First in Show Frozen Dog Food

The Company is planning to launch a frozen dog food into retail shops in the Boston and nearby metropolitan areas. The company’s target is supermarkets and is to position the product such that the owners feel dogs to be part of family or the one who already feel so would be provoked to give them the sales. The company realises that they have immense opportunities and understand that right promotion strategy and distribution network will definitely lead them to success.

The market is distributed amongst varieties of foods like dry, canned and treats and the treats are not considered actual food for the dogs and works as the supplement. Show circuit, an existing product of the company is the costliest product in the market and is available in all supermarkets. Show circuit has been unknown as it is a new product and is placed next to the frozen food of general so as to create pull for dog owners to the frozen foods.

The dog food market being at $10bn, has an immense potential to be unleashed. The expectations of owners to go organic rich in vitamins and minerals for dogs is a plus for show pet. The population being 1.2bn in Boston, has a 1:1 ratio between population of dogs and humans. The supermarkets constitute 36% of total sales for the dog foods constituting 4.32mn potential customers.

The competition is being led by Nestle and P&G constituting to 75% of the market shares and provide wide range of products and is also a cost leader in the market. In supermarkets of Boston, dry, canned and treats constitute 65%, 15% and 20% of shelf space, assigned for dog foods.

Show pet is to pose with multiple problems and opportunities in the project, where they will be at increased rate of risk to bring in a new product in a complete new form, but at the same time will have an opportunity to focus on educate public about the dog food. Another issue would be overcome difficulty in accepting the frozen food by distributor, as it involves freezing and other inventory costs, apart the lack of appeal of the frozen food is a concern too. The threat of high price acceptance can also be forecasted but a huge market to tap which allows diversification of products is a definite risk to go with.

The company is strategizing on promotion techniques through multiple formats and in different ways such that it appeals for the receiver. Owner’s being emotionally hit over TVC and coupon provided in newspapers are major strategic decisions. Apart, sales packet to supermarkets to ensure that they accept the deal is another innovation. The overall media strategy is to educate the public about the dog food and to build a guilt consciousness such that dogs are treated as equal to humans and thus public will not have issues in spending a buck more or two.

Alternatives and Conclusion:

Comparison and analysis between strategies budgeting $5,000,000 and $7,00,000: The breakeven quantity of sales that is needed to go with this budget is 119,428(exhibit – 1). The sales revenue generated by canned food market is just 30% of the total sales of this strategy(exhibit -2). Apart, as we are taking risk of new product in new form and are also eyeing on the long-term diversification of projects, we should opt for this strategy as it directly effects the viewers of television who are dog lovers and the word of mouth thus spread will have more effect.