ECRM Market Matchup: Cub Foods vs. Target vs. Walmart ... · PDF fileECRM Market Matchup: Cub Foods vs. Target vs. Walmart ... • Product Mix Comparison • Marketing Strategies

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ECRM Market Matchup:

Cub Foods vs. Target vs. Walmart

Minneapolis, MN

ECRM’s promotional analytics & reporting provides the most comprehensive information needed to increase profits, predict competitive trends and make better decisions.

Confidential and Proprietary to ECRM 1

INDEX:

• Methodology & Definitions

• Circular Design & Pricing Trends

• Product Mix Comparison

• Marketing Strategies


METHODOLOGY & DEFINITIONS:

Feature Ad Block Count: Feature Ad count gives credit to every unique product in

an ad block. Each instance of a product promotion in an ad block assigns a Feature Ad Count of 1 for that product.

Effective Ad Block Count: This measure gives shares credit for an ad block among

all products included. If 4 products share an ad block each receives a 0.25 count for that particular promotion.

Percent of Space: We measure and aggregate the percent of physical space each

brand receives in a particular channel of trade or even at a specific retail chain.

Time Periods:

• Prior Year : 8/26/2012 – 8/24/2013• Current Year : 8/25/2013 – 8/23/2014


Circular Design & Pricing Analysis:• Circular Design

A birds eye view of the style of circulars Cub, Target, & Walmart release, in terms of metrics including page count, frequency, price transparency, and ad count

• Pricing ComparisonSee whether a basket of goods purchased at both retailers costs the same

• Pricing Variation Over TimeDoes one retailer change prices or discount rates more frequently than the other?

• Product Level Price Point VariationDoes one retailer have product offerings across a wider

variety of price points?

• Front Page Pricing StrategyAre front page items similarly priced to comparable items on other circular pages?

• Year over Year Pricing AnalysisHow aggressive are retailers in raising prices this year compared to the year prior?


COMPARING CIRCULAR DESIGNMetrics like these help you understand the design and strategy behind retailer’s

circular layouts.

Here we can see that Cub Foods has the fewest pages per circular and trending even

fewer. They are also cutting back in ads per page. Walmart has the most pricing

transparency Y/Y. Cub, with its stronger promotional focus on grocery, average about

twice as many ad blocks per page. Target is adding pages per circular Y/Y but they

are becoming less transparent in pricing.

PL = Private Label


Cub Foods Target Walmart

Current Prior Current Prior Current Prior

Circular Count 53 53 58 58 95 82

Pages per Circular 7.1 7.7 26.5 24.7 13.9 15.3

Ad Blocks per Page 19.8 25.4 8.7 8.7 10.3 9.8

% of Ads with Pricing 95.1% 92.7% 89.6% 92.5% 98.6% 98.5%

PL % of Total Ad Blocks 14.9% 14.4% 17.1% 14.9% 8.8% 8.6%

PRICE BASKET CONTENTS AND METHODOLOGY

This comparative basket of goods was developed by analyzing the most frequently promoted items across the three select retailers.

Of seventy-two total observed months (twenty-four per retailer) their count of monthly specific observations is stated on the right.

To control for size & quantity variations, all units were standardized to a single unit size & quantity.

On the occasion that a month’s data point was not

available, where appropriate, this analysis used the most recently seen price point at that retailer.


