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
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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
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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.
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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).
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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.
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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).
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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.
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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).
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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.
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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
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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).
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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
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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
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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
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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.
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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
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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.
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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 100Calorie 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.
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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.
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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 3rd 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 4th 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
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pick up at the start of the 1st quarter again but then decreases as the quarter goes on, only
to start to rise again in the 2nd 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
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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.
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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
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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
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Berk, Christina C. "Kraft Uncovers Theme in Food Choices." The Wall Street Journal
(2005). ABI Inform Complete. 27 Nov. 2006.
"Campbell Soup Company SWOT Analysis." Datamonitor (2005): 1-8. EBSCOhost
Business Source Premier. 30 Nov. 2006.
"Chipping Away." Convenience Store Decisions 17 (2006): 1. ABI Inform Complete. 21
Nov. 2006.
"Cookies and Crackers." Answers. 21 Nov. 2006 <http://www.answers.com>.
"Healthy Living Policies and Practices Marketing Practices." Nutrition, Health and
Wellness. Kraft Foods. 26 Nov. 2006
<http://www.kraft.com/responsibility/nhw_marketingpractices.aspx>.
Heller, Lorraine. "Health Could Boost Declining US Cookie Sales." Food Navigator
USA. 18 Aug. 2006. 24 Nov. 2006 <www.foodnavigator-usa.com>.
"Industry Statistics Sampler: NAICS 31182 Cookie, cracker, and pasta manufacturing."
U.S. Census Bureau. 2 Dec. 2004. 21 Nov. 2006 <http://www.census.gov>.
"Kellogg Company." Hoovers. 24 Nov. 2006.
"Kellogg Company SWOT Analysis." Datamonitor (2006): 1-9. EBSCOhost Business
Source Premier. 30 Nov. 2006.
Kraft Foods, Inc. 4 Dec. 2006 <http://www.kraft.com>.
"Kraft Foods Inc." Hoovers. 24 Nov. 2006.
"Kraft Foods, Inc." (2006). Mergent Online. 4 Dec. 2006.
"Kraft Foods Inc. Reports Solid First Quarter 2006 Results." Business Wire (2006): 1.
ABI Inform Complete. 21 Nov. 2006.
"Population Finder." U.S. Census Bureau. <www.census.gov>.
- 25 -
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
Source: Wikipedia Foundation, Inc
Table 2:
Cookies and Cracker Yearly Sales:
Year
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
Sales
11,295.6
11,217.1
11,128.1
10,899.2
10,654.2
N/A
9,757.10
9,491.30
Missing
8,999.00
5,670.70
8,505.70
8,147.20
7,792.70
7,792.70
7,352.00
6,738.40
6,309.40
6,096.10
8,781.90
Source: AIB Online
- 27 -
Newton County
Paulding County
Pickens County
Pike County
Rockdale County
Spalding County
Walton County
Table 3:
Top 10 Fresh Cookie Brands, Sales and Units Sold:
52 Week Period Ending May 21,2006
Brand Name
Kraft Nabisco Oreo
Kraft Nabisco Chips Ahoy!
Private Label
Keebler Chips Deluxe
Kraft Nabisco Newtons
Archway
Keebler Fudge Shoppe
Pepperidge Farm Chunk
Pepperidge Farm Misc.
Kraft Nabisco Teddy Grahams
Dollar Volume
Unit Sales
(In Millions)
(In Millions)
$474,749,800
310,779,300
291,050,300
101,656,500
97,654,980
93,288,130
87,550,220
83,417,940
81,792,940
84,659,110
187,788,000
127,711,100
164,334,200
41,915,640
34,682,160
36,497,160
31,110,390
31,110,390
30,775,700
36,172,620
Source: AIB Online
Table 4:
Top 10 Cookie Vendors:
Brand
Nabisco Oreo
Keebler
Private Label
Pepperidge Farm
Little Debbie
All Other Non-Key Vendors, M-Z
Murray Biscuit
All Other Non-Key Venors, A-L
Archway
Mother's/Bakery Wagon
Dollar Volume
Unit Sales
(In Millions)
(In Millions)
$1,331.5
420.5
295.1
269.7
205.7
198.1
168.4
168.0
115.3
94.0
553.0
175.4
175.1
97.0
176.1
95.6
104.8
111.9
48.1
40.9
Source: AIB Online
- 28 -
Table 5:
United States Savory Snacks Market Value: 2000-2004
Year
Dollar Volume
Growth
(In Billions)
(%)
18.0
18.7
19.6
20.0
20.1
3.90
4.70
2.00
0.40
2000
2001
2002
2003
2004
Source: Datamonitor
Graph 1:
United States Savory Snacks Market Segmentation: % Share, By Value, 2004
Source: Datamonitor
Table 6:
Top 5 Cookies: Market Share and Media Ad Spending
Market Market
Share
Share
(%)
(%)
