Zenith Pet Food
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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 dogs 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. The fact that Show Circuit will be directly located next to the “people food” gives it another edge on the other foods available to dogs on the market right now.
In terms of the market and other competitive features, Show Circuit and Zenith have their work cut out for them. There is great potential to grow in this field, most pet owners want what is good for their pets, and this includes pet food that is healthy for their dog. The ability to capitalize on growth is strong, with 64% sales growth last year, while only .9% of total sales exist in the current market, Boston. There are about 50 dog food manufacturers and 350 dog food brands. Purina, Iams, Hills Pet Nutrition, MasterFoods USA, and Del Monte Foods, Inc account for 75% of U.S. dog food sales in 2004. These are established pet food suppliers and already hold a majority of the market share available. Zenith is counting on the fact that their quality reputation in the show dog circuit and focusing on the benefits of buying dog food from the frozen food section will be able to differentiate the product in the minds of the consumer. It is clearly separated from other competitive products, so there is the capability of Zenith capitalizing on an untapped niche. These other suppliers are successful in the sale of dog food. They have each found a unique attribute in which to market to the consumer, so this could be a potential problem for Zenith and Show Circuit. The competitors also have sufficient experience in the dog food industry.
The current market and competition is not the only concern for Zenith. The market they are planning to target and the product attributes are important for this decision. Zenith will primarily be targeting a growing market, with 64 percent growth in the past; this is a large segment, with 65 million dogs owned. The pet food is frozen and then prepared for the dog for consumption; it is comprised of 85 percent beef by-products and highest quality of cereal accounts for the remaining 15 percent. The pet food will be in a tub, which is different than many other dog foods on the market, but will only be offered in the frozen food section of the grocery store. It will primarily be targeted towards will be singles and marrieds between the ages of 21 and 54 with a household income greater than $25,000.
In addition to market and product conditions, the promotion is important for the success of the product. In terms of promotion for this product, it will be integral to market this the correct way. It will be costly for the organization and needs to create not only awareness but interest in the product. As far as the media plan for Zenith, the general strategy focuses on collateral advertising, newspapers and magazines, and a focus on television advertising in particular. The promotion spending can either be $400,000 or $600,000 for the product. Competitors