Breeders Own

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Case Assignment

MKT 435 – Marketing Strategy Seminar

Dr. Brunswick

ISSUE

Breeder’s Own Pet Food, Inc. has been a major producer of dog food for show-dog kennels in the United States. The executives for Breeder’s Own are reviewing an introductory program for the company’s entry into the retail branded dog food market in Boston, Massachusetts. The company has become aware that there may be a niche in the market for their formula with no additives or preservatives due to changing attitudes and perceptions within the dog food industry. The decision at hand is to launch or not to launch Breeder’s Mix and also whether to use a $500,000 or $700,000 marketing/advertising budget in doing so.

BACKGROUND

Sales of dog food will total about $14 billion in 2011 at manufacturer’s prices. Still, fewer than half of US dogs are regularly fed prepared dog food. This shows that there may be untapped potential within the dog food industry for Breeder’s Own with regards to the prepared/frozen dog food segment. The dog food industry share was broken down by category: dry (60%), canned (20%), and treats (20%). Frozen or prepared dog food did not even make the cut to be on the list. Reaching into the frozen dog food market is not without risk or costs, but if Breeder’s Mix enters into the market at the right time with the right budget they could steal a large chunk of the market share of dog food sales.

SWOT ANALYSIS

1. What is a good estimate of the size (in $ dollars) of the market (using the supermarket channel only) for frozen dog food in the United States, and in the Boston market area. Develop a table or spreadsheet which lists the annual dollar sales and market share components (using the supermarket channel only) for each of the existing categories of dog foods (dry, canned, dog treats) both nationally (throughout the entire U.S.) and in the Boston market area only.

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In 2011, frozen or refrigerated dog food accounted for about 1 percent of U.S. dog food dollar volume. What I did to figure out the Frozen Dog Food sales of the United States in supermarkets is take 36 percent of the 14 billion dollars of sales in the United States. The 36 percent of 14 billion accounted 59% of dry dog food, 20% of canned dog food, 20% of treats, and for 1 percent of frozen dog food sales in supermarkets. To find the sales of frozen dog food in Boston, MA I just took 1.2% of the sales in the United States.