1. Category Management Oatmeal Ryan Knotts and Reid Knotts

2. Category Definition Product Snapshot Step 1 Demographics Step 1

3. Know Your Customers LifeStyle BehaviorStage Cosmopolitan Centers Affluent Suburban Spreads Comfortable Country Struggling Urban Cores Modest Working Towns Plain Rural LivingTotal Start-Up Families HHs with Young Children Only < 6 109121 13211089113 Small Scale Families Small HHs with Older Children 6+ 908310193847587 Younger Bustling Families Large HHs with Children (6+), HOH <40 13211511191105 108 Older Bustling Families Large HHs with Children (6+), HOH 40+ 137134117137130107127 Young Transitionals Any size HHs, No Children, < 35 68637270776670 Independent Singles 1 person HHs, No Children, 35-64 68766769666268 Senior Singles 1 person HHs, No Children, 65+ 88 8583829187 Established Couples 2+ person HHs, No Children, 35-54 10710394106899097 Empty Nest Couples 2+ person HHs, No Children, 55-64 114115107113102110 Senior Couples 2+ person HHs, No Children, 65+ 125128135125133149135 Total 99107103979698100

4. Demographics Demographic Variables % VolumeIndex Race of Head of Household White68.5%99 Black12.0%100 Hispanic12.7%102 Asian4.5%105 Other2.3%108 Number of Persons 1 Person19.6%72 2 Persons34.8%107 3 Persons16.1%100 4 Persons15.0%113 5+ Persons14.6%131 Household Income Under $10,0006.3%80 $10,000 - $19,99910.0%86 $20,000 - $29,99910.9%96 $30,000 - $39,99910.7%101 $40,000 - $49,9999.8%105 $50,000 - $74,99918.9%104 $75,000 - $99,99912.7%108 $100,000 - $149,99912.5%110 $150,000 or More8.3%103

5. Quaker Demographics Quaker (Cereal : Hot) 16 oz. Total Consumption BehaviorScape Framework LifeStyle BehaviorStage Cosmopolita n Centers Affluent Suburban Spreads Comfortab le Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < 6 12614510713710564113 Small Scale Families Small HHs with Older Children 6+ 100959378896386 Younger Bustling Families Large HHs with Children (6+), HOH <40 14912610161988098 Older Bustling Families Large HHs with Children (6+), HOH 40+ 15015311611712183125 Young Transitionals Any size HHs, No Children, < 35 70635560676264 Independent Singles 1 person HHs, No Children, 35-64 72836364624964 Senior Singles 1 person HHs, No Children, 65+ 101847981 6880 Established Couples 2+ person HHs, No Children, 35-54 12211388119807496 Empty Nest Couples 2+ person HHs, No Children, 55-64 142130113131104105118 Senior Couples 2+ person HHs, No Children, 65+ 155164148133150141149 Total 112122101939483100

6. Private Label Demographics Private Label (Cereal : Hot) 16 oz. Total Consumption BehaviorScape Framework LifeStyle BehaviorStage Cosmopolit an Centers Affluent Suburban Spreads Comfortab le Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < 6 73101127145103 108 Small Scale Families Small HHs with Older Children 6+ 796510594878886 Younger Bustling Families Large HHs with Children (6+), HOH <40 10711311413299135118 Older Bustling Families Large HHs with Children (6+), HOH 40+ 129119122167132127130 Young Transitionals Any size HHs, No Children, < 35 59539460847570 Independent Singles 1 person HHs, No Children, 35-64 60626671707468 Senior Singles 1 person HHs, No Children, 65+ 869599869012499 Established Couples 2+ person HHs, No Children, 35-54 8489961029910596 Empty Nest Couples 2+ person HHs, No Children, 55-64 86941029399120101 Senior Couples 2+ person HHs, No Children, 65+ 93100131124122169128 Total 829210610297115100

7. Cream Of Wheat Demographics LifeStyle BehaviorStage Cosmopo litan Centers Affluent Suburban Spreads Comfortab le Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < 6 13211010710366111104 Small Scale Families Small HHs with Older Children 6+ 106122871457590102 Younger Bustling Families Large HHs with Children (6+), HOH <40 17377105148131115122 Older Bustling Families Large HHs with Children (6+), HOH 40+ 1561191089782112 Young Transitionals Any size HHs, No Children, < 35 615451109396365 Independent Singles 1 person HHs, No Children, 35-64 81649687697077 Senior Singles 1 person HHs, No Children, 65+ 967368121677981 Established Couples 2+ person HHs, No Children, 35-54 103921098712592102 Empty Nest Couples 2+ person HHs, No Children, 55-64 106115891259488100 Senior Couples 2+ person HHs, No Children, 65+ 183132109200147129141 Total 111101951178895100

