Mushroom Council Retailer Recipe Booklet Findings

1
Mushroom Council Retailer Recipe Booklet Findings

• Prepared For
• Mushroom Council
• Prepared by
• Perishables Group, Inc.
• December 2002

2
Table of Contents

• Page
• Introduction 2
• Objective 3
• Approach 4
• Summary of Findings 6
• Key Findings 8

SaveMart\PrivateLabelResults.ppt
3
Introduction

• The Mushroom Council and the Perishables Group
  Inc. initiated a test to understand how/if a
  recipe booklet featuring white whole and crimini
  mushrooms as a main ingredient increased their
  respective volume and overall sales.
• The recipe booklet was dropped in store on June
  21, 2002 in a retail chain in the Northeast.
• Through analysis of the data we wanted to asses
  the value of such programs at retail by comparing
  store performance before and after the coupon
  drop, as well as versus year ago.

4
Objective

• The main objective of the study was to identify
  key factors that helped increase/decrease the
  white whole and crimini sales during the test
  period.
• Areas of focus included
• Year ago comparisons on volume and dollars.
• Promotional schedules for 2001 and 2002.
• Average weekly movement during the June, July,
  and August time periods versus year ago.
• Average retails during the during the June, July,
  and August time periods versus year ago.

5
Approach

• Summertime Made Easy
• A Special Brand-Sponsored Grilling Recipe Booklet
• Timing June 21 July 21 (while supplies last)
• Total Store Effort 185 Retail Stores in
  Delaware, Maryland, New Jersey, Virginia and
  District of Columbia
• In-Store Visibility Distributed in high-traffic
  areas, including applicable perishable
  departments (meat, seafood, produce) and
  Seasonal aisle(s)
• Quantity 1,200 Great Grilling Booklets per
  store Total circulation 222,000
• Great Consumer Value Summertime Made Easy will
  feature quick easy recipes,
• providing consumers with easy-to-use recipes
  during a key entertaining and family-gathering
  time period

6
Summary of Findings
7
Summary of Findings

• KEY FINDINGS
• 1. Overall mushroom sales declined during June,
  July, and August of 2002. Criminis were not
  promoted during the time period and White Whole
  8oz mushrooms were promoted only once.
• 2. July showed the greatest gains in volume and
  dollars for Criminis and Whole mushrooms which
  was the time period of the recipe booklet drop.
• 3. Recipe booklet advertising did increase
  overall sales during the month of July. Compared
  to June sales, overall Crimini and Whole 8oz
  sales increased positively while the category
  declined.
• 4. Consumers still bought Criminis and Whole
  8oz mushrooms even though retails were higher.
  Retails for Whole white, Criminis, and the
  entire mushroom category were higher all 3 months
  of 2002 versus 2001.
• 5. The recipe booklet was a good spend. The
  booklet drove 3,936 in incremental mushroom
  sales to the supplier after subtracting the ad
  cost of 4,760.

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Key Findings
9
Retailer Scorecard

• Volume and dollars declined during the months of
  June through August. Retail prices increased each
  consecutive month versus year ago. More
  promotions overall were run in 2002, but 50 less
  whole white ads were run and no crimini ads were
  run in either 2001 or 2002.

1
10
2002 versus 2001 comparison

• Although white whole volume was negative all 3
  months, July showed the greatest gains in volume
  and dollars. Criminis performed extremely well
  with the highest gains also in July. This is the
  exact opposite of the rest of the category whose
  performance was the worst in July.

2
11
2002 vs. 2001 Criminis

• Comparing volume in 2002 and 2001 by week
  provides a more detailed observation of the
  effects of the recipe booklet. 2002 reveals an
  upward trend in overall volume during the July
  time period in which the coupon book was
  available while volume declined in 2001.

3
12
2002 vs. 2001 White Whole

• Comparing volume in 2002 and 2001 by week
  provides a more detailed observation of the
  effects of the recipe booklet. 2002 reveals a
  flat trend in overall volume during the July time
  period in which the coupon book was available
  while volume declined in 2001.

4
13
2002 vs. 2001 Rest of Category

• Comparing volume in 2002 and 2001 by week
  provides a more detailed observation of the
  effects of the recipe booklet. For the rest of
  the category, 2002 reveals an downward trend in
  overall volume during the July time period in
  which the coupon book was available while volume
  was fairly flat in 2001.

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14
June versus July Lift

• Recipe booklet advertising did increase overall
  sales during the month of July. Compared to June
  sales, overall Crimini and Whole 8oz sales
  increased positively while the category declined.

6
15
Average Retail Comparison

• Retails for whole white, criminis, and the
  entire mushroom category were higher all 3 months
  of 2002 versus 2001.

7
16
Recipe Booklet Spend Value

• The recipe booklet was a good spend. The booklet
  drove 3,936 in incremental mushroom sales to the
  supplier after subtracting the ad cost of 4,760.

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Receipe Booklet Spend Value (Supplier)
8,696
9000
8199
8000
7000
6000
5000
3,936
4000
3000
2000
1000
0
Incremental Units
Incremental Supplier Dollars
Incremental 's less Ad Costs