Product Size Observations TotalCub Target Walmart

Frito Lay Lay's Potato Chips 10 oz. 23 23 13 59

Tide Laundry Detergent 150 oz. 19 24 14 57

Bounty Paper Towels 8 roll 14 24 14 52

Sunshine Cheez-It Crackers 7 oz. 22 17 10 49

Pepsi Products 12 ct./pk. 22 24 2 48

Nabisco/Christie Oreo Cookies 16.6 oz. 19 16 10 45

Kellogg's Pop-Tarts 12 ct./pk. 18 10 16 44

M&M's Packaged Candy 12.6 oz. 8 22 14 44

Kraft Packaged Cheese 8 oz. 18 14 11 43

Pepsi Soft Drinks 12 ct./pk. 24 9 10 43

Coca-Cola Soft Drinks 12 ct./pk. 24 6 11 41

Gatorade 8 ct./pk. 12 19 10 41

Angel Soft Bath Tissue 12 ct./pk. 11 18 11 40

Chef Boyardee Canned Pasta 15 roll 19 3 17 39

Dove Bar Soap 8 ct./pk. 10 19 10 39

Totino's Pizza Rolls Frozen Prepared Food 40 oz. 19 6 14 39

Lysol Household Cleaners 19 ct./pk. 13 10 15 38

Pantene Pro-V Shampoo 12.6 ct./pk. 14 20 4 38

Aleve Pain Reliever 100 ct./pk. 14 10 12 36

Nestle Carnation Coffee-Mate Refrigerated Creamer 32 oz. 17 11 8 36

PRICE BASKET SUPPLEMENTAL DATA METHODOLOGY

In the price basket analysis, and due to the irregular nature of promotions, we

supplement missing data with the nearest and most relevant promotions for that

retailer to sustain comparative integrity.

This chart shows, of the twenty total price basket products, how many were actually

observed in the given month.


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Cubs Target Walmart

BASKET OF GOODS PRICE COMPARISONUsing the standardized pricing basket of the top 20 promoted goods, we can see that

in general, Cub competed well with both Target and Walmart. Unlike the Mass

merchandisers, Cub’s pricing is trending downward.

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$125

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Cub Target WalmartAverage Basket Price

Cub : $93.36

Target : $95.34

Walmart : $100.80


VARIATION IN PRICES

The Coefficient of Variation measures the percentage of variation from the average price each product averaged

over the 24 month period. While the Standard Deviation measures the variation but shows it in average currency

variation instead of percent of change.

Excessive price variation may train customers to hold off on purchases until a discounted price becomes available.

Walmart averaged the least price variation among the basket of top promoted products.


ProductCub Target Walmart

Variation St. Dev Variation St. Dev Variation St. Dev

Frito Lay Lay's Potato Chips 14.0% $0.48 73.8% $7.83 62.6% $1.79

Tide Laundry Detergent 16.4% $0.40 11.7% $0.31 6.6% $0.14

Bounty Paper Towels 10.1% $0.27 16.7% $0.47 6.5% $0.18

Sunshine Cheez-It Crackers 13.5% $0.43 14.4% $0.50 18.1% $0.64

Pepsi Products 7.9% $0.94 7.6% $0.91 4.4% $0.53

Nabisco/Christie Oreo Cookies 25.0% $0.81 22.9% $0.55 12.4% $0.27

Kellogg's Pop-Tarts 16.0% $0.22 10.5% $0.13 21.0% $0.22

M&M's Packaged Candy 14.1% $0.42 12.7% $0.46 7.3% $0.24

Kraft Packaged Cheese 13.8% $0.44 15.9% $0.49 6.7% $0.17

Pepsi Soft Drinks 21.7% $0.32 15.6% $0.20 17.3% $0.24

Coca-Cola Soft Drinks 11.5% $1.21 22.8% $2.05 31.7% $4.02

Gatorade 31.9% $0.51 24.3% $0.38 28.8% $0.46

Angel Soft Bath Tissue 7.4% $0.07 5.4% $0.05 10.9% $0.09

Chef Boyardee Canned Pasta 12.9% $0.16 13.5% $0.19 10.9% $0.14

Dove Bar Soap 15.0% $0.28 15.8% $0.38 2.0% $0.04

Totino's Pizza Rolls Frozen Prepared Food 18.8% $2.49 18.3% $2.41 30.2% $3.61

Lysol Household Cleaners 31.7% $0.03 32.7% $0.03 7.5% $0.01

Pantene Pro-V Shampoo 22.3% $1.06 26.4% $1.20 2.5% $0.13

Aleve Pain Reliever 23.9% $0.39 27.7% $0.49 10.4% $0.14

Nestle Carnation Coffee-Mate Refrigerated Creamer 9.5% $0.06 9.5% $0.06 15.8% $0.10

Average 16.9% $0.55 19.9% $0.96 15.7% $0.66

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$1.98 $2.22 $2.50 $2.75 $3.00 $3.32 $3.33 $3.49 $3.66 $3.88 $3.99 $4.00 $5.99

Cub Target Walmart

PRICE POINTS WITHIN PEPSI SOFT DRINKSNet Unit Prices for 12 ounce, 12 pack cans. Comparing Net Unit Pricing shows the

wide variety of price points possible when you consider the implications of offers and

incentives, even for a fairly commoditized product.

