First in Show Pet Food Inc.

First in Show Pet Foods Strategic Issues & Problems: First in Show Pet Foods, Inc. is a popular, well known producer of dog food for show-dog kennels in the United States (Kerin & Peterson, 2010). This is an understood and established A tier market segment product in the ever popular consumable product segment.

The strategic issue on the table for First in Show Pet Foods is marketing a new, premium dog food option called Show Circuit.Show Circuit will be packaged in 15-ounce plastic tubes, with 12 tubs per case (Kerin & Peterson, 2010). This brings up the very viable option during the introduction to the marketplace, offering distribution discounts on bulk buying through case quantity discounts. This allows for high turnover of the product and more people to be on the shelves and in warehouses throughout the United States pet food marketplace, specifically Boston for this promotional, trial release on Show Circuit.First in Show Pet Foods is using only the finest ingredients with no artificial flavors with fresh meat constituting 85% of the products volume, a leader in this volumes per 15-ounce plastic tub, and the remaining 15% is high quality cereal (Kerin & Peterson, 2010). The largest strategic issue, which could also be a problem, that differentiates Show Circuit from its competition is that it is stored in freezers to prevent spoilage and keep it as fresh as it can be.

This makes it comparable to people food and the high quality consumers appreciated and want in today’s marketplace. This freezer storage is untraditional to any of the dog foods on the market today. Most large grocery chains or specific pet supply sources have the proper freezer storage for this product. This allows the brand Show Circuit to capitalize on that space in this specific retail sector, focusing on the key groups of consumers that are purchasing frozen food. One of the biggest issues I see facing the brand Show Circuit of First in Show Pet Foods, Inc. s marketing one of the highest priced product to a new target audience, the common animal lover and owner.

Show Circuit is a very high quality product but does not have national brand recognition. It is an A tier product, with no B or C tier product to compliment it in price, quality, and brand history. Therefore, the cost to promote your product and shelf space in popular consumer retail chains becomes more costly. Insights for First in Show Pet Foods: Situational analysis of this case can be stated in a few concerning and appropriate bullet points.

Taking these factors into consideration when deciding to launch Show Curcuit into the retail distribution channel in a must: * New Product – more costly, higher quality position in the marketplace. * New Target Market – more than just show dogs & that consumer segment. Show Pet Foods wants to be a premium option for every type of pet owner. * First in Show pet food will be placed in the freezer sections of stores. This will differentiate it from the traditional dry, canned, and teat aisle or section.

* Total variable cost for the product will be $7. 7 per case sold and distributed in 15-ounce plastic tub, with 12 tubs per case (Kerin & Peterson, 2010). * National brands of dog foods – including Nestle’s brands, Masterfood, Iams, and Del Monte make up over 80% of the major dog food categories – Dry (32% Private Label/Other Brands), Canned (12% Private Label/Other Brands), and Treats (27% in Private Label/Other Brands) (Kerin & Peterson, 2010). * Sales of dog food will total about $10 million in 2009 at manufacturer’s prices.

Distribution channels will be changing in the future – more internet buying for sales, no taxes, and shipping convenience.Internet is currently on 6% of the distribution channel business compared to 36% in supermarkets and 25% in mass merchants * Largest promotional expenditures will be spent on TV. What shows & when is your target audience watching TV. * What is the happy medium between price sensitivity with pet food (Show Circuit is priced as a premium product) and concern with the welfare of your animal, which is most case is categorized as part of the family.

* Most major brands are spending $7-8 million annually for ongoing nationwie media promotion.Trade promotion expenditures for Show Curcuit are being marketed from $500,000 or $700,000 budget level options * Show Curcuit must target the audience that will be willing t spend more on a higher quality product, appreciate their animal, and look at more than just pricing when purchasing a product. There are a couple factors and considerations that may affect the outcome of the success of the Show Circuit dog food brand. Most importantly, this includes the viability and legitimacy of the sample target market in the Boston geography target supermarkets and distribution. The marketing campaign will be based on coupon discounts, sampling, newspaper marketing, strong product placement in supermarkets to focus on product identification. * Show Circuit will be priced as the premium, leading cost dog food brand and build up their customer base from the top down, instead of the bottom up.

