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First in Show Pet Foods, Inc. Is a major producer of dog food for show-dog kennels in the U.S, and the company is now a supplier of a high quality dog food for show dogs called Show Circuit. First in Show executives are now seeking entry into the retail branded dog food market in Boston, Massachusetts with the help of Marketing Momentum Unlimited. First in Show recognized that due to the high quality of their product, which contains federally inspected beef by-products, the market development strategy would introduce Show Circuit in frozen packaging; which is a modification from its current form. The fee for the modified 15-ounce plastic tub of frozen dog food in a case of 12 was set at $7.87 per case. Marketing Momentum Unlimited presented their recommended plan to the First in Show executives, which left many during the presentation to ask “Will this program establish a foothold in the market for Show Circuit”? The cost of the proposed plan will be around $500,000 to $700,000, not including slotting fees. All involved recognize that Show Circuit is among the highest quality, and costliest dog foods to prepare. These facts, and because Show Circuit is a new product, assisted in determining the target market, and the marketing mix; which includes the product, communication, channel, and price strategy. Show Circuit is entering the market during a period where only half of the dogs in the U.S. are fed prepared dog food, and dog sales are expected to rise as humans seek companionship while treating the animal as they would a family member; that means spending money on quality products. The market development strategy for distribution purposes focuses on the single largest retailer channel for dog food, and that is supermarkets which represents 36% of total dog food sales. The offering of the three major supermarket competitors focuses solely on dry, canned, and treats with all offered in one section.
Running head: Week 2. and a large amount of the budget being used on television advertisements which will be used to create awareness of the brand. however the product modification and the target market identified have the potential for greater distribution. The target market is 21 -54 year olds with an annual income of $25. Research shows that this target market is the most likely to consistently buy Show Circuit. Problem Identification The recap of the case shows that First in Show will have many obstacles to overcome if the executives hope to be successful. Merchandisers such as Wal-Mart . it’s hard to say how the other companies will react to a frozen dog food offering. and motivation through emotional impact of television ads. The scope of the target market may end up using a great deal of the program’s budget where it is not needed. First in Show Case Study 2 The above information shows that the marketing campaign needs to overcome objections to frozen food.000.000. A number of factors affecting the success of introducing Show Circuit to a new target market are that this is a new product that will be sold in frozen form along with dog food. The following section will focus on the main problem facing First in Show’s foray in the dog food business with Show Circuit. a problem identified here is that whether the market segment identified is too large in scope or should it be reduced to a niche market as the price of the product may suggest. and the fact that Show Circuit will be sold in the freezer section along with human food. The target market selected will be single and married people between the ages of 21 and 54 with an income greater than $25. pricing. The customer value proposition is a product that is of the highest quality as the target market seeks to fulfil their desire to treat their dog as they would a human. The channel strategy identified is for Show Circuit to be distributed through supermarkets which comprises ups to 36% of all dog food sales. The media strategy will focus on newspaper/magazines. motivate trial through coupons. As Show Circuit is a product with no direct competition.
however the distribution of the product is limited to supermarkets and missing out on 51% of the market identified above. If First in Show moves forward with the current plan. and this market has the potential to be repeat customers for First in Show as many of the customers that frequent these stores have the qualities that the executives are seeking. so why is it that the channel strategy is ignoring key markets such as pet superstores which comprise of another 20% of the dog food market. The problem with the current channel strategy is that First in Show is going to miss out on a large number of consumers identified. The segment identified is very large. and certainly fit the market segment identified as more and more consumers are choosing Wal-Mart as their all in one shopping experience.Running head: Week 2. and this becomes more evident considering the segment identified will treat their dog as part of the family. and the communication strategy remains intact. The channel’s for distribution not being utilized comprise 51% of total market share. The high quality of the product suggests a target market that could be reduced to a niche market. The television ads do not clearly identify where Show Circuit would be located in the supermarket along with the fact that it’s a frozen dog food in a 15-ounce plastic tube. Further problem identification is in regards to the communication strategy. thus wasting money and focus on a communication strategy. and veterinarians 6%. however even reducing the target market with the current channel strategy in place poses problems as over half the market is being ignored. First in Show Case Study 3 comprise 25% of the market share. than the outcome may lead to dwindling sales as the target market is more likely to skip over the commercials during the . The television ads placement potentially wastes a large portion of the budget as the target market identified is unlikely to watch The Late Show with David Letterman on a consistent basis or at all. The problems identified potentially lead to First in Show’s foray into the dog food business becoming a failure.
