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Marketing Analysis Of First In Show Pet Foods

Paper Type: Free Essay Subject: Marketing
Wordcount: 2829 words Published: 18th Apr 2017

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However, to start any new business venture, several factors have to be considered. The management is therefore presented with the task of formulating the best approach inclusive of objectives, constraints, available resources, monetary budgets, period, operation market areas and nature of competition amongst many others. For First in Show Pet Foods, Inc it was not an exception hence the attempts by the executives in formulating the best approach to undertake in venturing in the now desirable new market. The marketing firm representatives would provide a detailed proposal to the company’s executives for analysis and possible formulation of the strategies towards the start of business in the particular market of retail dog foods. Further, the information from the food brokers was to be considered in structuring the appropriate approaches, policies and strategies for the new business activity.

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2. Situation analysis

The company’s main goal is in 2009 and at Boston market area to effectively introduce and promote the Show Circuit dog food sale. The availability of this Show Circuit dog foods considered to be among the costliest would be through supermarkets. The quality of Show Circuit is finest and prepared as a full balanced dog food to be stored in refrigerators. It has for years, received positive recommendations from many professional owners of show-dogs. However, Show Circuit is publicly unknown by many and essentially considered as a new product despite such a vast history. An advantage that can be capitalized by the company is the fact that, at supermarkets’ frozen food section, only the Show Circuit dog food will be rightly available for customers. The successful marketing of Show Circuit requires the initial accomplishment of two important objectives. First, public awareness should be achieved in relation to the high-quality component of the Show Circuit dog food, the packaging designs and the dog food’s brand name. Secondly, at the supermarkets, dog owners should be directed towards the frozen food section when making dog food purchases. The environment under which the business for dog food is done seems not fully exploited. The tapping of the dog food industry is far from full potential yet because of the fact that prepared dog food is regularly fed to less than half the number of dogs owned in the United States.

Based on manufactures’ prices, a total of $ 10 billion from the sale of dog food will be made in 2009. The analysis of four trends helps justify that such optimism in dog food industry is indeed well founded. First, the increase in dog ownership has consequently created benefits at the dog food industry. The owned-dog population in the U.S is approximately about 65 million. This steady growth in numbers is expected to continue, as more people require protection and the increased desire for companionship from dog owners. Secondly, another positive trend has been the increased investment on human companions by pet owners. On many settings, owners consider and treat pets as family members in possession of human qualities. For instance, according to research, a dog owner usually identifies himself/herself with the pet as well as assigning human characteristics such as needs, feelings, language and thoughts. A big number of dog owners, about 75% not surprisingly offer their animal companions the feelings of Mom and Dad. In addition, about 95% of dog owners would hug their pet on daily basis. Therefore, not surprisingly that annual veterinarian fees, accessories, clothing, dog toys, dog medication and furniture spend by dog owners are more than $ 20 billion. Thirdly, a positive trend has been the growth in dog food industry such that there is now the production of dog foods classified as premium and super premium. Such dog foods are of higher quality and are therefore higher priced. The increased rate of dog ownership together with this type of dog foods has spurred the growth in sales made from dog foods. Fourthly, a growing trend involves dog owners increasingly making claims for the introduction of a new product in the dog food industry. Such new dog food product should be enriched in vitamins and minerals, all natural and with no preservatives or additives. The table (1) below represents claims for the introduction of new dog food product for the period 2006- 2007 and 2007- 2008.


Claim frequency (2006- 2007)

Claim frequency (2007- 2008)

