Case Analysis - First in Show Pets

Case Analysis – First in Show Pets

BACKGROUND AND PROBLEM DEFINITION

The case discusses the dilemma First in Show Pet Foods are under in deciding whether to enter retail dog food market after being in a different market area altogether. Their problem also lies in deciding what kind of marketing strategies to target the retail dog food market and also make a return of 15% in its first year of operation. To begin with, First in Show Pet Foods is a major producer of dog food for show dog kennels, which improved the coat of the dog. Being producer of balanced frozen dog food of finest quality, it also had the problem of choosing the proper distribution channel to house its products.

MARKET AND INDUSTRY ANALYSIS

The Dog Food Industry is a growing industry in Boston (1.2% of entire dog population in US reside here). There are 5 major competitors namely Nestle(Largest),Iams,Hill's Pet Nutrition,MasterFoods and Del Monte who in all have 75% market share. The dog products are distributed through 2 major channels namely Supermarket (36% Market Share) and Mass Merchandisers (64% Market Share). Since the product requires refrigeration, Supermarkets would be the ideal distributor. The market is divided into 3 major categories Dry Dog Foods, Canned Dog food and treats category of which major competitors own 68%,88% and 73% respectively. Being a new entrant, the key differentiators for First in Show Pet Foods would be premium high quality first of its kind frozen food, first organic food at Boston and benefits of dogs coat improvement.

MARKETING STRATEGIES

Product: Unique dog food, dog coat improvement and 12 tubes per case each of 15 ounce.

Price: Exhibit 1 shows present competitor prices and Exhibit 2 shows price to be sold i.e $12.09 to achieve 15% gross profit.

Promotion: - Create awareness of the new brand, Obtain distribution through supermarket outlets, Motivate trial through coupon redemption, Motivate trial through emotional impact of television

Place: Due to its high pricing, it needs to be classified as premium product and as discussed earlier, its distribution channel should be supermarkets

EVALUATION OF ALTERNATIVE COURSES OF ACTION

1) Go ahead with $500,000 Budget : Break-Even Analysis (See Exhibit 3) shows their BreakEven Sales revenue should be $5.6 M. With its various strong points, this option looks feasible as Boston's retail dog market has a high growth potential and also as a new entrant, it is necessary to create significant brand awareness as other successful brands had invested quite a bit on this.

2) Go