H -E-B O W N B R A N D S

H -E-B V/S.IN D U STRY

Industry operating on wafer thin

margins of approx. 3 6 pct of sales

H-E-B being an innovative leader
clocked sales/store higher then
national average
H-E-B could achieve this due to:Strong commitment to EDLP
strategy
Better operational efficiency
Adherence to consumer value

W ALM ARTS EN TRY

Amalgamated its discount mass merchandise

store format with grocery store to create

SUPERCENTER in 92
Supercenter stores mushroomed to 888 by
00
Acted as a source of inspiration for Target
and Kmart
Created Neighborhood market format to
focus on health and beauty items, pharmacy
and bakery products
EDLP at Walmart is credited to higher
purchasing power and supply chain
leadership

H .E.BU TT G RO CERY CO M PAN Y

CSR
Activity

Outsta
nding
custom
er
service

Education
and hunger
relief

H-EB
Empower
store
manager
with store
philosophy

Executives
. gained
inputs
globally

New
prods
.+
Suppl
y
chain
strat
egies

H -E-B PILLARS:TH E BO LD
PRO M ISE

THE BOLD
PROMISE
RETENTION OF GREAT
PEOPLE

CUSTOMERS
Providing benefits

Best service

Recognising contribution

Fresh,safe prods.

Creating flexible work

environment

Low price with best

value

Ensuring safe working

environment

SALES GROWTH
Turn ideas into
action

Maximize each
stores potential
Work towards
achieving lower
costs

COMMUNITIES
Earn community
trust and respect
trough action
During crisis take
action
Share time and
resources with
neighbours

Total 4 in number and formed 2 pct of the sales

Featured ready-to-eat products
Attracts people within a larger radius
Carried huge collection of wine, beer,cheeses, oils etc

Formed 16 pct of sales

They operate on a low cost, low price format
With increasing demand, these stores will be translated
to H-E-B supermarkets

Formed 77pct of sales

Provided assortment based on local market needs
Creation of MEAL DEAL to boost topline

Central
markets
Pantry
stores
Supermarke
ts

H -E-B STO RE FO RM ATS

H -E-Bs O W N BRAN D S
Focused on improved

profitability,sales growth and

customer relationship
Own Brand products offered better
margins than national brands
Captive manufacturing saved costs
considerably
Brand advertising and promotional
expenses helped co. to clock higher
awareness and ultimately boosting

H -E-Bs PRO CU REM EN T PLAY

CH ALLEN G ES FACED BY H -E-B

Recom m endation for G lacia

G lacia Road Ahead

G lacia Com petition at a

glance
Cost/Unit

Price/Unit

Gross
Margin %

Ozarka

$1.46

$1.86

21.5%

$0.40

Glacia

$1.23

$1.79

31.3%

$0.56

Evian

$4.23

$5.49

23.0%

$1.26

Aquafina

$1.90

$2.39

20.5%

$0.49

Brand

Profit/Unit

G lacia Story ofContradiction

G lacia Custom er View

G lacia Proposed Solution

Reposition Glacia as Domestic Spring water

G lacia D om estic Spring W ater Advantages

H EB O W N B R A N D
R ES P O N S E TO
C O M P ETITIV E P R IC IN G

O bjective ofO w n Brand Product Line

H -E-B O w n Brand Lost its prem ium Im age

Q uest to Regain Lost G round

THANK YOU