Zenith Pet Foods, Inc. In reviewing the Zenith Pet Foods case, there are several facts that need to be assessed before offering a definitive answer on whether their potential program for marketing Show Circuit dog food will be successful. Zenith Pet Foods, Inc. is a major distributor of dog food for show kennels throughout the United States. The product that Zenith is offering is called Show Circuit, which is a highly nutritious and quality ingredient dog food. The product of Show Circuit, frozen pet food designed to enhance the appearance of the dog 's coat as well as providing a balanced meal, is planned to be placed in the frozen foods section of a supermarket. This is what Zenith is counting on to build a competitive advantage. …show more content…
By computing the various variable costs as well as the margins, the retail price would be $6.82 to wholesalers and $8.32 to retailers. It will cost $6.37 for variable costs and Zenith is expecting a $30,000 incremental cost for slotting in advertising. Compared to others in the industry the price will need to be around the average. It will technically be $8.32 per tub, which contains around 11 lbs of food. Zenith would need to sell at least 220,512 units if the advertising cost is $400,000 and 323,076 units if the advertising cost is $600,000. After careful review of each of the elements in launching this product, the following analysis can be determined. Zenith has to answer a specific series of questions in order to decide if their product of Show Circuit dog food will be a viable product. The market was in fact correctly segmented, although Zenith needs to see the shopping behavior of those willing to spend more on pet food. Marketing in a supermarket could inhibit the potential growth of the product. Because the market is already segmented and offered such a variety of dog foods, Zenith will have to market the product correctly and focus in on the benefits to be successful. Show Circuit needs to seek a position of a higher quality product in a different, more convenient location. It is important to play up how the location is a benefit rather than a detriment. This goes along with the sales program being successful. Show
Ann Hodgman, a freelance writer and former food critic, decides to write a review of various types of dog foods in her piece, “No Wonder They Call Me a Bitch.” The research aims to answer the questions that always puzzled her as a child. Questions about the ingredients in the dog foods and whether it taste like human food. The writer spends a week eating dog food to answer these questions. Her results, however, reveals a disappointing truth that dog food is not as glamorous as she once thought, instead it lacks the quality, health and taste it advertises.
The product will be sold at the store in Little Rock, Arkansas, focusing on the zip code 72212. Considering the small size of my city, the geographic segment will focus on those individuals that live in the suburban neighborhoods in the area. Most of the people in this area are millionaires in their mid-50s without children so they treat their pets like they would their children because they consider them an extension of their family. Since these individuals love their pets much like they would their family members they will spend a great deal of money on them to ensure they have the proper care and treatment. This will hold especially true when it comes to their pet food. From my personal experiences, wealthy individuals have a tendency to purchase the most expensive items on the shelves for the simple fact they think it is better than all the rest. Needless to say, they will not have an issue paying expensive prices for an all-natural pet
The Smackey Dog Food, Inc. is a family owned business. It was started by three sisters, Sarah, Kim and Jillian, in the kitchen of their home. They lived in a suburban area of Chicago, Illinois. Their business is making all natural dog food. After using their own dogs and the neighbor’s dogs as test subjects, it was discovered by local vets, pet stores and grocery stores. These local places began to distribute the dog food. The demand for their food began to increase and they moved their business to a larger facility and hired additional workers. As compared to competitors, Smackey Dog Food, Inc., began to rise
The hot dogs that we are trying to improve sales for are: _Hygrade_, _Maple Leaf Originals_, _Top Dogs_ and _Shopsy's_. This option involves reformulating _Top Dogs_ to make it taste better and provide value for the consumers, without trying to make it a national brand. MLF will increase market research in order to gain vital information to help properly position this brand in each of the different regions. MLF can borrow money from other, more profitable IOCs
As this was Keller’s first audit on a dog Foods company, additional research was conducted to gain insight on some the most common risks that occur in the dog Foods industry. The audit team also went to visit the client prior to the audit to gain a clear understanding on how their business works. The audit team consisted of the audit manager Pete, and two audit staffers Maureen and Ben.