and are likely to be concerned when they venture into the frozen food section. The communication strategy presents further problems as the identified target market is likely to miss the advertisements due to a poor strategy to focus on newspapers/magazines. Even if quarter of the target market were to see that ad placements. and late night TV that will not reach the needed consumers. they have chosen to market the product to a wide target market. and very has little to no brand awareness outside of show-dog kennels. As the . and see dog food beside their hash browns. The defined problems poses risks that will leave First in Show to possibly abandon the retail market place as the public will not be aware of the brand or what it looks like. The channel strategy leaves the competition with an excellent opportunity of increasing their marketing and advertising budgets during the introduction phase of Show Circuit. The segment identified occupies only 36% of the dog food market leaving 51% of the market to the other five main dog food companies. or listen to them on the radio during their commute to and from work.Running head: Week 2. Evaluation of Alternatives Show Circuit clearly has the potential to become a leader in the high quality dog food retail market. The following sections will highlight the two alternative solutions for First in Show to consider. Defining the Problem First in Show Pet Foods is entering a market segment with a new product which will be frozen and offered in the human food section of the supermarket. thus decreasing the chances of Show Circuits survival. As the high quality and price indicate that First in Show could market this product to a niche segment. they still wouldn’t know where to buy Show Circuit. First in Show Case Study 4 selected program. and is actually more likely to see advertisements on the internet. than see them during The Late Show with David Letterman. as the dog food is not identified as being sold in the freezer section with along with human food.
Wal-Mart is great for unique and innovative products such as Show Circuit. as well there are no buying committees that can put pressure on Show Circuit to perform better.Running head: Week 2. they will then work the product in to the next modular. Brad. and will also place the product upon First in Show’s recommendations.5 billion in sales at its 37 locations. they will be unable to drive the price of the product down. (2008). (2008). Brad. Brad. If Wal-Mart likes the product pitch. it makes good business sense that First in Show evaluate entrance into a channel that includes 25% of the overall dog food market. (2008). thus guaranteeing a spot at the table Flatoff. One of the great aspects to this channel strategy is that Wal-Mart attempts to work with its suppliers as they understand the need for innovative products to not be stifled by distributors that are difficult. One of the biggest benefits for First in Show is that Wal-Mart doesn’t charge a slotting fee. First in Show Case Study 5 target market selected is likely to shop at Wal-Mart as well. As this is a new product. and Wal-Mart doesn’t have a similar product to benchmark against. . and offers many reasons why First in Show should use this distribution channel. and Wal-Mart also guarantees a quick entrance as they conduct product placement resets twice per year. thus enabling First in Show to maintain their higher price. this is a channel that could provide excellent product placement against competitors while keeping the initial market development strategy costs low and as Wal-Mart is currently the sixth largest grocery chain in New England with $1. First in Show should not be fooled by the demographics being more downscale as Wal-Mart has the potential to bring in more upscale consumers on a daily basis than most supermarkets combined Flatoff. As WalMart seeks to double its supermarket business across Massachusetts in the near future. and higher margins as the actual process of meeting with Wal-Mart for product placement only requires 30 minutes including the pitch for Show Circuit Flatoff. The benefits to gaining entrance to the Wal-Mart distribution channel will now be identified.