* Show Circuit lacks brand recognition in the everyday, pet owner marketplace and therefore will be competing with national brands, graphed above, with many differently priced brands of pet food, and therefore competing for supermarket shelf space. The frozen market is a new challenge for pet food producers. It has a high rate of failure, 8%, while 15% of all new pet food products are introduced in the high demand frozen food section. Is there enough marketability to be successful next to human food? * I think First in Show Pet Foods, Inc. needs to allocate $700,000 as their budget levels when introducing a marque, brand new product to a new market segment, while allocating at least $30,000 to slotting fees in popular retail chain’s frozen food aisles.

Plan of Action:I believe the media plan of focusing on television as the main source for marketing and distributing First in Show through mass merchandisers is the best plan of action. This is obviously not the only distribution channel to consider, but the initial promotional, new product launch should focus on these leader market channels. The niche market First in Show Pet Foods, Inc. is trying to find is the upper middle & high class pet owning population, where the consumer believes that their pet is an extension of their family and only deserves the best.

A pet owner that cannot live without their pet when leaving it, and nurtures it as if it was a human being is Show Circuits target market. This niche market has the available cash floor to afford a pet, keep it in food health, and make sure they do their best to keep their pet happy, beautiful, and energetic. In their $700,000 budget I agree with, First in Show Pet Foods, Inc. is using most of their budget on television advertisement, approximately $529,000. I see how marketable television is, but I do not think many pet owners watch a lot of television.

You almost have to conduct a marketing campaign to what channels, times, and programs pet owners focus on. For example, I would focus on the discovery channel. Every morning on the weekends, they have a 2 hour program focusing on pet breads, how to raise them, and what geographies/settings they flourish in. This would be an ideal spot to focus on a massive Show Circuit promotion. Show Circuit should use some of the allocated television budget for one on one promotion in stores, free sampling, and more magazine/newspaper/online couponing to build up interest and intrigue in this new brand of premium pet food.Recommended Strategy: I believe the target market for Show Circuit is ripe for the picking.

I believe this premium dog food will appeal to a niche market group of dog owners who believe their pet is an extension of the family. My main concern is the lack of brand recognition. Consumers buy off brand recognition for quality, affordability, and reliability. For example, I only buy the three S’s – Samsung, Sony, and Sharp for high definition television’s because of the strong brand recognition and reliability of the product.

I think First in Show Pets, Inc. s taking off a little bit more than they can chew with this premium priced pet food launch and therefore should focus on local pet stores and integrated online retailers. To be successful, Show Circuit has to rely on strong consumer feedback, word of mouth, and the professionals and sale associates in the pet industry. These specialists in the field can promote Show Circuit at the local level and give you more feedback regarding the consumer’s opinion on the brand.

You can then take this feedback, adjust your national distribution and marketing strategy, and have a better sample source to build from.This can lower the percentage of failure with a misunderstood and misguided national launch through wholesale companies, like Wal-Mart, and supermarkets, like Roundies. With the strong focus on veterinarians and pet stores, Show Circuit can incorporate promotional sales teams to travel the sample geography, coupon, and gain invaluable feedback from pet lovers and owners. For example, when a veterinarian gives out a sample or promotes a certain product, a consumer does not give it a second thought and purchases it.Same with promotional sales teams at pet stores. Most likely a pet owner brings their pet to the store with them, and like a person in a supermarket on a Saturday, will try free samples at a food stand.

Especially when the dog is wagging and running up to the booth thanks to the smell. This is a great promotional aspect and one-on-one marketing and selling to your niche audience, either confirming or causing you to reevaluate your Show Circuit product assessment. Once you establish this data in the pet food marketplace, First in Show Pet Food, Inc. an focus on a national release of the brand Show Circuit, specifically in the supermarket and mass merchandiser market.

This distribution channel will allow current won customers and new customers to purchase the brand new, premium dog food product Show Circuit with full integration and convenience. References: Kerin, R. A. , & Peterson, R.

A. (2010). Strategic marketing problems cases & comments. (12th ed. ).

Upper Saddle River, NJ. : Pearson Education. (Kerin & Peterson, 2010)