A Market Analysis for: Nabisco Chips Ahoy Prepared by Team 3: Michael Deppa Jennifer Jurs Anna Meyer John Boyko Richard Bell Shannon Shaw Shannell Oglesby Submitted To: William R. Forrester, Ph. D Marketing 4430 November 29, 2006-1 -
Table of Contents: Market Definition and Industry Structure...3 Overview...3 Size of the Industry...4 Rate of Growth...4 Stage of the Product Life Cycle...4 Number of Sellers...5 Changing Technology...5 Price...6 Distribution...7 Likelihood of New Competitors...8 Competitor Analysis...9 Company Analysis...11 History...11 Sales and Financials...12 Customer Analysis...15 Customer Demand Estimate...17 Buying Power Index...18 Effective Buying Income...18 Households Purchasing Cookies...19 Cyclical Nature of Sales...19 Demographics Trends...20 Implications and Conclusions...22 Works Cited...24 Appendix...26-2 -
Market Definition and Industry Structure Overview: The Chips Ahoy chocolate chip cookie is a brand of Nabisco, with which Kraft Foods, Inc. owns and operates. Chips Ahoy falls under the NAICS code of 3211821 for the Cookie and Cracker Manufacturing industry. The SIC number is 2052 for the Cookie and Cracker industry. The geographic area that the research will be conducted is for the Atlanta, Sandy Springs and Marietta metropolitan area (Wiklepedia). For a list of counties located within this area see Appendix: Table 1. The time frame for the research to be conducted and analyzed is for three years. Chips Ahoy brand cookies fall in a market that is saturated with substitutes. They are not only competing with manufactures that produce cookies, but they are also competing against other types of cookies within their organization, such as OREO. Snack food products, such as crackers, are also competing in the same market against Chips Ahoy. This would place them in a generic product class, as there is a large group of product types capable of satisfying a need or want. Chips Ahoy has competitors in the chocolate chip cookies segment ranging from mom and pop makers within a region, to national corporations. Some of the major corporate competitors are Chips Deluxe (Kellogg s), Famous Amos, Mrs. Fields, Pepperidge Farms and Toll House (Nestle) (Wiklepedia). General consumers of Chips Ahoy are those who don t need a cookie, but rather have a need for fulfillment through a chocolate chip cookie. - 3 -
Size of Industry: Chips Ahoy falls under the NAICS code of 3211821 for the Cookie and Cracker Manufacturing industry. The SIC number is 2052 for the Cookie and Cracker industry. The Cookies and Cracker industry had sales of $11,295,600,000 in 2004. The industry grew from 2003, but only at a rate of.70% (AIB Online). The snack industry in 2004 had sales of $20.4 billion dollars (Savory Snacks Industry Profile). This means that the Cookie and Cracker Industry had a 55% share of the total snack industry. The cookie industry had sales of four billion dollars at the end of the year in 2003. Sales of chocolate chip cookies were $984 million dollars in 2000, and have had stable growth rates since (Reyes 6). Chips Ahoy has a 40% share on the chocolate chip cookie industry, while their main competitor Kellogg s Keebler has a 37% share (Reyes 6). The cookie and Cracker industry has 351 establishments, with 37,880 employees (Census). Chips Ahoy had 52 weeks sales, as of May 21, 2006, of $310,779,300. This ranks them second in terms of cookies sales, as OREO has sales of $474,749,800 in that same period. Chips Ahoy s chocolate chip competitor Kellogg s Chip Deluxe was fourth in the total cookie sales from the same period with sales of $101,656,500, and Pepperidge Farm s Chocolate Chunk had sales of $83,417,940. Chips Ahoy, for this same time period, had units sold of 127,711,100, while Oreo sold 187,788,000 unites. Chips Ahoy sold 3.04 more unites than Kellogg s Chip Deluxe, and 3.14 more unites than Pepperidge Farms (AIB Online). - 4 -
Rate of Growth: The cookie industry has seen trends of decline in sales over the past few years. For the 52 week period as of May 21, 2006 the cookie industry has declined 1.7% to $3,427,589,000 in sales. Nabisco has seen sales decline 1.1% from 2005, while their main competitors Kellogg s declined 11.6% and Pepperidge Farms increased 2.4% (AIB Online). Nabisco saw a decline in sales in 2004 of 4.0%, while Kellogg s saw sales drop 8% and Pepperidge Farms grew 5.0% (Sosland). In 2003 sales fell.5% for the cookie industry with Kellogg s sales down 4.5%, but Nabisco was able to have a gain of 1.7% (Reyes 14). With Nabisco s rise and fall of the past few years, 2006 is looking promising. The first quarter this year saw Nabisco have revenue growth of 7.1% (Business Wire). Stage of Product Life Cycle: Nabisco s Chips Ahoy cookie was introduced into the market in 1963 (Kraft). The cookie is in the mature stage of the product life cycle, and hopefully will not crumble to the decline stage. The cost of the product varies depending on the retail outlet and the brand and product are established in the marketplace. Sales have been increasing at a decreasing rate and have held rather steady. - 5 -
Number of Sellers: There are a large number of sellers of chocolate chip cookies. According to the U.S. Census Bureau, in 2002 there were 56 companies that sold chocolate chip cookie sandwiches with product shipment value of $548,984,000. In the entire cookie industry there were 292 companies that produced cookies. There are many seller of Chips Ahoy cookies from national brands, to supermarket bakeries, to mom and pop establishments. Changing Technology: Make cookie dough and bake it in the oven. This may seem simple but new research and technology is making its way into the cookie industry. The social responsibility of manufacturing companies is evident in protecting the environment. Companies are introducing pollution abatement equipment, which will mainly be used for the ovens. They are also using propane powered delivery vans that are cleaner burning than gasoline. Some current trend see manufactures using extrusion, which provides less waste and a more energy efficient manufacturing process (Answers). One problem that is facing all cookie makers is uniformity of product. Scientists for Nabisco have found ways to break down pentosans in flour. Pentosans are sugar molecules that affect the rise and fall of dough. The fewer the pentosans will result in a flatter cookie. Researchers are buying enzymes that break down pentosans. The cost is $2.50 per 1,000 pounds of flour. The results, though, saves the company in the long run as the fewer pentosans there are the faster the baking time, allowing the company to produce more cookies faster and cheaper (Answers). - 6 -