% change

No additives/ No preservatives




Vitamin/ mineral enriched








The distribution channel to be chosen is that of supermarkets. The distribution of all dog food in Boston market and the rest of United States at manufactures’ prices through the supermarkets accounts for about 36%. Other channels may include independent pet stores, mass merchandisers, farm/feed stores, pet superstores and veterinarians. The Boston market environment seems to be the ideal area to launch a new dog food product. The population at Boston area is estimated to be 1.2% of total U.S population. Because of the strong correlation between human population and dog population, the dog population at Boston area is also about 1.2%. In addition, the national expenditure of the Boston population is approximately average to expenditures on pet products. The analysis of the situation affecting the First in Show Pet Foods, Inc executives must take into account critical aspect of competition. The United States dog food industry approximately has about 350 dog food types and 50 manufactures of dog food products. In the year 2008, five major companies made about 75% of sales of all the U.S dog food products. These companies were the Master foods USA, Hill’s Pet Nutrition, Del Monte Foods Inc, Nestle Purina Pet Care and the Iams Inc. Considerable percentage of the sales did accrue from supermarket dog food sales. This presents a huge concern for the Executives of First in Show Pet Foods, Inc since they intend to sell their new dog food product through the supermarket distribution channel. The marketing strategy for the introduction of Show Circuit in the dog food industry should indeed be well planned. The forms of advertising as well as the spending by competitors on advertising require major considerations.

3. SWOT analysis

3.1 Strengths

First In Show Pet Foods, Inc has been supplying Show Circuit exclusively in the U.S to the show-dog kennels hence the improvement of dog’s coats. Because of the product’s quality, the company is intends to supply this product in retail market to cater for normal dogs. Show Circuit is a dog food of high premium with ingredients of cereals and fresh meats and also being additives/ preservatives free. Such unique food components could remarkably improve the dog’s coats, making a normal dog beautiful and healthy. Professional dog owners have recommended and used this food product for years in addition to being proven as the dog food of finest quality. Dog owners who largely consider issues of beauty and health for their dogs will be definite customers of Show Circuit. This dog food product will be the first available in the U.S market of the type of organic dog food. The product will be frozen packaged hence the fresh and uncooked meat will not spoil. This presents an advantage for the company because after the introduction of the product into the market, the frozen section of the supermarkets will only have this dog food product.

3.2 Weaknesses

Show Circuit will be a new product name being introduced into the market. Further, the products’ premium quality makes its price quite high in comparison to other available dog food products. Because of this problem, the company has to create brand awareness in the market through aggressive communication in an attempt to compete with other brand names already known to dog owners. Besides that, the frozen packaging form presents difficulties to the company with regard to product placement and distribution. The supermarket is the only distributor available because of the freezing space although this space is prioritized for human food rather than frozen food.

3.3 Opportunities

The company has an opportunity in the U.S market to tap its vast potential as represented by the annual growth of sales (64%) of organic dog foods. The willingness of consumers who own dogs to pay premium prices for dog food products is expected to rise. About 65 million people in the U.S own dogs and the number is expected to increase as more desire to own animal companions. The Boston market area presents a good potential for this business with a population of 1.2% of total U.S population. Expenditures by Boston residents on pet products are approximately averages national expenditure. The Boston supermarkets have no other pet products of the type of complete frozen dog foods hence the chance that, Show Circuit will be the first dog food available in frozen-food section of the supermarkets.

3.4 Threats

Besides the benefits that the product offers, this company will face competition from other companies providing the market with dog foods. The company will struggle to outcompete established companies such as Nestle, Mars Inc, Delmonte Foods Inc. as well as Procter & Gamble. In addition, difficulties are expected to arise in convincing distributors (supermarkets) to provide in their stores freezer space. Majority of these supermarkets have limited freezer spaces where such frozen products are to be kept. The distributors will also have problems as it is a long process when making available the thawing time for frozen food. To deal with this, a 7% commission is to be offered based on the proposed price to retailers.

4. The problem/Decision statement

With the market situation analyzed in terms of the dog food industry’s environment, competition and opportunities, the executives should make decisions based on objectives, alternative strategies and the organizations’ strengths and weaknesses. The introduction of new dog food product into the market is faced with problems and challenges. A sound decision needs to be made if such business activity venture proves successful in the future. The executives of this company have to deal with problems such as, adequate market segmentation, specific market target, distribution channel, Show Circuit sale price, advertising models and most important the return on sales percentage. Such decisions in any business set up need a well-constituted problem-solving model that balances total variable costs with revenues. For First in Show Pet Foods Inc, the introduction of Show Circuit dog food at dog food industry requires well-calculated strategies. The supermarkets have already other brands of dog food products such as the treats, canned and dry. To achieve substantial brand shares at the supermarket channels, consumers have to be educated on the new Show Circuit with regard to brand, price, packaging and ingredients.

