FIRST IN PET FOODS, INC.
SHOW CIRCUIT FROZEN DOG FOOD
How would you describe the household dog food market?
Dog food sales in US;
Sales of dog food will total about $10 billion in 2009
Percentage of households that buy prepared dog food;
Less than half of the 65 million U.S dog owners
Dog food distribution channels; sales per distribution channel i.
Supermarkets dispense 36% which represents $3.6 billion
The other 64% go to mass merchandisers
Farm/feed stores 7%
Internet and independent pet stores 6%
Number of manufacturers and brands; top sellers market share; major brands; i.
There are about 50 manufacturers and 350 different brands ii.
The top 5 companies account for 75% of the sales: They are 1.
Nestle Purina PetCare
Hill’s pet nutrition
Del Monte Foods
Categories of dog food in the household dog food industry; i.
3 categories Dry, Canned, and Treats
Price range for each category
Dry goes from $8-$12
Canned goes for .50-$1.50
Treats go from $3-$6
Advertising spending per brand/manufacturer
Most major established brands are spending between $7-$8 million annually ii.
Beneful spent $34 million to introduce its new premium dry food which was a huge success iii.
Alpo spent $10 million on a brand extension Alpo Lite
2. How might one segment the dog food household market and where does Show Circuit fit? a.
list all segments you might consider segmenting this market a.
At householdes of both single and married people between the ages of 21-54 with a household income exceeding $25,000 i.
These people look at their dogs as a part of the family and are willing to spend more on products for the pet b.
examine major dog food categories and how Show Circuit “fits” a.
In all 3 major categories of dog food the premium brands hold upwards of at least 70% of the sales in each market. Now more...
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