Zenith Pet Foods, Inc.
In reviewing the Zenith Pet Foods case, there are several facts that need to be assessed before offering a definitive answer on whether their potential program for marketing Show Circuit dog food will be successful. Zenith Pet Foods, Inc. is a major distributor of dog food for show kennels throughout the United States. The product that Zenith is offering is called Show Circuit, which is a highly nutritious and quality ingredient dog food. The product of Show Circuit, frozen pet food designed to enhance the appearance of the dog's coat as well as providing a balanced meal, is planned to be placed in the frozen foods section of a supermarket. This is what Zenith is counting on to build a competitive advantage. The fact that Show Circuit will be directly located next to the "people food" gives it another edge on the other foods available to dogs on the market right now.
In terms of the market and other competitive features, Show Circuit and Zenith have their work cut out for them. There is great potential to grow in this field, most pet owners want what is good for their pets, and this includes pet food that is healthy for their dog. The ability to capitalize on growth is strong, with 64% sales growth last year, while only .9% of total sales exist in the current market, Boston. There are about 50 dog food manufacturers and 350 dog food brands. Purina, Iams, Hill's Pet Nutrition, MasterFoods USA, and Del Monte Foods, Inc account for 75% of U.S. dog food sales in 2004. These are established pet food suppliers and already hold a majority of the market share available. Zenith is counting on the fact that their quality reputation in the show dog circuit and focusing on the benefits of buying dog food from the frozen food section will be able to differentiate the product in the minds of the consumer. It is clearly separated from other competitive products, so there is the capability of Zenith capitalizing on an untapped niche....
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