8. Malt-O-Meal Demographics LifeStyle BehaviorStage Cosmopolitan Centers Affluent Suburban Spreads Comfortable Country Struggling Urban Cores Modest Working Towns Plain Rural Living Total Start-Up Families HHs with Young Children Only < 6 656370146142118101 Small Scale Families Small HHs with Older Children 6+ 86687313110612998 Younger Bustling Families Large HHs with Children (6+), HOH <40 113145129126110229148 Older Bustling Families Large HHs with Children (6+), HOH 40+ 12984190185162278165 Young Transitionals Any size HHs, No Children, < 35 56575997538569 Independent Singles 1 person HHs, No Children, 35-64 42285680479559 Senior Singles 1 person HHs, No Children, 65+ 3540536511811179 Established Couples 2+ person HHs, No Children, 35-54 10186571198511592 Empty Nest Couples 2+ person HHs, No Children, 55-64 8354791021008782 Senior Couples 2+ person HHs, No Children, 65+ 5482121131148177125 Total 727092115102140100

9. Category Role: Step Two

10. Category Assessment StoreLocationSKUsUnique SKUs*Audited by Walmart MLKMLK Blvd (6 th )406Reid, Ryan Walmart on CampusGarland30Reid, Ryan Neighborhood MarketWedington355Reid, Ryan WalgreensMLK Blvd (6 th )62Reid, Ryan Harp’sGarland3316Reid, Ryan Harp’sWedington3116Reid, Ryan TargetMall Ave90Reid, Ryan Marvin’s IGACollege229Reid, Ryan Aldi’sMLK Blvd (6 th )22Reid, Ryan Ozarks Natural FoodCollege16 Reid, Ryan Complete Audit 19772

11. Category Assessment BRAND NAMEBRAND TYPE N WALMART TARGETMLK SC ALDI'S OZARK NATURAL FOODS MARVIN'S IGA LAFAYETTE HARPS ON GARLAND HARPS ON WEDDINGTON WALMART ON CAMPUS WALGREENS ON MLK GREAT VALUEAPPLES AND CINNAMON $ 1.72 GREAT VALUECINNAMON ROLL $ 1.72 $ 3.99 GREAT VALUEFRUIT AND CREAM VARIETY PACK $ 1.72 GREAT VALUE FRUIT AND CREAM VARIETY VALUE PACK $ 2.98 GREAT VALUEMAPLE BROWN SUGAR $ 1.72 $ 2.98 GREAT VALUEMAPLE BROWN SUGAR VALUE PACK $ 2.98 GREAT VALUEMORNING TRIO VARIETY PACK $ 1.72 GREAT VALUEORIGINAL $ 1.72 GREAT VALUEPEACHES AND CREAM $ 1.72 GREAT VALUEQUICK WHEAT CEREAL $ 2.34 GREAT VALUESTRAWBERRIES AND CREAM $ 1.72 GREAT VALUESUGAR FREE APPLE CINNAMON $ 1.62 GREAT VALUESUGAR FREE MAPLE BROWN SUGAR $ 1.62 GREAT VALUEVARIETY PACK $ 1.72 NICEMAPLE BROWN SUGAR $ 2.89 NICEVARIETY PACK $ 2.89 MARKET PANTRYLOW SUGAR $ 1.57 MARKET PANTRYMAPLE BROWN SUGAR $ 1.57 RACHEL RAYAPPLE CRANBERRY $ 2.00 RACHEL RAYMAPPLE DRIZZLE $ 2.00 OAT BRANORIGINAL $ 3.49 QUAKERAPPLES AND CINNAMON $ 2.50 $ 3.99 $ 4.09 $ 1.72 $ 2.89 QUAKERAPPLES AND CRANBERRY $ 2.50 $ 2.98 QUAKERCINNAMON SPICE $ 2.50 $ 3.99 $ 2.98 QUAKERDINOSAUR EGGS $ 2.50 $ 2.54 $ 2.50 QUAKERFLAVOR VARIETY $ 2.50 $ 3.99 $ 4.09 $ 4.49 QUAKERFRUIT AND CREAM $ 2.50 $ 2.54 $ 2.50 $ 3.99 QUAKER FRUIT AND CREAM VARIETY VALUE PACK $ 4.88 $ 1.72 QUAKERHIGH FIBER CINNAMON SWIRL $ 2.50 QUAKERHONEY BUN $ 2.50 QUAKER LOW SUGAR APPLES AND CINNAMON $ 2.50 QUAKERLOW SUGAR MAPLE BROWN SUGAR $ 2.50 $ 3.99 QUAKERLOW SUGAR VARIETY $ 2.50 $ 2.54 $ 2.50 $ 4.09 $ 4.49 QUAKERMAPLE BROWN SUGAR $ 2.50 $ 2.54 $ 2.50 $ 3.99 $ 2.98 $ 1.72 $ 4.49 QUAKERMAPLE BROWN SUGAR VALUE PACK $ 4.88 QUAKERORIGINAL $ 2.50 $ 2.54 $ 2.50 $ 3.99 $ 2.98 QUAKERPEACHES AND CREAM $ 2.98 QUAKERRAISINS AND SPICE $ 2.50 QUAKERRAISINS, SPICE AND WALNUT $ 2.50 $ 2.98 QUAKERSTRAWBERRIES AND CREAM $ 2.50 $ 3.99 $ 2.98 QUAKER WEIGHT CONTROL MAPLE BROWN SUGAR $ 2.50 $ 3.99 $ 2.98 QUAKERWEIGHT CONTROL VARIETY $ 2.50 $ 3.28 BAKERY ON MAINAPPLE PIE $ 5.29 BAKERY ON MAINBLUBERRY SCONE $ 4.19 BAKERY ON MAINCARROT CAKE $ 5.99 BAKERY ON MAINMAPLE MULTI-GRAIN $ 5.19 BAKERY ON MAINSTRAWBERRY SHORTCAKE $ 5.29 ECO-PLANETAPPLES AND CINNAMON $ 4.99 ECO-PLANETINSTANT ORIGINAL $ 4.99

