...The research analyzes the case "Cat Fight in the Pet Food Industry" Parts A and B (Harvard Business School, 1991, pp. 113; Harvard Business School, 1992, p. 1). The results of this analysis are presented in (1) an industry analysis, (2) an assessment of company positioning, and (3) a consideration of the implications of the acquisition of the AndersonClayton firm. Porter (1980, pp. 717) considers the conditions of entry in to an industry as one of the keys to both the structure of the industry and the character of competition within the industry. Economy of scale is one of the major barriers to industry entry identified by Porter (1980, p. 7). Economy of scale was a major barrier to new entrants to the pet food industry at the time of this casethe mid1980s. Thus, competition within the industry could be expected to be directed toward product differentiation and participation in multiple lines within the industry, as opposed to the countering of potential threats from new competitors. Porter (1980, p. 17) pointed out that rivalry among existing competitors can become intense, as each competitor attempts to improve industry position through the use of price competition, advertising, product introductions, and increased customer service. In the pet food industry in the mid1980s, price competition, advertising, and product introductions were widely used by most of the industry competitors in attempts to improve industry position. The conduct of strategic planning by profitoriented...
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...Adam Tarbell MKTG 489 Breeder’s Own Pet Foods, Inc. Case Analysis Background/Problem Definition: Representatives have approached breeder’s Own Pet Foods, Inc. from Marketing Momentum Unlimited, a marketing and advertising consulting firm. The reason for the meeting was to discuss the company’s possible entry into the retail branded dog food market in the Boston market. After hearing Marketing Momentum Unimited’s proposal, Breeder’s Own Pet Foods was presented with the problem of: Should Breeder’s Own Pet Foods go with the advertisings firm’s proposal, if so, which one? Market/Industry Analysis: The U.S. owned-dog population is 78.2 million and it is growing steadily. With a population so large it is no surprise that the pet food sales were around $14 billion in 2011. The market for dog food is divided into three categories, Dry, Canned, and Treats. In the pet food industry, 36% of all dog food sold in the U.S. is sold in supermarkets, which represents about $5 billion in sales; while the other 64% is sold by mass merchandisers. All of these numbers translate to the Boston market, so the idea of selling Breeder’s Own Pet Foods in supermarkets could be very beneficial for the company. Target Market: The target market for Breeder’s Own Pet Foods is the adult population, age 21-54, single or married, with an income larger than $25,000. The reason for this is because dogs are regarded as parts of the family to this market. So, with that mindset and the income...
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...Case Recap First in Show Pet Foods is a major producer of dog food for show-dogs. It is developing a marketing strategy for a new frozen dog food, Show Circuit, to enter into Boston’s supermarket arena. Breaking into the established dog food industry will not be an easy task. Show Circuit is a high quality, balanced frozen dog food that contains fresh meats and cereal with no additives or preservatives. A mink rancher looking to improve his mink’s coat formulated the product. The fresh ingredients have also proven to make the coats of dogs beautiful while along with making them healthy. Show Circuit has been used by professional show dog owners for years and is considered to be the world’s finest dog food. It is packaged frozen in order to prevent the raw meat from rotting. Considering the awareness and the importance of the health of furry family members this product will be attractive to dog owners. If the dog food is sold, it will be the first and only balanced, all natural frozen dog food in Boston supermarkets. Problem Identification In order for Show Circuit to successfully sell dog food in the retail market for all dogs the marketing and advertising strategies need to be analyzed and problems solved. Show Circuit has to be properly introduced and sold in the market. To do so effectively the strategies has to generate public attention to the brand name using different types of advertising but without going over the allotted budget. The packaging has...
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...First In Show Pet Foods currently produces and distributes dog food for show dog kennels in the United States. The company’s product, Show Circuit, is a unique food that gives dogs a healthy, shiny coat. The product is 85% fresh federally inspected beef and chicken and 15% high quality fortified cereal and contains no additives or preservatives. The product is frozen to keep the uncooked meat fresh. Problem: It has been brought to the company’s attention that a similar frozen dog food product is being marketed and sold in the freezer section of supermarkets in the southwestern United States. The major problem the company faces is whether or not to proceed ahead with a plan to market and sell their product in Boston area supermarkets. This opportunity prevents several challenges for the company. The first challenge is the fact their product would be placed in the frozen food section where most customers don’t think to look for dog food. The next challenge they face is that Show Circuit, while well-known to show dog kennels, is a new product that is unknown to the general public. The final challenge the company faces is that First In Show Pets Foods is also a brand that is unknown to the general public. Alternatives: First in Show Pets Foods has the following alternatives to consider: 1. Implement the advertising campaign with a budget of $500,000. This budget would include money for television, newspaper/magazine, collateral, agency fees and miscellaneous costs. ...