Nabisco has introduced a new engineering information management software system called Work Place Active Asset. This allows headquarters and their eleven bakeries to easily share information. They are using this with their engineering drawings, allowing consultants, suppliers and local bakeries to access complex engineering information. Nabisco has also taken advantage of the internet. They have developed an online analytical processing data mart. This enables Nabisco to track sales and consumer preferences. The data mart holds information on sales, price discount, spoilage, transportation and promotional information that can be used by management, financial analysts and salespeople for various purposes (Answers). Price: The price point for Chips Ahoy chocolate chip cookies differs based upon the distributor of them. Chips Ahoy s original cookie, 16 oz. size, at mass merchandisers priced $2.54 at Target and $2.50 at Wal-Mart. Supermarkets sold the cookies at a higher price. Publix had Chips Ahoy s for $3.35, while Kroger had them for $3.39. The main competitors, Kellogg s Chips Deluxe and Pepperidge Farm Chocolate Chunk varied in price, more than Chips Ahoy, at the various locations. Chips Deluxe, for an 18 oz. bag of original cookies, priced $2.54 at Target, $2.50 at Wal-Mart, $3.35 at Publix and $2.75 at Kroger. Chocolate Chunk, for a 7.2 oz. bag of original cookies, priced $2.39 at Target, $2.68 at Wal-Mart, $2.99 at Publix, and $2.99 at Kroger. - 7 -
Distribution: There are many forms of distribution to the customer. Chips Ahoy cookies can be sold to the end user through convenient stores, vending machines, supermarkets and other general stores. Sales in convenient stores have seen an increase in growth of cookie sales. Cookie sales have increased 2%, to a 16.3% of sweet snack sales in convenient stores. The sweet snack sales make up 1.93% of all inside sales (Chipping Away). Supermarkets sold $3,712,100,000 in cookies, while drug stores and mass merchandisers sold $128,000,000 and $627,600,000 respectively (AIB Online). The 56 chocolate chip cookie manufactures have a total shipment value of $558,904,000 in 2002 (U.S. Census). The top cookie vendor is Nabisco, who produces Chips Ahoy brand cookies, with $1,331,500,000 in volume. Nabisco s largest competitor, Kellogg s Keebler, had $420,500,000 in volume. Private label cookie producers totaled $295,100,000 in volume, while Nabisco s third largest competitor Pepperidge Farms, had $269,700,000 in volume (AIB Online). - 8 -
Likelihood of New Competitors: Chips Ahoy cookies fall in a mature stage of the product life cycle. Because they have reached that stage, the likelihood of new competitors is rather low. The new competition that will be a threat to the Chips Ahoy brand would come from large producers such as Kellogg s and Pepperidge Farms introducing a new chocolate chip cookie. For a new manufacturer to build a plant and produce cookies at a scale to compete with Chips Ahoy would be difficult. The market is stalling out and most manufactures have seen a decline in sales. There are two to four main competitors that have a large share of the entire market, as well as having large sales figures. Local, regional cookie manufactures could produce new competition for Nabisco Chips Ahoy, but they would have a higher mark up than a large quantity company. The snack industry as a whole can provide significant competition to Chips Ahoy. Cookies make up part of the processed snacks category that has a 32.6% share of the total snack market. The potato chip manufactures produce the second largest share of the snack industry, with 26.5% (Savory Snacks Industry Profile). Both combined make up over half of the total value of products sold as snacks. The snack industry provides an abundance of choices for individuals to choose from, and directly compete against Chips Ahoy. - 9 -
Competitor Analysis Chips Ahoy s has competition in the chocolate chip cookie market through many competitors including Chips Deluxe (Kellogg s), Famous Amos, Mrs. Fields, Pepperidge Farms (Chocolate Chunk), and Toll House (Nestle). Their main competitors are Chips Deluxe and Chocolate Chunk. Chips Ahoy is a Nabisco brand that is owned by Kraft Foods. Chips Deluxe is a Keebler brand that is owned by the Kellogg Company and Chocolate Chunk is a Pepperidge Farms brand that is owned by the Campbell Soup Company. The following is a brief SWOT analysis on the Kellogg Company and the Campbell Soup Company as a whole (Source: Datamonitor). Kellogg Company: Strengths: Market leadership, High brand equity, Consistent operating performance and high returns. Weaknesses: Dependence on a single customer, lack of diversification and high debt-equity. Opportunities: Growing health consciousness, Demand from India and Growth in Latin America. Threates: Increasing fuel prices and intense competition Campbell Soup Company: Strengths: Fast new product introductions, Strong performance in nonsoup segments, improved performance in international markets and leading global brands. Weaknesses: Rising marketing expenditures and reliance on the U.S. Opportunities: Innovative products and packaging, growth in Asia-Pacific markets and improved cost savings. Threats: Strong pricing pressure from competition, low adoption rates for new products and fluctuations in raw material prices. The cookie industry is an industry that is driven on impulse purchasing of consumers. Therefore, it is extremely important that companies are choosing effective strategies to increase the appeal of their products and encourage the purchase of their - 10 -
