Tyler Pet Foods Case Review

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- 3 issues:
Market feasibility
Financial feasibility
Distribution feasibility

- Who are the segments? Big enough? Profitable enough?
- Do we have a benefit that will reach out to that segment? (which benefit more resonant to the segment?) Can we hold up against competition?

- there will not be new dog food consumers only people switching from other categories… At the expense of the incumbents Takeaway:
We are talking about a product that hasn’t been positioned yet… any product can be positioned in any way that you want Ex. Johnson and Johnson from a dandruff shampoo to a different type of shampoo We are not creating new users

To have market success we must reach out to those buying different brands of dog food or those with dogs who are not buying dog food at all To decide which segments to target:
Size of segment
Needs of segment can we better satisfy them?
Summary:
No well defined target market
Defined segments are there however
No positioning at this point
What image should we project?
Issues in choosing
Is the market big enough with enough financial feasibility
There must be congruence between the product, market, distribution target market must have a need for the product 1st: Eliminate those segments that will not be profitable
Current Market Size of Dog Food: $3.47 Billion
Boston Market Size: 3.47 b x 1.5% = $52.05 m
Assuming that per capita dog ownership rate in Boston is consistent with that of the entire US Distribution:
Supermarket share: 84%
Specialty store share: 16%
The supermarket consumer is different that then specialty store consumer so the product must be positioned differently to each consumer Total Boston supermarket share:
.84 x $52.05 m = $43.722 m
Total Boston specialty store share:
.16 x $52.05 m = $8,328,000
- The Segments:
Canned dog food market
M.S. = $890 m/3.47 b = 25.6%
Competition: Top 5 control 70% (still relatively up for grabs) Biggest player – Alpo (27%)
there still is a little bit of...
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