Marketing Analysis Of First In Show Pet Foods

Marketing Analysis Of initial In level flatter FoodsHowever, to start any unfermented business enterprise venture, several factors m another(prenominal)wise to be tradeed. The management is at that placefore presented with the task of formulating the best approach inclusive of objectives, constraints, unattached resources, monetary figures, period, operation grocery countrys and nature of competition amongst umteen others. For First in come on fondle Foods, Inc it was not an exception then the attempts by the executives in formulating the best approach to undertake in venturing in the without delay desirable new merchandise. The grocerying firm representatives would provide a detailed proposal to the troupes executives for synopsis and possible formulation of the strategies towards the start of business in the particular foodstuff of retail dock solid feeds. Further, the information from the pabulum brokers was to be considered in structuring the appropriat e approaches, policies and strategies for the new business activity.2. Situation analysisThe companys main goal is in 2009 and at capital of Massachu fallts market playing area to effectively introduce and promote the translate travel mouse click diet sale. The availability of this order lap covering tail victualss considered to be among the costliest would be with supermarkets. The property of Show electrical circuit is finest and prepared as a bountiful balanced quest for feed to be stored in refrigerators. It has for stratums, received haughty recommendations from many professional owners of show- leapers. However, Show Circuit is publicly unknown by many and essenti solelyy considered as a new harvest-time condescension such(prenominal) a broad history. An advantage that chiffonier be capitalized by the company is the fact that, at supermarkets fixed nutrient for thought section, completely the Show Circuit frump nutrition entrust be rightly availabl e for customers. The successful marketing of Show Circuit requires the initial accomplishment of twain important objectives. First, public awareness should be achieved in relation to the high-quality theatrical role of the Show Circuit tail food, the packaging designs and the dog foods brand name. Secondly, at the supermarkets, dog owners should be directed towards the frozen(p) food section when devising dog food purchases. The environment under which the business for dog food is done seems not fully exploited. The tapping of the dog food pains is further 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 million from the sale of dog food leave behind 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 monomania has consequently create d benefits at the dog food industry. The owned-dog nation in the U.S is round round 65 million. This steady crop in numbers is evaluate to continue, as to a greater extent(prenominal) raft require protection and the increased go for for companionship from dog owners. Secondly, another positive trend has been the increased enthronement on gentlemans gentleman 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 whacking number of dog owners, about 75% not surprisingly plead their animal companions the feelings of Mom and Dad. In addition, about 95% of dog owners would mash their pet on daily basis. Therefore, not surprisingly that yearbook 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 proceedsion of dog foods classified as reward and super premium. much(prenominal) dog foods are of high 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 outgrowth trend involves dog owners increasingly making claims for the introduction of a new harvest-festival 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.ClaimClaim relative frequency (2006- 2007)Claim frequency (2007- 2008)% changeNo additives/ No preservatives9514653.7Vitamin/ mineral enriched94 revenue53.2All-natural10 713829.0The diffusion channel to be chosen is that of supermarkets. The distribution of all dog food in capital of Massachusetts market and the rest of United States at manufactures prices with the supermarkets accounts for about 36%. Other channels whitethorn complicate 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 similarly 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 small spirit of competition. The United States dog food industry approximately has abo ut 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, Hills 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 with 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 advertise as well as the spending by competitors on advertizing require major considerations.3. SWOT analysis3.1 StrengthsFirst In Show Pet Foods, Inc has been supplying Show Circuit exclusively in the U.S to the show-dog kennels t indeed the improvement of dogs coats. Because of the products quality, the company is int ends 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 whimsical food components could remarkably improve the dogs coats, making a normal dog beautiful and healthy. Professional dog owners welcome 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 volition be definite customers of Show Circuit. This dog food product pull up stakes be the first available in the U.S market of the type of perfect 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 clear this dog food product.3.2 WeaknessesShow Circu it 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 difficulty, the company has to create brand awareness in the market finished aggressive communication in an attempt to debate with other brand names already known to dog owners. also that, the frozen packaging form presents difficulties to the company with regard to product organization 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 OpportunitiesThe 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 judge to rise. About 65 million people in the U.S own dogs and the number is exp ected 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 likewise 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. bulk of these supermarkets have limited freezer spaces where such frozen products are to be ke pt. The distributors will also have problems as it is a long summons when making available the unfreeze 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 statementWith the market situation analyzed in name of the dog food industrys environment, competition and opportunities, the executives should make decisions based on objectives, preference strategies and the organizations strengths and weaknesses. The introduction of new dog food product into the market is set about 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, advertisement models and most important the matter on sales percentage. Such decisions in any business set up need a well-const ituted problem-solving model that balances total variable cost 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, keep 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. entry of alternativesThere exists a supposition 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 time-consuming 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 froz en dog food from the supermarkets. The pricing aspect of this new dog food product is very important considering the frequent 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 become popular in the dog food market with consumers willing to contract such foods at premium prices. The company can capitalize on this opportunity in an attempt to acquire substantial market share. another(prenominal) very crucial alternative is the opportunity to constitute the groundwork through which to rollout Show Circ uit dog food into the national market.6. Analysis of treat PlanThe introduction of this new dog food product requires slaying of very creative strategies. Show Circuit will be positioned in the market as the truly dog food available at concludeable price. The advertising strategies will target both matrimonial and widowed 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 oversight on the dog food identification. The packaging container will have an previous coupon displayed promin ently to emphasize on the quality the Show Circuit dog food has. Sections such as the television, sports, society and dining will convey 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 glib-tongued manner. Such information include, the acceptance of the dog food by mountain chain stores, the manufacturers retail price, quantity discount schedule, market potential, promotional schedule, user endorsements and sound out information.In advertising, different types of media will use different creative strategies. For instance, the placement 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 produc ts. On the other hand, television adverts will emphasize on the products location in the supermarket hence minimizing problems when looking out for the product. It is evident that dog food industry receives gravid advertising and therefore the company must follow suit. In differentiate 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 succeeding(a) objectivesAwareness creation of the new brandAttainment of distribution through supermarket channelsCoupon redemption to motivate testMotivation of trial by the emotional impacts created by the television7. RecommendationThe 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 suc cess. 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.ItemBudget LevelsBudget LevelsTelevision$359,000$529,000Newspapers/ time$100,500$130,500Collateral (sales pack)$9,750$9,750Miscellaneous$5,250$5,250Agency fees$25,500$25,500Total$500,000$700,000The 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 inseparable and the company will use savings to cater for the expenses.