products. Advertising is a very critical marketing tool because it promotes awareness for smaller companies and it serves as a means of reinforcement for larger companies. Currently Chips Ahoy brand cookies are second in terms of amount of money spent on advertising. Nabisco is spending $18.8 million in media ad spending, while their largest competitor Chips Deluxe spends only $3.3 million in media ad spending. Chips Ahoy spends almost 5.5 times more on advertising than Chips Deluxe. In relation to market share of the entire cookie industry, Chips Ahoy has a nine percent share and Chips Deluxe has a 3.4% share. Chip Ahoy is spending $2.08 million per market share percentage, while Chips Deluxe is only spending $1.03 million for every market share percent (Thompson). - 11 -
Company Analysis: History: Nabisco is a brand owned by Kraft Foods North America and Kraft Foods International. The brand has been extremely successful and is currently the world s largest producer of cookies and crackers. Kraft s major brands consist of well known names such as, Maxwell House, Post (Cereals), Oscar Myer, and Oreo. Several years ago, Kraft Foods was experiencing financial problems related to the numerous amounts of brands they owned. In order to change the direction of the company, the CEO s decided that the best option was to sell the lesser known brand names and to promote their better performing brands instead. This resulted in the cutting of 8,000 jobs and 20 production plants shutting their doors. According to Kraft, it saved the company $700 million dollars a year. This year Kraft sold its brand Milk Bone to Del Monte for nearly $580 million dollars. The restructuring of the company seems to be falling in line with their plan to consolidate their brands to include only the best performing ones (Hoovers). In 1988 Phillip Morris bought Kraft foods for $12.9 billion dollars and partnered the company with General Foods. The two companies ran independently of one another, but fell under the name Kraft General Foods. The two companies were the largest producer of food in the U.S. in 1989. In 1993, Kraft General Foods and Phillip Morris purchased RJR Nabisco s cereal business, but later would purchase the rest of Nabisco s shares in 2000 for $18.9 billion dollars. When Kraft had finally integrated Nabisco s production into the rest of their system, it resulted in a loss of 7,500 jobs and a savings of $373 million dollars. Soon after the merge with Kraft, U.S. commodity prices were - 12 -
rising and forced Nabisco brand product prices to be raised by 3% in 2003. This increased the price of all Nabisco products by ten cents per package (Hoovers). Sales and Financials: Kraft Foods has a total of 175 manufacturing facilities located worldwide with 59 of them located within the United States. These facilities helped produce over $34 billion dollars in sales in 2005, with 68% of the sales coming from Kraft Foods North America. Kraft Food s net income in 2005 was a little over two billion dollars, with a 1.2% rate of growth per year. However, the rate of growth for sales was 6% in 2005. Nabisco s brand falls into the snacks category of Kraft Food s balance sheet, which reported over nine billion dollars in sales in 2005, making up 28% of Kraft s overall sales for the year (Hoovers). For financial comparison purposes, Kraft will be compared to thier largest competitor in the cookie industry, Kellogg s. Pepperidge Farms is a private company thus financial information for comparisons is not available. Kraft had a current asset ratio of.93 in 2005, while Kellogg s had a ratio of.69. Through this comparison Kraft has a better current ratio, but overall theirs is not as good as it should. Both companies do not have a current ration between 1.0 and 1.5, which is acceptable by most business. This shows that they may not be capable of paying its short-term financial obligations (Hoovers). Kraft had a net profit margin in 2005 of 7.7%, and Kellogg s had profit margin of 9.6%. Considering the size of these companies, these margins are fairly adequate. Kellogg s is able to gain more after-tax profit from every dollar of sales. These - 13 -
percentages are sufficient for their operations. Kraft has a gross profit margin of 36%. Kellogg at year end had a gross profit margin of 44.9%. Kellogg s is doing a better job of having funds available to cover expenses beyond cost of goods sold and still yield a profit. Kellogg s is more efficient, which intern will make them more noticeable for investors. Kraft had a Return on Investment of 5%, while Kellogg s was 9.3%. This shows that Kellogg s managers are more efficient in getting a higher return on the total assets utilized by the company (Hoovers). Kraft s current activity yields a total asset turnover of.59 times, while Kellogg s has an asset turnover of.96 times. Again in this category Kellogg s is performing better. They are capable of turning over there assets better to generate revenue. Accounts payable period for Kraft is 107.1 days, while Kellogg s is 129.7 days. This shows that the industry is very slow in paying it suppliers. The average collection period for Kraft is 45.6, and for Kellogg s it is 31.5 days. Kellogg s has an average collection period that is around the average for most business. Kraft has a longer period of time which may be do to the fact that they are extending credit terms longer so that distributors and retailers can purchase their products easier (Hoovers). Debt to equity for Kraft is 94.7%, while Kellogg s is 363%. This ratio shows that Kellogg s is getting more of its funds from creditors. Kraft has more equity than debt which makes the company less leveraged than Kellogg s. Kraft has been able to manage the growth of their company using equity and profits rather than relying on lenders (Hoovers). While most of Kraft s numbers are not as impressive as Kellogg s, they seem to be heading in the right direction. They are trying to limit their products and produce - 14 -