Cub Foods - Minneapolis, MN

Front (3) – 8/25/2013 Target - Minneapolis, MN

Front (1) – 5/19/2013


Walmart - Minneapolis, MN

Wrap (21) – 6/29/2014

PREMIUM PAGE PRICING STRATEGYThis analysis looks at the pricing discount on the front, back, and wrap pages for

products compared to where seen in the middle pages at that same retailer.

Premium pages can be a great place to drive traffic with competitive pricing.

Based on this comparative product basket, Cub and Walmart are more aggressive with their pricing on their premium pages, while Target more commonly leverages the space to pad their margins.


Product Cubs Prem Mid Target Prem Mid Walmart Prem Mid

Frito Lay Lay's Potato Chips -13.7% 35 3 -15.4% 17 26 +0.7% 14 3

Tide Laundry Detergent -1.0% 21 4 -2.4% 35 71 -4.8% 14 7

Bounty Paper Towels 15 +4.1% 32 48 +7.7% 12 10

Sunshine Cheez-It Crackers -8.4% 15 33 -11.5% 5 14 +6.1% 4 7

Pepsi Products -15.9% 129 63 -10.1% 46 52 2

Nabisco/Christie Oreo Cookies -16.7% 17 16 -4.6% 6 21 -3.2% 9 4

Kellogg's Pop-Tarts -8.0% 19 14 -14.8% 2 9 -0.9% 13 19

M&M's Packaged Candy +13.6% 3 5 +2.6% 11 43 -0.2% 17 8

Kraft Packaged Cheese -26.5% 30 14 +0.7% 3 26 -5.1% 13 6

Pepsi Soft Drinks -18.8% 149 66 +3.3% 5 7 -12.8% 10 6

Coca-Cola Soft Drinks -9.5% 156 53 -28.7% 1 8 -8.8% 10 3

Gatorade -7.8% 13 6 +12.5% 11 42 -16.7% 7 6

Angel Soft Bath Tissue +11.5% 16 7 -1.4% 3 21 -2.4% 9 6

Chef Boyardee Canned Pasta -7.4% 47 2 -10.3% 1 2 +17.2% 18 14

Dove Bar Soap -15.1% 5 10 -3.8% 4 23 +9.8% 5 9

Totino's Pizza Rolls Frozen Prepared Food -8.7% 18 18 +32.9% 3 6 -6.8% 13 17

Lysol Household Cleaners -7.8% 11 5 +216.5% 1 10 -1.3% 11 6

Pantene Pro-V Shampoo -1.8% 9 7 +8.9% 6 21 +80.9% 2 2

Aleve Pain Reliever -6.6% 11 8 10 -33.3% 6 7

Nestle Carnation Coffee-Mate Ref. Creamer -17.1% 3 19 +4.3% 2 12 +10.1% 3 8

Total Basket -5.5% 722 353 +14.0% 194 472 -4.6% 192 148

YEAR OVER YEAR PRICING CHANGES

Comparing the prior

year net unit price per

standardized unit to

the current year can

provide great insight

into the overall pricing

environment.

For the 20 Price Basket

items, Cub Foods has

been able to reduce

pricing Y/Y while

Walmart and Target

had to raise prices.


