First in Show Pet Foods Inc

Topics: Marketing, Nestlé Purina PetCare, Food industry Pages: 3 (674 words) Published: November 2, 2010

1.How would you describe the household dog food market?
a.Dog food sales in US;
i.Sales of dog food will total about $10 billion in 2009
b.Percentage of households that buy prepared dog food;
i.Less than half of the 65 million U.S dog owners
c.Dog food distribution channels; sales per distribution channel i.Supermarkets dispense 36% which represents $3.6 billion
ii.The other 64% go to mass merchandisers
1.Wal-mart 25%
2.Petco/Petsmart 20%
3.Farm/feed stores 7%
4.Veterinarians 6%
5.Internet and independent pet stores 6%
d.Number of manufacturers and brands; top sellers market share; major brands; i.There are about 50 manufacturers and 350 different brands ii.The top 5 companies account for 75% of the sales: They are 1.Nestle Purina PetCare

3.Hill’s pet nutrition
4.MasterFoods USA
5.Del Monte Foods
e.Categories of dog food in the household dog food industry; i.3 categories Dry, Canned, and Treats
f.Price range for each category
i.Dry goes from $8-$12
ii.Canned goes for .50-$1.50
iii.Treats go from $3-$6
g.Advertising spending per brand/manufacturer
i.Most major established brands are spending between $7-$8 million annually ii.Beneful spent $34 million to introduce its new premium dry food which was a huge success iii.Alpo spent $10 million on a brand extension Alpo Lite

2. How might one segment the dog food household market and where does Show Circuit fit? a.list all segments you might consider segmenting this market a.At householdes of both single and married people between the ages of 21-54 with a household income exceeding $25,000 i.These people look at their dogs as a part of the family and are willing to spend more on products for the pet b. examine major dog food categories and how Show Circuit “fits” a.In all 3 major categories of dog food the premium brands hold upwards of at least 70% of the sales in each market. Now more...
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