2003
2002
Rank
Brand
13.2
13.7
1 Nabisco Oreos
9
8.9
2 Nabisco Chips Ahoy!
3.4
3.9
3 Keebler Chips Deluxe
3.4
2.9
4 Pepperidge Farms Distinctives
3.3
3.4
5 Nabisco Newtons
Source: Advertising Age
- 29 -
Media Ad
Spending
2003
Media Ad
Spending
2002
(In millions)
(In Millions)
32.8
18.8
3.3
2.9
11.4
40.5
21.5
1.7
3.8
4.7
Table 7:
Kraft Foods, Inc. Financial Data:
Income Statement
Dec 05
Dec 04
Dec 03
Revenue
34,113.0
32,168.0
31,010.0
Cost of Goods Sold
21,845.0
20,281.0
18,828.0
Gross Profit
12,268.0
11,887.0
12,182.0
36.0%
37.0%
39.3%
6,637.0
6,396.0
5,358.0
879.0
879.0
813.0
Operating Income
4,752.0
4,612.0
6,011.0
Operating Margin
13.9%
14.3%
19.4%
21.0
13.0
--
657.0
679.0
665.0
Income Before Taxes
4,116.0
3,946.0
5,346.0
Income Taxes
1,209.0
1,274.0
1,866.0
Net Income After Taxes
2,907.0
2,672.0
3,480.0
Continuing Operations
2,904.0
2,669.0
3,476.0
Discontinued Operations
(272.0)
(4.0)
--
Total Operations
2,632.0
2,665.0
3,476.0
Total Net Income
2,632.0
2,665.0
3,476.0
Net Profit Margin
7.7%
8.3%
11.2%
1.55
1.55
2.01
Gross Profit Margin
SG&A Expense
Depreciation & Amortization
Nonoperating Income
Nonoperating Expenses
Diluted EPS from Total Net Income ($)
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
230.0
245.0
217.0
Other Current Assets
- 30 -
Total Current Assets
8,153.0
9,722.0
8,124.0
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
Accounts Payable
6,414.0
6,510.0
6,533.0
Short-Term Debt
2,073.0
2,568.0
1,328.0
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
Preferred Stock Equity
--
--
--
Common Stock Equity
29,593.0
29,911.0
28,530.0
29,593.0
29,911.0
28,530.0
489.9
525.4
541.9
Net Fixed Assets
Liabilities and Shareholders' Equity
Current Liabilities
Other Current Liabilities
Shareholders' Equity
Total Equity
Shares Outstanding (mil.)
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)
34.0
(232.0)
299.0
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)
Net Change in Cash
Depreciation & Amortization
Source: Hoovers
- 31 -
Table 8:
Buying Power Index 2005:
BPI (% Of U.S.)
Total U.S.
Georgia
Atlanta
Atlanta Metro Area:
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
100
2.9553
0.1739
0.0168
0.0275
0.0052
0.0288
0.0651
0.0829
0.2773
0.033
0.0073
0.2217
0.039
0.0393
0.0502
0.3848
0.27
0.0074
0.0023
0.052
0.0031
0.0041
0.0058
0.0227
0.0305
0.0088
0.0034
0.0315
0.0184
0.0214
Source: Sales and Marketing Management
- 32 -
Table 9:
2005 Population
Total U.S.
% of U.S. Population
Georgia
Atlanta
Atlanta Metro Area:
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
296,410,404
3.0608
0.1588
0.0202
0.0301
0.0071
0.0356
0.0621
0.0904
0.2240
0.0371
0.0067
0.2287
0.0380
0.0352
0.0474
0.3089
0.2450
0.0096
0.0038
0.0566
0.0044
0.0055
0.0077
0.0278
0.0379
0.0096
0.0054
0.0265
0.0207
0.0255
Source: U.S. Census
- 33 -
Table 10:
Effective Buying Income 2005:
EBI by Income Group (000s)
Total U.S.