5. Presentation of alternatives

There exists a possibility that at supermarkets, the frozen dog food will be subjected to varied objections with regard to freezer space and thawing time requirements. An alternative to overcoming such anticipated objections would be suggestions for fast thawing, the longest time to keep the food in the refrigerators and the thawing time indicated on the packaging container. The use of microwaves should also be suggested as a possibility for consumers who purchase such frozen dog food from the supermarkets. The pricing aspect of this new dog food product is very important considering the general price sensitivity of dog owners. In addition, the dog owners are more concerned with the welfare and health of their pets. A premium price may be good for Show Circuit considering its quality and the retail prices of other frozen dog foods sold in supermarkets. There are opportunities that can be seized up with the introduction of Show Circuit in frozen dog food market. Boston supermarkets present a huge market potential with regard to the sale of frozen dog foods. In addition, there is a trend that organic dog foods are increasingly becoming popular in the dog food market with consumers willing to acquire such foods at premium prices. The company can capitalize on this opportunity in an attempt to acquire substantial market share. Another very crucial alternative is the opportunity to constitute the groundwork through which to rollout Show Circuit dog food into the national market.

6. Analysis of Action Plan

The introduction of this new dog food product requires implementation of very creative strategies. Show Circuit will be positioned in the market as the truly dog food available at reasonable price. The advertising strategies will target both married and unmarried consumers occupying the age bracket of 21 to 54 years. Such target market group should also have a household income of higher than $ 25,000. The reason as to why such target market is selected is the trend that, married couples and single adults with or without roommate households or children treat their dogs as family companions. The advertising strategies through various campaigns will adequately justify the Show Circuit dog food as a unique product. The advertising campaigns will incorporate a variety of concepts in an attempt to create customers’ attention on the dog food identification. The packaging container will have an introductory coupon displayed prominently to emphasize on the quality the Show Circuit dog food has. Sections such as the television, sports, society and dining will carry out ads considered for special interests. Based on the unique qualities the product posses, they warrant media placement that is varied and intense. In covering a wider audience, the advertising campaigns will cover locations beyond the Boston market geographical area. The sales packets are designed to provide information in the most persuasive manner. Such information include, the acceptance of the dog food by chain stores, the manufacturer’s retail price, quantity discount schedule, market potential, promotional schedule, user endorsements and order information.

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In advertising, different types of media will use different creative strategies. For instance, the positioning of the product relative to its competitors is through the print media. The product is compared with other categories of dog food such as the dry and canned products. On the other hand, television adverts will emphasize on the product’s location in the supermarket hence minimizing problems when looking out for the product. It is evident that dog food industry receives heavy advertising and therefore the company must follow suit. In order to remain competitive in this industry, the First in Show Inc should carry out intensive advertising. The developed media advertising strategies aim to achieve the following objectives:

Awareness creation of the new brand

Attainment of distribution through supermarket channels

Coupon redemption to motivate trial

Motivation of trial by the emotional impacts created by the television

7. Recommendation

The introduction of Show Circuit as a new dog food product is quite viable for this company considering the environment, nature of competition and the potential opportunities available. By employing, the strategies proposed in line with the organizations objectives, this new business venture would be a success. The organizations’ strengths that outweigh the weaknesses place it well to compete with other companies in exploiting the vast potential at Boston market and beyond. With the dog ownership industry expected to expand so does the expected return in sales of dog foods. The launch of the business activity in Boston market will involve incremental costs of about $ 30,000. The program budget inclusive of advertising expenses and slotting fee will range between $ 500,000 and $ 700,000 as shown in the table (2) below.


Budget Levels

Budget Levels







Collateral (sales pack)






Agency fees






The expenditure is reasonable since countrywide media promotion for established brands cost $ 7 million to $8 million. A high initial expenditure for a new product is essential and the company will use savings to cater for the expenses.


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