Organic Pet Food Marketing Plan

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Organic Pet Food Marketing Plan

September 14, 2007

NAICS Industry Code: Dog and Cat Manufacturing 311111

Abstract:

This marketing plan provides a plan for entering the organic pet food product as an existing producer of non-organic pet foods based current market conditions and trends following several high profile food safety recalls and alerts, particularly the Melamine-related deaths from pet food imported from China. The pet food industry has experienced enormous growth as part of the overall $41 billion annual pet products and services industry, and promises to move in the directions of increased natural, organic, and health oriented products as consumers increase organic consumption and become aware of safety issues in traditional food supplies. Our analysis will look at the desired strategic positioning for traditional pet foods, organic pet foods, and the target demographic based on our research. The market analysis and competitor research reveals a market segment currently occupying less than 1% of pet food sales, but with tremendous growth potential. The traditional pet food market is mature with 6 major competitors with 86% of market share, but a much more competitive organic market.

Table of Contents

1.0Executive Summary3

2. Marketing Plan4
2.1Business Mission
2.1.1Financial Objectives4

2.1.2Marketing Objectives4

2.2Market Conditions
2.2.1 Customer Demands/Needs4

2.2.2Industry Forecast6

2.2.3Competitor Analysis7

2.2.4Competitive Advantage8

2.3Marketing Strategy9
2.3.1Positioning9

2.3.2Target Market9

2.3.3Environmental Variables9

2.4Marketing Mix
2.4.1Product Strategy10

2.4.2Pricing Strategy12

2.4.3Promotion Strategy14

2.4.4 Distribution Strategy15

2.5Timeline (Product Life Cycle)16

2.6Primary Strategy17

6. Financial18
1. Sales Forecast
2. Expense Forecast

7. Contingency Planning19

1. Executive Summary
The pet food market in the United States is an enormous market in which pet owners often care for pets as if they were their own children. Such intimate attachments and affection for pets drives an industry that has grown consistently to over $16 billion per year in the $41 billion pet products and services market. Just as the demand for organic and natural products has grown as consumers become more interested in healthy eating and lifestyles, organic and natural pet foods have grown steadily but remain an industry segment that has not yet fully matured, occupying less than 1% of the pet food market. In part, we believe this is because consumers have shown some price sensitivity to pet food costs and have not valued the importance of organic and natural foods for their pets.

Recent highly publicized deaths of pets because of questionable product ingredients have created a marketing opportunity for our organic pet foods to increase market share through a carefully crafted marketing campaign. Since these events in March 2007, organic pet food sales have increased by 20 – 30%. In a market research poll, 1 in 4 respondents said they would try organic pet food if it was priced similarly to other high end pet foods. Consequently, our product will be priced within or just below these substitutes pricing. Consumers are becoming much more savvy and educated concerning healthy food choices, and our new organic product line will focus on our product quality, safety, and health benefits in ways similar to how these characteristics are marketed to parents. Unlike marketing to parents with young children,...
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