanut, 1.74 oz.                 66.0 MM  $0.66 40000 00032
#5    Kit Kat, 1.5 oz.                     65.4 MM  $0.67 34000 00246
#6    Hershey's Milk Choc Almond, 1.45 oz. 59.0 MM  $0.65 34000 00241
#7    M&M Plain 1.69 oz.                   45.1 MM  $0.68 40000 00031
                                                Single bars rank
#8    Butterfinger Bar, 2.1 oz.            36.9 MM  $0.64 28000 01159
                                                highest in unit sales
#9    3 Musketeers Bar, 2.13 oz.           36.5 MM  $0.67 40000 00003
#10   Hershey's Cookies N Creme, 1.55 oz. 33.5 MM   $0.69 34000 00239

                  Source: Nielsen, Total U.S. Food/Drug/Mass Excluding Walmart, 52 Weeks Ending 12/25/10

                                                                                                     28
Top 10 U.S. Candy Items – Dollar Sales
Dollar                                           52-Week Avg Unit
Rank       Produce Description               DOLLAR Sales   Price               UPC Code
#1       Hershey's Milk Chocolate, 6-ct          $76.6 MM   $3.35 34000 29005
#2       Snickers Bar, 2.07 oz.                  $74.1 MM   $0.66 40000 00102
#3       Reeses Peanut Butter Cup, 1.5 oz.       $53.7 MM   $0.66 34000 00440
#4       Snickers Fun Size 11.18 oz. Bag         $49.4 MM   $2.70 40000 15140
#5       Reeses Pnt Btr Cup, 10.5 oz. Bag        $46.0 MM   $2.61 34000 40211
#6       Hershey's Milk Chocolate, 1.55 oz.            The $0.67 34000 00240
                                                 $44.1 MM top 10 in dollar
#7       Kit Kat, 1.5 oz.                              sales include 5 singles
                                                 $44.0 MM   $0.67 34000 00246
#8       M&M Peanut, 12.6 oz. Bag                      5 multi-packs. 24887
                                                 $43.9 MM   $2.97 40000
#9       M&M Peanut, 1.74 oz.                    $43.6 MM   $0.66 40000 00032
#10      Kit Kat, 10.78 oz. Bag                  $43.1 MM   $2.65 34000 08752

          Source: Nielsen, Total U.S. Food/Drug/Mass Excluding Walmart, 52 Weeks Ending 12/25/10

                                                                                              29
     Candy Pricing By Retail Channel
Dollar                                             Average Unit Price          Price
Rank     Produce Description                       Grocery    Drug           Advantage        Manufacturer
#1   Hershey's Milk Chocolate, 6-ct                  $3.38      $3.74      Supermarkets         Hershey’s

#2   Snickers Bar, 2.07 oz.                          $0.67      $0.63       Drug Chains           Mars

#3   Reeses Peanut Butter Cup, 1.5 oz.               $0.64      $0.68      Supermarkets         Hershey’s
                                                                                               What’s
#4   Snickers Fun Size 11.18 oz. Bag                 $2.72      $2.66       Drug Chains          Mars
                                                                                               driving
#5   Reeses Pnt Btr Cup, 10.5 oz. Bag                $2.60      $2.72      Supermarkets        Hershey’s
                                                                                             price gaps
#6   Hershey's Milk Chocolate, 1.55 oz.              $0.65      $0.70      Supermarkets        across
                                                                                               Hershey’s
                                                                                             channels?
#7   Kit Kat, 1.5 oz.                                $0.66      $0.71      Supermarkets         Hershey’s

#8   M&M Peanut, 12.6 oz. Bag                        $3.16      $2.85       Drug Chains           Mars

#9   M&M Peanut, 1.74 oz.                            $0.67      $0.63       Drug Chains           Mars

#10 Kit Kat, 10.78 oz. Bag                           $2.62      $2.82      Supermarkets         Hershey’s

                        Source: Nielsen, Total U.S. Food/Drug/Mass Excluding Walmart, 52 Weeks Ending 12/25/10

                                                                                                            30
Key Takeaways
• Easter is three weeks later in 2011. Some retailers are
  promoting Easter candy too early.
• Drug chains run the most candy ads, but run very few
  ads for private label candy.
• Despite digital alternatives, retailers are running more
  print ads than ever.
• The top 3 candy-makers represent nearly 2/3 of all
  retail candy ads.
• Holiday promo support varies widely by brand.
• Mars promotes at a lower price in the drug channel
  while Hershey promotes lower prices in supermarkets.
                                                             31
More on ECRM
Recent Studies/Reports: www.PromotionalReflections.com
   –   Top 100 Promoted Brands
   –   Super Bowl Promotions
   –   Holiday Season Promotions
   –   Promoting the Pet Aisle
   –   Black Friday
   –   Thanksgiving Promotions
   –   Fresh/Perishable Promotions
   –   Halloween Promotions

Circular Logic Blog: www.circularlogic.marketgate.com

Contacts:
   Scott Whalley 847-482-1793        scott@ecrm.marketgate.com
   Tom Pirovano 440-528-0418         tpirovano@ecrm.marketgate.com


                                                                     32

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:7
posted:7/12/2012
language:English
pages:32
censhunay censhunay http://
About