First in Show Pet Foods
SITUATION ANALYSIS
EXTERNAL ANALYSIS
Opportunities: • The growing popularity of organic food with the sales growing by 64 percent from last year. • The dog food industry can benefit from the absence of a completely frozen dog food market in the Boston metropolitan area. • More than fifty percent of the dog food market is still untapped thus there is an immense potential to grow in this market.
Threats: • There are almost 50 dog food manufacturers with 350 dog food brands in the U.S. However, there are five companies that have approximately 75 percent market share of U.S dog food sales in 2008. • The larger advertising budgets of competitors can be a threat to maintaining market share with a brand with flat sales. • The difficulty of convincing the distributors to provide freezer space due to the limited space in the freezers of supermarkets to keep frozen products. • The fact that frozen food requires a thawing time is another problem for the distributors because it requires a longer process.
INTERNAL ANALYSIS
Strengths: • Show Circuit is a premium high quality dog food which contains fresh meats and cereals with no additives or preservatives. • It will be the first organic dog food that will be marketed in the Boston areas • The unique ingredients of Show Food improve the dogs’ coats remarkably, transforming a normal dog to a healthy and beautiful dog.
Weaknesses: • Show Circuit price is quite high compared to the other dog food products in the market because of the premium quality that the product holds. • Show Circuit is the new product name in the market. It has no previous identity in the retail market. • The difficulties of product distribution and placement because of the frozen package form.
KEY MARKETING ISSUE
The dog food market is an enormous $10 billion market. Positioning within this market will require some careful consideration of the market dynamics. Due
EXTERNAL ANALYSIS
Opportunities: • The growing popularity of organic food with the sales growing by 64 percent from last year. • The dog food industry can benefit from the absence of a completely frozen dog food market in the Boston metropolitan area. • More than fifty percent of the dog food market is still untapped thus there is an immense potential to grow in this market.
Threats: • There are almost 50 dog food manufacturers with 350 dog food brands in the U.S. However, there are five companies that have approximately 75 percent market share of U.S dog food sales in 2008. • The larger advertising budgets of competitors can be a threat to maintaining market share with a brand with flat sales. • The difficulty of convincing the distributors to provide freezer space due to the limited space in the freezers of supermarkets to keep frozen products. • The fact that frozen food requires a thawing time is another problem for the distributors because it requires a longer process.
INTERNAL ANALYSIS
Strengths: • Show Circuit is a premium high quality dog food which contains fresh meats and cereals with no additives or preservatives. • It will be the first organic dog food that will be marketed in the Boston areas • The unique ingredients of Show Food improve the dogs’ coats remarkably, transforming a normal dog to a healthy and beautiful dog.
Weaknesses: • Show Circuit price is quite high compared to the other dog food products in the market because of the premium quality that the product holds. • Show Circuit is the new product name in the market. It has no previous identity in the retail market. • The difficulties of product distribution and placement because of the frozen package form.
KEY MARKETING ISSUE
The dog food market is an enormous $10 billion market. Positioning within this market will require some careful consideration of the market dynamics. Due