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...CAT FIGHT PET FOOD INDUSTRY Ralston Purina Presented By : Victor M Datta Roll No. : 08 FMS XVIth Evening Batch Guide : Dr. Jadeja Contents Scenario of Pet Food Industry in United States Ralston Purina ( NESTLE – PURINA ) PESTLE Analysis Customer Analysis Market Analysis Internal Analysis SWOT Analysis Strategy Formulation Strategy Implementation Scenario of Pet Food Industry in United States According to the 2011 – 2012 APPA National Pet Owners Survey, 62% of U.S. households own a pet, which equates to 72.9 millions homes In 1988, the first year the survey was conducted, 56% of U.S. households owned a pet as compared to 62% in 2008 Total Number of Pets Owned in the U.S. (millions) Bird 16.2 Cat 86.4 Dog 78.2 Reptile 3.0 Small Animal 16.0 Ralston Purina ( NESTLE – PURINA ) • Started as feed business in 1894 • Along with pet food, also in business of cattle feed, bakery product, batteries and cereals • USA’s largest pet food manufacturer with market share of 28% • World’s largest producer of dry dog and dry cat and semi moist cat food • Pet food division was the largest profit centre • It was 25% by sales and 45% by company’s profit Ralston Purina ( NESTLE – PURINA ) • In dog dry food, it had leading brands like Dog Chow and Puppy Chow • Industry leader in price determination • 9 plants across USA • Distribution is done through...
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...I. Business Metric and Key Marketing Problem Statement Zenith Pet Foods has tremendous potential to enter the household dog food market and to essentially introduce a new product, unknown to the general public. Until Show Circuit, Zenith Pet Foods frozen dog food brand, dog food cell into four categories, dry, canned, semimost, and dog treats (82). Along with this huge market potential come obstacles and problems to overcome. The key marketing problem is to prove to the frozen-food buyer of supermarkets that Show Circuit can generate sales by implementing the most effective advertising and promotional activities to reach the most profitable target market. By identifying promotional activities that will have a high reach to their target market, Show Circuit will enter the market creating brand identity. Show Circuit is creating a new product category of frozen dog food, therefore the need to generate brand awareness to the general public is essential in generating sales is the most critical aspect for Zenith Pet Foods to start making a profit. II. Alternatives Sales is initially the most important business metric for Zenith Pet Foods to focus on because by generating sales this will in turn increase the gross margin and finally after time increase EBITA. However, since Show Circuit is a new product, they can’t expect to increase EBITA without first focusing on increasing sales. As Zenith Pet Food’s marketing wizard, if I don’t increase sales then our gross margin won’t...
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...Show Pet Foods, Inc. BUAD 6300 Strategic Marketing and Analysis Dr. Michael L. Mallin Spring 2011 Meagan Frances Ayers • Anthony Fischer • Christopher Bomer Issue First in Show Pet Foods, Inc. has been a major producer of dog food for show dogs within the dog show circuit for several years. They create high-quality and high-priced products for show dogs and now see an opportunity to enter into new retail channels with their product due to changing attitudes and perceptions within the dog food industry, regarding dog food consumers. Their greatest concerns are how they should go about breaking into the retail channel, who to target, how to promote their product, how much to allot to this initiative, and where to start selling their product. First in Show Pet Food, Inc. executives are carefully considering how to launch their Show Circuit brand dog food into the greater Boston market. Background Industry In 2009, dog food sales will total about $10 billion at manufacturers’ prices. However, fewer than half of US dogs are regularly fed prepared dog food. This indicates there may be untapped potential within the dog food industry with regards to the prepared dog foods segment. As of 2008, the dog food industry share was broken down by category: Dry (65%), Canned (15%), and Treats (20%). Interestingly, frozen/prepared dog foods were not on the list, leaving a huge potential market for First in Show Pet Foods...