Product Cub Target Walmart

Frito Lay Lay's Potato Chips +16.0% +9.5% +5.1%

Tide Laundry Detergent -1.9% +1.2% -3.3%

Bounty Paper Towels -14.0% -1.6% -2.1%

Sunshine Cheez-It Crackers +2.0% +10.3% +3.5%

Pepsi Products -13.2% +16.9% -4.2%

Nabisco/Christie Oreo Cookies -13.4% +5.8% +1.7%

Kellogg's Pop-Tarts -6.2% -1.4% +5.4%

M&M's Packaged Candy -4.2% +2.1% -10.6%

Kraft Packaged Cheese -14.1% +0.7% -0.8%

Pepsi Soft Drinks -12.3% -8.4% +0.1%

Coca-Cola Soft Drinks -7.0% +1.0% +38.3%

Gatorade -1.6% +3.2% -7.0%

Angel Soft Bath Tissue -10.5% -3.2% -5.8%

Chef Boyardee Canned Pasta -9.5% +15.6% +12.0%

Dove Bar Soap -9.7% -2.0% +8.8%

Totino's Pizza Rolls Frozen Prepared Food -7.4% -14.0% -14.0%

Lysol Household Cleaners -46.7% +128.4% +6.3%

Pantene Pro-V Shampoo +1.6% +0.8% +53.9%

Aleve Pain Reliever +5.9% +10.3% +5.8%

Nestle Carnation Coffee-Mate Ref. Creamer +7.0% +1.5% +0.1%

Total Basket -6.2% +3.6% +1.9%

Product Mix:

• Top Segments, & CategoriesSee the largest differences in how these retailers choose

to allocate their space

• Top 25 Brands & Manufacturers Share of VoiceWhich brands and manufacturers receive the most

Promotional Support

• Private Label Share of Ad CountAre retailers over-promoting their own goods at the

expense of branded products?

• Investigate Targeted MarketingLook for key product types such as Organic or Locally

grown.

• Product Variety ComparisonAre retailers pushing the same products every week?


COMPARING CIRCULAR SPACE BY SEGMENTSegment level circular share of space for current year circulars only. Segment level

data gives you a bird’s eye view of circular strategy and product mix.

Cub commits significant amounts of their ads to Fresh that is unopposed by

Target and Walmart. Though Target is a contender in food sales, they

promote Apparel, Housewares, and Electronics far more.


Segment Cub Target WalmartDry Grocery 26.1% 8.0% 14.6%

Fresh 41.4% 1.8% 3.5%

Grocery Perishable 14.9% 2.5% 11.6%

Apparel 0.0% 19.9% 5.7%

Housewares 0.6% 18.1% 6.5%

Electronics 0.1% 10.8% 9.2%

Personal Care 3.8% 5.7% 8.3%

Toys 0.1% 9.2% 7.5%

Health Care 2.4% 2.5% 6.6%

School & Office Supplies 0.1% 5.2% 5.8%

All Other Segments 10.5% 16.2% 20.9%

DIFFERENCES IN CIRCULAR SPACE BY CATEGORY - CUBThis table shows the top ten categories by share of circular space for Cub compared

to the others. These are the top Categories where Cub holds the promotional

competitive advantage.

Compared to Target and Walmart, Cub commits the

most space to Fresh Fruit and Vegetables, & Meat.


Category Cub Advantage Target Walmart

Meat 12.38% +9.88% 0.90% 1.60%

Fresh Fruit 8.31% +7.68% 0.31% 0.31%

Fresh Vegetables 5.18% +4.98% 0.09% 0.11%

Seafood 2.89% +2.60% 0.15% 0.14%

Floral 2.47% +2.38% 0.00% 0.09%

Bakery In-Store 2.97% +2.23% 0.09% 0.66%

Deli 2.15% +2.08% 0.02% 0.05%

Poultry 2.21% +1.98% 0.14% 0.09%

Canned Foods 3.56% +1.96% 0.24% 1.36%

Snacks 5.43% +1.44% 1.59% 2.41%

DIFFERENCES IN CIRCULAR SPACE BY CATEGORY - TARGETLastly, this table shows the Target’s top ten categories by share of circular space

compared to the others. These are the top Categories where Target holds the

promotional competitive advantage.

Target’s focus on Apparel is almost entirely

unopposed by Cub.


Category Target Advantage Cub Walmart

Women's Apparel 6.44% +5.07% 0.00% 1.37%

Kids' Apparel 6.03% +4.56% 0.00% 1.47%

Domestics 3.95% +2.67% 0.00% 1.29%

Furniture 2.68% +2.35% 0.00% 0.33%

Storage&Organization 2.53% +2.25% 0.00% 0.29%

Men's Apparel 2.96% +1.86% 0.00% 1.10%

Home Decor 2.03% +1.56% 0.03% 0.44%

Audio Electronics 2.39% +1.38% 0.00% 1.01%

Accessories 2.72% +1.38% 0.00% 1.34%

Shoes 1.79% +1.38% 0.00% 0.41%

DIFFERENCES IN CIRCULAR SPACE BY CATEGORY - WALMARTThis table shows the top ten categories by share of circular space for Walmart compared

to the others. These are the top Categories where Walmart holds the promotional

competitive advantage.

