Académique Documents
Professionnel Documents
Culture Documents
RETAIL MANAGEMENT
GROUP 6
Nolan’s
Nolan’s Finest Foods is a
full-service retailer that
offers shoppers the
convenience of one-stop
shopping at its high-end
food-and-drug combo
stores in the San
Francisco Bay area.
vO ffe rs h ig h q u a lity fo o d w ith p ro m o tio n a l
p ricin g .
vIn th e fa ce o f h ig h co m p e titio n , N o la n ’ s is
experimenting with category
m a n a g e m e n t. 2
Question1: What are the national sales trends in the shampoo category?
Total U.S. Supermarket Dynamics: Shampoo
52 Weeks % Active UPCs % New UPCs # UPCs UPC Dollar
Handled Velocity
Category 1,974 15% 235 $ 1.64
Exhibit 1
3
Question1:Cont
E x h ib it 3
Shampoo Growth O u tlin e s S h a m p o o G ro w th b a se d
Trade Channel Dollar Sales % Change o n th e D o lla r S a le s % ch a n g e
Compared to a Year ago
Food 0.9% ve rsu s a ye a r a g o .
Drug 4.2%
Mass merchant 8.1% v T h e M a ss M e rch a n t Tra d e
C h a n n e le xp e rie n ce d th e
g re a te st g a in (+ 8 . 1 % ).
vFo llo w e d b y th e D ru g
C h a n n e l(+ 4 . 2 % ). 4
Question2: What are the differences in shampoo sales trends at Nolan’s
compared with national trends?
Dollar Sales: Percent Change versus a Year Ago
Market Nolan's
13 weeks 52 weeks 13 weeks 52 weeks
Total dollar sales +0.1 +1.2 - 10.6 - 4.5
Health Beauty Dept. +1.5 +4.2 - 8.5 - 4.3
Shampoo category - 3.5 +0.7 - 19.6 - 9.7
Exhibit 4
vThe Dollar Sales Percentage change in the Shampoo category for
the Market (All food stores) has increased very slightly over a 52-
week period (+0.7%) and moderately declined over the most recent
13 weeks (-3.5%).
vAlthough the national figures are far from impressive, even on an
annual basis, Nolan’s fared far worse. Over a 52-week period the
retailer’s Dollar Sales Percentage sharply declined (-9.7%), and the
last 13 weeks have been worse (-19.6%).
5
Question 3: What would be causing these differences?
Competitive Price Comparison for Shampoo: Counts of Items Showing Differences from Nolan’s
Exhibit 5 :
vCompetitive Price Comparison for Shampoo between Nolan’s and
competitors suggests that Nolan’s pricing may be one factor.
vOnly the Mass Merchandiser consistently charges less for shampoo
products than Nolan’s.
6
QUESTION 3: Cont
Brand Importance Report for Shampoo: Nolan’s Foods versus Remaining Market for 13 weeks
Description Chain Sales Chain Rank Remain Mkt Remain Sales Chain Mkt Chain Cat. Rem. Mkt.
Rank Share Impt. Cat. Impt.
Items Carried
Nolan’s 25 25 15 21 13 5 7
Rem Mkt 25 39 28 42 20 16 28
Sizes Carried
Nolan’s 6 6 6 2 4 1 4
Rem Mkt 7 10 11 3 5 4 6
Types Carried
Nolan’s
6 7 6 19 4 5 6
Rem Mkt
6 10 8 32 5 7 21
Exhibit 7:
Product Mix Summary Report illustrate that Nolan’s product mix are
marginally different than the rest of the market.
8
Question 3: Cont
Slow Seller Report: Shampoo for Nolan’s Foods, 13 Weeks versus a Year Ago
Chain Sales Chain Mkt. Share Rem.Mkt. Growth Chain Growth
Exhibit 8
vSlow Seller Report , which features data describing what Nolan’s’
worst selling shampoo UPCs are, provides the greatest insight into
the problem of any of the information that is currently available
v
v
v
9
11/20/09
10
11/20/09
11