attracting shoppers with candy - 2011 · mars chocolate north … nestle s.a. wrigley jr company*...
TRANSCRIPT
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Attracting Shopperswith Candy - 2011
Tom PirovanoFebruary, 2011
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Topics Covered
• Recent Candy Promotions
• Print Ads Across Retailers & Suppliers
• Seasonal Candy Promotions
• Candy POS Sales
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Recent Candy Promotions
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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.
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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.
Kmart Back Page Ad2/20/2011
CVS Back Page Ad2/20/2011
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My Favorite Valentine’s Day Ad for 2011
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Valentine’s FSIs – 2/6/2011
Where are the Valentine’s Candy FSI’s?
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Very Little FSI Support for Valentine’s Day Candy
1/31/20112/6/2011
The one true FSI for Valentine’s candy ran early: 1/23/2011
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Super Bowl TV Commercials
CPG Suppliers with 2010 Super Bowl Spots
• Anheuser-Busch• PepsiCo • Coca-Cola • Mars Candy• MillerCoors• Dr. Pepper/Snapple • Unilever • Diamond Foods
• Anheuser-Busch • PepsiCo• Coca Cola• Mars Candy
CPG Suppliers with 2011 Super Bowl Spots
Only 4 CPG Players in 2011?
Will Super Bowl TV commercials remain effective for CPG brands?
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Candy Print AdsAcross Retailers & Suppliers
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490
356
322
274
272
268
213
201
180
179
Shoppers Drug Mart …
CVS
Rite Aid
Giant Landover
Stop & Shop
Walgreens
Zellers (Canada)
Jewel-Osco
King Soopers
City Market
Top Retailers Promoting Candy
Drug chains dominate candy promotions.
Source: ECRM MarketGate, 52-Week Ad Blocks Ending 2/19/2011
Candy Ad Blocks Per Year
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Retailers Promoting Private Label Candy
Ads Including PL ShareRetailer Private Label of CandyShoppers Drug Mart (Canada) 242 14.5%CVS 96 6.4%Walgreen Company 57 4.4%Superfresh 53 14.0%A & P 51 13.5%Pathmark 43 14.5%Waldbaums 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
The top U.S. drug chains support branded candy much more than private label.
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While many store brands compete on price, premium candies like Frango and Choxie drive traffic as exclusive brands.
Private Label Candy as a Destination
The Test ofPremium Private Label:
Is it “GIFTABLE”?
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Top Promoted Food Categories
4.11%
3.62%
2.49%
2.24%
1.96%
1.84%
1.67%
1.66%
1.65%
1.64%
Frozen Prepared Food
Beef
Carbonated Soft Drinks
Wine
Cheese
Pork
Candy (Excl Gum/Mints/Holiday)
Frozen Seafood
Chicken
Beer
Share of 2010 Food Ads
Source: ECRM, Share of U.S. Food Ads (Brands Counts) for Calendar 2010
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Most leading retailers ran more ad blocks in 2010 than in 2009Increased 2010 Ad Blocks Vs. 2009• Kroger• Safeway• Albertson’s (Supervalu)• Loblaw’s (Canada)• Publix • Stop & Shop• Food Lion• H.E.B.
• Walgreen Company• CVS• Rite Aid
• Walmart-US• Target Stores
Decreased 2010 Ad Blocks• A&P• Wegman’s• Meijer• Kmart• Sears• Shopko
Source: ECRM-MarketGate Ad Comparisons, Calendar 2010
Shouldn’t we expect fewer print ads as digital media grows?
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29.5%
16.3%
9.8%
8.7%
4.7%
3.9%
3.5%
2.7%
2.7%
2.3%
Hershey Foods Corporation
Mars Chocolate North …
Nestle S.A.
Wrigley Jr Company*
Russell Stover Candies
Cadbury Adams USA LLC
Private Brand Manufacturer
Farley's & Sathers Candy …
Tootsie Roll Industries
Ferrero U.S.A., Inc.
Top Promoted Candy-Makers
Hershey, Nestle, and Mars (with Wrigley) represent nearly 2/3 of all retail candy ads.
