First in Show Pet Food Case Analysis
First in Show Pet Foods Case Analysis
Central Strategic Issue First in Show Pet Foods, Inc is in the process of launching a new dog food product to supermarkets called Show Circuit. Show Circuit is currently the number one dog food for show dog kennels. First in Show Pet Foods is trying to get the product as mainstream as possible. They want people to recognize the product immediately by seeing its logo and they want to make sure that consumers are aware that the pet food is sold in the freezer section of their grocery store. First in Show is considering how to launch their product to the average dog owner in the greater Boston area at their local grocery store. Top claims for new dog food product introductions for the period of 2006-2007 and 2007-2008 show an increase in dog food with no additives/no preservatives, more vitamins/minerals, and all natural dog food. This increase shows that the high quality dog food, like Show Circuit, will grow in popularity among dog owners. First in Show chose supermarkets to dispense their food was because it is the single largest retail channel for dog food. Supermarkets dispense 36 percent of all dog food sold in the United States. The greater Boston area was a good market choice because it has 1.2 percent of the U.S. dog and human population. Also, the Boston area spends the same amount on pet products as the national average. Show Circuit will be the only dog food in the Boston area supermarkets that need to be refrigerated.
Alternatives Alternative 1 - The first alternative is to spend $500,000 on an ad campaign. This alternative will also add in the $50,000 for slotting fees for the supermarkets. This gives us a total fixed costs of $550,000. This alternative will use the higher $50,000 slotting fee as opposed to the $30,000 slotting fee because we are assuming that the additional $20,000 will help convince the supermarkets to give our product premier space in their freezer section. We are also
Central Strategic Issue First in Show Pet Foods, Inc is in the process of launching a new dog food product to supermarkets called Show Circuit. Show Circuit is currently the number one dog food for show dog kennels. First in Show Pet Foods is trying to get the product as mainstream as possible. They want people to recognize the product immediately by seeing its logo and they want to make sure that consumers are aware that the pet food is sold in the freezer section of their grocery store. First in Show is considering how to launch their product to the average dog owner in the greater Boston area at their local grocery store. Top claims for new dog food product introductions for the period of 2006-2007 and 2007-2008 show an increase in dog food with no additives/no preservatives, more vitamins/minerals, and all natural dog food. This increase shows that the high quality dog food, like Show Circuit, will grow in popularity among dog owners. First in Show chose supermarkets to dispense their food was because it is the single largest retail channel for dog food. Supermarkets dispense 36 percent of all dog food sold in the United States. The greater Boston area was a good market choice because it has 1.2 percent of the U.S. dog and human population. Also, the Boston area spends the same amount on pet products as the national average. Show Circuit will be the only dog food in the Boston area supermarkets that need to be refrigerated.
Alternatives Alternative 1 - The first alternative is to spend $500,000 on an ad campaign. This alternative will also add in the $50,000 for slotting fees for the supermarkets. This gives us a total fixed costs of $550,000. This alternative will use the higher $50,000 slotting fee as opposed to the $30,000 slotting fee because we are assuming that the additional $20,000 will help convince the supermarkets to give our product premier space in their freezer section. We are also