Show Circuit Frozen Dog Dinner

Show Circuit Frozen Dog Dinner

Background & Problem Definition

Tyler Pet Food, Inc. is a major producer of dog food for show-dog kennels in the US. Their main product called Show Circuit which would dramatically improve the dogs' coat. Show Circuit is a completely balanced frozen dog food, which is of the finest quality and has been used and recommended by the professional show-dog owners for years, which means, at the same time, it is still unknown to the general public especially in frozen package, which market the company is heading to.

Industry Analysis

Dog food industry has yet to achieve its full potential market. There are four factors that have influenced the potential market sales: the increase in dog ownership, pet owners continue to invest their animal companions with human qualities, the demand for premium and superpremium dog food is increasing, and lastly, Supermarket distribution is focused on the single largest retail channel for dog food and Boston market is ideal for launching new dog food.

There are 50 dog food manufacturers and 350 dog food brands in the US. Five of them accounted for 83 percent of the market share. Competitor advertising spending and forms of advertising used will be major considered.

The household dog food industry consists of four categories of food. These categories and the percent of total dog food sales of each are shown in Exhibit 1. Super market and grocery stores dispense 51% of all dog foods sold in United States which represents $3.1 billion in sales at manufacturers' price. (Exhibit 2)

Evaluation of Alternatives

The case states that the Boston market has 1.2 percent of the dog population. Since the total dog food market, at manufacturers' prices, is $6.08 billion, the Boston market can be estimated