The initial cost for a simple multi-media micro-site which will become the centre of an online community will be $50. First in Show may also feel that a social media marketing campaign with possible extra costs may balloon into a bigger budget than initially anticipated. First in Show Case Study 6 The other area selected for further evaluation is the introduction communication strategy. and a highly-targeted advertising campaign will be $50. Many marketing experts see value in spending money on social media marketing. however this is far from the truth as discussed above.000.000 with $100. (2011).000. but the downfall could be that it’s hard to pinpoint a . Twitter. First in Show may feel that utilizing this channel for distribution along with the supermarkets currently targeted may be too big for the initial product rollout.000 for a social media marketing campaign. The total incremental program budget cost for the first month would be $600. leaving $170. One the key area that First in Show is missing is the internet. Also.Running head: Week 2. as most North Americans are now using the internet as much as they watch TV. and other internet tools that will drive traffic to Show Circuit.000 to manoeuvre around with What’s Next. A negative for First in Show is that they may see Wal-Mart’s market segment as a market that won’t purchase a high quality dog food.000 per month What’s Next. First in Show could better utilize the program budget targeting TV. The benefits of this social marketing campaign is it will focus on key areas such as Facebook. and the internet.000. As the television campaign is placing a large portion of the budget on The Late Show with David Letterman. Social media is likely to hit a large portion of the target market. as the competition currently holds 100% of the market at Wal-Mart. The target market selected. (2011). the least First in Show could spend on TV is $359. As the upper limit of the budget is $700. along with the distribution strategy and product placement almost make an internet marketing campaign a necessity.
In hiring a social marketing company with an introductory fee of $50. As the target market is 21 -54 year olds with an annual income of $25. thus increasing Wal-Mart’s market share. The potential windfall is a slice of the $1. and an annual fee of $600. there just aren’t enough Letterman fans as their used to be. and the next couple years will see an influx of Wal-Mart supercenters that will bring in more customers due to lower prices.000 for incremental costs. Utilizing Wal-Mart for distribution makes sense from an introductory standpoint. high reward option.000 for a highly-targeted . and a business standpoint.000. whereas potential slotting fee costs for other supermarkets is $30. This new low-risk. and their no slotting fee for new products warrants consideration.5 billion in sales at Wal-Marts 37 stores across the state. First in Show Case Study 7 target market on the internet.Running head: Week 2. The following section will discuss the recommendation of this paper. Wal-Mart is the commands 25% of the market along with stats that advise it is the sixth largest grocery chain in New England make this channel a necessity for Show Circuit.000. The aspect to including Wal-Mart for distribution is that it will be considered a low-risk. The current communication strategy is unlikely to bring in the target market the way First in Show is hoping. This will result in competition losing share and potentially going out of business. high reward distribution option coupled together with a cost effective social media marketing campaign has the potential to elevate Show Circuit during its introductory phase as the potential for increased customers is an added benefit to an added channel for distribution along with an more effective communication strategy. Recommendation The recommendation for First in Show will be to utilize both alternatives into the marketing mix. it’s makes perfect sense that Wal-Mart. and potentially bringing more customers in to purchase Show Circuit on a regular basis.
low-risk compared to the competition. The market development strategy is start local. In creating a dedicated Facebook page and other tools that will . As identified throughout this paper. By including Wal-Mart in to the mix. First in Show will have access to different markets. Again. Social media marketing has the potential to reach up to 20. Conclusion The real benefit to the alternatives selected is the inclusion of Wal-Mart in the channel strategy. and focusing the remaining budget on a social media campaign. which can average $7 . First in Show will now have access to 47% of the total dog food market while staying in line with their initial program budget.000 per month is still certainly less than the annual fees of First in Shows competition.000 people in a five to ten year period through just a Facebook page.$8 million annually. with a high reward by hitting the market segment identified at the start of the paper. and customers with different buying patterns that may react positively to frozen dog food in the human freezer section. the key is to ensure that customers are not confused as to where to buy it. By spending the bottom limit of the program budget. expand nationwide. As Show Circuit is a new product to the market.Running head: Week 2. The market segment identified by First in Foods will increase due to the size of WalMart in the Boston area. as they are likely to be confused in the beginning due to the modified form being a frozen food. and including Wal-Mart into the channel strategy. The following section will now conclude this paper. there was a lack of an internet presence in the communication strategy. and based on that success. First in Show will gain exposure outside the normal medium of TV. and the low risk to having Wal-Mart carry Show Circuit will assist in the positioning of the product in the short and long term against its competition. First in Show Case Study 8 advertising campaign which works out to be $50.