$20,000-34,999
24,948.20
$35,000-49,999 $50,000 & Over
21,468.70
40,758.70
% of Households, by EBI Group
Georgia
Atlanta
Atlanta Metro Area:
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
$20,000-34,999
22.5
21.1
$35,000-49,999 $50,000 & Over
19.6
36.5
14.4
34.8
21.7
24.1
25.5
22.9
15.6
27.9
18.2
18.1
21.4
21.3
21.6
12.8
13.3
18.9
17.8
27.1
26.8
17.5
22.3
25.8
26
23.1
18.5
24.8
21.4
20.3
26.1
21.9
Source: Sales and Marketing Management
- 34 -
24.1
22.4
22.6
21.3
19.4
23.7
19.6
20.5
21.7
20.6
22.5
16.7
15.7
15.6
20.9
19.2
21
22.2
23.5
23
18.5
23.6
23.9
22.6
22.9
19.9
20.1
19.4
35.9
35.9
29.4
30.3
55.1
31.2
51.2
46.4
41.4
43.2
41.6
63.2
44.6
44.6
52.2
23.3
23.1
50.9
32.4
28.3
24.5
36.3
45.6
32.7
36.5
45.8
27.6
41.4
Table 11:
Effective Buying Income 2005:
Total EBI
Total U.S.
5,692,909,567.00
% of U.S. Total EBI
Georgia
Atlanta
Atlanta Metro Area:
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
2.9358
0.1825
0.0161
0.0260
0.0058
0.0289
0.0691
0.0712
0.2822
0.0369
0.0071
0.2547
0.0349
0.0466
0.0607
0.4042
0.2587
0.0071
0.0027
0.0578
0.0038
0.0044
0.0057
0.0252
0.0337
0.0091
0.0045
0.0257
0.0163
0.0229
Source: Sales and Marketing Management
- 35 -
Table 12:
Households In Georgia Buying Cookies 2005
United States
Georgia
Atlanta
Atlanta Metro Area:
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
# of HH's
111,007,700
3,274,600
172,600
# of HH's
Purchasing Cookies
101,794,060.90
3,002,808.20
158,274.20
% of HH's
Purchasing Cookies
100.0000
2.9499
0.1555
20,100
31,700
7,900
37,900
62,000
93,000
249,100
37,700
7,700
252,000
38,500
35,700
47,000
321,800
241,800
10,900
4,100
37,200
4,800
5,900
8,500
29,700
37,300
11,300
5,500
26,700
22,900
25,700
18,431.70
29,068.90
7,244.30
34,754.30
56,854.00
85,281.00
228,424.70
34,570.90
7,060.90
231,084.00
35,304.50
32,736.90
43,099.00
295,090.60
221,730.60
9,995.30
3,759.70
34,112.40
4,401.60
5,410.30
7,794.50
27,234.90
34,204.10
10,362.10
5,043.50
24,483.90
20,999.30
23,566.90
0.0181
0.0286
0.0071
0.0341
0.0559
0.0838
0.2244
0.0340
0.0069
0.2270
0.0347
0.0322
0.0423
0.2899
0.2178
0.0098
0.0037
0.0335
0.0043
0.0053
0.0077
0.0268
0.0336
0.0102
0.0050
0.0241
0.0206
0.0232
Source: Sales and Marketing Management
- 36 -
Table 13:
House Hold Income
County
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
Household Income
$45,997
$46,051
$39,047
$40,929
$63,616
$39,492
$52,931
$53,990
$49,909
$45,052
$49,166
$74,320
$72,945
$45,744
$56,636
$33,135
$32,748
$61,105
$39,602
$36,261
$30,858
$46,025
$56,998
$44,905
$46,278
$50,563
$35,239
$47,092
Retail Sales
$10,260.00
$9,814.00
$7,948.00
$8,671.00
$9,149.00
$11,000.00
$13,473.00
$8,981.00
$13,637.00
$9,240.00
$17,205.00
$10,665.00
$9,814.00
$13,638.00
$15,054.00
$6,978.00
$1,543.00
$9,035.00
$2,275.00
$4,613.00
$4,662.00
$6,405.00
$6,613.00
$9,779.00
$1,215.00
$16,011.00
$10,226.00
$6,957.00
Source: U.S. Census
- 37 -
Table 14:
Kraft Food, Inc. Sales:
Kraft Foods Cycles in Demand
Millions
15000
10000
5000
0
1
2
3
Quarters
Source: Mergent Online
- 38 -
4
2003
2004
2005
2006
Series5
Table 15:
Population Demographics
County
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
Population
