Breeders Own
p[pic 1][pic 2][pic 3][pic 4]Case AssignmentMKT 435 – Marketing Strategy SeminarDr. BrunswickISSUEBreeder’s Own Pet Food, Inc. has been a major producer of dog food for show-dog kennels in the United States. The executives for Breeder’s Own are reviewing an introductory program for the company’s entry into the retail branded dog food market in Boston, Massachusetts. The company has become aware that there may be a niche in the market for their formula with no additives or preservatives due to changing attitudes and perceptions within the dog food industry. The decision at hand is to launch or not to launch Breeder’s Mix and also whether to use a $500,000 or $700,000 marketing/advertising budget in doing so.BACKGROUNDSales of dog food will total about $14 billion in 2011 at manufacturer’s prices. Still, fewer than half of US dogs are regularly fed prepared dog food. This shows that there may be untapped potential within the dog food industry for Breeder’s Own with regards to the prepared/frozen dog food segment. The dog food industry share was broken down by category: dry (60%), canned (20%), and treats (20%). Frozen or prepared dog food did not even make the cut to be on the list. Reaching into the frozen dog food market is not without risk or costs, but if Breeder’s Mix enters into the market at the right time with the right budget they could steal a large chunk of the market share of dog food sales.
SWOT ANALYSISSTRENGTHSLocation of product – next to “people food”Premium qualityRecommended and used by professional show-dog ownersHistory of blue-ribbon winnersWEAKNESSESLimited distribution resourcesThawing time and freezer spaceIllness associated with this type of dog foodCosts are high to produceLow margin for retailersLack of customer appeal for frozen dog foodOPPORTUNITESIncreased dog ownership in United StatesFrozen dog food market has a lot of potentialGrowing popularity in organic and all natural dog foodsGrowth in premium dog food salesPets viewed as members of the familyPioneer in Boston marketSuccessful launch in Boston lays a strong foundation for a national launchConsumer concern about health and welfare of animal companionsTHREATSNot able to convince retailers to provide freezer space/stock their productDog owners being price and value sensitiveHeavy advertising in regards to competitors5 biggest dog food producers own 75% of market shareLow brand awarenessWhat is a good estimate of the size (in $ dollars) of the market (using the supermarket channel only) for frozen dog food in the United States, and in the Boston market area. Develop a table or spreadsheet which lists the annual dollar sales and market share components (using the supermarket channel only) for each of the existing categories of dog foods (dry, canned, dog treats) both nationally (throughout the entire U.S.) and in the Boston market area only.[pic 5][pic 6]In 2011, frozen or refrigerated dog food accounted for about 1 percent of U.S. dog food dollar volume. What I did to figure out the Frozen Dog Food sales of the United States in supermarkets is take 36 percent of the 14 billion dollars of sales in the United States. The 36 percent of 14 billion accounted 59% of dry dog food, 20% of canned dog food, 20% of treats, and for 1 percent of frozen dog food sales in supermarkets. To find the sales of frozen dog food in Boston, MA I just took 1.2% of the sales in the United States.