more basic snacks, and discard any luxury brand names. Being the largest producer of cookies and crackers in the world, Nabisco is the strongest brand Kraft has in its operations with it producing nearly 30% of Kraft s revenues each year. These comparisons are for each company as a total of all their product offerings. Certain brands or products may provide more influence on the companies operations than others. - 15 -
Customer Analysis Chips Ahoy s target customer consists mainly of children under the age of 12 (Schroeder). The families that buy Chips Ahoy come from a variety of demographics, personalities, and value beliefs. Chips Ahoy appeals to just about every child. Children do not buy many products, but rather the parents do. The mother mainly does the grocery shopping. Supermarkets are the largest retail outlet for cookies. A positive aspect about marketing cookies is they are sold year round; there is no special season for cookies. Since Chips Ahoy targets its marketing to children they are the initiators in the buying decision. They know what they want, and influence their parents to buy various product. Though, the parents are the decision makers and decide rather to purchase the item or not, the child is the ultimate consumer of Chips Ahoy. Chips Ahoy is a common well know brand, and this makes it a reliable brand for mothers. This is most likely the main reason moms buy Chips Ahoy cookies for their children. Chips Ahoy, and cookies in general, is an item that has repeat purchases. In fact, 91.7% of households purchase cookies (AIB Online). The price of Chips Ahoy ranges from $2.50 to $3.39, making it low enough for parents to budget for. The marketing mix has an effect on the children. Although, the product is one that children are already aware of, the communications is what sparks the child s interest. Not only is the package colorful and appealing to the eye, but Chips Ahoy also offers online games for children to play. Chips Ahoy offers a free on-line game called Soccer Shootout. Not only can they play the game, but they can also send e-mails to their friends and invite them to play the game also (Rowland). This is a great and easy way for Chips Ahoy to obtain word-of-mouth marketing. But you will not see the advertisement - 16 -
for Chips Ahoy on the television for much longer; the Center for Disease Control and Prevention says the percentage of overweight children is growing. Therefore, Kraft agreed to take all unhealthy commercial advertisements off the television, and the company will market only its healthiest products, such as Lunchables, selected cereals and 100-calorie snack packs, to children (Rowland). The price of Chips Ahoy is of no concern to children, although if the price is too unreasonable the parents will not purchase the item. The price is low enough that most families can budget it in. Distribution of Chips Ahoy is not a problem; because they can be found at almost any food retailer or vending machine around. - 17 -
Customer Demand Estimate The U.S. cookie industry has been impacted in recent years by the increased consumer obsession in eating healthier. Since 2001, the cookie market in the U.S. declined just over eight percent. Some factors that have contributed to this decline are the low-carb craze, concerns of calories, trans fatty acids, obesity and higher ingredients costs that resulted in increased prices. Although the cookie market has experienced such a decline, sales appear to be stabilizing and are estimated to grow at a modest rate. Market researchers forecast that over the next few years, cookie sales will increase by around 1-3 percent per year. This growth will be fueled by product innovations, with companies offering healthier products that meet the consumers needs. Products that already do so include Nabisco s 100- Calorie Packs and Pepperidge Farm s sugar-free Milano cookies. Market researchers also predict that Kraft Foods Nabisco will remain the market leader (Food Navigator). Kraft Foods Nabisco is currently the top leader in the cookie market, with six brands in the top twenty. However, the company has experienced decreased sales in five of the six brands. Nabisco s dollar sales for 52 weeks that ended February 20, 2005 showed a decline of 1.1% for the same time period a year earlier (AIB Online). Rethinking the marketing of their products, Nabisco now plans to focus on better-foryou products, and to market less to children. Nabisco is tapping into the national snacking healthy boom by broadening their offerings. Kraft Foods is introducing many products that are considered healthier by offering brands with reduced calories, more whole grains, and trans-fat free products. - 18 -
Buying Power Index: The Buying Power Index (BPI) is a measure of spending power that takes population, Effective Buying Power, and retail sales into account to determine a market s ability to buy. The BPI estimates how much of the total retail sales for the nation will occur in a specific area. Georgia s BPI was 2.96 in 2005 (Sales & Mktg Mgt). This means that about 2.96% of all retail sales for the nation were in Georgia in 2005, representing 3.6% of the U.S. Population. Compare this to Atlanta, having a BPI of.17 (Sales & Mktg Mgt) and representing.1587% of the nation s population. The BPI and population of the counties in the Atlanta Metro Area can be viewed in Appendix: Table 8 and 9. Effective Buying Income: The Effective Buying Income (EBI) is defined as income less personal tax and non-tax payments. The EBI is often referred to as disposable or after-tax income. The EBI is divided into three income groups: $20,000-34,999, $35,000-49,999, and $50,000 and over. Georgia accounted for about 2.94% of the total EBI for the nation in 2005; The metropolitan Atlanta area accounted for about.18% of the nations total EBI (Sales & Mktg Mgt). For a break down of the effective buying income for the metropolitan Atlanta area see Appendix: Table 10 and 11. - 19 -