% under the age of 5
% of Females
Number of Females
59,954
7.80%
49.90%
29917.046
89,229
8.20%
50.20%
44792.958
21,045
6.80%
46.70%
9828.015
105,453
7.40%
50.80%
53570.124
184,211
7.90%
49.50%
91184.445
267,966
8.90%
51.20%
137198.592
663,818
7.90%
50.20%
333236.636
109,903
7.50%
50.10%
55061.403
19,731
6.30%
49.60%
9786.576
677,959
8.10%
51.30%
347792.967
112,760
7.50%
50.60%
57056.56
104,248
4.80%
51.00%
53166.48
140,393
8.30%
49.10%
68932.963
918,623
7.90%
50.50%
463904.615
726,273
8.50%
49.20%
357326.316
28,338
11,346
7.00%
6.90%
50.80%
27.80%
14395.704
3154.188
167,848
7.60%
50.40%
84595.392
13,147
7.20%
50.80%
6678.676
16,378
6.30%
51.50%
8434.67
22,919
7.20%
51.70%
11849.123
86,713
8.20%
50.90%
44136.917
112,411
8.40%
49.60%
55755.856
28,442
6.50%
50.60%
14391.652
16,128
6.30%
49.60%
7999.488
78,545
7.00%
50.10%
39351.045
61,289
7.70%
51.40%
31502.546
75,647
7.60%
51.00%
38579.97
Source: U.S. Census
- 39 -
Table 16:
Household Size
County
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
# of People
2.79
2.76
2.73
2.66
2.85
2.84
2.64
2.81
2.62
2.62
2.78
2.88
2.83
2.44
2.88
2.58
2.7
2.87
2.72
2.64
2.68
2.77
2.89
2.54
2.81
2.87
2.67
2.82
Source: U.S. Census
- 40 -
Graph 2:
Popluation of Women:
Source: U.S. Census
Population
1,000,000
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
Barrow
Bartow
Butts
Carroll
Cherokee
Clayton
Cobb
Coweta
Dawson
DeKalb
Douglas
Forsyth
County
- 41 -
Population of Women
Fayette
Fulton
Gwinnett
Haralson
Heard
Henry
Jasper
Lamar
Meriwether
Newton
Paulding
Pickens
Pike
Rockdale
Spalding
Walton
Population
Number of Women
Ba
rro
Ba w
rto
w
Bu
t
t
C s
C arr
he ol
ro l
k
C ee
la
yt
o
C n
ob
C b
ow
D eta
aw
s
D on
eK
D alb
ou
g
Fa las
ye
Fo tte
rs
y
Fu th
G lto
w n
in
H ne
ar tt
al
so
H n
ea
r
H d
en
J a ry
sp
e
M Lam r
er
iw ar
et
N her
ew
Pa t o
ul n
d
Pi ing
ck
en
s
R Pik
oc e
k
Sp dal
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di
W ng
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n
Population
Graph 3:
Population Under 5
Population Under 5
1,000,000
900,000
800,000
700,000
600,000
500,000
Population
% under age 5
400,000
300,000
200,000
100,000
0
County
Source: U.S. Census
- 42 -
Graph 4:
Spending
SPENDING
$80,000
$70,000
$60,000
Money
$50,000
Household Income
Retail Spending
$40,000
$30,000
$20,000
$10,000
Ba
rr
Ba ow
rto
w
Bu
C tts
C arr
he ol
ro l
k
C ee
la
yt
o
C n
o
C bb
ow
D eta
aw
s
D on
eK
D alb
ou
g
Fa las
ye
Fo tte
rs
y
Fu th
G lto
w n
i
H nne
ar tt
al
so
H n
ea
r
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sp
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er
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N her
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d
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s
R Pik
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k
Sp dal
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n
$0
County
Source: U.S. Census
Table 17:
General Demographic Data:
County
Population
House Holds
Household Income
Household Size
Marital Status
% of Married Women
Persons Under 5
Females
Education
High School
College
Retail Sales Per Capita
Barrow