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...Premium Dog Products Case Study One Sandy VanBoxel Lakeland College Bus. 350 Marketing Principles June 16, 2011 The pet products industry is rapidly growing. According to the 2011-2012 American Pet Products Association National Pet Owners Survey, 62% of U.S. households own a pet, which equates to 72.9 million homes. (Association) Those pet parents love their pets and want high quality products and services for them. Many times owners equate the money spent on their pets to how much they love them. Even though the economy has faltered in the last few years the pet products industry had continued to grow. Andrew Martin had this to say in an article in The New York Times “The industry has continued to grow through the recession, albeit at a slower pace, and last year, Americans spent a record $55 billion on their pets, according to the market research firm Packaged Facts, more than the gross domestic product of Belarus.” (Martin) There looks to be no end to the expansion of the pet products market in the near future. How do marketers decide who to target and how best to appeal to targeted buyers? Who is the target market for the premium dog product brand? Marketers use demographics to define their target market. They look at things like age, gender, income level, educational level, geographic location, and nationality to determine their target market. The marketers focus on buyers needs and position their products for...
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...Cat Fight in the Pet Food Industry While reading the case the first thing that comes to my mind is to analyze the market and competition. The pet food industry seems to be very hard industry to enter for the new companies back in 80s. If we look at the firms, all of them are big, experienced and benefit from Economies of Scale, so for the new firm to enter this industry would be hard. So, that is why most of the firms in this industry do product diversification and enter multiple lines inside the industry, rather than trying to avoid threats from potential entrants. Among the competitors, I think, the best-positioned firm was Ralston Purina, because they were strong in almost everywhere: Cat Food, Dog food and all the sub-segments of these 2 major segments. But we have to also mention here that there were some other well-positioned firms on the market, especially in a specific niche like moist cat food, half-moist dog food, etc. One of the firms, that was very well-positioned on the market in moist-dog-food segment, holding more than 60% of market share, was Anderson Clayton, which was basically dominating the moist-dog-food market. However, they did not have strong position on dry dog food market and have not even entered cat food market. I am outlining this company, because the sentence in the ends of the case: “In mid-1986, the industry structure appeared as though it might change, as Anderson Clayton was rumored to be up for the sale.” So we know from the case that...
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...That day taught me a valuable lesson; even though my dog did achieve an obedience title he showed me there are greater things in life than getting that .Training your dog for the obedience ring is a lot of hard work. We trained for months working twice a day seven days a week. While we enjoyed training I wanted to earn that obedience title so bad I it was all I could think of for months. Uconn knew all the exercises he needed to perform inside and out, backwards and forwards. I went to the ring area with Uconn early in the morning. I wanted both of us to get accustom to the sights and sounds of where the obedience ring was set up. I had a book with me to try to so some reading to relax before we went in the ring. It was a warm August day. The building we were in was a pole building at the fairgrounds. It was damp and cool in the building and I wondered if the cool air was making me feel not so great. The obedience ring was set up with white gating all around it. It was a perfect square. The matting being used was rubber and a dark green color. We found a place in the last row. The area was crowded with spectators, other exhibitors and dogs. The judge was a woman. I had seen and shown other dogs under her in the past. She was very pleasant and smiled and welcomed us in her ring. For one thing the dog is very unpredictable. It takes a lot of hard work and patience to get your dog trained. I was at an obedience trial with Uconn. There was a little boy in a wheelchair...
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...Breeder’s Own Pet Food Inc. Case Analysis CJ Class:Marketing Strategy September 06, 2014 Breeder’s Own Pet Foods, Inc. Case Analysis Case Recap Breeder’s Own Pet Foods, Inc. proposes to adopt a market penetration strategy due to having identified a growth opportunity in the dog food market, for its nutritionally balanced, high quality dog food brand, Breeder’s Mix. This premium product has been sold traditionally, to the show dog kennel market, but company executives are now convinced it can be repackaged and offered as a frozen premium product, to picky pet owners via general retail distribution channels. Since the product is considered premium, it should fetch premium prices because of its ingredients and its claimed benefits to animals: it consists of 85% fresh meat, 15% high quality fortified cereal with no additives or preservatives and will dramatically improve the coats of animals. (Kerin and Peterson, 2013). One of the major challenges for Breeder’s Own is convincing customers that frozen dog food is the wave of the future. Based on positive feedback from food brokers, the company believes it can carve out a substantial market share with this product. The initial plan involves test marketing in the Boston area and if successful quickly ramping up production to make it available nationally (Kerin and Peterson, 2013). Problem Identification Traditionally, dog food is produced as dried, canned, or treats; since this new product is intended to be frozen...
