Strategic Issues & Problems:
First in Show Pet Foods, Inc. is a popular, well known producer of dog food for show-dog kennels in the United States (Kerin & Peterson, 2010). This is an understood and established A tier market segment product in the ever popular consumable product segment. The strategic issue on the table for First in Show Pet Foods is marketing a new, premium dog food option called Show Circuit. Show Circuit will be packaged in 15-ounce plastic tubes, with 12 tubs per case (Kerin & Peterson, 2010). This brings up the very viable option during the introduction to the marketplace, offering distribution discounts on bulk buying through case quantity discounts. This allows for high turnover of the product and more people to be on the shelves and in warehouses throughout the United States pet food marketplace, specifically Boston for this promotional, trial release on Show Circuit. First in Show Pet Foods is using only the finest ingredients with no artificial flavors with fresh meat constituting 85% of the products volume, a leader in this volumes per 15-ounce plastic tub, and the remaining 15% is high quality cereal (Kerin & Peterson, 2010). The largest strategic issue, which could also be a problem, that differentiates Show Circuit from its competition is that it is stored in freezers to prevent spoilage and keep it as fresh as it can be. This makes it comparable to people food and the high quality consumers appreciated and want in today’s marketplace.
This freezer storage is untraditional to any of the dog foods on the market today. Most large grocery chains or specific pet supply sources have the proper freezer storage for this product. This allows the brand Show Circuit to capitalize on that space in this specific retail sector, focusing on the key groups of consumers that are purchasing frozen food.
One of the biggest issues I see facing the brand Show Circuit of First in Show Pet Foods, Inc. is marketing one of the highest priced product to a new target audience, the common animal lover and owner. Show Circuit is a very high quality product but does not have national brand recognition. It is an A tier product, with no B or C tier product to compliment it in price, quality, and brand history. Therefore, the cost to promote your product and shelf space in popular consumer retail chains becomes more costly. Insights for First in Show Pet Foods:
Situational analysis of this case can be stated in a few concerning and appropriate bullet points. Taking these factors into consideration when deciding to launch Show Curcuit into the retail distribution channel in a must: * New Product – more costly, higher quality position in the marketplace. * New Target Market – more than just show dogs & that consumer segment. Show Pet Foods wants to be a premium option for every type of pet owner. * First in Show pet food will be placed in the freezer sections of stores. This will differentiate it from the traditional dry, canned, and teat aisle or section. * Total variable cost for the product will be $7.47 per case sold and distributed in 15-ounce plastic tub, with 12 tubs per case (Kerin & Peterson, 2010). * National brands of dog foods – including Nestlé’s brands, Masterfood, Iams, and Del Monte make up over 80% of the major dog food categories – Dry (32% Private Label/Other Brands), Canned (12% Private Label/Other Brands), and Treats (27% in Private Label/Other Brands) (Kerin & Peterson, 2010). * Sales of dog food will total about $10 million in 2009 at manufacturer’s prices. Distribution channels will be changing in the future – more internet buying for sales, no taxes, and shipping convenience. Internet is currently on 6% of the distribution channel business compared to 36% in supermarkets and 25% in mass merchants * Largest promotional expenditures will be spent on TV. What shows & when is your target audience watching TV. *...