Everglades Seasoning for Costco Wholesales

A Sales Presentation By: Brittany D. Nickerson

July 7/14th, 2009

Seller ProfileEverglades Seasoning for Costco WholesalesJuly 07/14, 2009

Personal Profile: Brittany Nickerson• Expected Graduation: December 2009• Major: General Business w/ Concentration in

Marketing and Management • Areas of Interest: Entrepreneurial Opportunities, Real

Estate, & Agriculture Industry• Career Aspirations: Farm Manager, Real Estate Agent, &

Business Owner• Work Experience:

▫ August 2004- August 2005: Assistant to the Director of Main Street Wauchula in Wauchula, FL

▫ August 2006- November 2007: Real Estate Sales Associate at You WIN Realty in Sheridan, WY

▫ May 2003- Present: Administrative Assistant at Nickerson Brothers L.L.C. Dairy Farm in Zolfo Springs, FL

• Contact Information:▫ Email: brittany.d.nickerson@gmail.com▫ Cell: 863.446.2735

Company Profile: Everglades Foods Inc.•Everglades Foods Inc. is a small company

located in Sebring, Florida that produces a wide range of spices, marinades, and sauces. Everglades Foods purchased Everglades Seasoning in 1992, and has since grown at an impressive rate through the rapid spread of both new and existing products. Everglades Foods is currently sold in more than 25 states in more than 150 locations- not including major distributors such as Sam’s club, Publix, and Wal-Mart.

Competitive AnalysisEverglades Seasoning for Costco WholesalesJuly 07/14, 2009

Competitive Analysis• Company Information

▫ Costco Wholesale Costco Wholesale is the largest membership warehouse club chain in the

world based on sales volume. Costco is the fifth largest general retailer in the United States. Costco focuses on selling products at low prices, often at very high volume. Costco is headquartered in Issaquah, Washington, United States and was

founded in Kirkland, with its flagship warehouse in nearby Seattle. Costco's Canadian operations are based in Ottawa, Ontario.

• Competitive Analysis▫ Costco’s main competitor is Sam’s Club, who currently has more

warehouses, however Costco has a higher total sales volume.• Buyer Needs

▫ Selling products at low prices and high volumes. Competitive Purchasing Discount Plans

▫ Maintain wholesale mind set through minimizing cost and maximizing volume

FAB AssessmentEverglades Seasoning for Costco WholesalesJuly 07/14, 2009

FAB: Features of Everglades Seasoning•Working with a smaller company which creates the

opportunity to maintain a closer, more personal relationship between retailer and supplier.

•No minimum or maximum order sizes

•Specialized packaging for wholesale merchandising

•Larger size bottles exclusively distributed through wholesale retailers (16oz. Vs. 8oz.)

FAB: Advantages of Everglades Seasoning• Everglades Seasoning creates an “all-in-one or all-

purpose” seasoning to offer to customers rather than stocking and combining multiples seasonings.

• Everglades Seasoning allows for the flexibility to appeal to multiple customer markets because of its versatility, which allows for both household users and for a wide range of food services to both use the product and frequent stores.

• Low Price (Low MSRP)

FAB: Benefit of Everglades Seasoning

• Everglades Seasoning’s specialized packaging for wholesale merchandising creates easier storing & stocking, and less labor in moving and displaying the product.

• Increase in Customer Satisfaction through larger bottles at a low price

• Increase in market penetration through increasing Costco’s product mix as Costco currently does not stock seasonings of this genre.

ImplementationEverglades Seasoning for Costco WholesalesJuly 07/14, 2009

Implementation

•Promotion▫Advertising

Everglades foods will contribute free seasoning for all in-store food displays & samplings.

▫Sales Promotion Everglades foods will issue exclusive Costco

coupons to distribute to customers during the launch of this new product.

Implementation

•Place▫If Costco decides to purchase Everglades

Seasoning and stock the product at all stores, Everglades Foods will contribute one pallet per store in order to launch the new product in each store.

▫Everglades Foods’ sales team will maintain a close relationship with Costco’s inventory monitoring unit to ensure a full product stock at all times.

Implementation•Price▫Through competitive discount plans Everglades

Foods is offering the following:

7% discount for each order over 30,000 bottles

15% discount for each order over 50,000 bottles

▫Additional discount plans can be negotiated as more Everglades Foods products are incorporated into Costco stores.

Profit Forecast &Cost AnalysisEverglades Seasoning for Costco WholesalesJuly 07/14, 2009

Profit Forecast & Cost Analysis• Everglades Seasoning

▫ 10,000 units 23% of gross margin

▫ 30,000 units 28% of gross margin

▫ 50,000 units 34% of gross margin

Profit Forecast & Cost Analysis• Everglades Seasoning

Plan

# of units

Unit Price ($)

Cost($)

Discount

(%)

Discounted Price

($)

MSRP

($)

Revenue($)

Net Profit

($)

Gross Profit Margi

n(%)

1 10,000 3.00 30,0

00 0% 30,000 3.88 38,800 8,800 23%

2 30,000 3.00 90,0

00 7% 83,700 3.88 116,400

26,400 28%

3 50,000 3.00 150,0

00 15% 127,500 3.88 194,0

0066,50

0 34%

•Discounted Price = cost – price•MSRP = Manufacturer’s Suggested Retail Price•Revenue = MSRP * # of units sold•Net Profit = Revenue – Costs•Profit Margin = (Revenue – Cost) / Revenue

Profit Forecast & Cost Analysis• Net Profit • Gross Profit Margin

Plan

1

Plan

2

Plan

3 $-

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

Net Profit

Plan

1

Plan

2

Plan

30%

5%

10%

15%

20%

25%

30%

35%

Gross Profit Margin

Thank you for your time and consideration!

-EvergladesFoods Inc.