Source: ECRM MarketGate, Share of Weighted Ad Blocks, 52-Week Ending 2/19/2011
Share of Candy Ad Blocks
*Wrigley is owned by Mars.
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Seasonal CandyPromotions
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Weekly Food PromotionsWeekly Number of U.S. Print Circular Ads for Food Brands
2011Super Bowl
Pre-Easter Pre-
Mothers Day
Pre-4th of July
Pre-Labor Day
Pre-Thanksgiving
Pre-Christmas
Source: ECRM, Weekly Food Ads (Brands Counts) for U.S. Retailers
2010Super Bowl
Food ads drop for the week of Thanksgiving/Black Friday as Mass and Drug channels promote non-food categories.
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Candy Ad Support By WeekWeekly Ad Blocks in Retail Print Circulars Valentine’s
Day
Easter
Mothers Day
4th ofJuly
Halloween
Christmas
Source: ECRM, Weekly Ad Blocks Weighted by Retailer Size, 52 Weeks Ending 2/19/2011
The number of weekly candy ads vary greatly throughout the year.
20112010
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Valentine’s Season Retail Ad Support
Share of Promotions RankCandy Maker Valentine's 52-Wks Valentine's 52-WksHershey Foods 25.9% 29.5% #1 #1Mars Chocolate 19.9% 16.3% #2 #2Russell Stover 15.2% 4.7% #3 #5Nestle 9.4% 9.8% #4 #3Wrigley (Mars) 3.5% 8.7% #5 #4Ferrero U.S.A. 3.2% 2.3% #6 #10Farley's & Sathers 3.2% 2.7% #7 #8Cadbury Adams USA 3.0% 3.9% #8 #6Private Label 2.7% 3.5% #9 #7Ghirardelli Chocolate 2.1% 1.7% #10 #12
Source: ECRM MarketGate, Share of Weighted Ad Blocks52 Week Ending 2/19/2011 vs. 4 Weeks Ending 2/19/2011
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Last Minute Valentine’s Ads Running February 13, 2011
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Valentine’s Day Outside the U.S.
Comercial Mexicana (Mexico) Intermarche (France) Tesco (Poland)
Netto, UK Loblaws, Canada, Zellers, Canada
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Christmas Season Retail Ad Support
Share of Promotions RankCandy Maker Christmas 52-Wks Christmas 52-WksHershey Foods 31.7% 29.5% #1 #1Mars Chocolate 10.3% 16.3% #2 #2Russell Stover 8.3% 4.7% #3 #5Nestle 6.2% 9.8% #4 #3Ferrero U.S.A. 5.6% 2.3% #5 #10Wrigley (Mars) 4.9% 8.7% #6 #4Private Label 4.0% 3.5% #7 #7Ghirardelli Chocolate 3.9% 1.7% #8 #12Farley's & Sathers 3.7% 2.7% #9 #8Tootsie Roll Industries 3.1% 2.7% #10 #9
Source: ECRM MarketGate, Share of Weighted Ad Blocks52 Week Ending 2/19/2011 vs. 4 Weeks Ending 12/25/2010
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Metro, Austria11/11/20102 full pages for Advent
Advent Promotions?
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Halloween Season Retail Ad Support
Share of Promotions RankCandy Maker Halloween 52-Wks Halloween 52-WksHershey Foods 29.5% 29.5% #1 #1Mars Chocolate 17.6% 16.3% #2 #2Nestle 14.4% 9.8% #3 #3Wrigley (Mars) 7.0% 8.7% #4 #4Farley's & Sathers 6.8% 2.7% #5 #8Tootsie Roll Industries 5.8% 2.7% #6 #9Private Label 4.4% 3.5% #7 #7Cadbury Adams USA 2.3% 3.9% #8 #6Kraft Foods 2.2% 0.7% #9 #16Wilton Industries 1.8% 0.2% #10 #32
Source: ECRM MarketGate, Share of Weighted Ad Blocks52 Week Ending 2/19/2011 vs. 4 Weeks Ending 10/30/2010
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Share of Ad Space Makes a Difference
•Both ads ran October 24, 2010.