59,954
16,354
$45,997
2.79
Bartow
89,229
27,176
$46,051
2.76
Butts
21,045
6,455
$39,047
2.73
Carroll
105,453
31,568
$40,929
2.66
Cherokee
184,211
49,495
$63,616
2.85
Clayton
267,966
82,243
$39,492
2.84
59.3%
7.80%
49.90%
55.6%
8.20%
50.20%
52.7%
6.80%
46.70%
56.0%
7.40%
50.80%
62.2%
7.90%
49.50%
41.2%
8.90%
51.20%
73.30%
10.90%
$10,260.00
71.80%
14.10%
$9,814.00
69.80%
8.60%
$7,948.00
71.10%
16.50%
$8,671.00
84.40%
27%
$9,149.00
80.10%
16.60%
$11,000.00
- 43 -
County
Population
House Holds
Household Income
Household Size
Marital Status
% of Married Women
Persons Under 5
Females
Education
High School
College
Retail Sales Per Capita
County
Population
House Holds
Household Income
Household Size
Marital Status
% of Married Women
Persons Under 5
Females
Education
High School
College
Retail Sales Per Capita
County
Population
House Holds
Household Income
Household Size
Marital Status
% of Married Women
Persons Under 5
Females
Education
High School
College
Retail Sales Per Capita
Cobb
663,818
227,487
$52,931
2.64
Coweta
109,903
31,442
$53,990
2.81
Dawson
19,731
6,069
$49,909
2.62
DeKalb
677,959
249,339
$45,052
2.62
Douglas
112,760
32,822
$49,166
2.78
Fayette
104,248
31,524
$74,320
2.88
55.0%
7.90%
50.20%
58.0%
7.50%
50.10%
66.3%
6.30%
49.60%
37.4%
8.10%
51.30%
53.6%
7.50%
50.60%
55.6%
4.80%
51.00%
88.80%
39.80%
$13,473.00
81.60%
20.60%
$8,981.00
79.50%
18.10%
$13,637.00
85.10%
36.30%
$9,240.00
81.10%
19.20%
$17,205.00
92.40%
36.20%
$10,665.00
Forsyth
140,393
34,565
$72,945
2.83
Fulton
918,623
321,242
$45,744
2.44
68.8%
8.30%
49.10%
42.4%
7.90%
50.50%
85.70%
34.60%
$9,814.00
84.00%
41.40%
$13,638.00
Gwinnett
726,273
202,317
$56,636.00
2.88
Haralson
28,338
9,826
$33,135.00
2.58
Heard
11,346
4,043
$32,748.00
2.7
Henry
167,848
41,373
$61,105.00
2.87
Jasper
13,147
4,175
$39,602.00
2.72
Lamar
16,378
5,712
$36,261.00
2.64
58.7%
8.50%
49.20%
56.0%
7.00%
50.80%
58.3%
6.90%
27.80%
56.0%
7.60%
50.40%
54.6%
7.20%
50.80%
49.8%
6.30%
51.50%
87.30%
34.10%
$15,054.00
63.00%
9.00%
$6,978.00
66.00%
7.30%
$1,543.00
84.20%
19.50%
$9,035.00
69.70%
11.50%
$2,275.00
71.30%
11.30%
$4,613.00
- 44 -
County
Population
House Holds
Household Income
Household Size
Marital Status
% of Married Women
Persons Under 5
Females
Education
High School
College
Retail Sales Per Capita
County
Population
House Holds
Household Income
Household Size
Marital Status
% of Married Women
Persons Under 5
Females
Education
High School
College
Retail Sales Per Capita
Meriwether
22,919
8,248
$30,858.00
2.68
Newton
86,713
21,997
$46,025.00
2.77
Paulding
112,411
28,089
$56,998.00
2.89
Pickens
28,442
8,960
$44,905.00
2.54
Pike
16,128
4,755
$46,278.00
2.81
Rockdale
78,545
24,052
$50,563.00
2.87
46.4%
7.20%
51.70%
48.8%
8.20%
50.90%
66.3%
8.40%
49.60%
59.6%
6.50%
50.60%
57.8%
6.30%
49.60%
54.5%
7.00%
50.10%
65.80%
10.80%
$4,662.00
74.70%
14.50%
$6,405.00
80.80%
15.20%
$6,613.00
70.20%
15.60%
$9,779.00
75.30%
14.00%
$1,215.00
82.40%
23.40%
$16,011.00
Spalding
61,289
21,519
$35,239.00
2.67
Walton
75,647
21,307
$47,092.00
2.82
48.7%
7.70%
51.40%
55.3%
7.60%
51.00%
67.80%
12.50%
$10,226.00
73.50%
13.00%
$6,957.00
Source: U.S. Census
- 45 -