How Does Vitakraft Face the Challenges on the Pet Market?

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  • Published : December 6, 2012
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Utilisateur Windows|
VITAKRAFT|
How does Vitakraft face the current challenges of the pet care market?| |
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SUMMARY

I. Company overview………………………………………………………………………………..3 1. History…………………………………………………………………………………………………………………….....3 2. Brand strategy…………………………………………………………………………………………………………….3 3. Production………………………………………………………………………………………………………………....4 4. Distribution…………………………………………………………………………………………………………………4 5. Market Positioning……………………………………………………………………………………………………..4

II. SWOT Analysis…………………………………………………………………………………….6 1. Strength………………………………………………………………………………………………………………………6 2. Weakness…………………………………………………………………………………………………………….…….6 3. Opportunities……………………………………………………………………………………………………….…….7 4. Threat………………………………………………………………………………………………………………………...8

III. Industry Overview……………………………………………………………………….…….9

IV. Expansion in Venezuela……………………………………………………………………..13 1. Economic Context…………………………………………………………………………………………….………13 2. Social context……………………………………………………………………………………………………..…….15

V. Conclusion………………………………………………………………………………………...17

VI. Sources…………………………………………………………………………………………...18

Company Overview

History
Vitakraft was found in 1837 by Heinrich Wührmann in Germany. Started as a small business family, Vitakraft grew into a market leader throughout Europe and has now open subsidiaries in almost 20 countries in Europe, Asia and the US. It has 2500 employees.

Vitakraft produces high quality products and uses the latest scientific knowledge in its production. It has a wide range of more than 2000 products with more than 200 new products developed each year. Vitakraft provides products for all kind of pets but the company’s general focus remains on small mammal/reptile food, fish food and bird food.In 2008, Vitakraft merged with a US company Sunseed Co. which shared a similar philosophy and same rural roots. They both focus on quality and believe that they can help ensure that every type of pet gets the proper care and alimentation.

Its leitmotiv: “All companion animals should be fed a diet that is scientifically formulated for their specific nutritional needs.”
Brand Strategy
Vitakraft has developed a three-step-system:
* “Safety for the pet”, creating best quality products * “Safety for the pet owner”, in order to satisfy the buyer * “Safety for the trading partners”, in order to help the distributors to achieve economic success through sales of Vitakraft products. Production

Two mains production facilities:
* Bremen, in Germany, rebuilt in 2001, which provides products for western European countries * Bowling Green, Ohio in the United States which is the new Vitakraft Sun Seed production facility since the merger in 2008.

Moreover, In 2009 Vitakraft Sun Seed underwent a major expansion to meet the growing demand for its products, adding 24,000 sq. ft. of warehouse space bringing its total facility to 120,000 sq. ft.

Distribution
Vitakraft distributes the majority of its products under its own Vitakraft umbrella name which allows strong brand recognition. The company only sales a few product under sub-brands such as Vitakraft Vitaverde or Vitakraft Kracker.

The brand can also count on its retailers’ cooperation in order to respond quickly to consumer change in demand. All its pet food and pet products are usually available through all pet care retail distribution channels, with the exception of veterinary clinics.

Market positioning
Vitakraft is the 7th biggest pet care company in the world regarding value. In 2010, Vitakraft computed 1bn$ in sales.
The three biggest markets for Vitakraft in 2010 were:
* Germany: 34,8% of Vitakraft global value sales. With a retail value share of 7,2%, Vitakraft ranks 5th among the Pet care players in Germany. However, it ranks 1st regarding Bird food and small mammal/reptile food with respectively 52,3% and 19,9% of value share....
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