Zenith Food Inc Casestudy
G11
Zenith Pet Foods, Inc
Zenith Pet Foods is a major distributor of dog food for show-dog kennels in the US. They are a unique distributor in the way that their food is primarily for show dogs known as Show Circuit. The food helps improve the quality of the dog’s coats and the Show Circuit products are federally inspected which forces Zenith Pet Foods to meet specific requirements and regulations. Fresh meat constitutes 85% of Show Circuit’s product volume and cereal accounts for the remaining 15%.
Market Potential
Despite expected sales being $7 billion this year, less than half the dogs in the US are regularly fed prepared dog food which means this industry is far from hitting its highest potential. This is good news for a company like Zenith Pet Foods, which only really sells to dogs competing in dog shows. There is a lot of market potential and also there are critical decisions to be made for this company at the same time. There have been four trends indicated about dog owners in the US that contribute to the optimism around market potential in the dog food industry. These include an increase in the household dog population in the US due to ownership and protection, an increase in convenience foods in households which limit dogs’ intake on foods, an amount of $20 billion spent collectively by Americans every year on their dogs, and an increase in premium dog food trends. Higher quality dog foods have soared in prices and sales along with the increase in dog ownership which is attractive news for Zenith Pet Foods.
Supermarket distribution consists of the largest retail channel for dog food. They dispense 36% of all dog food sold in the US while the other 64% of dog food is sold by mass merchandisers such as Walmart, Petco, Petsmart, and Veterinarians. The goal of Zenith Pet Foods is to promote their high quality product that is sold at dog shows and to eventually sell large quantities to supermarkets. Show Circuit is one of the costliest dog food
Zenith Pet Foods, Inc
Zenith Pet Foods is a major distributor of dog food for show-dog kennels in the US. They are a unique distributor in the way that their food is primarily for show dogs known as Show Circuit. The food helps improve the quality of the dog’s coats and the Show Circuit products are federally inspected which forces Zenith Pet Foods to meet specific requirements and regulations. Fresh meat constitutes 85% of Show Circuit’s product volume and cereal accounts for the remaining 15%.
Market Potential
Despite expected sales being $7 billion this year, less than half the dogs in the US are regularly fed prepared dog food which means this industry is far from hitting its highest potential. This is good news for a company like Zenith Pet Foods, which only really sells to dogs competing in dog shows. There is a lot of market potential and also there are critical decisions to be made for this company at the same time. There have been four trends indicated about dog owners in the US that contribute to the optimism around market potential in the dog food industry. These include an increase in the household dog population in the US due to ownership and protection, an increase in convenience foods in households which limit dogs’ intake on foods, an amount of $20 billion spent collectively by Americans every year on their dogs, and an increase in premium dog food trends. Higher quality dog foods have soared in prices and sales along with the increase in dog ownership which is attractive news for Zenith Pet Foods.
Supermarket distribution consists of the largest retail channel for dog food. They dispense 36% of all dog food sold in the US while the other 64% of dog food is sold by mass merchandisers such as Walmart, Petco, Petsmart, and Veterinarians. The goal of Zenith Pet Foods is to promote their high quality product that is sold at dog shows and to eventually sell large quantities to supermarkets. Show Circuit is one of the costliest dog food