SNHU Pet Supply has designed a SWOT analysis to aid them in the best direction of marketing strategies for Pet’s Choice. To take advantages of all the opportunites available, SNHU Pet Supply can refer to this analysis in order to use their strengths for the best of the company and find the best opportunities in the market. The company could use this information from the SWOT analysis on Pet’s Choice products to develop marketing strategies and activities. The company can play on its strengths in order to promote this product so that it is beneficial for the company and the consumers. We will design the product to show the strengths the company has to offer, such as making the packaging stick out and resemble what we stand for. These multi-flavored
Management has decided that the suggested retail price for the 8-ounce can to the consumer will be $1.00. The only unit variable costs for the product are $0.36 for materials and $0.12 for labor. The
Representatives have approached breeder’s Own Pet Foods, Inc. from Marketing Momentum Unlimited, a marketing and advertising consulting firm. The reason for the meeting was to discuss the company’s possible entry into the retail branded dog food market in the Boston market.
Breeder’s Own Pet Foods, Inc. proposes to adopt a market penetration strategy due to having identified a growth opportunity in the dog food market, for its nutritionally balanced, high quality dog food brand, Breeder’s Mix. This premium product has been sold traditionally, to the show dog kennel market, but company executives are now convinced it can be repackaged and offered as a frozen premium product, to picky pet owners via general retail distribution channels. Since the product is considered premium, it should fetch premium prices because of its ingredients and its claimed benefits to
The over-arching problem that Breeder’s Own Pet Foods has is which marketing-strategy would best serve as a vehicle for entry into the dog food retail business. Additionally, it has to select the most prominent geographic location (s) for distribution of its product. Another root problem component is how to get the supermarkets to stock and distribute this dog food since it is in the frozen category and may not appeal to traditional dog food buyers because they don’t readily associate dog food with frozen goods.
1. What is the total and category dog food supermarket sales potential in Boston at manufacturing prices?
Caninantics’s mission is to be the leader in introducing innovative, dog food dispensing product to the market. Through close customer contact and excellent relationships, Caninantics, will meet the needs of the customers. Caninantics, LLC, is a privately-held corporation and maintains an office and a small warehouse in a mixed-use area of North Beach. Three of the four investors in the company have full operational responsibility, the co-founders, have both entrepreneurial and industry experience to brings operational management, marketing, and financial skills
|Weaknesses: • Lack of availability in all stores • Lack of appeal to consumers due to thawing time / freezer space (convenience) • Lack of appeal to supermarkets due freezer location • Lack of brand equity in retail market • Premium price | Threats: • Store Location - Consumer must be educated to find product in different area of store • Saturated market – sales top 14 million in 2011. Dog food is also heavily advertised, so the challenge is to entice the consumer to buy Breeder’s Mix. • Competition - 5 major brand name dog food companies dominate market with 75% of US dog food sales • Challenge to get supermarkets to give up valuable freezer space for dog food |Evaluation of AlternativesBreeder’s Own Pet Foods product development strategy should be evaluated. Currently only 1 out of 10 dog owners regularly buy frozen or refrigerated dog food and ¾ of those surveyed expressed no interest in purchasing frozen dog food (Kerin and Peterson, 2013). This indicates that there is a limited market for dog owners who would be interested in a product such as Breeder’s Mix. Research does suggest however that frozen dog food dollar volume is increasing annually indicating there is a strong opportunity for Breeder’s Own to be the first to tap into the frozen dog food market in the Boston area. Breeder’s Own Dog Foods needs a strong marketing campaign to convince consumers their brand is superior to
Conventional marketing has appealed to consumers based on the idea that the pet food is enjoyed by the animal. Our product marketing will instead appeal to the parental instinct in pet owners, emphasizing health characteristics such as omega-3, senior pet health supplements, and calcium enrichment. Our preliminary research leads us to believe that consumers feel lost in determining which foods are safe, and which are potentially dangerous for their pets. Our campaign will attempt to create a memorable campaign to classify the relative health and safety qualities of a particular product in a simple way.
As a start-up company, Caninantics will largely benefit from conducting marketing research that will support its marketing strategy. The pet food industry has experienced tremendous growth and profitability in the recent past because of Americans constant love for animals and dogs. It is a competitive market that is characterized by numerous attempts by brands to differentiate themselves from other competitors. For individuals who own cats and dogs, the industry or market generates a staple product. Dog owners tend to prefer cheaper dry pet food because wet pet food is relatively expensive.