preview

Zenith Pet Food

Decent Essays

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

Get Access