Households Purchasing Cookies: According to Information Resources, 91.7% of households purchase cookies (AIB Online). With the United States having a total of about 101 million households purchasing cookies, Georgia accounts for around 2.94% of those households, or 2,969,400 households. Atlanta accounts for around.16% of the total U.S. households purchasing cookies. 158,274 households in Atlanta purchase cookies. The nation s total households that purchase cookies spend an average of $111.84 a year in the cookies industry. The nation s total households that purchase cookies, spend on average $9.74 dollars a year on chocolate chip cookies. That means the 2,969,400 households in Georgia spend $332,097,696 a year on cookies, while spending $28,921,956 a year on chocolate chip cookies. The metropolitan Atlanta areas 158,274 households spend $17,701,364.16 a year on cookies, and $1,541,588.76 a year on chocolate chip cookies. For amount of households purchased cookies by county for the metropolitan Atlanta area see Appendix: Table 12. Cyclical Nature of Sales: The cycle for demand on Kraft products is reasonably steady. Looking at the sales figures for the past 4 years there are many similarities in the demand. For instance, the demand has risen in the 3 rd quarter 3 out of the last 4 years, 2006 being the exception. This can be a result of more children at home during the summer months of July and August. Households may be purchasing more snacks for these months. It also looks as though the demand decreases in the 4 th quarter which is a bit surprising due to the fact that many people have parties and get-togethers for the holidays. That demand looks to - 20 -
pick up at the start of the 1 st quarter again but then decreases as the quarter goes on, only to start to rise again in the 2 nd quarter (Mergent). Demographic Trends: Kraft Foods has recently been moving in a more health conscious direction. They are targeting their products to consumers who are more health conscious when making purchasing decisions. Their main targets are members of the baby boom generation who now desire to take care of themselves better. Kraft has come out with new product lines such as the Boca name. Products made under this line, such as burgers, smoked sausages, chicken patties and pizza are all made with soy (Sachdev). While shifting their marketing efforts towards healthier options, Kraft is taking an extreme interest in children s food habits. The company announced that it would "change the mix of products it advertises on television and radio, and in print seen primarily by children age six to 11 (Rosolen)." What that means for consumers is that starting in 2006, kids between the ages of 6 and 11 will no longer see ads for products such as Kool-Aid, Oreos, Chips Ahoy!, and some varieties of Lunchables (Rosolen). Kraft has also created nutritional guidelines for products appropriate for sales in school vending machines. Some of the guidelines are as follows: 35% or less of total calories from fat (excluding nuts and seeds, given their nutritional benefits), 10% or less of total calories from a combination of saturated and Trans fat, and 35% or less of total calories from sugars (Healthy). Along with the shift towards healthier eating habits, Kraft is focusing on the cooking habits of key demographic areas. Every three years Kraft conducts surveys that - 21 -
take an inventory of what products people store in the homes. With the results of this survey they look at the different demographic groups and try to make adjustments to their specific needs in the kitchen (Berk). Kraft is trying to demonstrate the concept that convenience and health and wellness are the prominent themes guiding consumer food choices (Berk). As a way to enforce healthier, more convenient eating habits among adults, Kraft has developed a website and magazine committed to this idea: kraftfoodservice.com and Healthy Living. This website/magazine is meant to promote healthy living standards, demonstrate how to eat and cook healthier as well as provide healthy eating news. - 22 -
Implications and Recommendations Nabisco s Chips Ahoy cookies are in a rather stable market. They have become fully saturated in the Atlanta metropolitan area and they have name brand recognition, having been in business for many years. The current market for the cookies is faced with the issues over health concerns, along with children obesity. Chips Ahoy does not need to focus on implementing the original product into the market, but focus on newer forms of cookies that are more health oriented. In terms of geographic markets they are in the right location for gaining additional sales. The metropolitan Atlanta area is growing every year, and Chip Ahoy brand cookies are available in this segment, as well as nationally. The price off their product is competitive compared to other competitors. The new products that Nabisco have coming out, being health oriented, is the new trend that the company is faced with. Though these products are not targeted at younger children, the promotion of these products should focus on connecting the user to the idea that these are still the same Chips Ahoy cookies they are accustomed to, but in a healthier portioned size. For the children market, Chips Ahoy should stay with using their product as an educational tool. There 1,000 Chips in Every Bag promotion allows children to learn to count using chocolate chips and Chips Ahoy cookies. This also benefits Chips Ahoy as they are getting the children associated with the brand at school, which intern may influence purchases at the home or in the future. In terms of distribution the only aspect that could be improved would be to enhance their supply chain management to gain a better control over inventory and reduce costs between the manufacture, distributors and retail outlet. They are already - 23 -
