First in Show Pet Foods, Inc. SWOT Analysis
First in Show Pet Foods, Inc.
In January of 2009, First in Show Pet Foods, Inc. executive decided to meet with representatives of Marketing Momentum Unlimited, a marketing and advertising consulting firm. The purpose of this meeting was to introduce a program for First in Show’s entry into the retail brand of dog food in the Boston, Massachusetts, metropolitan area (Kerin & Peterson, 2009).
First in Show Pet Foods, Inc. is a large producer of dog food for show-dog kennels in the United Sates. The company has become a supplier of a unique dog food for show dogs called Show Circuit. Show a mink rancher who was trying to improve the coats of his minks originally formulated Circuit. Several years of research he perfected the formula and began feeding it to his stock on a regular basis (Kerin & Peterson, 2009). After a short period of time the rancher noticed that the minks coats had showed remarkable improvement and a nearby kennel owner noticed the improvement as well and asked to use some of his food to feed his dogs which lead to the dogs coats also improving dramatically over time (Kerin & Peterson, 2009).
The cost for the type of advertisement that First in Show Pet Foods, Inc. has a set budget between $500,000 and $700,000. This will help Show Circuit to be among the highest quality of dog food in the market today, but is also the costliest to prepare. Because Show Circuit is a new product and is entering the marketing mix, this will help Marketing Momentum Unlimited with the ability to determine the target market, which will include communication, price strategy, product and communication.
Since Show Circuit will be entering a dog food market where currently, half of US dogs are fed prepared dog food, First In Show Pet Foods, Inc. believe that dog food sales will rise as owners will want to treat their beloved pet with the freshest and best possible dog food that money can buy. Currently, supermarkets represent 36% of canned, dry and dog food treat sales and also offers the convenience of having three of the top brands offered in one section.
The target market was selected as those who are single or married and who are between the ages of 21 and 54 who have an income that is greater than $25,00 per year. It’s been shown that customers typically tend to treat their pets as family and would like to feed them the freshest and best thing for their pets as they would want to feed their own children. The media piece will focus on magazine advertisements, newspapers, and a large amount of the budget had been set aside for TV advertisement as well (Kerin & Peterson, 2009). Problem
One of the problems that First in Show will have to face is introducing the Show Circuit to a new market that will be accepting of dog food that is currently in frozen form. Since Show Circuit will be distributed through supermarkets that comprise of 36% for all dog food sales, however by going through other companies that has a larger distribution like Wal-Mart who are 25% of the market share for dog food sales, while pet stores such as Pet Supplies Plus, PetSmart and Petco make up 20% of dog food sales and for veterinarians offices of 6%.
The current channel strategy that First in Show is television ads that are set to be advertised on TV during the Late Show with David Letterman clearly do not state where Show Circuit can be located at within the supermarkets, that it is a frozen dog food which is available in 15-ounce plastic tubes. The reasoning behind the television is because research has shown that consumers tend to be online more than watching TV. Problem Defined
Right now, First in Show Pet Foods, Inc. is going to be entering a market with a brand new product that will be frozen, which consumers have not seen before and will be offered typically in the human food section at a supermarket. As stated before, supermarkets only have 36% of all...
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