Walmart, leads the way with General Merchandise

categories.


Category Walmart Advantage Cub Target

Maintenance Items 1.59% +1.55% 0.01% 0.03%

Facial Care 1.08% +1.40% 0.08% 0.61%

Office Supplies 1.67% +1.39% 0.05% 1.27%

Skin Care 0.71% +1.03% 0.08% 0.29%

Auto Tools&Equipment 0.31% +0.66% 0.00% 0.01%

Diet 0.37% +0.63% 0.06% 0.02%

Bath Specialty 0.30% +0.53% 0.00% 0.04%

Analgesics 0.64% +0.51% 0.21% 0.19%

Digestives 0.74% +0.50% 0.12% 0.40%

Bundles 0.36% +0.50% 0.00% 0.15%

TOP 25 BRANDS SHARE OF VOICE AND SPACEThe Share of Voice is each brand’s share of Total Effective ad count while the Share of

Space is the brand’s cropped ad block share of the total pixel count. Fresh Grocery, In-house bakery, and Undefined Manufacturers and Brands were excluded.

When Share of Space exceeds Share of Voice, the ads are larger than average.


Walmart-US

BrandShare of

VoiceShare of

Space

Mainstays 2.08% 1.76%

Great Value 1.78% 1.45%

Spring Valley 1.20% 1.48%

Better Homes and Gardens 0.92% 0.64%

Samsung 0.89% 1.05%

Fruit of the Loom 0.87% 0.85%

Faded Glory 0.80% 0.62%

VIZIO 0.73% 0.83%

Straight Talk 0.64% 0.50%

Wal*Mart 0.55% 0.24%

HP (Hewlett Packard) 0.53% 0.64%

Glidden 0.48% 0.15%

Equate 0.47% 0.22%

Activision Blizzard 0.44% 0.44%

Russell Athletic 0.44% 0.35%

Lego 0.43% 0.26%

Pennington 0.41% 0.25%

Marketside 0.40% 0.31%

SodaStream 0.38% 0.26%

VTech 0.38% 0.27%

Galaxy S 0.37% 0.54%

Gold's Gym 0.37% 0.37%

Dove 0.37% 0.34%

Danskin 0.37% 0.44%

Special K 0.36% 0.47%

Target Stores

BrandShare of

VoiceShare of

Space

Threshold 4.00% 5.53%

Up & Up 3.49% 2.76%

Room Essentials 2.82% 4.13%

C9 by Champion 1.95% 3.66%

Cherokee 1.81% 2.39%

Market Pantry 1.80% 1.22%

Mossimo 1.44% 3.31%

Circo 1.38% 2.29%

Merona 1.04% 2.48%

Xhilaration 0.88% 1.44%

Archer Farms 0.71% 0.47%

Activision Blizzard 0.70% 0.54%

Galaxy S 0.67% 0.77%

Samsung 0.67% 0.88%

Simply Balanced 0.62% 0.38%

Hanes 0.51% 0.81%

Wii U 0.50% 0.26%

3DS 0.45% 0.26%

Fieldcrest 0.44% 0.59%

Philips 0.43% 0.50%

Pepsi 0.42% 0.31%

Coca Cola 0.40% 0.30%

Tide 0.37% 0.47%

Sterilite 0.35% 0.47%

EA 0.34% 0.15%

Cub Foods

BrandShare of

VoiceShare of

Space

Essential Everyday 6.91% 5.82%

Cub Foods 4.15% 8.96%

Always Tender 1.44% 2.98%

Wild Harvest 1.26% 0.94%

Oscar Mayer 1.14% 1.22%

Arctic Shores 0.89% 0.79%

Kraft 0.88% 1.22%

Jennie-O Turkey Store 0.70% 0.77%

Kemps 0.70% 0.84%

Old Dutch 0.70% 0.56%

Farmstand 0.68% 1.07%

Baby Basics 0.68% 0.38%

Crystal Farms 0.65% 0.58%

Hershey's 0.64% 0.60%

Campbell's 0.63% 0.62%

Equaline 0.62% 0.51%

Gold'N Plump 0.61% 0.82%

Pillsbury 0.53% 0.45%

Betty Crocker 0.51% 0.49%

Fresh Express 0.49% 0.90%

Cub Signature 0.47% 0.58%

Johnsonville 0.46% 0.39%

Marie Callender's 0.40% 0.34%

Shoppers Value 0.39% 0.32%

Pampers 0.38% 0.24%

TOP 25 MANUFACTURERS SHARE OF VOICE AND SPACEThe Share of Voice is each manufacturer’s share of Total Effective ad count while the

Share of Space is the manufacturer’s cropped ad block share of the total pixel count.