delivering to the final consumer in as many forms as possible from supermarket to vending machines. Almost everybody loves chocolate chip cookies. Chips Ahoy brand cookies are a well established snack item in America. Though trends, as the come and go, affect business they have remained profitable and growing. The future looks the same as the - 24 -
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Rosolen, Deanna. "To Market or Not to Market to Kids." Food in Canada. Toronto 65 (2005): 20. 26 Nov. 2006. Rowland, Kara. "Children Play with Food." The Washington Times (2006). EBSCOhost Business Source Premier. 24 Nov. 2006. Ruth Emerson Research Library. "Cookie and Cracker Statistics." AIB International. 11 Oct. 2006. 21 Nov. 2006 <http://www.aibonline.org>. Reyes, Sonia. "Nabisco Adds Indulgence to Chips Ahoy!" Brandweek 41 (2000): 6. EBSCOhost Business Source Premier. 21 Nov. 2006. Reyes, Sonia. "Nabisco's Cookie Extensions Crumble, and Some Ask, 'Why?'." Brandweek 44 (2003): 14. EBSCOhost Business Source Premier. 21 Nov. 2006. Sachdev, Ameet. "Kraft Pushes Soy-Based Menu Items." Knight Ridder Tribune Business News: 1+. ABI Inform Complete. 27 Nov. 2006. "Savory Snacks Industry Profile: United States." Datamonitor (2006): 1-21. EBSCOhost Business Source Premier. 21 Nov. 2006. Schroeder, Eric. "Cookie Comeback." BakingBusiness.Com. 5 Apr. 2005. 24 Nov. 2006 <http://www.bakingbusiness.com>. Sosland, Meyer. "Moving Forward." Baking Business. 13 Apr. 2004. 21 Nov. 2006 <http://www.bakingbusiness.com>. Thompson, Stephanie. "Minor Indulgence Keeps Cookies From Tanking." Advertising Age 75 (2004): S18. EBSCOhost Business Source Premier. 30 Nov. 2006. - 26 -
Appendix Table 1: Atlanta Metropolitan Area: Counties Barrow County Bartow County Butts County Carroll County Cherokee County Clayton County Cobb County Coweta County Dawson County DeKalb County Douglas County Fayette County Forsyth County Fulton County Gwinnett County Haralson County Heard County Henry County Jasper County Lamar County Meriwether County Newton County Paulding County Pickens County Pike County Rockdale County Spalding County Walton County Source: Wikipedia Foundation, Inc Table 2: Cookies and Cracker Yearly Sales: Year Sales 2004 11,295.6 2003 11,217.1 2002 11,128.1 2001 10,899.2 2000 10,654.2 1999 N/A 1998 9,757.10 1997 9,491.30 1996 Missing 1995 8,999.00 1994 5,670.70 1993 8,505.70 1992 8,147.20 1991 7,792.70 1990 7,792.70 1989 7,352.00 1988 6,738.40 1987 6,309.40 1986 6,096.10 1985 8,781.90 Source: AIB Online - 27 -
Table 3: Top 10 Fresh Cookie Brands, Sales and Units Sold: 52 Week Period Ending May 21,2006 Brand Name Dollar Volume (In Millions) Unit Sales (In Millions) Kraft Nabisco Oreo $474,749,800 187,788,000 Kraft Nabisco Chips Ahoy! 310,779,300 127,711,100 Private Label 291,050,300 164,334,200 Keebler Chips Deluxe 101,656,500 41,915,640 Kraft Nabisco Newtons 97,654,980 34,682,160 Archway 93,288,130 36,497,160 Keebler Fudge Shoppe 87,550,220 31,110,390 Pepperidge Farm Chunk 83,417,940 31,110,390 Pepperidge Farm Misc. 81,792,940 30,775,700 Kraft Nabisco Teddy Grahams 84,659,110 36,172,620 Source: AIB Online Table 4: Top 10 Cookie Vendors: Brand Dollar Volume (In Millions) Unit Sales (In Millions) Nabisco Oreo $1,331.5 553.0 Keebler 420.5 175.4 Private Label 295.1 175.1 Pepperidge Farm 269.7 97.0 Little Debbie 205.7 176.1 All Other Non-Key Vendors, M-Z 198.1 95.6 Murray Biscuit 168.4 104.8 All Other Non-Key Venors, A-L 168.0 111.9 Archway 115.3 48.1 Mother's/Bakery Wagon 94.0 40.9 Source: AIB Online - 28 -
Table 5: United States Savory Snacks Market Value: 2000-2004 Year Dollar Volume (In Billions) Growth (%) 2000 18.0-2001 18.7 3.90 2002 19.6 4.70 2003 20.0 2.00 2004 20.1 0.40 Source: Datamonitor Graph 1: United States Savory Snacks Market Segmentation: % Share, By Value, 2004 Source: Datamonitor Table 6: Top 5 Cookies: Market Share and Media Ad Spending Rank Brand Market Share (%) 2003 Market Share (%) 2002 Media Ad Spending 2003 (In millions) Media Ad Spending 2002 (In Millions) 1 Nabisco Oreos 13.2 13.7 32.8 40.5 2 Nabisco Chips Ahoy! 9 8.9 18.8 21.5 3 Keebler Chips Deluxe 3.4 3.9 3.3 1.7 4 Pepperidge Farms Distinctives 3.4 2.9 2.9 3.8 5 Nabisco Newtons 3.3 3.4 11.4 4.7 Source: Advertising Age - 29 -
Table 7: Kraft Foods, Inc. Financial Data: Income Statement Dec 05 Dec 04 Dec 03 Revenue 34,113.0 32,168.0 31,010.0 Cost of Goods Sold 21,845.0 20,281.0 18,828.0 Gross Profit 12,268.0 11,887.0 12,182.0 Gross Profit Margin 36.0% 37.0% 39.3% SG&A Expense 6,637.0 6,396.0 5,358.0 Depreciation & Amortization 879.0 879.0 813.0 Operating Income 4,752.0 4,612.0 6,011.0 Operating Margin 13.9% 14.3% 19.4% Nonoperating Income 21.0 13.0 -- Nonoperating Expenses 657.0 679.0 665.0 Income Before Taxes 4,116.0 3,946.0 5,346.0 Income Taxes 1,209.0 1,274.0 1,866.0 Net Income After Taxes 2,907.0 2,672.0 3,480.0 Continuing Operations 2,904.0 2,669.0 3,476.0 Discontinued Operations (272.0) (4.0) -- Total Operations 2,632.0 2,665.0 3,476.0 Total Net Income 2,632.0 2,665.0 3,476.0 Net Profit Margin 7.7% 8.3% 11.2% Diluted EPS from Total Net Income ($) 1.55 1.55 2.01 Balance Sheet Dec 05 Dec 04 Dec 03 Assets Current Assets Cash 316.0 282.0 514.0 Net Receivables 4,264.0 4,290.0 4,050.0 Inventories 3,343.0 4,905.0 3,343.0 Other Current Assets 230.0 245.0 217.0-30 -
Total Current Assets 8,153.0 9,722.0 8,124.0 Net Fixed Assets 9,817.0 9,985.0 10,155.0 Other Noncurrent Assets 39,658.0 40,221.0 41,006.0 Total Assets 57,628.0 59,928.0 59,285.0 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable 6,414.0 6,510.0 6,533.0 Short-Term Debt 2,073.0 2,568.0 1,328.0 Other Current Liabilities 237.0 -- -- Total Current Liabilities 8,724.0 9,078.0 7,861.0 Long-Term Debt 8,475.0 9,723.0 11,591.0 Other Noncurrent Liabilities 10,836.0 11,216.0 11,303.0 Total Liabilities 28,035.0 30,017.0 30,755.0 Shareholders' Equity Preferred Stock Equity -- -- -- Common Stock Equity 29,593.0 29,911.0 28,530.0 Total Equity 29,593.0 29,911.0 28,530.0 Shares Outstanding (mil.) 489.9 525.4 541.9 Cash Flow Statement Dec 05 Dec 04 Dec 03 Net Operating Cash Flow 3,464.0 4,008.0 4,119.0 Net Investing Cash Flow 525.0 (1,056.0) (1,049.0) Net Financing Cash Flow (3,951.0) (3,218.0) (2,786.0) Net Change in Cash 34.0 (232.0) 299.0 Depreciation & Amortization 879.0 879.0 813.0 Capital Expenditures (1,171.0) (1,006.0) (1,085.0) Cash Dividends Paid (1,437.0) (1,280.0) (1,089.0) Source: Hoovers - 31 -