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...I. SUMMARY Tyler Pet Food Inc. is a major distributor of dog food for show-dog kennels in the United States. After some researches and discussions, Tyler Pet Foods (TPF) decided to enter into the household dog food market in the Boston, Massachusetts metropolitan area. TPF hired a consulting firm to help it promote and distribute its product. The programs included situational and competitive analysis, the problems and opportunities of the company, and creative strategies to promote its product. II. INDUSTRY The sales of dog food will total almost $5.6 billion this year, with $3.1 billion in sales coming from supermarket chains. The Boston area has 1.5% of the U.S. population, and 1.5% of the dog population. The dog food industry has been growing rapidly because of owners desire for companionship or need for protection. Dog owners are generally price sensitive, yet they spend more than $10 billion annually for veterinary fees and medications for dogs. Supermarkets make approximately 55% of all dog food sales. Typically, all pet foods are located in one area of the store, separate from human foods. The following graph shows the detailed market potential of Show Circuit dog food. Category Share of Dog Food Total Sales of Dog Food Boston Market Potential Supermarket % Show Circuit Market Potential Canned 23.7% $5.6 billion 1.5% 55% $10,949,400 Dry 58.6% $5.6 billion 1.5% 55% $27,073,200 Semimoist 2.2% $5.6 billion 1.5% 55% $1,016,400 Treats 15.5% $5.6 billion 1.5% 55% $7,161,000 III...
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...Business Report- Ron’s Pet World Business Report- Ron’s Pet World EXECUTIVE SUMMARY: The business of Ron’s Pet World (RPW) started out as a small-boutique store based in Sydney’s west, which has started to slowly develop competitive advantage over its local competitors to reach a stage where they are preparing to purchase the global ‘Pet Barn’ franchise. RPW endeavors to be the global market leader for pet stores by 2020 through the implementation of a series of best practice operation processes regarding inputs, transformation processes and outputs, applicable to every store. Although there is a risk of some of its competitors changing their operation processes in order to reduce the economic viability of RPW, it is critically important that operations processes will be implemented concerning: 1.Global sourcing of materials 2.Customer service 3.The 4Vs (volume, variety, variation in demand and visibility). This is to ensure that customers receive products and services to the upmost of standards. This will ensure that a strong brand name is maintained and developed. At present, prior to its acquisition of ‘Pet Barn’, RPW has several inefficiencies in its operations process that could hinder profit maximisation. This report will provide a series of recommendations to ensure these issues are addressed. 1.1 GLOBAL SOURCING OF MATERIALS: Inputs, defined as the resources that are put into a system to achieve a desired output, are imperative to RPW to create high quality...
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...2001, named Nestle Purina Petcare. It produces pet foods, treats and litter includes more than 40 brands sold in 100 countries. Nestle Purina is the leader comapany in pet food sales, volume and market share in the The United States as of 2012 worth 12 Billion USD. Product and Service - Customer Description and Product Distribution | Nestle Purina Pet care occupies the top spot in pet food industry with 28% of market share in US, provides value to consumers by providing high-quality; nutritious pet products that can help enrich their pets’ lives. It also provides insurance for pets under its Purinacare insurance. Its core philosophies include promoting responsible pet care, humane education, community involvement, and the positive bond between people and their pets(2015a). An extensive strong portfolio of brands provides the company with a competitive advantage, and results in steady revenues and profit. In 2015, 85.8 million Cats and 77.8 million Dogs lived in household in the United States as pets(2015c). Purina’s Primary target customers are men and women between 25-54, work in office occupation with average-high income to spend on premium products for their pets, secondary target is men and women 18-49 with other forms of employment who spend average money for their pets and tertiary target is above 50 who are on retirement...
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...Mother Natures' All-Organic Pet Food Brett M. Chrestman Southern New Hampshire University The company is opening an independent pet store and they want to market an all-natural pet food called, "Mother Natures' All-Organic Pet Food". They want to make sure they market the product to the best of their ability to maximize profits and deliver customers a product they can justify the expensive price. It delivers what they promise unlike a majority of the competitors. Most of them offer a semi-organic pet food, but even those contain harmful impurities in them. The food comes from ALL-NATURAL organic food that Mother Nature put here for us to utilize to the best of our ability, which consists of being extraordinarily health consciousness. \ Mother Nature’s All-Organic Pet Food utilized a SWOT analysis to assist in locating the best target market and finding ways it can leverage its strengths, allowing them to benefit from all the opportunities in the marketplace. Figure 1: SWOT analysis for Mother Nature’s All-Organic Pet Food Mother Nature’s All-Organic Pet Food’s strengths are identified as helping improve the overall well-being of pets, providing a product high in quality, and the use of local organic ingredients in the pet food. It goes without saying that their strengths coincide with their opportunities. Potential opportunities include pets being viewed as members of “the family”, growing recognition in organic and all-natural pet foods, and inform the consumers...
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