Due to many various products, Private Label Brands & Manufacturers tend to Rank the highest.

Cub Foods

BrandShare of

VoiceShare of

Space

Supervalu Inc. Private Brand 13.08% 11.38%

Cub Foods Private Brand 4.62% 9.55%

Kraft Foods 3.79% 4.21%

Hormel Foods Corp 3.76% 5.45%

Procter & Gamble Company 3.59% 2.72%

General Mills 3.50% 3.88%

Nestle S.A. 3.26% 3.01%

ConAgra Foods Inc. 2.00% 1.88%

Unilever 1.71% 1.49%

Kellogg NA Co. 1.66% 1.75%

Campbell Soup Company 1.55% 1.66%

Pepsi-Cola 1.30% 1.78%

Coca Cola USA 1.20% 1.62%

MillerCoors, LLC 1.09% 0.69%

Frito-Lay, Inc. 0.94% 1.45%

Hillshire Brands 0.93% 0.80%

Mondelez International, Inc. 0.92% 1.04%

J.M. Smuckers Company 0.92% 0.84%

Pinnacle Foods Corporation 0.89% 0.95%

Kimberly-Clark Corp. 0.86% 0.63%

Gerber Products Co 0.83% 0.55%

Anheuser-Busch Companies, Inc 0.83% 0.51%

The Hershey Company 0.82% 0.74%

E&J Gallo Winery 0.80% 0.49%

Old Dutch Snack Foods Ltd. 0.80% 0.66%

Target Stores

BrandShare of

VoiceShare of

Space

Target Private Brand 18.12% 22.63%


Hanesbrands Inc. 2.51% 4.58%

Iconix Brand Group, INC 1.89% 3.92%

The Cherokee Group, Inc. 1.81% 2.39%

Samsung America Inc. 1.61% 2.03%

Nestle S.A. 1.35% 0.98%

20th Century Fox 1.31% 0.45%

Mattel Toys 1.23% 1.27%

Pepsi-Cola 1.23% 0.71%



Hasbro, Inc. 1.16% 1.28%

Coca Cola USA 1.16% 0.69%

Universal Studios 1.13% 0.46%

Nintendo Co., Ltd. 1.12% 0.66%

Warner Bros. Entertainment 1.10% 0.52%


Philips 1.04% 1.03%

Apple Inc. 1.03% 1.22%


Clorox Company 0.85% 0.62%Sony Pictures Home Entertainment 0.79% 0.35%

Paramount Home Video 0.71% 0.29%

Sterilite Corporation 0.71% 1.01%

Walmart-US

BrandShare of

VoiceShare of

Space

Wal*Mart Private Brand 10.24% 8.32%





Samsung America Inc. 1.70% 2.05%

Hasbro, Inc. 1.56% 1.32%

Kellogg NA Co. 1.55% 2.16%

Newell Rubbermaid 1.51% 1.10%

Mattel Toys 1.44% 1.14%

ConAgra Foods Inc. 1.25% 2.09%

Nestle S.A. 1.22% 1.78%

Fruit of the Loom Ltd. 0.94% 0.91%

Iconix Brand Group, INC 0.94% 0.87%

Clorox Company 0.93% 0.72%

The Scotts Company 0.82% 0.62%

L'Oreal Paris 0.73% 0.88%

VIZIO, Inc. 0.73% 0.83%

TracFone Wireless, Inc. 0.73% 0.52%

J.M. Smuckers Company 0.69% 0.74%Reynolds Consumer Products, Inc. 0.68% 0.39%

Campbell Soup Company 0.67% 0.93%

Hewlett Packard 0.66% 0.87%Reckitt Benckiser Consumer Products, Inc. 0.65% 0.41%


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Cub

Target

Walmart

CONSOLIDATION IN ADVERTISED BRANDSCumulative Share of Space for Top 50 Brands in Current Year Circulars. This metric shows

how each retailer chooses to allocate its ad space among brands, be it with the larger

macro brands or with more niche brands to match nuanced consumer tastes.