Table 8: Buying Power Index 2005: BPI (% Of U.S.) Total U.S. 100 Georgia 2.9553 Atlanta 0.1739 Atlanta Metro Area: Barrow County 0.0168 Bartow County 0.0275 Butts County 0.0052 Carroll County 0.0288 Cherokee County 0.0651 Clayton County 0.0829 Cobb County 0.2773 Coweta County 0.033 Dawson County 0.0073 Dekalb County 0.2217 Douglas County 0.039 Fayette County 0.0393 Forsyth County 0.0502 Fulton County 0.3848 Gwinnett County 0.27 Haralson County 0.0074 Heard County 0.0023 Henry County 0.052 Jasper County 0.0031 Lamar County 0.0041 Meriwether County 0.0058 Newton County 0.0227 Paulding County 0.0305 Pickens County 0.0088 Pike County 0.0034 Rockdale County 0.0315 Spalding County 0.0184 Walton County 0.0214 Source: Sales and Marketing Management - 32 -
Table 9: 2005 Population Total U.S. 296,410,404 % of U.S. Population Georgia 3.0608 Atlanta 0.1588 Atlanta Metro Area: Barrow County 0.0202 Bartow County 0.0301 Butts County 0.0071 Carroll County 0.0356 Cherokee County 0.0621 Clayton County 0.0904 Cobb County 0.2240 Coweta County 0.0371 Dawson County 0.0067 Dekalb County 0.2287 Douglas County 0.0380 Fayette County 0.0352 Forsyth County 0.0474 Fulton County 0.3089 Gwinnett County 0.2450 Haralson County 0.0096 Heard County 0.0038 Henry County 0.0566 Jasper County 0.0044 Lamar County 0.0055 Meriwether County 0.0077 Newton County 0.0278 Paulding County 0.0379 Pickens County 0.0096 Pike County 0.0054 Rockdale County 0.0265 Spalding County 0.0207 Walton County 0.0255 Source: U.S. Census - 33 -
Table 10: Effective Buying Income 2005: EBI by Income Group (000s) $20,000-34,999 $35,000-49,999 $50,000 & Over Total U.S. 24,948.20 21,468.70 40,758.70 % of Households, by EBI Group $20,000-34,999 $35,000-49,999 $50,000 & Over Georgia 22.5 19.6 36.5 Atlanta 21.1 14.4 34.8 Atlanta Metro Area: Barrow County 21.7 24.1 35.9 Bartow County 24.1 22.4 35.9 Butts County 25.5 22.6 29.4 Carroll County 22.9 21.3 30.3 Cherokee County 15.6 19.4 55.1 Clayton County 27.9 23.7 31.2 Cobb County 18.2 19.6 51.2 Coweta County 18.1 20.5 46.4 Dawson County 21.4 21.7 41.4 Dekalb County 21.3 20.6 43.2 Douglas County 21.6 22.5 41.6 Fayette County 12.8 16.7 63.2 Forsyth County 13.3 15.7 44.6 Fulton County 18.9 15.6 44.6 Gwinnett County 17.8 20.9 52.2 Haralson County 27.1 19.2 23.3 Heard County 26.8 21 23.1 Henry County 17.5 22.2 50.9 Jasper County 22.3 23.5 32.4 Lamar County 25.8 23 28.3 Meriwether County 26 18.5 24.5 Newton County 23.1 23.6 36.3 Paulding County 18.5 23.9 45.6 Pickens County 24.8 22.6 32.7 Pike County 21.4 22.9 36.5 Rockdale County 20.3 19.9 45.8 Spalding County 26.1 20.1 27.6 Walton County 21.9 19.4 41.4 Source: Sales and Marketing Management - 34 -
Table 11: Effective Buying Income 2005: Total EBI Total U.S. 5,692,909,567.00 % of U.S. Total EBI Georgia 2.9358 Atlanta 0.1825 Atlanta Metro Area: Barrow County 0.0161 Bartow County 0.0260 Butts County 0.0058 Carroll County 0.0289 Cherokee County 0.0691 Clayton County 0.0712 Cobb County 0.2822 Coweta County 0.0369 Dawson County 0.0071 Dekalb County 0.2547 Douglas County 0.0349 Fayette County 0.0466 Forsyth County 0.0607 Fulton County 0.4042 Gwinnett County 0.2587 Haralson County 0.0071 Heard County 0.0027 Henry County 0.0578 Jasper County 0.0038 Lamar County 0.0044 Meriwether County 0.0057 Newton County 0.0252 Paulding County 0.0337 Pickens County 0.0091 Pike County 0.0045 Rockdale County 0.0257 Spalding County 0.0163 Walton County 0.0229 Source: Sales and Marketing Management - 35 -
Table 12: Households In Georgia Buying Cookies 2005 # of HH's % of HH's # of HH's Purchasing Cookies Purchasing Cookies United States 111,007,700 101,794,060.90 100.0000 Georgia 3,274,600 3,002,808.20 2.9499 Atlanta 172,600 158,274.20 0.1555 Atlanta Metro Area: Barrow County 20,100 18,431.70 0.0181 Bartow County 31,700 29,068.90 0.0286 Butts County 7,900 7,244.30 0.0071 Carroll County 37,900 34,754.30 0.0341 Cherokee County 62,000 56,854.00 0.0559 Clayton County 93,000 85,281.00 0.0838 Cobb County 249,100 228,424.70 0.2244 Coweta County 37,700 34,570.90 0.0340 Dawson County 7,700 7,060.90 0.0069 Dekalb County 252,000 231,084.00 0.2270 Douglas County 38,500 35,304.50 0.0347 Fayette County 35,700 32,736.90 0.0322 Forsyth County 47,000 43,099.00 0.0423 Fulton County 321,800 295,090.60 0.2899 Gwinnett County 241,800 221,730.60 0.2178 Haralson County 10,900 9,995.30 0.0098 Heard County 4,100 3,759.70 0.0037 Henry County 37,200 34,112.40 0.0335 Jasper County 4,800 4,401.60 0.0043 Lamar County 5,900 5,410.30 0.0053 Meriwether County 8,500 7,794.50 0.0077 Newton County 29,700 27,234.90 0.0268 Paulding County 37,300 34,204.10 0.0336 Pickens County 11,300 10,362.10 0.0102 Pike County 5,500 5,043.50 0.0050 Rockdale County 26,700 24,483.90 0.0241 Spalding County 22,900 20,999.30 0.0206 Walton County 25,700 23,566.90 0.0232 Source: Sales and Marketing Management - 36 -
Table 13: House Hold Income County Household Income Retail Sales Barrow $45,997 $10,260.00 Bartow $46,051 $9,814.00 Butts $39,047 $7,948.00 Carroll $40,929 $8,671.00 Cherokee $63,616 $9,149.00 Clayton $39,492 $11,000.00 Cobb $52,931 $13,473.00 Coweta $53,990 $8,981.00 Dawson $49,909 $13,637.00 DeKalb $45,052 $9,240.00 Douglas $49,166 $17,205.00 Fayette $74,320 $10,665.00 Forsyth $72,945 $9,814.00 Fulton $45,744 $13,638.00 Gwinnett $56,636 $15,054.00 Haralson $33,135 $6,978.00 Heard $32,748 $1,543.00 Henry $61,105 $9,035.00 Jasper $39,602 $2,275.00 Lamar $36,261 $4,613.00 Meriwether $30,858 $4,662.00 Newton $46,025 $6,405.00 Paulding $56,998 $6,613.00 Pickens $44,905 $9,779.00 Pike $46,278 $1,215.00 Rockdale $50,563 $16,011.00 Spalding $35,239 $10,226.00 Walton $47,092 $6,957.00 Source: U.S. Census - 37 -
Table 14: Kraft Food, Inc. Sales: 15000 Kraft Foods Cycles in Demand Millions 10000 5000 0 1 2 3 4 2003 2004 2005 2006 Series5 Quarters Source: Mergent Online - 38 -