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Mother’s Day Season Retail Ad Support
Share of Promotions RankCandy Maker Mother’s Day 52-Wks Mother’s Day 52-WksHershey Foods 23.8% 29.5% #1 #1Mars Chocolate 14.0% 16.3% #2 #2Nestle 12.6% 9.8% #3 #3Wrigley (Mars) 6.9% 8.7% #4 #4Russell Stover 6.5% 4.7% #5 #5Ghirardelli Chocolate 5.3% 1.7% #6 #12Private Label 5.1% 3.5% #7 #7Cadbury Adams USA 4.8% 3.9% #8 #6Lindt & Sprungli 3.4% 1.9% #9 #11Godiva Chocolatier 3.0% 0.4% #10 #23
Source: ECRM MarketGate, Share of Weighted Ad Blocks52 Week Ending 2/19/2011 vs. 4 Weeks Ending 5/15/2010
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Several categories compete for front page Mother’s Day ads
May, 2010
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Easter Season Retail Ad Support
Share of Promotions RankCandy Maker Easter 52-Wks Easter 52-WksHershey Foods 28.2% 29.5% #1 #1Mars Chocolate 13.5% 16.3% #2 #2Wrigley (Mars) 9.2% 8.7% #3 #4Just Born 5.7% 1.0% #4 #14Russell Stover 4.8% 4.7% #5 #5Nestle 4.2% 9.8% #6 #3Private Label 4.0% 3.5% #7 #7Lindt & Sprungli 3.8% 1.9% #8 #11R.M. Palmer 3.4% 0.8% #9 #15Cadbury Adams USA 3.0% 3.9% #10 #6
Source: ECRM MarketGate, Share of Weighted Ad Blocks52 Week Ending 2/19/2011 vs. 4 Weeks Ending 4/3/2010
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Mass merchandisers show strong ads support for Easter.
March 28, 2010
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Easter Candy Ads in January
Giant Landover (Kroger Banners)Shoppers Drug Mart and Stop & Shop Baker’s/Dillons/Gerbes
These ads ran over three months before Easter.
January, 2011
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Candy POS Sales
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Unit 52-Week Avg UnitRank 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#8 Butterfinger Bar, 2.1 oz. 36.9 MM $0.64 28000 01159#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
Top 10 U.S. Candy Items – Unit Sales
Single bars rank highest in unit sales
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Dollar 52-Week Avg UnitRank 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. $44.1 MM $0.67 34000 00240#7 Kit Kat, 1.5 oz. $44.0 MM $0.67 34000 00246#8 M&M Peanut, 12.6 oz. Bag $43.9 MM $2.97 40000 24887#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
Top 10 U.S. Candy Items – Dollar Sales
The top 10 in dollar sales include 5 singles 5 multi-packs.
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Dollar Average Unit Price PriceRank 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
#4 Snickers Fun Size 11.18 oz. Bag $2.72 $2.66 Drug Chains Mars
#5 Reeses Pnt Btr Cup, 10.5 oz. Bag $2.60 $2.72 Supermarkets Hershey’s
#6 Hershey's Milk Chocolate, 1.55 oz. $0.65 $0.70 Supermarkets Hershey’s
#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
Candy Pricing By Retail Channel
What’s driving
price gaps across
channels?
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Key Takeaways
• Easter is three weeks later in 2011. Be careful not to promote 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 promotions vary widely by brand.• Mars promotes at a lower price in the drug channel
while Hershey promotes lower prices in supermarkets.
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Recent Studies/Reports: www.PromotionalReflections.com– Top 100 Promoted Brands– Super Bowl Promotions– Holiday Promotions– Promoting the Pet Aisle– Black Friday– Thanksgiving Promotions– Fresh/Perishable Promotions– Halloween Promotions
Circular Logic Blog: www.circularlogic.marketgate.com
Contacts:Scott Whalley 440-528-0417 [email protected] Pirovano 440-528-0418 [email protected]
More on ECRM
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Thank YouQuestions?