Top 50 Brands Total Circular SpaceCub : 40.57%

Target : 29.70%Walmart : 25.15%


SUB-CATEGORY SATURATION BY CIRCULARUsing a similar concept, this graph displays the Effective Ad Count per featured sub-category

for current year circulars. This metric can provide insight into whether retailers are branching

out their offerings across many sub-categories or have a more narrow focus.

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Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14

Cub

Rainbow

Walmart


TOP ADVERTISED BEVERAGE BRANDSThis compares the top brands share of category space for the adult beverage

category in current year circulars.

Beverage is a good example of the importance of product mix, as

consumers tastes have been evolving towards a greater variety of offerings.


Cub Space

Pepsi 7.8%

Mountain Dew 7.7%

Diet Pepsi 7.7%

Diet Coke 7.3%

Coca Cola 7.2%

Sprite 6.7%

Aquafina 4.5%

Ocean Spray 3.7%

Gatorade 2.8%

7up 2.7%

Top 10 Total 58.2%

Target Space

Pepsi 16.9%

Coca Cola 16.2%

Gatorade 6.1%

Dasani 5.9%

Vitaminwater 5.8%

Smartwater 5.6%

7up 4.1%

Martinelli's 3.1%

Aquafina 2.9%

Capri Sun 2.9%

Top 10 Total 69.5%

Walmart Space

Coca Cola 17.7%

Kool-Aid 14.9%

Pepsi 6.4%

Capri Sun 5.4%

5-Hour Energy 5.0%

Lipton 4.8%

V8 4.3%

International Delight 4.0%

Crystal Light 3.4%

V-Fusion 3.3%

Top 10 Total 69.2%

PRIVATE LABEL CIRCULAR SHARE OF VOICE BY CATEGORYTop cases of private label share of category space in current year circulars. This view

shows you where retailers are promoting their private label products exclusively or by

a majority. It’s evident that smaller, niche categories can sometimes be dominated

by private label offerings.


Cub Space

Diabetes 100.00%

Maintenance Items 100.00%

Clothing Care 100.00%

Cosmetic Accessories 83.33%

Meat 44.25%

Eye/Ear Care 43.84%

Office Supplies 39.14%

Fresh Potatoes 36.31%

Paper Products 35.59%

Baby 28.57%

Walmart Space

Wine/Sparkling 100.00%

Packaged Salads 92.05%


Domestics 75.26%

Home Decor 62.00%

Vitamin Supplements 59.93%

Camping Equipment 55.61%

Furniture 54.58%

Clothing Care 51.90%

Store Prepared Food 43.36%

Target Space

Seafood 100.00%

Diagnostics 98.58%

Furniture 93.91%

Store Prepared Food 84.16%


Home Accessories 81.02%

Diabetes 74.27%

Domestics 67.35%

Home Decor 65.26%

Refrigerated Prepared

Foods58.27%

SHARE OF PRIVATE LABEL SPACE BY CATEGORYCategory share of private label space in current year circulars. This view shows which

categories hold the majority of each retailer’s private label share of space. Cub

displayed slightly more variety in product mix, with the top 10 categories accounting

for 75% of their total private label circular space.


Cub Space

Meat 35.35%

Frozen 9.03%

Dairy 8.66%

Deli 3.75%

Seafood 3.69%

Snacks 3.38%

Fresh Vegetables 3.09%


Beverage 2.62%

Canned Foods 2.55%

Walmart Space

Vitamin Supplements 17.87%

Domestics 13.30%

Picnic, Patio & Outdoor

Living6.39%

Frozen 6.36%

Camping Equipment 4.59%

Canned Foods 4.10%

Home Decor 3.75%

Meat 3.75%

Kids' Apparel 3.72%

Women's Apparel 3.32%

Target Space

Domestics 13.84%

Furniture 13.09%

Women's Apparel 11.70%

Home Decor 6.91%

Kids' Apparel 6.46%

Storage&Organization 4.62%

Picnic, Patio&Outdoor Living 3.53%

Kitchen&Tabletop 3.04%


Men's Apparel 2.74%

LOCAL/ORGANIC PRODUCT SHARE OF FRESH SPACEShare of fresh segment space allocated to local and fresh products in circulars. While

this does not necessarily say anything about in store product mix, it shows that during the

fall, Cub has been more active in marketing these aspects of its fresh products. Walmart

rarely ever explicitly advertises any of their fresh products as Local or Organic.