while working with a small budget that can easily be matched by the closest competitor. First in Show Case Study 9 automatically take users to Show Circuit information. The key here is to create brand awareness of Show Circuit as it’s a new product. First in Show will have a better chance of succeeding in the wide ranging demographic they have selected. thus better solidifying their introduction campaign. . The show-dog kennel customers must also do their part in helping Show Circuit become the leading frozen dog food it can be.Running head: Week 2. and by including the alternative ideas discussed in this paper. First in Show will be able to offer printable coupons directly on the internet.
beef. to Boston supermarket Newspaper s along with s will see modificatio coupons n to available enhance for value to its customers. with advertising covering many areas that each Small initial age bracket rollout of may see product as Show distributing Circuit ads. By focusing on customers with at least $25. and present and future customers who treat animals like family. and chicken. a nearby kennel owner began using for their own dogs. Advertisin g R/D Develope d by a rancher after several years of research. dry. Marketing Mix Market developmen t strategy being utilized as awareness of product exists with show-dog kennels. food should along with be 30-seconds perceived spots as being focusing on fresher than owner’s canned. Target market aimed at is between 21 – 54 years of age. Show Circuit contains federally inspected beef byproducts. Segmentatio n Superstores ensures that the company is attracting customers that are likely to purchase on a regular basis. 10 Offerings First in Show Pet Foods. Once product perfected. Inc have gained experience with being a major producer with Show Circuit for show-dog kennels.Running head: Week 2. dog treats. TV will see a bulk of Modificatio the TV n to frozen budget. lover for and some pets. No additives or preservative s found in Show Circuit. target Late night market. high-quality product with 85% fresh meat. First in Show Case Study Duncan SWOT Analysis Internal Strengths and Weaknesses SWOT Internal Strengths Manageme nt Executives at First in Show Pet Foods. liver. Market and product. . Inc is offering a unique. and the remaining 15% comprised of highest quality fortified cereal.000 income. the company is ensuring that these customers feel like a select few when purchasing Show Circuit. as opposed to customers who purchase a product one time.
which comprises 26% of the market share. it seems as though no new research is being conducted into new products that may open the door to increased sales to the identified target market. and Veterinaria ns.000 per year are also likely to shop at WalMart as WalMart’s are now considered more than adequate for grocery shopping needs. Currently. Show Circuit brand awareness doesn’t exist outside of show-dog kennels. Show Circuit will miss out on these consumers due to limited or no freezer space at these stores. . A budget of $500. especially when they are paying premium price. A sizeable portion of show-dog customers are likely to visit Pet Superstores. The advertising campaign is going to miss out on a large portion of the target market due to the bulk of the budget being placed on The David Letterman Show.000 to $700.Running head: Week 2. and located in the frozen food section along with human food. Limited product offering that is virtually unknown to the public that will be offered outside of the normal pet food area. as target market bringing home $25. First in Show Case Study Internal Weakness es Executives have limited experience selling premium dog food outside of show-dog kennels. runs the risk of failing due to market segmentation . This could create further problems if competitio n decides to increase budget to ward of new product competitio n.000 is very small compared to the competitio ns. The company needs to have r&d working on the next big thing as people become bored limited products. 11 Show Circuit is among the costliest dog foods being offered at Boston supermarket s. Initial distribution of Show Circuit only represents 36% of the market share. Consumers may be turned off from Show Circuit as it’s being offered beside their own food. First in Show Pet Foods Inc.
