Semester Category Project

Fall 2013

Antacids

Dan Beahm

Figure 1: Category Snapshot

• Skews heavily towards older people• Especially towards couples

• Established couples 35-54 also indexes high• Young and start-up families have low usage

Figure 2: Category Demographics

• Most brands skew heavily white• Alka-Seltzer

indexes highest in black and Hispanic

• Most brands skew heavily towards wealthy people ($100k+)• Alka-Seltzer

indexes heavier towards lower income homes

• Significantly older demographics among all brands

Figure 3: Category Role

• National Brand antacids pull in a very high sales dollar volume, but lower gross margins

• Private labels are higher gross margin percentage, but still high sales dollar volume• This makes them a flagship• Very important item for retailers to leverage

Figure 4: Store Audit Breakdown

• SKUs were fairly even throughout different retailers• Target had the most private labels

• This lead to the most Unique SKUs• Walmart is at disadvantage for unique SKUs

• They also had heavy private label, but because I audited two types of Walmarts, I couldn’t count them as unique (both stores had them)

• Private label and Tums battle it out for higher gross Margin percentage• Alka-Seltzer had lowest gross margin

• This fits with Alka-Seltzer skewing towards lower income homes• Average Gross Margin %s are very high

• Tums appears to dominate the Gross Margin $ game• Rolaids and Private Label are also successful• Alka-Seltzer and Gaviscon produce pretty low Gross Margin $s

• The most facings are given to Tums• This fits with Tums having the highest gross margin %

• Private label is a close second in facings, with products “imitating” each of these brands