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Cub Foods Target Walmart

PRODUCT REPETITION OVER TIMEThis graph displays the percentage of products featured in each week’s circulars that

were also featured in the prior week’s circulars.

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60%

Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14

Cub Target Walmart


Marketing Strategy:

• Price TransparencyAre retailers showing their prices to the consumer?

• Compare ExclusivityAre ad blocks sharing space? Are larger

manufacturers getting preferential treatment?

• Offer Type ComparisonAre different retailers trying different promotions to

change consumer behavior?


DIFFERENCES IN PRICE TRANSPARENCY BY SEGMENTThis table shows the percentage of ad features that have pricing information included

in them. The remaining either focus on a specific offer or are brand equity ads.

Target ranks lowest in pricing transparency.

Walmart’s EDLP (Ever Day Low Price) strategy results in significantly higher

pricing transparency across all segments.


Cub Target Walmart

Dry Grocery 99.1% 86.3% 96.1%

Personal Care 84.2% 56.0% 99.3%

Electronics 100.0% 95.8% 91.9%

Toys 28.1% 75.4% 99.5%

Fresh 96.2% 73.4% 97.8%

Housewares 61.3% 86.4% 99.5%


Apparel 70.8% 93.2%

Household Products 99.7% 82.3% 100.0%

Health Care 67.6% 47.4% 97.5%


All Others 84.6% 75.0% 97.3%

All Ads 93.2% 77.6% 97.1%

DIFFERENCES IN MANUFACTURER EXCLUSIVITY BY SEGMENTWithin current year circulars, this table shows what percentage of ad features did not

feature multiple manufacturers in the same ad block.

Target is most likely to share ad blocks and promotional offers among

multiple Manufacturers.


Cub Target Walmart

Dry Grocery 82.7% 66.0% 89.8%

Personal Care 95.3% 74.9% 97.2%

Electronics 100.0% 74.3% 68.8%

Toys 100.0% 66.0% 75.7%

Fresh 96.0% 91.7% 97.4%

Housewares 96.0% 91.3% 97.3%


Apparel 82.4% 92.2%

Household Products 98.6% 80.9% 97.4%

Health Care 89.0% 90.2% 97.6%


All Others 56.1% 84.8% 93.1%

All Ads 85.3% 77.7% 90.0%

DIFFERENCES IN EXCLUSIVITY BY MANUFACTURERThis table allows you to see how aggressive retailers are in sharing ad space for each

group of manufacturers grouped by their share of voice in current year circulars.

Cub Foods most frequently shared ad blocks among

Manufacturers in the mid-third cluster. They also were much more likely to

share ads among private brand products and fresh.


Cub Target Walmart

Private Brand and Fresh 99.2% 75.4% 96.3%

Top-Cluster Manufacturers 85.3% 82.8% 73.1%

Mid-Cluster Manufacturers 89.6% 73.9% 64.6%

Bottom-Cluster Manufacturers 86.2% 79.7% 72.3%

Total 86.9% 79.3% 70.6%

OFFERS TYPE USAGE BY RETAILERIn current year circulars, these are the most seen offer types attached to products.

Cub utilizes X/For offers more frequently than Target and Walmart.

Walmart’s EDLP (Every Day Low Price) Strategy is strongly reflected in their

promotional types.


Cub Target Walmart

PRICE POINT 57.9% 78.8% 98.4%

X/FOR 35.0% 7.1% 0.2%

SAVE $ 2.3% 8.8% 0.1%

BOGO 4.2% 2.8% 0.0%

INCENTIVE 0.5% 2.1% 0.2%

OTHER 0.1% 0.4% 1.2%

Documents

ECRM Market Matchup: Cub Foods vs. Target vs. Walmart ... · PDF fileECRM Market Matchup: Cub Foods vs. Target vs. Walmart ... • Product Mix Comparison • Marketing Strategies