12. Category Scorecard Display Space Brand Name Facings for N Walmart Facings for MLK Walmart Facings for Target Facings for Aldi's Facings for Ozark Natural Foods Facings for Marvins Facings for Harps on Garland Facings for Harps on Wedington Facings for Walmart on Campus Facings for Walgreen's MLK Always Save % of Total Sum 4.7%4.4% % of Total N 3.1%2.8% Bakery on Main % of Total Sum 33.3% % of Total N 31.3% Best Choice % of Total Sum 33.3%19.8%18.9% % of Total N 28.6%21.9%19.4% Better Oats % of Total Sum 2.3%2.2% % of Total N 3.1%2.8% Co-Co Wheats % of Total Sum 3.3% % of Total N 4.8% Cream of Wheat % of Total Sum4.0% 7.1% 10.0%11.6%8.9% % of Total N5.7% 11.1% 9.5%9.4%8.3% Eco-Planet % of Total Sum 16.7% % of Total N 18.8% Great Value % of Total Sum41.0%47.3% % of Total N31.4%38.9% Hodgson Mill % of Total Sum 3.3% 8.9% % of Total N 4.8% 11.1% Kretschmer % of Total Sum2.0% 3.5%3.3% % of Total N2.9% 3.1%2.8% Malt-O-Meal % of Total Sum2.0% 8.1%7.8% % of Total N2.9% 9.4%8.3% Market Pantry % of Total Sum 32.1% % of Total N 22.2% McCann's % of Total Sum 4.8%3.3% % of Total N 6.3%4.8% Millville % of Total Sum 100.0% % of Total N 100.0% Natures Path % of Total Sum 40.5% % of Total N 37.5% Nice % of Total Sum 30.0% % of Total N 33.3% Oat Bran % of Total Sum 5.0%4.7%3.3% % of Total N 4.8%3.1%2.8% Oat Fit % of Total Sum 10.7% % of Total N 11.1% Oat Rev % of Total Sum2.0% 7.0%6.7% % of Total N2.9% 9.4%8.3% Quaker % of Total Sum49.0%48.4%50.0% 41.7%38.4%35.6%100.0%70.0% % of Total N54.3%55.6% 42.9%37.5%33.3%100.0%66.7% Quinoa Flakes % of Total Sum 4.8% % of Total N 6.3% Rachel Ray % of Total Sum 4.4% % of Total N 5.6% Total % of Total Sum100.0% % of Total N100.0%

