Breeder's Own Pet Foods, Inc.
Case overview/situation anaylsis: The Breeder's Mix is a high quality dog food that is made from only the highest quality beef, liver, chicken and fortified cereal. This mix of food is proven to improve the dogs coat as well as its health and well being. Due to its affect on dogs the Breeder's Mix is used on various show dogs and dogs in kennels. The dog market is an already large market and it is only growing. In 2011, sales from manufacturers totaled $14 billion. In terms of the market dog foods are divided into three different groups. Dog food is sold as treats, dry food, and canned food. In addition, the market distribution is divided into many retail sectors. A large amount of dog foods are sold in supermarkets, at Wal-Mart, in pet stores, or in feed stores. There is also a smaller percentage sold through veterinarians and online. Narrowing down the customers, comes down to a very wide range of people. The main target is single and married people between the ages of 21 and 54 with an income of more than $25,000. The campaign of food is targeted in the Boston area due to the high market potential. Dog owners are also seen to have increasing investments in their dogs and this number is only supposed to continue to rise. Along with change in humans, dog owners are also highly valuing the all natural dog food, versus processed. There is a lot of competition in the dog food industry and they heavily compete on price and quality. In total there are 50 manufacturers of food and 350 different brands. A majority of the competition (75%) comes from just five companies. Also, just 9% of dog food has a private label when sold in supermarkets. Dog food manufacturers spend 2% of revenue on advertising and roughly $210 million is spent on advertising in the industry per year. These 5 main brands have tons of brand awareness in