Table 15: Population Demographics County Population % under the age of 5 % of Females Number of Females Barrow 59,954 7.80% 49.90% 29917.046 Bartow 89,229 8.20% 50.20% 44792.958 Butts 21,045 6.80% 46.70% 9828.015 Carroll 105,453 7.40% 50.80% 53570.124 Cherokee 184,211 7.90% 49.50% 91184.445 Clayton 267,966 8.90% 51.20% 137198.592 Cobb 663,818 7.90% 50.20% 333236.636 Coweta 109,903 7.50% 50.10% 55061.403 Dawson 19,731 6.30% 49.60% 9786.576 DeKalb 677,959 8.10% 51.30% 347792.967 Douglas 112,760 7.50% 50.60% 57056.56 Fayette 104,248 4.80% 51.00% 53166.48 Forsyth 140,393 8.30% 49.10% 68932.963 Fulton 918,623 7.90% 50.50% 463904.615 Gwinnett 726,273 8.50% 49.20% 357326.316 Haralson 28,338 7.00% 50.80% 14395.704 Heard 11,346 6.90% 27.80% 3154.188 Henry 167,848 7.60% 50.40% 84595.392 Jasper 13,147 7.20% 50.80% 6678.676 Lamar 16,378 6.30% 51.50% 8434.67 Meriwether 22,919 7.20% 51.70% 11849.123 Newton 86,713 8.20% 50.90% 44136.917 Paulding 112,411 8.40% 49.60% 55755.856 Pickens 28,442 6.50% 50.60% 14391.652 Pike 16,128 6.30% 49.60% 7999.488 Rockdale 78,545 7.00% 50.10% 39351.045 Spalding 61,289 7.70% 51.40% 31502.546 Walton 75,647 7.60% 51.00% 38579.97 Source: U.S. Census - 39 -
Table 16: Household Size County # of People Barrow 2.79 Bartow 2.76 Butts 2.73 Carroll 2.66 Cherokee 2.85 Clayton 2.84 Cobb 2.64 Coweta 2.81 Dawson 2.62 DeKalb 2.62 Douglas 2.78 Fayette 2.88 Forsyth 2.83 Fulton 2.44 Gwinnett 2.88 Haralson 2.58 Heard 2.7 Henry 2.87 Jasper 2.72 Lamar 2.64 Meriwether 2.68 Newton 2.77 Paulding 2.89 Pickens 2.54 Pike 2.81 Rockdale 2.87 Spalding 2.67 Walton 2.82 Source: U.S. Census - 40 -
Graph 2: Popluation of Women: 1,000,000 900,000 800,000 Population of Women 700,000 Population 600,000 500,000 400,000 Population Number of Women 300,000 200,000 100,000 0 Barrow Bartow Butts Carroll Cherokee Clayton Cobb Coweta Dawson DeKalb Douglas Fayette Forsyth Fulton Gwinnett Haralson Heard Henry Jasper Lamar Meriwether Newton Paulding Pickens Pike Rockdale Spalding Walton County Source: U.S. Census - 41 -
Graph 3: Population Under 5 Population Under 5 1,000,000 900,000 800,000 700,000 Population 600,000 500,000 400,000 Population % under age 5 300,000 200,000 100,000 0 Barrow Bartow Butts Source: U.S. Census Carroll Cherokee Clayton Cobb Coweta Dawson DeKalb Douglas Fayette Forsyth Fulton Gwinnett Haralson County Heard Henry Jasper Lamar Meriwether Newton Paulding Pickens Pike Rockdale Spalding Walton - 42 -
Graph 4: Spending SPENDING $80,000 $70,000 $60,000 $50,000 Money $40,000 Household Income Retail Spending $30,000 $20,000 $10,000 $0 Barrow Bartow Butts Source: U.S. Census Carroll Cherokee Clayton Cobb Coweta Dawson DeKalb Douglas Fayette Forsyth Fulton Gwinnett Haralson County Heard Henry Jasper Lamar Meriwether Newton Paulding Pickens Pike Rockdale Spalding Walton Table 17: General Demographic Data: County Barrow Bartow Butts Carroll Cherokee Clayton Population 59,954 89,229 21,045 105,453 184,211 267,966 House Holds 16,354 27,176 6,455 31,568 49,495 82,243 Household Income $45,997 $46,051 $39,047 $40,929 $63,616 $39,492 Household Size 2.79 2.76 2.73 2.66 2.85 2.84 Marital Status % of Married Women 59.3% 55.6% 52.7% 56.0% 62.2% 41.2% Persons Under 5 7.80% 8.20% 6.80% 7.40% 7.90% 8.90% Females 49.90% 50.20% 46.70% 50.80% 49.50% 51.20% Education High School 73.30% 71.80% 69.80% 71.10% 84.40% 80.10% College 10.90% 14.10% 8.60% 16.50% 27% 16.60% Retail Sales Per Capita $10,260.00 $9,814.00 $7,948.00 $8,671.00 $9,149.00 $11,000.00-43 -
County Cobb Coweta Dawson DeKalb Douglas Fayette Population 663,818 109,903 19,731 677,959 112,760 104,248 House Holds 227,487 31,442 6,069 249,339 32,822 31,524 Household Income $52,931 $53,990 $49,909 $45,052 $49,166 $74,320 Household Size 2.64 2.81 2.62 2.62 2.78 2.88 Marital Status % of Married Women 55.0% 58.0% 66.3% 37.4% 53.6% 55.6% Persons Under 5 7.90% 7.50% 6.30% 8.10% 7.50% 4.80% Females 50.20% 50.10% 49.60% 51.30% 50.60% 51.00% Education High School 88.80% 81.60% 79.50% 85.10% 81.10% 92.40% College 39.80% 20.60% 18.10% 36.30% 19.20% 36.20% Retail Sales Per Capita $13,473.00 $8,981.00 $13,637.00 $9,240.00 $17,205.00 $10,665.00 County Forsyth Fulton Population 140,393 918,623 House Holds 34,565 321,242 Household Income $72,945 $45,744 Household Size 2.83 2.44 Marital Status % of Married Women 68.8% 42.4% Persons Under 5 8.30% 7.90% Females 49.10% 50.50% Education High School 85.70% 84.00% College 34.60% 41.40% Retail Sales Per Capita $9,814.00 $13,638.00 County Gwinnett Haralson Heard Henry Jasper Lamar Population 726,273 28,338 11,346 167,848 13,147 16,378 House Holds 202,317 9,826 4,043 41,373 4,175 5,712 Household Income $56,636.00 $33,135.00 $32,748.00 $61,105.00 $39,602.00 $36,261.00 Household Size 2.88 2.58 2.7 2.87 2.72 2.64 Marital Status % of Married Women 58.7% 56.0% 58.3% 56.0% 54.6% 49.8% Persons Under 5 8.50% 7.00% 6.90% 7.60% 7.20% 6.30% Females 49.20% 50.80% 27.80% 50.40% 50.80% 51.50% Education High School 87.30% 63.00% 66.00% 84.20% 69.70% 71.30% College 34.10% 9.00% 7.30% 19.50% 11.50% 11.30% Retail Sales Per Capita $15,054.00 $6,978.00 $1,543.00 $9,035.00 $2,275.00 $4,613.00-44 -
County Meriwether Newton Paulding Pickens Pike Rockdale Population 22,919 86,713 112,411 28,442 16,128 78,545 House Holds 8,248 21,997 28,089 8,960 4,755 24,052 Household Income $30,858.00 $46,025.00 $56,998.00 $44,905.00 $46,278.00 $50,563.00 Household Size 2.68 2.77 2.89 2.54 2.81 2.87 Marital Status % of Married Women 46.4% 48.8% 66.3% 59.6% 57.8% 54.5% Persons Under 5 7.20% 8.20% 8.40% 6.50% 6.30% 7.00% Females 51.70% 50.90% 49.60% 50.60% 49.60% 50.10% Education High School 65.80% 74.70% 80.80% 70.20% 75.30% 82.40% College 10.80% 14.50% 15.20% 15.60% 14.00% 23.40% Retail Sales Per Capita $4,662.00 $6,405.00 $6,613.00 $9,779.00 $1,215.00 $16,011.00 County Spalding Walton Population 61,289 75,647 House Holds 21,519 21,307 Household Income $35,239.00 $47,092.00 Household Size 2.67 2.82 Marital Status % of Married Women 48.7% 55.3% Persons Under 5 7.70% 7.60% Females 51.40% 51.00% Education High School 67.80% 73.50% College 12.50% 13.00% Retail Sales Per Capita $10,226.00 $6,957.00 Source: U.S. Census - 45 -