13. Category Management Gross Margin$ and % Brand NameGm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM%Gm$GM% % of Total N 3.1% Always Save % of Total N 1.0% 3.0%1.0%2.7%1.0% % of Total Sum 4.6% 3.9% Bakery on Main % of Total N 5.2% 31.3%5.2% % of Total Sum 31.3% Best Choice % of Total N 9.3% 27.3%9.3%21.2%9.3%18.9%9.3% % of Total Sum 35.6% 32.0% 27.1% Better Oats % of Total N 1.0% 3.0%1.0%2.7%1.0% % of Total Sum 4.6% 3.9% Co-Co Wheats % of Total N 1.0% 2.5%1.0% 4.5%1.0% % of Total Sum 6.0% 5.9% Cream of Wheat % of Total N 8.2%5.7%8.2%5.0%8.2%11.1%8.2% 9.1%8.2%9.1%8.2%8.1%8.2% % of Total Sum 9.1% 11.9% 6.4% 11.9% 6.8% 5.8% Eco- Planet % of Total N 3.1% 18.8%3.1% % of Total Sum 18.8% Great Value % of Total N 14.4%31.4%14.4%35.0%14.4% 4.5%14.4%3.0%14.4%2.7%14.4% % of Total Sum 40.9% 36.8% 3.7% 2.3% 1.9% Hodgson Mill % of Total N 5.2% 4.5%5.2% 10.8%5.2% % of Total Sum 5.9% 15.5% Kretschm er % of Total N 1.0%2.9%1.0% 3.0%1.0%2.7%1.0% % of Total Sum 7.2% 2.9% 2.4% Malt-O- Meal % of Total N 3.1%2.9%3.1% 9.1%3.1%8.1%3.1% % of Total Sum -5.1% 7.7% 6.5% Market Pantry % of Total N 2.1% 22.2%2.1% % of Total Sum 45.3% McCann' s % of Total N 1.0% 6.3%1.0%4.5%1.0% % of Total Sum 6.3% 5.9% Millville% of Total N 2.1% 100.0%2.1% % of Total Sum 100.0% Natures Path % of Total N 6.2% 37.5%6.2% % of Total Sum 37.5% Nice% of Total N 2.1% 33.3% % of Total Sum 53.3% Oat Bran% of Total N 1.0% 4.5%1.0%3.0%1.0%2.7%1.0% % of Total Sum 5.9% 4.6% 3.9% Oat Fit% of Total N 1.0% 11.1%1.0% % of Total Sum 22.6% Oat Rev% of Total N 4.1%2.9%4.1%2.5%4.1% 9.1%4.1%8.1%4.1% % of Total Sum 1.5% 6.0% 11.8% 10.0% Quaker% of Total N 21.6%54.3%21.6%50.0%21.6%55.6%21.6% 40.9%21.6%36.4%21.6%32.4%21.6%100.0%21.6%66.7% % of Total Sum 46.5% 27.4% 25.6% 25.1% 22.7% 19.2% 46.7% Quinoa Flakes % of Total N 1.0% 6.3%1.0% % of Total Sum 6.3% Rachel Ray % of Total N 2.1% 5.0%2.1% % of Total Sum 11.9% Total% of Total N 100.0% % of Total Sum 100.0%

14. Category Strategy

15. Display Space Quaker- Large display space/ Large amount of SKU’s. Also found in almost all stores Great Value- Higher Gross Margins. High display space along with high number of SKUs. Market Pantry- Sold exclusively at Target. Malt-O-Meal- terrible display space and limited SKU’s Ozark, Aldis, Marvins- Very limited Assortments, small shelf space

16. Stocking Rate Quaker= 44%Malt-O-Meal=83%

17. Tactics Walmart-decrease assortment among brands that don’t sell as much Target- needs to increase their assortment to offer different flavors and increase demand among current customers Harps- increase in private label SKU’s among this category

18. Circular Trade Area Harps Ages 15-34 most popular in 1 mile ring White and other most purchasers as well as household under $25,000 2 Mile ring is the exact same Walmart Ages 15-34 Black, Asian, Other major purchasers along with households of less than $25,000. Also highest with one person household with some college degree. Highest being females ages 15-29 Males 18-29 Struggling Urban cores. Highest with no children Target Households 4 and 5 $40,000-$75,000 Multiple kids 18-24 35-44

19. Private Label Extremely successful in category High margins and low prices Lost costs Increase SKU’s of private label

20. Category Review Prices have increased Unit Costs increased Gross margin, gross margin percentage have decreased among Quaker at Walmart Profit contribution is more prevalent among Walmart Stores with increased SKU’s and display space for private label