with only purchasing s clearly Manufacturer three of high quality focused on s price. dogs are major role since 2006 fed prepared inside of – 07. has relied consumers Increased dog on dry. consumers seeking healthy diets for their dogs may find the information that Show Circuits ingredients are federally inspected may be the encouragem ent they need to make the switch from a competitor. are owners major to consume. . Inc. canned. and control 75% purchasing of This start to of dog food high quality presents an think about market. competitors has been specialty Only half of having a increasing dog treats.S ts. and when Show Circuit is available for mass market across countries in North America. and is Current dog food. expected to of frozen dog food climb as the dog food is market is still The untapped relatively unrealized. expansion of products may be possible if untapped market. become products are more all located in Proven willing to the pet aisle. U. future Food. and purchase companies and increased dog treats. canned. growth in spend thus leaving sales of high money are the frozen quality dog their food section food from extended all to First in 2006-07 to family.S. as one of the frozen dog consumers their family. along with the current market helps this become realized. First in Show Case Study Industry Market Share Dog food Only five The trend 100% of dog External market worth major for food sales in Opportuniti $10 Billion in competitors consumers supermarket es 2009 at . competition market of 0%. and supermarke currently market share 50% of U. these dog food dry. food. supermarket are expected company s. Show Pet 2007-08. begins to Five ownership. with products are excellent what kind only three expected to opportunity of products major go hand in to excel as they want players in hand as these the only their animal U.Running head: Week 2.S. SWOT Economic Competitio n Consumer Trends 12 Regulatory Requiremen ts NAFTA will make it easier if. and of to treat dogs offering As those three. As dog food does is not regulated under the same restrictions as people food. dogs.
Running head: Week 2. First in Show Case Study 13 .
First in Show Case Study 14 External Threats Even though the market has seen an increase in dog ownership. and increase advertising along with coupon offerings on their already existing products. Consumers are trending toward more media usage through the internet. Five well established companies own 75% of market share. Companies controlling the dog food market are able to gauge new products. the economy is still yet to fully recover from the recent economic downturn. a sizeable portion of the budget being directed at the illadvised David Letterman show. has the potential to sink First in Show Pet Foods. Current competitors can manipulate current consumers by clever marketing or packaging that may include clever catch phrases that seem to be in line with what Show Circuit is offering. . Many consumers shop are trending toward Wal-Mart. and three are standard within supermarket s pet food aisles.Running head: Week 2. Competitio n could offer sales of existing products during Show Circuits initial market entry in order to undercut the competition . thus leaving very little room for error when advertising Show Circuit. This fact coupled with a lack of brand awareness. and pet superstores that comprise another 45% of the total pet food sales due to one product that is only available in frozen form. and more are lost due to more restructuring than a new product with a very high cost would likely be the first item crossed off their grocery list. and high quality pet food. Failure to utilize distribution channel of Wal-Mart. If white collar jobs are not replenished. thus undercutting the market potential due to a lack of legal requirements .
First in Show Case Study 15 References: Abelson. 2009. Grocery business.Running head: Week 2. Retrieved on March 11 2011 from: . Wal-Mart drives for more Mass. Jenn.
html What’s Next.Running head: Week 2.allbusiness. How Much Does a Social Marketing Campaign Cost? Retrieved on March 10 2011 from: http://www. Brad.com/2007/10/ok_times_up_while_youre/ . 2008. First in Show Case Study 16 http://www. 2011.com/business/articles/2009/02/10/wal_mart_drives_for_more_mass_grocery_ business/ Flatoff.com/company-activities-management/product-management/115647441.boston.whatsnextblog. Why Wal-Mart is great for innovation. Retrieved on March 11 2011 from http://www.
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